Consolidated Financial Results
for the Fiscal Year Ended June 30, 2016
[Japanese GAAP]
August 12, 2016
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english
Representative: Ryuichi Arimoto, Representative Director and President
Contact: Toshihide Hattori, General Manager, Accounting Department
Phone: +81-3-3238-8040
Scheduled date of holding general shareholder’s meeting: September 29, 2016
Scheduled date of commencing dividend payments: September 9, 2016
Scheduled date of filing securities report: September 30, 2016
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, 2016 (July 1, 2015 to June 30, 2016)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)Net sales
Fiscal year ended

Operating income

Ordinary income

Profit attributable toowners of parent
Million yen%

Million yen%

Million yen%

Million yen%

June 30, 2016

81,865

0.0

4,723

4.9

4,365

(20.3)

1,823(57.2)

June 30, 2015

81,839

3.3

4,502

5.8

5,477

20.6

4,261

42.1

(Note) Comprehensive income: Fiscal year ended June 30, 2016: ¥(924) million [ - %]Fiscal year ended June 30, 2015: ¥6,032 million [42.9%]
Net income
per share
Yen

Diluted net
income per share
Yen

June 30, 2016

23.82

June 30, 2015

56.01

Fiscal year ended

Return on equity

Return on assets%%

Operating income
on Net sales
%

-

3.5

4.7

5.8

-

8.5

6.8

5.5

(Reference) Income from investment in affiliates (Equity method): Fiscal year ended June 30, 2016: Fiscal year ended June 30, 2015: (2) Consolidated Financial Position
Total assets
Fiscal year ended

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

June 30, 2016

100,989

51,46050.6

665.31

June 30, 2015

84,11052,98162.6

690.09(Reference) Equity: Fiscal year ended June 30, 2016: ¥51,122 million
Fiscal year ended June 30, 2015: ¥52,644 million(3) Consolidated Cash Flows

Million yen

Million yen

Million yen

Cash and cash
equivalents at end of
periodMillion yen

June 30, 2016

379

(17,705)

15,1999,400

June 30, 2015

881

2,702

(745)

11,673

Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash flows fromfinancing activities

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

Year-end

Total

Total dividends
paid (annual)on netPayout ratio Dividend
assets ratio(consolidated) (consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Fiscal year ended June 30, 2015

-

-

-

10.00

10.00

772

17.9

1.5

Fiscal year ended June 30, 2016

-

-

-

10.00

10.00

771

42.0

1.5

Fiscal year ending June 30, 2017
(Forecast)

-

-

-

75.00

75.00

32.0

(Notes)(1) “Total dividends paid (annual)” includes dividends on the Company’s shares held by the Employee ShareOwnership Plan (ESOP) trust.
(2) The Company is planning to implement a share consolidation in a rate of one share for every five shareseffective January 1, 2017. “Year-end Dividends per share” at the end of fiscal year ending June 30, 2017
(Forecast) is listed the figure calculated by considering the effect of the planned share consolidation. If theeffect of the planned share consolidation is not taken into account, “Year-end Dividends per share” at the endof fiscal year ending June 30, 2017 (Forecast) is projected to be 15.00 yen. For details, please refer to No.2
under “* Explanation of the proper use of financial results forecast and other notes”.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2017 (July 1, 2016 to June 30,
2017)(% indicates changes from the previous fiscal year.)Net sales

Full year

Operating income

Ordinary income

Profit attributable toowners of parent

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

105,000

28.3

6,000

27.0

6,300

44.3

3,600

97.5

234.25(Note) “Net income per share” of full year in the Consolidated Financial Results Forecast for the Fiscal YearEnding June 30, 2017 is calculated by considering the effect of the share consolidation. If the effect of theshare consolidation is not taken into account, “Net income per share” of full year in the Consolidated
Financial Results Forecast for the Fiscal Year Ending June 30, 2017 is projected to be 46.85 yen. For
details, please refer to “* Explanation of the proper use of financial results forecast and other notes”.
* Notes:(1) Changes in significant subsidiaries during the fiscal year ended June 30, 2016 (changes in specified
subsidiaries resulting in changes in scope of consolidation): Yes
New:
2 (BDP HOLDINGS LIMITED, BUILDING DESIGN PARTNERSHIP LIMITED)
Excluded: (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
Fiscal year ended June 30, 2016 : 86,656,510 sharesFiscal year ended June 30, 2015 : 86,656,510 shares2) Total number of treasury stock at the end of the period:
Fiscal year ended June 30, 2016 :9,816,140 sharesFiscal year ended June 30, 2015 : 10,370,910 shares
3) Average number of shares during the period:
Fiscal year ended June 30, 2016 : 76,544,407 sharesFiscal year ended June 30, 2015 : 76,077,020 shares

(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2016 (July 1, 2015 to June 30, 2016)(1) Nonconsolidated Operating Results(% indicates changes from the previous fiscal year.)
Fiscal year ended
June 30, 2016
June 30, 2015

Net sales
Million yen%
60,327(0.2)
60,471
2.0

Operating income
Million yen
%
3,275
2.7
3,190
3.0

Net income
per share

Diluted net
income per share
Yen-

Fiscal year ended
June 30, 2016
June 30, 2015

Yen
21.92
75.11

(2) Nonconsolidated Financial Position
Total assets
Net assets
Fiscal year ended
Million yen
Million yen
June 30, 2016
83,673
48,112June 30, 2015
73,391
48,691(Reference) Equity: Fiscal year ended June 30, 2016: ¥48,112 million
Fiscal year ended June 30, 2015: ¥48,691 million

Ordinary income
Million yen%
3,548 (42.3)
6,146
53.7

Net income
Million yen%
1,678 (70.6)
5,714 159.9

Equity ratio

Net assets per share
%

Yen

57.5
66.3

626.14638.28

2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2017 (July 1, 2016 toJune 30, 2017)(% indicates changes from the previous fiscal year.)Net sales
Full year

