Consolidated Quarterly Financial Results
for the Six Months Ended September 30, 2021
[Japanese GAAP]
November 12, 2021
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: https://www.nipponhume.co.jp
Representative: Minoru Okawauchi, President and Representative Director
Contact: Hirokazu Suzuki, Director and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of filing quarterly securities report: November 12, 2021
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly financial results briefing session: Yes (for analysts, and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2021
(April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnoverOperating income
Ordinary income
owners of parent
company
Million yen%

Million yen%

Million yen%

Million yen

Six months ended
14,130(6.1)
644 (25.5)
1,397
(7.9)
1,137
September 30, 2021
Six months ended
15,045 (12.1)
865
(7.0)
1,517
(8.5)
1,149
September 30, 2020
(Note) Comprehensive income: Six months ended September 30, 2021: ¥1,016 million [-43.7%]
Six months ended September 30, 2020: ¥1,804 million [47.1%]

Six months ended
September 30, 2021
Six months ended
September 30, 2020

Earnings per share

Diluted earnings per
share

Yen

Yen

46.69

―

47.05

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of September 30,
50,66536,2992021
As of March 31,
50,41836,0202021(Reference) Equity: As of September 30, 2021: ¥35,976 million
As of March 31, 2021: ¥35,691 million

Equity ratio

%

(1.1)
(11.1)Net assets per share
%

Yen

71.0

1,480.98

70.8

1,461.11

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

25.00

25.00

―

20.00

20.00

Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
(Forecast)

Total(Note) Revision to the dividend forecast announced most recently: No(Note) Breakdown of dividends for the fiscal year ended March 31, 2021: Ordinary dividend: 20.00 yen
Commemorative dividend: 5.00 yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company
Million yen%

Million yen%

Million yen%

31,000
1.8
1,750
1.2
2,650 (2.3)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen

%

Yen

2,000

(6.1)

81.87

* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No
Newly included: ― (Company name)
Excluded: ― (Company name)(2) Application of accounting procedures specific to preparation of consolidated quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021: 29,347,500 shares
As of March 31, 2021: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of September 30, 2021: 5,054,807 shares
As of March 31, 2021: 4,919,851 shares
3) Average number of shares during the period
Six months ended September 30, 2021: 24,355,477 shares
Six months ended September 30, 2020: 24,433,782 shares* These quarterly financial results are not subject to quarterly review procedures by certified public accountants or
auditing corporations.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in these materials are based on
information available to the Company and on certain assumptions deemed to be reasonable as of the date of
publication of this document. They are not intended as a commitment by the Company that these results will beachieved. Actual results may differ considerably as a result of numerous factors. For the assumptions used in thefinancial results forecast and precautionary notes on its use, please refer to “1. Qualitative Information on Quarterly
Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................. 2(1) Explanation of Operating Results .............................................................................................................. 2(2) Explanation of Financial Position .............................................................................................................. 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .......... 3
2. Consolidated Quarterly Financial Statements and Important Notes ........................... ....................................4(1) Consolidated Quarterly Balance Sheets ..................................................................................................... 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income ............................................. 6(3) Consolidated Quarterly Statements of Cash Flows ...................................................................................... 8(4) Notes to the Consolidated Quarterly Financial Statements ...................................................................... 10(Notes on going concern assumption) ...................................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) ........................................................... 10(Changes in accounting policies) ............................................................................................................... 10(Segment information, etc.) ...................................................................................................................... 111

