Consolidated Financial Results
for the Fiscal Year Ended June 30, 2018
[Japanese GAAP]
August 13, 2018
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: Tetsumi Aoki, General Manager, Accounting Department
Phone: +81-3-3238-8040
Scheduled date of holding general shareholder’s meeting: September 27, 2018
Scheduled date of commencing dividend payments: September 7, 2018
Scheduled date of filing securities report: September 28, 2018
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly 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, 2018 (July 1, 2017 to June 30, 2018)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2018
106,023
4.6
6,561
20.1
6,721
12.8
4,555
38.5
101,338
23.8
5,464
15.7
5,958
36.5
3,288
80.3
June 30, 2017
(Note) Comprehensive income: Fiscal year ended June 30, 2018 : ¥4,698 million [ 29.1%]
Fiscal year ended June 30, 2017 : ¥3,639 million [ - %]Net income
Diluted net income
Operating income
Return on equity Return on assets
per shareper shareon Net sales
Fiscal year ended
Yen
Yen
%
%
%
June 30, 2018294.12
8.1
5.9
6.2
June 30, 2017
213.39
6.2
5.5
5.4(Reference) Income from investment in affiliates (Equity method): Fiscal year ended June 30, 2018: Fiscal year ended June 30, 2017: (Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Net income per share” are amounts on the assumption that the Company conducts the shareconsolidation on the beginning of previous fiscal year.
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Fiscal year ended
Million yen
Million yen%
Yen
June 30, 2018
114,506
59,44951.0
3,755.55
June 30, 2017
113,865
54,87447.9
3,530.44(Reference) Equity: Fiscal year ended June 30, 2018 : ¥58,363 million
Fiscal year ended June 30, 2017 : ¥54,508 million(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Net assets per share” are amounts on the assumption that the Company conducts the share consolidationon the beginning of previous fiscal year.
(3) Consolidated Cash Flows
Fiscal year ended
June 30, 2018
June 30, 2017

Cash flows fromoperating activities
Million yen
(602)
6,376

Cash flows frominvesting activities
Million yen
977(4,172)

1

Cash flows fromfinancing activities
Million yen(3,062)
4,846

Cash and cash equivalents
at end of period

Million yen
15,23317,083

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

Year-end

Total

Fiscal year ended June 30, 2018

Yen
-

Yen
-

Yen
-

Yen
75.00
75.00

Yen
75.00
75.00

Fiscal year ending June 30, 2019
(Forecast)

-

-

-

75.00

75.00

Fiscal year ended June 30, 2017

Dividend on
Total dividends Payout ratio net
assets ratio
paid (annual) (consolidated) (consolidated)

Million yen
1,192
1,192

%
35.1
25.5

%
2.2
2.1

28.4

(Notes)1. “Total dividends paid (annual)” includes dividends on the Company’s shares held by the Employee Share Ownership
Plan (ESOP) trust.
2. The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2019 (July 1, 2018 to June 30, 2019)(% indicates changes from the previous fiscal year.)
Profit attributable to
Net income
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
115,000
8.5
6,200
6,100
4,100 (10.0)
263.82(5.5)(9.2)* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): Yes
New companies: 2 (IRONMONT HYDRO PTE. LTD., ACEI SINGAPORE HOLDINGS PRIVATE LTD.)
Excluded companies: None
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: Yes
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, 2018
: 15,905,049 sharesFiscal year ended June 30, 2017
: 17,331,302 shares2) Total number of treasury stock at the end of the period
Fiscal year ended June 30, 2018:364,422 sharesFiscal year ended June 30, 2017
: 1,891,831 shares
3) Average number of shares during the period
Fiscal year ended June 30, 2018
: 15,490,332 sharesFiscal year ended June 30, 2017
: 15,410,873 shares(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Total number of issued shares at the end of the period”, “Total number of treasury stock at the end of
the period” and “Average number of shares during the period” are amounts on the assumption that the Company
conducts the share consolidation on the beginning of previous fiscal year.

2

(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2018 (July 1, 2017 to June 30, 2018)(1) Nonconsolidated Operating Results(% indicates changes from the previous fiscal year.)Net sales
Operating income
Ordinary income
Net income
Millionyen%
Millionyen%
Millionyen%
Millionyen%
Fiscal year ended
June 30, 2018
64,782
4.9
3,478
16.3
4,007
4.9
2,920
26.9
61,734
2.3
2,991
3,820
7.7
2,302
37.2
June 30, 2017
(8.7)
Net income
per share

Diluted net income
per share
Fiscal year ended
Yen
Yen
June 30, 2018
188.56
June 30, 2017149.38(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Net income per share” are amounts on the assumption that the Company conducts the shareconsolidation on the beginning of previous fiscal year.
(2) Nonconsolidated Financial Position
Total assets
Net assets
Equity ratio
Net assets per share
Fiscal year ended
Million yen
Million yen%
Yen
June 30, 2018
96,40253,01255.0
3,411.24
June 30, 201796,27550,79252.8
3,289.80(Reference) Equity: Fiscal year ended June 30, 2018: ¥53,012 million
Fiscal year ended June 30, 2017: ¥50,792 million(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Net assets per share” are amounts on the assumption that the Company conducts the share consolidationon the beginning of previous fiscal year.
2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2019 (July 1, 2018 to June 30, 2019)(% indicates changes from the previous fiscal year.)
Net income
Net sales
Ordinary income
Net income
per share
Million yen%
Million yen%
Million yen%
Yen
Full year
70,8009.3
3,300 (17.6)
2,500 (14.4)
160.87* These consolidated financial results are not subject to audit procedures by certified public accountants or audit firm.
* 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.
2. The Company is scheduled to hold a financial results briefing session for investors and analysts on August 29, 2018.
The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s
website.

