明星工業（1976） – Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

[Translation for reference only] ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT This is an English translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 May 10, 2022 Company name: MEISEI INDUSTRIAL CO., LTD. Tokyo Stock Exchange Listing: 1976 Securities code: https://www.meisei-kogyo.co.jp/en/ URL: Toshiteru Otani, Representative Director, Chairman and Chief Executive Officer (CEO) Representative: Susumu Yamamoto, General Manager of Finance Division Inquiries: TEL: +81-6-6447-0275 Scheduled date of annual general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary results briefing material on financial results: Yes Yes Holding of financial results presentation meeting: June 23, 2022 June 24, 2022 June 24, 2022 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Note: Millions of yen with fractional amounts discarded, unless otherwise noted) (from April 1, 2021 to March 31, 2022) (1) Consolidated operating results Net sales Operating profit (Percentages indicate year-on-year changes.) Profit attributable to owners of parent Ordinary profit Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 48,389 50,533 (4.2) (4.8) 5,339 6,399 (16.6) (0.7) 5,641 6,742 (16.3) (3.6) 3,793 4,600 (17.5) (2.3) Note: Comprehensive income For the fiscal year ended March 31, 2022: ¥4,063 million [ (20.5) %] For the fiscal year ended March 31, 2021: ¥5,113 million [ 16.3 %] Net income per share Diluted net income per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended March 31, 2022 March 31, 2021 Yen 74.63 89.74 Yen － － % % % 6.9 8.8 8.1 10.0 11.0 12.7 Reference: Share of profit (loss) of entities accounted for using equity method – – For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of March 31, 2022 March 31, 2021 Millions of yen Millions of yen 71,149 68,920 55,924 54,365 % 78.1 78.3 Yen 1,116.33 1,053.19 Reference: Shareholders’ equity As of March 31, 2022: As of March 31, 2021: (3) Consolidated cash flows ¥55,562 million ¥53,999 million Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Cash and cash equivalents at end of period Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen Millions of yen Millions of yen Millions of yen 7,171 5,165 (9) (532) (2,661) (1,469) 27,183 22,471 – 1 – 2. Cash Dividends Fiscal year ended March 31, 2021 March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) Six months ending September 30, 2022 Fiscal year ending March 31, 2023 * Notes Cash dividends per share First quarter- end Second quarter- end Third quarter- end Fiscal year-end Annual Total cash dividends (Annual) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen % – – – 10.00 10.00 10.00 – – – 20.00 20.00 30.00 30.00 1,542 1,514 16.00 26.00 33.4 40.2 35.5 % 2.9 2.8 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit (Percentages indicate year-on-year changes.) Net income per share Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 24,000 7.5 2,400 22.3 2,500 15.4 1700 19.4 34.16 52,000 7.5 5,400 1.1 5,500 (2.5) 3,650 (3.8) 73.33 (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements a. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes b. Changes in accounting policies due to other reasons: c. Changes in accounting estimates: d. Restatements of prior period financial statements: None None None (3) Number of issued shares (common shares) a. Total number of issued shares at end of period (including treasury shares) b. Number of shares of treasury shares at end of period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 c. Average number of outstanding shares during the period For the fiscal year ended March 31, 2022 For the fiscal year ended March 31, 2021 56,386,718 shares 59,386,718 shares 6,614,632 shares 8,114,323 shares 50,838,602 shares 51,270,094 shares Note: 1. The figures stated for the number of treasury shares at end of period include shares of the Company that are held by a trust established to distribute shares to officers (Officers’ Share Distribution Trust). The calculation used to calculate the average number of outstanding shares during period excludes treasury shares, which include shares of the Company held by the Officers’ Share Distribution Trust. – 2 – (Reference) Overview