Consolidated Financial Results
for the Fiscal Year Ended June 30, 2021
[IFRS]

August 13, 2021
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english
Representative: Hiroaki Shinya, Representative Director and President
Contact: Yasushi Hirusaki, Director General, Corporate Management Headquarters
Phone: +81-3-3238-8040
Scheduled date of holding general shareholder’s meeting: September 29, 2021
Scheduled date of commencing dividend payments: September 9, 2021
Scheduled date of filing securities report: September 29, 2021
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, 2021 (July 1, 2020 to June 30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)
ProfitRevenue
Operating profit Profit before tax
Profitattributable toowners of parent
Fiscal year ended
Million yen% Million yen% Million yen% Million yen% Million yen%
June 30, 2021
117,859
8.7
7,128 35.9
7,176 42.7
4,518 39.2
4,531 46.2
June 30, 2020
108,441
5,245
5,029
3,246
3,099
Basic earnings
per share

Diluted earnings
per share

Return on equity
attributed toowners of parent

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

Fiscal year ended
Yen
Yen
%
%
%
June 30, 2021
300.00300.00
6.7
4.7
6.0
June 30, 2020
204.94204.944.8
3.6
4.8(Reference) Share of profit of investments accounted (Equity method):Fiscal year ended June 30, 2021 : ¥35 million
Fiscal year ended June 30, 2020 : ¥144 million(2) Consolidated Financial Position
Total assets
Fiscal year ended
June 30, 2021
June 30, 2020

Million yen
156,137
147,408

Total equity
Million yen
72,29465,721Equityattributable toowners of parent
Million yen
70,72564,219Ratio of equity
attributable toowners of parent tototal assets

Equity attributable toowners of parent per
share

%
45.3
43.6

Yen
4,699.82
4,260.82(3) Consolidated Cash Flows
Fiscal year ended
June 30, 2021
June 30, 2020

Cash flows fromoperating activities
Million yen
12,073
4,365

Cash flows frominvesting activities
Million yen(2,750)(7,129)1

Cash flows fromfinancing activities
Million yen(7,928)
4,529

Cash and cash equivalents
at end of period

Million yen
17,83815,472

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

3rdquarter-end

Year-end

Total

Total
Dividend on
Payout ratio
dividends paid (consolidated)
equity ratio(annual)(consolidated)

Fiscal year ended June 30, 2021

Yen
-

Yen
-

Yen
-

Yen
75.00
75.00

Yen Million yen
75.00
1,138
75.00
1,128

%
36.6
25.0

Fiscal year ending June 30, 2022
(Forecast)

-

-

-

100.00100.00

32.0

Fiscal year ended June 30, 2020

%
1.8
1.7

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)(% indicates changes from the previous fiscal year.)
Profit attributable to
Basic earnings
Revenue
Operating Profit
owners of parent
per share
Million yen% Million yen% Million yen%
Yen
Full year
131,000
11.1
7,700
4,700
312.328.0
3.7(Note) Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on theinformation available to the Company as of the date of publication of this document. Since the forecast may change
significantly depending on when the COVID-19 is contained and other variables, the Company will disclose revised
forecasts as soon as possible if any revisions become necessary based on its performance outlook.
* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
New companies: None
Excluded companies: None
(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock)
Fiscal year ended June 30, 2021
: 15,048,568 sharesFiscal year ended June 30, 2020
: 15,933,058 shares2) Total number of treasury stock at the end of the period
Fiscal year ended June 30, 2021:
60 shares
Fiscal year ended June 30, 2020:
861,023 shares
3) Average number of shares during the period
Fiscal year ended June 30, 2021
: 15,106,105 sharesFiscal year ended June 30, 2020
: 15,124,770 shares

2

(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2021 (July 1, 2020 to June 30, 2021)(1) Nonconsolidated Operating Results(% indicates changes from the previous fiscal year.)
Revenue
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
June 30, 2021
73,9706.5
4,185 159.5
5,750
83.3
2,480
(1.8)
June 30, 2020
69,4312.1
1,613 (40.5)
3,136
(6.7)
2,526
8.5
Net income
per share
Fiscal year ended
June 30, 2021
June 30, 2020

Yen
164.23167.07

Diluted net income
per shareYen-(2) Nonconsolidated Financial Position
Total assets
Net assets
Fiscal year ended
Million yen
Million yen
June 30, 2021
110,295
55,043June 30, 2020
106,240
53,444(Reference) Equity: Fiscal year ended June 30, 2021: ¥55,043 million
Fiscal year ended June 30, 2020: ¥53,444 million

Equity ratio
%
49.9
50.3

Net assets per share
Yen
3,657.72
3,545.95

2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)(% indicates changes from the previous fiscal year.)
Net income
Revenue
Ordinary income
Net income
per share
Million yen%
Million yen%
Million yen%
Yen
Full year
82,00010.9
4,800 (16.5)
3,500 41.1
232.58(Note) Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on theinformation available to the Company as of the date of publication of this document. Since the forecast may change
significantly depending on when the COVID-19 is contained and other variables, the Company will disclose revised
forecasts as soon as possible if any revisions become necessary based on its performance outlook.
* 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 September 8, 2021.
The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s
website.
3. The Group has applied International Financial Reporting Standards (IFRS) from the year-end of fiscal year ended
June 30, 2021. In addition, financial figures for the previous fiscal year are also disclosed in accordance with IFRS.

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 ............................................................................. 4(3) Overview of Cash Flows for the Current Fiscal Year ....................................................................................... 4(4) Future Outlook.................................................................................................................................................. 5
2. Basic Policy Regarding Selection of Accounting Standard.................................................................................... 7
3. Consolidated Financial Statement .......................................................................................................................... 8(1) Consolidated Statement of Financial Position .................................................................................................. 8(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income .............. 10(3) Consolidated Statement of Changes in Equity ............................................................................................... 12(4) Consolidated Statement of Cash Flows .......................................................................................................... 13(5) Notes to Consolidated Financial Statements .................................................................................................. 14(Notes on Going Concern Assumption) ............................................................................................................... 14(Segment Information) ......................................................................................................................................... 14(Per Share Information)........................................................................................................................................ 17(Significant Subsequent Events) .......................................................................................................................... 17(First-time Adoption)............................................................................................................................................ 18
4. Other..................................................................................................................................................................... 29(1) Status of Orders and Sales .............................................................................................................................. 29(2) Changes in Directors ...................................................................................................................................... 30

1

1.

Overview of Operating Results, etc.
Matters concerning the future in the text are based on judgments as of the end of the consolidated fiscal year underreview.
The Group has changed the accounting standards to be applied from the end of the consolidated fiscal year underreview to IFRS. Therefore, the financial figures for the previous consolidated fiscal year are also presented inaccordance with IFRS.

