Consolidated Financial Results
for the Fiscal Year Ended August 31, 2020 [JGAAP]
October 9, 2020
Company Name: GIKEN LTD.
Stock Code: 6289 (URL: https://www.giken.com)
Stock Exchange Listing: Tokyo
Representative: Akio Kitamura, Representative Director and President
Contact: Mika Maeda, Managing Director
Phone: +81-88-846-2933
Scheduled date of Ordinary General Meeting of Shareholders: November 25, 2020
Scheduled date to commence dividend payments: November 26, 2020
Scheduled date to submit the Annual Securities Report: November 26, 2020
Availability of supplementary briefing material on annual results: None
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, 2020 (from September 1, 2019 to August 31, 2020)(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%
24.640 (24.0)
2,498 (62.6)
2,792 (58.7)
1,400 (69.4)
Year ended August 31, 2020
32.442
11.3
6,689
11.9
6,761
11.4
4,571
10.1
Year ended August 31, 2019
(Note) Comprehensive income : Year ended August 31, 2020 : ¥1,508 million [(63.9%)]
Year ended August 31, 2019 : ¥4,174 million [5.7%]
Rate of return
Ordinary profit
Fully diluted profit
per shareon equity
to total assets
Yen
Yen
%
%
51.28
50.99
3.7
5.5
Year ended August 31, 2020
168.80167.37
12.7
13.4
Year ended August 31, 2019
(Reference) Equity in earnings of affiliated companies : Year ended August 31, 2020 : ¥ – million
Year ended August 31, 2019 : ¥ – million
Profit per share

Operating profit
to net sales
%
10.1
20.6

(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, 2020
49,70838,41175.5
1,372.25
As of August 31, 2019
51,46338,32973.1
1,381.90(Reference) Equity : As of August 31, 2020 : ¥37,551 million
As of August 31, 2019 : ¥37,630 million(3) Consolidated Cash Flows

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

Net cash provided by(used in) operating
activities
Millions of yen
3,263
3,090

Net cash provided by(used in) investing
activities
Millions of yen(1,892)(2,554)

Net cash provided by(used in) financing
activities
Millions of yen
(953)
(901)

Cash and cash
equivalents at end of
periodMillions of yen
5,324
4,920

2. Dividends
End of
1Q
Yen
Year ended
August 31, 2019Year ended
August 31, 2020
Year ending August
31, 2021 (Forecast)

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

%

%

–

34.00

–

34.00

68.00

1,849

40.3

5.1

–

35.00

–

35.00

70.00

1,914

136.5

5.1

–

35.00

–

35.00

70.00

91.2

3. Earnings Forecast of Consolidated Financial Resultsfor Fiscal Year Ending August 31, 2021 (From September 1, 2020 to August 31, 2021)(% indicates changes from the previous corresponding term)
Profit attributable toProfit per share
Net sales
Operating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen%
Yen% Millions of yen
Millions of yen
1,300(47.8)
1,300(48.7)
800(52.6)
29.23(11.6)First half
12,800
3,150
26.1
3,200
14.6
2,100
49.9
76.74
10.0
Full year
27,100* Notes(1) Changes in significant subsidiaries during the fiscal year ended August 31, 2020 (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)1) Total number of issued shares at the endof the period (including treasury shares):2) Total number of treasury shares at the endof the period:3) Average number of shares during the period:

As ofAugust 31,
2020
As of
August 31,
2020
Year ended
August 31,
2020

28,058,028
shares692,915
shares27,319, 278
shares

As ofAugust 31,
2019
As of
August 31,
2019
Year ended
August 31,
2019

27,923,428
shares692,728
shares27,084,392
shares(Reference) Summary of the Non-consolidated Financial Results
Overview of the Non-consolidated Financial Results
for the Fiscal Year Ended August 31, 2020(from September 1, 2019 to August 31, 2020)(1) Non-consolidated Results of Operations(% indicates changes from the previous corresponding term)
Net sales
Ordinary profit
ProfitMillions of yen%
Millions of yen%
Millions of yen%
Year ended August 31, 201917,096(32.2)
2,207(67.4)
837(82.6)
25,197
12.2
6,760
21.3
4,809
22.6
Year ended August 31, 2018
Profit per share
Year ended August 31, 2019Year ended August 31, 2018

