Yahagi Construction : Summary of Consolidated Financial Results for the Year Ended March 31, 2023

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended March 31, 2023

(Based on Japanese GAAP)

May 10, 2023

Company name:	YAHAGI CONSTRUCTION CO., LTD.
Stock exchange listing:	Tokyo, Nagoya
Stock code:	1870	URL https://www.yahagi.co.jp/
Representative:	President and Director	Mitsuhiro Takayanagi
Contact:	[e-mail]
Scheduled date of ordinary general meeting of shareholders:	June 29, 2023
Scheduled date to file Securities Report:	June 29, 2023
Scheduled date to commence dividend payments:	June 8, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results												Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended March 31, 2023	111,110		19.4	7,212		16.9		7,259	17.6		4,508		(6.9)
Year ended March 31, 2022	93,090		(12.7)	6,169		(16.2)		6,174	(17.1)	4,842		47.1
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended March 31, 2023		104.83			-			7.6						5.9				6.5
Year ended March 31, 2022		112.18			-			8.6						5.0				6.6
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of March 31, 2023		129,987					60,431					46.5				1,405.10
As of March 31, 2022		116,423					57,532					49.4				1,338.10
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended March 31, 2023				4,152					(3,069)					(253)					22,721
Year ended March 31, 2022		15,841					(1,549)					(14,351)						21,891
2. Cash dividends
					Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended March 31, 2022	-			17.00	-		21.00	38.00		1,649		33.9			2.9
Year ended March 31, 2023	-			19.00	-		24.00	43.00		1,866		41.0			3.1
Year ending March 31, 2024	-			30.00	-				30.00	60.00				41.0
(Forecast)

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3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
53,000	27.7	500	(71.2)	500	(71.8)		300	(75.1)	6.98
September 30, 2023
Full year	122,000	9.8	9,500	31.7	9,500	30.9		6,300	39.7	146.48
4. Notes
(1) Changes in significant subsidiaries during the year ended March 31, 2023			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of March 31, 2023	44,607,457	shares	As of March 31, 2022	44,607,457	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	1,598,789	shares	As of March 31, 2022	1,612,091	shares
Average number of shares during the period
	Year ended March 31, 2023	43,004,282	shares	Year ended March 31, 2022	43,164,454	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	22,011	22,821
Notes receivable, accounts receivable from completed	32,351	42,427
construction contracts and other
Electronically recorded monetary claims - operating	457	326
Costs on construction contracts in progress	2,534	2,074
Real estate for sale	19,884	20,239
Merchandise and finished goods	25	26
Raw materials and supplies	452	626
Other	2,804	3,770
Allowance for doubtful accounts	(86)	(88)
Total current assets	80,435	92,223
Non-current assets
Property, plant and equipment
Buildings and structures	14,661	15,124
Machinery, vehicles, tools, furniture and fixtures	3,345	3,499
Land	19,091	19,847
Leased assets	103	90
Construction in progress	55	535
Accumulated depreciation	(9,985)	(10,600)
Total property, plant and equipment	27,272	28,497
Intangible assets	390	805
Investments and other assets
Investment securities	5,298	5,174
Retirement benefit asset	244	247
Deferred tax assets	1,844	2,047
Other	987	1,039
Allowance for doubtful accounts	(49)	(48)
Total investments and other assets	8,326	8,460
Total non-current assets	35,988	37,763
Total assets	116,423	129,987

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		(Millions of yen)
	As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts	6,758	10,551
and other
Electronically recorded obligations - operating	3,635	8,145
Short-term borrowings	25,400	28,100
Income taxes payable	1,072	1,058
Advances received on construction contracts in progress	4,780	4,604
Provision for warranties for completed construction	441	447
Provision for loss on construction contracts	0	53
Provision for bonuses for directors (and other officers)	70	69
Other	2,988	3,814
Total current liabilities	45,148	56,843
Non-current liabilities
Long-term borrowings	5,000	3,800
Deferred tax liabilities for land revaluation	221	221
Retirement benefit liability	4,864	5,178
Asset retirement obligations	353	371
Provision for share-based payments	49	88
Other	3,252	3,050
Total non-current liabilities	13,743	12,712
Total liabilities	58,891	69,556
Net assets
Shareholders' equity
Share capital	6,808	6,808
Capital surplus	7,244	7,244
Retained earnings	49,124	51,896
Treasury shares	(897)	(886)
Total shareholders' equity	62,279	65,062
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,224	1,484
Revaluation reserve for land	(5,882)	(5,882)
Remeasurements of defined benefit plans	(90)	(232)
Total accumulated other comprehensive income	(4,747)	(4,630)
Total net assets	57,532	60,431
Total liabilities and net assets	116,423	129,987

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	March 31, 2022	March 31, 2023
Net sales
Net sales of completed construction contracts	78,993	94,265
Net sales in real estate business and other	14,096	16,845
Total net sales	93,090	111,110
Cost of sales
Cost of sales of completed construction contracts	68,613	83,443
Cost of sales in real estate business and other	9,541	11,076
Total cost of sales	78,155	94,520
Gross profit
Gross profit on completed construction contracts	10,379	10,822
Gross profit on real estate business and other	4,555	5,768
Total gross profit	14,935	16,590
Selling, general and administrative expenses	8,765	9,377
Operating profit	6,169	7,212
Non-operating income
Interest income	0	0
Dividend income	105	101
Other	51	49
Total non-operating income	157	151
Non-operating expenses
Interest expenses	127	85
Miscellaneous expenses	24	18
Total non-operating expenses	152	104
Ordinary profit	6,174	7,259
Extraordinary income
Gain on sale of non-current assets	3	-
Gain on sale of investment securities	899	-
Total extraordinary income	903	-
Extraordinary losses
Loss on retirement of non-current assets	26	137
Loss on valuation of investment securities	30	501
Impairment losses	-	240
Other	1	-
Total extraordinary losses	58	879
Profit before income taxes	7,019	6,379
Income taxes - current	2,176	2,104
Income taxes - deferred	0	(233)
Total income taxes	2,177	1,871
Profit	4,842	4,508
Profit attributable to owners of parent	4,842	4,508

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