Taisei : 3Q FY2022 Consolidated Financial Results

Disclaimer: This financial information, a digest of Taisei Corporation's "Consolidated Financial Results for the Nine Months Ended December 31, 2022" ("Kessan Tanshin") disclosed at the Tokyo Stock Exchange on February 8, 2023 was translated into English and presented solely for the convenience of non-Japanese speaking users. If there is any discrepancy between Japanese "Kessan Tanshin" and this document, Japanese "Kessan Tanshin" will prevail.

February 8, 2023

Consolidated Financial Results for the Nine Months Ended December 31, 2022

[Japanese GAAP]

Listed company name:	Taisei Corporation
Stock exchange listings:	Tokyo Stock Exchange, Prime Market
	Nagoya Stock Exchange, Premier Market
Stock code:	1801
Location of headquarters:	Tokyo, Japan
Website:	https://www.taisei.co.jp/
Representative:	Yoshiro Aikawa, President and Chief Executive Officer
Contact:	Yuichi Nakano, General Manager of Accounting Department
TEL:	81-3-3348-1111 (from overseas)
Scheduled date for submission
of quarterly report:	February 9, 2023
Scheduled date for dividend payment:	―
Supplementary materials for
quarterly financial summaries:	Yes
Quarterly financial results briefing:	Yes (for analysts and institutional investors)

1. Consolidated financial results for the Nine Months ended December 31, 2022

	(From April 1, 2022 to December 31, 2022)
(1) Operating results (cumulative total)												(Millions of yen, rounded down)
									(Percentages indicate changes from the same period in the previous fiscal year.)
				Net sales				Operating income	Ordinary income	Net income attributable
							to owners of parent
							%					%					%				%
	FY2022(Third quarter-end)			1,104,584			9.8				41,907		(19.1)			48,984		(16.3)		32,889			(18.9)
	As of December 31, 2022
	FY2021(Third quarter-end)	1,005,967		3.2			51,810	(37.0)		58,555	(32.6)	40,542	(29.1)
	As of December 31, 2021
(Note) Comprehensive income:	FY2022(Third quarter-end)	28,884 million yen	28.7%
				FY2021(Third quarter-end)	22,442 million yen		△67.7%
				Net income per share		Diluted net income per share

FY2022(Third quarter-end)As of December 31, 2022 FY2021(Third quarter-end)As of December 31, 2021

yen

yen

166.90―

198.42―

(2) Financial position			(Millions of yen, rounded down)
		Total assets	Net assets	Equity ratio
				%
As of December 31, 2022		1,883,535	838,974	44.3
As of March 31, 2022	1,956,200	872,835	44.4
(Reference) Shareholders' equity:	As of December 31, 2022	834,039 million yen
		As of March 31, 2022	868,886 million yen

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2. Dividends

		Dividends per share (yen)
	First quarter-end	Interim-end	Third quarter-end	Year-end	Total (Full year)
FY2021	―	65.00	―	65.00	130.00
FY2022	―	65.00	―
FY2022 (forecast)					65.00	130.00

(Note) Revisions of projected dividends most recently announced: None

3. Consolidated results forecast for the fiscal year ending March 31, 2023 (FY2022)

(From April 1, 2022 to March 31, 2023)

(Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year)

	Net sales		Operating income	Ordinary income	Net income attributable	Net income
		to owners of parent	per share
		%		%		%		%	yen
Full fiscal year	1,770,000	14.7	97,000	1.0	100,000	(3.1)	67,000	(6.2)	342.91
(Note) Revisions of consolidated forecasts most recently announced: None

*Notes

1. Changes in principal subsidiaries during the quarter under review
   (Changes in specified subsidiaries accompanying changes in scope of consolidation): None
2. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting principles, changes in accounting estimates and restatements

(i)	Changes in accounting principles due to revisions to accounting standards, etc.:	Yes
(ii)	Changes due to accounting principles other than (i):	None
(iii)	Changes in accounting estimates:	None
(iv)	Restatements:	None

(4) Number of shares outstanding (common stock)

1. Number of shares outstanding at the end of period (including treasury stock)

As of December	31, 2022	200,803,372 shares
As of March 31,	2022	200,803,372 shares
ii. Number of treasury stock at the end of period
As of December 31, 2022	9,515,915 shares
As of March 31, 2022	404,114 shares

iii. Average number of shares during the period (quarterly cumulative total)

FY2022(Third quarter-end)	197,060,127 shares
FY2021(Third quarter-end)	204,323,010 shares

(Note) The number of treasury stock at the end of the period and number of treasury stock excluded for calculating average number of shares during the period include the Company's shares held by the Board Benefit Trust (BBT).

