February 5, 2024
Year ended December 31, 2023 FY2023 Non-consolidated Financial Results(All financial information herein has been prepared in accordance with accounting principles generally accepted in Japan. This
document is an English translation from the original Japanese-language document. This translation is not subject toauditing standards in the U.S.)
Listed company
name:Code number:
Representative:
Contact person

Original Engineering Consultants Co., Ltd.

Stocklisting:
4642(URL(Title) President & Representative Director (Name)(Title) Director & General Manager of(Name)
Financial Affairs Division
Planned Annual General Meeting of Shareholders: March 26, 2024
Planned date of payment of dividends: March 27, 2024
Planned filing of a financial report: March 26, 2024
Earnings supplementary explanatory documents: None
Earnings presentation: None

Tokyo Stock Exchange, Standard Market
https://www.oec-solution.co.jp)
Nobuhiko Suga
Tel: (03) 6757-8800
Kaoru Kira

(Amounts less than ¥1 million are truncated)
1. NON-CONSOLIDATED FINANCIAL RESULTS FOR FY2023 (January 1, 2023, to December 31, 2023)(1) Non-consolidated Operating Results(Percentages represent year-on-year changes)

FY 2023 ended
December 31, 2023
FY2022 ended
December 31, 2022

Net sales
Million yen%

Operating income
Million yen%

Ordinary income
Million yen
%

6,633

2.3

773

4.5

787

6,486

4.5

739

28.5

748

Profit per
share-basic
Yen

ProfitMillion yen

%

5.3

477

14.9

19.6

415

10.5

Profit per shareOrdinary income
Return on Equity
Operating margin
dilutedto total assets
Yen
%
%
%

FY2023 ended
81.23
7.5
10.2
December 31, 2023
FY2022 ended
70.94
6.9
10.2
December 31, 2022
(Reference) Gain (loss) on investment by equity method: FY2023: ¥- million FY2022: ¥- million

11.7
11.4

(2) Non-consolidated Financial Position
Total assets

Shareholders’ equity
ratio%

Net assets

Net assets per share

Million yen
Million yen
Yen
As of December 31,
7,886
6,493
82.3
1,101.67
2023
As of December 31,
7,598
6,153
81.0
1,047.31
2022(Reference) Shareholders’ equity: As of December 31, 2023: ¥6,493 million As of December 31, 2022: ¥6,153 million(3) Non-consolidated Cash FlowsFY 2023 ended
December 31, 2023
FY2022 ended
December 31, 2022

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Cash and cash
equivalents at the endof the period
Million yen

399

63

-224

3,265

691

-277

-225

3,026

2. DIVIDENDSDividends per share
End of
End of third Fiscal yearsecond
quarterendquarter
Yen
Yen
Yen

Full
year

-

0.00

-

32.00

32.00

190

45.1

3.1

-

0.00

-

32.00

32.00

190

39.4

3.0

-

0.00

-

32.00

32.00

End offirstquarterYen
FY2022 ended
December 31, 2022
FY 2023 ended
December 31, 2023
FY2024 ending
December 31, 2024
(forecast)

Total
Ratio ofdividend Payout dividends
amountratio
to net(Full year)
assetsYen Million yen

%

%

41.9

3. FORECAST OF NON-CONSOLIDATED RESULTS FOR FY2024 (January 1, 2024, to December 31, 2024)(Percentages represent changes from the same period of the previous fiscal year)
Profit per
Net sales
Operating income Ordinary income
Profitshare-basic
Million yen % Million yen% Million yen% Million yen%
Yen
Full year
6,700 1.0
700 -9.5
710 -9.9
450 -5.7
76.35*NOTES(1) Changes in accounting policies, changes in accounting estimates and retrospective restatements:(i) Changes in accounting policies in accordance with revision of accounting standards: Yes(ii) Changes in accounting policies other than (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(2) Number of outstanding shares (common stock)(i) Number of shares outstanding at end of period, including treasury stock
As of December 31, 2023: 7,796,800 shares As of December 31, 2022: 7,796,800 shares(ii) Number of shares of treasury stock at end of period
As of December 31, 2023: 1,902,933 shares As of December 31, 2022: 1,921,033 shares(iii) Average number of shares outstanding for each period
As of December 31, 2023: 5,876,528 shares As of December 31, 2022: 5,858,706 shares* The summary of financial results is not subject to audit by certified public accountants or audit
corporations.
* Note regarding appropriate use of forecasts and forward-looking statements
The business results forecasts presented are based on information available to the Company at the present time andare subject to potential risks and uncertainty. Accordingly, actual results may differ from any projections due tovarious factors. For matters relating to results forecasts, please refer to “1. SUMMARY OF BUSINESS RESULTS,”“(4) Future Outlook” on page 4 of the Attachment.