(1) Overview of Operating Results for the Current Fiscal Year
During the fiscal year under review (from July 1, 2020 to June 30, 2021), the Japanese economy remained in asevere condition due to the impact of the novel coronavirus (COVID-19). While the recovery is expected to continue
due to an improvement in overseas economies as measures are taken to prevent the spread of infection andvaccinations are promoted, we need to pay close attention to the impact of COVID-19 on the domestic andinternational economy. Similarly, we need to closely monitor the impact of fluctuations in financial and capital
markets.
With regard to the business environment surrounding Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), the Domestic Consulting Business was strong since the Japanese government’s budget for
public works projects in fiscal years 2020 and 2021 was maintained at the same level as the previous fiscal year. On
the other hand, the International Consulting Business was affected by travel restrictions accompanying the spread of
COVID-19 although the Japanese government continued with its strategy for exporting high-quality infrastructure
systems. In the Power Engineering Business, new business opportunities are expected as a result of the reform of theelectric power system while the tough business environment continued as customers continued to request cost
reductions when upgrading existing electric power facilities. In the Urban & Spatial Development Business, theeconomy of the UK, which is a major market, is recovering to the pre-pandemic scale and global demand forinfrastructure development increased as urbanization progressed in Asian countries. In the Energy Business, demand
for renewable energy grew as the world shifted to development of decarbonization and energy resource
decentralization.
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,” “Creation ofbusinesses and overseas expansion of Consulting Business,” and “Product development and overseas expansion ofPower Engineering Business.” Moreover, as group-wide measures to realize these goals, the Group advanced“Establishment of one-stop marketing system,” “Investment in technologies and human resources,” and“Enhancement of group governance.”
On the other hand, the Group is taking steps to prevent COVID-19 with an active defense system to protect the lives
and health of employees and their families and to minimize the impact on customers due to delays in business progress.
In addition, our internal policy is to promote telework and other work style reforms in order to achieve a better worklife balance and increase productivity.
As a result, the Group’s consolidated results for the fiscal year under review were as follows: Although orders
received decreased 8.0% year on year to ¥133,304 million, revenue increased 8.7% year on year to ¥117,859 million,
operating profit increased 35.9% year on year to ¥7,128 million and profit attributable to owners of parent increased
46.2% year on year to ¥4,531 million, thanks to the solid demand and efficient business operations in the Domestic
Consulting Business and International Consulting Business.
Business results for each segment are as follows:[Domestic Consulting]
As for the Domestic Consulting Business, we promoted the assignment of human resources engaged in theInternational Consulting Business to work within Japan, receiving orders jointly and reducing outsourcing of work.

2

At the same time, we worked to develop new businesses by utilizing management knowhow as the core to improvethe value of infrastructure through collaboration with the International Consulting Business and the R&D Center.
As a result, orders received increased 4.6% year on year to ¥62,047 million, revenue increased 10.8% year on year
to ¥55,345 million, and operating profit increased 23.9% year on year to ¥6,128 million due to operational efficiency
improvement and reduction of costs such as travel expense.
[International Consulting]In the International Consulting Business, we worked on acquiring and developing human resources, mainly in therailways business, while enhancing project management capabilities to strengthen the production system andpracticing strict management of profit, risks, and safety. In addition, we reviewed contracts and promoted domestic
business operations in response to the impact of the spread of COVID-19.
As a result, orders received decreased 25.0% year on year to ¥35,721 million. This was due to a reactionary decrease
from the previous fiscal year when orders for large-scale projects were received and due to delays in orders becauseof the influence of COVID-19, etc. Revenue increased 9.4% year on year to ¥24,753 million and operating profit
increased 261.1% year on year to ¥1,853 million due to the decrease in costs because of travel restrictions.
[Power Engineering]
In the Power Engineering Business, we expanded the mechanical and electrical consulting business into new areas
including traffic and transportation, as well as maintenance and management in view of global development, andstrengthened group-wide cooperation. We also made efforts to increase price competitiveness with rigorous cost
reductions and enhance the sales force.
As a result, orders received decreased 30.0% to ¥13,880 million. This was due to a reactionary decrease from theprevious fiscal year when orders for large-scale projects were received although orders received were boosted byorders for dam monitoring and control systems, etc. and revenue increased 2.9% year on year to ¥15,831 million.
Operating profit decreased 13.8% year on year to ¥858 million due to the additional provision for loss on construction
contracts of ¥317 million resulting from budget overruns for the vertical water turbine projects.
[Urban & Spatial Development]
In the Urban & Spatial Development Business, we responded to changes in the U.K. market and expanded ourbusiness in the Commonwealth markets, centering on Canada, while making efforts to expand our business in the
Asian market through Group-wide collaboration by Singapore Representative Office.
As a result, orders received increased 20.0% year on year to ¥21,457 million due to additional orders for theWestminster Palace renovation project in the UK as well as more orders received in the medical and educational
fields. Revenue increased 11.7% year on year to ¥20,274 million and operating profit increased 28.8% year on yearto ¥2,266 million due to the improvement in the operation rate of BDP HOLDINGS LIMITED and its subsidiaries(hereinafter collectively referred to as "BDP group").
[Energy]In the Energy Business, we worked to improve earnings by enhancing facility operation and formulating new
projects in the power generation business such as renewable energy. We promoted the renewable energy and battery
storage business mainly in Europe and formulation of infrastructure for the aggregation business (a business thatprovides energy services through electricity market transactions, etc. by aggregating distributed energy sources) inJapan. However, we are seeing delays in the rollout of the business in Europe. An impairment loss was recorded fora hydroelectric power plant in Java, Indonesia, that is under construction by PT. CIKAENGAN TIRTA ENERGI, aconsolidated subsidiary. This is owing to repair work and business plan review as a result of ground deformation
caused by abnormal rainfall.
As a result, orders received decreased 28.9% year on year to ¥111 million, and revenue fell 26.1% year on year to¥790 million from the previous fiscal year when sales of the UK battery storage EPC (Engineering Procurement

3Construction) business were recorded. Operating loss increased 440.4% year on year to ¥1,919 million due to theabove-mentioned impairment loss of ¥1,739 million.
[Real Estate Leasing]
In Real Estate Leasing Business, revenue increased 72.7% year on year to ¥778 million and operating profit
increased 64.0% year on year to ¥585 million.
(2) Overview of Financial Position for the Current Fiscal Year
Total assets as of the end of the current fiscal year amounted to ¥156,137 million, an increase of ¥8,729 million
from the end of the previous fiscal year. This was mainly due to a ¥2,365 million increase in cash and cash equivalents
and a ¥2,901 million increase in contract assets.
Total liabilities were ¥83,843 million, an increase of ¥2,156 million from the end of the previous fiscal year. Thiswas mainly due to a ¥3,640 million increase in other current liabilities, a ¥1,069 million increase in income taxes
payable, and a ¥1,043 million increase in trade and other payables while a ¥3,669 million decrease in borrowings.
Total equity were ¥72,294 million, an increase of ¥6,573 million from the end of the previous fiscal year. This was
mainly due to a decrease in treasury shares of ¥2,415 million.
As a result, ratio of equity attributable to owners of parent to total assets increased 1.7 percentage points from theend of the previous fiscal year to 45.3%.