Million yen
63,000Ordinary income%
4.4

Million yen
3,600

%
1.5

Net income
per share

Net income
Million yen
2,100

%
25.1

Yen
136.65(Note) “Net income per share” of full year in the Nonconsolidated Financial Results Forecast for the Fiscal YearEnding June 30, 2017 is calculated by considering the effect of the share consolidation. If the effect of the shareconsolidation is not taken into account, “Net income per share” of full year in the Nonconsolidated Financial
Results Forecast for the Fiscal Year Ending June 30, 2017 is projected to be 27.33 yen.
* Presentation regarding the implementation status of audit proceduresThis Consolidated Financial Results is exempt from the audit stipulated in the Financial Instruments and ExchangeAct. The audit procedures for financial statements based on the stipulations of said Act have not been completed at
the time of disclosure of this Consolidated Financial Results.
* Explanation of the proper use of financial results forecast and other notes
1. The earnings forecasts and other forward-looking statements disclosed herein are based on information available
to the Company as of the date of publication of this document and certain assumptions deemed reasonable.
Actual results, etc. may differ significantly due to a wide range of factors. With regard to the assumptions andother related matters concerning forecasts for the fiscal year ending June 30, 2017, refer to “(1) Analysis ofConsolidated Operating Results” under “1. Analysis of Operating Results and Financial Position” on page 2,
contained in the attached documents
2. At the meeting of the Board of Directors held on August 12, 2016, the Company resolved to present a proposal
concerning a share consolidation at the 72nd general shareholders’ meeting to be held on September 29, 2016.
Subject to approval at the shareholders’ meeting, a share consolidation in a rate of one share for every five shares
will be implemented on January 1, 2017 as the effective date. Also the Company is planning to decrease the sizeof the Share Unit from 1,000 shares to 100 shares on the same date.
When the share consolidation is not taken into account, forecast of dividends and Consolidated
Financial Results for the Fiscal Year Ending June 30, 2017 are as follows:(1) Dividend Forecast for the Fiscal Year Ending June 30, 2017
Year-end Dividends per share
15.00 yen
(2) Consolidated Financial Results Forecasts for the Fiscal Year Ending June 30, 2017
Net income per share of full year 46.85 yen
3. The Company will hold a financial results briefing session for institutional investors and securities analysts on
August 23, 2016. After the session, supplementary briefing material on financial results will be published on the
Company’s website.

Table of Contents of Attached Documents
1. Analysis of Consolidated Operating Results and Financial Position .............................................................. 2(1) Analysis of Consolidated Operating Results .............................................................................................. 2(2) Analysis of Consolidated Financial Position .............................................................................................. 5
2. Management Policies ...................................................................................................................................... 5(1) Basic Management Policies ........................................................................................................................ 5(2) Target Management Indicators ................................................................................................................... 5(3) Medium- and Long-Term Business Strategies ........................................................................................... 5(4) Issues to be Addressed ................................................................................................................................ 6
3. Basic Policy Concerning Choice of Accounting Standards ............................................................................ 7
4. Consolidated Financial Statements ................................................................................................................. 8(1) Consolidated Balance Sheets ...................................................................................................................... 8(2) Consolidated Statements of Income and Comprehensive Income ........................................................... 10(3) Consolidated Statements of Changes in Net Assets ................................................................................. 11(4) Consolidated Statements of Cash Flows .................................................................................................. 13(5) Notes to the Consolidated Financial Statements ...................................................................................... 15(Notes on Going Concern Assumption) .............................................................................................. 15(Changes in Accounting Policies) ....................................................................................................... 15(Segment Information, etc.) ................................................................................................................. 16(Per Share Information) ....................................................................................................................... 22(Significant Subsequent Events) .......................................................................................................... 22
5. Other ............................................................................................................................................................. 23(1) Status of Production, Orders and Sales .................................................................................................... 23(2) Changes in Corporate Officers ................................................................................................................. 24

