Consolidated Financial Results
for the Fiscal Year Ended August 31, 2021 [JGAAP]
October 11, 2021
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 24, 2021
Scheduled date to commence dividend payments: November 25, 2021
Scheduled date to submit the Annual Securities Report: November 25, 2021
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, 2021 (from September 1, 2020 to August 31, 2021)(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 %27,618
12.1
3,997
59.9
4,161
49.0
3,073 119.4
Year ended August 31, 2021
24,640 (24.0)
2,498 (62.6)
2,792 (58.7)
1,400 (69.4)
Year ended August 31, 2020
(Note) Comprehensive income : Year ended August 31, 2021 : ¥3,455 million [129.0%]
Year ended August 31, 2020 : ¥1,508 million [(63.9)%]
Profit per share

Fully diluted
profit per share

Yen

Yen

Rate of returnon equity

Ordinary profit
to total assets%

112.22111.89
8.0
51.28
50.99
3.7
(Reference) Equity in earnings of affiliated companies : Year ended August 31, 2021 : ¥ – million
Year ended August 31, 2020 : ¥ – million
Year ended August 31, 2021
Year ended August 31, 2020

Operating profit
to net sales

%

%

8.2
5.5

14.5
10.1

(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Millions of yen
Millions of yen%
Yen
As of August 31, 2021
51,66739,55475.7
1,426.10
As of August 31, 2020
49,70838,41175.5
1,372.25(Reference) Equity : As of August 31, 2021 : ¥39,108 million
As of August 31, 2020 : ¥37,551 million(3) Consolidated Cash Flows

Year ended August 31, 2021
Year ended August 31, 2020

Net cash provided by(used in) operating
activities
Millions of yen
7,768
3,263

Net cash provided by(used in) investing
activities
Millions of yen(5,337)(1,892)

Net cash provided by(used in) financing
activities
Millions of yen(2,197)(953)

Cash and cash
equivalents at end of
periodMillions of yen
5,666
5,324

2. Dividends
End of
1Q
Yen
Year ended
August 31, 2020
Year ended
August 31, 2021
Year ending August
31, 2022 (Forecast)

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

AnnualTotal dividends
paid (annual)

Payout ratio(consolidated)

Dividends to
net assets(consolidated)

Yen

Millions of yen

%

%

–

35.00

–

35.00

70.00

1,914

136.5

5.1

–

35.00

–

35.00

70.00

1,918

62.4

5.0

–

35.00

–

35.00

70.00

60.0

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)
Profit attributable to
Net sales
Operating profit
Ordinary profit
Profit per shareowners of parent% Millions of yen% Millions of yen%
Yen% Millions of yen
Millions of yen
2,270
4.6
2,300
3.6
1,500
3.7
54.70
5.3
First half
14,000
4,500
12.6
4,550
9.3
3,200
4.1
116.69
8.6
Full year
30,000* Notes(1) Changes in significant subsidiaries during the fiscal year ended August 31, 2021 (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: Not applicable
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
1) Total number of issued shares at the end
28,115,928
August 31,
August 31,
Sharesof the period (including treasury shares):
2021
2020
As of
As of
2) Total number of treasury shares at the end
692,963
August 31,
August 31,
Sharesof the period:
2021
2020
Year ended
Year ended
27,386,872
August 31,
August 31,
3) Average number of shares during the period:
shares2021
2020

28,058,028
shares692,915
shares27,319, 278
shares(Reference) Summary of the Non-consolidated Financial Results
Overview of the Non-consolidated Financial Results
for the Fiscal Year Ended August 31, 2021(from September 1, 2020 to August 31, 2021)(1) Non-consolidated Results of Operations

Year ended August 31, 2021
Year ended August 31, 2020

Net sales
Millions of yen
20,48017,096
Profit per share

Year ended August 31, 2021
Year ended August 31, 2020

Yen
111.62
30.65

%
19.8
(32.2)(% indicates changes from the previous corresponding term)
Ordinary profit
ProfitMillions of yen%
Millions of yen
%
3,719
68.5
3,056
265.1
2,207
(67.4)
837(82.6)

Fully diluted profit
per shareYen
111.2830.47(2) Non-consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Millions of yen
Millions of yen%
Yen
As of August 31, 2021
45,55036,29679.7
1,323.56
As of August 31, 2020
44,58635,46678.4
1,277.63(Reference) Equity: As of August 31, 2021: ¥36,296 million
As of August 31, 2020: ¥34,962 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 3 of the attached material for the above forecasts.