3

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 ....................................................................................... 4(4) Future Outlook.................................................................................................................................................. 5
2. Basic Policy Regarding Selection of Accounting Standards .................................................................................. 6
3. Consolidated Financial Statements ........................................................................................................................ 7(1) Consolidated Balance Sheets ............................................................................................................................ 7(2) Consolidated Statements of Income and Comprehensive Income .................................................................... 9(3) Consolidated Statements of Changes in Equity .............................................................................................. 10(4) Consolidated Statements of Cash Flows ......................................................................................................... 12(5) Notes to Consolidated Financial Statements .................................................................................................. 14(Notes on Going Concern Assumption) ......................................................................................................... 14(Changes in Accounting Policies) .................................................................................................................. 14(Segment Information) ................................................................................................................................... 14(Per Share Information) .................................................................................................................................. 21(Significant Subsequent Events)..................................................................................................................... 21
4. Other..................................................................................................................................................................... 22(1) Status of Orders and Sales .............................................................................................................................. 22(2) Changes in Directors and Company Auditors................................................................................................. 23

1

1.

Overview of Operating Results, etc.

(1) Overview of Operating Results for the Current Fiscal Year
During the fiscal year (from July 1, 2017 to June 30, 2018), Japan’s economy continued on a moderate recovery
path with signs of private consumption picking up against the background of steady improvements in employment
and income. In addition, overseas economies saw a modest recovery, though consideration must be given to theuncertainties about policies observed globally originating from the United States and Europe and the economic futurein Asia.
The business environment of Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries (together, the “Group”)
continued to be stable, and each business segment saw steady demand. The Group undertook measures for disasterprevention and mitigation, and measures to prevent deterioration of infrastructure for public works projects in theDomestic Consulting Operations, promoted strategic exporting of infrastructure systems by the Japanese government
in the International Consulting Operations, renewed power distribution equipment in the Power Engineering
Operations and newly built and renovated a public architectural installation in the UK, which was the major area for
BDP Holdings Limited and its subsidiaries (together, “BDP”) in the Urban & Spatial Development Operations.
Under these circumstances, based on the Medium-Term Management Plan “NK-AIM” (from July 2015 to June2018), with the fundamental principles of “Sustainable growth of three core businesses,” “Generation and expansionof new businesses,” and “Autonomy and collaboration,” the Group tackled the three focus themes of “Further advanceof global expansion,” “Further expansion of business fields and improvement of profitability by intensifying existingcore businesses,” and “Demonstrating the true merits of aggregated technologies for establishment of new businessdomains.” Moreover, as group-wide measures to realize these goals, the Group actively advanced “Development of
next-generation core technologies and further improvement of technical strengths and productivity,” “Strengtheningof human resource recruitment and training,” and “Promotion of collaboration and enhancement of corporate
governance.”
As a result of the above, Group performance during the fiscal year ended June 30, 2018 saw orders received
decreasing 11.1% to ¥104,350 million from the previous year when there were contributions from large-scale projects.
Nonetheless, net sales increased 4.6% year on year to ¥106,023 million, operating income increased 20.1% year on
year to ¥6,561 million, ordinary income increased 12.8% year on year to ¥6,721 million, and profit attributable toowners of parent increased 38.5% to ¥4,555 million.
The Group’s accounting method for net sales has been changed from the completed-contract method to thepercentage-of-completion method effective from the fiscal year ended June 30, 2018. However, this new method was
not retroactively applied to the previous fiscal year and before, so comparison with the current fiscal year is conductedon the assumption that the previous completed-contract method has been applied to the previous fiscal year.
Moreover, in April 2018, we established the Energy Business Division with its business domains of electric power
generation and energy management using distributed energy resources, and therefore added “Energy Business
Operations” to the reporting segments.
Business results for each segment are as follows:[Domestic Consulting Operations]
The Domestic Consulting Operations worked to increase its business areas and market shares by specifying
significant businesses, improving quality of service and profitability by restructuring work procedures, andeffectively entering into alliances.
As a result, orders received increased 0.5% year on year to ¥48,529 million. Net sales increased 7.1% year on yearto ¥46,595 million, operating income increased 29.7% year on year to ¥4,279 million and ordinary income increased
25.5% year on year to ¥4,140 million.

