大豊建設（1822） – [Updated]Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Note: This document has been translated from 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 13, 2022 Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP) Company name: DAIHO CORPORATION Tokyo Stock Exchange Listing: 1822 Securities code: https://www.daiho.co.jp URL: Kenichi Osumi, CEO Representative: Yoshinori Umehara, General Manager, Accounting Department, Administration Division Inquiries: Telephone: +81-3-3297-7000 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 29, 2022 June 30, 2022 June 29, 2022 None Yes (for analysts and institutional investors) (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 % 156,520 161,697 (3.2) (0.7) 8,857 9,066 (2.3) 6.5 9,316 9,420 (1.1) 9.8 5,987 6,262 (4.4) (5.8) Note: Comprehensive income For the fiscal year ended March 31, 2022: For the fiscal year ended March 31, 2021: ¥5,348 million ¥7,283 million [(26.6)%] [38.0%] Basic earnings per share Diluted earnings 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 346.28 362.23 Yen 326.36 326.37 % 8.2 9.1 % 5.5 5.8 % 5.7 5.6 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: ¥– million ¥– million (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 169,621 170,899 74,493 74,130 % 43.3 42.8 Yen 4,204.58 4,061.98 As of March 31, 2022: As of March 31, 2021: ¥73,381 million ¥73,170 million – 1 – (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 Millions of yen Millions of yen Millions of yen Millions of yen 5,537 (4,357) (2,194) (8,892) (11,971) 11,054 19,751 28,203 Fiscal year ended March 31, 2022 March 31, 2021 2. Cash dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecast) 2023) Annual dividends per share 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 % – – – – – – – – – 110.00 110.00 243.00 243.00 1,993 4,263 230.00 230.00 30.4 70.2 70.4 3. Consolidated Financial Forecast for the Year Ending March 31, 2023 (from April 1, 2022 to March 31, Net sales Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % (Percentages indicate year-on-year changes.) Basic earnings per share Profit attributable to owners of parent Six months ending September 30, 2022 Full year 74,000 165,000 8.7 5.4 2,400 28.5 2,200 14.7 1,500 19.0 8,600 (2.9) 8,600 (7.7) 5,700 (4.8) 326.60 % 2.8 5.9 Yen 85.95 – 2 – 4. Others (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 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 18,433,163 shares 18,433,163 shares 980,528 shares 419,521 shares 17,291,830 shares 17,288,114 shares (Note) The Company has introduced a share distribution trust system for delivering shares to the Company’s Directors, etc. via a trust. The Company’s shares that are owned by the trust (93,800 shares) are included in “number of treasury shares at the end of the period,” and in calculating and presenting “average number of shares outstanding during the period,” the Company has considered the shares owned by said trust to be included. [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 % 118,453 122,284 (3.1) 1.1 5,909 6,349 (6.9) 5.8 12,477 6,806 83.3 9.1 10,365 120.9 4,693 (9.7) Fiscal year ended March 31, 2022 March 31, 2021 Basic earnings per share Diluted earnings per share Yen Yen 599.47 271.46 564.95 244.60 (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 138,602 136,680 63,013 58,396 % 45.3 42.5 Yen 3,595.28 3,224.68 As of March 31, 2022: As of March 31, 2021: ¥62,747 million ¥58,088 million – 3 – 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.) Basic earnings per share Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % 55,000 125,000 8.5 5.5 1,300 121.0 1,100 30.5 700 7.2 6,200 4.9 6,300 (49.5) 4,200 (59.5) 240.65 Yen 40.11 * Financial results reports are exempt from audit conducted by certified public accountants or an audit * 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 materially from the consolidated forecasts due to various factors. Six months ending September 30, 2022 Full year corporation. – 4 – 3. Consolidated financial statements and significant notes thereto (1) Consolidated balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen) Assets