Consolidated Financial Results
for the Three Months Ended September 30,2020[Japanese GAAP]
December 14, 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: Yasushi Hirusaki, Director General, Corporate Management Headquarters
Phone: +81-3-3238-8040
Scheduled date of filing quarterly securities report: December 14, 2020
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: None
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three months Ended September 30,2020 (July 1, 2020 to September 30, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Three months ended
Million yen%
Million yen% Million yen% Million yen%
September 30, 2020
20,690 (16.9)(1,090)(1,436)(1,168)September 30, 201924,89440.4(1,176)(935)(638)(Note) Comprehensive income: Three months ended September 30, 2020: ¥(905) million [ - %]Three months ended September 30, 2019: ¥(1,109) million [ - %]Net income per share
Three months ended
September 30, 2020
September 30, 2019

Yen
(77.43)(41.52)

Diluted net income
per shareYen-(2) Consolidated Financial Position
Total assets
Net assets
As ofMillion yen
Million yen
September 30, 2020
139,658
57,520June 30, 2020
130,215
59,470(Reference) Equity: As of September 30, 2020 : ¥56,272 million
As of June 30, 2020
: ¥58,245 million

Equity ratio
%
40.3
44.7

2. Dividends
Annual dividends
2nd
3rd
Year-endquarter-end
quarter-end
Yen
Yen
Yen
75.00

1st
quarter-end
Yen-

Fiscal year ended June 30, 2020
Fiscal year ending June 30, 2021
Fiscal year ending June 30, 2021 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None

1

-

75.00

Total
Yen
75.00
75.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2021 (July 1, 2020 to June 30,
2021)(% 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
102,600(8.6)
1,500 (67.3)
2,100 (54.4)
500 (81.7)
33.13
Revenue

Operating income

Income before Tax

Income attributable toowners of parent

Basic earnings
per share
Yen
79.51

[IFRS]
Million yen% Million yen% Million yen%
Million yen%
Full year
102,600
3,000
2,900
1,200
(Note) 1. Revision to the financial results forecast announced most recently: None
2. Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on theassumption that the repercussions will continue until the end of the fiscal year ending June 2021. Since theforecast may change significantly depending on when the COVID-19 is contained and other variables, theCompany will disclose revised forecasts as soon as possible if any revisions become necessary based on its
performance outlook.
3. The Company has decided to voluntarily apply International Financial Reporting Standards (IFRS) from theyear-end of fiscal year ending June 30, 2021. Accordingly, in addition to the consolidated financial results
forecast based on Japanese GAAP, the Company discloses financial estimates based on IFRS. The percentagechange from the fiscal year ended June 30, 2020, 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: None
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 September 30, 2020
: 15,933,058 shares
As of June 30, 2020
: 15,933,058shares2) Total number of treasury stock at the end of the period
As of September 30, 2020:
820,818 shares
As of June 30, 2020:
861,023 shares
3) Average number of shares during the period
Three months ended September 30,2020 : 15,092,490 shares
Three months ended September 30,2019 : 15,382,360 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.

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
(Segment Information, etc.)................................................................................................................................. 10(Significant Subsequent Events).......................................................................................................................... 12
3. Other Information ...................................................................................................................................................... 13(1) Status of Orders and Sales ................................................................................................................................... 131

1.

Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended September 30, 2020 (July 1, 2020 to September 30, 2020), the Japanese economy
remained in a difficult position due to COVID-19. However, in the process of implementing measures to preventthe spread of infections while raising the level of socioeconomic activities, the trend toward economic recovery is
expected to continue. Similarly, as for overseas economies, the trend toward economic recovery is expected tocontinue as economic activities resume gradually, but we need to closely monitor the trend of COVID-19 and theimpact 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 is expected to remain strong since the Japanese
government’s budget for public works projects in fiscal year 2020 is expected to maintain at the same level as theprevious fiscal year. On the other hand, the future of the International Consulting Business is uncertain due to thetravel restrictions accompanying the spread of COVID-19, although it is expected that the Japanese government
will continue with its high-quality infrastructure system export strategy. In the Power Engineering Business, newbusiness opportunities and competition are expected to arise as a result of the reform of the electric power system,
while the severe business environment is expected to continue as customers continue to request cost reductions
when upgrading existing electric power facilities. In the Urban & Spatial Development Business, while the impactof Brexit on demand for architectural design in the U.K. is a continuing concern, demand for infrastructuredevelopment is expected to increase as urbanization progresses in Asian countries. In the Energy Business, demand
for renewable energy is expected to grow as the world shifts to development of low-carbonization 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,” “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.”
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. Our internal policy is topromote telework and other work style reforms, developing relevant infrastructure and various rules, and achieving
a work-life balance and improving productivity. We are taking measures to secure sufficient cash reserves in orderto prepare for uncertainty in business activities, such as long-term borrowing of funds and increasing working
capital line of credit and commitment lines. However, some businesses have been affected by the spread of COVID19.
As a result, the Group ended the three months of the current fiscal year with orders received having decreased
8.8% year on year to ¥26,965 million. Net sales decreased 16.9% year on year to ¥20,690 million, operating loss
decreased 7.3% year on year to ¥1,090 million, ordinary loss increased 53.4% year on year to ¥1,436 million, andloss attributable to owners of parent increased 83.0% year on year to ¥1,168 million.
Net sales for the three months ended September 30, 2020 were ¥20,690 million, an achievement rate of 20.2%
against the net sales forecast of ¥102,600 million for the fiscal year ending June 30, 2021 (three months ended
September 30, 2019: 19.5%). This is due to the fact that, as the Group's business structure, a large proportion ofoperations 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 toowners of parent for the three months ended September 30, 2020.

2

Business results for each segment are as follows:[Domestic Consulting]
As for the Domestic Consulting Business, we worked thoroughly to manage costs related to indirect operations,while promoting the assignment of human resources engaged in the International Consulting Business to workwithin Japan and receiving orders jointly. At the same time, we worked to support the promotion of the global
strategy through collaboration with the International Consulting Business and the R&D Center, and to develop new
businesses by utilizing management knowhow, as the core, to improve the value of infrastructure.
As a result, net sales decreased 17.3% year on year to ¥8,330 million, while orders received increased 16.5% year
on year to ¥16,564 million. Operating loss decreased 43.1% year on year to ¥501 million and ordinary loss increased
12.5% year on year to ¥992 million.
[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 operating system andpracticing strict management of profit, risks, and safety. However, there were travel restrictions and delays inoperations due to the spread of COVID-19.
As a result, orders received decreased 41.4% year on year to ¥3,648 million, net sales decreased 31.0% year on
year to ¥4,321 million, operating income decreased 73.8% year on year to ¥8 million and ordinary loss was ¥74
million (compared to the ordinary income of ¥12 million in the same period last year).
[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. However, there were delays in operations due to the spread of COVID-19.
As a result, net sales decreased 5.6% year on year to ¥3,177 million, while orders received increased 2.6% year
on year to ¥3,769 million. Operating loss was ¥132 million due to mainly the provision for loss on construction
contracts of ¥118 million resulting from budget overruns for the vertical water turbine projects (compared to theoperating income of ¥34 million in the same period last year). Ordinary loss was ¥150 million (compared to theordinary income of ¥17 million in the same period last year).
[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. However, we received smallerorders and there were delays in contracting procedures due to the spread of COVID-19.
As a result, orders received decreased 46.0% year on year to ¥2,910 million, and net sales increased 0.2% year on
year to ¥4,494 million. However, operating income decreased 36.4% year on year to ¥198 million, and ordinary
income decreased 58.2% year on year to ¥131 million.
[Energy Business]
In Energy Business, we worked to improve earnings from the power generation business such as renewable energy,
formulate new projects, including PFI (Private Finance Initiative) business that utilize private funds, and promote
the energy management business mainly in Europe.
As a result, orders received increased 8.9% year on year to ¥34 million, and net sales decreased 54.6% year on
year to ¥188 million. However, operating loss decreased 25.3% year on year to ¥72 million, and ordinary income
was ¥165 million mainly due to share of income of entities accounted for using equity method (compared to theordinary loss of ¥87 million in the same period last year).
3