2

[International Consulting Operations]
The International Consulting Operations worked to improve operation strategy functions focusing on regional
officers, strengthen the production system, develop foundations to manage revenues, safety and crisis of large-scale
projects, and strengthen the capabilities of and cooperation with Group companies.
As a result, while orders received decreased 35.7% to ¥26,716 million from the previous year when there were
contributions from large-scale projects, net sales increased 18.0% year on year to ¥28,889 million, operating income
increased 40.4% year on year to ¥2,649 million and ordinary income increased 36.4% year on year to ¥2,417 million.
[Power Engineering Operations]
In the Power Engineering Operations, we worked to increase cost competitiveness through strict cost reductions,strengthen sales and marketing capabilities through proposing cost reduction plans, enhance fusion and cooperation
among the business areas of consulting, manufacturing, and construction, promote the development of products andtechnology, and reinforce and expand the mechanical and electromechanical consulting division.
As a result, orders received increased 13.2% year on year to ¥15,943 million. Net sales decreased 10.3% year on
year to ¥15,762 million, operating income decreased 30.2% year on year to ¥1,873 million and ordinary income
decreased 25.0% year on year to ¥1,987 million due to the lower level of outstanding orders as of the end of theprevious fiscal year compared to previous years and the rising number of projects carried forward to the next fiscal
year.
[Urban & Spatial Development Operations]
The Urban & Spatial Development Operations strove to expand the scope of business in the urban development andarchitectural design area by growing businesses within the UK through BDP and collaborating among groupcompanies beyond segments in the Asian region.
As a result, orders received decreased 4.5% year on year to ¥12,855 million. Moreover, although net sales decreased
9.1% year on year to ¥13,040 million, operating income increased 113.8% year on year to ¥173 million, and ordinary
income increased 240.4% year on year to ¥197 million.
Due to the change of BDP’s accounting period during the previous consolidated fiscal year, BDP’s performance for
15 months was consolidated in the previous fiscal year.
[Energy Business Operations]
The Energy Business Operations promoted development and operations of distributed energy resources centered on
renewable energies such as hydroelectric power generation in Japan and abroad as well as energy managementbusiness including frequency control services, supply/demand balancing services and energy-saving service.
As a result, we saw orders received of ¥179 million, net sales of ¥354 million, operating loss of ¥18 million andordinary loss of ¥52 million.
[Real Estate Leasing Operations]
In the Real Estate Leasing Operations, net sales decreased 7.1% year on year to ¥440 million, operating income andordinary income increased 0.6% year on year to ¥403 million.
(2) Overview of Financial Position for the Current Fiscal Year
Total assets as of the end of the current fiscal year amounted to ¥114,506 million, an increase of ¥641 million fromthe end of the previous fiscal year.
In the Assets section, current assets were ¥55,258 million, an increase of ¥459 million from the end of the previous
fiscal year. This was mainly due to a ¥3,201 million decrease in cash and deposits and a ¥3,784 million decrease inwork in process, while a ¥8,123 million increase in notes and accounts receivable-trade.
Non-current assets were ¥59,248 million, an increase of ¥181 million from the end of the previous fiscal year. Thiswas mainly due to a ¥1,050 million decrease in land, a ¥500 million decrease in goodwill, a ¥1,314 million decrease
in investment securities and a ¥665 million decrease in long-term loans receivable, while a ¥907 million increase in3

machinery, equipment and vehicles and a ¥2,704 million increase in construction in progress caused by reconstructionof the headquarters building.
In the Liabilities section, current liabilities were ¥28,441 million, a decrease of ¥1,899 million from the end of theprevious fiscal year. This was mainly due to a ¥494 million increase in provision for bonuses, while a ¥2,103 million
decrease in advances received.
Non-current liabilities were ¥26,615 million, a decrease of ¥2,034 million from the end of the previous fiscal year.
This was mainly due to a ¥524 million increase in deferred tax liabilities, while a ¥2,479 million decrease in longterm loans payable.
Net assets were ¥59,449 million, an increase of ¥4,575 million from the end of the previous fiscal year. The primaryfactors behind this were ¥4,555 million in profit attributable to owners of parent and ¥1,192 million in cash dividends
paid.
As a result, the shareholders’ equity ratio increased 3.1 percentage points from the end of the previous fiscal year
to 51.0%.

(3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents at the end of the current fiscal year was ¥15,233 million, a decrease of ¥1,849 million
from the end of the previous fiscal year. The primary factors were as follows.
Net cash used in operating activities was ¥602 million (a net inflow of ¥6,376 million during the previous fiscal
year). This was mainly due to profit before income taxes of ¥7,165 million, and a ¥8,086 million increase in notes
and accounts receivable-trade.
Net cash provided by investing activities was ¥977 million (a net outflow of ¥4,172 million during the previous
fiscal year). This was mainly due to the sales of property, plant and equipment.
Net cash used in financing activities was ¥3,062 million (a net inflow of ¥4,846 million during the previous fiscal
year). This was mainly due to an outflow for the repayments of long-term loans payable.
Trends of the Company’s cash flow indicators are as follows.
(Reference) Trends in Cash Flow Indicators
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
June 2014
June 2015
June 2016
June 2017
June 2018
Equity ratio (%)
Equity ratio on market value
basis (%)
Interest-bearing debt to cash
flow ratio (years)
Interest coverage ratio (times)

62.4

62.6

50.6

47.9

51.0

50.0

43.7

23.6

43.3

36.4

1.8

1.9

46.1

3.6

-

29.3

18.0

7.1

31.7

-

Equity ratio: Shareholders’ Equity / Total assets
Equity ratio on market value basis: Total market capitalization / Total 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 flow.
4. Interest-bearing debt covers all debt recorded in the consolidated balance sheets for which interest is paid.
5. The interest-bearing debt to cash flow ratio and the interest coverage ratio for the fiscal year ended June 2018 are shown as“-“, as they were negative.