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

2(1) Overview of Business Results for the Current Fiscal Year2(2) Overview of Financial Position for the Current Fiscal Year3(3) Basic Policy on Profit Distribution, and Dividends for the Current and Next Fiscal Years

4

2. Basic Policy regarding Selection of Accounting Standards

4

3. Consolidated Financial Statements and Principal Notes

5(1) Consolidated Balance Sheets

5(2) Consolidated Statements of Income and Comprehensive Income

7(Consolidated Statements of Income)

7(Consolidated Statements of Comprehensive Income)8(3) Consolidated Statements of Changes in Net Assets

9(4) Consolidated Statements of Cash Flows

11(5) Notes to Consolidated Financial Statements

12(Notes on Going Concern Assumption)

12(Additional Information)

12(Segment Information, etc.)

13(Per Share Information)

17(Material Subsequent Events)

17

-1-

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Current Fiscal YearIn the consolidated fiscal year under review, the business environment surrounding the Giken Group continued to impose acertain level of restrictions on our business activities such as delay in some of our construction projects both in Japan and overseas
due to the impacts of the new coronavirus infections, while domestic public works was steady. Also, flood damage and landslides
caused by climate change are increasing in many parts of the world. Measures to cope with increasingly severe natural and man made disasters, as well as measures to deal with the aging of social infrastructure, are positioned as important measures in many
countries, and there is an urgent need to renew and strengthen construction structures.
Under these circumstances, although the current consolidated fiscal year was the final year of the "Medium-Term Management
Plan (for the period from August 2019 to August 2021)," the numerical targets were revised on October 9, 2020 to net sales of
27,100 million yen, operating profit of 3,150 million yen, and overseas net sales of 5,200 million yen, in light of the recent
significant changes in the business environment. In the consolidated fiscal year under review, the entire Group worked together
towards these targets and transformation into a global engineering corporation based on the management policy of "Change
construction across the world through the Implant Method.”In our domestic activities to disseminate our methodologies, efforts to expand the applicable range of the Implant Method led toa steady increase in the adoption thereof. More specifically, in addition to projects for recovery and reconstruction from natural
disasters, we implemented road extensions and improvements including expressway renewals, port facility improvements to change
the quay into a deep-water one, measures to make reservoirs earthquake-resistant, and liquefaction countermeasures for private
plants, focusing on prevention or mitigation of future disaster as well as measures to strengthen the national resilience. With regard
to the collapse of river levees, which are the cause of many large-scale floods in recent years, we continue to strongly appeal to thegovernment and the people that the essential purpose of levees is to protect the lives and properties of the people and that they mustbe "responsible structures," which are never allowed to be broken. We proposed our resilient levee developed by the Company
using the Implant Lock Method to the relevant ministries and local government officials, and it was discussed by the Deliberative
Council for Infrastructure Development of the Ministry of Land, Infrastructure, Transport and Tourism as an issue to be considered
for the future. We will continue our efforts toward the realization of drastic measures.
In overseas development, we are focusing on activities to propose construction methods that comply with the five principles of
construction by making the best use of the press-in principle at some higher, more objective level. The number of construction
projects resulting from these activities has been steadily increasing, raising awareness of the Implant Method. As for large-scale
projects, Giken Europe B.V., an overseas subsidiary, established G-Kracht B.V., a joint venture with a local construction company,
for a project to develop new technologies for the improvement of canal revetment in Amsterdam, the Netherlands. In preparation
for the pilot construction scheduled to start in January 2022, detailed design and various monitoring plans are underway at the site,and so are the demonstration tests of the newly developed electric GRB system in Japan. In Brazil, technical guidance to local
companies for the construction of disaster prevention measures for tailings dams is progressing steadily, and in Australia,
preparatory work for the full-scale construction of a large-scale project is underway.
As a result, for the current consolidated fiscal year, net sales were 27,618 million yen (an increase of 12.1% from the previous
fiscal year), operating profit was 3,997 million yen (an increase of 59.9%), ordinary profit was 4,161 million yen (an increa se of
49.0%), net profit attributable to owners of parent was 3,073 million yen (an increase of 119.4%), and overseas sales totaled 5,460
million yen (an increase of 93.8%).
The performance by segment are as follows.
(i) Construction Machinery Segment
In Japan, clients were temporarily cautious about capital investment due to a lull in construction investment related to the Olympic
and Paralympic Games and redevelopment projects, but chiefly new private sector development has strengthened clients' appetite
for capital investment. Sales of general-purpose machines such as the Silent Pilers F101 and F111 for 400 mm-wide U-type Sheet
Piles increased favorably due to replacement demand. In public works in Japan, there has been a shift from 600 mm-wide U-type
Sheet Piles to 900 mm-wide Hat Sheet Piles for piles used in main construction work, and the number of projects has been increasing.
Sales of Silent Piler F301-900, which is compatible with such piles, have been strong.
As a result, net sales were 19,134 million yen (an increase of 22.7% from the previous fiscal year), and segment profit was 4,775
million yen (an increase of 38.8%).
(ii) Press-in Construction Segment
Due to its superiority, the Implant Method is adopted in the improvement of flood control facilities such as coastal embankments
and river revetments, quay wall improvement of port facilities, road restoration, landslide prevention, and road extension andimprovement for the purposes of disaster recovery with a high degree of emergency and difficulty, disaster prevention and-2-