Yen
30.65
177.56

Fully diluted profit
per shareYen
30.47
176.05(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, 201944,58635,46678.4
1,277.63
As of August 31, 2018
48,00835,89374.3
1,309.20(Reference) Equity: As of August 31, 2020: ¥34,962 million
As of August 31, 2019: ¥35,650 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 remarks
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(Change in Accounting Policies)

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 outlook of the business environment surrounding the Giken Group remained
unclear, as exemplified by skilled construction labor shortages and reduced bid success due to such shortage, suspension of works
and extension of construction period, postponement of placing orders, and uncertainty around further outbreaks and impacts of
COVID-19, while domestic public works budgets have been secured at a high level since the previous fiscal year. Against thisbackdrop, its customers still take cautious approach to capital investment.
The Group has been working to transform itself into a global engineering corporation engaging in the grand design ofconstructions as a top priority. In the fiscal year under review, however, affected by movement restrictions such as mandatory
working from home, requests to refrain from travelling, and restricted entry into the country due to the global spread of COVID19, we continued to be compelled to limit or delay activities to pursue such transformation. In the meantime, we swiftly adopted
telework and staggered working hours as new working styles to flexibly overcome this critical situation. Along with these efforts,
by making our methodologies proposal activities and sales activities online, starting with what could be done, we achieved both
improved productivity and cost reduction, and thus accelerated efforts to strengthen our corporate structure towards a new era.
In our domestic activities to disseminate our methodologies, we worked to expand the range of applicability of the Implant
Method, centering on initiatives for building national resilience, such as projects for recovery and reconstruction from natural
disasters, disaster prevention and mitigation measures, and measures against aging social infrastructure in preparation for the future.
With these efforts, the adoption of the Implant Method has steadily increased. Furthermore, as for river levees, which have sufferedfrequent damage by natural disasters in recent years, we strongly appeal to the public and tenaciously continue negotiations with
relevant government agencies, aiming to abolish the “levee-by-soil embankment policy” that levee must be constructed by soil
embankment. We are pushing ahead with our efforts to realize drastic measures by the Implant Method.
In our offshore business expansion, although we expect substantial growth in the future as we have enjoyed increasing recognitionof the Implant Method and received a good response to our proposal activities, our efforts have not led to short-term results yet.
However, we reinforced the structure for activities to propose and gain adoption of our methods, such as dispatching engineersfrom Japan to our overseas group companies, and established the engineering support system of providing backup therefor fromJapan. J Steel Group Pty Limited, an Australian subsidiary, transitioned from the business of mainly selling steel and soon achieved
result in receiving orders for a total package from designing through construction. Moreover, our methodologies are also gaining
increasing recognition and receiving an increasing number of inquiries in the U.S., the Netherlands, Canada, Brazil, and Asian
countries.
In the underground development business, we installed one unit of automated underground parking facility “ECO Cycle” adjacent
to a commercial building SHIBUYA FUKURAS in Shibuya-ku, Tokyo, and two units at the East exit of JR Kawasaki Station,bringing the total installments of Eco Cycle to 23 places (57 units) across Japan.
As a result, net sales for the consolidated fiscal year under review amounted to 24,640 million yen, a decrease of 24.0% from theprevious fiscal year. Operating profit stood at 2,498 million yen, a decrease of 62.6%, reflecting such factors as an increase of laborcosts, etc. in order to reinforce our business structure. Ordinary profit came to 2,792 million yen, a decrease of 58.7%, and profit
attributable to owners of parent was 1,400 million yen, a decrease of 69.4%.
The performance by segment is as follows:(i) Construction Machinery Segment
Sale of large-scale equipment remained strong, with an increased adoption of the Implant Method. On the other hand, in Japan,
the number of units sold for standard equipment, which conforms to the most versatile U-type Sheet Pile, declined because