1

1. Analysis of Consolidated Operating Results and Financial Position(1) Analysis of Consolidated Operating Results
1) Consolidated operating results for the current period
During the fiscal year under review (from July 1, 2015 to June 30, 2016), the Japanese economy stayed on amoderate recovery path. The employment and income condition remained steady despite of some weakness inpersonal consumption, and capital investment was on a recovery trend in line with improved corporate
profitability. Meanwhile, there was heightened uncertainty over the future due to the sharp appreciation of the
yen and low stock prices following the Brexit decision in June.
With regard to the business environment of Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), the Domestic Consulting Operations is on a recovery trend due to the front-load
implementation of government budgets after April, despite a moderate decline in public investments.
Furthermore, the budget increased for local municipalities in accordance with regional revitalization policies,
while demand increased in areas including the maintenance and management businesses for facilities under thePlan for Extending the Lifespan of Infrastructure, preparation of facilities and the disaster prevention anddisaster mitigation business for the Tokyo Olympics. In the International Consulting Operations, the market
remained stable. Contributing factors included the maintenance of a certain volume of Official Development
Assistance (“ODA”) projects by Japan, on the back of the Japanese government’s strategy to export
infrastructure, development demand among emerging markets in Asia and other parts of the world, and strong
demand for private investment in development. In the Power Engineering Operations, increases were seen in
the areas of investment aimed at putting distribution networks in place for electric power companies anddemand for renewal and new construction of hydroelectric power generation facilities taking advantage of the
Feed-in Tariff (“FIT”) Scheme. On the other hand, environment in terms of obtaining orders became severer
because of the intensified competition for orders at electric power companies, which constitute our major
customer.
Under such circumstances, based on the Medium-Term Management Plan NK-AIM (from July 2015 to June2018), with the fundamental principles of “Sustainable growth of 3 core businesses” and “Generation andexpansion of new business,” the Group has been engaged in the three key challenges of “Further evolution of
global expansion” “Further expansion of business fields and improvement of profitability by intensifying
existing core businesses,” and “Demonstrating true merit of aggregated technologies for establishment of new
business domains.” As companywide measures to realize these goals, the Group actively engaged in“Development of next-generation core technologies, and further improvement of technical strengths andproductivity,” “Strengthening of human resource recruitment and training,” and “Promotion of collaborationand enhancement of corporate governance.”
In particular, in line with the basic policy of “Generation and expansion of new business,” we made the UKarchitectural design company BDP HOLDINGS LIMITED into a wholly-owned subsidiary, developed and put
into operation the small-scale hydroelectric power generation business, deployed a dispersed power generation
business in the Philippines, decided to participate in Tigris Water Partnership, and actively made investments.
In addition, in order to enhance the corporate governance system through strengthening the supervisory
functions and ensuring transparency of the management system, and establishing a swift operational structure,
the Group formulated the Basic Policy on Corporate Governance and decided on an organizational reform
including the establishment of the Nominating and Compensation Advisory Committee.
As a result, for the fiscal year ended June 30, 2016, orders received were ¥84,827 million, the same level as
the previous fiscal year. Added with ¥16,251 million of the outstanding orders of BDP HOLDINGS LIMITEDand its subsidiaries (hereinafter, collectively referred to as “BDP”) of which only the balance sheets have been
consolidated from the current consolidated fiscal year, orders received amounted to ¥101,079 million, up
15.4% year on year. Net sales were ¥81,865 million, the same level as the previous fiscal year.
In terms of profit, operating income was ¥4,723 million, an increase of 4.9% year on year, ordinary income2decreased by 20.3% year on year to ¥4,365 million as a result of foreign exchange losses, and profit
attributable to owners of parent decreased by 57.2% year on year to ¥1,823 million as a result of a reboundfrom the gain on sales of property, plant and equipment that was recorded during the previous fiscal year.
Business results by segment of the Group are as follows.
[Domestic Consulting Operations]
In the Domestic Consulting Operations, amid a decline in consulting-related business for reconstruction
following the Great East Japan Earthquake, we expanded business domains and market share by defining
priority business areas, improved profitability through the restructuring of operational processes, and promoted
the active utilization of alliances. Specifically, for the priority business areas, we set 41 key businesses in theseven fields of “disaster prevention and disaster mitigation,” “maintenance and management,” “infrastructure
management,” “use of intellectual property,” “project management and construction management,”“environment and regional revitalization,” and “other businesses,” and executed strategies to expand market
share, strategies to establish competitive advantages, and strategies to create markets based on the level ofcompetitive strength in each of these businesses.
As a result of the above, orders received decreased by 2.1% year on year to ¥44,109 million, net sales
decreased by 2.6% year on year to ¥40,778 million, operating income increased by 8.6% year on year to¥2,956 million and ordinary income increased by 8.7% year on year to ¥2,965 million.
[International Consulting Operations]
In the International Consulting Operations, the Group established locally-based order receiving andconstruction systems in the four regions of Asia, the Middle East and North Africa, Sub-Saharan Africa, andLatin America, secured a stable business foundation through the expansion of share in Official Development
Assistance (“ODA”) projects by Japan, and expanded business scale in urban development business andPublic-Private Partnership (“PPP”) business. In particular, we focused on receiving orders from Japan
International Cooperation Agency (“JICA”) project and large-scale yen loan projects while making efforts tofurther strengthen product management and production structures in the railway consulting business.
As a result of the above, orders received decreased by 10.2% year on year to ¥25,936 million due to delays
in concluding large-scale projects, net sales increased by 9.4% year on year to ¥22,070 million, and operating
income increased by 305.3% year on year to ¥1,156 million. However, as a result of the sharp appreciation of
the yen at the end of the fiscal year, ordinary income decreased by 36.9% year on year to ¥382 million.
[Power Engineering Operations]
In the Power Engineering Operations, in the face of intensifying competition due to reductions in capital
investment and repair costs among electric power companies that constitute our main customer, we worked toincrease cost competitiveness through thorough cost reductions, strengthen sales and marketing capabilities
through proposing cost reduction plans, enhance cooperation within the group (e.g. fusion and cooperation
among the business areas of consulting, products and construction), promote product and technology
development, and reinforce and expand the mechanical and electromechanical consulting division. In particular,
as a result of thorough cost reductions and their proposals, we worked to secure renewal demand for powertransmission equipment and capture renewal and new demand for hydroelectric power generation facilities
taking advantage of the FIT Scheme.
As a result of the above, orders received increased by 8.2% year on year to ¥14,716 million, net sales
decreased by 1.9% year on year to ¥17,522 million, operating income increased by 7.5% year on year to¥3,048 million and ordinary income increased by 8.0% year on year to ¥3,024 million.

3

[Urban & Spatial Development Operations]
In the Urban & Spatial Development Operations, BDP became a consolidated subsidiary of the Company
from the current consolidated fiscal year, consolidating only the balance sheets. The outstanding order of BDP
at the beginning of consolidation was ¥16,251 million.
[Real Estate Leasing Operations]
In the Real Estate Leasing Operations, due to the sale of real estate for leasing during the previous fiscal
year, net sales decreased by 37.3% year on year to ¥514 million, operating income decreased by 33.9% year on
year to ¥386 million and ordinary income decreased by 34.8% year on year to ¥384 million.

