Consolidated Financial Results
for the Fiscal Year Ended August 31, 2022 [JGAAP]
October 12, 2022
Company Name: GIKEN LTD.
Stock Code: 6289 (URL: https://www.giken.com)
Stock Exchange Listing: Tokyo
Representative: Shinnosuke Moribe, Representative Director and President
Contact: Mika Maeda, Executive Director
Phone: +81-88-846-2933
Scheduled date of Ordinary General Meeting of Shareholders: November 22, 2022
Scheduled date to commence dividend payments: November 24, 2022
Scheduled date to submit the Annual Securities Report: November 24, 2022
Availability of supplementary briefing material on annual results: Yes
Holding of Annual Results Briefing Session: Yes (for institutional investors and analysts)(Figures are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended August 31, 2022 (from September 1, 2021 to August 31, 2022)(1) Consolidated Results of Operations(% indicates changes from the previous corresponding term)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen %Millions of yen %Millions of yen %Year ended August 31, 2022
30,378
10.0
4,613
15.4
4,832
16.1
3,234
5.2
Year ended August 31, 2021
27,618
12.1
3,997
59.9
4,161
49.0
3,073 119.4(Note) Comprehensive income :Year ended August 31, 2022 : ¥3,503 million [1.4%]
Year ended August 31, 2021 : ¥3,455 million [129.0%]
Profitper share

Year ended August 31, 2022
Year ended August 31, 2021

Fully diluted
profit per share

Operating profit
to net sales

Yen

Yen

%

%

%

117.62111.89

8.1
8.0

9.1
8.2

15.2
14.5

Year ended August 31, 2022 : ¥ – million
Year ended August 31, 2021 : ¥ – million(2) Consolidated Financial Position
Total assets(Reference) Equity :Ordinary profit
to total assets

117.65112.22(Reference) Equity in earnings of affiliated companies :Net assets

Millions of yen
54,694
51,667

As of August 31, 2022
As of August 31, 2021

Rate of returnon equity

Equity ratio

Millions of yen
41,25639,554As of August 31, 2022 : ¥40,741 million

Net assets per share
%
74.5
75.7

Yen
1,481.41
1,426.10

As of August 31, 2021 : ¥39,108 million(3) Consolidated Cash Flows

Year ended August 31, 2022
Year ended August 31, 2021

Net cash provided by(used in) operating
activities
Millions of yen
5,923
7,768

Net cash provided by(used in) investing
activities
Millions of yen(4,216)(5,337)

Net cash provided by(used in) financing
activities
Millions of yen(1,940)(2,197)

Cash and cash
equivalents at end of
periodMillions of yen
5,598
5,666

2. Dividends

Year ended
August 31, 2021
Year ended
August 31, 2022
Year ending August
31, 2023 (Forecast)End of
1Q
Yen

Annual cash dividends per share
End of
End ofYear-end
2Q
3Q
Yen
Yen
Yen

AnnualTotal dividends Payout ratio
paid (annual) (consolidated)

Dividends to
net assets(consolidated)

Yen

Millions of yen

%

%

–

35.00

–

35.00

70.00

1,918

62.4

5.0

–

35.00

–

35.00

70.00

1,925

59.5

4.8

–

35.00

–

35.00

70.00

- 1 -

55.0

3. Earnings Forecast of Consolidated Financial Resultsfor Fiscal Year Ending August 31, 2022 (From September 1, 2021 to August 31, 2022)(% indicates changes from the previous corresponding term)
Net sales
Millions of yen
First half
Full year

15,60032,000Operating profit

Profitper share

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen% Millions of yen

%

Yen

9.7
5.3

5.9
8.4

4.7
4.5

8.3
8.2

74.54
127.26

2,950
5,000

3,000
5,050

2,050
3,500

* Notes(1) Changes in significant subsidiaries during the fiscal year ended August 31, 2022 (changes in specific subsidiaries involving
changes in the scope of consolidation): Not applicable(2) Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1): Not applicable
3) Changes in accounting estimates: Not applicable4) Restatements: Not applicable(3) Total number of issued shares (common stock)
As of
As of
28,194,728
28,115,928
1) Total number of issued shares at the end
August 31,
August 31,
sharessharesof the period (including treasury shares):
2022
2021
As of
As of
693,034
692,963
2) Total number of treasury shares at the end
August 31,
August 31,
sharessharesof the period:
2022
2021
Year ended
Year ended
27,492,033
27,386,872
August 31,
August 31,
3) Average number of shares during the period:
sharesshares2022
2021(Reference) Summary of the Non-consolidated Financial Results
Overview of the Non-consolidated Financial Results
for the Fiscal Year Ended August 31, 2022(from September 1, 2021 to August 31, 2022)(1) Non-consolidated Results of Operations(% indicates changes from the previous corresponding term)
Net sales
Ordinary profit
ProfitYear ended August 31, 2022
Year ended August 31, 2021

