Summary of Financial Results for the Financial Year Ended 30 June 2014
[Japanese Accounting Standards] (Consolidated)
August 11, 2014
Listed Company Name
Nippon Koei Co., Ltd.
Listed Exchange Tokyo Stock Exchange
Code Number
1954
URL http://www.n-koei.co.jp
Representative(Title) Representative Director and President(Name) Noriaki Hirose
Contact(Title) General Manager of Finance & Accounting Dept. (Name) Naoki Honjo (TEL) 03-3238-8040
Scheduled Date for Ordinary
Scheduled Date of Commencement
General Meeting of Shareholders:
September 25, 2014of Dividend Payment:
September 5, 2014
Scheduled Date for Submission of
Securities Report:
September 26, 2014
Supplemental Document for Financial Results : No
: Yes
Financial Results Briefing(Figures less than 1 million yen rounded down))

1. Consolidated Financial Result for the fiscal year ended on June 30 (July 1, 2013 – June 30, 2014)(1) Consolidated Operating Results(% indicates changes from previous period)

Net sales

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

79,193
6,896

―
―

4,256
(3,214)――

4,542(3,156)――

2,998(1,914)――

June 2013(1,743) million yen(―%)

June 2014
June 2013
Comprehensive
Note:incomeJune 2014

4,199 million yen(―%)

Ratio of net sales
Ratio of ordinary
operating income toincome to total asset
net sales

Net income per share

Diluted net income
per share

yen

yen

%

%

%

―
―

6.6
(4.3)

6.2
(4.0)

5.4
(46.6)

June 2014
39.61
June 2013(25.35)
Share of profit/loss of entities(Reference)accounted for using equity method

Return on equity

June 2014―

million yen

June 2013―

million yen

Note: The change in the fiscal period end date resulted in the June 2013 period being three months from April 1, 2013 to June30, 2013. Therefore, the percent change from the previous period has been omitted. In addition, the net income per shareand return on equity in the June 2013 period are profit/loss figures for the 3 months.
(2) Consolidated Financial Situation
Total assets
June 2014
June 2013(Reference) Equity capital

Net assets

Capital-to-asset ratio

Net assets per share

million yen

million yen%

yen

76,14471,45047,83543,671

62.4
60.8

626.53574.42June 2014

47,530

million yen

June 2013

43,409million yen(3) Consolidated Cash FlowsNet cash provided byoperating activities
June 2014
June 2013―1―

Net cash used ininvestment activities

Net cash used in financing Cash and cash equivalents
activities
at end of period

million yen

million yen

million yen

million yen

1,340
14,356(4,559)771)

62(8,539)8,465
11,613

2. Status of Dividends
Annual dividend
End of 1st
Quarter

End of 2nd
Quarter

End of 3rd
Quarter

End ofPeriodTotal

Ratio ofAmount of
Payout ratio dividends to net
dividends(Consolidated)
asset(Total)(Consolidated)

yen

yen

yen

yen

yen

million yen%%

June 2014
June 2013

―
―

―
―

―
―

2.00
7.50

2.00
7.50

151
568

―
18.9

0.3
1.2

June 2015 (Forecast)

―

―

―

7.50

7.50

25.9

Note: The change in the fiscal period end date resulted in the June 2013 period being three months from April 1, 2013 to June30, 2013. In addition, the above dividend amounts do not include the dividends for the Employee Stock Ownership Plan
(ESOP) trust. The reason for this is that the shares in this company owned by the ESOP trust are shown as treasury sharesin the consolidated financial statements and non-consolidated financial statements.

―2―

3. Consolidated Performance Forecast for Period June 2015 (July 1, 2014 – June 30, 2015)(% indicates percent change from previous period for “Full Year” and changes
from same quarter in previous year for “2nd Quarter”)
Operating income
Ordinary income
Net income
Net income per share

Net sales
million yen% million yen% million yen% million yen%yen

2nd Quarter (Total)
―
―
―
―
―
―
―
―
Full Year
81,000
2.3
4,000
(6.0)
4,200
(7.5)
2,200
(26.6)
29.00
Government agencies and electric power companies represent main customers for our company, and since net sales tend to beconcentrated in the latter half of the fiscal year, the 2nd quarter total performance forecast is not disclosed.
* Notes(1) Changes of important subsidiaries during the period (Changes of specific subsidiaries in accordance withscope of consolidation)
New ― (Company name),
Excluded ― (Company name)(2) Change in accounting policies, change in accounting estimates and restatementi) Changes in accounting policies due to revision of accounting standardsii) Changes in accounting policies other than (i)iii) Changes in accounting estimatesiv) Restatement

:
:
:
:

:

None

None
None
None
None

(3) Number of outstanding shares (common shares)i

Number of outstanding shares at end of period(Including treasury shares)
ii Number of treasury shares at end of period
iii Average number of shares during period

June 2014

86,656,510

sharesJune 2013

86,656,510

sharesJune 2014

10,793,274

sharesJune 201311,085,421

sharesJune 2014

75,693,610

sharesJune 2013

75,517,610

sharesReference: Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for Fiscal Year 2014 Ended on June 30 (July 1, 2013 – June 30, 2014)(1) Non-consolidated Financial Results(% indicates changes from previous period)

