Integrated Design & Engineering Holdings Co., Ltd.
(Securities Code: 9161, Prime Market of TSE)
August 14, 2023

Disclosure of Financial Results for Delisted Subsidiary(Nippon Koei Co., Ltd.)The Financial Results for the Fiscal Year Ended June 2023 (July 1, 2022, to June 30,2023) of Nippon Koei Co., Ltd., which became a wholly owned subsidiary on July 3,2023, as detailed in the attachment.
For information regarding the Forecast of Consolidated Financial Results for the Fiscal
Year Ending June 30, 2024, please refer to the “Forecast of Consolidated Financial
Results and Dividends for the Fiscal Year Ending June 30, 2024”, which was publishedtoday.

1

Consolidated Financial Results
for the Fiscal Year Ended June 30, 2023
[IFRS]
August 14, 2023
Company name: Integrated Design & Engineering Holdings Co., Ltd. (Former Nippon Koei Co., Ltd.)
Stock exchange listing: Tokyo Stock Exchange
Code number: 9161
URL: https://www.id-and-e-hd.co.jp/english/
Representative: Hiroaki Shinya, Representative Executive President
Contact: Yasushi Hirusaki, Representative Executive Officer
Phone: +81-3-3238-8040
Scheduled date of filing annual securities report: September 28, 2023
Scheduled date of commencing dividend payments: September 11, 2023
Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for institutional investors and securities analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2023 (from July 1, 2022 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)
ProfitRevenue
Operating profit Profit before tax
Profitattributable toowners of parent
Fiscal year ended
Million yen% Million yen% Million yen% Million yen% Million yen%
June 30, 2023
141,5278.3
6,080 (32.9)
6,373 (41.0)
3,937 (41.3)
3,093 (53.0)
June 30, 2022
130,674 10.9
9,065 27.2
10,800 50.5
6,704 48.4
6,579 45.2
Basic earnings
per share

Diluted earnings
per share

Return on equity
attributable toowners of parent

Ratio of profit
before tax to total
assetsRatio of operating
profit to revenue

Equityattributable toowners of parent
Million yen
80,87378,088

Ratio of equity
attributable toowners of parent tototal assets

Equity attributable toowners of parent per
share

Fiscal year ended
Yen
Yen
%
%
%
June 30, 2023
205.34205.343.9
3.5
4.3
June 30, 2022
436.98436.988.8
6.5
6.9(Reference) Share of profit of investments accounted (Equity method):Fiscal year ended June 30, 2023 : ¥97 million
Fiscal year ended June 30, 2022 : ¥230 million(2) Consolidated Financial Position
Total assets
As ofJune 30, 2023
June 30, 2022

Total equity

Million yen
195,391
173,926

Million yen
83,784
81,969(3) Consolidated Cash Flows
Fiscal year ended
June 30, 2023
June 30, 2022

Cash flows fromoperating activities
Million yen
8,345
4,820

2. Dividends

Dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end

Fiscal year ended June 30, 2022
Fiscal year ended June 30, 2023

Cash flows frominvesting activities
Million yen(2,859)(6,949)

Yen
-

Yen
-

Yen
-

Year-end

Yen
125.00125.001

Total

Cash flows fromfinancing activities
Million yen
8,298
1,892

%
41.4
44.9

Yen
5,367.89
5,185.66

Cash and cash equivalents
at the end of period

Million yen
31,67917,971

Ratio of dividends to
Total
Payout ratio equity attributable todividends paid (consolidated)owners of parent(annual)(consolidated)

Yen Million yen
125.001,882
125.00
1,883

%
28.6
60.9

%
2.5
2.4

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): Yes
New companies: None
Excluded companies: IRONMONT HYDRO PTE. LTD.
ACEI SINGAPORE HOLDINGS PRIVATE LTD.
(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
(3) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023:
15,066,152 shares
As of June 30, 2022:
15,060,314 shares2) Total number of treasury shares at the end of the period
As of June 30, 2023:
- shares
As of June 30, 2022:
1,811 shares
3) Average number of shares during the period
Fiscal year ended June 30, 2023:
15,064,420 sharesFiscal year ended June 30, 2022:
15,056,069 shares* These consolidated financial results are not subject to audit procedures by certified public accountants or the audit firm.
* The Company is scheduled to hold a financial results briefing session for investors and analysts on September 5, 2023.
The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s
website.

2

Table of Contents of Attachment
1. Overview of Operating Results, etc........................................................................................................................ 2(1) Overview of Operating Results for the Current Fiscal Year ........................................................................... 2(2) Overview of Financial Position for the Current Fiscal Year ............................................................................. 3(3) Overview of Cash Flows for the Current Fiscal Year ....................................................................................... 3(4) Future Outlook.................................................................................................................................................. 4
2. Basic Policy Regarding Selection of Accounting Standard.................................................................................... 6
3. Consolidated Financial Statement and Primary Notes ........................................................................................... 7(1) Consolidated Statement of Financial Position .................................................................................................. 7(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income ................ 9(3) Consolidated Statement of Changes in Equity ............................................................................................... 11(4) Consolidated Statement of Cash Flows .......................................................................................................... 12(5) Notes to Consolidated Financial Statements .................................................................................................. 13(Notes on Going Concern Assumption) ............................................................................................................... 13(Segment Information) ......................................................................................................................................... 13(Per Share Information)........................................................................................................................................ 16(Significant Subsequent Events) .......................................................................................................................... 17
4. Other..................................................................................................................................................................... 20(1) Status of Orders and Sales .............................................................................................................................. 20

1

1.