Millions of yen
21,417
20,480

Profit per share
Yen
121.87111.62

Year ended August 31, 2022
Year ended August 31, 2021

%
4.6
19.8

Millions of yen
4,593
3,719

%
23.5
68.5

Millions of yen

3,350
3,056

%
9.6
265.1

Fully diluted
profit per share
Yen
121.83111.28(2) Non-consolidated Financial Position

As of August 31, 2022
As of August 31, 2021

Total assets

Net assets

Millions of yen
47,90645,550Millions of yen
37,87336,296Equity ratio

Net assets per share
%
79.1
79.7

Yen
1,377.14
1,323.56(Reference) Equity: As of August 31, 2022: ¥37,873 million
As of August 31, 2021: ¥36,296 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Explanation on the appropriate use of earnings forecasts, and other special notes
The forecast figures stated above are the prospects based on information currently available and contain largely uncertain elements.
Actual results may differ from the forecast figures above, depending on various factors such as changes in business conditions.
Please refer to page 5 of the attached material for the above forecasts.

- 2 -Table of Contents of Appendix
1. Overview of Business Results, etc.

4(1) Overview of Business Results for the Current Fiscal Year

4(2) Overview of Financial Position for the Current Fiscal Year

5(3) Basic Policy on Profit Distribution, and Dividends for the Current and Next Fiscal Years

7

2. Basic Policy regarding Selection of Accounting Standards

7

3. Consolidated Financial Statements and Principal Notes

8(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income and Comprehensive Income

10(Consolidated Statements of Income)

10(Consolidated Statements of Comprehensive Income)11(3) Consolidated Statements of Changes in Net Assets

12(4) Consolidated Statements of Cash Flows

14(5) Notes to Consolidated Financial Statements

15(Notes on Going Concern Assumption)

15(Segment Information, etc.)

16(Per Share Information)

20(Material Subsequent Events)

