Consolidated Financial Results
for the Six Months Ended December 31, 2019
[Japanese GAAP]
February 13, 2020
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: February 13, 2020
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes (for investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended December 31, 2019 (July 1, 2019 to December 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
Six months ended
Million yen%
Million yen% Million yen% Million yen%
December 31, 201949,14825.6(1,427)(1,185)(910)
December 31, 2018
39,14625.3(2,817)(2,901)(2,331)(Note) Comprehensive income: Six months ended December 31, 2019: ¥(160) million [ - %]Six months ended December 31, 2018: ¥(3,472) million [ - %]Net income per share
Six months ended
December 31, 2019
December 31, 2018

Yen
(59.89)(149.66)

Diluted net income
per shareYen-(2) Consolidated Financial Position
Total assets
Net assets
As ofMillion yen
Million yen
December 31, 2019
129,372
57,031
June 30, 2019
113,175
60,205(Reference) Equity: As of December 31, 2019 : ¥55,880 million
As of June 30, 2019: ¥59,090 million

Equity ratio
%
43.2
52.2

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end
quarter-end
quarter-end
Yen
Yen
Yen
Yen
Fiscal year ended June 30, 2019
75.00
Fiscal year ending June 30, 2020
Fiscal year ending June 30, 2020 (Forecast)
100.00(Note) Revision to the forecast for dividends announced most recently: None

1

Total
Yen
75.00
100.003. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2020 (July 1, 2019 to June 30, 2020)(% indicates changes from the previous corresponding period.)
Net income attributable
Net income
Net sales
Operating income
Ordinary income
to owners of parent
per share[Japanese
Million yen% Million yen% Million yen%
Million yen
%
Yen
GAAP]
Full year
127,700 17.6
5,800 13.5
6,200 11.0
3,600
8.5
236.72
Revenue

Operating income

Income before Tax

Income attributable toowners of parent

Basic earnings
per shareYen
295.91[IFRS]
Million yen% Million yen% Million yen%
Million yen%
Full year
127,700
6,700
7,000
4,500
(Note) 1. Revision to the financial results forecast announced most recently: None
2. The Company has decided to voluntarily apply International Financial Reporting Standards (IFRS) from theyear-end of fiscal year ending June 30, 2020. Accordingly, in addition to the consolidated financial results
forecast based on Japanese GAAP, the Company discloses financial estimates based on IFRS. The
percentage change from the fiscal year ended June 30, 2019, for which the Japanese GAAP was applied,
is not shown in the above table.
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope 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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
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 December 31, 2019
: 15,933,058 shares
As of June 30, 2019
: 15,919,544 shares2) Total number of treasury stock at the end of the period
As of December 31, 2019:917,698 shares
As of June 30, 2019:
235,268 shares
3) Average number of shares during the period
Six months ended December 31, 2019
: 15,207,546 shares
Six months ended December 31, 2018
: 15,581,280 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
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.
The Company is scheduled to hold a financial results briefing session for investors and analysts on March 2, 2020.
The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s
website.