2) Outlook for the next fiscal year
In the Domestic Consulting Operations, while the public works budget is expected to remain unchanged
from the initial budget, temporary increases are expected from the supplementary budget for economic
measures. In the International Consulting Operations, an increase in demand is expected in line with theJapanese government’s Initiative to Expand the Export of High-Quality Infrastructure, which aims to globally
expand the supply of risk money for infrastructure projects, accelerate yen loans, promote investment andfinancing for private-sector enterprises, and promote improvements in grants-in-aid system and its operations.
In the Power Engineering Operations, demands for repair accompanying the degradation of existing power
facilities and renewal and new demands for hydroelectric power generation facilities taking advantage of the
FIT Scheme is expected. In the Urban & Spatial Development Operations, while the impact of the Brexit isunclear, infrastructure demand centered on Asia is expected to continue, and development demand is expected
for the development of areas near urban railway stations and lines, airport terminals accompanying increased
airline demand, and facilities such as houses, hotels, and commercial facilities funded by private-sector funds.
Under such circumstances, from the fiscal year ending June 30, 2017, the second year of the Medium-Term
Management Plan NK-AIM, by adding “Autonomy and collaboration” to the fundamental principles of“Sustainable growth of 3 core businesses” and “Generation and expansion of new business,” the Group will
engage in the three key challenges of “Further evolution of global expansion,” “Further expansion of businessfields and improvement of profitability by intensifying existing core businesses,” and “Demonstrating true
merit of aggregated technologies for establishment of new business domains.” As companywide measures torealize these goals, the Group will actively engage in “Development of next-generation core technologies, andfurther improvement of technical strengths and productivity,” “Strengthening of human resource recruitment
and training,” and “Promotion of collaboration and enhancement of corporate governance.”
The forecasts for consolidated business results for the fiscal year ending June 30, 2017 are net sales of¥105.0 billion, operating income of ¥6.0 billion, ordinary income of ¥6.3 billion, and net income of ¥3.6 billion.

4(2) Analysis of Consolidated Financial Position
Cash and cash equivalents at the end of the fiscal year under review was ¥9,400 million, a decrease of ¥2,272
million from the end of the previous fiscal year. The primary factors were as follows.
Net cash provided by operating activities was ¥379 million (a net inflow of ¥881 million during the previous
fiscal year). This cash inflow was primarily due to income before income taxes and non-controlling interests of¥4,032 million and proceeds from the collection of notes and accounts receivable - trade, meanwhile it waspartially offset by payments for head office transfer cost.
Net cash used in investing activities was ¥17,705 million (a net inflow of ¥2,702 million during the previous
fiscal year). This cash outflow was primarily due to the acquisition of stocks of BDP HOLDINGS LIMITED.
Net cash provided by financing activities was ¥15,199 million (a net outflow of ¥745 million during theprevious fiscal year). This cash inflow was primarily due to an increase in short-term loans payable.
(Reference) Trends in Cash Flow-related Indicators
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
March 2013
June 2013
June 2014
June 2015
June 2016
Equity ratio (%)

55.0

60.8

62.4

62.6

50.6

Equity ratio on market value basis (%)

34.5

39.2

50.0

43.7

23.6

Interest-bearing debt-to-cash flow
ratio (years)

3.1

0.2

1.8

1.9

46.1

Interest coverage ratio (times)

73.7

1,519.0

29.3

18.0

7.1

2. Management Policies(1) Basic Management Policies
The Group, under the mission of realizing the value contained in the management philosophy of “Act withintegrity & Contribute to society through technology and engineering,” has defined the specific goals of theGroup in the Group Vision of “To provide services that are of value in building safe and reliable social
infrastructure and comfortable living space.”
Under the Long-Term Management Strategy (July 2015 to June 2021), our basic policy is to “Continue
evolution into global consulting & engineering firm” based on this Group Vision.
(2) Target Management Indicators
Under the Long-Term Management Strategy (from July 2015 to June 2021), the Group has defined its
business targets for the fiscal year ending June 30, 2021, to be net sales of ¥140.0 billion, operating income of¥14.0 billion, and return on equity (“ROE”) of 10.0%.
Based on the “Medium-Term Management Plan NK-AIM (Advance globally, Intense efforts in Japan and
Demonstrating true merit)” (from July 2015 to June 2018), formulated to realize the above Long-Term
Management Strategy targets, business targets for the fiscal year ending June 30, 2018, with the addition of
Urban & Spatial Development Operations composed of BDP and Kisho Kurokawa Architect & Associates Co.,
Ltd. (hereinafter referred to as “Kurokawa Architect & Associates”) as new businesses, are set at net sales of¥115.0 billion, operating income of ¥7.4 billion, and ROE of 7.5%.
(3) Medium- and Long-Term Business Strategies
The Group has positioned the next three years (from July 2015 to June 2018) as an important period toserve as a springboard for the future, and has formulated and implemented the “Medium-Term Management
Plan (NK-AIM: Advance globally, Intense efforts in Japan and Demonstrating true merit).”
From the fiscal year ending June 30, 2017, the second year of the Medium-Term Management Plan NK5