4(4) Future Outlook
With regard to the business environment of the Group going forward, in the Domestic Consulting Operations, thepublic works budget is expected to remain unchanged from the initial budget. In the International Consulting
Operations, an increase in demand is expected as the Japanese government promotes a strategy to export
infrastructure systems. In the Power Engineering Operations, new business opportunities will be created with theacceleration of changes in markets due to electric power system reform, etc., in Japan, while a highly competitiveenvironment is expected for renewal, etc., of existing power facilities, with the continued requests for cost reductions.
In the Urban & Spatial Development Operations, although the impact of Brexit on demand for architectural designin the UK is a concern, infrastructure demand centered on Asia is expected to continue. In the Energy Business
Operations, increased demand is expected for renewable energy due to low carbonization and energy resources
decentralization.
Under such circumstances, the Group has newly formulated the three-year plan “NK-Innovation 2021” starting fromthe fiscal year ending June 2019 to realize the Group Vision of “To provide services that are of value in building safeand reliable social infrastructure and creating comfortable living spaces.” Under the new Medium-Term Management
Plan, with the basic policy of “Continue evolution into global consulting and engineering firm,” we will aim toprovide more complex and comprehensive solutions by expanding Urban & Spatial Development Operations andEnergy Business Operations we have newly entered, in addition to Consulting Operations in Japan and abroad andPower Engineering Operations, as well as strengthening cooperation among individual Operations.
Under the new Medium-Term Management Plan “NK-Innovation 2021”, we will endeavor to realize the following:≪Business strategy≫
1．Enhancement of operating system for Railways Business2．Overseas expansion of Urban & Spatial Development Business
3．Establishment of Energy Business
4．Creation of businesses and overseas expansion of Consulting Business5．Product development and overseas expansion of Power Engineering Business≪Group-wide measures≫
1．Establishment of one-stop marketing system
2．Investment in technologies and human resources
3．Enhancement of group governance
By promoting these initiatives, as the target financial results for the fiscal year ending June 2021, which is the final
year of the new Medium-Term Management Plan, we will aim at net sales of ¥140 billion, operating income of ¥12.6
billion, and ROE (Return on Equity) of 12.7%.
Since the Group is expected to expand its business globally, and as a result, increase the ratio of overseas sales, wewill introduce International Financial Reporting Standards (IFRS), aiming to strengthen the management base bystandardizing accounting standards within the group, improve international comparability of financial statements,
enhance disclosed information, and appropriately evaluate assets including future M&As, etc.
In the fiscal year ending June 2019, which is the first year for the new Medium-Term Management Plan “NKInnovation 2021,” we will endeavor to strengthen our technology base by reinforcing engineers and accelerating
research & development in the Domestic Consulting Operations in partnership with the R&D Center. In theInternational Consulting Operations, we will engage in strengthening the operating system mainly for the railway
business, and thoroughly managing revenues, risks and safety of large-scale projects. In the Power Engineering
Operations, we will strive to promote product development through the integrated manufacturing and sales for global
expansion, improve price competitiveness by thorough cost reduction, and strengthen sales capabilities. In the Urban& Spatial Development Operations, we will endeavor to expand business in the British Commonwealth of Nations
countries and Asian markets. In the Energy Business Operations, we will fully engage in the development of
renewable energy business and the energy management business using storage batteries.
The Group will invest in human resources, technologies and new businesses in view of long-term growth, and bypromoting these measures, develop a more robust business base and ensure the achievement of the Medium-Term
Management Plan.
5

As a result, the consolidated financial results for the fiscal year ending June 2019 are expected to show net sales of¥115,000 million (up 8.5% year on year), operating income of ¥6,200 million (down 5.5% year on year), ordinary
income of ¥6,100 million (down 9.2% year on year) and profit attributable to owners of parent of ¥4,100 million(down 10.0% year on year).

2.

Basic Policy Regarding Selection of Accounting Standard
Taking into consideration the comparability of consolidated financial statements across periods and among
companies, the Group prepares its consolidated financial statements using Japanese GAAP.
The Group plans to voluntarily apply the International Financial Reporting Standards (“IFRS”) to the consolidated
accounts from the fiscal year ending June 30, 2020.

6

3.

Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of June 30, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Diferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
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
Net defined benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of June 30, 2018

19,59318,09011,727
1,234
4,158
(6)
54,79816,392
26,214
7,942
994
3,796
(83)
55,25816,150(10,559)
5,591
2,613
(2,212)
401
4,988(4,414)574
17,648
176
(109)
67
252
24,535

17,152(11,070)
6,082
3,895
(2,586)
1,308
5,008(4,385)622
16,598
153
(99)
54
2,957
27,624

8,685
5,214
13,9008,185
4,778
12,964

10,491
2,344
1,149
3,392
3,422
(168)
20,63059,067
113,865

9,176
1,678
1,134
4,079
2,767
(177)
18,65959,248
114,506

(Millions of yen)
As of June 30, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
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
Liability for retirement benefits
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 adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of June 30, 2018

4,012
1,760
1,049
10,7971,365
88
54
11,211
30,341

4,164
2,050
1,012
8,693
1,860
83
176
10,39828,441

21,413
2,859
45
34
3,963
333
28,65058,991

18,934
3,383
32
34
3,873
357
26,61555,0577,393
7,240
43,450(3,607)54,477

7,415
6,466
45,528(1,180)58,2291,016(1,813)828
30
36554,874
113,865

1,195(2,045)
983
133
1,086
59,449114,506

(2) Consolidated Statements of Income and Comprehensive Income

For the fiscal year
ended June 30,2017
101,338
70,40030,93725,472
5,464

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of property, plant and equipment
Total extraordinary income
Extraordinary losses
Impairment Loss
Loss on support to subsidiaries and associates
Head office transfer cost
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable toProfit (loss) attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income (loss)
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income (loss)
Comprehensive income (loss)
Comprehensive income (loss) attributable to
Owners of parent
Non-controlling interests

