METAWATER : Outline of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

TRANSLATION - FOR REFERENCE ONLY

Outline of Financial Results

for the First Quarter

of the Fiscal Year Ending March 2023

July 27, 2022

METAWATER Co., Ltd.

Segment Information and Acronyms

Segment Information

• Plant Engineering Business(PE business): Domestic EPC business / Overseas business

The main work in this segment is different types of engineering that focus on the design and construction of machinery facilities used in the purification processes in purification plans, sewage processes in sewage plants, sludge treatment processes, and processes for creating fuel in Japan and overseas as well as the design and construction of electrical facilities for the operation, monitoring, and control of these.

• Service Solution Business(SS business): Domestic O&M business / Domestic PPP business

The main work in this segment includes a range of services such as repair work, operation, and management (maintenance/inspection) of mechanical and electrical equipment for water treatment plants, sewage plants, refuse processing facilities, and recycling facilities; it also includes the design, construction, operation, maintenance and management of facilities and equipment through public-private partnerships.

Acronyms

EPC	Engineering, Procurement and Construction
O&M	Operation and Maintenance

1. Public-PrivatePartnership (Method through which the private sector participates in the provision of public services)

PFI	Private Finance Initiative (Method of public works which utilizes the private sector for the design and
	construction, operation and maintenance, management, and capital procurement of public facilities)
DBO	Design, Build and Operate (Method of public works which utilizes the private sector for the design and
	construction, and operation and maintenance management of public facilities)
Concession	An approach of granting business operation rights to private companies for a long term while leaving
	the authority of public facilities and authorization of business management to the public.

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目Contents次

1. Highlights of the First Quarter of the Fiscal Year Ending March 2023

1. Outline of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

3	Copyright © METAWATER. CO., LTD. All Rights Reserved.

目Contents次

1. Highlights of the First Quarter of the Fiscal Year Ending March 2023

1. Outline of Financial Results for the First Quarter of the Fiscal Year Ending March 2023

4	Copyright © METAWATER. CO., LTD. All Rights Reserved.

Financial Highlights for FYE 3/'23 (consolidated)

＊Orders Received

Orders were generally on par with the previous year.

Sales breakdown by quarter for FYE 3/'23

(Reference) Order backlog: JPY 191.0bn end 1Q FYE3/'22 ⇒ JPY 204.3bn end 1Q FYE3/'23 (+JPY 13.2bn)	1Q
	(Actual)

＊Net Sales & Profits

The Group's business is dominated by domestic public works projects, and sales and profits tend to be significantly skewed toward 4Q, with sales in the 1Q usually accounting for about 10% of the year's total.

In 1Q, both net sales and income increased from the previous year due to steady performance of the EPC business and the North American subsidiary in the overseas business, as well as the consolidation of K.K. Mizumusubi Management Miyagi.

Ordinary income includes foreign exchange gain of 664 million yen due to the impact of yen depreciation.

2Q

(Forecast)

4Q

(Forecast) 3Q (Forecast)

					(Billion Yen)
	Orders	Net Sales	Operating	Ordinary	Net Income for	Dividend Per
	Received	Income	Income	the quarter	Share (Yen)
1Q FYE3/'23	38.2	19.9	-1.9	-1.1	-1.0		-
Results	YoY: +0.2	YoY: +4.0	YoY: +0.9	YoY: +1.6	YoY: +1.1
	+0.6%	+25.0%
1Q FYE3/'22	38.0	15.9	-2.8	-2.7	-2.1		-
Results
FYE3/'23	140.0	149.0	9.3	9.3	6.3		End of 2Q	Year-end
Forecast*							20	20
YoY: -12.3	YoY: +13.4	YoY: +1.2	YoY: +0.5	YoY: +0.１
(As of April 27, '22)	-8.1%	+9.9%	+14.2%	+6.3%	+0.9%

* Figures are rounded to the nearest 10 million yen （same applies to the results hereafter）

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