mitigation measures of high importance, measures for aging, and strengthening of the functions of transportation networks such as
expressways. The mainstay of the Implant Method is the Gyropress Method, which enables piles to be penetrated into existing
structures by rotary press-in. In addition to our domestic subsidiary Giken Seko Co., Ltd., 17 GM members of the press-in
technology franchise "GTOSS Membership" carry out the construction work to promote and expand the use of this method.
Giken Seko Co., Ltd. does construction work as part of the development of new technologies and construction methods, andworks on advanced projects in which it can engage in automation and labor-saving of construction work and completion of various
construction methods, thereby enhancing press-in technology. The number of large-scale construction projects decreased comparedto the previous fiscal year, partly due to the fact that reconstruction projects and Nankai Trough earthquake countermeasure projects
have settled down as this year marks the 10th anniversary of the Great East Japan Earthquake.
As a result, net sales were 8,484 million yen (a decrease of 6.2% from the previous fiscal year), and segment profit was 1,243
million yen (a decrease of 0.4%).
For the next fiscal year (ending August 2022), we expect consolidated net sales of 30,000 million yen (an increase of 8.6% fromthe previous fiscal year), operating profit of 4,500 million yen (an increase of 12.6%), ordinary profit of 4,550 million yen (anincrease of 9.3%), and net profit attributable to owners of parent of 3,200 million yen (an increase of 4.1%).
(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 1,958 million yen compared to the end of theprevious consolidated fiscal year to 51,667 million yen. Current assets increased by 1,430 million yen to 26,907 million yen andnon-current assets increased by 527 million yen to 24,759 million yen from the end of the previous fiscal year.
The increase in current assets was mainly due to an increase of 3,707 million yen in cash and deposits, while there was a decreaseof 1,951 million yen in products.
The increase in non-current assets was mainly due to a 315 million yen increase in property, plant and equipment, including
buildings and structures, and a 288 million yen increase in investments and other assets.
Total liabilities at the end of the current consolidated fiscal year increased by 824 million yen compared to the end of the previous
consolidated fiscal year to 12,122 million yen. Current liabilities increased by 1,033 million yen to 10,527 million yen and noncurrent liabilities decreased by 209 million yen to 1,594 million yen from the end of the previous fiscal year.
The increase in current liabilities was mainly due to increases of 909 million yen in advances received and 457 million yen inincome taxes payable.
The decrease in non-current liabilities was mainly due to a decrease of 168 million yen in long-term loans payable.
Net assets as of the end of the current consolidated fiscal year increased by 1,133 million yen compared to the end of the previous
consolidated fiscal year to 39,544 million yen. This was mainly due to an increase of 1,254 million yen in shareholders' equity anda decrease of 503 million yen in share acquisition rights. The equity ratio increased to 75.7% from 75.5% at the end of the previous
fiscal year due to the increase in equity capital. Net assets per share increased from 1,372.25 yen at the end of the previous fiscal
year to 1,426.10 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 increased by 342 million yen compared to theend of the previous fiscal year to 5,666 million yen. The status of each cash flow is as follows.
(Cash Flow from Operating Activities)
Net cash provided by operating activities increased by 4,505 million yen compared to the previous fiscal year to 7,768 million
yen. This was mainly due to profit before income taxes of 4,548 million yen and a decrease in inventories of 3,208 million yen.
(Cash Flow from Investing Activities)
Net cash used in investing activities increased by 3,444 million yen compared to the previous fiscal year to 5,337 million yen.
This was mainly due to payments into time deposits of 5,532 million yen.
(Cash Flow from Financing Activities)
Net cash used in financing activities increased by 1,243 million yen compared to the previous fiscal year to 2,197 million yen.
This was mainly due to dividend payout of 1,914 million yen.