Current assets Cash and deposits Notes receivable, accounts receivable from completed construction contracts and other Electronically recorded monetary claims – operating Costs on construction contracts in progress Short-term loans receivable Advances paid Income taxes refund receivable 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 Leased assets Construction in progress Accumulated depreciation Total property, plant and equipment Intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 28,213 89,097 1,974 3,081 2 16,506 50 2,033 (4) 140,955 10,881 7,559 8,868 188 11 (10,325) 17,184 189 8,904 2,236 906 607 (85) 12,569 29,944 170,899 19,780 100,889 301 2,303 2 13,367 525 3,003 (6) 140,167 10,880 8,053 8,662 145 214 (10,804) 17,151 231 8,044 2,659 850 623 (106) 12,071 29,454 169,621 – 5 – As of March 31, 2021 As of March 31, 2022 (Millions of yen) 32,882 11,376 7,950 – 2,198 8,344 16,415 2,022 806 290 959 83,245 3,196 3,150 21 125 6,179 850 13,523 96,769 10,549 9,564 52,765 (1,288) 71,590 1,641 (22) (37) 1,580 307 651 74,130 170,899 34,991 10,409 2,950 3,150 558 9,959 21,174 687 821 855 888 86,445 1,463 – 8 162 6,267 781 8,683 95,128 10,549 9,059 56,753 (3,725) 72,636 747 (31) 28 744 266 845 74,493 169,621 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other Electronically recorded obligations – operating Short-term borrowings Current portion of long-term borrowings Income taxes payable Advances received on construction contracts in progress Deposits received Provision for warranties for completed construction Provision for bonuses Provision for loss on construction contracts Other Total current liabilities Non-current liabilities Convertible-bond-type bonds with share acquisition rights Long-term borrowings Deferred tax liabilities Provision for share awards 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 Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets – 6 – (2) Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 161,697 146,600 15,097 6,031 9,066 54 110 347 98 610 67 68 68 51 256 9,420 12 179 – 191 31 48 13 3 2 99 9,513 3,233 (105) 3,128 6,385 122 6,262 156,520 141,329 15,191 6,333 8,857 66 124 532 88 812 52 72 194 33 352 9,316 334 221 18 573 178 – 18 297 0 494 9,395 2,782 429 3,211 6,184 196 5,987 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Guarantee commission Commission expenses 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 and retirement of non-current assets Loss on sale of investment securities Loss on litigation Impairment losses 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 – 7 – Consolidated statement of comprehensive income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 6,385 814 (3) 86 898 7,283 7,160 122 6,184 (893) (8) 66 (836) 5,348 5,151 196 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 – 8 – (3) Consolidated statement 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 9,039 7,998 48,188 (1,825) 63,401 Changes during period Issuance of new shares 1,509 1,509 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 1,509 10,549 56 1,566 9,564 (1,256) 1,792 536 (1,288) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 826 (19) (124) 682 372 532 64,988 Changes during period Issuance of new shares 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 814 814 1,641 (3) (3) (22) 86 86 (37) 1,580 (64) (64) 307 119 119 651 3,019 (1,685) 6,262 (1,256) 1,849 – 8,188 71,590 3,019 (1,685) 6,262 (1,256) 1,849 953 9,142 74,130 (1,685) 6,262 4,576 52,765 898 898 – 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 10,549 9,564 52,765 (1,288) 71,590 Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Transfer of the negative balance of other capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period – 10,549 (511) 6 (505) 9,059 – (4,755) 2,318 (2,437) (3,725) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasure-ments of defined benefit plans Total accumulated other comprehen-sive income Share acquisition rights Non-controlling interests Total net assets Balance at beginning of period 1,641 (22) (37) 1,580 307 651 74,130 Changes during period Issuance of new