Net sales
June 2014
June 2013

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

59,307
5,325

―
―

3,097
(2,333)――

3,997(2,141)――

2,198(1,233)――

Net income per share

Diluted net income per
share

yen

yen

June 2014
29.05―
June 201316.33)―
Note: The change in the fiscal period end date resulted in the June 2013 period being three months from April 1, 2013 to June30, 2013. Therefore, the percent change from the previous period has been omitted. In addition, the net income per shareand return on equity in the June 2013 period are (profit) loss figures for the 3 months.
(2) Non-consolidated Financial Situation
Total assets
June 2014
June 2013(Reference) Shareholders’ equity―3―

Net assets

Capital-to-asset ratio

million yen

million yen

68,43943,536

66,339June 2014

40,93343,536

million yen

Net assets per share
%

yen

63.6

573.8861.7
June 2013

541.6540,933

million yen

2. June 2015 Period Individual Performance Forecast (July 1, 2014 – June 30, 2015)(% indicates changes from previous period for “Full Year” and increase/decrease fromsame quarter in previous year for “2nd Quarter”)
Net sales
Ordinary income
Net income
Net income per share
million yen%

million yen%

million yen%yen

2nd Quarter (Total)
―
―
―
―
―
―
―
Full Year
60,0001.2
3,100(22.5)
1,700(22.7)
22.41
Government agencies and electric power companies represent main customers for our company, and since net sales tend to beconcentrated in the latter half of the fiscal year, the 2nd quarter total performance forecast is not disclosed.

*Statement Concerning Implementation Status of Auditing ProceduresThis Summary of Financial Results is exempt from the auditing procedures in accordance with the Financial
Instruments and Exchange Act, and at the time of disclosure of this Summary of Financial Results, auditing
procedures of financial statements in accordance with the Financial Instruments and Exchange Act have not been
completed.

*

Explanation and Other Special Notes Concerning Appropriate Usage of Business Performance Forecast
Business performance forecast given in this document is based on information that is currently available to thecompany and certain assumptions judged as being rational. Actual performance, etc. may change considerably due
to various factors. Refer to “Analysis Concerning Business Performance” on page 2 in Appendices for theconditions of the assumptions for the performance forecasts and usage of performance forecasts.

―4―

○ Appendices
1. Analysis Concerning Business Performance and Financial Situation ………………………………………5(1) Analysis Concerning Business Performance ……………………………………………………..5(2) Analysis Concerning Financial Situation …………………………………………………………6
2. Management Policy …………………………………………………………………………………………7(1) Basic Policy for Corporate Management………………………………………………………….7(2) Target Management Indicators……………………………………………………………………7(3) Medium to Long-Term Corporate Management Strategy ………………………………………..7(4) Issues to be Tackled by Company ………………………………………………………………..7
3. Consolidated Financial Statements …………………………………………………………………………8(1) Consolidated Balance Sheets………………………………………………………………….…..8(2) Consolidated statements of comprehensive income………………………………………………10(3) Consolidated statements of changes in net assets…………………………………………………11(4) Consolidated Statements of Cash Flows …………………………………………………………13(5) Notes Concerning Consolidated Financial Statements…………………………………………...16(Notes concerning premises of going concern) …………………………………..……………...16(Segment Information etc.) ………………………..……………………………..……………...16(Information per Share) ………………………..……………………………..………………….23(Important Subsequent Events) …………………………………………………………………..23
4. Other………………………………………………………………………………………………………. 24(1) Status of Production, Orders Received and Sales………………………………………….…… 24(2) Transfer of Officers………………………………………………………………………………25―5―

1. Analysis Concerning Business Performance and Financial Situation(1) Analysis Concerning Business Performancei) Business Performance during Current Period
A resolution passed at the 68th Ordinary General Meeting of Shareholders on June 27, 2013 changed the last day of
the fiscal year from March 31 to June 30. This resulted in the previous fiscal year being an irregular one of 3 months
from April 1, 2013 to June 30, 2013. Therefore, the explanation of performance concerning the percent change fromthe previous period has been omitted.
Public investment in the Japanese economy increased during this consolidated fiscal year (July 1, 2013 to June 30,2014), and there was an improvement in production activity by corporations due to robust growth in domestic
demand centered around consumer spending, creating an upward momentum in the economic environment.
The business climate for the Nippon Koei Group resulted in favorable growth in the domestic consulting businesssector. This was due to an increase in the demand for large-scale management work, national disaster prevention andmitigation related work, and maintenance work for aging social infrastructure under PPP (Public Private
Partnerships), CM (Construction Management) and other such formats, while there was a decrease in traditional
disaster reconstruction work in the Tohoku region. In the international consulting business sector, there was a trend
towards increased demand for infrastructure development projects in various developing countries in Asia, Latin
America, resulting in robust growth. The difficult conditions in the electrical power business sector continued due tothe impact of a reduction in new capital spending by electric power companies which consist of the main customersof the company, resulting from a reexamination of energy policy in the country.
Under these circumstances, our group is implementing “development of overseas business offices and introductionof multidomestic operation”, “strengthening of existing business fields and expanding business areas” and“development of new business models and participation in project operation” in accordance with the medium-term
management plan (From April 2012 to June 2015) which has a basic policy of “strengthening global expansion” and“development and formulation of new business sectors”. The group has also begun execution of new measures andresponse. In addition, a certain level of results have been achieved based on the concept of “Ensuring a goodwork-life balance”.
This resulted in the following performance figures during this period: Consolidated amount of orders received of
92.485 billion yen and a net sales volume of 79.193 billion yen.
In terms of earnings, while the increases in net sales volume in the domestic consulting business sector dramatically
improved the situation, the increase in the cost-price ratio in the international consulting business sector combinedwith the higher general management expenses, as well as the difficult environment for the receiving of orders during
the first half of this period and intensifying cost competition in the electrical power business sector resulted inordinary income of 4.542 billion yen. On the other hand, net profit during this period was 2.998 billion yen due to anegative adjustment for corporate income tax as a result of deferred tax accounting for subsidiaries.
The amount of orders received and net sales volume for each segment by Nippon Koei group are outlined below.