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 Sheet .................................................................................................................. 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) ......................................................................................................................... 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 six months ended December 31, 2019 (from July 1, 2019 to December 31, 2019), Japan's economy
continued on a moderate recovery path with corporate earnings at high levels, signs of private consumption picking
up and improved employment conditions, despite continued weakness mainly in exports. In contrast, as for overseas
economies, while showing a moderate recovery trend, they continue to require careful attention as to thedevelopments in connection with the U.S.-China trade dispute, uncertain Middle East situations, Brexit of the UK,
one of the main bases of our business, and the movements in financial and capital markets, among others.
With regard to the business environment surrounding Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), in the Domestic Consulting Business, initiatives for building national resilience against
disasters and measures against aging infrastructure in public works projects and, in the International Consulting
Business, the Japanese government's strategy for the export of high-quality infrastructure systems are being bothpromoted. In the Power Engineering Business, demand for the renewal of power distribution facilities, in the Urban& Spatial Development Business, demand for construction due to the progress of urbanization in Asian countries
and, in the Energy Business, demand for renewable energy due to the shift to low-carbon and distributed powersources remained steady, respectively.
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.”
As a result, the Group ended the six months of the current fiscal year with orders received having increased 22.4%
year on year to ¥58,395 million. Amid favorable business conditions and the widened application of the percentageof-completion basis for our sales recognition, net sales increased 25.6% year on year to ¥49,148 million, operating
loss decreased 49.3% year on year to ¥1,427 million, ordinary loss decreased 59.1% year on year to ¥1,185 million,
and loss attributable to owners of parent decreased 60.9% year on year to ¥910 million.
Net sales for the six months ended December 31, 2019 were ¥49,148 million, an achievement rate of 38.5% against
the net sales forecast of ¥127,700 million for the fiscal year ending June 30, 2020 (six months ended December 31,
2018: 34.0%). This is due to the fact that, as the Group's business structure, a large proportion of operations is
progressing in the second half of the fiscal year and there are seasonal fluctuations in the recording of net sales. On
the other hand, because expenses such as selling, general and administrative expenses were generated fairly evenly
throughout the year, the Group recorded an operating loss, an ordinary loss and loss attributable to owners of parent
for the six months ended December 31, 2019.
Business results for each segment are as follows:[Domestic Consulting]In the Domestic Consulting Business, we further strengthened our management base and promoted efficientbusiness management by expanding orders received in Western Japan through the restructuring of order andoperating systems, securing and improving quality, reforming working styles, and other measures. In addition, we
worked to support the actions under the global strategy cooperating with the International Consulting Business andthe R&D Center, as well as to develop new businesses by utilizing the management know-hows, as its core, toimprove the value of infrastructure.