20

- 3 -

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Current Fiscal Year
Aiming for a dramatic business growth, the Giken Group has set in the Medium-Term Management Plan (for the period from
September 2022 to August 2024) a long-term target sales of 100 billion yen for the fiscal year ending August 2031. In the
consolidated fiscal year under review, the first year of the Medium-Term Management Plan, we worked on the formulation of theLong-Term Roadmap Giken Goals 2031, which includes strategies and numerical targets to achieve the 2031 goal. Specificinitiatives by each department have become full-fledged.
With regard to the business environment surrounded the Group in the consolidated fiscal year under review, domestic public
works remained steady. In addition, private sector construction investment continued to recover, and customers' appetite for capital
investment was strong. The economic outlook, however, remains uncertain due to factors such as soaring raw material and energy
costs against the backdrop of the Russia-Ukraine conflict. Under these circumstances, we raised product prices by 5% to 10%,effective from orders received in June, in order to absorb raw material price hikes by passing them on to customers.
In our domestic activities to disseminate our methodologies, we strengthened our organizational structure to facilitate
technological proposals. We continued to promote the Implant Method*1 mainly for the strengthening of national resilience,
including recovery and reconstruction from natural disasters, prevention and mitigation of future disasters, and extension of
infrastructure service life. This resulted in the adoption of the Implant Method in areas affected by the July 2020 torrential rain,
which caused extensive damage mainly in Kumamoto. The method was used for the reconstruction of damaged roads and bridges
and construction works to prevent repeated damage. For the national Routes 210 (Kuma Village, Kumamoto) and 219 (Hita City,
Oita), which collapsed due to floods, Giken Seko Co., Ltd. in the Group built retaining walls for roads, using the resilient Implant
Structure to prevent repeated damage. The adoption of the method has increased steadily thanks to the expansion of the applicablerange: in addition to the use in infrastructure development such as building tide embankments to prepare for earthquakes, tsunamis,and storm surges, improving river revetments for flood control, maintaining freeways, and improving port facilities, impervious
walls that protect factories from flood damage were adopted in the private sector as a preventive measure against disasters.
*1 A construction method to build Implant Structures, which are resistant to earthquakes, tsunamis, floods, and other external
forces, by pressing deeply into the ground structural members with high rigidity and quality
In overseas development, we aim to increase overseas net sales ratio to 70%. For a project to develop new technologies toimprove revetment of the world heritage-listed canal in Amsterdam, the Netherlands, G-Kracht B.V., a joint venture established in
April 2021, signed a pilot construction contract with the city (orderer) in June 2022. Taking full advantage of our electricallypowered Gyro Piler and GRB system*2, which contribute to carbon neutrality, press-in works are scheduled to start in November.
In Thailand, the Implant Method was adopted in a revetment development project for the Pasak River, a major river in the country.
Our Silent Piler F301-900 was delivered to a local company, which started building a river revetment in June, featuring double
continuous walls made of Hat Sheet Piles. The section subject to development in this project extends approximately 52 km. We
therefore expect continued adoption of the method, which will boost sales of machinery, etc. We also expect that advertising thesuperiority demonstrated in the project, such as vibration- and noise-free construction works and resilient Implant Structures, will
have ripple effects on flood control across the world, especially in Southeast Asian countries, which are frequently hit by torrential
rain. We also started a full-fledged promotion of the Implant Method in other Asian countries. For example, we gained an Indianuser, which leads to a starting point for entering the gigantic market, and delivered Silent Piler F301-700 in January.
In the construction works for disaster prevention at tailings dams in Brazil, a local company that received technical guidancefrom the Giken Group started the pilot construction works in September last year and completed it in March this year, using Gyro
Piler. In Australia, J Steel Group Pty Limited, a Giken Group company, started cofferdam construction works for redevelopment
project of The Sydney Fish Market in October last year, aiming to complete them this autumn.
*2 A next-generation press-in system, where full electrification enables zero CO2 emissions during construction works
In rolling out products for underground development, we proceeded with the construction of automated bicycle parking facility
ECO Cycle in Katsushika-ku, Tokyo. Two facilities, which provides an underground parking space for 408 bicycles in total, opened
in September as the first of its kind in Katsushika-ku. It has also been decided to install ECO Cycle near Shin-Tsunashima Stationof Tokyu Shin-Yokohama Line (Kohoku-ku, Yokohama), which is scheduled to open next spring. Giken Seko received theconstruction order in June. It will be the first ECO Cycle in Yokohama, which is noted both as a tourist destination and as aresidential area. Installation in the city would help us make compelling proposals. The adoption of ECO Cycle has constantly
increased, totaling 63 facilities at 26 locations across Japan including Yokohama.
We made a full-fledged transition to BTO manufacturing in the fiscal year under review, leading to a steady and efficient BTO
manufacturing and sales so far. To cement this system, we have entered in to a business alliance agreement with Aktio Corporation,a leading company for construction machinery rental services. To accelerate the development of new users by taking advantage of- 4 -Aktio’s extensive sales networks in Japan and overseas, our maintenance and frontline technologies, as well as know-how inproposal-based sales activities, have been provided to Aktio’s staff for extended cooperation. In addition, we established a systemthat allows Nishio Rent All Co., Ltd., another leading company for construction machinery rental services, to rent Implant NAVI,a pile installation quality control system jointly developed with Giken Group company Citec Inc. With Implant NAVI, we willachieve labor saving in construction works, as well as improve productivity and reliability, thereby expanding the adoption of ourpress-in technology and Implant Method. Furthermore, Implant NAVI’s technology has been standardized thanks to the Ministryof Land, Infrastructure, Transport and Tourism’s initiative to set standards for ICT construction.
