日本リーテック（1938） – [Delayed]Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. May 12, 2022 Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP) Company name: NIPPON RIETEC CO., LTD. Tokyo Stock Exchange Listing: 1938 Securities code: https://www.j-rietec.co.jp/ URL: Shoji Tanabe, Representative Director and President Representative: Masaaki Sawamura, Director and General Manager of Finance Department Inquiries: Telephone: +81-3-6880-2710 Scheduled date of annual general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to file annual securities report: Preparation of supplementary material on financial results: Holding of financial results briefing: June 24, 2022 June 27, 2022 June 24, 2022 Yes Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 53,231 55,200 (3.6) (10.4) 3,068 4,220 (27.3) (6.8) 3,304 4,765 (30.7) (7.5) 2,403 3,278 (26.7) (9.8) Note: Comprehensive income For the fiscal year ended March 31, 2022 ¥1,795 million For the fiscal year ended March 31, 2021 ¥3,430 million [(47.7)%] [8.1%] Basic earnings per share Diluted earnings per share Return on equity Fiscal year ended March 31, 2022 March 31, 2021 Yen 95.55 130.35 Yen – – Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2022 ¥65 million For the fiscal year ended March 31, 2021 ¥344 million Ratio of ordinary profit to total assets Ratio of operating profit to net sales % 4.4 6.2 % 4.1 5.9 % 5.8 7.6 (2) Consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Equity Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 79,857 80,618 55,504 54,637 % 69.5 67.8 Yen 2,206.82 2,172.34 As of March 31, 2022: As of March 31, 2021: ¥55,504 million ¥54,637 million (3) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from 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 2,625 3,069 (455) (1,520) (1,088) (2,017) 7,828 6,747 2. Cash dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) Annual dividends First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Total cash dividends (Total) Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen Yen Yen Yen Yen Millions of yen % – – – – – – – – – 27.00 27.00 27.00 27.00 27.00 27.00 679 679 20.7 28.3 30.9 % 1.3 1.2 Ordinary dividend of ¥27.00 Breakdown of the year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend of ¥27.00 Breakdown of the year-end dividend for the fiscal year ended March 31, 2022: Breakdown of the year-end dividend forecast for the fiscal year ending March 31, 2023: Ordinary dividend of ¥27.00 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.) Profit attributable to owners of parent Basic earnings per share Fiscal year ending March 31, 2023 Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 54,000 1.4 2,900 (5.5) 3,140 (5.0) 2,200 (8.5) 87.47 * Notes change in scope of consolidation): None Newly included: Excluded: – companies – companies (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the (2) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (3) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) (ii) Number of treasury shares at the end of the period As of March 31, 2022 As of March 31, 2021 As of March 31, 2022 As of March 31, 2021 (iii) Average number of shares outstanding during the period Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 25,617,717 shares 25,617,717 shares 466,416 shares 466,377 shares 25,151,316 shares 25,151,386 shares [Reference] Overview of non-consolidated financial 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 Profit Fiscal year ended March 31, 2022 March 31, 2021 Millions of yen % Millions of yen % Millions of yen % Millions of yen % 47,250 48,293 (2.2) (12.7) 2,770 3,576 (22.5) (11.7) 2,990 3,833 (22.0) (6.0) 2,209 2,583 (14.5) (4.8) Fiscal year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Yen 87.86 102.74 Yen – – (2) Non-consolidated financial position As of March 31, 2022 March 31, 2021 Reference: Equity Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 64,824 65,344 42,438 41,640 % 65.5 63.7 Yen 1,687.32 1,655.58 As of March 31, 2022 As of March 31, 2021 ¥42,438 million ¥41,640 million 2. Non-consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023) (Percentages indicate year-on-year changes.) Net sales Ordinary profit Profit Millions of yen % Millions of yen % Millions of yen % 47,500 0.5 2,624 (12.2) 1,824 (17.5) Basic earnings per share Yen 72.52 * Financial results reports are exempt from audit conducted by certified public accountants or an audit Fiscal year ending