Seikitokyu Kogyo : Financial Results Presentation for the Fiscal Year Ended March 31, 2022

Financial Results Presentation for the Fiscal Year Ended March 31, 2022

June 3, 2022

Becoming a truly strong corporate group

Contents

Overview of Financial Results

1 for the Fiscal Year Ended March 31, 2022

Impact of the COVID-19 Pandemic	4
Business Environment During FY2021	5
Financial Results (Consolidated and Non-consolidated)	6
Orders Received, Net Sales and Construction Contracts
Brought Forward (Consolidated)	7
Construction Work Orders Received (Non-consolidated)	8
Product Manufacturing and Sales Results (Non-consolidated)	9
Net Sales and Profit (Loss) Results by Segment (Consolidated)	10
SG&A, Operating Income, Ordinary Profit and Net Income (Consolidated)	11
Analysis of Factors Affecting Changes in Net Income (Consolidated)	12
Consolidated Financial Position and Cash Flows	13
Major Construction Works We Received Orders for	14
Major Completed Construction Works	15
Compliance	16
Topics	17

2 Outlook for the Fiscal Year Ending March 31, 2023

Financial Results Forecast for FY2022 (Consolidated and Non-consolidated)

Net Sales and Profit (Loss) Forecast by Segment (Consolidated) Forecast of Construction Work Orders to be Received (Non-consolidated)

19 20

21

Reference:

3 Medium-term Management Plan (FY2021-2023)

Overview of the Medium-term Management Plan (FY2021-2023)23

Key Performance Indicators (consolidated)(final year of the plan) 24

Individual Strategies / Key Strategies25 Capital Policy (Investment Plans, Financial Plans and Shareholder Returns) 27

4 Reference Information

Corporate Philosophy / Company Profile	30
Main Offices, Laboratories, Consolidated Subsidiaries, etc.	31
Our Technology	32
Consolidated Performance Indicators, etc.	33

Overview of Financial

1 Results for the Fiscal Year Ended March 31, 2022

1 Impact of the COVID-19 Pandemic

Preventive measures

Impact on our business

Financial conditions

We take thorough measures to prevent the spread of COVID-19 and continue construction works and plant operations to stably and constantly operate our business and provide our services while ensuring the safety and health of executives, employees, suppliers, and other relevant parties.

We suspended some of the construction works, but neither trends of public work orders nor product delivery status showed any significant changes. Impact on orders received for our domestic business was limited.

Meanwhile, as the world economy recovers from the COVID-19 pandemic, we saw a significant impact on our profit due to a marked rise in raw material prices caused by tight crude oil and material supplies.

We ensure a necessary cash position. We observe no impact on our business activities in terms of working capital. We will continue to maintain financial soundness while paying close attention to changes in trends of construction work orders that may be influenced by COVID-19 preventive measures.

Becoming a truly strong corporate group 4

1 Business Environment During FY2021

Spread of COVID-19 continued to affect our business.

Production activities slowed down due to supply shortages of semiconductors and other parts.

In the road construction market, public investment remained strong in relation to disaster prevention and mitigation and general measures to boost national resilience.

Global demand recovery increased crude oil prices, and straight asphalt and other raw material prices were in the stratosphere.

Increased tension in Ukraine further pushed up crude oil prices.

We continued to operate in a challenging business environment, which made it especially difficult for us to make a significant profit.

Key Initiatives in the Fiscal Year Ended March 31, 2022

We promote strategies in the Medium-term Management Plan (FY2021-FY2023)

1. Expand stable earnings by further strengthening the competitiveness of our core businesses
2. Rise to the challenge of expanding business areas and developing new business fields
3. Create a virtuous cycle in the recruitment, retention, and development of human resources
4. Establish new ways of working that help improve productivity
5. Build a strong and sound management and financial base

Becoming a truly strong corporate group that can respond to any future environmental changes

Becoming a truly strong corporate group 5