9(Millions of yen)
For the fiscal year
ended June 30,2018
106,023
73,66432,35925,797
6,561

165
255
365
786

140
305
340
786

195
97
292
5,958

222
154
148
101
626
6,721

-

1,276
1,276

225
432
105
764
5,194
1,866
4
1,870
3,323

832
832
7,165
1,832
723
2,556
4,608

3,288
34

4,555
52

1,025
(1,509)
799
316
3,639

176
(241)
155
90
4,698

3,600
39

4,680
17

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended June 30, 2017
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Capital surplus

7,393

6,209

Retainedearnings

Treasury shares

Total
shareholders’equity(3,020)51,40340,821

Issuance of new shares-

Change of scope of
consolidation

311

112

423

Dividends of surplus

(771)

(771)

Profit attributable to ownersof parent

3,288

3,288

Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period720(1,456)(1,456)

869

1,589
-

-

1,031

2,628

(586)

3,073

7,393

7,240

43,450(3,607)54,477

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
period(8)Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

28

(280)

(301)

Noncontrollinginterests

337

Issuance of new shares

Total net
assets51,460-Change of scope of
consolidation

423

Dividends of surplus(771)

Profit attributable to ownersof parent

3,288

Purchase of treasury shares(1,456)

Disposal of treasury shares

1,589

Retirement of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period1,024(1,512)

799

311

28

340

1,024

(1,512)

799

311

28

3,413

1,016

(1,813)

828

30

365

54,87410

For the fiscal year ended June 30, 2018
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Capital stock

Capital surplus

7,393

7,240

21

21

Change of scope of
consolidation

Retainedearnings

Treasury shares

Total
shareholders’equity(3,607)54,47743,450

43

39

37

76

Dividends of surplus(1,192)(1,192)

Profit attributable to ownersof parent

4,555

4,555

Purchase of treasury shares

(25)

(25)

Disposal of treasury shares

294

294

Retirement of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period(835)(1,323)

2,158

-

21

(774)

2,077

2,426

3,752

7,415

6,466

45,528(1,180)58,229

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
period1,016

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income828

30(1,813)

Noncontrollinginterests

Total net
assets365

Issuance of new shares

54,87443

Change of scope of
consolidation

(21)

(21)

710

765

Dividends of surplus(1,192)

Profit attributable to ownersof parent

4,555

Purchase of treasury shares(25)

Disposal of treasury shares

294

Retirement of treasury
sharesNet changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

178

(209)

155

124

9

134

178

(231)

155

102

720

4,575

1,195

(2,045)

983

133

1,086

59,44911

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended June 30,2018

For the fiscal year
ended June 30,2017
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment Loss
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund receivable
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

12

5,194
1,720
225
623
(30)
17
(2)
6
374

7,165
1,668
474
(63)
154
(1,283)
85
508

(4)

122

(420)

(446)

(315)

(8,086)867(1,097)
(29)
1,914
658
(2,018)
7,684
396
(200)
(1,502)
6,376

3,797
159
415
(2,079)
(828)
(668)
1,094
491
(215)
(1,973)
(602)

(953)
(1,085)8(260)(1,518)532

1,352(3,322)
2,339(277)(1,592)
2,857

-

(581)

(880)
434
(450)
(4,172)

(790)
992
0
977

For the fiscal year
ended June 30,2017
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales 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
subsidiaries
Cash and cash equivalents at end of period

13(Millions of yen)
For the fiscal year
ended June 30,2018(16,000)
23,547(2,008)1,589(1,456)
(772)
(53)
4,846
(124)
6,925
9,400

(2,100)294(25)(1,192)(37)(3,062)(22)(2,709)17,083756

860

17,083

15,233

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Changes in Accounting Policies)
The Company and domestic subsidiaries previously had been applying the completed-contract method (including
partial completed-contract method) in principle when recording net sales of business contracts relating to Domestic
Consulting Operations, International Consulting Operations, and Power Engineering Operations. From business
contracts effective from the current fiscal year, the method has been changed to the percentage-of-completion
method (estimate of the degree of completion is mainly based on the cost to cost method). The previous revenue
recognition standard was reviewed again. We considered the increasing opportunities to receive large project orders
under the government-led strategic exporting of infrastructure systems and the expansion of the Company’s
international operations including the acquisition of an architectural firm in the UK. As a result, the Company judgedthat the percentage-of-completion method would be more appropriate to present its operating results and financial
conditions. Relating systems were developed, and taking this as an opportunity, the Company has decided to makesuch change.
As this change was made possible with the introduction of a new accounting system, using the percentage-ofcompletion method to calculate retroactively is practically impossible.
Furthermore, since the cumulative impact at the beginning of the current fiscal year cannot be calculated in thecase where the system is applied retrospectively, the outstanding balance at the end of the previous fiscal year istreated as the outstanding balance at the beginning of the current fiscal year.
As a result, compared with the previous accounting method, net sales increased by ¥11,338 million, while grossprofit, operating income, ordinary income, and profit before income taxes all increased by ¥2,687 million for the
fiscal year ended June 30, 2018.
Impacts on segment information and others are stated in the relevant section.