In relation to future-oriented technology development, looking to construction works on the moon surface and innovation inconstruction technologies on the earth, we have signed a new contract with the Ministry of Land, Infrastructure, Transport andTourism. We are to participate in the Project for Promoting the Development of Innovative Technologies for Autonomous
Construction, such as on the Moon, led by the national government, proceeding from the feasibility study stage to the R&D stage.
This has paved the way for the development of specific technologies in the next four years. Expansion of the press-in technology
to space has advanced the dream to go to the moon to a new phase.
Under such circumstances, for the current consolidated fiscal year, net sales were 30,378 million yen (an increase of 10.0% fromthe previous fiscal year), operating profit was 4,613 million yen (an increase of 15.4%), ordinary profit was 4,832 million yen (anincrease of 16.1%), and profit attributable to owners of parent was 3,234 million yen (an increase of 5.2%).
The performance by segment are as follows.
(i) Construction Machinery Segment
Projects related to disaster prevention, such as construction works to strengthen national resilience, made progress in Japan, andprivate sector construction investment has been on a recovery trend. Under such circumstances, sales of Silent Piler F301-900 werestrong. The product is for 900 mm-wide Hat Sheet Piles, which started to be used in main construction works of civil engineering
structures. Demand for replacement of general-purpose machines was also strong. As a result, net sales were 20,851 million yen(an increase of 9.0% from the previous fiscal year), and segment profit was 6,068 million yen (an increase of 27.1%).
(ii) Press-in Work Segment
Adoption of the Implant Method was strong in construction works related to recovery and reconstruction from natural disasters
and prevention and mitigation of future disasters. Under such circumstances, construction works made steady progress forrevetments to prepare for the Tokyo Inland Earthquake, tsunamis, and storm surges, tide embankments, and anti-seismic
reinforcement of water gates (Tokyo); measures against landslides (Nagano); retaining walls for roads at junctions (Hokkaido); andmeasures against lateral flow at private sector oil storage bases (Kagawa).
Under such circumstances, net sales for the Press-in Work segment were 9,526 million yen (an increase of 12.3% from theprevious fiscal year). Meanwhile, segment profit was 948 million yen (a decrease of 23.7%). The decrease was due to increased
costs associated with the extension of construction periods for large-scale projects, caused by unseasonable weather and otherfactors.
For the next fiscal year (ending August 2023), we expect consolidated net sales of 32,000 million yen (an increase of 5.3% fromthe previous fiscal year), operating profit of 5,000 million yen (an increase of 8.4%), ordinary profit of 5,050 million yen (anincrease of 4.5%), and profit attributable to owners of parent of 3,500 million yen (an increase of 8.2%).
(2) Overview of Financial Position for the Current Fiscal Year(i) Assets, Liabilities and Net Assets
Total assets as of the end of the current consolidated fiscal year increased by 3,027 million yen compared to the end of theprevious consolidated fiscal year to 54,694 million yen. Current assets increased by 3,210 million yen to 30,117 million yen andnon-current assets decreased by 182 million yen to 24,576 million yen from the end of the previous fiscal year.
The increase in current assets was mainly due to an increase of 2,229 million yen in cash and deposits, while there was a decreaseof 502 million yen in finished goods.
The decrease in non-current assets was mainly due to a 407 million yen decrease in property, plant and equipment, including
machinery, equipment and vehicles, while there was a 267 million yen increase in investments and other assets.
Total liabilities at the end of the current consolidated fiscal year increased by 1,315 million yen compared to the end of theprevious consolidated fiscal year to 13,438 million yen. Current liabilities increased by 1,575 million yen to 12,103 million yen
and non-current liabilities decreased by 260 million yen to 1,334 million yen from the end of the previous fiscal year.
The increase in current liabilities was mainly due to increases of 664 million yen in contract liabilities (advances received andadvances received on construction contracts in progress for the previous fiscal year) and 343 million yen in notes and accounts- 5 -payable-trade.
The decrease in non-current liabilities was mainly due to a decrease of 145 million yen in long term borrowings.
Net assets as of the end of the current consolidated fiscal year increased by 1,711 million yen compared to the end of the previous
consolidated fiscal year to 41,256 million yen. This was mainly due to an increase of 1,443 million yen in shareholders’ equity. The
equity ratio decreased to 74.5% from 75.7% at the end of the previous fiscal year due to the increase in total assets. Net assets per
share increased from 1,426.10 yen at the end of the previous fiscal year to 1,481.41 yen at the end of the current fiscal year.
(ii) Cash Flow
Cash and cash equivalents (hereinafter “cash”) at the end of the current fiscal year decreased by 68 million yen compared to theend of the previous fiscal year to 5,598 million yen. The status of each cash flow is as follows.
(Cash Flow from Operating Activities)
Net cash provided by operating activities decreased by 1,845 million yen compared to the previous fiscal year to 5,923 million
yen. This was mainly due to profit before income taxes of 4,832 million yen and a decrease in inventories of 1,128 million yen.
(Cash Flow from Investing Activities)
Net cash used in investing activities decreased by 1,120 million yen compared to the previous fiscal year to 4,216 million
yen. This was mainly due to payments into time deposits of 14,020 million yen and proceeds from withdrawal of time depositsof 11,722 million yen.
(Cash Flow from Financing Activities)
Net cash used in financing activities decreased by 256 million yen compared to the previous fiscal year to 1,940 million yen.
This was mainly due to dividends paid of 1,918 million yen.