shares Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Transfer of the negative balance of other capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (893) (893) 747 (8) (8) (31) 66 66 28 193 193 845 (835) (835) 744 (41) (41) 266 (1,993) 5,987 (4,755) 1,806 – – 1,045 72,636 – (1,993) 5,987 (4,755) 1,806 – (683) 362 74,493 (1,993) 5,987 (6) 3,988 56,753 – 10 – (4) Consolidated statement of cash flows Cash flows from operating activities (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Profit before income taxes Depreciation Impairment losses Loss on litigation Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for warranties for completed construction Increase (decrease) in provision for bonuses Increase (decrease) in retirement benefit liability Increase (decrease) in provision for loss on construction contracts Increase (decrease) in provision for share awards Loss (gain) on sale and retirement of non-current assets Interest and dividend income Interest expenses Foreign exchange losses (gains) Loss (gain) on sale of investment securities Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in advances received on construction contracts in progress Decrease (increase) in other assets Increase (decrease) in other liabilities Other loss (gain) Subtotal Interest and dividends received Interest paid Income taxes paid Payments for loss on litigation Net cash provided by (used in) operating activities 9,513 1,038 0 13 (50) 239 4 221 (71) 73 18 (164) 67 (122) (130) (9,335) 1,605 (5,258) 1,008 (4,309) 3,510 100 (2,028) 160 (66) (2,392) (30) (4,357) 9,395 1,432 297 18 23 (1,334) 15 153 564 69 (156) (191) 52 (189) (221) (10,118) 781 1,139 1,615 2,150 4,577 194 10,270 188 (52) (4,859) (9) 5,537 – 11 – (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 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 Payments for retirement of property, plant and equipment Purchase of intangible assets Purchase of securities Proceeds from sale of securities Purchase of investment securities Proceeds from sale of investment securities Decrease (increase) in short-term loans receivable Long-term loan advances Proceeds from collection of long-term loans receivable Payments for asset retirement obligations Purchase of membership Net cash provided by (used in) investing activities Cash flows from financing activities Increase (decrease) in short-term borrowings Proceeds from issuance of bonds Purchase of treasury shares Dividends paid Dividends paid to non-controlling interests Repayments of lease liabilities 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 (10) 20 (7,270) 22 (29) (111) (500) 500 (1,297) 429 14 (670) 70 (57) (5) (8,892) 6,100 7,973 (1,256) (1,680) (2) (8) (70) 11,054 123 (2,071) 30,274 28,203 (10) 10 (2,072) 610 (12) (100) – – (657) 459 3 (605) 180 – – (2,194) (5,000) – (4,769) (1,995) (2) (4) (198) (11,971) 176 (8,451) 28,203 19,751 – 12 – 4. Non-consolidated financial statements and significant notes thereto (1) Non-consolidated balance sheet As of March 31, 2021 As of March 31, 2022 (Millions of yen) 19,121 2,842 1,969 63,401 2,084 919 15,755 – 1,481 (17) 107,557 9,888 (3,254) 6,633 5,660 (4,870) 790 1,247 (1,104) 143 8,118 166 (161) 4 11 15,701 75 0 54 130 7,705 2,138 2,571 14 612 411 (165) 13,290 29,122 136,680 Assets Current assets Cash and deposits Notes receivable – trade Electronically recorded monetary claims – operating Accounts receivable from completed construction contracts Costs on construction contracts in progress Short-term loans receivable Advances paid Income taxes refund receivable Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and 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 Intangible assets Software Leased assets 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 prepaid expenses Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 13 – 15,033 195 276 75,313 1,722 856 13,357 466 2,684 (21) 109,885 9,802 (3,243) 6,559 6,174 (5,401) 773 1,301 (1,118) 183 7,889 128 (126) 1 214 15,621 121 – 53 175 7,016 2,138 3,008 10 587 438 (278) 12,920 28,717 138,602 As of March 31, 2021 As of March 31, 2022 (Millions of yen) Liabilities Current liabilities long-term