Overview of Operating Results, etc.

(1) Overview of Operating Results for the Current Fiscal Year
During the current fiscal year (July 1, 2022 to June 30, 2023), Japan's economy is recovering moderately due to theeffects of various policies as the transition to a new stage of life with COVID-19 progresses. There is anticipation ofa continued moderate recovery going forward, supported by improvements in the employment and income
environments and other factors. On the other hand, while global monetary tightening, etc. continues, we need to pay
close attention to the effects of price increases, supply-side constraints, and fluctuations in the financial and capital
markets in addition to the risk that the downside in overseas economies would hold down the Japanese economy.
Looking at the business environment surrounding Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), we recognize that the situation is unpredictable. There is an increasing risk of uncertainty inthe international situation triggered by Russia’s invasion of Ukraine while we face global issues that require
immediate action, such as climate change and social polarization. In the Consulting Business, the domestic market is
expected to continue to secure public works budgets for national resilience (against natural disasters) and regional
revitalization and the market is expected to expand in the field of disaster prevention and mitigation. We also
anticipate expansion of the defense-related infrastructure business. In the overseas market, the Japanese government
is aiming to strengthen budgets with “Infrastructure System Overseas Promotion Strategy 2025” as an axis, but there
are concerns about inflation, foreign exchange fluctuations, unstable international situations and such like.
In the Urban & Spatial Development Business, the need for sustainable urban restructuring, which attracts ESG
investment, is increasing in Japan, Europe and the United States. Also, the need for the urban development businessincluding preparation and maintenance of transportation-related facilities and peripheral infrastructures is strong indeveloping countries. In the Energy Business, new opportunities are expected to be created leading to competition
toward the target of carbon neutrality in 2050 in addition to the demand for updating the aging existing equipment inJapan. However, it is necessary to agilely cope with policy change due to the rising global energy cost although thetrend of shifting to renewable energy remains unchanged.
Under such a market environment, we have drawn up the medium-term management plan “Building Resilience2024” to implement three resilience policies, and positioned the period from July 2021 to June 2024, which is firststep of the “NKG (Nippon Koei Group) Global Strategy 2030,” as a transformation period to make the Group resilient.
Please refer to "(4) Future Outlook" for details.
As a result, the Group ended the current fiscal year with orders received increased 6.2% year on year to ¥139,265
million, mainly due to steady progress in the Urban & Spatial Development Business and the Energy Business. All
businesses yielded revenue steadily and increased 8.3% year on year to ¥141,527 million. However, operating profit
decreased 32.9% year on year to ¥6,080 million, and profit attributable to owners of parent fell 53.0% year on yearto ¥3,093 million. This was because an impairment loss on goodwill of ¥3,943 million related to BDP HOLDINGS
LTD. (“BDP”) engaging in the Urban & Spatial Development Business was recorded, and outsourcing expenses, etc.
increased due to the impact of inflation in the Consulting Business.
Business results for each segment are as follows: As some of our subsidiaries have changed their reportablesegments, effective from the current fiscal year, comparisons with the previous fiscal year are based on the figuresthat have been reclassified into the new segments. For details of this change in reporting segments, please refer to "3.
Consolidated Financial Statement and Primary Notes (5) Notes to Consolidated Financial Statements (Segment
Information) 2. Changes in reportable segments".
[Consulting]In the Consulting Business, we worked to utilize new technologies, assure quality and safety and increase
productivity. We also promoted cross-sectional co-creation projects such as those related to river basin flood control,
climate change, SDGs, renewable energy and multi-hazards.
As a result, orders received decreased 8.3% year on year to ¥77,712 million and revenue increased 9.1% year on
year to ¥81,818 million due to steady progress in the domestic projects. Operating profit decreased 17.2% year on
year to ¥6,599 million due to an increase in travel costs etc. owing to inflation and increase in business travelers byeasing of entry restrictions in various countries.
2

[Urban & Spatial Development]
In the Urban & Spatial Development Business, we worked to form urban (re-)development projects and large-scaleland-use conversion projects in coastal areas, centering on NIPPON KOEI URBAN SPACE CO., LTD. (“NIPPONKOEI URBAN SPACE”), which was established by consolidating the Urban & Spatial Development Business of theCompany and our group company TAMANO CONSULTANTS CO., LTD. (on July 1, 2022). We also worked to
expand business in the U.K. and North American markets and to build a business foundation in the Asian market
through group-wide collaboration.
As a result, orders received increased 33.1% year on year to ¥42,566 million due to orders for large-scale projects
at BDP, and revenue increased 5.5% year on year to ¥38,071 million. Operating loss came to ¥946 million (operating
profit of ¥2,599 million in the previous period) due to the recording of an impairment loss related to goodwill of BDP.
[Energy]In the Energy Business, we worked to strengthen the structure of the existing energy-related consulting andengineering projects, build a foundation for energy management projects such as battery storage and aggregation andstabilize the manufacturing projects by strengthening core products and developing new ones.
As a result, orders received increased 31.3% year on year to ¥18,827 million due to orders for large-scale projects
such as EPC project for construction of next-generation energy supply base and project for substation control systems.
Revenue increased 10.9% year on year to ¥20,855 million, and operating profit increased 130.5% year on year to¥2,974 million by gain on sale of shares of PT. ARKORA HYDRO, a former associated company of the Group, andgain on investments in securities.
(2) Overview of Financial Position for the Current Fiscal Year
Total assets as of the end of the current fiscal year amounted to ¥195,391 million, an increase of ¥21,465 million
from the end of the previous fiscal year. This was mainly due to a ¥13,707 million increase in cash and cash
equivalents.
Total liabilities were ¥111,607 million, an increase of ¥19,650 million from the end of the previous fiscal year.
This was mainly due to a ¥13,664 million increase in borrowings.
Total equity was ¥83,784 million, an increase of ¥1,814 million from the end of the previous fiscal year. This was
mainly due to a ¥1,492 million increase in retained earnings.
As a result, ratio of equity attributable to owners of parent to total assets decreased 3.5 percentage points from theend of the previous fiscal year to 41.4%.