AIM, by adding “Autonomy and collaboration” to the fundamental principles of “Sustainable growth of 3 corebusinesses” and “Generation and expansion of new business,” the Group will engage in the three key
challenges of “Further evolution of global expansion,” “Further expansion of business fields and improvementof profitability by intensifying existing core businesses,” and “Demonstrating true merit of aggregatedtechnologies for establishment of new business domains.”
As companywide measures to realize these goals, the Group will actively engage in “Development of nextgeneration core technologies, and further improvement of technical strengths and productivity,”“Strengthening of human resource recruitment and training,” and “Promotion of collaboration andenhancement of corporate governance.”(4) Issues to be Addressed
Under the Medium-Term Management Plan NK-AIM, the following key strategic business challenges
and companywide measures will be implemented.
1) Key strategic business challenges
In the Domestic Consulting Operations, the Company will expand its business domain and share bydefining priority businesses, proceed restructuring of the operational processes for higher profitability,and enhance active utilization of alliances.
In the International Consulting Operations, the Company will secure a stable business foundation
through expansion of share in the Japanese ODA, expand business scale in urban development businessand PPP business, and further strengthen its locally-based structures for order-receiving and construction.
In the Power Engineering Operations, the Company will increase cost competitiveness and strengthen
sales and marketing capabilities, enhance cooperation within the group (e.g. fusion and cooperation
among the business areas of consulting, products and construction), promote product and technology
development, and reinforce the mechanical and electromechanical consulting division.
In the new operations, in an aim for the growth of BDP and Kurokawa Architect & Associates thatcompose the Urban & Spatial Development Operations, we will work towards the sustainable expansion ofbusinesses in the UK, expand overseas business locations, and promote cooperation within the Group in
Japan and Asia. In addition, we will strive for further business expansion by transferring the Building
Information Modeling (BIM) technologies held by BDP to each Group company.
In other new operations, the Company will focus on entering new markets through efforts such as theformulation of asset holding-type business both in Japan and overseas, the promotion of energy
businesses including small-scale hydroelectric power generation and thermal power generation, andparticipation in the privatization of water supply, road, airports, and other forms of infrastructure.
2) Companywide measures to support its growth
For “Development of next-generation core technologies, and further improvement of technical strengths
and productivity,” the Company will proceed to develop its technologies with taking global
environmental change into account, develop fundamental technologies for the next-generation of Smart
Society, improve technology services, refine project management methods, secure product quality andincrease profitability through the improvement of production processes. In addition, the Company will
work to secure and develop human resources with the view that internal human resources are important
assets.
For “Strengthening of human resource recruitment and training,” the Company will adopt the limitationof work locale and offer year-round hiring of exchange students, etc. to support various work styles,
reestablish development systems, optimize the allocation of resources, and work towards reforming
evaluation systems and compensation systems.
For “Promotion of collaboration and enhancement of corporate governance,” the Company will
establish companywide marketing functions, improve the workplace especially through construction of
the new headquarters building, strengthen the supervisory functions and ensure transparency of the
management system, and establish a swift operational structure.

63. Basic Policy Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among
companies, the Group prepares its consolidated financial statements using Japanese GAAP. With regard to
application of International Financial Reporting Standards (“IFRS”), the Group’s policy is to respond
appropriately based on consideration of the situation in Japan and overseas.

7

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of June 30, 2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Deferred tax assets
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
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

As of June 30, 2016

12,14816,802
11,398
1,423
3,059
(12)
44,82011,174
17,715
12,253
995
4,022
(8)
46,153

17,868(11,843)
6,025
2,693
(2,183)510
2,671(2,362)308
17,333
269
(173)
96
251
24,525

18,685(12,605)
6,079
2,662
(2,217)444
5,298(4,757)
540
17,332
169
(87)
81
81
24,561570
570

10,312
6,308
16,620

9,861
922
1,217
2,555
(364)
14,19339,28984,110

8,285
1,914
1,153
2,460
(160)
13,65454,836
100,989

(Million yen)
As of June 30, 2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

9

As of June 30, 2016

4,539
164
1,508
8,655
1,019
84
110
8,384
24,466

5,105
16,000
266
808
8,181
983
82
59
11,62043,107

1,526
2,110
59
34
2,128
803
6,662
31,128

1,260
1,917
45
34
2,554
609
6,421
49,5297,393
6,209
39,770(3,205)50,167

7,393
6,209
40,821(3,020)51,403

1,659
(100)
917
2,476
337
52,981
84,110

(8)
(301)
28
(280)
337
51,460100,989

(2) Consolidated Statements of Income and Comprehensive Income(Million yen)
For the fiscal year
ended June 30, 2015
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on sales of investment securities
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
State subsidies
Gain on sales of property, plant and equipment
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Loss on reduction of property, plant and equipment
Head office transfer cost
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
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, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10

For the fiscal year
ended June 30, 2016

81,83960,054
21,785
17,283
4,502

81,86559,50522,35917,636
4,723

77
363
527
168
1,137

114
228
343
153
839

48
92
20
161
5,477

58
951
172
14
1,197
4,365

2,627
45
2,673

42
42

37

99

548
586
7,564
2,373
892
3,266
4,298

38
237
375
4,032
1,508
670
2,178
1,853

4,261
36

1,823
30

294
176
76
1,187
1,733
6,032

(1,666)(223)(888)(2,778)
(924)

5,983

(933)

48

8

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended June 30, 2015
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

7,393

Capital surplus Retained earnings Treasury shares
6,209

36,366

7,393

6,209

(645)

35,721(3,344)45,979

366

366

(579)

(579)

4,261

4,261

Dividends of surplus

Balance at end of current
period46,624(645)

Changes of items during
periodChange of scope of
consolidation
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period(3,344)

Total
shareholders’equity

(10)

(10)

149

149

－

－

4,048

139

4,188

7,393

6,209

39,770(3,205)50,167

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

1,364

Deferred
gains orlosses onhedges(176)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

(13)

(269)

Total
accumulated
othercomprehensive
income905

Noncontrollinginterests

Total net
assets304

47,835
(645)

1,364

(176)

(13)

(269)

905

304

47,190

(151)

52

267

Changes of items during
periodChange of scope of
consolidation(151)

Dividends of surplus(579)

Profit attributable toowners of parent

4,261

Purchase of treasury
shares(10)

Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period

294

176

64

1,187

1,722

(19)

1,702

294

176

(87)

1,187

1,570

33

5,791

Balance at end of current
period

1,659

－

(100)

917

2,476

337

52,981149

11

For the fiscal year ended June 30, 2016
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

7,393

Capital surplus Retained earnings Treasury shares
6,209

39,770(3,205)

Total
shareholders’equity50,167
－

7,393

6,209

39,770(3,205)50,167

Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at end of current
period

(772)

(772)

1,823

1,823
(9)

(9)

193

193

－

－

1,051

184

1,236

7,393

6,209

40,821(3,020)51,403

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

1,659

Deferred
gains orlosses onhedges－Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

(100)

917

Total
accumulated
othercomprehensive
income2,476

Noncontrollinginterests

Total net
assets337

52,981
－

1,659

－

(100)

917

2,476

337

52,981

Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus(772)