[Domestic Construction Consulting Business]
As stated above, the favorable environment for the receiving of orders resulted in the steady receipt of orders forreconstruction work and implementation of work related to the Great East Japan Earthquake, as well as an increasein orders received for disaster prevention and mitigation related work such as tsunami and seismic countermeasures.
In addition, orders received for administrative support type of work centered around disaster reconstruction, and forwork to extend the life of public facilities and maintain their functions have increased. This resulted in the orders
received amounting to 46.617 billion yen and a net sales volume of 41.817 billion yen. Ordinary income amounted
to 2.525 billion yen.

[Overseas Construction Consulting Business]
Demand for infrastructure development in various developing countries is strong, including Myanmar and othercountries in Southeast Asia, India, Latin America, the Middle East and various countries in Africa, and we continued
to promote global expansion. Contracts were concluded for large-scale railroad projects in Bangladesh and India,
helping to boost orders received to 30.023 billion yen and a net sales volume of 20.947 billion yen. Ordinary income
amounted to 493 million yen.

[Electrical Power Business]
As mentioned above, the environment for receiving orders from electric power companies which are our main

―6―

customers in this sector is very harsh. However, efforts were made to strengthen sales, resulting in orders from newdomestic customers for renovation work at aging hydroelectric power stations, complete updating work athydroelectric power stations using the Feed-in Tariff scheme and other such work, and our focus on the small-scalehydroelectric power business in Japan and abroad was strengthened, resulting in the orders received amounting to
15.831 billion yen. Nevertheless, since the recovery in orders received was in the latter part of the period, net sales
amounted to 14.169 billion yen. Ordinary income amounted to 1.256 billion yen.

[Real Estate Leasing Business]
Net sales by the Real Estate Leasing Business amounted to 1.125 billion yen. Ordinary income amounted to 846
million yen.

ii) Future Outlook
In the domestic consulting business sector, while we have started to go over the peak related to demand for disasterreconstruction, the implementation of National Resilience Policy Principles and decision to hold the Tokyo Olympic
is expected to result in an increase in projects for our company. In the international consulting business sector, theurbanization of developing countries is expected to result in a continuing increase in demand for wide-areatransportation networks, urban environment development and other such infrastructure development. In theelectrical power business sector, it is expected that the environment for receiving orders from electric powercompanies will continue to remain generally harsh, but a certain level of demand is expected for maintenance andrenovation of electric power generation facilities.
Based on these circumstances, the forecast for consolidated performance in the next period (June 2015) is asfollows: Consolidated net sales of 81.0 billion yen, operating income of 4.0 billion yen, ordinary income of 4.2
billion yen and net income of 2.2 billion yen.

(2) Analysis Concerning Financial Situation
Cash and cash equivalents at the end of this period amounted to 8.465 billion yen, representing a decrease of 3.148
billion yen compared to the end of the previous period.
Net cash provided by operating activities amounted to 1.340 billion yen in income (income in the previous period
was 14.356 billion yen). The reason for this is that while there was an increase of 4.562 billion yen in income before
income taxes to 7.718 billion yen compared to the end of the previous consolidated fiscal year, there was an increaseof 5.177 billion yen in accounts receivable.
Net cash used in investment activities amounted to 4.559 billion yen in payments (payments in previous periodamounted to 771 million yen). These payments were mainly made for acquisition of tangible fixed assets (property,
plants and equipment).
Net cash used in financial activities amounted to 62 million yen in income (net cash used in previous periodamounted to 8.539 billion yen in payments). This income was mainly proceeds from long-term loans.
Furthermore, the trends in cash flow indicators for the company are shown in the table below.
(Reference) Transition in Cash Flow Related Indicators

Capital-to-Asset Ratio
Current Price-Based
Capital-Asset Ratio
Cash Flow-to-Interest
Bearing Debt Ratio
Interest Coverage Ratio―7―