-3-

Year ended August 31, 2019Year ended August 31, 2020

Year ended August 31, 2021

Shareholders’ equity ratio (%)

73.1

75.5

75.7

Market/value-based
shareholders’ equity ratio (%)

175.7

209.2

251.3

Interest-bearing debt to cash
flow ratio (%)

24.2

54.5

18.5

Interest coverage ratio(times)

539.8

230.3

720.8

(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.

-4-

3. Consolidated financial statements and Principal Notes(1) Consolidated Balance Sheets(Millions of yen)
As ofAugust 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
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

-5-

As of
August 31, 2021

6,882
5,272
1,693
5,247
1,895
26
3,753
711
(3)
25,477

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

6,056(2,731)
3,324
13,560(8,190)
5,369
9,563
1,151
1,324
(983)
340
19,749352

6,900(3,056)
3,844
13,134(8,160)
4,973
9,720
1,206
1,421
(1,101)319
20,064
275

1,238
1,799
1,107
(14)
4,129
24,23149,708

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

(Millions of yen)
As ofAugust 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Advances received
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

-6-

As of
August 31, 2021

1,333
2,429
870
392
2,802
562
8
1,095
9,493

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

707
34
80
0
980
1,803
11,297

538
53
102
1
898
1,594
12,122

8,843
－

8,892
0

10,02019,439(304)
37,99910,06920,596(304)
39,253

(95)
5
(352)
(5)
(447)
503
355
38,41149,708

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

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
August 31, 2020

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 abandonment of non-current assets
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of investment securities
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
Amortization of goodwill

Fiscal year ended
August 31, 2021

24,64015,465
9,175
6,676
2,498

27,61817,003
10,614
6,617
3,997

3
22
3
38
193

1
19
14
66
－

22
－

27

37
321

48
187

14
1
3
2

10
0
2
－

－

4

5
27
2,792

3
22
4,161

41

－

－

567

41

567

－

70

297

88
－

245

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

-7-

9

－

21

543
2,289
907
40
948
1,340
(60)
1,400

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

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
August 31, 2020
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-8-

Fiscal year ended
August 31, 2021

1,340

3,127

132
(13)
9
39
167
1,508

96
24
229
(21)
328
3,455

1,545
(36)

3,375
79

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended August 31,2020 (from September 1, 2019 to August 31, 2020)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

8,731

Balance at beginning of period

Retainedearnings

Treasury shares

19,903

(303)

9,891

Cumulative effects of changes inaccounting policies
Restated balance

Total
Shareholders'equity38,222

17
8,731

9,891

112

112

17

19,920(303)