(Segment Information)
1. Outline of reportable segments(1) Method of determination 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 business headquarters
formulates a comprehensive strategy based on the products and services and engages in conducting businessactivities.
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 six reportable segments are “Domestic Consulting
Operations”, “International Consulting Operations”, “Power Engineering Operations”, “Urban & Spatial
Development Operations”, “Energy Business Operations”, and “Real Estate Leasing Operations”.
(2) Types of products and services by reportable segment“Domestic Consulting Operations” engages in businesses within Japan such as site surveying, planning,
evaluation/assessment, designing, construction management, operational advice in the fields of water resources
development, energy development, agricultural development, transportation, urban and regional development,
management of natural and social environment, etc.
“International Consulting Operations” engages in businesses outside of Japan such as technical studies, planning,
reviews, designing, construction supervision, operational advice in the fields of water resources development,
energy development, agricultural development, transportation, urban and regional development, social

14development, management of natural and social environment, etc.
“Power Engineering Operations” engages in manufacturing and sale of control devices and systems for power
generating and transforming stations, water turbines, power generators, voltage converters, electric power related
equipment such as line taps for power transmission and distribution networks. It also engages in designing andimplementation of various construction works for electric power and general electric facilities, including
construction for power generation/transformation/transmission/distribution and civil engineering.
“Urban & Spatial Development Operations” engages in urban and spatial development business that includes
urban planning and architectural design.
“Energy Business Operations” engages in research, development, design, construction, management, operation,
support and system/technology development of power generation/energy management operations utilizing
distributed energy resources.
“Real Estate Leasing Operations” engages in the leasing of real estate within Japan.
(3) Information regarding the addition of reportable segments
In April 2018, we established the Energy Business Division with its business domains of electric power generationand energy management using distributed energy, and therefore added “Energy Business Operations” to thereportable segments.
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.

15

3. Net sales, income or loss, assets, and other items by reportable segment
For the fiscal year ended June 30, 2017
(Millions of yen)
Reportable segment

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers
Total

Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

Real Estate
Leasing
Operations

43,51624,491

17,577

14,347473

100,406

931

101,338

461

18

236

40

150

907

2

909

43,977

24,51017,813

14,387624

101,313933

102,247

Others(Note)

Subtotal

Total

Segment profit (loss)

3,299

1,772

2,649

57

401

8,181

(2,213)

5,968

Segment assets

19,30722,394

7,868

22,396

5,776

77,74244,451

122,194

157

72

242

760

39

1,272

447

1,720

-

-

-

623

-

623

-

623

Other items
Depreciation
Amortization of
goodwillInterest income

46
21
38
4
0
112
315
428
154
Interest expenses
51
137
52
397
60
458
Increase inproperty, plant and
237
113
217
150
0
720
681
1,401
equipment andintangible assets
Notes: 1. “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.
2. Increase in property, plant and equipment and intangible assets does not include an increase due to the new consolidation.

For the fiscal year ended June 30, 2018
(Millions of yen)
Reportable segment

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers
Total

Domestic
Consulting
Operations

International
Operations

Power
Engineering
Operations

46,59528,88915,762429

47

47,025

Urban &

Others(Note)

EnergyBusiness
Operations

Real Estate
Leasing
Operations

Subtotal

13,040354

440

105,083940

106,023

270

26

-

164

939

1,029

1,968

28,937

16,032

13,067354

605

106,022

1,970

107,992

Consulting

SpatialDevelopment
Operations

Total

Segment profit (loss)

4,140

2,417

1,987

197

(52)

403

9,093

(2,411)

6,681

Segment assets

19,66824,748

8,989

22,388

4,982

4,198

84,97640,265125,241

178

82

244

639

120

37

1,303

385

1,688

-

-

-

474

-

-

474

-

474

22

54

3

42

2

0

126

322

448

Other items
Depreciation
Amortization of
goodwillInterest income

Interest expenses
53
151
52
167
41
466
63
530
Increase inproperty, plant and
155
166
213
178
48
761
2,785
3,547
equipment andintangible assets
Notes: 1. “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.
2. Increase in property, plant and equipment and intangible assets does not include an increase due to the new consolidation.

16

4. Differences between the total amount of reportable segments and the amounts in consolidated financial statements,and major breakdown of such differences (reconciliation)(Millions of yen)
Net sales

Previous fiscal year

Reportable segment total

Current fiscal year

101,313106,022Net sales of “others” category

933

1,970

Elimination of inter-segment transactions(909)(1,968)101,338

106,023

Net sales on consolidated financial statements(Millions of yen)
IncomePrevious fiscal year

Current fiscal year

Reportable segment total

8,181

9,093

Loss of “others” category (Note)(2,213)(2,411)

(9)

40

5,958

6,721

Elimination of inter-segment transactions
Ordinary income on consolidated financial statements

Note: Loss of “others” category includes corporate expenses such as general and administrative expenses that are not attributable to any
reportable segment.
(Millions of yen)
AssetsPrevious fiscal year

Current fiscal year

Reportable segment total

77,742

84,976

Assets of “others” category (Note)

44,451

40,265

Elimination of inter-segment transactions(8,328)(10,734)

Total assets on consolidated financial statements

113,865

114,506

Note: Assets of “others” category includes corporate assets such as land, buildings, and investment securities that are not attributable toany reportable segment.

Other items

Reportable segment
total

OthersAdjustment amount(Millions of yen)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

1,272

1,303

447

385

-

(20)

1,720

1,668

Amortization of
goodwill

623

474

-

-

-

-

623

474

Interest income (Note)

112

126

315

322

(262)

(307)

165

140

Interest expenses(Note)

397

466

60

63

(262)

(307)

195

222

Increase in property,
plant and equipment
and intangible assets

720

761

681

2,785

-

-

1,401

3,547

Note: The content of adjustments in “interest income” and “interest expenses” are primarily the elimination of internal interest used forthe purposes of managerial accounting.

