Consolidated Financial Results
for the Nine Months Ended March 31, 2019
[Japanese GAAP]May 14, 2019
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 filing quarterly securities report: May 14, 2019
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: None
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended March 31, 2019 (July 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Nine months ended
Million yen%
Million yen% Million yen% Million yen%
March 31, 2019
74,1629.8
2,936
2,704 (15.9)
1,468 (39.3)(6.2)
March 31, 2018
67,522
5.2
3,131 (13.1)
3,217 (20.2)
2,419
(7.5)
(Note) Comprehensive income: Nine months ended March 31, 2019 : ¥909 million [(61.1) %]Nine months ended March 31, 2018 : ¥2,337 million [43.2 %]Net income per share
Nine months ended
March 31, 2019
March 31, 2018

Yen
94.11
156.32

Diluted net income
per shareYen-(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
March 31, 2019
139,386
59,47041.9
June 30, 2018
113,890
59,44951.2(Reference) Equity: As of March 31, 2019 : ¥58,404 million
As of June 30, 2018 : ¥58,363 million(Note) From the beginning of the first quarter of the fiscal year ending June 30, 2019, the Company has adopted “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.28, February 16, 2018), etc. The
accounting standard is retrospectively applied to the amount as of June 30, 2018.
2. Dividends
1stquarter-end
Yen-

Annual dividends
2nd
3rd
quarter-end
quarter-end
Yen
Yen
-

Fiscal year ended June 30, 2018
Fiscal year ending June 30, 2019
Fiscal year ending June 30, 2019 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None1Year-end

Total

Yen
75.00

Yen
75.00

75.00

75.00

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 corresponding period.)
Net income attributable
Net income
Net sales
Operating income
Ordinary income
to owners of parent
per share
Million yen% Million yen% Million yen%
Million yen%
Yen
Full year
115,000
8.5
6,200
(5.5)
6,100
(9.2)
4,100
(10.0)
262.82(Note) Revision to the financial results forecast announced most recently: None
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) 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: Yes
4) Retrospective restatement: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2019
: 15,919,544 shares
As of June 30, 2018
: 15,905,049 shares2) Total number of treasury stock at the end of the period
As of March 31, 2019:274,487 shares
As of June 30, 2018:364,422 shares
3) Average number of shares during the period
Nine months ended March 31, 2019
: 15,599,847 shares
Nine months ended March 31, 2018
: 15,478,430 shares* These consolidated financial results are not subject to quarterly audit procedures by certified public accountants or audit
firms.
* Explanation of the proper use of financial results forecast and other notes(Caution regarding forward-looking statements)
The earnings forecasts and other forward-looking statements disclosed herein are based on information available to theCompany 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

Table of Contents of Attachment
1. Qualitative Information on Quarterly Financial Results ............................................................................................. 2(1) Explanation of Operating Results .......................................................................................................................... 2(2) Explanation of Financial Position .......................................................................................................................... 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ....................... 4
2. Quarterly Consolidated Financial Statements and Primary Notes .............................................................................. 5(1) Quarterly Consolidated Balance Sheets ................................................................................................................. 5(2) Quarterly Consolidated Statement of Income and Comprehensive Income .......................................................... 7(3) Quarterly Consolidated Statement of Cash Flows ................................................................................................. 8(4) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 9(Notes on Going Concern Assumption) ................................................................................................................ 9(Notes on Significant Changes in Shareholders’ Equity) ...................................................................................... 9(Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements) .. 9
(Changes in Accounting Policies that are difficult to distinguish from Changes in Accounting Estimates, andChanges in Accounting Estimates) ........................................................................................................................ 9(Segment Information) ........................................................................................................................................ 10(Significant Subsequent Events).......................................................................................................................... 11
3. Other Information ...................................................................................................................................................... 12(1) Status of Orders and Sales ................................................................................................................................... 121

1.

Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the nine months ended March 31, 2019 (from July 1, 2018 to March 31, 2019), 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 conditions, while some weakness was observed in exports and industrial
production in some sectors. In contrast, overseas economies showed a sign of slowdown. Uncertainties
continued in the ongoing trade negotiations, the outlook of emerging economies, each country's political measures,and fluctuations of financial and capital markets.
The business environment of Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries (together, the “Group”)
experienced firm demand in each business segment. In the Domestic Consulting Operations, the Group undertook
measures to prevent and mitigate damage caused by natural disaster, and also to prevent deterioration of
infrastructure for public works projects. In the International Consulting Operations, we promoted the Japanese
government's infrastructure and systems export strategy, while the Power Engineering Operations saw demand ina replacement of power distribution equipment. In the Urban & Spatial Development Operations, BDP Holdings
Limited and its subsidiaries (hereinafter referred to under the general label “BDP”) were involved in theconstruction and renovation of public facilities in the United Kingdom, its main market, and the Energy Business
Operations experienced rising demand for renewable energy as a result of the shift towards low-carbon societiesand distributed power sources.
Under these circumstances, based on the Medium-Term Management Plan “NK-Innovation 2021” (from July
2018 to June 2021), with the fundamental principles of “Continue evolution into global consulting and engineering
firm,” the Group tackled the five business strategies of “Enhancement of operating system for Railways Business,”“Overseas expansion of Urban & Spatial Development Business,” “Establishment of Energy Business,” “Creationof businesses and overseas expansion of Consulting Business,” and “Product development and overseas expansionof Power Engineering Business.” Moreover, as group-wide measures to realize these goals, the Group actively
advanced “Establishment of one-stop marketing system,” “Investment in technologies and human resources,” and“Enhancement of group governance.”
In terms of Group performance for the nine months ended March 31, 2019, as a result of the above, orders received
increased 2.1% year on year to ¥71,995 million and net sales increased 9.8% year on year to ¥74,162 million. In
contrast, operating income decreased 6.2% year on year to ¥2,936 million due to an increase in selling general andadministrative expenses, and ordinary income decreased 15.9% year on year to ¥2,704 million due partly to a loss
on valuation of investment securities. Income attributable to owners of parent decreased 39.3% year on year to¥1,468 million due to the recording of a gain on sales of property, plant, and equipment in the nine months ended
March 2018.
Net sales for the nine months ended March 31, 2019 were ¥74,162 million, an achievement rate of 64.5% against
the net sales forecast of ¥115,000 million for the fiscal year ending June 30, 2019 (nine months ended March 31,
2018: 63.7%).
Business results for each segment are as follows:[Domestic Consulting Operations]
The Domestic Consulting Operations worked to further reinforce its management base, by reconstructing orderreceipt and production systems, securing and improving quality, while also pursuing more effective business
management. In addition, we worked to support the actions under the global strategy cooperating with theInternational Consulting Operations and the R&D Center, as well as to develop new businesses by utilizing themanagement know-hows, as its core, to improve the value of infrastructure.