(3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents at the end of the current fiscal year was ¥31,679 million, an increase of ¥13,707 million
from the end of the previous fiscal year. The status of cash flows in the current fiscal year and changes in cash flows
from the previous fiscal year are as follows.
Net cash provided by operating activities was ¥8,345 million, an increase of ¥3,524 million from the previous fiscal
year as a result of making adjustments of non-fund items such as depreciation cost as well as receivables and liabilities
related to business activities for profit before tax of ¥6,373 million. This was mainly due to factors such as promoted
collection of trade receivables and decreases in payments for contract liabilities and consumption taxes payable, etc.
Net cash used in investment activities was ¥2,859 million, a decrease of ¥4,089 million from the previous fiscal
year, as a result of purchasing property, plant and equipment and selling other financial assets. This was mainly due
to an increase in revenue from the sale of other financial assets and shares of subsidiaries and associates.
Net cash provided by financing activities was ¥8,298 million, an increase of ¥6,405 million from the previous fiscal
year as a result of borrowing and repaying short-term loans. This was mainly because the increase in cash fromborrowings was higher than the increase in cash used for repayments.
Trends of the Company’s cash flow indicators are as follows.
3

(Reference) Trends in Cash Flow Indicators
Ratio of equity attributable toowners of parent to total assets(%)
Ratio of equity attributable toowners of parent to total assets
on market value basis (%)

Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
June 2019
June 2020
June 2021
June 2022
June 2023
52.2

43.6

45.3

44.9

41.4

32.4

29.0

29.7

28.2

28.8

Interest-bearing debt to cash
flow ratio (years)

6.3

7.0

2.2

6.7

5.5

Interest coverage ratio (times)

11.7

10.9

27.8

11.8

11.4

Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners of parent / Assets
Ratio of equity attributable to owners of parent to total assets on market value basis: Total market capitalization / Assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expenses
Notes: 1. All indicators are calculated using financial figures on a consolidated basis.
2. Total market capitalization is calculated based on the number of issued shares excluding treasury shares.
3. Cash flows from operating activities are used for the cash flows.
4. Interest-bearing debt covers all debt recorded in the consolidated statement of financial position for which interest is paid.
5. Of the above indicators, those from the fiscal year ended June 30, 2020 are based on the consolidated financial statements
created in accordance with the International Financial Reporting Standards (IFRS).

(4) Future Outlook
In June 2021, we announced the long-term management strategy "NKG Global Strategy 2030", under the conceptof “Working Together toward a Future Without Boundaries.” By working together with various internal andexternal partners, we will provide new values through intellectual exploration and technological innovation andintegration. We will aim to be a corporate group that helps to bring about a society where people can actually feelrichness. We set the numerical targets for the fiscal year ending June 2030 as revenue of ¥250 billion, operating profitof ¥25 billion, operating profit margin of 10% and ROE of 15%.
To achieve these targets, the Group transitioned into a pure holding company structure on July 3, 2023. The
transition to a holding company is aimed at strengthening governance, accelerating decision-making and securing
diversity in addition to promoting autonomy and co-creation.
With regard to the business environment surrounding the Group, social and economic activities are normalizing incountries including Japan. On the other hand, however, there is an increasing risk of uncertainty in the internationalsituation such as the global energy crisis and food crisis triggered by Russia’s invasion of Ukraine, a further rise ininflation and foreign exchange fluctuations, etc. In the Consulting Business, the domestic market is expected tocontinue to secure public works budgets for national resilience, and the market is expected to expand especially inthe field of large-scale disaster preventive measures and preventive infrastructure maintenance, etc. We also
anticipate the expansion of the defense-related infrastructure business. In the overseas market, the Japanese
government strengthened the ODA budgets with “Infrastructure System Overseas Promotion Strategy 2025” as anaxis, and there is a need for restoration support in conflict-affected and disaster-stricken areas. In addition,
infrastructure development projects based on Public Private Partnership and private capital are growing. Meanwhile,
we expect that inflation, foreign exchange fluctuations and the unstable international situation will continue. In the
Urban & Spatial Development Business, the need for sustainable urban restructuring, which attracts ESG investment,
is increasing in Japan, Europe and the United States. Also, the need for the urban development business including
preparation and maintenance of transportation-related facilities and peripheral infrastructures is strong in developing
countries. In the Energy Business, demand for updating the aging existing equipment in Japan will likely be strong.
However, it is necessary to agilely cope with policy changes due to the rising global energy cost although the trendof shifting to renewable energy toward the target of carbon neutrality in 2050 remains unchanged.
Under such a market environment, as mentioned above, we are implementing three resilience policies based on the4medium-term management plan “Building Resilience 2024”(from July 2021 to June 2024).
As the first resilience policy, we will reorganize the conventional five business operations into three domains(Consulting, Urban & Spatial Development, and Energy) to strengthen the business axis. As the second resilience
policy, we will aim to strengthen corporate governance by shifting to a pure holding company structure and to realize
matrix management (management in which each business mutually collaborates with each other in each region) by
establishing a regional management system. As the third resilience policy, we will strengthen technologicaldevelopment and human resource development toward the establishment of ID&E brand and ID&E quality. Also, wewill promote “well-being management” as a basis for that.
Each of the resilience policies, materialities, and the key priority issues for the fiscal year ending June 30, 2024 are
as follows.
Materiality