customers were cautions about capital investment due to uncertainties over future socioeconomic conditions as mentioned above
although their replacement timing has come after seven years of the launch of the current Series F.
As a result, net sales amounted to 15,592 million yen, a decrease of 34.0% from the previous fiscal year, and segment income
was 3,440 million yen, a decrease of 56.2%.
(ii) Press-in Construction Segment
Demand for the Implant Method has remained strong as it has been adopted in critical disaster prevention, mitigation and- 2 -recovery works projects, resulting in solid orders received. In Japan, we undertook levee constructions for remediation works for
Tohoku and disaster prevention works for the potential Nankai Trough megaquake, landslide prevention work along the Kyushu
Shinkansen line, earthquake resistant construction of bridge piers, river revetment remediation and protection works, disasterrecovery works from last year's typhoon damage, highway upgrades, and other works. No prospect of resuming rehabilitation
works in the second-phase work for the port of Dakar in Senegal is yet in sight due to the effect of the spread of COVID-19.
As a result, net sales amounted to 9,048 million yen, an increase of 2.8% from the previous fiscal year, and segment income
stood at 1,249 million yen, an increase of 65.4%.
For the next fiscal year ending August 31, 2021, GIKEN forecasts consolidated net sales of 27,100 million yen, an increase of
10.0% from the previous fiscal year, operating profit of 3,150 million yen, an increase of 26.1%, ordinary profit of 3,200 million
yen, an increase of 14.6%, and profit attributable to owners of parent of 2,100 million yen, an increase of 49.9%.
(2) Overview of Financial Position for the Current Fiscal Year(i) Assets, Liabilities, and Net Assets
Total assets at the end of the current consolidated fiscal year decreased by 1,754 million yen from the end of the previous
consolidated fiscal year to 49,708 million yen. Current assets decreased by 1,432 million yen from the end of the previous
consolidated fiscal year to 25,477 million yen. Non-current assets declined 322 million yen to 24,231 million yen.
The decrease in current assets was mainly due to a decrease of 4,749 million yen in trade notes and accounts receivable, and adecrease of 1,145 million yen in electronically recorded monetary claims, despite of an increase of 3,429 million yen in finishedgoods, an increase of 1,285 million yen in raw materials and supplies.
The decrease in non-current assets was mainly due to a decrease of 899 million yen in investments and other assets such as
investment securities, despite of an increase of 892 million yen in property, plant and equipment such as buildings and structures.
Total liabilities at the end of the current consolidated fiscal year decreased by 1,836 million yen from the end of the previous
consolidated fiscal year to 11,297 million yen. Current liabilities decreased by 2,180 million to 9,493 million yen, and non-current
liabilities increased by 343 million yen to 1,803 million yen.
The decrease in current liabilities was mainly due to a decrease of 1,010 million yen in trade notes and accounts payable, and adecrease of 690 million yen in income taxes payable.
The increase in non-current liabilities was mainly due to an increase of 383 million yen in long-term loans payable.
Net assets at the end of the current consolidated fiscal year increased by 81 million yen from the end of the previous consolidated
fiscal year to 38,411 million yen. This was mainly due to an increase of 260 million yen in share acquisition rights but a decreaseof 223 million yen in shareholders' equity. The equity ratio came to 75.5% from 73.1% at the end of the previous consolidated
fiscal year as a result of an increase of total assets. Net assets per share came to 1,372.25 yen from 1,381.90 yen at the end of theprevious consolidated fiscal year.
(ii) Cash Flow
Cash and cash equivalents (hereinafter, “cash”) at the end of the current consolidated fiscal year increased by 403 million yen
from the end of the previous consolidated fiscal year to 5,324 million yen. The status of each cash flow is as follows:(Cash Flow from Operating Activities)
Net cash provided by operating activities increased by 173 million yen from the previous fiscal year to 3,263 million yen.
This was mainly due to profit before income taxes of 2,289 million yen, depreciation of 1,901 million yen, and others.
(Cash Flow from Investing Activities)
Net cash used in investing activities decreased by 662 million yen from the previous fiscal year to 1,892 million. This was
mainly due to purchases of property, plant and equipment of 3,273, and others.