March 31, 2023 corporation. * Proper use of earnings forecasts, and other special matters Forward-looking statements, including the consolidated forecasts, stated in these materials are based on information currently available to the Company and certain assumptions deemed reasonable. Results may differ from the consolidated forecasts due to various factors. NIPPON RIETEC CO., LTD. (1938) As of March 31, 2021 As of March 31, 2022 (Thousands of yen) Consolidated financial statements (1) Consolidated balance sheet Assets Current assets Cash and deposits Notes receivable, accounts receivable from completed construction contracts and other Costs on construction contracts in progress Merchandise and finished goods Work in process Raw materials and supplies Other Total current assets Non-current assets Property, plant and equipment Buildings and structures Machinery, vehicles, tools, furniture and fixtures Land Leased assets Construction in progress Accumulated depreciation Total property, plant and equipment Intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 6,760,302 35,909,014 997,169 51,287 9,146 234,941 475,229 44,437,092 15,599,954 4,261,075 7,977,012 2,287,791 111,658 (10,435,926) 19,801,566 420,057 15,124,976 460,614 389,242 (15,505) 15,959,329 36,180,953 80,618,046 7,841,834 35,052,626 667,010 85,021 7,728 250,867 199,692 44,104,781 15,493,262 4,522,550 8,132,696 2,657,473 112,402 (11,048,109) 19,870,274 605,945 14,397,294 501,475 382,325 (4,425) 15,276,669 35,752,889 79,857,670 – 1 – Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other Electronically recorded obligations – operating Income taxes payable Advances received on construction contracts in progress Provision for warranties for completed construction Provision for bonuses Provision for bonuses for directors (and other officers) Other Total current liabilities Non-current liabilities Lease liabilities 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 Total net assets Total liabilities and net assets NIPPON RIETEC CO., LTD. (1938) (Thousands of yen) As of March 31, 2021 As of March 31, 2022 7,494,231 2,873,617 1,403,963 128,385 8,986 1,870,451 66,229 5,237,318 19,083,184 1,324,839 32,722 5,165,885 374,153 6,897,601 25,980,785 1,430,962 3,205,423 48,092,631 (343,434) 52,385,582 2,157,182 94,495 2,251,677 54,637,260 80,618,046 6,750,303 2,719,159 825,223 110,265 7,708 1,205,657 55,654 5,459,709 17,133,682 1,489,875 31,387 5,317,423 380,956 7,219,642 24,353,325 1,430,962 3,205,423 49,567,246 (343,500) 53,860,131 1,660,479 (16,265) 1,644,213 55,504,345 79,857,670 – 2 – NIPPON RIETEC CO., LTD. (1938) (2) Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Net sales Net sales of completed construction contracts Net sales in sideline businesses Net sales in real estate business Total net sales Cost of sales Cost of sales of completed construction contracts Cost of sales in sideline businesses Cost of sales in real estate business Total cost of sales Gross profit Gross profit on completed construction contracts Gross profit on sideline business Gross profit on real estate business Total gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Gain on sale of goods Share of profit of entities accounted for using equity method Miscellaneous income Total non-operating income Non-operating expenses Interest expenses Miscellaneous expenses Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities National subsidies Total extraordinary income Extraordinary losses Loss on sale and retirement of non-current assets 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 – 3 – 51,788,537 3,035,845 376,474 55,200,858 43,854,293 2,313,129 195,097 46,362,520 7,934,244 722,716 181,377 8,838,337 4,617,565 4,220,772 1,179 140,411 7,511 344,945 121,620 615,668 50,321 20,882 71,203 4,765,237 7,424 – – 7,424 62,607 62,607 4,710,054 1,469,245 (37,732) 1,431,513 3,278,540 – 3,278,540 50,380,940 2,461,173 389,209 53,231,323 43,363,910 1,965,154 191,646 45,520,712 7,017,029 496,018 197,562 7,710,610 4,641,973 3,068,637 574 136,127 49,213 65,831 78,745 330,491 63,841 30,611 94,452 3,304,676 40,383 184,826 27,473 252,683 18,187 18,187 3,539,172 805,014 331,004 1,136,018 2,403,153 – 2,403,153 NIPPON RIETEC CO., LTD. (1938) Consolidated statement of comprehensive income (Thousands 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 Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 3,278,540 92,353 63,873 (4,348) 151,878 3,430,419 2,403,153 (483,319) (110,761) (13,383) (607,463) 1,795,689 3,430,419 1,795,689 – – – 4 – (3) Consolidated statement of changes in equity Fiscal year ended March 31, 2021 NIPPON RIETEC CO., LTD. (1938) (Thousands of yen) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings Total shareholders’ equity 1,430,962 3,205,423 45,493,181 (343,046) 49,786,520 Restated balance 1,430,962 3,205,423 45,493,181 (343,046) 49,786,520 Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity (679,090) 3,278,540 (679,090) 3,278,540 (388) (388) Total changes during period 2,599,450 (388) 2,599,062 Balance at end of period 1,430,962 3,205,423 48,092,631 (343,434) 52,385,582 Accumulated other comprehensive income Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets 2,069,177 30,621 2,099,799 51,886,320 Restated balance 2,069,177 30,621 2,099,799 51,886,320 (679,090) 3,278,540 (388) 63,873 94,495 – 5 – Total changes during period 151,878 2,750,940 Balance at end of period 2,157,182 2,251,677 54,637,260 63,873 151,878 151,878 88,004 88,004 Fiscal year ended March 31, 2022 NIPPON RIETEC CO., LTD. (1938) (Thousands of yen) Share capital Capital surplus Treasury shares Shareholders’ equity Retained earnings Total shareholders’ equity 1,430,962 3,205,423 48,092,631 (343,434) 52,385,582 (249,452) (249,452) Restated balance 1,430,962 3,205,423 47,843,179 (343,434) 52,136,130 Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity Balance at beginning of period Cumulative effects of changes in accounting policies Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Net changes in items other than shareholders’ equity (679,086) 2,403,153 (679,086) 2,403,153 (65) (65) Total changes during period 1,724,066 (65) 1,724,001 Balance at end of period 1,430,962 3,205,423 49,567,246 (343,500) 53,860,131 Accumulated other comprehensive income Valuation difference on available-for-sale securities Remeasurements of defined benefit plans Total accumulated other comprehensive income Total net assets 2,157,182 94,495 2,251,677 54,637,260 Restated balance 2,157,182 94,495 2,251,677 54,387,808 (249,452) (679,086) 2,403,153 (65) (496,702) (110,761) (607,463) (607,463) Total changes during period (496,702) (110,761) (607,463) 1,116,537 Balance at end of period 1,660,479 (16,265) 1,644,213 55,504,345 – 6 – NIPPON RIETEC CO., LTD. (1938) (4) Consolidated statement of cash flows (Thousands 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 provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in provision for warranties for completed construction Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale and retirement of property, plant and equipment Loss (gain) on sale of investment securities National subsidies Decrease (increase) in trade receivables Decrease (increase) in costs on construction contracts in progress Decrease (increase) in other assets Increase (decrease) in trade payables Increase (decrease) in accrued expenses Increase (decrease) in advances received on construction contracts in progress Increase (decrease) in other liabilities Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from deposits for sale of property, plant and equipment Payments for retirement of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Loan advances Proceeds from collection of loans receivable Proceeds from national subsidies Other Net cash provided by (used in) investing activities – 7 – 4,710,054 1,065,818 117,194 1,779 161 3,724 (46,746) (141,591) 50,321 (344,945) 55,183 – – 362,682 (114,191) (114,436) (960,391) 9,930 (182,566) 44,077 4,516,058 205,909 (50,248) (1,602,617) 3,069,102 (13,007) 13,006 (1,288,712) 27,507 16,000 (51,805) (231,708) (1,536) – (14,200) 22,922 – 930 (1,520,603) 3,539,172 1,246,689 (664,793) (10,574) (1,277) (1,334) (8,059) (136,702) 63,841 (65,831) (22,196) (184,826) (27,473) 771,191 55,345 229,998 (897,271) (15,759) (26,014) 36,288 3,880,411 196,624 (64,096) (1,387,523) 2,625,416 (13,007) 13,007 (537,927) 168,156 – (14,292) (308,771) (1,572) 210,250 (19,417) 20,560 27,473 500 (455,039) NIPPON RIETEC CO., LTD. (1938) (Thousands of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (1,050,000) (288,874) (388) (677,943) (2,017,206) – (468,707) 7,216,003 6,747,295 – (411,194) (65) (677,584) (1,088,844) – 1,081,531 6,747,295 7,828,827 Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of finance lease liabilities Purchase of treasury shares Dividends paid 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 – 8 –