Key priority issues for the fiscal year ending June 30, 2024

（Priority issues）･ Enhancement and formalization of technologies for heavy rain disaster iiiiiiiiiiii
iiicountermeasures and seismic analysis･ Aggressive development of satellite information service business(1) Development ofiiiiiiinfrastructure to protect
iiiiiisafe living･ Sophistication of infrastructure maintenance technology and Implementation of publiciiiiprivate partnership (PPP) projects
Business Strategies

Resilience Policy 1(2) Development ofiiiiiinfrastructure where alliiiiipeople can freely interactiiiiiand play an active role･ Advancement of AI flood forecasting and big data analysis technology(3) Creation of attractive citiesiiiiiwhere a diversity of peopleiiiiiand industries areiiiiiconcentrated(4) Conservation of the globaliiiiienvironment by achieving aiiiiidecarbonized society
Organizational
Strategies
Sales
Strategies

Resilience Policy 2(5) Strengthening corporateiiiiigovernance

Human Resources &Technology Strategies

Resilience Policy 3(6) A rewarding workiiiiienvironment where humaniiiiirights are respected(7) Development of humaniiiiiresources and technology･ Acquisition of technologies related to railroad O&M (operation and maintenance), andiiiexpansion of projects related to itransportation node improvement and peripheraliiidevelopment･ Implementation of MaaS model cases, and creation of air mobility-related business･ Realization of one-stop service in urban area (re)development projects in metropolitan
iiiand regional areas･ Formation of community-building projects such as smart cities and utilization of iiiiiiii
iiilittle-used or unused land through public-private collaboration･ Use and conversion of large-scale land in coastal areas

・ Establishment of a domestic aggregation business implementation system (Start ofiiiiNKRE100 verification for 100% renewable energy achieved through proprietaryiiiihydroelectric power generation for power used in the Company’s three sites from Julyiiii2023)･ Expansion of storage battery EPC business･ Strengthening of governance including enhancement of speed and agility of iiiiiiiiiiiiiii
iiidecision-making under a pure holding company structure and risk management･ Development and practical application of a system for promoting sustainability
iiiimanagement･ Development of a regional management structure to meet the diversifying needs ofiiiregions･ Promoting co-creation among business companies, among regions, and among industry,iiigovernment and academia, etc. to demonstrate the comprehensive power of the ID&E
iiiGroup･ Promotion of diversity management through raising the female ratio in management
iiipositions and promoting employment of persons with disabilities, etc.

･ Promotion of wellbeing management through health management, work style reform,iiiiietc.
･ Formulation of human resource strategy in line with the group strategy, human resourceiiidevelopment and talent management･ Promotion of DX measures with speed5

As for the fiscal year ending June 30, 2024, in the Consulting Business, centering on the Company, we will work topropel co-creation projects across fields such as river basin management, climate change, SDGs, renewable energy
and multi-hazards, develop the management business and expand the private sector, on top of increasing shares ineach of the business fields. In the Urban & Spatial Development Business, NIPPON KOEI URBAN SPACE will
strengthen the production structure by securing staff and ensuring quality management while BDP collaborates withgroup companies to develop the Asian market and expand operations in the North American market. In the Energy
Business, Nippon Koei Energy Solutions Co., Ltd., which will start operation in October 2023, will develop theenergy management business such as storage batteries and aggregation on a full-scale basis while working tostrengthen the structure of the existing energy-related consulting and engineering business and stabilize the
manufacturing business.
By promoting these initiatives, we have set the financial results forecast for the fiscal year ending June 30, 2024,
which is the final fiscal year of the medium-term management plan “Building Resilience 2024,” as sales revenue of¥156 billion (110.2% compared with the previous fiscal year), operating profit of ¥11.1 billion (182.5% comparedwith the previous fiscal year), profit attributable to owners of parent of ¥7.1billion (229.5% compared with theprevious fiscal year), and ROE of 9%2.

Basic Policy Regarding Selection of Accounting Standard
The Group has applied IFRS since the end of the fiscal year ended June 30, 2021 in order to improve the international
comparability of financial statements in capital markets and improve the quality of the group management by unifying
accounting policies.

63.