- 6 -Year ended August 31, 2020

Year ended August 31, 2021

Year ended August 31, 2022

Shareholders’ equity ratio (%)

75.5

75.7

74.5

Market value-based
shareholders’ equity ratio (%)

209.2

251.3

163.7

54.5

18.5

24.3

230.3

720.8

407.2

Interest-bearing debt to cash
flow ratio (%)
Interest coverage ratio(times)(Note) Equity ratio: Equity divided by total assets
Market value-based shareholders’ equity ratio: market capitalization divided by total assets
Interest-bearing debt to cash flow ratio: interest-bearing debt divided by operating cash flows
Interest coverage ratio: operating cash flow divided by interest payment
1. All indicators are calculated using consolidated financial data.
2. Market capitalization is calculated by multiplying the closing share price at the end of the fiscal year by the number ofshares outstanding (after deducting treasury shares) at the end of the period.
3. Operating cash flows represent the cash flows from operating activities indicated in the consolidated statements of cash
flows. Interest-bearing debt includes all liabilities reported in the consolidated balance sheet, on which interest is paid. Theinterest payment represents the amount of interest payment indicated in the consolidated statement of cash flows.
(3) Basic Policy on Profit Distribution, and Dividends for the Current and Next Fiscal Years
The Company has regarded the stable distribution of profits to its shareholders as a top priority. Its basic policy is toappropriately distribute profits in line with its earnings as well as to enhance internal reserves for long-term business development.
For the fiscal year under review, the Company plans to pay a year-end dividend of 35 yen per share. As a result, combined with
the interim dividend of 35 yen per share already paid, the annual dividend will be 70 yen per share.
For the next fiscal year, we forecast a full-year dividend of 70 yen per share, consisting of an interim dividend of 35 yen and a
year-end dividend of 35 yen.
We will use our internal reserves to strengthen our financial position, as well as for capital investment and development
investment to achieve sustainable growth as a development-based company.
2. Basic Policy regarding Selection of Accounting Standards
The Group's policy is to adopt the Japanese standards for a while in order to secure the comparability of consolidated financial
statements with domestic companies. Carefully watching future developments concerning IFRS adoption, we will work to establish
a system to properly handle this matter.

- 7 -3. Consolidated financial statements and Principal Notes(1) Consolidated Balance Sheets(Millions of yen)
As ofAugust 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable-trade, and contract assets
Electronically recorded monetary claims-operating
Finished goods
Work in process
Costs on construction contracts in progress
Raw materials and supplies
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, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
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

- 8 -

As of
August 31, 2022

10,589
6,699
－
1,234
3,296
1,627
104
2,877
483
(4)
26,907

12,818
－
8,365
1,009
2,793
1,890
48
2,757
438
(3)
30,1176,900(3,056)
3,844
13,134(8,160)
4,973
9,720
1,206
1,421
(1,101)319
20,064275

7,604(3,369)4,235
12,956(8,789)
4,166
9,722
1,119
1,678
(1,266)412
19,656
233

1,186
1,700
1,548
(16)
4,418
24,75951,667

1,211
1,767
1,724
(17)
4,686
24,57654,694

(Millions of yen)
As ofAugust 31, 2021
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Advances received
Contract liabilities
Provision for bonuses
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provisions for maintenance of product’s function
Retirement benefit liability
Other provisions
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Deposits for subscriptions of shares
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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

- 9 -

As of
August 31, 2022

1,534
978
718
849
3,711
－
679
20
2,035
10,527

1,877
1,261
875
1,053
－
4,375
746
19
1,894
12,103

538
53
102
1
898
1,594
12,122

393
4
84
0
851
1,334
13,4388,892
010,06920,596(304)
39,253

8,958－
10,135
21,908(305)
40,696

0
18
(138)
(26)
(145)
0
435
39,544
51,667

18
8
14
3
44
－
514
41,25654,694

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
August 31, 2021
Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Gain on sales of scraps
Rental income from real estate
Insurance claim income
Foreign exchange gains
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Share issuance costs
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Impairment loss
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 10 -