March 2011

March 2012

March 2013

June 2013

June 2014

58.1

54.5

55.0

60.8

62.4

32.0

27.4

34.5

39.2

50.0

1.6

-

3.1

0.2

1.8

52.3

-

73.7

1,519.0

29.3

2. Management Policy(1) Basic Policy for Corporate Management
The management philosophy for our group consists of “To act with sincerity and contribute to society throughtechnology”, and we attempt to achieve this with the slogan of “Challenging mind, Changing dynamics”.
When the business environment for our group is viewed based on this management philosophy and slogan, while it
can be expected that the domestic market environment will be favorable in the short term, from a medium tolong-term perspective, since it is expected that there will be increased demand for infrastructure development
overseas due to the growth of the various countries in Asia and other emerging nations, we will continue to promotefurther globalization.
Accordingly, our group will expand its overseas locations by gaining a foothold in the infrastructure development
market in emerging nations that continues to expand while maintaining our solid technological base in Japan(construction consulting and engineering business), and strive to achieve sustainable growth by pioneering andforming new business sectors.
(2) Target Management Indicators
Based on the medium-term management plan formulated for our group in March 2012 (from April 2012 until June2015), the performance indicators for the next period (June 2015) which is the last fiscal year in the plan are as
follows: Consolidated net sales of 75.0 billion yen, operating income and ordinary income of 4.0 billion yen (5.3%of consolidated net sales).
Regarding the level of achievement, during this period which is in effect the second year of the medium-term
management plan (fiscal year ending June 2014), consolidated net sales amounted to 79.193 billion yen, operating
income amounted to 4.256 billion yen (5.4% of consolidated net sales), and ordinary income amounted to 4.542
billion yen (5.7% of consolidated net sales), illustrating that all performance targets have been achieved.
(3) Medium to Long-Term Corporate Management Strategy
Our group is striving to tackle the following priority issues based on the medium-term management plan (from April
2012 until June 2015).
1) Development of overseas business offices and introduction multidomestic operation
2) Strengthening of existing business fields and expanding business areas3) Development of new business models and participation in project operation
4) Ensuring a good work-life balance(4) Issues to be Tackled by Company
In consideration of the medium-term management plan, the following priority issues will be tackled in the next
period which is the final year of this plan (from June 2014 to June 2015).
1) Regarding “Development of overseas business offices and introduction multidomestic operation”, four
regional sales offices will be placed in (i) Asian Region, (ii) Middle East and North Africa Region, (iii) Latin
America Region and (iv) Sub-Saharan Region, with Tokyo at the center, and business will be promoted basedon a region-based sales and production system. In addition to support from Tokyo which is the central unit ontechnical, quality and safety issues, efforts will be made to strengthen governance, ensure thorough risk
management, secure global personnel and strengthen management, and we will promote the expansion ofbusiness by actively working to secure funds for projects by means other than ODA from Japan.
2) Regarding “Strengthening of existing business fields and expanding business areas”, in order to respond to
drastic changes in markets in existing business fields, we will clarify the business areas that should be
expanded for each type of business field, develop technology and secure, educate and strengthen personnel inorder to steadily expand business. Specifically, in the domestic construction consulting business sector, we will
make efforts to increase disaster prevention and mitigation work, and maintenance work in order to extend thelife of social infrastructure. In the international construction consulting business sector, efforts will be made toincrease railroad and urban development related work in emerging nations. In the electrical power businesssector, we will strive to expand sales in the mechanical and electrical consulting field and work to update
aging facilities.
3) Regarding “Development of new business models and participation in project operation”, the Business
Promotion Headquarters will serve a central role to promote new business development by providing one-stop
service by the Nippon Koei group, to focus our new business models on “energy segment” with thehydroelectric power business at the core. In addition, we will “Develop a new technical service model whereassets are owned” under which overseas infrastructure funds are provided with assets and advisory services areprovided to funds.
4) Regarding “Ensuring a good work-life balance”, policies established in the past will be continued with the“Work-Life Balance Promotion Committee” serving a central role, and we will tackle new issues. In addition,for each respective segment, we will further strengthen changing awareness and reorganize work processes
mainly by managerial staff as well as the formulation of a working environment that match the environment,
aiming for the realization of good balance of work and life.

―8―3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Previous fiscal year
(As of June 30, 2013)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

11,7578,594
4
41
11,805
169
2,545
1,748
(180)

8,967
13,790
0
9,799
311
1,448
2,458
(27)

36,48636,74920,393(12,172)

21,199(12,698)

Buildings and structures, net

8,220

8,501

Machinery, equipment and vehicles
Accumulated depreciation

2,607(2,060)2,485(2,092)

547

393

2,695
(2,373)

2,675(2,365)Current assets total
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Equipment
Accumulated depreciation
Equipment, net

321

310

13,956226(155)

17,247265(137)

Leased assets, net

71

127

Construction in progress12

8

23,12826,588

78
420
541
85

78
393
232
81

1,125

787

8,584
498

9,210
567

122

122

752
929

1,404
1,056

Land
Leased assets
Accumulated depreciation

Property, plant and equipment total
Intangible fixed assets
Leasehold right
Software
Goodwill
Other
Intangible fixed assets total
Investments and other assets
Investment securities
Long-term loans
Claims provable in bankruptcy, claims provable inrehabilitation and other
Deferred tax assets
Other
Allowance for doubtful accounts

(177)

(341)

Investments and other assets total

10,70912,01934,96339,39471,45076,144

Fixed assets total
Assets total―9―(Unit: million yen)
Current fiscal year
(As of June 30, 2014)

(Unit: million yen)
Current fiscal year
(As of June 30, 2014)