5. Information regarding changes in reportable segments, etc.
As stated in Changes in Accounting Policies, the accounting policy for business contracts effective from thecurrent fiscal year was changed to the percentage-of-completion method (estimate of degree of completion ismainly based on the cost to cost method). As a result of this change, compared with the previous accounting method,
net sales and segment profit increased by ¥3,575 million and ¥611 million for Domestic Consulting Operations,¥5,937 million and ¥1,522 million for International Consulting Operations, ¥1,639 million and ¥521 million forPower Engineering Operations, and ¥185 million and ¥31 million for Others, respectively, for the fiscal year ended
June 30, 2018.
17

[Related Information]
For the fiscal year ended June 30, 2017 (from July 1, 2016 to June 30, 2017)
1. Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.
2. Information by geographical area
(1) Net sales(Millions of yen)Japan
60,582

Asia

Middle East

15,659Africa2,168

EuropeLatin America

3,943

5,291

Other

13,340

Total
352

101,338

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, India, Myanmar
Middle East: Iraq, UAE, Iran
Africa: Kenya, Sudan, Mozambique
Latin America: Peru, Panama, Colombia
Europe: United Kingdom, Ireland, Netherlands
Other: Ukraine, Canada, Serbia(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(Millions of yen)
Name of customer

Net sales

Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

14,671

Domestic Consulting Operations

Japan International Cooperation Agency

9,581International Consulting Operations

TEPCO Power Grid, Incorporated

9,148

Power Engineering Operations

18

For the fiscal year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)
4. Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.
5. Information by geographical area
(1) Net sales(Millions of yen)Japan
62,314

Asia

Middle East

18,633Africa1,796

EuropeLatin America

3,780

6,845

Other

12,221

Total
433

106,023

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: India, Bangladesh, Vietnam
Middle East: Iraq, UAE, Iran
Africa: Sudan, Kenya, Senegal
Latin America: Peru, El Salvador, Colombia
Europe: United Kingdom, Ireland, Netherlands
Other: Papua New Guinea, Ukraine, 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.
6. Information on major customers
Name of customer

Net sales(Millions of yen)
Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

16,187

Domestic Consulting Operations

Japan International Cooperation Agency

13,780International Consulting Operations

TEPCO Power Grid, Incorporated

5,606Power Engineering Operations

19

[Information on Impairment Loss of Non-Current Assets by Reportable Segment]
For the fiscal year ended June 30, 2017 (from July 1, 2016 to June 30, 2017)(Millions of yen)
Reportable segment
Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

Real Estate
Leasing
Operations

Impairment
Loss
Note: Amounts for “others” are related to assets scheduled for disposal.

Subtotal

48

Corporateandeliminations

Others(Note)

48

177

Total

-

225

For the fiscal year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)
There is no relevant information.
[Information on Amortization of Goodwill and Unamortized Balances by Reportable Segment]
For the fiscal year ended June 30, 2017 (from July 1, 2016 to June 30, 2017)(Millions of yen)
Reportable segment
Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

Real Estate
Leasing
Operations

OthersSubtotal

Corporateandeliminations

Total

Balance of
goodwill at
8,685
8,685
end of period
Note: Amounts for the amortization of goodwill are not stated as identical information is disclosed in Segment Information.

8,685

For the fiscal year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)(Millions of yen)
Reportable segment
Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Urban &
SpatialDevelopment
Operations

EnergyBusiness
Operations

Real Estate
Leasing
Operations

Corporate

Subtotal

OthersBalance of
goodwill at
8,185
8,185
end of period
Note: Amounts for the amortization of goodwill are not stated as identical information is disclosed in Segment Information.

[Information on Gain from Negative Goodwill by Reportable Segment]
For the fiscal year ended June 30, 2017 (from July 1, 2016 to June 30, 2017)
There is no relevant information.
For the fiscal year ended June 30, 2018 (from July 1, 2017 to June 30, 2018)
There is no relevant information.

20

Total

and
eliminations

-

8,185

(Per Share Information)
For the fiscal year ended
June 30, 2017

For the fiscal year ended
June 30, 2018

Net assets per share¥3,530.44¥3, 755.55

Net income per share¥213.39¥294.12

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.
For the fiscal year ended
June 30, 2017
Profit attributable to owners of parent (Millions of yen)

For the fiscal year ended
June 30, 2018

3,288

4,555

-

-

Profit attributable to owners of parent relating to common stock(Millions of yen)

3,288

4,555

Average number of shares of common stock during the period (Shares)

15,410,873

15,490,332

Amount not attributable to common shareholders (Millions of yen)

Notes: 3. Regarding the Company’s stock held in trust as treasury shares in shareholders’ equity, for the purposes of calculating theamounts of net income per share, these are included in treasury shares that are eliminated for calculating the average numberof shares during the period, and for the purposes of calculating the amounts of net assets per share, these are included in thenumber of treasury shares eliminated 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 of these eliminated sharesof treasury shares was 96,714 shares for the fiscal year ended June 30, 2017, and 406,664 shares for the fiscal year ended June30, 2018, and for the purposes of calculating the amounts of net assets per share, the number of shares at the end of each fiscal
year of these eliminated shares of treasury shares was 455,100 shares for the fiscal year ended June 30, 2017, and 358,200
shares for the fiscal year ended June 30, 2018.
4. The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The figures fornet income per share are amounts on the assumption that the Company conducts the share consolidation on the beginning ofprevious fiscal year.
5. As stated in Changes in Accounting Policies, the accounting policy for business contracts effective from the current fiscal year
was changed to the percentage-of-completion method (estimate of degree of completion is mainly based on the cost to cost
method). As a result of this change, compared with the previous accounting method, net income per share increased by ¥117.17
for the fiscal year ended June 30, 2018.