2

As a result, orders received increased 6.2% year on year to ¥32,283 million. Net sales increased 28.2% year on
year to ¥33,189 million, operating income increased 126.3% year on year to ¥2,806 million and ordinary income
increased 155.4% year on year to ¥2,781 million.
[International Consulting Operations]
In the International Consulting Operations, we worked to acquire and develop human resources, mainly in therailways business, as well as strengthening the production system by enhancing project management capabilities,
and practicing strict management of profit, risks and safety. In addition, we were actively involved in theconcessions business, which leverage public sector facility concessions in the Public Private Partnership (PPP),
Private Finance Initiative (PFI) businesses and the private sector business.
As a result, orders received for the nine months ended March 31, 2019 decreased 8.5% year on year to ¥17,775
million due partly to a delay in conclusion of contracts for a large-scale project. Net sales decreased 18.4% year
on year to ¥16,384 million, operating income decreased 86.9% year on year to ¥286 million, and ordinary income
decreased 91.8% year on year to ¥160 million.
[Power Engineering Operations]
In the Power Engineering Operations, we expanded the mechanical and electrical consulting business by entering
into new areas such as traffic, transport, as well as maintenance and management in view of global businessdevelopment. Further, we strengthened the group-wide cooperation in the energy-related business as well as
maintenance and management business, and we strove to develop products and technologies with a global standard
specification. We also continued to enhance price competitiveness and sales capabilities with a rigorous cost
reduction.
As a result, orders received for the nine months ended March 31, 2019 decreased 23.8% year on year to ¥9,619
million due to the receiving of a large-scale order in the nine months ended March 31, 2018. In contrast, net sales
increased 8.8% year on year to ¥11,942 million due to sales from unfilled orders, operating income increased 33.7%
year on year to ¥1,676 million, and ordinary income increased 17.7% year on year to ¥1,621 million.
[Urban & Spatial Development Operations]
In the Urban & Spatial Development Operations, as well as responding to changes in the UK market, we expanded
our business in the Asian market through collaboration with another Group member based in Singapore, also aiming
to break into the markets of British Commonwealth of Nations countries.
As a result, orders received increased 46.6% year on year to ¥11,771 million.
Net sales increased 13.5% year on year to ¥11,074 million, while operating income decreased 49.1% year on yearto ¥74 million due to an increase in selling general and administrative expenses, and ordinary income decreased
78.3% year on year to ¥31 million.
BDP Holdings Limited, our consolidated subsidiary, acquired shares in a Canadian architectural design firm,
Quadrangle Architects Limited (hereinafter referred to as “Quadrangle”) on February 4, 2019, making Quadrangle
a consolidated subsidiary from the third quarter under review.
[Energy Business Operations]
The Energy Business Operations promoted profitability in the power generation business such as throughrenewable energy and worked to form new projects including PFI business. In addition, we accumulated a trackrecord in the renewable energy and storage battery EPC (engineering, procurement & construction) business in theenergy management business, further sought to promote the resource aggregator (an operator that plays a majorrole in control and management in relation to both energy operators and sources of demand) and VPP (virtual power
plant) businesses.
As a result, orders received were ¥470 million and net sales were ¥577 million, while operating loss was ¥173
million and ordinary loss was ¥221 million due partly to the prior investment in an overseas energy managementbusiness.
3

[Real Estate Leasing Operations]
In the Real Estate Leasing Operations, net sales decreased 1.6% year on year to ¥325 million, while operating
income increased 1.5% year on year to ¥301 million and ordinary income increased 1.5% year on year to ¥302
million.
(2) Explanation of Financial Position
Total assets as of March 31, 2019, amounted to ¥139,386 million, an increase of ¥25,496 million from the end of
the previous fiscal year.
In the Assets section, current assets were ¥76,033 million, an increase of ¥21,769 million from the end of theprevious fiscal year. This was mainly due to a ¥20,407 million increase in notes and accounts receivable-trade anda ¥3,253 million increase in work in process.
Non-current assets were ¥63,353 million, an increase of ¥3,727 million from the end of the previous fiscal year.
This was mainly due to a ¥1,553 million increase in the amount of good will.
In the Liabilities section, current liabilities were ¥54,468 million, an increase of ¥26,026 million from the end of
the previous fiscal year. This was mainly due to a ¥21,500 million increase in short-term loans payable.
Non-current liabilities were ¥25,447 million, a decrease of ¥551 million from the end of the previous fiscal year.
This was mainly due to a ¥151 million decrease in long-term loans payable and a ¥150 million decrease in liability
for retirement benefits.
Net assets were ¥59,470 million, an increase of ¥21 million from the end of the previous fiscal year. The primaryfactors behind this were ¥1,468 million in net income attributable to owners of parent, ¥1,192 million in cash
dividends paid and a ¥435 million decrease in valuation difference on available-for-sale securities.
As a result, the shareholders’ equity ratio decreased 9.3 percentage points from the end of the previous fiscal year
to 41.9%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The consolidated financial results forecast for the fiscal year ending June 30, 2019 have not changed from theforecast announced in the Consolidated Financial Results for the Fiscal Year Ended June 30, 2018 dated August
13, 2018.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of June 30, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 201916,392
26,214
7,942
3,796
(83)
54,263