Profit attributable toowners of parent

1,823

Purchase of treasury
shares(9)

Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period(1,667)

－

(201)

(888)

(2,757)(0)(2,757)(1,667)

－

(201)

(888)

(2,757)(0)(1,521)

Balance at end of current
period

(8)

－

(301)

28

(280)

337

51,460193

12

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended June 30, 2015
Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sales of property, plant and equipment
State subsidies
Loss on reduction of property, plant and equipment
Head office transfer cost
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Payment of head office transfer cost
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Proceeds from state subsidies
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for purchase of shares of subsidiaries
accompanying a change in the scope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

13

For the fiscal year
ended June 30, 2016

7,564

4,032

1,408
279
0

1,268
(343)

37

99

(2,628)
548
3
35

(2)
(42)
38
237
(205)
(34)

(94)

(51)

(331)
(441)
(139)

(888)
(342)
198

(2,668)

1,797(1,406)
928
740
(273)
(1,482)
2,081
459
(49)
(1,609)
881

(906)
311
(393)
(676)
(670)
3,426
353
(53)
(667)
(2,679)379

190(1,256)
5,094(146)(1,116)
1,370

68
42
(1,198)4(225)(2,181)891-(13,821)

(792)
188
(830)
2,702

(1,411)125
1(17,705)

(Million yen)
For the fiscal year
ended June 30, 2015

For the fiscal year
ended June 30, 2016

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Proceeds from sale of treasury shares
Purchase of treasury shares
Cash 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
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

14

(100)
(130)
149
(10)
(580)
(74)
(745)
103
2,942
8,465

16,000
(164)
193
(9)
(770)
(50)
15,199(146)(2,272)
11,673265-

11,6739,400

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Changes in Accounting Policies)(Application of Accounting Standard for Business Combinations, etc. revised on September 13, 2013)
The “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (“ASBJ”)
Statement No. 21 revised on September 13, 2013, hereinafter referred to as the “Business Combinations
Accounting Standard”), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement
No. 22 revised on September 13, 2013, hereinafter referred to as the “Consolidated Financial Statements
Accounting Standard”), and the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7
revised on September 13, 2013, hereinafter referred to as the “Business Divestitures Accounting Standard”)
have been applied from the current consolidated fiscal year. As a result, if the Company continues to control
subsidiaries, differences arising due to changes in the equity interest are entered in capital surplus and costs
associated with the acquisition of stocks are now treated as expenses in the consolidated fiscal year in which
they are incurred.
In addition, for business combinations that are implemented after the beginning of the current consolidated
fiscal year, the allocation of the cost of acquisitions, as determined after review of provisional accounting
treatment, is reflected in the consolidated financial statements for the consolidated fiscal year in which thebusiness combination took place.
Additionally, the Company has changed the method of presenting consolidated profit and moved “minority
interests” to “non-controlling interests”. To reflect these changes, the Company has reclassified its
consolidated financial statements for the previous consolidated fiscal year.
In the consolidated cash flow statements for the current consolidated fiscal year, the following changes
have been made in the method of classification. Cash flows related to purchases or sales of shares ofsubsidiaries that are not accompanied by a change in the scope of consolidation have been included in “Cashflows from financing activities.” Cash flows related to expenses arising due to purchases of shares ofsubsidiaries accompanied by a change in the scope of consolidation or cash flows related to expenses due topurchases or sales of shares of subsidiaries that are not accompanied by a change in the scope of consolidation
have been included in “Cash flows from operating activities.”
There is no material impact on the consolidated financial statements for the fiscal year ended June 30, 2016.
(Application of the Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Accompanying the revision of the Corporation Tax Act, the Company has applied “Practical Solution on achange in depreciation method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32,
issued June 17, 2016) in its consolidated financial statements for the current consolidated fiscal year. As aresult, the Company has changed its method of depreciation for facilities attached to buildings and structuresacquired on or after April 1, 2016 from the declining-balance method to the straight-line method.
The effect of this change in accounting principles on the consolidated financial statements for the current
consolidated fiscal year was not material.

15

(Segment Information, etc.)
1. Outline of reportable segments
Reportable segments of the Company are determined as segments whose separate financial information isaccessible from among the constituent units of the Company and are periodically used by the Board of Directors
to determine the allocation of management resources and to evaluate achievements.
The Company has business headquarters separated by type of products and services. Each businessheadquarters formulates a comprehensive strategy based on the products and services and engages in conducting
business activities.
In line with the above, the Company is composed of segments divided by products and services, with eachbusiness headquarters serving as the foundation, and the five reportable segments are “Domestic Consulting
Operations,” “International Consulting Operations,” “Power Engineering Operations,” “Urban & Spatial
Development Operations,” and “Real Estate Leasing Operations.”“Domestic Consulting Operations” engages in businesses such as research, planning, designing, and oversightwith regard to improvement of social capital within Japan.
“International Consulting Operations” engages in businesses such as research, planning, designing, andoversight with regard to improvement of social capital outside of Japan.
“Power Engineering Operations” engages in production and sale of products such as hydraulic turbine electric
power generators, system control machinery, and voltage converters, construction of items such as powertransformers and power transmitters, and electrical power engineering consulting.
“Urban & Spatial Development Operations” engages in urban space development business that includes urban
planning and architectural design.
“Real Estate Leasing Operations” engages in the leasing of real estate within Japan.
(Changes in Reportable Segments)
During the fiscal year ended June 30, 2016, due to the acquisition of the stocks of BDP HOLDINGS LIMITEDand inclusion of BDP HOLDINGS LIMITED and its subsidiaries in the scope of consolidation, “Urban &Spatial Development Operations” was newly added as a reportable segment.
In accordance with this change, Kisho Kurokawa Architect & Associates Co., Ltd that used to be included in“Others” is included in “Urban & Spatial Development Operations.”
Since only the balance sheets of BDP HOLDINGS LIMITED and its subsidiaries have been consolidated, only
the segment assets are stated.
The segment information for the previous consolidated fiscal year which disclosed as comparative information
for the current consolidated fiscal year has been stated by using the method of classification after the change.
2. Calculation methods for net sales, income or loss, assets, and other items by reportable segment
Accounting treatments for reportable business segments closely match those shown in “Basic Principles for
Preparation of Consolidated Financial Statements.”
Inter-segment net sales and transfers are based on the third-party transaction prices.