(3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents at the end of the current fiscal year was ¥17,838 million, an increase of ¥2,365 million
from the end of the previous fiscal year. The primary factors were as follows.
Net cash provided by operating activities was ¥12,073 million (a net inflow of ¥4,365 million during the previous
fiscal year). This was mainly due to profit before tax of ¥7,176 million, impairment losses of ¥1,739 million, a ¥1,564
million increase in accrued expenses, and a ¥2,203 million increase in consumption taxes payable.
Net cash used in investing activities was ¥2,750 million (a net outflow of ¥7,129 million during the previous fiscal
year). This was mainly due to the purchase of property, plant and equipment.
Net cash used in financing activities was ¥7,928 million (a net inflow of ¥4,529 million during the previous fiscal
year). This was mainly due to the repayments of short-term borrowings.
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 2017
June 2018
June 2019
June 2020
June 2021
Ratio of equity attributable toowners of parent to total assets(%)
Ratio of equity attributable toowners of parent to total assets
on market value basis (%)

47.9

51.2

52.2

43.6

45.3

43.3

37.5

32.4

29.0

29.7

Interest-bearing debt to cash
flow ratio (years)

3.6

-

6.3

7.0

2.2

Interest coverage ratio (times)

31.7

-

11.7

10.9

27.8

Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners of parent / Assets
Ratio of equity attributable to owners of parent to total assets on market value basis: Total market capitalization / Assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expenses
Notes: 1. All indicators are calculated using financial figures on a consolidated basis.
2. Total market capitalization is calculated based on the number of issued shares excluding treasury shares.
3. Cash flows from operating activities are used for the cash flows.
4. Interest-bearing debt covers all debt recorded in the consolidated statement of financial position for which interest is paid.

4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.
6. Of the above indicators, those from the fiscal year ended June 30, 2020 are based on the consolidated financial statements
created in accordance with the International Financial Reporting Standards (IFRS).

(4) Future Outlook
In June 2021, we announced the long-term management strategy "NKG (Nippon Koei Group) Global Strategy 2030",
under the concept of “Working Together toward a Future Without Boundaries.” By working together with various
internal and external partners, we will provide new values through intellectual exploration and technologicalinnovation and integration. We will aim to be a corporate group that helps to bring about a society where people canactually feel richness. We set the numerical targets for the fiscal year ending June 2030 as revenues of ¥250 billion,
operating profit of ¥25 billion, operating profit margin of 10% and ROE of 15%.
We recognize that the business environment surrounding the Group is one where we are required to take immediate
action for issues such as climate change and disparities due to rapid urbanization, etc. In the Consulting Business, ahigh level of the Japanese government’s budget is expected to continue to be maintained mainly for national resilience(building a national land, region, and economic society that can minimize damage and quickly recover in the eventof a disaster) in the domestic market. We expect to see acceleration of digital reform and growing needs for
management business. In the international market, there are risks related to carrying out business as well as travel
restrictions due to the impact of the spread of COVID-19. But strong demand is expected to continue as high targets
for orders received are set in the Japanese government's “Infrastructure System Overseas Promotion Strategy 2025.”
In the Urban & Spatial Development Business, there are strong needs for urban development projects includingreconstruction of the urban structure in Japan, Europe and the United States, etc. and urban infrastructure projects indeveloping countries. In the Energy Business, new opportunities have been created leading to competition toward
the realization of carbon neutrality in 2050 in Japan and there are growing needs for renewable energy development
and better efficiency of energy use worldwide.
Under such a market environment, we have drawn up the medium-term management plan “Building Resilience2024” to implement three resilience policies, and positioned the period from July 2021 to June 2024, which is firststep of the “NKG Global Strategy 2030,” as a transformation period to make the Group resilient.
As the first resilience policy, we will reorganize the conventional five business operations into three domains(Consulting, Urban & Spatial Development, and Energy) to strengthen the business axis. As the second resilience
policy, we will aim to realize matrix management by shifting to a pure holding company structure and preparing andmaintaining a regional management system. As the third resilience policy, we will strengthen technologicaldevelopment and human resource development toward the establishment of "NKG brand" and "NKG quality." Also,
we will promote “well-being management” (management that values employees, organizations, and society) as abasis for that.

5

The priority issues for each resilience policy are as follows:

Resilience Policy 1.

Consulting Business・Evolve into an organization that can compete in the world by integrating the domestic andinternational consulting operations and Research & Development Center.
・Conduct defensive and offensive business management to provide excellent technology andquality for global markets in the existing businesses as well as in such areas as provision ofdisaster-prevention information and infrastructure monitoring business utilizing satellite data
and AI technology, SDGs consulting business and decarbonization-related business centered on
renewable energy.

Business strategy

Urban & Spatial Development Business・Deploy comprehensive production of urban and regional revitalization projects in Japan andoverseas by integrating both the civil engineering and architecture.
・Expand into such markets as urban development/redevelopment, public-private partnership andsmart city formation through integrated operation among Nippon Koei, Tamano Consultants,
BDP group and Kisho Kurokawa architect & associates.
Energy BusinessResilience Policy 3. Resilience Policy 2.

・Construct foundations for electric power generation and energy management businesses such asbattery storage and aggregation through internal and external collaboration.
・Stabilize the manufacturing business by strengthening the main products and developing new
products (Battery Energy Storage System for FIP (Feed-in-Premium), systems for aggregation
business, control devices for digital substations, etc.)
・ Strengthen the framework of the consulting/engineering business by acquiring new-area
technology, strengthening management capabilities and securing excellent human resources.
・ Realize autonomy and collaboration of the Group companies, faster decision-making, andcoexistence of diversity by shifting to a matrix management framework by the businessstrategy
companies and regional control system with the pure holding company as the core.
・“Think Globally, Act Locally” to aim to meet the needs of people living in the region with worldclass technology and provide support for the realization of one-stop services and the autonomousMarketing strategy
operation of regional business establishments.
・ Strengthen technological development investments mainly in DX (digital transformation)
toward evolution of digital technology to create new customer value (NKG brand)
Human resource / ・Foster world-class human resources by establishing NKG Global Academy (NKG quality)
technology strategy ・ Promote well-being management such as health management, workstyle/workplace reform(management in which the employees are physically and mentally healthy and increase theirmotivation for work and commitment to initiatives)
Organizational

We have set the numerical targets for the fiscal year ending June 30, 2024, which is the final fiscal year of themedium-term management plan “Building Resilience 2024,” as revenue of ¥155 billion, operating profit of ¥11.5
billion, operating profit margin of 7% and ROE of 9%.
With regard to the fiscal year ending June 30, 2022, which is the first fiscal year of the plan, in the Consulting
Business, we will build a base for further growth by improving productivity with the integrated domestic and overseas
operations and working to introduce new quality/environment systems and develop next-generation core technologies.
In the Urban & Spatial Development Business, we will promote the formation of a foundation with the civilengineering and architecture fusion field as the main one through integrated management with the group companies.
In the Energy Business, we will work to strengthen price competitiveness and the production framework of theexisting businesses and build a foundation for growth areas such as renewable energy power generation, battery
storage and aggregation.
By promoting these initiatives, the consolidated financial results forecasts for the fiscal year ending June 30, 2022
are revenue of ¥131 billion (111.1% compared with the previous fiscal year), operating profit of ¥7.7 billion (108.0%
compared with the previous fiscal year) and profit attributable to owners of parent of ¥4.7 billion (103.7% comparedwith the previous fiscal year).

62. Basic Policy Regarding Selection of Accounting Standard
The Group has voluntarily applied IFRS since the end of the consolidated fiscal year under review in order toimprove the international comparability of financial statements in capital markets and improve the quality ofmanagement of the Group by unifying accounting policies.