13,57046,622
11,196
4,727(83)
76,033

6,082
16,598
4,943
27,624

5,878
16,6008,224
30,703

8,185
4,778
12,964

9,739
4,383
14,122

19,214(177)
19,03759,626
113,890

18,697(169)
18,52863,353
139,386

(Millions of yen)
As of June 30, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Provision for directors' bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
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
Defined retirement benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2019

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

7,521
21,500
1,992
913
10,957
2,706
132
8,745
54,46818,934
32
34
3,873
3,124
25,99954,44018,783
30
34
3,723
2,876
25,447
79,9157,415
6,466
45,528(1,180)58,2297,437
6,488
45,804(906)
58,823

1,195(2,045)
983
133
1,086
59,449113,890759(2,107)
928
(419)
1,066
59,470139,386

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
For the Nine months ended March 31, 2018 and 2019
(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Gain on sales of investment securities
Gain on derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Share of loss of entities accounted for using equity method
Foreign exchange losses
Loss on derivatives
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of property, plant and equipment
Total extraordinary income
Extraordinary losses
Head office transfer expenses
Total extraordinary losses
Income (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income (loss)
Net income (loss) attributable to
Net income (loss) attributable to owners of parent
Net income (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
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income (loss)
Comprehensive income (loss)
Comprehensive income (loss) attributable toComprehensive income (loss) attributable to owners of parent
Comprehensive income (loss) attributable to non-controlling7

For the nine months
ended March 31, 2018
(From July 1, 2017
to March 31, 2018)
67,52246,00021,522
18,3913,131

For the nine months
ended March 31, 2019
(From July 1, 2018
to March 31, 2019)
74,162
51,465
22,697
19,760
2,936

124
219
158
152
654

184
111
143
196
636

158
153
5
151
98
568
3,217

205
250
166
185
60
868
2,704

1,276
1,276

-

488
488
4,004
1,013
575
1,588
2,416

2,704
1,302
(68)
1,233
1,470

2,419
(3)

1,468
2

(336)
290
(32)

(436)
(50)
(55)

-

(18)

(79)
2,337

(561)
909

2,356
(19)

914
(5)

(3) Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on valuation of investment securities
Share of loss (gain) of entities accounted for using equity method
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
Loss (gain) on derivatives
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
Increase(decrease) in consumption taxes receivable/payable
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 investment securities
Proceeds from sales of investment securities
Purchase of shares in subsidiaries resulting in change inscope of consolidation
Payments of loans receivable
Proceeds from liquidation of subsidiaries
Other, net
Net cash provided by (used in) investing activities
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
Cash and cash equivalents at end of period

8

For the nine months
ended March 31, 2018
(From July 1, 2017
to March 31, 2018)(Millions of yen)
For the nine months
ended March 31, 2019
(From July 1, 2018
to March 31, 2019)

4,004
1,166
357
153
(1,280)
8
1,248
90
(343)
151
(17,236)(6,870)
3,090
90
1,906
(1,712)(2,442)(17,618)298(120)(1,549)(18,990)

2,704
1,178
379
250
166
1
(7)
846
(44)
(295)
(143)
(19,447)(3,239)
2,981
(204)
2,266
(525)
(2,344)(15,476)201(148)(1,281)(16,704)

1,418
(399)
2,336
(898)
172

431
(3,549)
3
(427)
555

-

(2,685)

(586)
(5)
2,038

(622)
86
164
(6,044)13,000(1,166)202(24)(1,189)(34)
10,78752(6,112)
17,083
10,971

21,5001,247(1,457)280(7)(1,187)(34)
20,341(7)(2,414)
15,233
12,818

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in Shareholders’ Equity)
In accordance with the resolution of the Extraordinary Board of Directors Meeting held on September 27, 2018,
we issued new shares as restricted stock compensation for Directors on October 26, 2018. As a result, capital stockand capital reserve increased by ¥22 million, respectively, during the nine months ended March 31, 2019.
Subsequently, capital stock and capital surplus at the end of the first nine months of the fiscal year were ¥7,437
million and ¥6,488 million, respectively.
(Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements)(Deferral of cost variance)
Cost variance caused by seasonal changes in operation rates, etc. is expected to be almost completely
eliminated by the end of the cost accounting period, which is, therefore, deferred as other current liabilities.