of Non-consolidated operating results 1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % 34,054 37,215 (8.5) (0.7) 4,170 5,322 (21.6) 10.2 5,470 5,988 (8.6) 4.0 3,989 4,143 (3.7) 2.9 Fiscal year ended March 31, 2022 March 31, 2021 Fiscal year ended March 31, 2022 March 31, 2021 Net income per share Diluted net income per share Yen 78.48 80.82 Yen － － (2) Non-consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Shareholders’ equity As of March 31, 2022: As of March 31, 2021: ¥43,649 million ¥42,141 million Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 52,441 51,676 43,649 42,141 % 83.2 81.5 Yen 876.98 821.90 2. Non-consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023) Net sales Operating profit Ordinary profit (Percentages indicate year-on-year changes.) Net income per share Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen September 30, 2022 17,000 9.9 1,800 15.4 2,050 5.8 1,400 5.6 28.13 37,000 8.6 4,500 7.9 4,900 (10.4) 3,350 (16.0) 67.31 Six months ending Fiscal year ending March 31, 2023 * Consolidated Financial Results are not subject to auditing. * Proper use of earnings forecasts and other special notes (Caution regarding forward-looking statements) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport to be a promise by the Company to realize such statements. Actual business and other results may differ substantially due to various factors. – 3 – – 4 – Consolidated Financial Statements (1) Consolidated balance sheets (Millions of yen) As of March 31, 2021 As of March 31, 2022 Assets Current assets Cash and deposits Notes receivable – trade Electronically recorded monetary claims – operating Accounts receivable from completed construction contracts Contract assets Securities Costs on construction contracts in progress Merchandise and finished goods Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Machinery and vehicles Land Other Accumulated depreciation Total property, plant and equipment Intangible assets Investments and other assets Investment securities Investment property Retirement benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 22,484 2,173 1,689 18,288 － 400 1,655 251 166 339 (20) 47,428 10,031 4,805 11,150 2,037 (12,589) 15,436 86 3,492 2,053 31 45 432 (86) 5,969 21,491 68,920 27,192 1,421 1,837 15,346 2,597 300 554 278 190 143 (16) 49,847 10,040 4,798 11,200 2,212 (13,148) 15,102 74 3,731 2,007 30 15 431 (91) 6,124 21,301 71,149 – 5 – (Millions of yen) As of March 31, 2021 As of March 31, 2022 1,217 859 3,733 405 60 1,261 560 － 432 82 74 1,465 10,153 960 336 163 75 1,886 483 16 480 4,401 14,555 6,889 1,179 47,116 (3,345) 51,840 896 958 240 63 2,158 366 54,365 68,920 1,577 870 4,135 181 960 847 － 1,201 432 85 94 1,490 11,876 － 175 168 112 1,948 483 16 442 3,348 15,224 6,889 999 48,317 (3,071) 53,134 932 958 427 108 2,427 362 55,924 71,149 Liabilities Current liabilities Notes payable – trade Electronically recorded obligations – operating Accounts payable for construction contracts Accounts payable – trade Short-term borrowings Income taxes payable Advances received on construction contracts in progress Contract liabilities Provision for bonuses Provision for directors’ bonuses (and other officers) Provision for warranties for completed construction Other Total current liabilities Long-term borrowings Retirement benefit liability Provision for retirement benefits for directors (and other officers) Provision for share awards for directors (and other officers) Deferred tax liabilities Deferred tax liabilities for land revaluation Asset retirement obligations Other Total non-current liabilities 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 Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets – 6 – (2) Consolidated statements of income and consolidated statements of comprehensive income （Consolidated statements of income） (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Net sales of completed construction contracts Cost of sales of completed construction contracts Gross profit on completed construction contracts Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income from real estate Foreign exchange gains Gain on investments in investment partnerships Reversal of allowance for doubtful accounts Other Total