38,239Changes during period
Issuance of new shares

225

Dividends of surplus(1,882)(1,882)

Profit (loss) attributable toowners of parent

1,400

1,400
(0)

Purchase of treasury shares
Purchase of shareof consolidated subsidiaries
treasury stock
Net changes in items other thanshareholders' equity

16

16

112

129

(481)

(0)

(240)

8,843

10,02019,439(304)

37,999Total changes during period
Balance at end of period(0)

Accumulated other comprehensive income
Valuation
Deferreddifference
gains oron availablelosses on
for-salehedgessecurities
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Issuance of newsharesDividends ofsurplusProfit (loss)
attributable toownersof parent
Purchase oftreasury shares
Purchase of shareof consolidated
subsidiaries
treasury stock
Net changes in
items other thanshareholders' equity
Total changes during
periodBalance at end of
period

(228)

(228)

12

12

Total
Share
NonForeign
Remeasurements accumulated acquisition controlling Total net
currency
assetsof definedotherrightsinterests
translation
benefit plans comprehensive
adjustment
income
(331)

(44)

(331)

(44)

(591)

(591)

242

242

456

38,329

13

30

470

38,360225(1,882)
1,400
(0)
16

132

(6)

(20)

39

144

260

(114)

291

132

(6)

(20)

39

144

260

(114)

50

(95)

5

(352)

(5)

(447)

503

355

38,411-9-

Fiscal year ended August 31,2021 (from September 1, 2020 to August 31, 2021)(Millions of yen)
Shareholders' equity
Share capital

Deposits forsubscriptionsof shares

CapitalsurplusRetainedearnings

Treasuryshares

Total
Shareholders'equity8,843－

10,02019,439(304)

37,99948

048

Balance 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
periodBalance at end of
period97(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

Accumulated other comprehensive income

Balance at
beginning of 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
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

(95)

5

Total
Share
NonForeign
Remeasurements accumulated acquisition controllingcurrencyof definedotherrightsinterests
translation
benefit plans comprehensive
adjustment
income
(352)

(5)

(447)

503

355

Total net
assets38,41197(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- 10 -

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
August 31, 2020
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
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
Insurance claim income
Foreign exchange losses (gains)
Loss (gain) on valuation 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 inprogress
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Proceeds from insurance income
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
Proceeds from long-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- 11 -

Fiscal year ended
August 31, 2021

2,289
1,901
279
－
(151)
(27)
(110)
(26)
14
(193)
(64)
297
6,025
(3,715)(1,130)

4,548
1,952
－
21
117
(8)
18
(21)
10
－
52
88
(45)
3,208
(1,466)

8

(8)

(469)
4,928
26
(14)
(1,871)
－
193
3,263

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

(1,240)2,090(3,273)(9)539(1,892)(5,532)
2,175(2,080)(0)99(5,337)

363
563
(111)
221
(61)
(1,880)
(47)
(953)
(14)
403
4,920
5,324

(170)
－
(140)
94
(0)
(1,914)(65)(2,197)
107
342
5,324
5,666

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Additional Information)･Accounting estimates
Although when the new coronavirus infections will end is expected to continue to be uncertain, we assume that there will be no
significant impact in the following consolidated fiscal year, based on the business conditions of the Group in the current
consolidated fiscal year, and we have made accounting estimates for the impairment loss on non-current assets, the recoverabilityof deferred tax assets, and the valuation of inventories from this perspective.