(As of December 31, 2022 104,300 shares, As of March 31, 2022 104,300 shares, As of December 31, 2021 104,300 shares)

• This financial statement is exempt from auditing procedures.
• Disclaimer regarding appropriate use of forecasts and related points of note

Earnings forecasts in this document are based on information available at present and logical assessments and do not represent any promise by the Company. Actual results may be materially different from expectations due to a variety of factors.

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First three quarters

Overview of Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023

(Unit: 100 million yen; amounts less than 100 million yen are rounded to the nearest 100 million yen (partially adjusted for fractions))

Full fiscal year

				Previous fiscal year	Current fiscal year				Previous fiscal year	Current fiscal year
				(From April 1, 2021	(From April 1, 2022 to				(From April 1, 2021	(From April 1, 2022 to
				to December 31, 2021)	December 31, 2022)				to March 31, 2022)	March 31, 2023)
				Result	Result		Over previous				Result	Forecast		Over previous
							fiscal year							fiscal year
Amount of orders received			10,288	11,901		1,613				15,897	18,000		2,103
	Civil engineering		2,788	3,386	598			4,472	5,100	628
	Building construction		6,756	7,570	814			10,177	11,700	1,523
	Real estate development	678	873	195			1,140	1,100	(40)
	Other		66	72	6			108	100	(8)
Net sales			10,060	11,046		986				15,432	17,700		2,268
	Civil engineering		2,748	2,708	(40)			4,146	4,600	454
	Building construction		6,385	7,393	1,008			9,849	11,900	2,051
	Real estate development	861	873	12			1,329	1,100	(229)
	Other		66	72	6			108	100	(8)
Gross Profit	%		11.5	9.7		(1.8)				12.2	11.0		(1.2)
		1,161	1,071		(90)				1,877	1,940		63
	Civil engineering	%	14.3	13.9	(0.4)			17.2	16.1	(1.1)
		392	375	(17)	714	740	26
	Building construction	%	9.8	6.9	(2.9)			9.1	7.9	(1.2)
	510	940
			624	(114)	898	42
	Real estate	%	14.7	18.7	4.0			18.0	21.4	3.4
	development		126	164	38	239	235	(4)
	Other	%	28.7	30.0	1.3			24.1	25.0	0.9
		19	22	3	26	25	(1)
SG&A expenses	%	(6.3)	(5.9)	0.4			(6.0)	(5.5)	0.5
	(643)	(652)	(9)	(916)	(970)	(54)
Operating income	%		5.2	3.8		(1.4)				6.2	5.5		(0.7)
		518	419		(99)				961	970		9
Non-operating income (expenses)		68	71	3			71	30	(41)
(Net financial revenue)		47	42	(5)			55	30	(25)
Ordinary income	%		5.8	4.4		(1.4)				6.7	5.6		(1.1)
		586	490		(96)				1,032	1,000		(32)
Extraordinary income (loss)		5	3	(2)			3	(10)	(13)
Income before income taxes and	%		5.9	4.5		(1.4)				6.7	5.6		(1.1)
minority interests			591	493		(98)		1,035	990		(45)
Income taxes and others		(185)	(163)	22	(319)	(320)	(1)
Net income	%		4.0	3.0		(1.0)				4.6	3.8		(0.8)
		406	330		(76)				716	670		(46)
Net income (loss) attributable to		(1)	(1)	(0)	(2)	-	2
non-controlling interests
		%
Net income attributable to	4.0	3.0	(1.0)				4.6	3.8	(0.8)
owners of parent								714
	405	329	(76)	670	(44)

* "Forecasts" refer to the revised earnings forecasts outlined on November 11, 2022.