Previous fiscal year
(As of June 30, 2013)
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable – otherAccrued expenses
Accrued income taxes
Accrued consumption tax
Advance received
Deposits received
Reserve for bonuses
Reserve for directors' bonuses
Reserve for loss on construction contracts
Reserve for disaster losses
Provision for business structure improvement
Other

2,512
10
179
31
1,486
3,134
162
9,317
852
895
104
2
14
674

3,361
100
130
50
1,782
1,600
842
1,708
7,586
1,438
983
78
205
658

19,376

20,528

1,520
40
689
59
34
4,305
54
1,698

1,690
78
1,019
59
34
3,245
54
1,598

8,403

7,780

Liabilities total

27,77928,309Net assets
Owners' equity
Capital stock
Capital surplus
Retained earnings

7,393
6,209
33,5237,393
6,209
36,366

Treasury stock(3,434)(3,344)

Owners' equity total

43,69046,624

Total accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Translation adjustment
Remeasurements of defined benefit plans

890
(186)
(22)
963)

1,364
(176)
13)
269)

Total accumulated other comprehensive income total

Current liabilities total
Long-term liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Reserve for directors' retirement benefits
Reserve for environmental measures
Net defined benefit liability
Asset retirement obligation
Long-term guarantee deposited
Long-term liabilities total

281)

905

Minority interests

261

304

Net assets total

43,67147,83571,45076,144

Liabilities and net assets total―10―

(2) Consolidated statements of comprehensive income

Net sales
Cost of sales
Gross profit

Previous fiscal year
(From April 1 to June 30,
2013)
6,896
6,138

(Unit: million yen)
Current fiscal year
(From July 1, 2013 to June30, 2014)
79,19359,253758

19,939Selling, general and administrative expenses

3,973

15,683Operating income (loss)(3,214)

4,256

Non-operating income
Interest income
Dividends income
Other

10
78
47

51
290
158

136

499

10
58
3
6

44
130
14
23

Non-operating income total
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission fee
Other

78

213

Ordinary income (loss)

Non-operating expenses total(3,156)

4,542

Extraordinary income
State subsidy-

147

Extraordinary income total-

147

Extraordinary loss
Loss on reduction of fixed asset

-

128

-

128

Income (Loss) before income taxes

Extraordinary loss total

3,156)

4,562

Income taxes – current
Income taxes for prior periods
Income taxes – deferred

129
(229
(1,119)

1,340
(0)
190

Income taxes total(1,219)1,530

Income (Loss) before minority interests

1,937)

3,032

(22)

33

1,914)

2,998

(22)

33

(1,937)

3,032

275
(54)
28)
-

476
10
8
693

193

1,189

Comprehensive income

1,743)

4,221

Comprehensive income attributable to:Comprehensive income attributable to shareholders of theparentComprehensive income attributable to minority interests(1,718)

4,185

(25)

36

Minority interests in income (loss)
Net income (loss)
Minority interests in income (loss)
Income (Loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Translation adjustment
Remeasurements of defined benefit plans, net of tax
Other comprehensive income total―11―

(3) Consolidated statements of changes in net assets
Previous fiscal year (From April 1 to June 30, 2013)(Unit: million yen)
Owners' equity

Balance at the beginningof current period
Changes of items during
the period

Capital stock

Capital surplus

7,393

6,209

Dividends from surplus
Net loss of current
periodPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Retainedearnings
36,018Treasury stock

Owners' equity
total

3,468)

46,152

(580)

(580)

(1,914)

1,914)
2)

(2)

36

36

―

―

(2,494)33(2,461)

7,393

6,209

33,523(3,434)

43,690Total accumulated other comprehensive income
Valuation
Deferred gains
Translationdifference onor losses on
adjustment
available-for-salehedgessecurities
Balance at the beginningof current period
Changes of items during
the period

614

(132)

3

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income total

Minority
interests

Net assets
total

―

486

290

46,928Dividends from surplus
Net loss of current
periodPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

―12―

(580)
1,914)
(2)
36
275

(54)

(25)

963)

(767)

(29)

(796)

275

54)

(25)

963)

767)

29)

3,257)

890

186)

22)

963)

281)

261

43,671

Current fiscal year (From July 1, 2013 to June 30, 2014)(Unit: million yen)
Owners' equity

Balance at the beginningof current period
Changes of items during
the period

Capital stock

Capital surplus

7,393

6,209

Dividends from surplus
Net income of current
periodPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period

Retainedearnings
33,523

Treasury stock

Owners' equity
total(3,434)

43,690

(154)

(154)

2,998

2,998
(53)

(53)

144

144

―

―

2,843

90

2,933

7,393

6,209

36,366(3,344)

46,624

Total accumulated other comprehensive income
Valuation
Deferred gains
Translationdifference onor losses on
adjustment
available-for-salehedgessecurities
Balance at the beginningof current period
Changes of items during
the period

890

(186)

(22)

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income total

(963)

(281)

Minority
interests

261

Dividends from surplus
Net income of current
periodPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders'equityTotal changes of items
during the period
Balance at the end ofcurrent period―13―

Net assets
total

43,671

(154)
2,998
(53)
144
474

10

8

693

1,186

43

1,230

474

10

8

693

1,186

43

4,164

1,364

(176)