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months ended September 30, 2021, there were signs of recovery in the world economy,
centered on the United States and Europe, where progress is being made in coronavirus vaccination programs,
but the outlook for a full-fledged recovery remained unclear. Despite a progressive recovery in external
demand from the United States and Europe, the states of emergency declared intermittently to counter
infections had a prolonged negative impact on activity in the Japanese economy.
With regard to the business environment in which the Group operates, public works investment has beensolid since the implementation by the government of the “Five-Year Acceleration Plan for Disaster Prevention,
Disaster Mitigation, and Building National Resilience.” Private-sector construction investment showed signs ofpicking up, but the order environment remained challenging.
Under these conditions, nationwide demand for concrete pile products in the foundations business was flat
year on year, but there were significant regional variations in the order situation. As a result of focusing on
winning orders in high value-added products following the shift toward strengthening disasterprevention/mitigation and national resilience, the sewerage-related business recorded solid performance.
In the six months ended September 30, 2021, consolidated turnover amounted to ¥14,130 million (down
6.1% year on year), operating income was ¥644 million (down 25.5%), ordinary income was ¥1,397 million(down 7.9%), and profit attributable to owners of parent was ¥1,137 million (down 1.1%). As a result of theapplication of the Accounting Standard for Revenue Recognition, etc., both turnover and cost of sales were¥230 million lower than when calculated using the previous method, mainly due to the effect of recognizing a
net amount of turnover from transactions performed as an agent.
In addition to rising material prices, the business environment in which the Group operates is characterizedby conditions for private-sector orders that are likely to remain difficult. However, the Group will leverage thefeatures of its business portfolio, promote initiatives for enhancing productivity and reducing costs, and work
to stabilize and enhance profits in line with the business strategy. The Group is also diligently promoting its“21-23 Plan” medium-term management plan, and in the second quarter it released its “Pile-ViMSys” nextgeneration DX construction management system, which enables improvements in both the quality andefficiency of pile foundation construction. In addition, the Group is pursuing research and development in suchareas as environmental materials that will contribute to the decarbonization of society, and products that will
help counter rainwater. The Company will continue to pursue the medium- to long-term growth strategy under
the theme of “green and digital.”(2) Explanation of Financial Position
1) Assets, Liabilities and Net Assets
Total assets as of September 30, 2021, had increased ¥246 million from the end of the previous consolidated
fiscal year, to ¥50,665 million. This was mainly because, under current assets, while cash and deposits
decreased ¥968 million, notes and accounts receivable - trade and contract assets increased ¥627 million andmerchandise and finished goods increased ¥269 million; also, under non-current assets, investment securities
increased ¥280 million.
In addition, under liabilities, total liabilities were ¥14,365 million, at the same level as the end of theprevious consolidated fiscal year.
Under net assets, total net assets increased ¥278 million from the end of the previous consolidated fiscal
year, to ¥ 36,299 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥1,137 million, there was a decrease of ¥633 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥116 million.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

2) Cash Flows
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) in the six months ended September 30, 2021 decreased ¥969 million fromthe end of the previous consolidated fiscal year, to ¥11,316 million.
(Cash flows from operating activities)
Funds provided by operating activities during the six months ended September 30, 2021, decreased ¥1,694
million year on year to ¥12 million. This was mainly because of a ¥616 million increase in notes and accounts
receivable - trade, ¥603 million in share of income of associates, an increase of ¥364 million in inventories, adecrease of ¥135 million in accrued consumption taxes, while there was an increase of ¥1,400 million in profit
before income taxes and minority interests and an increase of ¥323 million in depreciation.
(Cash flows from investing activities)
Funds used in investing activities during the six months ended September 30, 2021 decreased ¥203 million
year on year to ¥264 million. This was mainly because of ¥290 million in purchase of fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the six months ended September 30, 2021, increased ¥233 million
year on year to ¥724 million. This was mainly because of ¥632 million in cash dividends paid and¥101 million in purchase of treasury shares..

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2022, there has been nochange to the full-year results forecast published in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2021[Japanese GAAP]” dated May 13, 2021.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade and contract
assetsMerchandise and finished goods
Raw materials and supplies
Other
Provision for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Provision for share-based remuneration for directors
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