Consolidated Financial Statement and Primary Notes(1) Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

As of June 30, 2022

As of June 30, 2023

17,971
27,042
26,4503,779
8,290
83,53531,67926,81232,146
2,780
5,728
99,14741,403
9,067
10,207
7,025
6,250
2,434
3,624
6,423
2,429
1,523
90,390173,926

7(Millions of yen)

52,718
10,140
7,327
7,544
5,230
1,830
3,072
5,106
2,667
606
96,244
195,391

Liabilities and equity
Liabilities
Current liabilities
Borrowings
Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

As of June 30, 2022

As of June 30, 2023

13,1482,729
10,400
8,837
4,561
2,551
653
12,95755,84028,716
2,795
15,177
10,663
3,439
1,729
1,197
14,235
77,955

19,288
6,556
665
3,896
674
4,683
351
36,116
91,956

7,501
6,454
(34)
5,252
58,91478,0883,881
81,969173,926

8(Millions of yen)

17,385
7,753
682
3,566
94
3,961
208
33,652
111,607

7,517
6,470

6,478
60,40780,873
2,910
83,784
195,391-

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income(Consolidated Statement of Profit)

For the fiscal year
ended June 30,2022

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit of investments accounted forusing equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before tax
Income tax expense
Profit130,674(89,975)
40,699(31,610)230

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)9(Millions of yen)

For the fiscal year
ended June 30,2023

141,527(99,181)
42,346(34,611)97

1,090(1,344)
9,065
2,218
(483)
10,800(4,095)
6,704

3,677
(5,428)
6,080
1,074
(781)
6,373
(2,435)
3,937

6,579
125
6,704

3,093
844
3,937

436.98436.98205.34205.34

(Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Equity financial assets measured at fair value throughother comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

10

For the fiscal year
ended June 30,2022
6,704
(196)

(Millions of yen)
For the fiscal year
ended June 30,2023
3,937
424

(547)

(333)

(745)

92

(1)

1

6
2,757

6
1,392

2,841
2,096
8,801

1,471
1,564
5,501

8,479
321
8,801

4,611
890
5,501

77

72

(3) Consolidated Statement of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Balance as of July 1, 2021
ProfitOther comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2022
ProfitOther comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2023

Share capital

Capital surplus

Treasury shares

7,480
21
21
7,501
15
15
7,517

6,428
21
5
26
6,454
15
15
6,470

(0)
(34)
(34)
(34)
(3)
28
9
34
-

Equity attributable to owners of parent
Other components of equity

Balance as of July 1, 2021
ProfitOther comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2022
ProfitOther comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2023

Remeasurementsof defined benefit
plans

(548)
(548)
548
548
(332)
(332)
332
332
-

Total

2,820
1,900
1,900
(1)
533
531
5,252
1,517
1,517
(0)
(291)
(291)
6,478

11

Retainedearnings

53,996
6,579
6,579(1,128)(533)(1,661)
58,914
3,093
3,093
(9)
(1,882)291(1,600)60,407

Exchangedifferences ontranslation offoreign
operations

1,982
2,638
2,638
(1)
(1)
4,620
1,419
1,419
(0)
(0)
6,039

Total
70,725
6,579
1,900
8,479
42
(34)
(1,128)
3(1,116)78,088
3,093
1,517
4,611
31
(3)
28
(1,882)(0)(1,826)80,873

Cash flow hedges
(30)
6
6
(24)
6
6
(18)

Non-controllinginterests
1,569
125
195
321
(15)
2,005
1,990
3,881
844
46
890
(1,933)(67)
139(1,861)2,910

Equity financial
assets measured
at fair value
through othercomprehensive
income

867
(195)
(195)
(15)
(15)
656
424
424
(623)
(623)
457

Total
72,294
6,704
2,096
8,801
42
(34)
(1,143)
2,009
873
81,969
3,937
1,564
5,501
31
(1,933)(3)
28(1,949)139(3,687)
83,784

(4) Consolidated Statement of Cash Flows

For the fiscal year
ended June 30,2022

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Impairment losses
Gain on sale of shares of subsidiaries and associates
Interest and dividend income
Interest expenses
Share of profit (loss) of investments accounted for using equity method
Loss (gain) on derivatives
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Increase (decrease) in provisions
Other
Subtotal
Dividends received
Interest received
Proceeds from insurance income
Interest paid
Income taxes paid
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 and investment property
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale and redemption of other financial assets
Proceeds from sale of shares of subsidiaries and associates
Purchase of shares of subsidiaries and associates
Collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Capital contribution from non-controlling interests
Dividends paid
Other
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

12(Millions of yen)

For the fiscal year
ended June 30,2023

10,800
4,976
281
(513)
483
(230)
(979)
(4,581)(1,837)1,002(2,463)(1,596)
1,519
1,162
147
(8)
8,161
178
356
(410)
(3,466)
4,820

6,373
5,305
3,943
(1,061)
(495)
658
(97)
(274)
1,000
(5,305)
1,459
502
876
(1,157)
115
(64)
601
12,382
266
731
100
(729)
(4,405)
8,345

265,500(258,035)
4,985(8,331)(3,050)2,041(1,148)
(67)
1,892
(235)
17,838369
17,971