Fiscal year ended
August 31, 2022
27,61817,003
10,614
6,617
3,997

30,37818,653
11,725
7,111
4,613

1
19
14
66
－
27
9
48
187

8
23
15
57
14
95
－
35
250

10
0
2
4
3
22
4,161

14
8
1
－
7
31
4,832

567
567

－
－

70
88
21
180
4,548
1,403
18
1,421
3,127
53
3,073

－
－
－
－
4,832
1,679
(88)
1,591
3,241
6
3,234

（Consolidated Statements of Comprehensive Income）（Millions of yen）
Fiscal year ended
August 31, 2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests- 11 -

Fiscal year ended
August 31, 2022

3,127

3,241

96
24
229
(21)
328
3,455

17
(18)
233
29
261
3,503

3,375
79

3,424
78

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended August 31,2021 (from September 1, 2020 to August 31, 2021)(Millions of yen)
Shareholders' equity

Balance at beginningof period
Changes during period
Issuance of newsharesDividends of surplus
Profit (loss)
attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
periodShare capital

Deposits forsubscriptionsof shares

Capital surplus

8,843

－

10,02048

048

Retainedearnings

Total
Shareholders'equity(304)

37,99919,43997(1,916)(1,916)

3,073

3,073
(0)

(0)

48

0

48

1,157

(0)

1,254

8,892

0

10,06920,596(304)

39,253

Shareacquisitionrights

Noncontrollinginterests

Total net assets

503

355

38,411

Accumulated other comprehensive income
Valuation
Total
difference Deferred
Foreign Remeasureaccumulat
ments
of
on
gains orcurrency
ed otherdefined compreheavailable- losses on translation
benefitfor-salehedges adjustment
nsive
plans
securities
incomeBalance at beginningof period
Changes during period
Issuance of newsharesDividends of surplus
Profit (loss)
attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
periodTreasury shares

(95)

5

(352)

(5)

(447)

97
(1,916)
3,073
(0)
96

13

213

(21)

302

(503)

79

(120)

96

13

213

(21)

302

(503)

79

1,133

0

18

(138)

(26)

(145)

0

435

39,544- 12 -

Fiscal year ended August 31,2022 (from September 1, 2021 to August 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodIssuance of newsharesDividends of surplus
Profit (loss)
attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders'equityTotal changes during
periodBalance at end of
periodDeposits forsubscriptionsof shares

Capital surplus

8,892

0

10,069

65

(0)

65

Retainedearnings
20,596

0

(304)

131
(1,922)(1,922)

3,234

3,234
(0)

(0)

65

(0)

65

1,312

(0)

1,443

8,958

－

10,135

21,908(305)

40,696

Accumulated other comprehensive income
Valuation
Total
difference Deferred
Foreign Remeasureaccumulat
ments
of
on
gains orcurrency
ed otherdefined compreheavailable- losses on translation
benefitfor-salehedges adjustment
nsive
plans
securities
incomeBalance at beginningof period
Changes during
periodIssuance of newsharesDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders'equityTotal changes
during period
Balance at end of
periodTotal
Shareholders'equity39,253

Treasury shares

18

(138)

(26)

(145)

Share
acquisitionrights0

Noncontrollinginterests

Total net assets

435

39,544131(1,922)
3,234
(0)
17

(10)

152

29

189

(0)

78

267

17

(10)

152

29

189

(0)

78

1,711

18

8

14

3

44

－

514

41,256- 13 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
August 31, 2021
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in Provisions for maintenance of
product’s function
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 trade receivables and contract
assetsDecrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received on
construction contracts in progress
Increase (decrease) in contract liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
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
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Purchase of treasury shares
Dividends paid
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- 14 -

Fiscal year ended
August 31, 2022

4,548
1,952
21
117
(8)

4,832
1,961
－
66
24

18

(48)

(21)
10
52
88
(45)

(30)
14
(30)
－
－

－

(1,354)

3,208(1,466)

1,128
623

(8)

－

－
(18)
8,448
21
(10)
(1,036)
346
7,768

531
(332)
7,386
32
(14)
(1,480)－5,923(5,532)
2,175(2,080)(0)99(5,337)(14,020)
11,722(1,876)－(43)(4,216)

(170)
(140)
94
(0)
(1,914)(65)(2,197)

115
(180)
129
(0)
(1,918)(85)(1,940)