16

3. Information about net sales, income or loss, assets, and other items by reportable segment
For the fiscal year ended June 30, 2015

(Million yen)

Reportable segment

Net sales
Net sales to externalcustomers
Inter-segment sales
or transfers

Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

Real Estate
Leasing
Operations

41,845

20,174

17,857―821

80,6981,141

81,839

371

22

234

124

752

2

754
82,594―

Subtotal

Others(Note)

Total

42,21620,19618,092―945

81,451

1,143

Segment profit (loss)

2,727

606

2,801

―

590

6,726

(1,243)

5,482

Segment assets

18,153

20,892

9,313

100

4,240

52,701

37,772

90,473

170
232
26
46

79
46
43
128

222
―
3
52

―
―
―
―

99
―
3
5

571
279
77
233

836
―
231
46

1,408
279
309
279

109

101

414

―

12

638

1,165

1,804

Total

Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Increase in property, plantand equipment andintangible assets

Note:“Others” refers to a group of operations from which no profits are gained or that produce only incidental
gains.

For the fiscal year ended June 30, 2016

(Million yen)
Reportable segment

Net sales
Net sales to externalcustomers
Inter-segment sales
or transfers

Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

Real Estate
Leasing
Operations

40,77822,07017,522―514

80,886979

81,865

408

13

247

―

124

793

2

795

Subtotal

Others(Note)

Total

41,18622,084

17,770―638

81,680981

82,661

Segment profit (loss)

2,965

382

3,024

―

384

6,757

(2,373)

4,383

Segment assets

18,893

19,102

8,989

23,886

4,192

75,06349,032

124,096

162
―
21
44

72
―
24
136

252
―
4
57

―
―
―
―

57
―
0
―

545
―
50
237

723
―
330
87

1,268
―
380
325

82

64

312

―

2

461

749

1,211

Total

Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Increase in property, plantand equipment andintangible assets

Note:“Others” refers to a group of operations from which no profits are gained or that produce only incidental
gains.

17

4. Differences in total amounts by reportable segment and amounts on the consolidated financial statements,
and primary content of these differences (Items related to adjustments of difference)
Net sales
Reportable segment total
Net sales of “Others” category
Elimination of inter-segment transactions
Net sales on consolidated financial statements(Million yen)
Current fiscal year

Previous fiscal year
81,451
1,143(754)
81,83981,680981(795)
81,865(Million yen)
IncomePrevious fiscal year
Current fiscal year
6,726
6,757
Reportable segment total(1,243)(2,373)
Loss of “Others” category (Note)(4)(18)
Elimination of inter-segment transactions
5,477
4,365
Ordinary income on consolidated financial statements
Note: Loss of “Others” category includes companywide expenses such as general and administrative expenses
that are not attributable to any reportable segment.
(Million yen)
AssetsPrevious fiscal year

Current fiscal year

52,701
37,772(6,363)
84,11075,063
Reportable segment total
49,032
Assets of “Others” category (Note)(23,106)
Elimination of inter-segment transactions
100,989
Total assets on consolidated financial statements
Note: Assets of “Others” category includes companywide assets such as land, buildings, and investment
securities that are not attributable to any reportable segment.

(Million yen)
Reportable segment total

OthersAdjustment amount

Other items

Amount recorded on
consolidated financial
statements
Previous
Current
fiscal year fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Depreciation

571

545

836

723

―

―

1,408

1,268

Amortization of
goodwill

279

―

―

―

―

―

279

―

Interest income (Note)

77

50

231

330

(231)

(266)

77

114

233

237

46

87

(231)

(266)

48

58

638

461

1,165

749

―

―

1,804

1,211

Interest expenses(Note)
Increase in property,
plant andequipment andintangible assets

Note:

The content of adjustments in “interest income” and “interest expenses” are primarily the elimination ofinternal interest used for the purposes of managerial accounting.

18

[Related Information]
For the fiscal year ended June 30, 2015
1.

Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.

2.

Information by geographical area
(1) Net salesJapan
60,203

Asia
12,670

Middle East
1,446

Africa3,442

Latin America
3,895

Other
181

(Million yen)Total
81,839Notes: 1. Net sales are classified based on the location where services are rendered.
2. Method of classifying countries or regions, and primary countries or regions attributable to each area:(1) Method of classifying countries or regions
By geographical proximity.
(2) Primary countries or regions attributable to each area, excluding Japan
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Iran, Palestine
Africa: Kenya, Egypt, Uganda
Latin America: Peru, Panama, Paraguay
Other: Kyrgyzstan, Tuvalu, Papua New Guinea(2) Property, plant and equipment
Disclosure is omitted, as the amount of property, plant and equipment within Japan amounts to over 90% of
the total property, plant and equipment on the consolidated balance sheets.
3.

Information on major customers(Million yen)
Name of customer

Net sales

Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

14,844

Domestic Consulting Operations

Tokyo Electric Power Company, Incorporated

7,674Power Engineering Operations

Japan International Cooperation Agency

6,756International Consulting Operations

19

For the fiscal year ended June 30, 2016
1.

Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.

2.