[Real Estate Leasing]In the Real Estate Leasing Business, net sales increased 29.6% year on year to ¥140 million. Operating income
increased 17.6% year on year to ¥120 million and ordinary income increased 18.0% year on year to ¥121 million.
(2) Explanation of Financial Position
Total assets as of the end of the first quarter of the fiscal year ending June 30, 2021, amounted to ¥139,658 million,
an increase of ¥9,442 million from the end of the previous fiscal year.
In the Assets section, current assets were ¥71,189 million, an increase of ¥9,774 million from the end of theprevious fiscal year. This was mainly due to a ¥6,403 million increase in cash and deposits and a ¥3,066 million
increase in notes and accounts receivable-trade.
Non-current assets were ¥68,468 million, a decrease of ¥331 million from the end of the previous fiscal year. Thiswas mainly due to a ¥387 million decrease in leasehold and guarantee deposits included in other items ofinvestments and other assets as a result of leaving the Kudan Office.
In the Liabilities section, current liabilities were ¥46,453 million, an increase of ¥953 million from the end of theprevious fiscal year. This was mainly due to a ¥2,959 million increase in current portion of long-term loans payable
and a ¥1,426 million increase in provision for bonuses while a ¥1,580 million decrease in notes and accounts
payable-trade, a ¥1,000 million decrease of in short-term loans payable, and a ¥874 million decrease in income
taxes payable.
Non-current liabilities were ¥35,684 million, an increase of ¥10,439 million from the end of the previous fiscal
year. This was mainly due to a ¥11,090 million increase in long-term loans payable.
Net assets were ¥57,520 million, a decrease of ¥1,950 million from the end of the previous fiscal year. This was
mainly due to a ¥2,184 million decrease in shareholders’ equity caused by a decrease in retained earnings, while a¥211 million increase in accumulated other comprehensive income.
As a result, the shareholders’ equity ratio decreased 4.4 percentage points from the end of the previous fiscal year
to 40.3%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The consolidated financial results forecast for the fiscal year ending June 30, 2021 have not changed from theforecast announced in the Consolidated Financial Results for the Fiscal Year Ended June 30, 2020 dated August
31, 2020.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets
As of June 30, 2020

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 Setember 30, 2020

16,00339,047
1,725
4,947
(308)
61,41522,406
42,114
2,278
4,730
(339)
71,18915,565
16,108
9,082
40,756

15,527
16,103
8,825
40,456

16,068(157)
15,91068,800130,215

15,998(157)
15,84068,468
139,658

7,398
4,734
12,132

5(Millions of yen)

7,450
4,720
12,170As of June 30, 2020

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
Provision for compensation
Provision for business restructuring
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

As of Setember 30, 2020

5,724
13,000
2,780
1,266
8,009
2,201
52
496
93
11,87645,500

4,144
12,000
5,740
391
9,138
3,627
52
576
485
21
10,27546,453

7,458
6,509
49,207(2,415)60,7607,458
6,509
46,901(2,293)58,576

14,922
17
34
3,814
6,456
25,24570,745298(3,486)672(2,515)
1,225
59,470130,215

6(Millions of yen)

26,013
17
34
3,852
5,766
35,684
82,137253(3,245)688(2,303)
1,248
57,520139,658

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
For the Three months ended September 30, 2019 and 2020

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
Share of income of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Provision for compensation
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, net of tax
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(Millions of yen)
For the three months
For the three months
ended Setember 30, 2019 ended Setember 30, 2020
(From July 1, 2019
(From July 1, 2020
to Setember 30, 2020)
to Setember 30, 2019)
20,69024,894
14,931
19,057
5,837
5,759
6,850
7,014
(1,090)(1,176)
55
13
186
105
361