- 12 -

(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
Construction 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 Construction 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, 2020 (from September 1, 2019 to August 31, 2020)(Millions of yen)
PostedReportable segments
amount to the
Adjusted
consolidated
Construction
Press-fitting
Totalamountfinancialmachinery
construction(Notes 1, 3)
statements
businessbusiness(Notes 2)
Net sales(1) Net sales to external
15,592
9,048
24,640－24,640
customers(2) Intersegment net sales and
1,377
133
1,510
(1,510)－transfer
16,9699,181
26,151(1,510)24,640
Total
Segment profit [Operating profit]
3,440
1,249
4,689
(2,190)2,498(loss)
Segment assets (Property, plant
41,9786,350
48,3291,379
49,708and equipment)
Other items
1,544
167
1,712
189
1,901
Depreciation
－
－
－
279
279
Amortization of goodwill
Increased amount in property,
3,027
32
3,059
1
3,060
plant and equipment(Note) 1. The segment income adjustment of negative 2,190 million yen includes inter-segment transaction eliminationsof negative 56 million yen and corporate expenses not allocated to any reportable segment of negative 2,133
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 1,379 million yen includes inter-segment credit elimination of negative 696
million yen and corporate assets not allocated to any reportable segment of 2,076 million yen.

- 13 -

Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)
Reportable segments

Net sales(1) Net sales to externalcustomers(2) Intersegment net sales andtransfer
Total
Segment profit [Operating profit](loss)
Segment assets (Property, plantand equipment)
Other items
Depreciation
Increased amount in property,
plant and equipment(Millions of yen)
Postedamount to the
Adjusted
consolidated
amountfinancial(Notes 1, 3)
statements(Notes 2)

Construction
machinerybusiness

Press-fitting
construction
business

19,1348,484

27,618－27,618

963

179

1,142

(1,142)－

20,097

8,663

28,761(1,142)

27,618

4,775

1,243

6,019

(2,022)

3,997

43,4296,953

50,383

1,283

51,667

1,607

136

1,743

208

1,952

2,261

22

2,283

10

2,294

Total

(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.

- 14 -

[Relevant Information]
Fiscal year ended August 31, 2020 (from September 1, 2019 to August 31, 2020)
1. Information by product and service
Information by product and service is omitted here because the same information is presented in the
Segment Information, etc.
2. Information by region(1) Net sales

Japan

Other

21,8222,818(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, and Oceania(Millions of yen)Total
24,640(2) Property, plant and equipment
Information on property, plant and equipment is omitted because the amount of property, plant andequipment 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% ormore of net sales stated in the consolidated statement of income
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)
1. Information by product and service is omitted here since the same information is described as segment
information.
2. Information by region(1) Net sales

Japan

Other

22,1585,460(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, South America and Oceania(Millions of yen)Total
27,618(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant andequipment 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% ormore of net sales stated in the consolidated statement of income.

- 15 -

[Information on Impairment Loss for Fixed Assets by Reportable Segment]
There is no relevant information.
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)(Millions of yen)
Construction
machinery businessImpairment
lossImpairment loss

Press-fitting
construction
business－

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.
[Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended August 31, 2020 (from September 1, 2019 to August 31, 2020)(Millions of yen)
Construction
machinery business
Amortization for thecurrent fiscal year
Unamortized
Balance for thecurrent fiscal year

Press-fitting
construction
business

Corporate andelimination

Total

－

－

279

279

－

－

－

－

(Note) Of amortization for the current fiscal year in the “Corporate/elimination” of 279 million yen, 33 million yen isreported in “depreciation” in sales, general and administrative expenses, and 245 million yen is reported in“amortization of goodwill” in extraordinary loss.
Fiscal year ended August 31, 2021 (from September 1, 2020 to August 31, 2021)
There is no relevant information[Information on Gain on Negative Goodwill by Reportable Segment]
There is no relevant information.

- 16 -

(Per Share Information)
Fiscal year ended August 31, 2020
(from September 1, 2019
to August 31, 2020)

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

1,372.25Yen

1,426.10Yen

Profit per share

51.28Yen

112.22Yen

Diluted profit per share

50.99Yen

111.89Yen

Net assets per share(Note) The basis of calculation of profit per share and diluted profit per share is as follows:
Fiscal year ended August 31, 2020
(from September 1, 2019
to August 31, 2020)

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

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

1,400

3,073

Amount not attributable to common shareholders

－

－

1,400

3,073

27,319,278

27,386,872－－

156,106

82,293(millions of yen)
Profit attributable to owners of parent concerningcommon shares (millions of yen)
Average number of common shares during the
fiscal year (shares)

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.

- 17 -－