4

As of September 30, 2021

12,328,246
8,770,485

11,359,254――

9,398,333

2,564,269
509,182
206,376(11,769)
24,366,791

2,833,807
612,350
282,422(13,234)
24,472,933

4,134,471
3,610,229
1,583,297
9,327,999
188,238

4,010,549
3,608,385
1,640,398
9,259,333
159,524

16,200,362
367,731(32,718)
16,535,375
26,051,613
50,418,405

16,481,308
324,185(32,250)
16,773,244
26,192,101
50,665,035

8,113,087
928,055
327,912
172,900―
1,065,399
10,607,354

8,199,949
970,038
366,599
173,743
3,334
913,580
10,627,246

16,50014,9072,517,770
1,241,223
3,790,401
14,397,755

18,31014,9072,526,804
1,178,483
3,738,505
14,365,752

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

(Thousand yen)
As of March 31, 2021
Net assets
Shareholders’ equity
Share capital
Share premium
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of September 30, 2021

5,251,400
4,773,375
26,366,080(2,163,815)
34,227,040

5,251,400
4,773,375
26,869,474(2,263,133)
34,631,116

1,213,840
220,761
29,8691,464,471
329,137
36,020,649
50,418,405

1,096,970
204,648
44,143
1,345,762
322,404
36,299,283
50,665,035

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2020
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on valuation of investment securities
Structure reform expenses
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Loss attributable to non-controlling interests
Profit attributable to owners of parent company

6

For the six months ended
September 30, 2021

15,045,663
12,323,604
2,722,059
1,856,958
865,101

14,130,645
11,607,468
2,523,176
1,878,437
644,739

469
84,183521,903―80,590687,148200
101,531603,984
7,555
54,278
767,550

7,506
10,062
17,35834,9281,517,321

6,709
―
8,369
15,0781,397,211

―
1,440
1,440

3,620
―
3,620

940
17,181
39,94558,066
1,460,694
337,400(19,597)
317,803
1,142,891(6,632)
1,149,524――――
1,400,831
291,442(25,848)
265,593
1,135,237(1,938)1,137,176

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

Consolidated Quarterly Statements of Comprehensive Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2020
Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Share of other comprehensive income of associates
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
company
Comprehensive income (loss) attributable to noncontrolling interests

7

For the six months ended
September 30, 2021

1,142,891

1,135,237

425,509
11,650226,964(2,617)
661,506
1,804,398(101,078)(15,457)
14,655(16,828)(118,709)
1,016,528

1,811,031

1,018,466(6,632)(1,938)NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

(3) Consolidated Quarterly Statements of Cash Flows(Thousand yen)
For the six months ended
September 30, 2020
Cash flows from operating activities
Profit before income taxes and minority interests
Depreciation
Increase (decrease) in provision for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for share-based
remuneration for directors
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for environmental
measures
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (income) loss of associates
Loss (gain) on sales of fixed assets
Loss on valuation of investment securities
State subsidy
Structure reform expenses
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Decrease (increase) in other non-current assets
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

8

For the six months ended
September 30, 2021

1,460,694
304,180(26,997)(3,049)(29,580)

1,400,831
323,383996
842
26,393

5,500

4,232

(2,310)―(1,514)

―

―

3,334

(84,653)
7,506
1,619
(521,903)
940
17,181(1,440)39,945(101,731)
6,709(1,650)(603,984)(3,620)―――2,506,317(616,023)(291,600)(46,019)(364,113)(73,919)(1,483,430)

75,224

43,761(179,280)―
01,715,866
226,908(7,502)(228,992)
1,706,279(135,745)
40,18030,716265
12,323
260,686(6,707)(254,077)
12,225NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

For the six months ended
September 30, 2020
Cash flows from investing activities
Payments into time deposits
Purchase of investment securities
Purchase of fixed assets
Proceeds from sales of fixed assets
Proceeds from state subsidy
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Net foreign exchange on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

9

For the six months ended
September 30, 2021――
(441,737)
1,647
1,440
(28,383)(467,033)

(528)
(165)
(290,984)
7,072―
20,595(264,010)

6,603(109,076)
98,845(478,968)(8,705)(491,301)(5,528)742,415
10,333,968
11,076,383

10,251(101,051)―(632,399)(1,414)(724,614)
6,879(969,520)
12,285,682
11,316,162

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

(4) Notes to the Consolidated Quarterly Financial Statements(Notes on going concern assumption)
No relevant items.
(Notes in the case of significant changes in shareholders’ equity)
No relevant items.