51
17
157
169
395

100
12
8
120
(935)
(935)
390
(691)
(301)
(634)

90
108
485
56
740
(1,436)(1,436)
365
(708)
(343)
(1,093)

(111)
(418)
7

(44)
214
15

(638)
3

47

(1,168)
75

2

(474)
(1,109)

187
(905)

6

51

(1,116)(957)

(3) Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
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
Increase (decrease) in provision for compensation
Increase (decrease) in provision for business restructuring
Interest and dividend income
Interest expenses
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 intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
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 three months
For the three months
ended Setember 30, 2019 ended Setember 30, 2020
(From July 1, 2019
(From July 1, 2020
to Setember 30, 2019)
to Setember 30, 2020)
(935)
554
128
12
57
1,514
144
(3)
(69)
100
(55)
(5,726)
1,836
(709)
(628)
(356)
(909)
(561)
(5,608)58(73)(1,100)(6,723)(1,436)
678
131
(157)
31
1,403
79
485
(74)
(69)
90
41
(2,973)(546)(1,580)
(629)
1,128
(47)
(294)
(3,739)77(90)(1,156)(4,908)12,000
(150)
(171)
110
(1,338)(1,177)
(1)
9,270
(69)
1,700
12,66314,363(1,000)15,000
(864)
(194)
122
(0)
(1,124)(9)
11,92822
6,436
14,771
21,207

(187)
(710)
(46)
167
(776)

91
(618)
(83)
3
(607)

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in Shareholders’ Equity)
There is no relevant information.
(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 eliminatedby the end of the cost accounting period, which is, therefore, deferred as other current liabilities.

9

(Segment Information, etc.)[Segment Information]
For the three months ended September 30, 2019 (from July 1, 2019 to September 30, 2019)1)

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

Power
Engineering

10,073

6,263

3,365

39

9

10,113

6,272

Urban &

Others(Note)

Total

EnergyBusiness

Real Estate
Leasing

Subtotal

4,487

414

108

24,712

182

24,894

124

39

-

40

253

212

465

3,490

4,526

414

149

24,966394

25,360

(882)
12
17
314
(87)
102
(521)
(393)
(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

(914)

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(521)

Loss of “others” category(393)

Elimination of intersegment transactions(21)

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

(935)

10

For the three months ended September 30, 2020 (from July 1, 2020 to September 30, 2020)
1)

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

Power
Engineering

8,330

4,321

3,177

181

21

8,511

4,343

Urban &

Others(Note)

Total

EnergyBusiness

Real Estate
Leasing

Subtotal

4,494

188

140

20,652

37

20,690

59

14

-

34

310

156

466

3,236

4,509

188

174

20,963

193

21,156

(992)
(74)
(150)
131
165
121
(799)
(635)
(Note) “Others” refers to a group of operations from which no income is gained or that produce only incidental gains.

(1,434)

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(799)

Loss of “others” category(635)

Elimination of intersegment transactions(1)

Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income(1,436)11

(Significant Subsequent Events)(Issuance of new shares as restricted stock compensation)
The Company decided to issue new stocks as restricted stock compensation at the extraordinary Board of
Directors’ meeting held on September 29, 2020 as follows.
1. Purpose and reason for issuance
We aim to have the directors (not including outside directors; “Eligible Directors”) share benefits and risksof stock price fluctuations with shareholders and further enhance their willingness to contribute to improving
stock prices and enhancing corporate value. Therefore, the Company decided, at the Board of Directors heldon August 14, 2017, to introduce a restricted stock compensation system (the “System”) which will issue
restricted stock to Eligible Directors.
Furthermore, the 73rd Annual General Meeting of Shareholders held on September 28, 2017, approved, under
the System, setting the total amount of monetary compensation claims payable to the Eligible Directors ascompensation related to restricted stock at a level where it does “not exceed an annual amount of ¥60 million.”
In addition, the total number of 50,000 shares which are restricted stock to be allotted to Eligible Directors
will be the upper limit of the number of restricted shares to be allotted in each fiscal year, and the transfer
restriction period of restricted stock will be between one to five years, determined by the Board of Directors.
2. Outline of the Issuance(1) Payment date(2) Class and number of shares to be issued(3) Issue price(4) Total issue price of shares to be issued(5) Capitalization amount(6) Total capitalization amount(7) Method of offer or allotment(8) Method of contribution(9) Allottees, number thereof andnumber of shares to be allotted