(13)

(269)

905

304

47,835

(4) Consolidated Statements of Cash Flows

Previous fiscal year
(From April 1 to June 30,
2013)(Unit: million yen)
Current fiscal year
(From July 1, 2013 to June30, 2014)(3,156)
220
77
(15)
(2)
139
(784)

4,562
997
316
10)
(2)
(147)
128
10
92

43

100

(18)

(38)

2

14)

(88)
10
(17)
24,658(4,550)(103)(4,545)
3,138
933

(341)
44
(12)
(5,177)
1,907
(651)
835
(1,739)
1,717
(519)

Subtotal

15,9382,056Interest and dividends income received
Interest expenses paid
Income taxes paid

36
(9)(1,608)366(45)(1,037)

Net cash provided by operating activities

14,356

1,340

Net cash provided by operating activities
Income (loss) before income taxes of current period
Depreciation
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss (gain) on sales of fixed assets
State subsidy
Loss on reduction of fixed asset
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in reserve for loss on construction
contracts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for business structure
improvement
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable – trade
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities―14―

Previous fiscal year
(From April 1 to June 30, 2013)
Net cash used in investment activities
Net decrease (increase) in time deposits
Proceeds from state subsidy
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible fixed assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Payments of loans receivableCollection of loans receivable
Other(Unit: million yen)
Current fiscal year
(From July 1, 2013 to June 30,
2014)

(8)
(228)

(290)
147
(4,327)

3

3

(53)
(117)

(149)
(949)

200

1,060

(574)
7

(165)
108
3

(771)

(4,559)(8,990)
1,000
(29)
(10)
36
(2)
(539)
(3)

90
300
(179)
(43)
144
(53)
193)
0

(8,539)

62

11)

8

5,035

(3,148)Cash and cash equivalents at beginning of year

6,578

11,613

Cash and cash equivalents at end of year

11,613

8,465

Net cash used in investment activities
Net cash used in financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents―15―(5) Notes Concerning Consolidated Financial Statements(Notes concerning premises of going concern)
There are no applicable items.
(Segment Information etc.)[Segment Information]
1 Overview of Reportable Segment
The reportable segments of the company are those units for which separate financial statements can be obtained
among the constituent units of the company and which are periodically examined by the Board of Directors in orderto determine the distribution of management resources and evaluate performance.
A separate Operations sector is created at the company for each product and service. The respective Operations
sector formulates comprehensive strategy for the products and services that the sector manages, and implements
business activities.
Accordingly, the company is comprised of the different product and service segments based on the Operations. The
following four business sectors are reportable segments of the company: “Domestic Construction Consulting
Business”, “Overseas Construction Consulting Business”, “Electrical Power Business” and “Real Estate Leasing
Business”.
The “Domestic Construction Consulting Business” sector performs survey, planning, design, supervision and othersuch work related to social infrastructure development in Japan.
The “Overseas Construction Consulting Business” sector performs survey, planning, design, supervision and othersuch work related to social infrastructure development outside of Japan.
The “Electrical Power Business” sector provides business including manufacture and sales of water turbine
generators, system control devices, transformers and other such equipment, construction of transformer, powertransmission and other such systems, as well as electromechanical consulting services.
The “Real Estate Leasing Business” sector is involved in leasing of real-estate in Japan.
2 Method for Calculating Net Sales, Profit or Loss, Assets and Other Items in Each Reportable Segment
The accounting methods for each business segment for which reporting is performed are almost the same as “Basic
Important Matters for the Preparation of Consolidated Financial Statements”.
The intersegment sales and transfer are based on third party transaction prices.

―16―

3 Information Concerning Net Sales, Profit (Income) or Loss, Assets and Other Items in Each Reporting Segment
Previous fiscal year (From April 1 to June 30, 2013)(Unit: million yen)
Reportable Segment
Domestic
Overseas
Electrical Real Estate
Construction Construction
Power
Leasing
Consulting Consulting
Business BusinessBusiness
Business

Total

Other
(See
Note)

Total

Consolidated
Financial
Adjustment
Statement
AmountNet sales
Net sales toexternal customers
Intersegment sales
and transfer

1,353

2,864

2,352

282

6,853

43

6,896

―

6,896

67

―

43

31

142

0

143

(143)

―

1,421

2,864

2,396

314

6,996

43

7,039

(143)

6,896

Segment profit or(loss)(2,450)

748)

103)

209

(3,091)(73)

3,165)

8(3,156)

Segment assets

17,505

14,199

8,014

9,803

49,522

31,59081,113(9,662)

71,450Depreciation

37

12

67

37

154

65

220

―

220

Amortization of
goodwill

77

―

―

―

77

―

77

―

77

Interest income

14

4

2

3

26

31

58

(47)

10

Interest expenses

7

22

7

4

42

15

58

47)

10

Increase in tangible
fixed assets andintangible fixed assets

53

14

22

12

103

14

118

―

118

Total

Other items

Note: The “Other” class is comprised of units for which a profit is not earned or units for which a profit is earned incidentally.

