四電工（1939） – Summary of Financial Results 2022

Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects. Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [Japanese GAAP] April 27, 2022 Company name: YONDENKO CORPORATION Stock exchange listing: Tokyo Stock Exchange Code number: 1939 URL: https://www.yondenko.co.jp/en/ Representative: Yukio Sekiya, Representative Director & President Contact: Tadakazu Takata, Executive Officer, General Manager, Accounting & Finance Dept. Phone: +81-87-840-0230 Scheduled date of annual general meeting of shareholders: June 29, 2022 Scheduled date of commencing dividend payments: June 30, 2022 Scheduled date of filing securities report: June 30, 2022 Availability of supplementary explanatory materials on annual financial results: Available Schedule of annual financial results briefing session: Scheduled (Video streaming is scheduled.) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Operating profit Ordinary profit Net sales (Amounts of less than one million yen are rounded down.) Million yen 92,648 89,629 Fiscal year ended March 31, 2022 March 31, 2021 (Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥3,606 million [(36.8)%] Fiscal year ended March 31, 2021: ¥5,708 million [659.0%] Ratio of ordinary profit to total assets % Million yen 5,415 5,089 % Million yen 6,145 5,563 Basic earnings per share Diluted earnings per share Return on equity 6.4 48.9 10.5 42.4 3.4 8.3 Fiscal year ended March 31, 2022 March 31, 2021 (Reference) Equity in earnings of affiliated companies: Yen 240.53 232.74 Yen – – % 7.2 7.5 % Million yen 3,779 3,652 % 3.5 59.5 Ratio of operating profit to net sales % 5.8 5.7 % 6.3 5.9 Fiscal year ended March 31, 2022: ¥– million Fiscal year ended March 31, 2021: ¥– million (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. Basic earnings per share have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2021. Total assets (2) Consolidated Financial Position As of March 31, 2022 As of March 31, 2021 (Reference) Equity: As of March 31, 2022: ¥54,122 million As of March 31, 2021: ¥51,526 million Million yen 96,517 98,998 Million yen 54,175 51,567 Net assets Equity ratio Net assets per share Yen 3,443.05 3,282.96 % 56.1 52.0 (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. Net assets per share have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2021. 1 (3) Consolidated Cash Flows Fiscal year ended March 31, 2022 March 31, 2021 2. Dividends Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Million yen 9,918 9,422 Million yen (1,586) (1,747) Million yen (2,554) (2,371) Cash and cash equivalents at end of period Million yen 19,095 13,318 1st quarter-end Annual dividends 3rd quarter-end 2nd quarter-end Year-end Total dividends (annual) Payout ratio (consolidated) Total Ratio of dividends to net assets (consolidated) % – Yen Yen Yen Yen 40.00 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. The figures for dividend periods until the second quarter of Million yen 100.00 60.00 70.00 55.00 1,414 45.00 45.00 90.00 21.5 37.4 40.4 784 1.6 2.7 Yen % – – – – – – the fiscal year ended March 31, 2022 show actual dividend amounts before conducting the share split. The annual dividend per share converted on a post-share-split basis is 50 yen for the fiscal year ended March 31, 2021 and 90 yen for the fiscal year ended March 31, 2022. 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023) Full year Net sales Operating profit (% indicates changes from the previous corresponding period.) Profit attributable to owners of parent Basic earnings per share Ordinary profit Million yen 93,000 0.4 % Million yen 5,000 % Million yen 5,400 (7.7) % Million yen 3,500 (12.1) % (7.4) Yen 222.66 * Notes: (1) Changes in significant subsidiaries during the fiscal year under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation) (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the year (including treasury shares): March 31, 2022: March 31, 2021: March 31, 2022: March 31, 2021: 2) Total number of treasury shares at the end of the year: 3) Average number of shares outstanding during the year: Year ended March 31, 2022: Year ended March 31, 2021: 15,712,040 shares 15,691,487 shares (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. The total number of issued shares at the end of the year, the total number of treasury shares at the end of the year, and the average number of shares outstanding during the year have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2021. 