503,049(488,543)
4,149(5,448)(3,173)139(1,899)25
8,298
13,784
17,971(77)
31,679(235)(5,557)
(296)
(622)
137
(261)
(112)
(6,949)(45)
27(5,522)
(254)
(359)
1,859
1,723
(851)
558
6
(2,859)(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Segment Information)
1. Outline of reportable segments(1) Method of determination of reportable segments
Reportable segments of the Group are determined as segments whose separate financial information is accessible
from among the constituent units of the Group and are periodically used by the Board of Directors to determine
the allocation of management resources and to evaluate achievements.
The Group has business management divisions separated by types of products and services at the head office.
Each business management division formulates a comprehensive strategy based on the products and services andengages in conducting business activities.
In line with the above, the Group is composed of segments divided by products and services, with each business
management division serving as the foundation, and the three reportable segments are “Consulting”, “Urban &Spatial Development” and “Energy.”(2) Types of products and services by reportable segment“Consulting” engages in business within and outside Japan such as site surveying, planning,
evaluation/assessment, designing, and construction management. It operates in the fields of rivers and water
resources, water and sewage, agricultural and rural development, dams and power generation, transportation(roads, railroads, ports and airports), urban and regional development, geology, disaster prevention, sand control,
environment, information systems, etc.
“Urban & Spatial Development” engages in the structuring, planning, design, and operation of urban and spatial
development business.
“Energy” engages in manufacturing and sale of electric power equipment and control devices, planning, design,
construction and construction management of mechanical, electrical and communication facilities as well as theenergy management business utilizing distributed energy resources.
2. Changes in reportable segments
On July 1, 2022, the Urban & Spatial Development Business of the Company was transferred by succession to
our consolidated subsidiary TAMANO CONSULTANTS CO., LTD. through a company split (simplified
absorption-type split), and the trade name of the said company was changed to NIPPON KOEI URBAN SPACE
CO., LTD. In association with the organizational restructuring due to the relevant company split, NIPPON KOEIURBAN SPACE and its subsidiary TAMANO ECOST CO., LTD. and our consolidated subsidiary NAKAZEKAMP CO., LTD. have had their segment classification changed from the “Consulting” to the “Urban & Spatial
Development”.
Please note that segment information for the previous fiscal year is provided based on the new reporting segments.
3. Calculation methods for revenue, income or loss, assets, and other items by reportable segment
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price, etc.

13

4. Revenue, income or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended June 30, 2022

Urban & Spatial
Development

Consulting

Revenue

Revenue from external customers

Intersegment revenue and transfers
Segment profit (loss)

Subtotal

36,091

18,799129,891

75,42736,381

19,121130,930(1,474)(1,949)(595)(4,018)

(14)

-

244

230

289

7,971

Finance income

Energy75,000426

Total(Millions of yen)

Reportable Segments

2,599

322

1,290

1,038

11,861

Finance costs

Profit before tax
Other items

Depreciation and amortization
Impairment losses-

Share of profit (loss) of investments
iaccounted for using equity method
Segment assets

Increase in property, plant andiequipment, and intangible assetsi(Note 2)
Investments accounted for using equity
imethod(281)

Revenue from external customers

Intersegment revenue and transfers
Total

Segment profit (loss)
Finance income

47,72931,040134,463

82

-

2,352

2,434

1,774

1,611

783

130,674

1,564

132,494

1,820(2,794)

9,066

Consolidated-

130,674(1,820)130,674(1,820)(1)

Impairment losses

Share of profit (loss) of investments
iaccounted for using equity method
Segment assets

Increase in property, plant andiequipment, and intangible assetsi(Note 2)
Investments accounted for using equity
imethod

-

9,065

2,218

(483)

Profit before tax
Depreciation and amortization

7,036(Millions of yen)

Adjustments(Note 3)

Total

781

3,650

Finance costs
Other items(281)

55,693

Others(Note1)

Revenue-

10,800(973)(4,991)

15(4,976)

-

230

-

230

-

(281)

-

(281)

76,045

210,508(36,582)

173,926

-

2,434

-

2,434

1,180

8,217

14

-

8,217

Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues, expenses such as general and administrative expenses that do not belong to the reporting segment and companywide assets such as land, buildings and investment securities.
2. The amount of increase in property, plant and equipment, and intangible assets includes the amount of increase in right-of-use
assets and investment property, but does not include the amount of increase in association with the new consolidation.
3. “Adjustments” is mainly elimination of transaction volume and transaction balance between segments.

For the fiscal year ended June 30, 2023
Urban & Spatial
Development

Consulting

Revenue

Revenue from external customers

Intersegment revenue and transfers
Total

Segment profit (loss)
Finance income(Millions of yen)

Reportable Segments

EnergySubtotal

81,81838,071

20,855

140,745

82,341

38,68021,177142,199(1,520)(2,115)(704)(4,340)

20

-

76

97

523

608

6,599

(946)

322

2,974

1,454
8,627

Finance costs

Profit before tax
Other items

Depreciation and amortization
Impairment losses

Share of profit (loss) of investments
iaccounted for using equity method
Segment assets

Increase in property, plant andiequipment, and intangible assetsi(Note 2)
Investments accounted for using equity
imethod-(3,943)-(3,943)57,58747,66438,749144,001

103

-

1,726

1,830

1,907

2,912

15

768

5,588

Others(Note1)

Revenue

Revenue from external customers

Intersegment revenue and transfers
Total

Segment profit (loss)
Finance income

Adjustments(Note 3)

Total

782

141,527

1,758

143,958

976(2,537)(Millions of yen)

Consolidated-

141,527(2,430)141,5272,430(2,430)

6,090

(9)

Finance costs

Depreciation and amortization
Impairment losses

Share of profit (loss) of investments
iaccounted for using equity method
Segment assets

Increase in property, plant andiequipment, and intangible assetsi(Note 2)
Investments accounted for using equity
imethod

6,080
1,074

(781)

Profit before tax
Other items

-

6,373

(992)

(5,332)27(5,305)

-

97

-

97

-

(3,943)-(3,943)83,641

227,643(32,251)

195,391

-

1,830

-

1,830

401

5,990

-

5,990

Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues, expenses such as general and administrative expenses that do not belong to the reporting segment and companywide assets such as land, buildings and investment securities.
2. The amount of increase in property, plant and equipment, and intangible assets includes the amount of increase in right-of-use
assets and investment property, but does not include the amount of increase in association with the new consolidation.
3. “Adjustments” is mainly elimination of transaction volume and transaction balance between segments.