borrowings from Notes payable – trade Electronically recorded obligations – operating Accounts payable for construction contracts Short-term borrowings Lease liabilities Current portion of subsidiaries and associates Income taxes payable Advances received on construction contracts in progress Deposits received Provision for warranties for completed construction Provision for bonuses Provision for loss on construction contracts Other Total current liabilities Non-current liabilities Convertible-bond-type bonds with share acquisition rights Long-term borrowings Lease liabilities Provision for retirement benefits Provision for share awards 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 Share acquisition rights Total net assets Total liabilities and net assets – 14 – 1,260 7,828 24,321 7,650 3 – 1,574 6,251 14,974 1,950 563 55 731 67,167 3,196 3,150 1 4,423 125 220 11,117 78,284 10,549 9,059 505 9,564 1,105 121 6,915 29,733 37,875 (1,288) 56,700 1,387 1,387 307 58,396 136,680 930 7,813 26,938 2,650 1 3,150 – 7,546 17,483 642 574 744 695 69,169 1,463 – – 4,553 162 241 6,419 75,588 10,549 9,059 – 9,059 1,105 118 6,915 38,102 46,241 (3,725) 62,124 622 622 266 63,013 138,602 (2) Non-consolidated statement of income (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 122,284 122,284 112,020 112,020 10,264 10,264 157 1,570 92 88 73 263 55 37 41 147 22 110 63 (72) 35 12 89 222 399 47 456 3,915 6,349 71 294 345 62 773 67 48 68 103 29 316 6,806 118,453 118,453 108,371 108,371 10,082 10,082 144 1,690 102 95 69 283 57 16 54 159 25 170 67 – 46 16 124 248 385 53 360 4,172 5,909 89 6,309 532 59 6,991 53 55 194 117 4 424 12,477 Net sales Cost of sales Gross profit Net sales of completed construction contracts Total net sales Cost of sales of completed construction contracts Total cost of sales Gross profit on completed construction contracts Total gross profit Selling, general and administrative expenses Remuneration for directors (and other officers) Employees’ salaries and allowances Provision for bonuses Retirement benefit expenses Provision for share awards Legal welfare expenses Welfare expenses Repair and maintenance expenses Stationery expenses Communication and transportation expenses Power utilities expenses Research study expenses Advertising expenses Provision of allowance for doubtful accounts Entertainment expenses Donations Rent expenses on land and buildings Depreciation Taxes and dues Insurance expenses Miscellaneous expenses Total selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Guarantee commission Commission expenses Provision of allowance for doubtful accounts Other Total non-operating expenses Ordinary profit – 15 – (Millions of yen) Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 6 174 180 33 48 8 0 0 91 6,894 2,304 (102) 2,201 4,693 334 221 555 177 – 10 297 0 485 12,547 1,817 363 2,181 10,365 Extraordinary income Gain on sale of non-current assets Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on sale and retirement of non-current assets Loss on sale of investment securities Loss on litigation Impairment losses Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit – 16 – (3) Non-consolidated statement of changes in equity Fiscal year ended March 31, 2021 (Millions of yen) Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other capital surplus Legal retained earnings 9,039 7,549 448 1,105 124 6,915 26,722 (1,825) 50,080 Other retained earnings Reserve for tax purpose reduction entry of non-current assets General reserve Retained earnings brought forward Treasury shares Total shareholders’ equity (3) 3 – – (1,685) 4,693 (1,685) 4,693 (1,256) (1,256) 1,792 1,849 – (3) – 3,010 536 6,619 1,105 121 6,915 29,733 (1,288) 56,700 56 56 505 1,509 10,549 1,509 9,059 1,509 1,509 3,019 Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Share acquisition rights Total net assets 543 543 372 50,996 (64) (64) 307 – 3,019 (1,685) 4,693 (1,256) 1,849 779 7,399 58,396 844 844 1,387 844 844 1,387 – 17 – Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Issuance of new shares 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 Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Issuance of new shares 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 Fiscal year ended March 31, 2022 (Millions of yen) Shareholders’ equity Capital surplus Retained earnings Share capital Legal capital surplus Other capital surplus Legal retained earnings Other retained earnings Reserve for tax purpose reduction entry of non-current assets General reserve Retained earnings brought forward Treasury shares Total shareholders’ equity 10,549 9,059 505 1,105 121 6,915 29,733 (1,288) 56,700 (511) 6 (3) (1,993) 10,365 (1,993) 10,365 (4,755) (4,755) 2,318 1,806 – – – – Balance at end of period 10,549 9,059 – 1,105 118 6,915 38,102 (3,725) 62,124 – – (505) – (3) – 8,369 (2,437) 5,424 Valuation and translation adjustments Valuation difference on available-for-sale securities Total valuation and translation adjustments Share acquisition rights Total net assets 1,387 1,387 307 58,396 3 (6) – – – (1,993) 10,365 (4,755) 1,806 (806) 4,617 63,013 (765) (765) 622 (41) (41) 266 (765) (765) 622 – 18 – Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Issuance of new shares Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Transfer of the negative balance of other capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at beginning of period Changes during period Reversal of reserve for tax purpose reduction entry of non-current assets Issuance of new shares Dividends of surplus Profit Purchase of treasury shares Disposal of treasury shares Transfer of the negative balance of other capital surplus Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 5. Others (1) Non-consolidated net sales of completed construction contracts and status of orders received Net sales of completed construction contracts by segment Segment Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Amount Amount Composition ratio % Composition ratio % (Millions of yen) YoY change Amount Composition ratio Civil Engineering Building construction Public Private Total 65,109 57,175 68,974 53,310 53.2 46.8 56.4 43.6 122,284 100.0 66,086 52,366 62,632 55,821 118,453 55.8 44.2 52.9 47.1 100.0 977 (4,808) (6,342) 2,510 (3,831) Status of orders received Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) YoY change Amount Composition ratio Amount Composition ratio Amount Composition ratio Segment (Orders received) Civil Engineering Building construction Public Private (Backlog of orders received) Civil Engineering Building construction Total 63,604 62,661 57,146 69,119 151,687 79,217 230,904 % 50.4 49.6 45.3 54.7 65.7 34.3 100.0 58,608 54,402 56,658 56,352 144,208 81,253 225,461 % 51.9 48.1 50.1 49.9 64.0 36.0 100.0 (4,996) (8,259) (488) (12,767) (13,255) (7,478) 2,035 (5,442) Total 126,266 100.0 113,010 100.0 % 1.5 (8.4) (9.2) 4.7 (3.1) % (7.9) (13.2) (0.9) (18.5) (10.5) (4.9) 2.6 (2.4) 19 (2) Overview of financial results Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 (Millions of yen) Change Consolidated DAIHO CORPO-RATION Morimoto Corporation Consolidated Morimoto Corporation Consolidated DAIHO CORPO-RATION DAIHO CORPO-RATION Morimoto Corporation Orders received 164,447 126,266 37,264 148,367 113,010 34,717 (16,079) (13,255) (2,546) Civil engineering 85,319 63,604 21,714 79,423 58,608 20,815 (5,896) (4,996) (899) 78,544 62,661 15,549 68,424 54,402 13,902 (10,120) (8,259) (1,646) Others 583 – – 520 – – (63) – – Net sales 161,697 122,284 35,334 156,520 118,453 34,157 (5,177) (3,831) (1,177) Civil Engineering 86,090 65,109 20,980 86,324 66,086 20,237 234 977 (743) 72,077 57,175 14,354 66,513 52,366 13,920 (5,564) (4,808) (433) Other 3,529 – – 3,682 – – 152 – Gross profit 15,097 10,264 3,836 15,191 10,082 4,066 93 (181) Civil Engineering 8,106 5,566 2,531 8,769 5,881 2,871 663 314 Building construction Building construction Building construction 6,053 4,697 1,304 5,392 4,200 1,194 (661) (496) (110) Other 937 – – 1,029 – – 91 – Operating profit 9,066 6,349 2,416 8,857 5,909 2,555 (208) (439) Ordinary profit 9,420 6,806 2,435 9,316 12,477 2,546 (104) 5,671 – 230 340 – 139 111 6,262 4,693 1,645 5,987 10,365 1,675 (274) 5,672 29 Profit attributable to owners of parent or profit 20