16,255,470 shares 16,255,470 shares 536,121 shares 560,300 shares 2 (Reference) Summary of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, (1) Non-consolidated Operating Results Net sales (% indicates changes from the previous corresponding period.) Operating profit Ordinary profit Profit Million yen 77,965 76,412 % Million yen 3,675 2,997 2.0 7.5 % Million yen 4,802 3,750 22.6 71.1 % Million yen 3,268 2,695 28.0 44.6 % 21.3 61.2 2022) Year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Year ended Yen – March 31, 2022 – March 31, 2021 (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. Basic earnings per share have been calculated assuming that Yen 208.05 171.78 the share split was conducted at the beginning of the fiscal year ended March 31, 2021. (2) Non-consolidated Financial Position Total assets As of March 31, 2022 As of March 31, 2021 (Reference) Equity: As of March 31, 2022: ¥47,475 million As of March 31, 2021: ¥45,655 million Million yen 77,642 77,709 Million yen 47,475 45,655 Net assets Equity ratio Net assets per share Yen 3,020.19 2,908.87 % 61.1 58.8 (Note) The Company conducted a 2-for-1 share split of common shares on October 1, 2021. Net assets per share have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended March 31, 2021. 2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023) Full year Net sales Operating profit Ordinary profit Profit Basic earnings per share (% indicates changes from the previous corresponding period.) Million yen 78,000 % Million yen 3,300 0.0 % Million yen 4,000 (10.2) % Million yen 2,800 (16.7) % (14.3) Yen 178.12 * These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes The above forecasts are prepared on the basis of the Company’s current outlook and plans as of the date of publication of this document and do not represent a promise or commitment by the Company to achieve them. Actual results may be different from the forecast figures due to various factors in the future. Please refer to page 3 of the attached document (available only in Japanese) for the assumptions and other matters related to the above forecasts. 3 As of March 31, 2021 As of March 31, 2022 (Million yen) 8,467 22,179 1,642 3,521 6,136 2,195 5,600 2,427 (42) 52,127 19,081 21,511 12,121 7 (24,600) 28,120 2,031 575 2,606 11,029 628 2,160 1,974 548 (197) 16,143 46,870 98,998 8,323 20,639 1,463 3,633 2,047 1,495 11,800 1,013 (72) 50,343 19,986 21,724 12,095 – (25,807) 28,000 1,633 544 2,178 10,088 624 2,572 2,167 774 (232) 15,995 46,173 96,517 Consolidated Financial Statements (1) Consolidated Balance Sheets Assets Current assets Cash and deposits Notes receivable, accounts receivable from completed construction contracts and other Electronically recorded monetary claims – operating Investments in leases Costs on construction contracts in progress Other inventories Deposits paid to subsidiaries and associates Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Machinery, vehicles, tools, furniture and fixtures Land Construction in progress Accumulated depreciation Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Retirement benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 4 As of March 31, 2021 As of March 31, 2022 (Million yen) 14,812 340 116 3,023 5,303 1,920 4,707 31 3,160 33,414 110 10,505 275 2,967 156 14,015 47,430 3,451 4,222 43,869 (649) 50,894 582 49 632 41 51,567 98,998 12,440 360 140 3,013 5,289 1,655 2,390 6 4,103 29,400 111 9,390 298 2,953 186 12,941 42,341 3,451 4,234 46,627 (622) 53,691 120 310 431 53 54,175 96,517 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Accounts payable – other Income taxes payable Advances received on construction contracts in progress Provision for loss on construction contracts Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Provision for retirement benefits for directors (and other officers) Retirement benefit liability 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-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 5 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) Net sales Cost of sales Gross profit Net sales of completed construction contracts Sales in other businesses Total net sales Cost of