non-operating income Non-operating expenses Interest expenses Rental costs on real estate Foreign exchange losses Litigation settlement Other Total non-operating expenses Ordinary profit 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 50,533 39,633 10,899 4,500 6,399 24 96 255 – 75 27 127 607 4 142 63 － 53 264 6,742 6,742 2,122 3 2,125 4,617 16 4,600 48,389 38,464 9,925 4,585 5,339 15 99 232 32 62 4 106 554 4 134 － 40 73 252 5,641 5,641 1,831 14 1,846 3,795 1 3,793 – 7 – （Consolidated statements of comprehensive income） (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment 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 4,617 456 (111) 151 495 5,113 5,096 16 3,795 35 187 45 268 4,063 4,062 1 – 8 – (3) Consolidated statements of changes in equity Fiscal year ended March 31, 2021 (Millions of yen) Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Shareholders’ equity Balance at beginning of period 6,889 1,179 44,058 (3,350) 48,776 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity (1,542) 4,600 (0) 6 (1,542) 4,600 (0) 6 3,063 51,840 Total changes during period Balance at end of period － 6,889 － 1,179 3,058 47,116 5 (3,345) Valuation difference on available-for-sale securities Accumulated other comprehensive income Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 440 958 352 (88) 1,662 － 344 50,783 Changes during period Dividends of surplus Profit attributable to owners of parent 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 456 456 896 － － － 22 22 (1,542) 4,600 (0) 6 518 3,582 366 54,365 － － 958 (111) (111) 240 151 151 63 495 495 2,158 – 9 – Fiscal year ended March 31, 2022 (Millions of yen) Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Shareholders’ equity Balance at beginning of period 6,889 1,179 47,116 (3,345) 51,840 Restated balance 6,889 1,179 47,213 (3,345) 51,937 Total changes during period Balance at end of period － 6,889 (179) 999 1,103 48,317 Accumulated other comprehensive income Valuation difference on available-for-sale securities Revaluation reserve for land Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 896 958 240 63 2,158 － 366 54,365 Restated balance 896 958 240 63 2,158 － 366 54,462 Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Purchase of treasury shares by stock benefit trust Net changes in items other than shareholders’ equity Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Cancellation of treasury shares Purchase of treasury shares by stock benefit trust Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 30 (209) – 10 – 96 (1,542) 3,793 (1,147) 96 (1,542) 3,793 (1,053) 74 － (74) 1,197 53,134 (3) (3) 96 (1,542) 3,793 (1,053) 74 － (74) 265 1,462 (1,053) 44 1,357 (74) 273 (3,071) － － － 35 35 932 － － 958 187 187 427 45 45 268 268 108 2,427 362 55,924 (4) Consolidated statements of cash flows (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for loss on construction contracts Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in provision for share awards for directors (and other officers) Increase (decrease) in other provisions Decrease (increase) in retirement benefit asset Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Foreign exchange losses (gains) Loss (gain) on valuation of investment securities Decrease (increase) in trade receivables Decrease (increase) in costs on construction contracts in progress Decrease (increase) in other inventories Increase advances (decrease) construction contracts in progress Increase (decrease) in trade payables Other, net Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities received on in Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of investment securities Proceeds from sale and redemption of investment securities Purchase of property, plant and equipment Proceeds from partnerships Other, net Net cash provided by (used in) investing activities distributions investment from 6,742 810 19 (6) 18 28 41 (7) (76) (121) 4 (1) – 788 (53) 115 435 (1,792) 81 7,027 121 (4) (1,978) 5,165 (307) 307 (308) 100 (788) 183 281 (532) 5,641 761 0 – 5 37 23 0 (95) (115) 4 (45) 0 1,706 481 (51) 640 513 (271) 9,238 116 (4) (2,178) 7,171 (307) 307 (307) 200 (251) 62 286 (9) – 11 – (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Cash flows from financing activities Proceeds