107

164

342
5,324
5,666

(68)
5,666
5,598

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Changes in Accounting Policies)
・Application of the Accounting Standard for Revenue Recognition, etc.
We have applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter“Revenue Recognition Standard”) and other standards from the beginning of the consolidated fiscal year under review. We
recognize revenue when control of a promised good or service is transferred to a customer, in an amount that reflects theconsideration to which we expect to be entitled in exchange for the said good or service.
We apply the Revenue Recognition Standard, etc. in accordance with the transitional treatment provided for in the proviso toParagraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the new accounting policies
to prior fiscal years is added to retained earnings at the beginning of the consolidated fiscal year under review, with the new
accounting policies applied from the beginning balance. However, we apply the method provided for in Paragraph 86 of the
Revenue Recognition Standard, and do not apply the new accounting policies retrospectively to contracts for which substantially
all revenue amounts had been recognized prior to the beginning of the consolidated fiscal year under review in accordance with theprevious treatment.
As a result, the impact on the consolidated financial statements for the consolidated fiscal year under review is negligible. Thereis no effect on the beginning balance of retained earnings.
Due to the application of the Accounting Standard for Revenue Recognition, etc., notes and accounts receivable-trade, which
was presented under current assets in the consolidated balance sheet for the previous fiscal year, has been included in notes andaccounts receivable - trade, and contract assets from the consolidated fiscal year under review, and advances received and advances
received on construction contracts in progress, which were presented under current liabilities, have been included in contract
liabilities from the consolidated fiscal year under review. In addition, decrease (increase) in trade receivables, which was presented
under cash flows from operating activities in the consolidated statements of cash flows for the previous fiscal year, has been
included in decrease (increase) in trade receivables and contract assets from the consolidated fiscal year under review, and increase(decrease) in advances received on construction contracts in progress has been included in increase (decrease) in contract liabilities
from the consolidated fiscal year under review. In accordance with the transitional treatment set forth in Paragraph 89-2 of the
Revenue Recognition Standard, figures for the previous fiscal year have not been reclassified based on the new presentation method.
In accordance with the transitional treatment set forth in Paragraph 89-3 of the Revenue Recognition Standard, information on the
disaggregation of revenue from contracts with customers for the previous fiscal year is not presented.
・Application of the Accounting Standard for Fair Value Measurement, etc.
We have applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter “Fair
Value Measurement Standard”) and other standards from the beginning of the consolidated fiscal year under review, and are tohenceforth apply the new accounting policies stipulated by the Fair Value Measurement Standard, etc. in accordance with thetransitional treatment provided for in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). This does not affect the consolidated financial
statements.

- 15 -

(Segment Information, etc.)[Segment Information]
1. Overview of reportable segments
The Company’s reportable segments are the units of the Company for which discrete financial information is available andfor which the Board of Directors regularly conducts a review to determine allocation of management resources and assess
performance.
The Company engages in business activities as a company coping with social problems caused by construction works home
and abroad, by developing machines and new methodologies which make maximum use of the superiority of the Press-in
Method.
Therefore, the Company consists of two reportable segments: “Construction Machinery Segment” and “Press-in Work
Segment.”
The main products and services of each reportable segment are as follows:
Construction Machinery Segment･･･Development, manufacture, sale, rental and maintenance services of hydraulicpress-in and extraction machines and auxiliary equipment
Press-in Work Segment･････Press-in works and foundation works, and underground development
2. Method of calculating net sales, profit or loss, assets, liabilities and other items by reportable segment
The accounting methods applied for reportable segments are generally the same as those for consolidated financial
statements preparation.
Segment income of reportable segments represents figures based on operating profit.
Internal sales and transfers between segments are based on prevailing market prices.
3. Information on the amounts of net sales, profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)（Millions of yen）
PostedReportable segments
amount to the
Adjusted
consolidated
amountTotal
Construction
financial
Press-in Work
(Notes 1, 3)
statements
Machinery(Notes 2)
Net sales(1) Net sales to externalcustomers(2) Intersegment net sales andtransfer

19,1348,484

27,618－27,618

963

179

1,142

(1,142)－

20,097

8,663

28,761(1,142)

27,618Segment profit

4,775

1,243

6,019

(2,022)

3,997

Segment assets

43,4296,953

50,383

1,283

51,667

Depreciation

1,607

136

1,743

208

1,952

Increased amount in property,
plant and equipment

2,261

22

2,283

10

2,294

Total

Other items(Note) 1. The segment income adjustment of negative 2,022 million yen includes inter-segment transaction eliminationsof negative 66 million yen and corporate expenses not allocated to any reportable segment of negative 2,089
million yen. The corporate expenses are mainly general administrative expenses not belonging to any
reportable segment.
2. Segment income is adjusted with operating profit presented in the consolidated statement of income.
3. The segment assets adjustment of 1,283 million yen includes inter-segment credit elimination of negative 843
million yen and corporate assets not allocated to any reportable segment of 2,127 million yen.