―17―

Current fiscal year (From July 1, 2013 to June 30, 2014)(Unit: million yen)
Reportable Segment
Domestic Overseas
Constructio Constructio Electrical Real EstatenPowerLeasingnConsulting Consulting Business BusinessBusiness Business

Total

Total

Other
(See
Note)

Consolid
ated
Adjustment Financial
Statement
AmountNet sales
Net sales to externalcustomers
Intersegment sales andtransfer

41,817

20,947

14,1691,125

78,0591,133

79,193―

79,193

453

―

210

124

788

7

795

(795)

―

42,271

20,947

14,3791,250

78,8481,140

79,988(795)

79,193

Segment profit or(loss)

2,525

493

1,256

846

5,121

(574)

4,547

(4)

4,542

Segment assets

19,344

17,832

7,839

7,690

52,70634,09486,801(10,656)

76,144

Depreciation

169

58

232

145

605

392

997

―

997

Amortization of
goodwill

308

7

―

―

316

―

316

―

316

Interest income

37

19

4

9

70

197

267

(216)

51

Interest expenses

40

99

42

14

196

65

261

(216)

44

Increase in tangible
fixed assets andintangible fixed assets

140

81

179

1

403

4,126

4,529

―

4,529

Total

Other items

Note: The “Other” class is comprised of units for which a profit is not earned or units for which a profit is earned incidentally.

―18―

4 Difference Between Reportable Segment Total and Consolidated Financial Statement Amounts and Main
Factors in the Difference (Related to difference adjustment)(Unit: million yen)
Net sales

Previous fiscal year

Current fiscal year

Reportable segment total

6,996

78,848Net sales for “Other” class

43

1,140

Elimination of intersegment transaction

(143)

(795)

Net sales in consolidated financial statements

6,896

79,193(Unit: million yen)

Earnings

Previous fiscal year

Reportable segment total

Current fiscal year

(3,091)

5,121

(73)

(574)

8

(4)

(3,156)

4,542

Loss in “Other” class (See Note)
Elimination of intersegment transaction etc.
Ordinary income in consolidated financial statements

Note: General administration and other such costs for the entire company that do not belong to the reportable segment areincluded the loss in “Other” class.
(Unit: million yen)
AssetsPrevious fiscal year

Current fiscal year

Reportable segment total

49,52252,706

Assets of “Other” class (see Note)

31,59034,094

Elimination of intersegment transaction(9,662)(10,656)

Asset total in consolidated financial statements

71,45076,144

Note: Assets in the “Other” class include land, buildings, investments in securities and other assets of the entire company that
do not belong to the reportable segment.

Reportable segment total
Other item

Other

Adjustment(Unit: million yen)Amount in 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

154

605

65

392

―

―

220

997

Amortization of
goodwill

77

316

―

―

―

―

77

316

Interest income (Note)

26

70

31

197

(47)

(216)

10

51

Interest expenses(Note)

42

196

15

65

(47)

(216)

10

44

Increase in tangible
fixed assets and
103
403
14
4,126
―
―
118
4,529
intangible
fixed
assetsNote: The adjustments for “Interest income” and “Interest expenses” mainly consist of elimination of internal interest for―19―managerial accounting.

―20―

[Related Information]
Previous fiscal year (From April 1 to June 30, 2013)
1 Information for Each Product and Service
This is omitted since the same information has been disclosed in the segment information.

2

Information for Each Region(1) Net sales(Unit: million yen)
Japan

Asia

3,889

Middle East

1,691

Africa181

Latin America
474

Other

536

Total
123

6,896

Note 1: Net sales are classified based on the region where service is provided.
Note 2: The methods for classifying countries or regions and main countries or region which belong to each region(1) Country or region classification method(2) Main countries or regions in classes other thanJapan

Geographic proximity
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Qatar, Palestine
Africa: Kenya, Zambia, Morocco
Latin America: Peru, Panama, Brazil
Other: Papua New Guinea, Ukraine, Kyrgyz(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of tangible fixed assets in the consolidated financial
statements, disclosure has been omitted.
3 Information for Each Main Customer(Unit: million yen)
Customer NameTokyo Electric Power
Company, Incorporated
Japan International
Cooperation Agency
Government of Vietnam

Net sales

Related Segment Name
873

Electrical Power Business

507

Overseas Construction Consulting Business

386

Overseas Construction Consulting BusinessCurrent fiscal year (From July 1, 2013 to June 30, 2014)
1 Information for Each Product and Service
This is omitted since the same information has been disclosed in the segment information.

―21―

2

Information for Each Region(1) Net sales(Unit: million yen)
Japan

Asia

56,265

Middle East

13,215Africa1,316

Latin America

4,461

Other

3,551

Total
382

79,193Note 1: Net sales are classified based on the region where service is provided.
Note 2: The methods for classifying countries or regions and main countries or region which belong to each region(1) Country or region classification method(2) Main countries or regions in classes other thanJapan

Geographic proximity
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Palestine, Turkey
Africa: Egypt, Kenya, Rwanda
Latin America: Peru, Panama, Colombia
Other: Papua New Guinea, Bosnia and Herzegovina,
Kyrgyz(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of tangible fixed assets in the consolidated financial
statements, disclosure has been omitted
3 Information for Each Main Customer(Unit: million yen)
Customer Name

Net sales

Ministry of Land,
Infrastructure, Transport andTourism
Japan International
Cooperation Agency
Tokyo Electric Power
Company, Incorporated

Related Segment Name

16,631

Domestic Construction Consulting Business

9,004

Overseas Construction Consulting Business

6,028Electrical Power BusinessInformation Concerning Impairment Loss for Fixed Assets in Each Reporting Segment
Previous fiscal year (From April 1 to June 30, 2013)
There are no applicable items.
Current fiscal year (From July 1, 2013 to June 30, 2014)
There are no applicable items.