5. Information by product and service
Statement is omitted, as similar information is disclosed in “4. Revenue, income or loss, assets, liabilities, andother items by reportable segment”(Per Share Information)
For the fiscal year ended
June 30, 2022

For the fiscal year ended
June 30, 2023

Profit attributable to owners of parent (Millions of yen)

6,579

3,093

Weighted-average number of shares of common stock(Shares)

15,056,069

15,064,420

436.98205.34

Basic earnings per share (Yen)

Diluted earnings per share are not included because there are no potential shares.

16

(Significant Subsequent Events)
1. The Company resolved at its Board of Directors meeting on August 9, 2023, to have Integrated Design &Engineering Holdings Co., Ltd. (“Holdings Co.”) succeed the Company’s real estate management business andmanagement of shares of subsidiaries and associates based on the absorption-type demerger (hereinafter, the“Absorption-type Demerger”) effective October 1, 2023 (scheduled). Accordingly, the Company and Holdings
Co. entered into the Absorption-type Demerger Agreement on August 14.
(1) Matters concerning the counterparty of the Absorption-type Demerger
A. Company name, location of the head office, name of the representative, amount of share capital, amount of
net assets, amount of total assets and description of businessCompany name
Integrated Design & Engineering Holdings Co., Ltd.
Location of head office 5-4 Kojimachi, Chiyoda-ku, Tokyo
Name of representative Hiroaki Shinya, Director and Representative Executive President
Amount of share capital 7,522 million yen
Amount of net assets
To be determined
Amount of total assets
To be determined
Description of business Management of business actives and related thereto of group companies
B. Revenue, operating profit, ordinary profit, and net profit of the fiscal years ended in the most recent three
years
Since Holdings Co. was established on July 3, 2023, there is no financial position or operating results for thelatest fiscal year.
C. Chief shareholders and percentage of shares held against total number of issued shares
Name of chief shareholder
Percentage of shares
held by chiefshareholder (%)
MASTER TRUST BANK OF JAPAN, LTD. (TRUST ACCOUNT)
12.23
ID& E EMPLOYEE STOCK OWNERSHIP PLAN
7.10
CUSTODY BANK OF JAPAN, LTD. (TRUST ACCOUNT)
6.88
MUFG BANK, LTD.
4.91
MEIJI YASUDA LIFE INSURANCE CO., LTD.
3.74
MIZUHO BANK LTD.
2.53
CUSTODY BANK OF JAPAN, LTD. (PENSION TRUST ACCOUNT)
2.38
RE FUND 107－CLIENT AC
2.07
DFA INTERNATIONAL SMALL CAP VALUE PORTFOLIO
1.84
GOVERNMENT OF NORWAY
1.61
D. Capital, personnel and business ties with the reporting company
Capital ties
Holdings Co. holds all of the issued shares of the Company.
Personnel ties
Some officers concurrently hold posts in both companies.
Business ties
The Company and Holdings Co. have concluded outsourcing agreements, etc.
(2) Objectives of the Absorption-type Demerger
To deepen group management from a medium- to long-term perspective and to ensure future growth towardachieving the long-term management strategy of the Group, we established Holdings Co. as a wholly owned
parent company through a share transfer on July 3, 2023, and transitioned into a holding company structure by17

splitting part of the Company’s businesses. In addition, to facilitate management of the Group going forward,
we decided to implement the Absorption-type Demerger with the Company being the Splitting Company andHoldings Co. being the Successor Company for the Company’s real estate management business andmanagement of shares of subsidiaries and associates.
(3) Method of the Absorption-type Demerger, allotment related to the Absorption-type Demerger and other detailsof the Absorption-type Demerger Agreement
A. Method of the Absorption-type Demerger
This is an absorption-type demerger in which the Company is the Splitting Company and Holdings Co. is the
Successor Company.
B. Allotment related to the Absorption-type Demerger
As Holdings Co. holds all of the Company’s shares, there is no allotment of shares or other monetary items
under the Absorption-type Demerger.
C. Other details of the Absorption-type Demerger Agreementa) Schedule of the Absorption-type Demerger and related procedures
Board of Directors meeting (the Company) to approve the Absorption-typeAugust 9, 2023

Demerger Agreements

Board of Directors meeting (Holdings Co.) to approve the Absorption- August 14, 2023
type Demerger Agreement
Conclusion of the Absorption-type Demerger Agreement (the Company August 14, 2023
and Holdings Co.)
Effective date of the Absorption-type Demerger
October 1, 2023 (scheduled)