- 3 -(Cash Flow from Financing Activities)
Net cash used in financing activities increased by 51 million yen from the previous fiscal year to 953 million yen. This was
mainly due to dividend payout of 1,880 million yen, and others

Year ended August 31, 2018Year ended August 31, 2019Year ended August 31, 2020

Shareholders’ equity ratio (%)

69.5

73.1

75.5

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

136.1

175.7

209.2

Interest-bearing debt to cash
flow ratio (%)

15.7

24.2

54.5

Interest coverage ratio(times)

509.9

539.8

230.3

(Note) Equity ratio: Equity divided by total assets
Market value-based shareholders’ equity ratio
Interest-bearing debt to cash flow ratio: market capitalization divided by total assets: 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 to appropriately
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, 2019
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, 2020

7,335
10,021
2,839
1,817
2,070
26
2,467
339
(7)
26,909

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

4,905(2,375)
2,529
12,347(7,009)
5,338
9,335
1,468
1,037
(851)
186
18,857667

6,056(2,731)
3,324
13,560(8,190)
5,369
9,563
1,151
1,324
(983)
340
19,749
352

1,629
1,862
1,552
(15)
5,029
24,55351,463

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

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
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, 2019

As of August 31, 2020

2,343
2,633
414
1,082
2,745
713
9
1,730
11,674

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

323
144
163
10
817
1,459
13,134

707
34
80
0
980
1,803
11,297

8,731
9,891
19,903(303)
38,222

8,843
10,02019,439(304)
37,999

(228)
12
(331)
(44)
(591)
242
456
38,32951,463

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

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Fiscal year ended
August 31, 2019
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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Share issuance costs
Foreign exchange losses
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 valuation of investment securities
Amortization of goodwill
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

Fiscal year ended
August 31, 2020

32,442
19,185
13,256
6,567
6,689

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

3
20
8
76
－
－
33
141

3
22
3
38
193
22
37
321

5
9
6
40
6
68
6,761

14
1
3
－
8
27
2,792

－
12
12

41
－
41

－
－
－

297
245
543
2,289
907
40
948
1,340
(60)
1,400

6,774
1,913
283
2,196
4,577
5
4,571

- 7 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)

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, 2019

Fiscal year ended
August 31, 2020

4,577

1,340

(158)
14
(205)
(53)
(402)
4,174

132
(13)
9
39
167
1,508

4,221
(46)

1,545
(36)

(3) Consolidated Statements of Changes in Net Assets
Fiscal year ended August 31,2019 (from September 1, 2018 to August 31, 2019)(Millions of yen)

Shareholders' equity
Share capital

CapitalsurplusRetainedearnings

Treasuryshares

Total
Shareholders'equity

8,329

9,490

17,057(303)

34,574401

401

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
period802(1,726)(1,726)

4,571

4,571
(0)

(0)

401

401

2,845

(0)

3,647

8,731

9,891

19,903(303)

38,222

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 onhedgesForeigncurrencytranslation
adjustment

(70)

4

(185)

Total
Share
NonRemeasurements accumulated acquisition controllingof definedotherrightsinterests
benefit plans comprehensive
income
9

(241)

64

503

Total net
assets34,902802(1,726)
4,571
(0)
(158)

7

(145)

(53)

(350)

177

(46)

(219)

(158)

7

(145)

(53)

(350)

177

(46)

3,427

(228)

12

(331)

(44)

(591)

242

456

38,329- 9 -Fiscal year ended August 31,2020 (from September 1, 2019 to August 31, 2020)(Millions of yen)
Shareholders' equity
Share capital