sales of completed construction contracts Cost of sales in other businesses Total cost of sales Gross profit on completed construction contracts Gross profit – other business Total gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Gain on sale of securities Gain on sale of goods Dividend income of life insurance Rental income from real estate Other Total non-operating income Non-operating expenses Interest expenses Condolence money Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Other Total extraordinary income Extraordinary losses Loss on sale of non-current assets Impairment losses Loss on retirement of non-current assets Loss on valuation of investment securities Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 6 82,239 7,389 89,629 69,934 5,615 75,550 12,305 1,774 14,079 8,989 5,089 16 217 – 105 72 60 76 549 53 5 16 75 5,563 13 19 – 32 0 26 4 95 8 134 5,461 2,256 (474) 1,781 3,679 27 3,652 86,524 6,123 92,648 73,591 4,436 78,027 12,933 1,687 14,620 9,204 5,415 16 345 30 170 66 63 106 799 46 13 9 69 6,145 0 – 1 2 – 93 22 222 2 341 5,807 2,092 (92) 2,000 3,807 27 3,779 Consolidated Statements of Comprehensive Income Profit Other comprehensive income Valuation difference on available-for-sale securities Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) 3,679 1,042 986 2,028 5,708 5,680 27 3,807 (462) 261 (200) 3,606 3,578 27 7 (3) Consolidated Statements of Changes in Equity Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Million yen) Total shareholders’ equity Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Increase in consolidated subsidiaries – non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Increase in consolidated subsidiaries – non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 3,451 4,221 40,899 (627) 3,652 (54) 1 – 3,451 1 4,222 2,970 43,869 15 (649) 2,986 50,894 Accumulated other comprehensive income Remeasurements of defined benefit plans Non-controlling interests Total net assets Valuation difference on available-for-sale securities (459) (664) (2) 17 – 41 – 41 41 47,907 (627) 3,652 (2) 18 (54) – 46,511 (627) 3,652 (2) 18 (54) 41 2,028 5,056 51,567 (936) 986 986 49 1,042 1,042 582 8 Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings (Million yen) Total shareholders’ equity Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Increase in consolidated subsidiaries – non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Change in scope of consolidation Increase in consolidated subsidiaries – non-controlling interests Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 3,451 4,222 11 43,869 (1,021) 3,779 – 3,451 11 4,234 2,758 46,627 27 (622) 2,796 53,691 Accumulated other comprehensive income Remeasurements of defined benefit plans Non-controlling interests Total net assets Valuation difference on available-for-sale securities 582 (649) (3) 30 41 (16) 27 11 53 50,894 (1,021) 3,779 (3) 41 – – 51,567 (1,037) 3,779 (3) 41 – – (173) 2,607 54,175 49 261 261 310 (462) (462) 120 9 For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) (4) Consolidated Statements of Cash Flows Cash flows from operating activities Profit before income taxes Depreciation Impairment losses Amortization of goodwill Increase (decrease) in retirement benefit liability Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for loss on construction contracts Loss (gain) on valuation of investment securities Decrease (increase) in retirement benefit asset Interest and dividend income Loss (gain) on sale of securities Decrease (increase) in trade receivables Decrease (increase) in investments in leases Decrease (increase) in costs on construction contracts in progress Decrease (increase) in other inventories Increase (decrease) in trade payables Decrease (increase) in accounts receivable – other Increase (decrease) in accounts payable – other Increase (decrease) in advances received on construction contracts in progress Increase (decrease) in accrued consumption taxes Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Proceeds from sale and redemption of securities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of investment securities Proceeds from sale and redemption of investment securities Purchase of shares of subsidiaries and associates Purchase of intangible assets Loan advances Proceeds from collection of loans