Information by geographical area
(1) Net salesJapan
58,414

Asia
13,880

Middle East
2,159

Africa3,584

Latin America
3,646

Other
179

(Million yen)Total
81,865

Notes: 1. Net sales are classified based on the location where services are rendered.
2. Method of classifying countries or regions, and primary countries or regions attributable to each area:(1) Method of classifying countries or regions
By geographical proximity.
(2) Primary countries or regions attributable to each area, excluding Japan
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Iran, Palestine
Africa: Kenya, Cabo Verde, Morocco
Latin America: Peru, Paraguay, Panama
Other: Papua New Guinea, Tuvalu(2) Property, plant and equipment
Disclosure is omitted, as the amount of property, plant and equipment within Japan amounts to over 90% of
the total property, plant and equipment on the consolidated balance sheets.
3.

Information on major customers(Million yen)
Name of customer

Net sales

Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

13,604

Domestic Consulting Operations

TEPCO Power Grid, Incorporated

8,147

Power Engineering Operations

Japan International Cooperation Agency

7,643International Consulting Operations

20

[Information on Impairment Loss of Non-current Assets by Reportable Segment]
For the fiscal year ended June 30, 2015
There is no relevant information.

For the fiscal year ended June 30, 2016
There is no relevant information.

[Information on Amortization of Goodwill and Unamortized Balances by Reportable Segment]
For the fiscal year ended June 30, 2015
There is no relevant information.

For the fiscal year ended June 30, 2016
(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations
Balance of
goodwill at
beginningof period

Note:

―

―

―

10,312―OthersSubtotal

10,312―

Corporateandeliminations

―

Total

10,312

Amounts for the amortization of goodwill are not stated as identical information is disclosed in Segment
Information.

[Information on Gain on Bargain Purchase by Reportable Segment]
For the fiscal year ended June 30, 2015
There is no relevant information.

For the fiscal year ended June 30, 2016
There is no relevant information.

21

(Per Share Information)
For the fiscal year ended
June 30, 2015

For the fiscal year ended
June 30, 2016

Net assets per share¥690.09¥665.31

Net income per share¥56.01¥23.82

Notes:

1. Diluted net income per share is not stated as there are no dilutive shares.
2. The basis for the calculation of net income per share and diluted net income per share is as follows.
Item

For the fiscal year ended
June 30, 2015

Profit attributable to owners of parent (Million yen)

4,261

For the fiscal year ended
June 30, 2016
1,823

Amount not attributable to common shareholders――(Million yen)
Profit attributable to owners of parent relating to
4,261
1,823
common stock (Million yen)
Average number of shares of common stock during the76,077,020
76,544,407
period (Shares)
3. Regarding the Company’s stock held in trust as treasury shares in shareholders’ equity, for the purposesof calculating the amounts of net income per share, these are included in treasury shares that are
eliminated for calculating the average number of shares during the period, and for the purposes ofcalculating the amounts of net assets per share, these are included in the number of treasury shareseliminated from the total number of issued shares at the end of the period.
For the purposes of calculating the amounts of net income per share, the average number of shares ofthese eliminated shares of treasury shares was 1,148,493 shares for the fiscal year ended June 30, 2015,
and 658,786 shares for the fiscal year ended June 30, 2016, and for the purposes of calculating theamounts of net assets per share, the number of shares at the end of each fiscal year of these eliminatedshares of treasury shares was 930,000 shares for the fiscal year ended June 30, 2015, and 355,000
shares for the fiscal year ended June 30, 2016.

(Significant Subsequent Events)
There is no relevant information.

22

5. Other(1) Status of Production, Orders, and Sales

Domestic Consulting

For the fiscal year ended
June 30, 2015
AmountComposition(Million yen)(%)
45,05751.5

International Consulting(Note 2) 28,889

33.0

25,93625.6

13,59515.5

14,71614.6
16.1

By period

Net sales 2

Net sales 1

Orders received

Category / Operation

Power Engineering
Urban & Spatial Development－(Note 1) 16,251

Real Estate Leasing－－

Others

30

0.0

64

0.1

Total

87,573100.0

101,079

100.0

Domestic Consulting

44,40554.3

43,545

53.2

International Consulting

21,67926.5

23,362

28.6

Power Engineering

14,90418.2

14,421

17.6

Urban & Spatial Development－

Real Estate Leasing

821

1.0

514

0.6

Others

28

0.0

21

0.0

Total

81,839100.0

81,865100.0

Domestic Consulting

41,84551.1

40,77849.8International Consulting

20,17424.7

22,07027.0

Power Engineering

17,85721.8

17,522

21.4－

Urban & Spatial Development－

Real Estate Leasing

821

1.0

514

0.6

Others

1,141

1.4

979

1.2

Total

81,839100.0

81,865100.0

By period
Category / Operation
Domestic Consulting
Outstanding orders

For the fiscal year ended
June 30, 2016
AmountComposition(Million yen)(%)
44,10943.6－

For the fiscal year ended
June 30, 2015
AmountComposition(Million yen)(%)
27,97431.3

For the fiscal year ended
June 30, 2016
AmountComposition(Million yen)(%)
28,53826.2

International Consulting

51,42757.6

54,001

49.5

Power Engineering

9,907

11.1

10,2039.4
14.9

Urban & Spatial Development－(Note 1) 16,251

Real Estate Leasing－－

Others6

Total
Notes:

0.0

49

0.0

89,315100.0
109,044
100.0
1. This refers to the outstanding orders as of April 1, 2016 of BDP that became a consolidated
subsidiary from the current consolidated fiscal year.
2. This includes ¥1,205 million, ¥427 million, and ¥246 million for NIPPON KOEI VIETNAM
INTERNATIONAL CO., LTD., PHILKOEI INTERNATIONAL, INC., and PT. INDOKOEIINTERNATIONAL, respectively, as the amounts of outstanding orders at the beginning of
consolidation for these companies, which were consolidated from the previous fiscal year.
3. The above amounts are exclusive of consumption taxes.
4. The above amounts are for external customers, and do not include inter-segment transactions ortransfers.
5. Net sales 1 is by segment which received orders. Net sales 2 is by segment which provided services.

23

(2) Changes in Corporate Officers
Please see “Notice Regarding Changes in Corporate Officers,” separately disclosed today.

24