(Changes in Accounting Policies that are difficult to distinguish from Changes in Accounting Estimates, andChanges in Accounting Estimates)(Change in depreciation method for property, plant and equipment)
We took the opportunity provided by drawing up the Medium-term Management Plan, whose first year is thecurrent fiscal year, to investigate the status of property, plant and equipment usage. As a result, because it isexpected that the economic benefit derived from property, plant and equipment will be consumed equally overits useful life at some of our domestic subsidiaries, from the first quarter ended September 30, 2018 thedepreciation method for property, plant and equipment has been changed from the declining-balance method
to the straight-line method, and costs have been allocated more appropriately.
Also, as a consequence of this change in the depreciation method, for certain property, plant and equipment
assets, upon consideration of the price at the time of disposal, the residual value has been changed to amemorandum of value.
As a result of this change, the depreciation expenses for the third quarter of the fiscal year decreased by ¥51
million, and each of operating income, ordinary income, and income before income taxes increased by ¥51
million from the amounts based on the previous method.

9

(Segment Information)
I.

For the nine months ended March 31, 2018 (from July 1, 2017 to March 31, 2018)1)

Net sales and segment income or loss by reportable segment(Millions of yen)
Reportable segment

Operations

Power
Engineering
Operations

25,892

20,077

10,972334

1626,22620,094

Others(Note)

Real Estate
Leasing
Operations

Subtotal

9,761

-

331

67,034488

67,522

179

24

-

118

672

1

674

11,151

9,785

-

449

67,707490

68,197

Segment income (loss)
1,089
1,951
1,377
144
297
4,860
(1,656)(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

3,203

2)

International

Urban &

EnergyBusiness
Operations

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total

Domestic
Consulting
Operations

Consulting

SpatialDevelopment
Operations

Total

Differences between the total amount of income or loss of reportable segments and the amounts in quarterly
consolidated statement of income and comprehensive income, and major breakdown of such differences(reconciliation)(Millions of yen)
IncomeAmountReportable segment total

4,860

Loss of “others” category(1,656)

Elimination of intersegment transactions

13

Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income

3,217

10

II.

For the nine months ended March 31, 2019 (from July 1, 2018 to March 31, 2019)1)

Net sales and segment income or loss by reportable segment(Millions of yen)
Reportable segment
International
Operations

Power
Engineering
Operations

33,18916,384

11,942546

55

33,735

16,439Urban &

Others(Note)

EnergyBusiness
Operations

Real Estate
Leasing
Operations

Subtotal

11,074577

325

73,494

668

74,162

208

57

-

123

991

750

1,741

12,151

11,132577

449

74,485

1,418

75,904

2,781
160
1,621
31
(221)
302
4,675
(1,984)(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

2,690

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total

Domestic
Consulting
Operations

Consulting

SpatialDevelopment
Operations

Total

Segment income (loss)

2)

Differences between the total amount of income or loss of reportable segments and the amounts in quarterly
consolidated statement of income and comprehensive income, and major breakdown of such differences(reconciliation)(Millions of yen)
IncomeAmountReportable segment total

4,675

Loss of “others” category(1,984)

Elimination of intersegment transactions

14

Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income

3)

2,704

Information regarding changes in reportable segments, etc.
In the previous fiscal year, we established the Energy Business Division with its business domains of electric
power generation and energy management using distributed energy, and therefore added “Energy Business
Operations” to the reportable segments.
The segment information for the nine months ended March 31, 2018 disclosed as comparative information to
the nine months ended March 31, 2019 is stated according to the revised designation of the reportable segment.