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

Capital surplus

8,731

Retainedearnings

Treasury shares

Total
Shareholders'equity19,903(303)

38,222

9,891

17

Restated balance

8,731

9,891

112

112

19,92017(303)

38,239Changes during period
Issuance of new shares

225

Dividends of surplus
Profit (loss) attributableto ownersof parent
Purchase of treasury
sharesPurchase of shareof consolidated
subsidiaries
treasury stock
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period(1,882)(1,882)

1,400

1,400
(0)

(0)

16

16

112

129

(481)

(0)

(240)

8,843

10,02019,439(304)

37,999

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

(228)

(228)

12

12

Foreigncurrencytranslation
adjustment

Share
NonTotal
Remeasurements accumulated acquisition controllingof definedotherrightsinterests
benefit plans comprehensive
income

(331)

(331)

(44)

(44)

(591)

(591)

242

242

Total net
assets456

38,329

13

30

470

38,360Changes during period
Issuance of newshares225(1,882)

Dividends of surplus
Profit (loss)
attributable to ownersof parent
Purchase of treasury
sharesPurchase of shareof consolidated
subsidiaries
treasury stock
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period

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- 10 -

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
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
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, 2019

Fiscal year ended
August 31, 2020

6,774
1,708
31
(94)
(14)
(117)
(23)
5
－
(15)
－
(4,241)
163
(146)

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

(8)

8

781
4,803
23
(5)
(1,731)
－
3,090

(469)
4,928
26
(14)
(1,871)
193
3,263(2,830)2,765(1,947)(310)(231)(2,554)(1,240)2,090(3,273)(9)539(1,892)

303
－
(214)
744
(0)
(1,728)
(5)
(901)
(43)
(409)
5,329
4,920

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

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Change in Accounting Policies)
Several overseas subsidiaries have adopted IFRS 16 “Leases” from the fiscal year under review. Accordingly, for leasetransactions as a lessee, all leases are, in principle, now recorded as assets and liabilities on the balance sheet. In adopting thisaccounting standard, the Group has adopted the method of recognizing the cumulative effect on the initial application date, whichis accepted as a transitional measure.
The impact of this change on the consolidated financial statements for the fiscal year under review is immaterial.
(Additional Information)･Accounting estimates
Affected by requests to refrain from travelling and restricted entry into the country due to the spread of COVID-19, the Grouphas been compelled to limit methodologies proposal activities.
Assuming that these situations will gradually turn to normal from the fiscal year ending August 31, 2021, the Company makes
accounting estimates for impairment loss of fixed assets, the recoverability of deferred tax assets, the valuation of inventories, andothers.
Because of high uncertainties over the impacts of COVID-19 on economic activities, there is a possibility that any change in theabove assumption will affect our future financial position and operating results.

- 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, 2019 (from September 1, 2018 to August 31, 2019)
Reportable segments

Net sales(1) Net sales to external customers(2) Intersegment net sales andtransfer
Total
Segment profit [Operating profit](loss)
Segment assets (Property, plantand equipment)
Other items
Depreciation
Amortization of goodwill
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

23,6388,803

32,442–32,442

1,220

140

1,360

(1,360)–24,8588,943

33,802(1,360)32,442

7,855

755

8,611

(1,922)

6,689

44,325

4,814

49,1392,323

51,463

1,418
–

149
–

1,568
–

139
31

1,708
31

2,240

72

2,312

4

2,317

Total

(Note) 1. The segment income adjustment of negative 1,922 million yen includes inter-segment transaction eliminationsof negative 45 million yen and corporate expenses not allocated to any reportable segment of negative 1,876
million yen. The corporate expenses are mainly general administrative expenses not belonging to any reportablesegment.
2.Segment income is adjusted with operating profit presented in the consolidated statement of income.
3. The segment assets adjustment of 2,323 million yen includes inter-segment credit elimination of negative 626
million yen and corporate assets not allocated to any reportable segment of 2,949 million yen.
4. Change in reportable segments, etc.
Previously, as for a consolidated subsidiary J Steel Group Pty Limited, whose fiscal year ended on June 30,
financial statements as of that date were used and adjustments necessary in consolidation were made for materialtransactions that occurred between its closing date and the consolidated closing date. To ensure more appropriate
disclosure of consolidated financial information, however, J Steel Group Pty Limited has changed its closing date
- 13 -