2

As a result, orders received increased 4.4% year on year to ¥24,495 million, net sales increased 36.9% year on
year to ¥19,267 million, operating loss decreased 32.7% year on year to ¥1,338 million and ordinary loss decreased
31.9% year on year to ¥1,354 million.
[International Consulting]In the International Consulting Business, we worked to acquire and develop human resources, mainly in therailways business, as well as strengthening the operating system by enhancing project management capabilities,
and practicing strict management of profit, risks and safety. In addition, we were actively involved in the Public
Private Partnership (PPP) and the private sector business.
As a result, orders received increased 52.4% year on year to ¥17,627 million, net sales increased 12.5% year on
year to ¥12,025 million, operating income was ¥173 million (operating loss of ¥ 72 million for the six months ended
December 31, 2018) and ordinary income was ¥192 million (ordinary loss of ¥ 87 million for the six months ended
December 31, 2018).
[Power Engineering]
In the Power Engineering Business, we aggressively expanded the mechanical and electrical consulting businessby entering into new areas including traffic and transportation, as well as maintenance and management in view ofglobal development, strengthened group-wide cooperation in the energy-related business and maintenance andmanagement business, and strove to develop products and technologies of a global standard specification. We also
continued to improve price competitiveness and enhance sales force with rigorous cost reductions.
As a result, orders received increased 57.2% year on year to ¥7,182 million, and net sales increased 12.9% year
on year to ¥7,583 million, operating income increased 19.4% year on year to ¥620 million, and ordinary income
increased 19.0% year on year to ¥580 million.
[Urban & Spatial Development]
In the Urban & Spatial Development Business, we responded to changes in the U.K. market and expanded ourbusiness in Asia by promoting Group-wide collaboration in Singapore while taking steps to enter the British
Commonwealth of Nations markets.
In addition to the above results, due in part to the contribution from Quadrangle Architects Limited, which joined
the Group in the previous fiscal year, orders received increased 14.8% year on year to ¥8,984 million, and net sales
increased 32.6% year on year to ¥8,963 million. Operating income was ¥504 million (operating loss of ¥21 million
for the six months ended December 31, 2018), and ordinary income was ¥343 million (ordinary loss of ¥21 million
for the six months ended December 31, 2018).
[Energy Business]
The Energy Business improved its profitability in the power generation business such as through renewable energy
and worked to develop new projects including PFI (Private Finance Initiatives) business. In addition, we
accumulated a track record in the renewable energy mainly in Europe and storage battery EPC (Engineering,
Procurement & Construction) business in the energy management business, further sought to promote the resource
aggregator (an operator that plays a central role in control and management in relation to both energy operators andsources of demand) and VPP (Virtual Power Plant) business.
As a result, orders received decreased 75.1% year on year to ¥56 million. Net sales increased 94.7% year on yearto ¥710 million, while operating loss increased 54.9% year on year to ¥175 million due to prior development
investment in the overseas energy management business. Ordinary loss decreased 7.9% year on year to ¥113 million
due mainly to the decreased loss of entities accounted for using equity method.
[Real Estate Leasing]In the Real Estate Leasing Business, net sales decreased 0.3% year on year to ¥216 million. Operating income
decreased 0.4% year on year to ¥203 million while ordinary income decreased 0.2% year on year to ¥203 million.
3(2) Explanation of Financial Position
Total assets as of the end of the second quarter of the fiscal year ending June 30, 2020, amounted to ¥129,372
million, an increase of ¥16,197 million from the end of the previous fiscal year.
In the Assets section, current assets were ¥63,487 million, an increase of ¥11,040 million from the end of theprevious fiscal year. This was mainly due to a ¥11,828 million increase in notes and accounts receivable-trade,while a ¥1,189 million decrease in work in process.
Non-current assets were ¥65,885 million, an increase of ¥5,156 million from the end of the previous fiscal year.
This was mainly due to a ¥3,915 million increase in leased assets included in other items of property, plant andequipment at overseas subsidiaries that applied IFRS 16.
In the Liabilities section, current liabilities were ¥46,076 million, an increase of ¥17,993 million from the end of
the previous fiscal year. This was mainly due to a ¥21,000 million increase in short-term loans payable, while a¥850 million decrease in notes and accounts payable-trade and a ¥788 million decrease in income taxes payable.
Non-current liabilities were ¥26,265 million, an increase of ¥1378 million from the end of the previous fiscal year.
This was mainly due to a ¥3,291 million increase in long-term lease obligations included in other items of noncurrent liabilities at overseas subsidiaries that applied IFRS 16, while a ¥1,290 million decrease in long-term loans
payable.
Net assets were ¥57,031 million, a decrease of ¥3,174 million from the end of the previous fiscal year. The primaryfactors behind this were ¥910 million in net loss attributable to owners of parent, ¥1,193 million in cash dividends
paid and a ¥1,800 million increase in treasury shares.
As a result, the shareholders’ equity ratio decreased 9.0 percentage points from the end of the previous fiscal year
to 43.2%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The consolidated financial results forecast for the fiscal year ending June 30, 2020 have not changed from theforecast announced in the Consolidated Financial Results for the Fiscal Year Ended June 30, 2019 dated August
13, 2019.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets

As of June 30, 2019

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

As of December 31, 201913,14729,938
5,709
3,855
(203)
52,446

13,107
41,767
4,520
4,379
(286)
63,487

5,421
16,0358,425
29,882

5,258
16,035
12,86634,1598,193
5,307
13,501

17,514(169)
17,34560,728113,175

5(Millions of yen)

8,230
5,198
13,42918,453(156)
18,29665,885
129,372

As of June 30, 2019

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

As of December 31, 2019

5,037
2,082
1,137
6,687
1,972
91
119
10,95328,082

4,186
21,000
2,296
349
6,493
1,660
118
9,971
46,0767,437
6,488
47,864(787)
61,003

7,458
6,509
45,699(2,587)57,08017,639
30
34
3,817
3,364
24,88652,969456(3,063)693(1,913)
1,115
60,205
113,175

6(Millions of yen)

16,349
17
34
3,850
6,013
26,26572,341540(2,450)709(1,200)1,151
57,031
129,372

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
For the Six months ended December 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
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
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-controllinginterests

7

For the six months
For the six months
ended December 31, 2018 ended December 31, 2019
(From July 1, 2018
(From July 1, 2019
to December 31, 2018)
to December 31, 2019)39,14649,14828,93036,447
10,215
12,70013,033
14,127(2,817)(1,427)
129
87
75
143
435

111
62
186
148
135
645

124
106
5
283
519
(2,901)(2,901)491(1,052)(560)(2,340)

217
18
124
43
403
(1,185)(1,185)
521
(811)
(290)
(895)