(Significant Subsequent Events)
There is no relevant information.

21

4.

Other

(1) Status of Orders and Sales
By period
Category / Operation
Domestic Consulting

Net sales 2

Net sales 1

Orders received

International Consulting

35.4(Note2) 26,716

25.6

Power Engineering

14,08712.0

15,943

15.3

Urban & Spatial Development

13,46011.5

12,85512.3
0.2

Energy Business-

179

Real Estate Leasing--

Others550.0(Note2) 126

0.1

Total

117,442100.0

104,350

100.0

Domestic Consulting

45,47044.9

48,78446.0

International Consulting

26,38426.0

30,70329.0

Power Engineering

14,583

14.4

12,616

11.9

Urban & Spatial Development

14,34414.1

12,998

12.3

354

0.3

440

0.4

Energy Business-

Real Estate Leasing

473

0.5

Others

81

0.1

125

0.1

Total

101,338100.0

106,023

100.0

Domestic Consulting

43,51642.9

46,595

43.9

International Consulting

24,491

24.2

28,88927.3

Power Engineering

17,57717.3

15,762

14.9

Urban & Spatial Development

14,34714.2

13,040

12.3

354

0.3

440

0.4

Energy Business-

Real Estate Leasing

473

0.5

Others

931

0.9

940

0.9

Total

101,338100.0

106,023

100.0

Category / Operation

impact of foreign exchange
fluctuations

For the fiscal year ended
June 30, 2018
AmountComposition(Millions of yen)(%)
48,52946.5(Note1) 41,573

By period

Outstanding orders

For the fiscal year ended
June 30, 2017
AmountComposition(Millions of yen)(%)
48,265
41.1

Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development

For the fiscal year ended
June 30, 2017
AmountComposition(Millions of yen)(%)-

For the fiscal year ended
June 30, 2018
AmountComposition(Millions of yen)
(%)
-

2,177

(1,036)-0(1,678)(57)

Energy Business--

Real Estate Leasing--

Others

-

-

Total

498

(1,093)

Domestic Consulting

31,33324.8

31,07825.0

International Consulting

71,36856.6

66,34553.5

Power Engineering

9,707

7.7

13,034

10.5

Urban & Spatial Development

13,68810.9

13,488

10.9

116

0.1

Energy Business-

Real Estate Leasing-

Others

24

0.0

24

0.0

Total

126,122100.0

124,087

100.0

Notes: 1. This includes the outstanding orders at the beginning of consolidation for System Science Consultants Inc., which wasconsolidated from the previous fiscal year.
2. This includes the outstanding orders at the beginning of consolidation for Myanmar Koei International Ltd. and DSI Inc., which
was consolidated from the current fiscal year.
3. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
4. Net sales 1 is by segment which received orders. Net sales 2 is by segment which provided services.

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(2) Changes in Directors and Company Auditors
1. Change of Representative Director
There is no relevant information.
2. The proposal for the selection of an Audit & Supervisory Board Member was approved by the meeting of the Boardof Directors held today.
It will be implemented on September 27, 2018, after the necessary procedures (a resolution of the generalshareholder’s meeting, etc.).
1) Candidate for a new Audit & Supervisory Board Member (scheduled to take office on September 27, 2018)
Audit & Supervisory Board Member: Yoshizo Goto
Short biography of the candidate
April 1982
July 2008
July 2010
September 2010
October 2011
June 2013
July 2015
October 2015
July 2017
July 2018

Joined the Company
General Manager of Logistics & Operations Department of International Consulting
Operations of the Company
General Manager of Operations Planning Office, International Consulting Operations of
the Company
General Manager of Revenue Management Office, International Consulting Operations of
the Company
General Manager of Revenue Management Office and General Manager of Compliance
Office, International Consulting Operations of the Company
General Manager of Internal Auditing Office of the Company
Deputy Director General of International Consulting Operations of the Company
Deputy Director General of International Consulting Operations and General Manager ofCompliance Office of the Company
Deputy Director General of International Consulting Operations, General Manager ofCompliance Office and General Manager of Safety & Health Management Office,Technical Management Division of the Company
Deputy Director General of International Consulting Operations of the Company (current
position)

Audit & Supervisory Board Member: Naoki Honjo
Short biography of the candidate
April 1978
July 2008
June 2011
September 2014
October 2014
April 2015
July 2015
September 2015
September 2017

Joined the Company
General Manager of Finance & Accounting Department, Corporate Headquarters of theCompany
Executive Officer of the Company
Deputy Director General of Corporate Headquarters and General Manager of Finance &Accounting Department of the Company
Director and Executive Officer of the Company
Acting Director General of Corporate Headquarters and General Manager of Finance &Accounting Department of the Company
Acting Director General of Corporate Headquarters of the Company
Acting Director General of Corporate Headquarters and General Manager of Finance &Accounting Department of the Company
Director General of Corporate Headquarters and General Manager of Finance &Accounting Department of the Company
Director General of Corporate Headquarters of the Company
Special Adviser of the Company (current position)2) Resigning Audit & Supervisory Board Member (scheduled to resign on September 27, 2018)
Audit & Supervisory Board Member: Toshiaki Shimizu

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