○ Index of the Attachment
1.

SUMMARY OF BUSINESS RESULTS ..................................................................................................................... 2(1) Summary of Business Results for Current Period .................................................................................................. 2(2) Summary of Financial Position for Current Period ................................................................................................ 4(3) Summary of Cash Flows for Current Period .......................................................................................................... 5(4) Future outlook ........................................................................................................................................................ 5

2.

BASIC POLICY FOR THE SELECTION OF ACCOUNTING STANDARDS ................................................... 6

3.

FINANCIAL STATEMENTS AND PRIMARY NOTES ........................................................................................ 7(1) Non-consolidated Balance Sheet ........................................................................................................................... 7(2) Non-consolidated Statements of Operations........................................................................................................... 9(3) Non-consolidated Statement of Changes in Net Assets ........................................................................................ 10(4) Non-consolidated Statement of Cash Flows ......................................................................................................... 13(5) Notes regarding the Non-consolidated Financial Statements ............................................................................... 14(Matters Affecting the Assumption of a Going Concern).................................................................................... 14(Changes in Accounting Policies)........................................................................................................................ 14(Segment Information)......................................................................................................................................... 14(Equity Method Profit or Loss) ............................................................................................................................ 14(Per Share Information) ....................................................................................................................................... 15(Significant Subsequent Events) .......................................................................................................................... 15

1

1.

SUMMARY OF BUSINESS RESULTS(1)