(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Boardof Japan (ASBJ) Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition Accounting Standard”),
etc. from the beginning of the three months ended June 30, 2021. Under the Revenue Recognition AccountingStandard, the Company recognizes revenue at the time when control over the promised goods or services aretransferred to the customer, in an amount equal to the consideration expected to be received for the said goods orservices. Previously, the percentage-of-completion method was used for work contracts for which the outcome of a
portion of a work was deemed certain, and the completed-contract method was used for work contracts that did notsatisfy this requirement. From this fiscal year onward, revenue is recognized over a certain period of time as
performance obligations are satisfied. Moreover, in cases where the duration of a work is extremely short, revenue
is recognized at the time when a work that fully satisfies the performance obligations has been completed. The
input method (proportion of actual cost to estimated total cost) is used to estimate the rate of progress in fulfilling
performance obligations.
For transactions where the Company’s role in the provision of products to the customer is that of an agent, theCompany previously recognized the gross amount of the consideration received from the customer as revenue. The
Company now recognizes as revenue the net amount received from the customer after deducting the amount paid
to the product’s supplier.
In applying the Revenue Recognition Accounting Standard, etc., the Company has followed the transitional
treatment stipulated under the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, adjustingretained earnings at the start of the three months ended June 30, 2021, to account for the cumulative effect ofretrospective application of the new accounting policy prior to that time, and applying the new accounting policy
from the adjusted balance.
As a result, for the six months ended September 30, 2021, both turnover and cost of sales were ¥230 million
lower than when calculated using the previous method. There was no effect on the amount of retained earnings at
the start of the six months ended September 30, 2021.
Pursuant to the application of Revenue Recognition Accounting Standard, etc., notes and accounts receivable –trade, which was presented in current assets on the consolidated balance sheets for the previous fiscal year, wasincluded in notes and accounts receivable – trade and contract assets for the three months ended June 30, 2021. In
accordance with the transitional treatment prescribed under Paragraph 89-2 of the Revenue Recognition
Accounting Standard, the Company has not reclassified items for the previous fiscal year based on the new10

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

presentation method.

(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,
2019; hereinafter the “Fair Value Measurement Accounting Standard”), etc. from the start of the three months
ended June 30, 2021. The Company has applied the new accounting policy prospectively from the start of the threemonths ended June 30, 2021, in accordance with the transitional treatment prescribed under Paragraph 19 of the
Fair Value Measurement Accounting Standard and Paragraph 44-2 of “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect on the consolidated quarterly financial
statements.

(Segment information, etc.)
I. For the six months ended September 30, 2020 (April 1, 2020 to September 30, 2020)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Amountrecorded ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate9,497,385

4,812,579

711,401

15,021,366

24,297

15,045,663―

15,045,663

3,333

―

19,266

22,600―22,600(22,600)―

9,500,718
583,515

4,812,579
591,026

730,668
396,281

15,043,966
1,570,822

24,297
18,15815,068,264
1,588,981(22,600)(723,879)

15,045,663
865,101

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(723,879) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

11

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2021

II. For the six months ended September 30, 2021 (April 1, 2021 to September 30, 2021)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Amountrecorded ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate8,920,272

4,458,413

724,572

14,103,258

27,386

14,130,645―

14,130,645

1,870

―

18,894

20,764―

20,764(20,764)―

8,922,142
136,658

4,458,413
826,348

743,467
409,935

14,124,023
1,372,941

27,38621,981

14,151,410
1,394,923(20,764)(750,184)

14,130,645
644,739

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(750,184) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

3. Changes in reportable segments, etc.
As described in Changes in accounting policies, the Company has applied the Revenue Recognition AccountingStandard, etc. from the beginning of the three months ended June 30, 2021. Pursuant to the change in accounting
treatment for revenue recognition, the Company has likewise changed the methods used to calculate income or loss
for its business segments.
As a result of this change, for the six months ended September 30, 2021, the turnover of the foundations
business and the sewerage-related business was ¥26 million and ¥203 million lower, respectively, than whencalculated using the previous method.

12