Information Concerning Amortization of Goodwill and Unamortized Balance in Each Reporting Segment
Previous fiscal year (From April 1 to June 30, 2013)(Unit: million yen)
Reportable Segment
Domestic
Overseas
Electrical
Construction Construction
Power
Consulting Consulting
Business
Business
Business
Goodwill
final balance of
current period

541

―

―

Real Estate
Leasing
Business―

EntireCompany
Elimination

Other
Total

541

―

Total

―

Note: Amortization of Goodwill has been omitted since the same information was disclosed in the segment information.

―22―

541

Current fiscal year (From July 1, 2013 to June 30, 2014)(Unit: million yen)
Reportable Segment
Domestic
Overseas
Electrical
Construction Construction
Power
Consulting Consulting
Business
Business
Business
Goodwill
final balance of
current period

232―

Real Estate
Leasing
Business――

EntireCompany
Elimination

Other
Total

232

―

Total

―

232

Note: Amortization of Goodwill has been omitted since the same information was disclosed in the segment information.
Information Concerning Gain on Negative Goodwill Income in Each Reportable Segment
Previous fiscal year (From April 1 to June 30, 2013)
There are no applicable items.
Current fiscal year (From July 1, 2013 to June 30, 2014)
There are no applicable items.

(Information per Share)Previous fiscal year
(From April 1 to June 30, 2013)

Current fiscal year
(From July 1, 2013 to June 30,
2014)

Net assets per share574.42 yen(626.53 yen)

Net income (loss) per share(25.35 yen)

(39.61 yen)

Note 1: The diluted net income per share has not been stated since there are no dilutive shares.
Note 2: The basis for calculation of the net income or net (loss) per share in each period is described below.
Current fiscal year
Previous fiscal year
Item
(From July 1, 2013 to June 30,(From April 1 to June 30, 2013)2014)
Net income (loss) (in million yen)Amount that does not belong to common shareholders(million yen)
Net income or net (loss) for common shares(million yen)
Average number of common shares during period(1,914)

2,998

―

―

(1,914)

2,998

75,517,610

75,693,610

The treasury shares owned by the ESOP trust were subtracted from the average number of common shares during theperiod used to calculate the net profit or net (loss) during the period.

(Important Subsequent Events)
There are no applicable items.

―23―

4. Other(1) Status of Production, Orders Received and Sales
PeriodAmount(Million yen)

Net sales 2

Net sales 1

Orders received

Class
Domestic Construction
Consulting Business
Overseas Construction
Consulting Business

Component Ratio(%)

Amount(Million yen)

Component Ratio
(%)

60.9

46,617

50.4

5,461

24.9

30,023

32.5

Electrical Power Business

3,108

14.2

15,831

17.1

Real Estate Leasing Business

－

Other

4

0.0

13

0.0

Total

21,947100.0

92,485

100.0

1,373

19.9

44,542

56.2

3,007

43.6

22,563

28.5

Electrical Power Business

2,229

32.3

10,948

13.8

Real Estate Leasing Business

282

4.1

1,125

1.4

Other

4

0.1

12

0.1

Total

6,896

100.0

79,193

100.0

1,353

19.6

41,817

52.8

2,864

41.5

20,947

26.5

Electrical Power Business

2,352

34.1

14,16917.9

Real Estate Leasing Business

282

4.1

1,125

1.4

Other

43

0.7

1,133

1.4

Total

6,896

100.0

79,193100.0

Domestic Construction
Consulting Business
Overseas Construction
Consulting Business

Domestic Construction
Consulting Business
Overseas Construction
Consulting BusinessClassbalance

Current fiscal year
(From July 1, 2013
to June 30, 2014)

13,374

PeriodOrderPrevious fiscal year
(From April 1
to June 30, 2013)

Domestic Construction
Consulting Business
Overseas Construction
Consulting Business－

Previous fiscal year

Current fiscal year

(June 30, 2013)(June 30, 2014)

Amount(Million yen)

Component Ratio(%)

Amount(Million yen)

Component Ratio(%)

25,24836.9

27,32333.0

36,75853.8

44,217

53.4

Electrical Power Business

6,332

9.3

11,216

13.6

Real Estate Leasing Business

－

Other

4

0.0

4

0.0

Total

68,342100.0

82,761100.0－

Note 1: The previous consolidated fiscal year was 3 months from April 1, 2013 to June 30, 2013 due to a change in the endof the fiscal year.

―24―Note 2: The above amounts do not include consumption tax, etc.
Note 3: The above amounts are for external customers, and do not include intersegment transaction and transfer.
Note 4: “Net sales 1” consists of the orders received by each segment, and “Net sales 2” consists of the total for work
implemented by each segment.

(2) Transfer of Officers
Refer to the “Notice Concerning Transfer of President and Officers, etc.” separately disclosed today.

―25―