October 28, 2020
14,996 shares of common stock of the Company¥2,880 per share¥43,188,480¥1,440 per share¥21,594,240
Allotment of specified restricted stocks
In-kind contribution of monetary compensation claims
14,996 shares to eight directors of the Company(excluding outside directors)(10) Transfer restriction period

October 28, 2020, to October 27, 2023

(11) Other

Issue of new shares to be allotted is conditioned on the
securities registration statement taking effect in accordancewith the Financial Instruments and Exchange Act.

12

3.

Other Information(1) Status of Orders and Sales
By period_ For the three months ended For the three months ended
September 30, 2019
September 30, 2020
AmountAmountCategory/Segment
Ratio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)Domestic Consulting
14,21348.1
16,564
61.5
Orders received

International Consulting
Power Engineering

Urban & Spatial Development
Energy Business

Real Estate Leasing
Others

6,225

21.1

3,648

31

0.1

34

3,674
5,385

--

31

3,769

12.4
18.2

14.0

2,910

10.8

37

0.1

--

0.1

13.5

For the fiscal year ended
June 30, 2020
AmountRatio (%)
(Millions of yen)
56,18439.7
47,508

33.5

156

0.1

19,82917,874

0.1

--

79

14.0
12.6
0.1

Total

29,563100.0

26,965100.0

141,632

100.0

Power Engineering

2,749

11.0

2,746

13.3

12,774

11.4

Domestic Consulting
Net sales 1

International Consulting

Urban & Spatial Development
Energy Business

Real Estate Leasing
Others

10,538
6,668
4,395
407
108
27

42.3

9,079

4,463

26.9
17.7

4,080

1.6

141

140

0.4

37

0.1

43.9

53,85325,96821.6

19.7

17,991

0.7

1,090
451

0.7

84

0.1

48.0
23.1

16.0
1.0

0.4

0.1

Total

24,894100.0

20,690100.0112,214100.0

Power Engineering

3,365

13.5

3,177

15.4

15,74714.0

Domestic Consulting
Net sales 2International Consulting

Urban & Spatial Development
Energy Business

Real Estate Leasing
Others
Total

Category/Segment

10,073
6,263
4,487
414
108
182

By period_

Impact of foreignexchange fluctuations

Domestic Consulting

International Consulting
Power Engineering

Urban & Spatial Development
Energy Business

Real Estate Leasing
OthersTotal

24,894

40.5

8,330
4,321

25.2
18.0

4,494

1.7

188

0.4

140

0.7

100.0

37

20,69040.2

51,33320.9

24,508

45.8

21.8

21.7

18,160

16.2

0.2

825

0.7

0.9

1,187

0.7

100.0

451

112,214

1.1
0.4

100.0

As of September 30, 2019
AmountRatio (%)
(Millions of yen)0

As of September 30, 2020
AmountRatio (%)
(Millions of yen)--

As of June 30, 2020
AmountRatio (%)
(Millions of yen)
--

(480)

468

(542)

(113)

--

(12)

--

---

--

(606)

(771)

--

-

(12)

--

(303)

(540)

---

(1,095)

Domestic Consulting

35,42625.8

41,565

24.7

34,08021.0

Urban & Spatial Development

18,18913.3

16,3189.7

17,01910.5

Outstanding Orders

International Consulting
Power Engineering
Energy Business

Real Estate Leasing
OthersTotal

67,283
15,929237--

9137,075

49.1
11.6

0.2

0.0

100.0

87,25323,082
54--

168,274

51.9
13.7

0.0

100.0

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

13

88,84022,05934--

162,034

54.9
13.6
0.0

100.0