73. Consolidated Financial Statement(1) Consolidated Statement of Financial Position(Millions of yen)Transition date
As of July 1, 2019
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Othe non-current assets
Total non-current assets
Total assets

8

As of June 30, 2020

As of June 30, 2021

13,242
16,371
19,125407
3,399
52,544

15,472
19,38921,425
1,283
4,456
62,027

17,83821,18924,3271,315
3,900
68,57038,852
10,410
8,193
5,871
1,945
2,440
3,279
6,448
2,035
1,219
80,696133,241

42,039
9,603
7,964
5,480
4,210
1,974
3,817
6,721
2,140
1,427
85,380147,408

40,832
9,229
9,182
6,502
4,094
2,077
4,391
7,434
2,437
1,384
87,566
156,137(Millions of yen)Transition date
As of July 1, 2019
Liabilities and equity
Liabilities
Current liabilities
Borrowings
Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

9

As of June 30, 2020

As of June 30, 2021

2,581
2,858
7,365
8,428
2,876
1,036
123
8,402
33,673

15,7782,445
8,033
10,895
2,586
1,159
589
8,475
49,963

8,320
2,678
9,076
10,645
3,005
2,228
818
12,11548,88917,594
7,551
223
3,967
52
4,796
149
34,33568,00914,923
7,240
639
3,965
83
4,709
161
31,723
81,687

18,712
6,699
648
3,861
375
4,533
122
34,953
83,843

7,437
6,465
(787)
499
50,292
63,907
1,324
65,232
133,241

7,458
6,498
(2,415)
1
52,67564,2191,502
65,721
147,408

7,480
6,428
(0)
2,820
53,99670,725
1,569
72,294
156,137

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

For the fiscal year
ended June 30,2020
108,441(75,202)33,238(28,436)(Millions of yen)
For the fiscal year
ended June 30,2021
117,859(80,124)
37,735(29,173)

144

35

571
(271)
5,245
414
(631)
5,029
(1,782)
3,246

1,207
(2,675)
7,128
519
(471)
7,176
(2,657)
4,518

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Profit (loss)

3,099
146
3,246

4,531
(13)
4,518

Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share

204.94204.94300.00300.00

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted
for using equity method
Other income
Other expenses
Operating profit (loss)
Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)

10

(Consolidated Statement of Comprehensive Income)

Profit (loss)
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit or loss

For the fiscal year
ended June 30,2020
3,246(Millions of yen)
For the fiscal year
ended June 30,2021
4,518

47

395

321

386

-

6

369

788

6
(441)

6
2,392

Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Other comprehensive income (loss)
Comprehensive income

14

33

(420)
(51)
3,194

2,432
3,220
7,738

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

3,050
144
3,194

7,739
(0)
7,738

11

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

Share capital

Balance as of July 1, 2019
Profit (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2020
Profit (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2021

Capital surplus

7,437
21
21
7,458
21
21
7,480

6,465
21
11
0
32
6,498
21
(91)
(0)
(70)
6,428

Treasury shares

Exchangedifferences ontranslation offoreign operations

Cash flow hedges

Financial assets
measured at fairvalue throughothercomprehensive
income(787)(2,001)373(1,628)(2,415)
(429)
382
2,462
2,415
(0)

(432)
(432)
(0)
(0)
(432)
2,415
2,415
(0)
(0)
1,982

(42)
6
6
(36)
6
6
(30)

541
47
47
(118)
(118)
471
395
395
1
1
867

Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined benefit
plans
Balance as of July 1, 2019
Profit (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2020
Profit (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2021

Retained earnings

Total

330
330
(330)
(330)
390
390
(390)
(390)
-

499
(48)
(48)
(0)
(448)
(448)
1
3,207
3,207
(0)
(389)
(389)
2,820

12

50,292
3,099
3,099
28
(1,193)448(716)
52,6754,531
4,531(2,462)(1,138)389(3,210)53,996

Total

63,907
3,099
(48)
3,050
42
28
(2,001)384(1,193)0(2,739)64,219
4,531
3,207
7,739
43
(429)
291
(1,138)(0)(1,233)70,725

Non-controllinginterests

1,324
146
(2)
144
63
(30)
33
1,502
(13)
12
(0)
115
(47)
67
1,569

Total

65,232
3,246
(51)
3,194
42
92
(2,001)384(1,223)0(2,706)65,721
4,518
3,220
7,738
43
115
(429)
291
(1,186)(0)(1,165)72,294

(4) Consolidated Statement of Cash Flows(Millions of yen)
For the fiscal year
ended June 30,2021

For the fiscal year
ended June 30,2020
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Impairment losses
Loss (gain) on financial assets measured at fair value throughprofit or loss
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted for using
equity method
Loss (gain) on derivatives
Loss (gain) on sale of fixed assets
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in provisions
Increase (decrease) in accrued expenses
Increase (decrease) in consumption taxes payableOther
Sub total
Dividends received
Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale and redemption of other financial assets
Payments for acquisition of subsidiaries
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
Dividends paid
Other
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

13

5,029
4,700
-

7,176
4,566
1,739

87

(202)

(335)
407

(397)
424

(144)

(35)

(134)
(1)
(2,966)(2,468)
329
2,561
513
85
(678)
(534)
6,450
137
181
(400)
(2,003)
4,365

(182)
(7)
(1,172)(2,685)
1,242
(733)
498
1,564
2,203
660
14,660
152
251
(433)
(2,556)
12,073(826)(6,725)
(272)
(9)
724
(143)
124
(7,129)(284)
199(2,220)
(651)
(32)
1
238
(2,750)253,000(240,000)(2,508)(3,097)(2,001)(1,228)
365
4,529
1,765
13,242465
15,472

244,000(257,000)
15,043(5,977)(2,801)(429)(1,145)381(7,928)
1,395
15,472970
17,838(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Segment Information)
1. Outline of reportable segments(1) Method of determination of reportable segments
Reportable segments of the 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”,“International Consulting”, “Power Engineering”, “Urban & Spatial Development”, “Energy Business”, and “RealEstate Leasing”.
(2) Types of products and services by reportable segment“Domestic Consulting” 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” engages in businesses outside of Japan such as site surveying, planning,
evaluation/assessment, designing, construction supervision, operational advice in the fields of water resources
development, energy development, agricultural development, transportation, urban and regional development,social development, management of natural and social environment, etc.
“Power Engineering” engages in manufacturing and sale of control devices and systems for power generating andtransforming stations, water turbines, power generators, voltage converters, electric power related equipment suchas line taps for power transmission and distribution networks. It also engages in designing and implementation ofvarious construction works for electric power and general electric facilities, including construction for power
generation/transformation/transmission/distribution and civil engineering.
"Urban & Spatial Development engages in the structuring, planning, design, and operation of urban and spatial
development business.
“Energy Business” engages in research, development, design, construction, management, operation, support andsystem/technology development of power generation/energy management operations utilizing distributed energy
resources.
“Real Estate Leasing” engages in the leasing of real estate within Japan.
2. Calculation methods for revenue, income or loss, assets, and other items by reportable segment
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price, etc.