(625)
(474)
(36)

84
602
15

(2,331)
(8)

4

(910)
15

31

(1,131)(3,472)

734
(160)

(8)

37

(3,463)(197)

(3) Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales of investment securities
Share of loss (gain) of entities accounted for using equity method
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
Purchase of investment securities
Purchase of shares of subsidiaries and associates
Payments of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
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(Millions of yen)
For the six months
For the six months
ended December 31, 2018 ended December 31, 2019
(From July 1, 2018
(From July 1, 2019
to December 31, 2018)
to December 31, 2019)(2,901)
779
230
16
106
(18)
(431)
17
(216)
(75)
(5,140)(4,261)
(426)
(477)
1,529
(912)
(572)
(12,755)130(120)(1,070)(13,816)(1,185)
1,135
278
(186)
18
69
(307)
(0)
(173)
(148)
(11,635)
1,191
(867)
(330)
(202)
(1,841)
72(14,114)164(223)(1,282)(15,457)

17,000(1,367)
(13)
213
(5)
(1,186)(3)
14,636(173)
335
15,233
15,56921,000(1,270)(360)
201(2,001)(1,214)(2)
16,352292(263)
12,663
12,399

601
(796)
555
(416)
(253)
(310)

(208)
(849)
724
(241)
(660)
(216)
(1,451)

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in Shareholders’ Equity)
Issuance of restricted stock compensation
In accordance with the resolution of the Extraordinary Board of Directors Meeting held on September 26, 2019,
we issued new shares as restricted stock compensation for Directors on October 25, 2019. As a result, capital stockand capital reserve increased by ¥21 million, respectively, during the six months ended December 31, 2019.
Subsequently, capital stock and capital surplus at the end of the first six months of the fiscal year were ¥7,458
million and ¥6,509 million, respectively.
Purchase of treasury shares
At the meeting of Board of Directors held on August 13, 2019, the Company resolved regarding mattersconcerning the acquisition of treasury shares in accordance with the provisions of Article 156 of the Companies
Act, which shall be applied mutatis mutandis pursuant to the provision of Paragraph 3 of Article 165 of the same
Act, and executed the same as follows. The share acquisition based on the above resolution by the Board of
Directors was completed as of November 22, 2019.
・Type of shares acquired: Common stock of the Company

・Total number of shares acquired : 748,100 shares・Total purchase price of shares: ¥1,999,757,700

・Acquisition period: From August 14, 2019 to November 22, 2019

・Acquisition method: Market purchase on the Tokyo Stock Exchange(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)(Application of IFRS 16 "Leases")
Subsidiaries adopting International Financial Reporting Standards (IFRS) have applied International
Financial Reporting Standard 16 "Leases" (hereinafter referred to as "IFRS 16") since the first quarter of the
fiscal year ending June 30, 2020. Accordingly, the lessee shall, in principle, record all leases on the balance
sheet in assets and liabilities.
The application of IFRS 16 is subject to transitional treatment and the cumulative effect of change inaccounting policy is recorded in retained earnings at the beginning of the first quarter of the fiscal year ending
June 30, 2020.
As a result, at the end of the second quarter of the fiscal year ending June 30, 2020, "Property, plant andequipment" increased by ¥3,897 million, "Other" of current liabilities increased by ¥720 million, and "Other"of non-current liabilities increased by ¥3,264 million. The impact on income and loss for the second quarterof the fiscal year ending June 30, 2020 and the impact on the beginning balance of the current fiscal year ofretained earnings are immaterial.

9

(Segment Information)
For the six months ended December 31, 2018 (from July 1, 2018 to December 31, 2018)1)

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

Power
Engineering

14,071

10,685

6,718

373

18

14,445

10,704

Urban &

Others(Note)

Total

EnergyBusiness

Real Estate
Leasing

Subtotal

6,761

364

217

38,819326

39,146

136

32

-

82

643

444

1,088

6,855

6,793

364

300

39,463771

40,234(1,987)
(87)
487
(21)
(123)
204
(1,527)(1,385)(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

(2,912)

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total

Domestic
Consulting

SpatialDevelopment

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(1,527)

Loss of “others” category(1,385)