Note: Since the Absorption-type Demerger falls within the category of a simple demerger specified in Article 784, Paragraph
1 of the Companies Act for the Company and corresponds to a simplified absorption-type demerger set out in Article
796, Paragraph 2 of the Companies Act for Holdings Co., it is put into effect without holding shareholders’ meetings
for approval for the Absorption-type Demerger, respectively.

b) Increase in share capital due to the Absorption-type Demerger
There will be no increase in the share capital of Holdings Co. associated with the Absorption-type Demerger.
c) Handling of stock acquisition rights and corporate bonds with stock acquisition rights associated with theAbsorption-type Demerger
There is no relevant information.
d) Rights and obligations to be handed over to the Successor Company
Among the rights and obligations of the Company associated with its real estate management business andmanagement of shares of subsidiaries and associates, Holdings Co. shall take over those set out in theAbsorption-type Demerger Agreement associated with the Absorption-type Demerger.
(4) Rational for the calculation of shares in the Absorption-type Demerger
There is no relevant information.

18

(5) Name of the company that becomes the Successor Company after the Absorption-type Demerger, location of
the head office, name of representative, amount of share capital, amount of net assets, amount of total assets anddescription of businessCompany nameLocation of head office
Name of representative
Amount of share capital
Amount of net assets
Amount of total assets
Description of business

Integrated Design & Engineering Holdings Co., Ltd.
5-4 Kojimachi, Chiyoda-ku, Tokyo
Hiroaki Shinya, Director and Representative Executive President
7,522 million yen
To be determined
To be determinedManagement of business actives and related thereto of group companies

2. At the Board of Directors meeting on August 9, 2023, the Company resolved the proposal on the decrease inamounts of share capital and legal capital surplus and the disposal of other surplus, and the proposal was approvedby the extraordinary shareholders’ meeting (written resolution) on August 14.
(1) Objectives
The objectives are to pursue the optimal capital strategy and financial strategy for group management and toenhance the shareholder value of Holdings Co..
(2) Summary of decrease in amounts of share capital and legal capital surplus
A. Amount of decreasea) Share capital
Before capital reduction 7,517 million yen After capital reduction 500 million yenb) Legal capital surplus
Before capital reduction 6,216 million yen After capital reduction 125 million yen
B. Summary
This will be a so-called reduction of capital without compensation that does not involve repayment toshareholders for both share capital and legal capital surplus. There is no change to the total number of sharesissued, and the total amount of decrease in share capital and legal capital surplus of ¥13,108 million will betransferred to “Other capital surplus.”(3) Changes in retained earnings and other earnings
A. Items to decrease and the amount
Legal retained earnings
1,546 million yen
Voluntary retained earnings 24,287 million yen(breakdown: Reserve for market development 1,920 million yen, General reserve 22,367 million yen)
B. Items to increase and the amount
Retained earnings brought forward 25,833 million yen(4) Schedule for this treatment
Board of Directors meeting to approve the treatment

Resolution (written resolution) of the shareholders’ meeting toapprove the treatment
Date of execution (effective date)

19

August 9, 2023
August 14, 2023
September 30, 2023 (scheduled)

4.

Other

(1) Status of Orders and Sales

Category/Segment

By period_

Orders received

Consulting

Urban & Spatial Development
EnergyOthersFor the fiscal year ended
June 30, 2022
AmountComposition(%)(Millions of yen)

For the fiscal year ended
June 30, 2023
AmountComposition(%)(Millions of yen)

84,71764.6 (Note 1) 77,712

55.8

14,34310.9

13.5

31,981
123

24.4

42,5660.1

158

18,827

30.6
0.1

Total

131,166

100.0

139,265

100.0

Urban & Spatial Development

34,787

26.6

38,072

26.9

Revenue 1

Consulting
EnergyOthers80,29961.5

14,804

11.3

783

0.6

85,333
17,339
782

60.2
12.3
0.6

Total

130,674

100.0

141,527

100.0

Urban & Spatial Development

36,091

27.6

38,071

26.9

Revenue 2

Consulting
EnergyOthersTotal

57.4

18,79914.4

783

By period_

Foreign exchange andother adjustments

Category/Segment

75,000Consulting

Urban & Spatial Development
EnergyOthersTotal

0.6

130,674

100.0

For the fiscal year ended
June 30, 2022
AmountComposition(%)(Millions of yen)
6,761

81,81820,855782

141,527

57.8
14.7
0.6

100.0

For the fiscal year ended
June 30, 2023
AmountComposition(%)(Millions of yen)
2,373

1,758

2,387

(2)

90

-

-

8,518

4,852

140,734

72.4

135,807

68.3

Energy23,00411.8

25,495

12.8

Outstanding Orders

Consulting

Urban & Spatial Development
OthersTotal

30,76915.8--

194,508

100.0

37,651
1

198,956

18.9
0.0

100.0

Notes: 1. The above amounts include the outstanding orders at the start of consolidation of ASAP MOBILITY SDN. BHD. which wasconsolidated from the current fiscal year.
2. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
3. Revenue 1 is by segment which received orders. Revenue 2 is by segment which provided services.
4. Foreign exchange and other adjustments include those related to exchange differences and outstanding order revisions.
5. As disclosed in "3. Consolidated Financial Statement and Primary Notes (5) Notes to Consolidated Financial Statements(Segment Information) 2 Changes in reportable segments," the Group has changed its reportable segments since the current
fiscal year. The figures for the previous fiscal year have been provided based on the new reporting segments.

20