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Overview of Non-consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023

(Unit: 100 million yen; amounts less than 100 million yen are rounded to the nearest 100 million yen (partially adjusted for fractions))

					First three quarters						Full fiscal year
					Previous fiscal year	Current fiscal year			Previous fiscal year	Current fiscal year
					(From April 1, 2021	(From April 1, 2022 to			(From April 1, 2021	(From April 1, 2022 to
					to December 31, 2021)	December 31, 2022)			to March 31, 2022)	March 31, 2023)
					Result	Result					Result	Forecast
						Over previous			Over previous
								fiscal year						fiscal year
Amount of orders received			8,134	9,399		1,265		12,588		14,300	1,712
	Civil engineering		1,742	2,370		628		3,076		3,500	424
		Domestic		1,655	2,023		368		2,936		3,100	164
		Overseas		87	347		260		140		400	260
	Building construction		6,237	6,903		666		9,264		10,600	1,336
		Domestic		6,008	7,347		1,339		8,972		10,000	1,028
		Overseas		229	(444)		(673)		292		600	308
	Total			7,979	9,273		1,294			12,340		14,100	1,760
	Real estate development		108	76		(32)		165		120	(45)
	Other		47	50		3		83		8	(3)
Net sales			7,960	8,789		829			12,193		14,200	2,007
	Civil engineering		1,831	1,820		(11)		2,787		3,100	313
		Domestic		1,735	1,751		16		2,661		2,970	309
		Overseas		96	69		(27)		126		130	4
	Building construction		5,789	6,825		1,036		8,973		10,900	1,927
		Domestic		5,551	6,390		839		8,506		10,250	1,744
		Overseas		238	435		197		467		650	183
	Total			7,620	8,645		1,025			11,760		14,000	2,240
	Real estate development		293	94		(199)		350		120	(230)
	Other		47	50		3		83		80	(3)
Gross Profit	%		11.0	8.8		(2.2)			11.5		10.4	(1.1)
		878	775		(103)			1,401		1,470	69
	Civil engineering	%	16.3	16.3		-		20.2		18.1	(2.1)
		299	297		(2)	563		560	(3)
	Building construction	%	9.2	6.4		(2.8)		8.5		7.3	(1.2)
		532	434		(98)	761		800	39
	Total	%		10.9	8.5		(2.4)			11.3		9.7	(1.6)
			831	731		(100)			1,324		1,360	36
	Real estate development	%		11.0	31.6		20.6			16.1		75.0	58.9
		32	29		(3)	56		90	34
	Other	%	30.9	28.6		(2.3)		24.9		25.0	0.1
		15	15		(0)	21		20	(1)
SG&A expenses	%	(5.6)	(5.2)		0.4		(5.3)		(4.9)	0.4
	(448)	(455)		(7)	(648)		(690)	(42)
Operating income	%		5.4	3.6		(1.8)		6.2		5.5	(0.7)
		430	320		(110)			753		780	27
Non-operating income (expenses)	61	68		7		66		40	(26)
(Net financial revenue)		54	58		4		61		54	(7)
Ordinary income	%		6.2	4.4		(1.8)		6.7		5.8	(0.9)
		491	388		(103)			819		820	1
Extraordinary income (loss)	6	2		(4)		8		(10)	(18)
Income before income	%		6.2	4.4		(1.8)			6.8		5.7	(1.1)
taxes			497	390		(107)		827		810	(17)
Income taxes and others		(152)	(120)		32	(250)		(250)	(0)
			%	4.3	3.1		(1.2)		4.7		3.9	(0.8)
Net income
		345	270		(75)			577		560	(17)

• "Forecasts" refer to the revised earnings forecasts outlined on November 11, 2022.
  4

Quarterly consolidated financial statements

(1) Quarterly consolidated balance sheet

				(Millions of yen)
			As of March 31, 2022	As of December 31, 2022
	Assets
	Current assets
	Cash and deposits		499,113	359,545
	Notes receivable, accounts receivable from completed	575,600	584,824
	construction contracts and other
	Costs on construction contracts in progress		47,443	105,112
	Real estate for sale and development projects in progress	117,831	124,905
	Other inventories		3,389	5,089
	Other	53,079	46,235
	Allowance for doubtful accounts		(100)	(84)
	Total current assets	1,296,356	1,225,628
	Non-current assets
	Property, plant and equipment	207,435	210,135
	Intangible assets		16,016	17,154
	Investments and other assets
	Investment securities		380,271	375,147
	Retirement benefit asset	23,230	22,975
	Other		34,759	34,472
	Allowance for doubtful accounts	(1,869)	(1,979)
	Total investments and other assets		436,391	430,616
	Total non-current assets	659,844	657,906
	Total assets		1,956,200	1,883,535

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