to August 31 from the consolidated third quarter.
This change in fiscal year-end has resulted in consolidated financial statements for the fiscal year under reviewof 14 months from July 1, 2018 to August 31, 2019, with adjustments through the consolidated statement ofincome.
As a result, net sales and segment income in the Press-in Construction Segment for the current fiscal year
increased by 781 million yen and 45 million yen, respectively.
Fiscal year ended August 31, 2020 (from September 1, 2019 to August 31, 2020)
Reportable segments

Net sales(1) Net sales to external customers(2) Intersegment net sales andtransfer
Total
Segment profit [Operating profit](loss)
Segment assets (Property, plantand equipment)
Other items
Depreciation
Amortization of goodwill
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

15,592

9,048

24,640–24,640

1,377

133

1,510

(1,510)–16,9699,181

26,151(1,510)24,640

3,440

1,249

4,689

(2,190)2,498

41,9786,350

48,3291,379

49,708

1,544
–

167
–

1,712
–

189
279

1,901
279

3,027

32

3,059

1

3,060

Total

(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 reportablesegment.
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.

- 14 -

[Relevant Information]
Fiscal year ended August 31, 2019 (from September 1, 2018 to August 31, 2019)
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(Millions of yen)Total
32,442

Other27,397

5,044(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, and Oceania(2) Property, plant and equipment
Information on property, plant and equipment is omitted because 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
The Name of Customer
YONEI & CO.,LTD.

Sales
4,041

(Millions of yen)
Related Segment
Construction machinery segment

Fiscal year ended August 31, 2020 (from September 1, 2019 to August 31, 2020)
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
21,822

2,818(Millions of yen)Total
24,640(Note) Major regions that belong to “Other regions” other than Japan are as follows:
Other regions: Europe, Asia, North America, and Oceania(2) Property, plant and equipment
Information on property, plant and equipment is omitted since the amount of property, plant and equipment locatedin 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.

- 15 -

[Information on Impairment Loss for Fixed Assets by Reportable Segment]
There is no relevant information.
[Information on Amortization and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended August 31, 2019 (from September 1, 2018 to August 31, 2019)(Millions of yen)
Construction
machinery business
Amortization for thecurrent fiscal year
Unamortized
Balance for thecurrent fiscal year

Press-fitting
construction
business

Corporate andelimination

Total

–

–

31

31

–

–

258

258

(Note) The amounts in the “Corporate/elimination” represent the amounts concerning corporate assets not belonging to
any 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.
[Information on Gain on Negative Goodwill by Reportable Segment]
There is no relevant information.

- 16 -

(Per Share Information)
Fiscal year ended August 31, 2019(from September 1, 2018
to August 31, 2019)

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

1,381.90yen

1,372.25yen

Profit per share

168.80yen

51.28yen

Diluted profit per share

167.37yen

50.99yen

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, 2019(from September 1, 2018
to August 31, 2019)

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

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

4,571

1,400

－

－

4,571

1,400

27,084,392

27,319,278－－

231,626

156,106

Amount not attributable to common shareholders(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 in The fourth stock acquisition rights
computation of diluted profit per share because of pursuant to the resolution at thetheir anti-dilutive effect

Board of Directors meeting held on
October 19, 2018
Number of stock acquisitionrights: 8,754(875,400 common shares)
The fifth stock acquisition rights
pursuant to the resolution at theBoard of Directors meeting held on
April 19, 2019
Number of stock acquisitionrights: 983(98,300 common shares)(Material Subsequent Events)
There is no relevant information.

- 17 -－