receivable Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities 10 5,461 2,027 26 398 220 161 (8) 95 264 (234) – (452) (173) (1,457) (506) 3,498 (838) 103 1,549 (77) 656 10,714 234 (70) (1,455) 9,422 100 (1,246) 168 (99) 64 (30) (70) (600) 6 – – (40) (1,747) 5,807 2,003 93 584 110 (18) (25) 222 (161) (362) (30) 1,919 (58) 4,091 700 (2,573) 1,576 (44) (2,322) 508 (137) 11,883 358 (62) (2,260) 9,918 – (1,350) 19 (2,032) 2,169 (5) (57) (56) 186 22 (305) (175) (1,586) Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Redemption of bonds Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Other, net Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation Cash and cash equivalents at end of period For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) – 1,860 (3,251) (119) (3) (1,019) (16) (6) (2,554) 5,776 13,318 – 19,095 (640) 2,120 (3,187) (16) (2) (626) (12) (6) (2,371) 5,303 7,774 240 13,318 11 As of March 31, 2021 As of March 31, 2022 (Million yen) 3,705 2,571 18,235 2,997 2,174 53 150 1,987 5,600 151 (11) 37,615 15,340 (10,115) 5,225 2,133 (1,568) 565 727 (472) 255 1,022 (942) 79 11,449 3,927 (2,075) 1,852 6 19,433 3,102 2,338 15,711 1,618 1,477 57 47 666 11,800 129 (4) 36,944 16,070 (10,369) 5,701 2,272 (1,628) 644 758 (501) 256 1,077 (960) 116 11,345 3,866 (2,098) 1,768 － 19,832 Non-consolidated Financial Statements (1) Non-consolidated Balance Sheets Assets Current assets Cash and deposits Notes receivable – trade Accounts receivable from completed construction contracts Costs on construction contracts in progress Raw materials and supplies Prepaid expenses Short-term loans receivable from subsidiaries and associates Accounts receivable – other Deposits paid to subsidiaries and associates Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings Accumulated depreciation Buildings, net Structures Accumulated depreciation Structures, net Machinery and vehicles Accumulated depreciation Machinery and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Leased assets Accumulated depreciation Leased assets, net Construction in progress Total property, plant and equipment 12 (Million yen) As of March 31, 2021 As of March 31, 2022 Intangible assets Leasehold interests in land Software Other Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Long-term loans receivable from subsidiaries and associates Long-term loans receivable from employees Distressed receivables Long-term prepaid expenses Prepaid pension costs Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets Liabilities Current liabilities Notes payable – trade Accounts payable for construction contracts Lease liabilities Accounts payable – other Accrued expenses Income taxes payable Accrued consumption taxes Advances received on construction contracts in progress Deposits received Provision for loss on construction contracts Other Total current liabilities 7 97 36 140 8,176 8,120 600 27 0 0 2,027 1,436 303 (171) 20,520 40,094 77,709 2,459 11,210 670 5,063 1,422 1,438 1,086 1,964 2,270 31 2 27,621 7 103 35 146 7,350 8,704 600 23 0 0 2,189 1,709 312 (171) 20,718 40,697 77,642 2,121 9,487 671 5,002 1,442 1,183 1,111 1,702 2,398 6 572 25,700 13 As of March 31, 2021 As of March 31, 2022 (Million yen) Non-current liabilities Lease liabilities Provision for retirement benefits Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Legal capital surplus Other capital surplus Total capital surplus Retained earnings Legal retained earnings Other retained earnings Reserve for tax purpose reduction entry of non-current assets General reserve Retained earnings brought forward Total retained earnings Treasury shares Total shareholders’ equity Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Total net assets Total liabilities and net assets 1,513 2,838 80 4,432 32,054 3,451 4,209 13 4,222 862 706 29,700 6,762 38,031 (649) 45,056 598 598 45,655 77,709 1,417 2,968 80 4,466 30,166 3,451 4,209 25 4,234 862 703 29,700 9,013 40,279 (622) 47,343 132 132 47,475 77,642 14 For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 (Million yen) 73,859 2,552 76,412 63,780 2,242 66,022 10,079 310 10,389 221 3,465 321 582 281 31 219 136 66 57 315 36 155 29 12 119 453 387 9 0 12 478 7,391 2,997 75,828 2,136 77,965 65,200 1,768 66,969 10,627 368 10,996 241 3,460 208 580 329 28 236 154 70 74 369 69 (6) 35 12 121 431 370 9 － 8 514 7,320 3,675 (2) Non-consolidated