Elimination of intersegment transactions

11

Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income(2,901)

10

For the six months ended December 31, 2019 (from July 1, 2019 to December 31, 2019)1)

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

Power
Engineering

19,267

12,025

7,583

205

23

19,473

12,048Others(Note)

Total

Real Estate
Leasing

Subtotal

8,963

710

216

48,767

380

49,148

274

77

-

82

663

441

1,105

7,858

9,041

710

298

49,430822

50,253

Segment income (loss)(1,354)
192
580
343
(113)
203
(148)
(1,011)(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

(1,159)2)

International

Urban &

EnergyBusiness

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total

Domestic
Consulting

SpatialDevelopment

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(148)

Loss of “others” category(1,011)Elimination of intersegment transactions(26)

Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income(1,185)(Significant Subsequent Events)
There is no relevant information

11

3.

Other Information(1) Status of Orders and Sales

Category/Segment

By period_

Orders received

Domestic Consulting
International Consulting
Power Engineering

Urban & Spatial Development
Energy Business

Real Estate Leasing
OthersFor the six months ended
For the six months ended
December 31, 2018
December 31, 2019
AmountAmountRatio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)
23,471
49.2
24,49541.9
11,569
4,568

7,824
225
-48

Total

Domestic Consulting
Net sales 1

International Consulting
Power Engineering

Urban & Spatial Development
Energy Business

Real Estate Leasing
OthersDomestic Consulting
Net sales 2

Impact of foreignexchange fluctuations

Power Engineering
Urban & Spatial Development
Energy Business
Real Estate Leasing
Others
Total

Outstanding Orders

Domestic Consulting
International Consulting
Power Engineering

Urban & Spatial Development
Energy Business
Real Estate Leasing
Others
Total

0.1

310

0.8

670

1.4

11,472
5,638
6,748
217

37.6

29.3
14.4
17.2

0.6

0.1

20,296
12,868
6,187
8,856

216
51

41.3

26.2
12.6
18.0

0.4

0.1

(Note 1) 28,482
15,411(Note 1) 20,510
723
-100

24.1
13.1

17.4
0.6
0.1

118,085

100.0

641

0.6

52,183

26,424
13,441
15,337

439

120

48.1

24.3
12.4
14.1

0.4

0.1

39,146100.0

49,148100.0

108,589

100.0

6,761
364

17.3
0.9

8,963
710

18.2
1.4

15,359
719

14.1
0.7

14,071

217
326
39,146

Domestic Consulting
International Consulting

15.4
0.1
100.0

Real Estate Leasing
Others
Total

Category/Business

48

8,984
56
--

58,395

10,685
6,718

By period_

0.1

16.4
0.5

30.2
12.3

100.0

14,714

International Consulting
Power Engineering

Urban & Spatial Development
Energy Business

17,627
7,182

47,707

45

Total

24.3
9.5

For the fiscal year ended
June 30, 2019
AmountRatio (%)
(Millions of yen)
52,855
44.7

35.9

27.3
17.2

0.6
0.8
100.0

19,267

12,025
7,583

216
380
49,148

39.3

24.5
15.4

0.4
0.8
100.0

As of December 31, 2018
As of December 31, 2019
AmountAmountRatio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)--25-(422)

398
-758

----

(396)

39,83530.0

14,142
196
--

10.7
0.2

66,467

11,964

27

132,635

50.1
9.0

0.0

100.0

19
---

1,175

35,94972,997

15,99918,565133-2143,647

49,59324,928
16,531439
1,016
108,589

45.7

23.0
15.2

0.4
0.9
100.0

As of June 30, 2019
AmountRatio (%)
(Millions of yen)-(563)
(982)

--

25.0
50.9

11.1

12.9
0.1
0.0

100.0

---

(1,545)31,75067,84015,004

17,679522-5132,801

23.9
51.1

11.3

13.3
0.4
0.0

100.0

Notes: 1. This includes the outstanding orders at the beginning of consolidation for Nippon Koei Mozambique, Limitada, Kisho
Kurokawa Architect & Associates Co., Ltd., and Quadrangle Architects Limited. which were consolidated from the previous
fiscal year.
2. The above amounts are exclusive of consumption taxes and other 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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