4)

Reportable segment information concerning impairment losses on noncurrent assets, goodwill, etc.
(Significant change in the amount of goodwill)
During the nine months ended March 31, 2019, BDP Holdings Limited, our consolidated subsidiary, acquired
the shares in Quadrangle and newly included the company within the scope of consolidation. As a result, theamount of goodwill of 23 million Canadian dollars (equivalent to ¥1,929 million) has been incurred in thereporting segment of Urban & Spatial Development Operations.
The amount of goodwill has been temporarily calculated based on reasonable information available, mainly
because the acquisition cost is yet to be allocated for the nine months ended March 31, 2019.

(Significant Subsequent Events)
There is no relevant information.

11

3. Other Information(1) Status of Orders and Sales

Net sales 2

Net sales 1

Orders received

By period_ For the nine months ended For the nine months ended
March 31, 2018
March 31, 2019
AmountAmountCategory/Segment
Ratio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)Domestic Consulting
30,39043.1
32,28344.8
International Consulting
19,422
27.5
17,775
24.7
Power Engineering

12,619

17.9

9,619

13.4

15,943

15.3

Urban & Spatial Development

8,031
--

11.4

11,771

16.3

12,855

12.3

470
--

0.7

179
--

0.2

Energy Business--

Real Estate Leasing
Others

41

0.1

74

0.1

(Note 1) 126

0.1

Total

70,505100.0

71,995100.0

104,350

100.0

Domestic Consulting
International Consulting

27,266
21,25440.4
31.5

35,072
17,333

47.3
23.4

48,78430,70346.0
29.0

Power Engineering

8,892

13.2

9,803

13.2

12,616

11.9

Urban & Spatial Development
Energy Business

9,752
--

14.4

11,056
491

14.9
0.7

12,998
354

12.3
0.3

Real Estate Leasing

331

0.5

325

0.4

440

0.4

OthersTotal

26
67,522

0.0
100.0

78
74,162

0.1
100.0

125
106,0230.1
100.0

Domestic Consulting

25,892

38.3

33,18944.8

46,595

43.9

International Consulting
Power Engineering

20,077
10,972

29.7
16.2

16,384
11,942

22.1
16.1

28,88915,762

27.3
14.9

Urban & Spatial Development

9,761
--

14.6

11,07414.9

13,040

12.3

331

0.5

577
325

0.8
0.4

354
440

0.3
0.4

Energy Business
Real Estate Leasing
Others

488

0.7

668

0.9

940

0.9

Total

67,522100.0

74,162100.0

106,023100.0

By period_

Impact of foreignexchange fluctuations

Category/Segment

Outstanding Orders

For the fiscal year ended
June 30, 2018
AmountRatio (%)
(Millions of yen)
48,52946.5(Note 1) 26,716
25.6

Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
Energy Business
Real Estate Leasing
Others

As of March 31, 2018
As of March 31, 2019
AmountAmountRatio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)--(1,250)(1,036)32--

0

As of June 30, 2018
AmountRatio (%)
(Millions of yen)
--

378
---

(24)

0
(57)

---

---

--

--

--

(871)

(1,093)Total
Domestic Consulting

34,45726.8

828,28923.1

31,07825.0

International Consulting

68,28553.1

66,81954.6

66,34553.5

Power Engineering
Urban & Spatial Development

13,433
12,346
--

10.5
9.6

12,85014,17910.4
11.6

13,034
13,488

10.5
10.9

327

0.3

116
--

0.1

0.0

24

0.0

100.0

124,087

100.0

Energy Business
Real Estate Leasing
Others
Total

-39

0.0

21

128,563100.0

122,487

Notes: 1. This includes the outstanding orders at the beginning of consolidation for Myanmar Koei International Ltd. and DSI Inc.,
which were consolidated from the previous fiscal year.
2. The above amounts are exclusive of consumption taxes.
3. The above amounts are for external customers, and do not include intersegment 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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