Statements of Income Net sales Net sales of completed construction contracts Net sales in sideline businesses Total net sales Cost of sales Cost of sales of completed construction contracts Cost of sales in sideline businesses Total cost of sales Gross profit Gross profit on completed construction contracts Gross profit on sideline business Total gross profit Selling, general and administrative expenses Remuneration for directors (and other officers) Employees’ salaries and allowances Retirement benefit expenses Legal welfare expenses Welfare expenses Repair and maintenance expenses Stationery expenses Communication and transportation expenses Power utilities expenses Research study expenses Education and training expenses Advertising expenses Provision of allowance for doubtful accounts Entertainment expenses Donations Rent expenses on land and buildings Depreciation Taxes and dues Insurance expenses Bad debt expenses Administrative outsourcing expenses Miscellaneous expenses Total selling, general and administrative expenses Operating profit 15 Non-operating income Interest income Interest on securities Dividend income Gain on sale of securities Gain on sale of goods Dividend income of life insurance Rental income from real estate Other Total non-operating income Non-operating expenses Interest expenses Condolence money Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on sale of non-current assets Impairment losses Loss on retirement of non-current assets Loss on valuation of investment securities Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (Million yen) For the fiscal year ended March 31, 2021 For the fiscal year ended March 31, 2022 8 7 596 － 105 72 75 24 890 117 5 15 137 3,750 13 19 32 0 26 2 94 123 3,660 1,481 (516) 964 2,695 12 3 846 30 168 66 77 50 1,255 110 9 7 128 4,802 － － － － 105 19 222 347 4,455 1,254 (68) 1,186 3,268 16 (3) Non-consolidated Statements of Changes in Equity Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Shareholders’ equity Capital surplus Legal capital surplus Other capital surplus (Million yen) Retained earnings Legal retained earnings 4,209 12 862 Share capital 3,451 Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Reversal of reserve for special depreciation Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity 1 1 13 – 862 Total changes during period Balance at end of period – 3,451 – 4,209 Valuation difference on available-for-sale securities Shareholders’ equity Retained earnings Other retained earnings Reserve for special depreciation General reserve Retained earnings brought forward Treasury shares Total net assets Total shareholders’ equity Valuation difference on available-for-sale securities 711 56 29,700 4,633 (664) 42,972 42,518 (56) 56 (627) 2,695 5 (2) 17 – – (627) 2,695 (2) 18 (5) 706 (56) – – 29,700 2,129 6,762 15 (649) 2,084 45,056 (453) 1,051 1,051 598 – – (627) 2,695 (2) 18 1,051 3,136 45,655 Reserve for tax purpose reduction entry of non-current assets (5) Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Reversal of reserve for special depreciation Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 17 Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Shareholders’ equity Capital surplus Legal capital surplus Other capital surplus (Million yen) Retained earnings Legal retained earnings 4,209 13 862 Share capital 3,451 Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Reversal of reserve for special depreciation Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity 11 11 25 – 862 Total changes during period Balance at end of period – 3,451 – 4,209 Valuation difference on available-for-sale securities Shareholders’ equity Retained earnings Other retained earnings Reserve for special depreciation General reserve Retained earnings brought forward Treasury shares Total net assets Total shareholders’ equity Valuation difference on available-for-sale securities 29,700 6,762 (649) 45,056 (598) 45,655 – – – 3 (1,021) 3,268 (3) 30 – – (1,021) 3,268 (3) 41 – 29,700 2,251 9,013 27 (622) 2,286 47,343 (466) (466) 132 – – (1,021) 3,268 (3) 41 (466) 1,820 47,475 Reserve for tax purpose reduction entry of non-current assets 706 (3) (3) 703 Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Reversal of reserve for special depreciation Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 18