14

3. Revenue, income or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended June 30, 2020
(Millions of yen)
Reportable segments
Domestic
Consulting

International
Consulting

Power
Engineering

Urban & Spatial
Development

EnergyBusiness

Revenue
Revenue from external customers

49,95822,635

15,382

18,142

1,070

Intersegment revenue and transfers

531

60

463

103

-

Total

50,48922,696

15,845

18,246

1,070

Segment profit (loss)

4,944

513

995

1,759

(355)

(1,525)

(491)

(382)

(1,126)

(138)

-

-

-

-

-

-

0

43

-

109

28,32826,64012,172

28,079

9,683

2,055

560

842

481

1,187

-

12

241

-

1,753

Finance income
Finance costs
Profit (loss) before tax
Other items
Depreciation and amortization
Impairment losses
Share of profit (loss) of investments
accounted for using equity method
Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using
equity method

Reportable segments
Real Estate
Leasing

Others(Note 1)

Subtotal

Adjustments(Note 3)

Consolidated

108,441-

108,441

Total

Revenue
Revenue from external customers

451

Intersegment revenue and transfers

156

1,314

814

2,128

(2,128)

-

Total

607

108,955

1,614

110,569(2,128)108,441

Segment profit (loss)

356

8,214

(2,888)

5,325

(79)

5,245

107,640

800

Finance income

414

Finance costs(631)

Profit (loss) before tax

5,029

Other items
Depreciation and amortization(79)(3,744)(969)(4,713)13(4,700)

Impairment losses

-

-

-

-

-

-

Share of profit (loss) of investments
accounted for using equity method

-

153

-

153

(9)

144

6,542

111,447

66,884

178,331(30,923)

147,408

836

5,965

5,070

11,036(163)

10,872

-

2,007

-

2,007

(32)

1,974

Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using
equity method

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

15

For the fiscal year ended June 30, 2021
(Millions of yen)
Reportable segments
Domestic
Consulting

International
Consulting

Power
Engineering

Urban & Spatial

24,753

15,831

20,274Development

EnergyBusiness

Revenue
Revenue from external customers

55,345790

Intersegment revenue and transfers

879

306

341

1

-

Total

56,22425,06016,173

20,275790

Segment profit (loss)

6,128

1,853

858

2,266

(1,919)(1,549)

(349)

(394)

(1,190)(154)

Impairment losses

-

-

-

-

(1,739)

Share of profit (loss) of investments
accounted for using equity method

-

0

12

-

16

29,53827,902

13,97932,109

9,036

1,372

181

1,037

824

708

30

13

252

-

1,809

Finance income
Finance costs
Profit (loss) before tax
Other items
Depreciation and amortization

Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using
equity method

Reportable segments
Real Estate
Leasing

Others(Note 1)

Subtotal

Adjustments(Note 3)

Consolidated

117,859-

117,859

Total

Revenue
Revenue from external customers

778

Intersegment revenue and transfers
Total
Segment profit (loss)

117,773

86

158

1,687

666

2,353

(2,353)-

937

119,461752

120,213(2,353)

117,859

585

9,772

(2,639)

7,133

(4)

7,128

Finance income

519

Finance costs(471)

Profit (loss) before tax

7,176

Other items
Depreciation and amortization(91)(3,729)(853)(4,582)

16(4,566)

Impairment losses-(1,739)-(1,739)-(1,739)

Share of profit (loss) of investments
accounted for using equity method

-

29

-

29

5

35

6,518

119,085

64,594

183,680(27,542)

156,137

0

4,123

1,323

5,446

(44)

5,401

-

2,104

-

2,104

(27)

2,077

Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using
equity method

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

16

4. Information by product and service
Statement is omitted, as similar information is disclosed in “3. Revenue, income or loss, assets, liabilities, andother items by reportable segment”(Per Share Information)
For the fiscal year ended
June 30, 2020

For the fiscal year ended
June 30, 2021

Profit attributable to owners of parent (Millions of yen)

3,099

4,531

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

15,124,770

15,106,105

204.94300.00

Basic earnings per share (Yen)

Diluted earnings per share are not included because there are no potential shares.
(Significant Subsequent Events)
There is no relevant information.

17

(First-time Adoption)
The Group has disclosed consolidated financial statements in accordance with IFRS since the consolidated fiscal
year under review. The most recent consolidated financial statements created in accordance with Japanese GAAP
are for the consolidated fiscal year ended June 30, 2020. The transition date to IFRS is July 1, 2019.
(1) Exemption clause in IFRS 1IFRS requires a company that applies IFRS for the first time (herein after referred to“First-time Adopter”toretroactively apply the standards required in IFRS in principle. However, IFRS 1 “ First-time Adoption ofInternational Financial Reporting Standards” (hereinafter referred to as “IFRS 1” stipulates those to which the
exemption clause must be compulsorily applied and those to which the exemption clause is voluntarily applied forsome standards required by IFRS. The impact of the adoption of these clauses was adjusted in retained earnings orother capital components on the IFRS transition date. When the Group transitioned from Japanese GAAP to IFRS,
the following exemption clauses were adopted:
・Business combinations
A First-time Adopter is permitted to elect not to retroactively apply IFRS 3 “ Business combinations ”(hereinafter referred to as“IFRS 3”to any business combinations made before the IFRS transition date. The Group
has applied the relevant exemption clause and has elected not to retroactively apply IFRS 3 to business combinations
made prior to the transition date. As a result, the amount of goodwill incurred from the business combination before
the transition date is based on the book value as of the transition date according to Japanese GAAP.
An impairment test was conducted for goodwill as of the transition date regardless of whether or not there were
any signs of impairment.
・Exchange differences on translation of foreign operations
IFRS 1 permits an entity to elect to the cumulative translation differences for foreign operations as of the IFRStransition date as zero. The Group has applied the relevant exemption clause and elected to regard cumulativetranslation differences of foreign operations as zero as of the transition date.
・Stock-based award
It is encouraged by IFRS 1 to apply IFRS 2 “Share-based payment” (hereinafter referred to as “IFRS 2” )to stock compensation that were granted after November 7, 2002 and whose rights were finalized before the IFRStransition date, but it is not required to do so. The Group has applied the relevant exemption clause and has elected
not to apply IFRS 2 to stock compensation whose rights were finalized prior to the transition date.
・LeaseIFRS 1 permits a First-time Adopter to assess whether or not the contract includes leases as of the IFRS transition
date. The Group has applied the relevant exemption clause and determined whether the contract includes leases
based on the facts and circumstances that existed as of the transition date.
・Borrowing cost
IFRS 1 permits an entity to set the start date of capitalization of borrowing costs pertaining to qualifying assets to
the IFRS transition date. The Group has applied the relevant exemption clause and capitalized the borrowing costs
pertaining to qualifying assets after the transition date in accordance with IAS 23 “Borrowing costs.”
・Designation of financial products previously recognized
IFRS 1 permits an entity to determine classification in IFRS 9 “Financial instruments” (hereinafter referred toas “IFRS 9” based on the facts and circumstances as of the transition date instead of the facts and circumstancesthat existed as of the time of the initial recognition. It is also permitted to designate fluctuation of the fair value of18

capital financial assets as financial assets to be measured through other comprehensive income based on the facts
and circumstances that exist as of the transition date.
The Group has applied the relevant exemption clause and has determined the classification in IFRS 9 based on thefacts and circumstances that existed as of the transition date and has designated some equity instruments as financial
assets to be measured through other comprehensive income.
(2) Reconciliation
The reconciliation required to be disclosed for the first-time adoption of IFRS are show below.
In the reconciliation table, “Reclassification of presentation” includes items that do not affect retained earnings
and comprehensive income and“Difference in recognition and measurement”includes items that affect retained
earnings and comprehensive income.
Reconciliations of equity as of July 1, 2019 (The date of transition to IFRS)(Millions of yen)Line items presented
under Japanese GAAP
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
Intangible assets

Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other
Allowance for doubtful accounts
Total non-current assets
Total assets

Japanese GAAP

Reclassificationofpresentation

Difference inrecognition andmeasurement

IFRS

Notes

Line items presented under IFRS

13,147(484)

579

13,242

1,19

AssetsCurrent assets
Cash and cash equivalents

29,938(13,561)(5)

16,3712,3

Trade and other receivables

5,709
3,855
(203)
52,446

14,400
394
(514)
(512)
181
(94)

4,724
12
(5,194)55
21
192

19,125407
3,399
52,5443
6
3

Contract assets
Other financial assets

29,882
13,501-(1,938)114(5,307)
4,866
2,265

10,908
10,2961,005(319)

38,852
10,410
8,193
5,871
1,945

9
10
11
12
8

7,228

(7,228)

2,440

2,440

13,19

2,276
1,502
3,943
2,564
(169)
60,728113,175

8,487(1,333)169
94-(4,315)
533
(663)
(11)
19,87320,066

6,448
2,035
3,279
1,219
80,696133,241

4,6,197

19

Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using
equity method
Other financial assets
Deferred tax assets
Retirement benefit asset
Othe non-current assets
Total non-current assets
Total assets

(Millions of yen)Line items presented
under Japanese GAAP
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans
payableNotes and accounts payable - trade

Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on construction
contracts
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable

Liability for retirement benefits
Provision for directors' retirement
benefits
Provision for environmental
measuresDeferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Capital stock
Capital surplus
Treasury shares
Accumulated other comprehensive
incomeRetained earnings

Non-controlling interests
Total net assets
Total liabilities and net assets

Reclassificationofpresentation

Japanese GAAP

Difference inrecognition andmeasurement

IFRS

Notes

14

Line items presented under IFRS
Liabilities and equity
Liabilities
Current liabilities
Borrowings

-

2,082

499

2,581

2,082

(2,082)

-

-

5,037
1,137
1,972
91

37
2,319
9,580
2,681
(105)
(1,972)
(91)

2,820
9
(1,151)
194
4
-

2,858
7,365
8,428
2,876
1,036
-

6,10
2
15
5

Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable

119

3

-

123

16

Provisions

6,687
10,95328,082(6,687)(5,764)
-

3,213
5,590

8,402
33,67315
15,16

17,639
3,817

74
223
-

(44)
7,476
149

17,594
7,551
223
3,967

30

(30)

-

-

34

18

-

52

2,819
545
24,88652,969

(286)
-

1,977
(109)
9,449
15,0394,796
149
34,33568,009

7,437
6,488
(787)

-

(22)
-

7,437
6,465
(787)

6,10
6
17

Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares(1,913)

-

2,412

499

18

47,864-2,428

50,292

18

59,090-4,817

63,907

1,115
60,205
113,175

-

209
5,026
20,066

1,324
65,232
133,241

20

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability

Other components of equity
Retained earnings
Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity

Reconciliations of equity as of June 30, 2020 (The end of the latest period presented in the most recent consolidated
financial statements under Japanese GAAP)(Millions of yen)Line items presented
under Japanese GAAP
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable trade

Japanese GAAP

Reclassificationofpresentation

Difference inrecognition andmeasurement

IFRS

Notes

Line items presented under IFRS

701

15,472

1,19

AssetsCurrent assets
Cash and cash equivalents(19,767)

109

19,3892,3Trade and other receivables

20,355
1,250
(488)
(450)
333
-

1,069
33
(1,236)
(40)
(25)
611

21,425
1,283
4,456
62,0273
6
3

Contract assets
Other financial assets

Intangible assets

40,756
12,132-(7,809)3,724(5,176)
4,734
4,526

9,092
5,879
1,008
745
(316)

42,039
9,603
7,964
5,480
4,210

9
10
11
12
8

Investment securities

6,500(5,028)

502

1,974

13,19

980
1,541
4,080
2,964
(157)
68,800130,215

6,400(1,529)
157
-

(659)
598
(262)
(7)
16,58017,192

6,721
2,140
3,817
1,427
85,380147,408

4,6,197Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Long-term loans receivable
Deferred tax assets
Net defined benefit assets
Other
Allowance for doubtful accounts
Total non-current assets
Total assets

16,003(1,232)

39,047
1,725
4,947
(308)
61,415

21

Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using
equity method
Other financial assets
Deferred tax assets
Retirement benefit asset
Othe non-current assets
Total non-current assets
Total assets

(Millions of yen)Line items presented
under Japanese GAAP
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans
payableNotes and accounts payable - trade

Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for loss on construction
contracts
Provision for business restructuring
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Liability for retirement benefits
Provision for directors' retirement
benefits
Provision for environmental
measuresDeferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Capital stock
Capital surplus
Treasury shares
Accumulated other comprehensive
incomeRetained earnings

Non-controlling interests
Total net assets
Total liabilities and net assets

Japanese GAAP

Reclassificationofpresentation

Difference inrecognition andmeasurement

(2)

IFRS

Notes

15,77814

Line items presented under IFRS
Liabilities and equity
Liabilities
Current liabilities
Borrowings

13,000

2,780

2,780

(2,780)

-

-

5,724
1,266
2,201
52

704
2,289
11,0552,539(107)(2,201)
(52)

1,740
18
(159)
46
1
-

2,445
8,033
10,895
2,586
1,159
-

6,10
2
15
5

Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable

496

93

-

589

16

Provisions

93
8,009
11,87645,500(93)(8,009)(6,219)
-

2,818
4,463

8,475
49,963

16
15
15,16

14,922
3,078
3,814

639
-

1
4,161
151

14,923
7,240
639
3,965

17

(17)

-

-

34

49

-

83

2,585
791
25,24570,745

(670)
-

2,123
40
6,478
10,942

4,709
161
31,723
81,687

7,458
6,509(2,415)

-

(11)
-

7,458
6,498
(2,415)6,10
6
17

Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares(2,515)

-

2,517

1

18

49,207-

3,467

52,67518

58,245-

5,973

64,2191,225
59,470130,215

-

276
6,250
17,192

1,502
65,721
147,408

22

Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability

Other components of equity
Retained earnings
Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity

Notes on reconciliation of equity
1 Reclassification of cash and deposits
Time deposits with a deposit period of more than 3 months, which were included in "Cash and deposits" underJapanese GAAP have been reclassified to “Other financial assets (current)” under IFRS.
2 Reclassification of accounts receivable and accounts payable
Accounts receivable included in “Other” of current assets under Japanese GAAP have been transferred to “Tradeand other receivables” under IFRS. Also, accounts payable included in “Other” of current liabilities under Japanese
GAAP have been reclassified to “Trade and other payables” under IFRS.
3 Contract assets
Of the rights to the consideration received in exchange for goods or services transferred to customers, which were
included in “Notes and accounts receivable - trade” under Japanese GAAP, the conditional rights other than thepassage of time have been reclassified from “Trade and other receivables” to “Contract assets” under IFRS.
As for consulting contracts with the construction completion method adopted under Japanese GAAP, revenues arerecognized for a certain period of time and contract assets of the same amount are also recognized under IFRS.
Work in process, which was recorded under Japanese GAAP, has been reclassified to costs of sales.
4 Securities
Under Japanese GAAP, marketable securities are measured according to the fair value and non-marketablesecurities are measured by the acquisition cost in principle. Also, gain or loss from sales of securities is net profit orloss regardless of whether or not they are marketable. On the other hand, under IFRS, all the equity instruments aremeasured by fair value.
Under IFRS, it is permitted to recognize fluctuations in fair value of equity instruments in other comprehensive
income, and when recognizing fluctuations in fair value in other comprehensive income, gain or loss from sales orvaluation gain or loss of the relevant equity instruments is not transferred to net profit or loss.
5 Other financial assets and other financial liabilities
Under Japanese GAAP, integrated treatment was applied to the interest rate and currency swaps eligible for
integrated treatment (special treatment / allocation treatment). However, under IFRS, as integrated treatment is notallowed, hedging instruments were recognized at fair value on the transfer date and the cash flow hedges wererecorded as other components of equity at the same time. And, as we have decided not to apply hedge accounting
on and after the transfer date, it is treated in accordance with the regulations for termination of hedge accounting
for the future.
6 Reclassification of other financial assets and other financial liabilities
Short-term loans receivable included in “Other” of current assets under Japanese GAAP have been reclassified to“Other financial assets (current)” under IFRS. Also, “Investment securities” and “Long-term loans receivable”
presented separately under Japanese GAAP have been reclassified to “Other financial assets (non-current)” under
IFRS. Also, lease obligations included in “Other” of current liabilities and “Other” of non-current liabilities underJapanese GAAP have been reclassified into “lease liabilities (current)” and “lease liabilities (non-current) under
IFRS, respectively.
7 Review of recoverability of deferred tax assets
In association with adoption of IFRS, we review recoverability of all deferred tax assets.

23

8 Reclassification of investment real estate
Investment real estate included in “Property, plant and equipment” under Japanese GAAP has been reclassified to“investment real estate” under IFRS.
9 Adjustments to the recorded amount of property, plant and equipment
Non-current asset acquisition taxes and borrowing costs directly attributable to acquisition of qualifying assets,
which were expensed under Japanese GAAP, are capitalized under IFRS.
10 Lease transactions
Operating lease transactions were not capitalized under Japanese GAAP. However, right-of-use assets and leaseliabilities are recorded under IFRS. Also, we adopted a method of not deducting a reasonable estimated amountequivalent to interest from the total amount of lease fees for non-ownership-transfer finance lease transactions,whose total amount of lease assets is recognized as insignificant, under Japanese GAAP. However, we adopt thebasic method under IFRS.
11 Adjustments to the recorded amount of goodwill
Goodwill is amortized under Japanese GAAP, but not amortized under IFRS.
12 Other intangible assets
Trademark rights are amortized under Japanese GAAP, but not amortized under IFRS as intangible assets whose
useful life cannot be finalized.
13 Adjustments of the recorded amount of investments accounted for using equity method“Investments accounted for using equity method” were included in “Investment securities” under Japanese GAAP,
but are separately presented under IFRS. Also, goodwill on affiliated companies accounted for using equity-method
is amortized under Japanese GAAP, but not amortized under IFRS.
14 Reclassification of borrowings“Current portion of long-term loans payable” separately presented as current liabilities under Japanese GAAP
have been reclassified into “Borrowings (current)” under IFRS.
15 Contract liabilities“Advances received” separately presented as current liabilities and deferred income included in “Other” underJapanese GAAP has been reclassified into “Contract liabilities” under IFRS.
16 Reclassification of other current liabilities“Provision for bonuses” and “Provision for directors’ bonuses” presented separately as current assets underJapanese GAAP have been reclassified into “Other current liabilities” under IFRS. “Provision for loss on
construction contracts” and “Provision for business restructuring” presented separately as current assets and asset
retirement obligations included in “Other” of non-current liabilities under Japanese GAAP have been reclassified
into “Provisions” under IFRS. Also, outstanding paid leave, that was not accounted for under Japanese GAAP, isrecorded as “Other current liabilities” under IFRS.
17 Adjustments of retirement benefit liability
The Group recognized actuarial gain or loss as other comprehensive income when it occurred and the amount
distributed according to a certain number of years within the average remaining working period of the employee
was expensed from the fiscal year after the fiscal year in which it occurred. However, actuarial gain or loss isrecognized when it occurs as other comprehensive income and immediately transferred to retained earnings under
IFRS.
24

18 Reclassification of cumulative exchange differences on translation of foreign subsidiaries
For the first-time adoption, we elected the exemption clause prescribed in IFRS 1 and reclassified all the cumulativetranslation differences as of the transition date to retained earnings.
19 Scope of consolidation and the equity method
The subsidiaries that were not consolidated based on monetary importance, etc., and affiliates that were out of thescope of the equity method under Japanese GAAP, are classified as consolidated subsidiaries and affiliates accounted
for using the equity method under IFRS. The impact of fluctuations in the scope of consolidation and the equity
method is included in “Differences in recognition and measurement.” Main fluctuations include increase in cash
and cash equivalents and decrease in loans receivable due to the elimination of internal transactions.
The Company implements the Employee Stock Ownership Plan Trust Program (hereinafter referred to as “ESOP
trust” ). Under Japanese GAAP, the total amount method is applied, and profit and loss related to ESOP trusts are
not added to the profit and loss of the Group, and if the net amount of profit and loss is positive, it is recorded as aliability, and if the value is negative, it is recorded as an asset. Under IFRS, the Group consolidates the relevant
trusts. Specifically, the Company's shares owned by the trust account are deducted from the capital until they aresold to the stockholding association. The assets and liabilities of the relevant trust account are recognized as theassets and liabilities of the Group. Distributions of trust income from the trust account to the beneficiaries at the endof the trust period are treated as cash settlement transactions. The liabilities resulting from cash settlement-type
stock compensation have no monetary significance.
20 Adjustments to retained earnings(Millions of yen)Transition date(July 1, 2019)
Adjustments to the recorded amount of property, plant andequipment

As of June 30. 2020
8,825

8,793

589

1,321

Adjustments to outstanding paid leave(3,109)(2,709)Reclassification of cumulative exchange difference on translationof foreign subsidiaries(3,063)(3,063)

843

700

4,086

5,042

(1,448)(1,318)

(209)

(256)

2,428

3,467

Adjustments to the recorded amount of intangible assets

Other
Sub-total
Adjustments by tax effect
Adjustment for non-controlling interests
Total

25

Reconciliations of profit or loss and comprehensive income for the fiscal year ended June 30, 2020(The latest period
presented in the most recent consolidated financial statements under Japanese GAAP)(Millions of yen)Japanese GAAP

Reclassificationofpresentation

Net sales
Cost of sales
Gross profit

112,21478,76233,452

118(118)

Difference inrecognition andmeasurement(3,773)(3,677)(95)

Selling, general and administrative expenses

28,861

(72)

(352)

28,436

2,3,4,6,
7,10

-

62

81

144

5,9

4,590
950
938
4,603
1,940
(163)
2,826

480
268
230
(950)
(938)
587
670
134
(28)
163
-

91
3
425
(172)
(38)
291
(128)
419

571
271
5,245
414
631
5,029
1,782
3,246

9
9

Line items presented
under Japanese GAAP

Operating income (loss)
Non-operating income
Non-operating expenses

Income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Net income (loss)
Other comprehensive income (loss)
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans

IFRS

Notes

108,441
75,202
33,2381
1,2,6,10

5,9
9
9
2,8,9
11

(158)

-

206

47

(21)

-

342

321

6
8

-

-

6

6

Foreign currency translation adjustments

(439)

-

(2)

(441)

Share of other comprehensive income ofentities accountedfor using equity method
Total other comprehensive income (loss)
Comprehensive income (loss)

58

-

(44)

14

(559)
2,266

-

508
927

(51)
3,194

26

Line items presented under IFRSRevenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted
for using equity method
Other income
Other expenses
Operating profit (loss)

Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)
Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income
Remeasurements of defined benefit plans
Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity method
Other comprehensive income (loss)
Comprehensive income

Notes on reconciliations of profit or loss and comprehensive income
1 Adjustments to revenue and cost of sales
As for consulting contracts with the construction completion method adopted under Japanese GAAP, revenues arerecognized for a certain period of time and contract assets of the same amount are also recognized under IFRS.
Work in process, which was recorded under Japanese GAAP, has been transferred to costs of sales.
2 Lease transaction
The Group accounted for operating lease transactions in accordance with the method pertaining to normal leasetransactions under Japanese GAAP, but records right-of-use assets and lease liabilities and also records depreciationand interest expenses under IFRS. Also, we adopted a method of not deducting a reasonable estimated amountequivalent to interest from the total amount of lease fees for non-ownership-transfer finance lease transactions,whose total amount of lease assets is recognized as insignificant, and recorded only depreciation under Japanese
GAAP. However, we record depreciation and interest expenses under IFRS.
3 Adjustments to the recorded amount of goodwill
Goodwill is amortized under Japanese GAAP, but not amortized under IFRS.
4 Other intangible assets
Trademark rights are amortized under Japanese GAAP, but not amortized under IFRS as intangible assets withindefinite useful lives.
5 Adjustments of the recorded amount of investments accounted for using equity method“Share of income of entities accounted for using equity method” were included in “Non-operating income” underJapanese GAAP, but are separately presented under IFRS.
6 Adjustments of retirement benefit liability
The Group recognized actuarial gain or loss as other comprehensive income when it occurred and the amount
distributed according to a certain number of years within the average remaining working period of the employee
was expensed from the fiscal year after the fiscal year in which it occurred. However, actuarial gain or loss isrecognized when it occurs as other comprehensive income and immediately transferred to retained earnings under
IFRS.
7 Levies
The items that fall under levies such as property taxes were evenly expensed for one year from the payment dateunder Japanese GAAP, but expenses are recognized when a obligating event occurs under IFRS.
8 Adjustment to financial income and financial cost
Under Japanese GAAP, integrated treatment was applied to the interest rate and currency swaps eligible for
integrated treatment (special treatment / allocation treatment). However under IFRS, as integrated treatment is notallowed, hedging instruments were recognized at fair value on the transfer date and the cash flow hedges wererecorded as other components of equity at the same time. And, as we have decided not to apply hedge accounting
on and after the transfer date, it is treated in accordance with the regulations for suspension of hedge accounting forthe future.
9 Adjustments to line items
For the items presented as “Non-operating income,” “Non-operating expenses,” “Extraordinary income” and“Extraordinary losses” under Japanese GAAP, financial profit and losses are recorded as “Financial income” and“Financial costs” and other items are presented in “Other income,” “Other expenses” and “Share of profit (loss) ofinvestments accounted for using equity method,” etc. under IFRS.
27

10 Outstanding paid leave
Outstanding paid leave, which was not accounted for under Japanese GAAP, is recognized as personnel expenses
under IFRS.
11 Income tax expenses“Income taxes - current” and “Income taxes - deferred” were presented separately under Japanese GAAP, butthey are collectively presented as “Income tax expense” under IFRS. Also, in adoption with application of IFRS,
we review the recoverability of all deferred tax assets.
Reconciliations of cash flows for the fiscal year ended June 30, 2020(The latest period presented in the most recent
consolidated financial statements under Japanese GAAP)
Payment of lease fees by operating lease were classified as cash flows from operating activities under Japanese GAAP.
However, IFRS requires all leases to be recognized as lease liabilities in principle, and thus expenditures fromrepayment of lease liabilities are classified as cash flows from financing activities.

28

4.

Other

(1) Status of Orders and Sales
By Fiscal Year
Category / Segment

Revenue 2

Revenue 1

Orders received

Domestic Consulting

47,61732.9

35,721

26.8

Power Engineering

19,82913.7

13,88010.4

Urban & Spatial Development

17,87412.3

21,457

16.1

156

0.1

111

0.1

Energy Business
Real Estate Leasing-

Others

79

0.1

86

0.1

Total

144,871

100.0

133,304

100.0

Domestic Consulting

52,412

48.3

59,855

50.7

International Consulting

24,01122.1

25,381

21.5

Power Engineering

12,528

11.6

12,991

11.0

Urban & Spatial Development-

17,991

16.6

18,20915.5

Energy Business

963

0.9

557

0.5

Real Estate Leasing

451

0.4

778

0.7

Others

82

0.1

86

0.1

Total

108,441100.0

117,859

100.0

Domestic Consulting

49,95846.1

55,345

46.9

International Consulting

22,63520.9

24,75321.0

Power Engineering

15,382

14.2

15,831

13.4

Urban & Spatial Development

18,142

16.7

20,274

17.2

Energy Business

1,070

1.0

790

0.7

Real Estate Leasing

451

0.4

778

0.7

Others

800

0.7

86

0.1

Total

108,441100.0

117,859

100.0

Category / Segment
Foreign exchange and otheradjustments

For the fiscal year ended
June 30, 2021
AmountComposition(Millions of yen)(%)
62,047
46.5

International Consulting

By period

Outstanding Orders

For the fiscal year ended
June 30, 2020
AmountComposition(Millions of yen)(%)
59,31440.9

Domestic Consulting
International Consulting
Power Engineering

For the fiscal year ended
June 30, 2020
AmountComposition(Millions of yen)(%)
11

For the fiscal year ended
June 30, 2021
AmountComposition(Millions of yen)
(%)
189

102

741

-

-

Urban & Spatial Development

(542)

2,800

Energy Business

(12)

(0)

Real Estate Leasing--

Others

-

-

Total

(442)

3,731

Domestic Consulting

36,17922.1

38,561

20.9

International Consulting

88,54354.0

99,625

54.1

Power Engineering

22,05813.5

22,947

12.5

Urban & Spatial Development

17,01910.4

23,068

12.5

Energy Business

33

0.0

47

0.0

Real Estate Leasing-

Others-Total

163,834

100.0

0

0.0

184,250

100.0

Notes: 1. The above amounts are exclusive of consumption tax and other taxes.
2. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
3. Revenue 1 is by segment which received orders. Revenue 2 is by segment which provided services.

29

(2) Changes in Directors
1. Change of Representative Director
Please refer to “Notice Concerning Change of Representative Director (Change of President)” announced on April
12, 2021 and “Notice of Change of Representative Director and New Board Structure” announced on June 10, 2021.
2. Change of Other Directors
Please refer to “Notice of Change of Representative Director and New Board Structure” announced on June 10, 2021.

30