- 16 -

Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)（Millions of yen）
Postedamount to the
Adjusted
consolidated
amountfinancial(Notes 1, 3)
statements(Notes 2)

Reportable segments
Construction
Machinery

Total
Press-in Work

Net sales
Japan
Other regions

18,865
1,986

5,547
3,978

24,413
5,965－－

24,413
5,965

Revenue from contracts
with customers

20,851

9,526

30,378－30,37820,851

9,526

30,378－30,378

842

129

972

(972)

－

21,694

9,656

31,351(972)

30,378Segment profit

6,068

948

7,017

(2,403)

4,613

Segment assets

45,5197,811

53,3301,364

54,694

Depreciation

1,573

109

1,683

278

1,961

Increased amount in property,
plant and equipment

1,827

99

1,927

3

1,930

(1) Net sales to externalcustomers(2) Intersegment net sales andtransfer
Total

Other items(Note) 1. The segment income adjustment of negative 2,403 million yen includes inter-segment transaction eliminationsof negative 64 million yen and corporate expenses not allocated to any reportable segment of negative 2,468
million yen. The corporate expenses are mainly general administrative expenses not belonging to any
reportable segment.
2. Segment income is adjusted with operating profit presented in the consolidated statement of income.
3. The segment assets adjustment of 1,364 million yen includes inter-segment credit elimination of negative 732
million yen and corporate assets not allocated to any reportable segment of 2,096 million yen.

- 17 -

[Relevant Information]
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)
1. Information by product and service
Information by product and service is omitted here since the same information is described as segment information.
2. Information by region(1) Net sales(Millions of yen)

Japan

Other
22,158

Total
5,460

27,618(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, South America, and Oceania(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant and equipment
located in Japan excesses 90% of the amount of property, plant and equipment stated in the consolidated balance
sheet.
3. Information by major customer
Information by major customer is omitted because there is no external customer accounting for 10% or more of
net sales stated in the consolidated statement of income.
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)
1. Information by product and service
Information by product and service is omitted here since the same information is described as segment information.
2. Information by region(1) Net sales(Millions of yen)

Japan

Other
24,413

Total
5,965

30,378(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, South America and Oceania(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant and equipment
located in Japan excesses 90% of the amount of property, plant and equipment stated in the consolidated balance
sheet.
3. Information by major customer
Information by major customer is omitted because there is no external customer accounting for 10% or more of
net sales stated in the consolidated statement of income.

- 18 -

[Information on Impairment Loss for Fixed Assets by Reportable Segment]
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)(Millions of yen)

Construction
Machinery
Impairment
lossesPress-in Work－

Corporate andelimination

－

Total
21

21

(Note) The amount of "Corporate and elimination" represents an impairment loss on corporate assets, which do notbelong to any reportable segment.
Fiscal year ended August 31, 2022 (from September 1, 2021 to August 31, 2022)
There is no relevant information.
[Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment]
There is no relevant information.
[Information on Gain on Negative Goodwill by Reportable Segment]
There is no relevant information.

- 19 -

(Per Share Information)
Fiscal year ended August 31, 2021
(from September 1, 2020
to August 31, 2021)

Fiscal year ended August 31, 2022
(from September 1, 2021
to August 31, 2022)

1,426.10Yen

1,481.41Yen

Profit per share

112.22Yen

117.65Yen

Fully diluted profit per share

111.89Yen

117.62Yen

Net assets per share(Note) The basis of calculation of profit per share and fully diluted profit per share is as follows:
Fiscal year ended August 31, 2021
(from September 1, 2020
to August 31, 2021)

Fiscal year ended August 31, 2022
(from September 1, 2021
to August 31, 2022)

Profit per share
Profit attributable to owners of parent (millionsof yen)

3,073

3,234

Amount not attributable to common shareholders(millions of yen)－－

Profit attributable to owners of parent concerningcommon shares (millions of yen)

3,073

3,234

27,386,872

27,492,033－－

82,293

8,028

Average number of common shares during the
fiscal year (shares)

Fully diluted profit per share
Profit attributable to owners of parent - deferred(millions of yen)
Increase in common stock (shares)－

Overview of potential shares not included incomputation of diluted profit per share because of
their anti-dilutive effect(Material Subsequent Events)
There is no relevant information.

- 20 -－