from long-term borrowings Repayments of long-term borrowings Purchase of treasury shares Proceeds from disposal of treasury shares Dividends paid Dividends paid to non-controlling interests Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 800 (740) (0) 6 (1,541) (8) 13 (1,469) (72) 3,090 19,381 22,471 – (60) (1,128) 74 (1,542) (5) – (2,661) 211 4,712 22,471 27,183 – 12 – Segment Information I.The fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021) Information on sales and income on each reportable segment Construction Business Boiler Business Total Adjustment (Notes 1, 2 and 3) (Millions of yen) Amounts on the consolidated statement of income (Note 4) Net sales: Sales to external customers Intersegment sales or transfers Total Segment profit Segment assets Other items: Depreciation and amortization Increase in property, plant and equipment and intangible assets Notes: 45,518 95 45,614 6,232 39,748 700 867 5,014 241 5,256 156 6,319 40 34 50,533 337 50,870 6,389 46,068 741 901 – (337) (337) 10 22,852 68 – 50,533 – 50,533 6,399 68,920 810 901 1. Adjustment for segment income represents eliminations of intersegment sales or transfers. 2. Adjustment for segment assets consists of negative ¥197 million of adjustment of intersegment transactions and ¥23,050 million of corporate assets, which are primarily surplus funds (cash and deposits) of the Company, long-term investment funds (investment securities and investments in capital), and headquarters buildings. 3. Adjustments for other items represent the amounts of adjustments related to corporate assets (headquarters buildings and others). 4. Segment profit is adjusted to be consistent with operating profit in the consolidated statements of income. – 13 – II.The fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) Information on sales and income on each reportable segment, and information on disaggregation of revenue (Millions of yen) Amounts on the consolidated statement of income (Note 4) Adjustment (Notes 1, 2 and 3) Construction Business Boiler Business Total 39,873 3,761 2 43,637 43,637 37 43,674 4,961 37,814 655 324 4,670 79 2 4,751 4,751 332 5,084 367 7,620 37 7 44,543 3,840 4 48,389 48,389 369 48,758 5,329 45,435 692 332 – – – – – 9 68 1 (369) (369) 25,714 4 – 44,543 3,840 48,389 48,389 48,389 5,339 71,149 761 333 Net sales: Japan Asia Other Revenue from contracts with customers Sales to external customers Intersegment sales or transfers Total Segment profit Segment assets Other items: Depreciation and amortization Increase in property, plant and equipment and intangible assets Notes: 1. Adjustment for segment income represents eliminations of intersegment sales or transfers. 2. Adjustment for segment assets consists of negative ¥194 million of adjustment of intersegment transactions and ¥25,908 million of corporate assets, which are primarily surplus funds (cash and deposits) of the Company, long-term investment funds (investment securities and investments in capital), and headquarters buildings. 3. Adjustments for other items represent the amounts of adjustments related to corporate assets (headquarters buildings and others). 4. Segment profit is adjusted to be consistent with operating profit in the consolidated statements of income. – 14 – Status of Orders Received, Sales and Balance of Orders Orders received Segment Construction Business Boiler Business Total Net sales Segment Construction Business Boiler Business Total Balance of orders Segment Construction Business Boiler Business Total fiscal year ended March 31, 2021 fiscal year ended March 31, 2022 Increase (decrease) Millions of yen % Millions of yen % Millions of yen 44,366 5,214 49,581 89.5 10.5 100.0 47,901 6,019 53,921 88.8 11.2 100.0 3,534 804 4,339 fiscal year ended March 31, 2021 fiscal year ended March 31, 2022 Increase (decrease) Millions of yen % Millions of yen % Millions of yen 45,518 5,014 50,533 90.1 9.9 100.0 43,637 4,751 48,389 90.2 9.8 100.0 (1,880) (263) (2,143) fiscal year ended March 31, 2021 fiscal year ended March 31, 2022 Increase (decrease) Millions of yen % Millions of yen % Millions of yen 12,197 3,634 15,831 77.0 23.0 100.0 16,461 4,902 21,363 77.1 22.9 100.0 4,264 1,267 5,531 % 8.0 15.4 8.8 % (4.1) (5.3) (4.2) % 35.0 34.9 34.9 – 15 –