Summary of Business Results for Current Period

According to a provisional calculation of the Cabinet Office, Japan’s water and sewerage infrastructure assets
amount to approximately ¥130 trillion, which indicates that the water and sewerage infrastructure stock is the secondlargest in the country by sector after that of roads. Among these, most of the population has access to water supplies, withthe total length of water pipes reaching around 740,000 kilometers across Japan. However, the national average annual rateof renewing water pipes is as low as 0.65%, which means that it will take almost 130 years to renew all of these pipes. The
statutory useful life of water pipes is 40 years, but their aging rate is expected to keep increasing due to the slow progressin renewing the water pipe infrastructure, much of which was built during the high-growth period. Therefore, renewing
aged water pipes has become an important issue for the stable supply of safe water.
In the sewage field, the number of people with access to sewage treatment facilities is 92.9% in Japan (as of theend of FY2022), but only 81.0% have access to sewers, which means nearly 8.8 million people still live without access towastewater treatment plants. Therefore, it is necessary to accelerate the spread of sewage treatment. While the need toconstruct new facilities is on the decrease, a great number of water and sewage facilities that were rapidly built during thehigh-growth period are reaching the end of their useful lives every year. Maintenance and renewal of these infrastructure
assets, which are indispensable for ensuring a safe, secure and cultural life, are thus in demand. There is a growing need forflood countermeasures to protect lives and assets from the torrential rains as well as wind and flood damage frequently
caused by large typhoons in recent years, earthquake resistance so that toilets can be used even in the event of earthquakes,
reinforcement measures to make sewage facilities resistant to tsunamis, and initiatives for “green innovation sewage
systems” to transform society into a decarbonized and recycling-oriented one.
Out of Japan’s national budget for FY2023, passed and enacted in March 2023, the total amount to be allocated to“General Social Infrastructure Development,” including the water and sewage budget, which is closely connected with thebusiness of the Company, is a national expenditure of ¥1,361.0 billion. This amount is broken down to ¥818.6 billion fordisaster prevention and safety subsidies and ¥542.4 billion for general social infrastructure development subsidies. Amongthem, the preliminary national budget for the sewage system is about ¥477.2 billion in total. On the other hand, the total of
sewage operational cost in ordinance-designated cities across the country and the Tokyo metropolitan area, which havelarge budgets, is ¥624.6 billion, an increase of 2.3% from the beginning of the previous fiscal year.
The Company, in this operating environment, has been working aggressively to win orders mainly in the watersupply field, particularly for services related to asset management in line with the Water Supply Division of the Ministry of
Health, Labour and Welfare’s (MHLW) new water supply vision that focuses on the key words of “safety, strength,
sustainability, collaboration and challenge.” In the sewerage field, the Company pursues orders in line with the sevenmajor themes set by the Sewerage and Wastewater Management Department of the Ministry of Land, Infrastructure,
Transport and Tourism (MLIT): Strengthening earthquake recovery and reconstruction support and implementing national
measures for safety and peace of mind; early elimination of areas lacking sewerage infrastructure; promoting water
environmental management; improving facilities management and operations; strengthening sewerage management;
promoting measures to achieve a low-carbon, recycling-oriented society; and, promoting international water businesses
through globalization and private-public initiatives. We also make efforts to obtain orders for services related to support by
the Ministry of Internal Affairs and Communications for introducing local public enterprise-based accounting into smallscale water supply and sewerage operations, in accordance with the Local Public Enterprise Act, as well as services
including those to formulate management strategies on sewerage operations. In the domestic market, we are doubling
down on sales activities to cultivate new fields and customers, based on our long track record, while capturing projectorders that have high order-repeat rates through offering fine-tuned technological proposals and flexible customer service.
We do this on the back of our superiority resulting from an accumulated knowledge of the status of facility development
and operational issues in local public entities who are our existing customers. In overseas markets, the Company has beenworking to win orders by tapping into projects in emerging nations through public-private partnerships.
On the other hand, with regard to its internal work environment, the Company has provided 90% of its employeeswith smartphones and notebook PCs and created an office environment with free address (no assigned seating). Employees
can also work from home or outside the office using a teleworking environment. Specifically, the Company is providing
the following internal systems: facilitating prompt information-sharing and chatting between different levels, on which theCompany has worked to raise awareness internally; speedily responding to departmental issues by checking management
benchmarks by department when necessary; conducting appropriate budget management, process control, progress
management, and outsourcing management for orders received for projects; upgrading in-house engineers’ skills; securing
and fostering young employees who will lead the next generation; reducing overtime to comply with the revised Labor
Standards Act; promoting well-being management; utilizing internal systems, such as a staggered working hours system;and promoting the use of paid leave, by which each employee can work flexibly according to his/her own circumstances.
In our internal business management system, we have digitized the approval function for each business workflow, fromreceiving an order for design work, starting the project, preparing and changing the execution budget, and completing the
project, thereby accelerating budget management and reducing printing. Through these efforts, we are striving to improve
productivity and reduce costs, and to increase employee returns and earnings.
During the current fiscal year, we have shaken off the fear of COVID-19 and believe that communication has
become more active, faster, and more sophisticated than before the coronavirus pandemic due to our improved
communication literacy. As for customer relations, in-person meetings, online meetings and on-site inspections have gonesmoothly with many clients.
Furthermore, we provided training in advance for managers to improve their interviewing skills to lead career2

development training for subordinates. At a later stage, career development training was held for the targeted young
employees, in an effort to improve the company’s organizational strength over the medium to long term. With regard tooverseas projects, restrictions on travel to and from Japan and the target countries have been lifted, and it is now possible
to travel to those countries.

3

As a result, orders received during the fiscal year amounted to ¥6,807 million (up 5.4% year-on-year). We believethat the main factors for the increase in orders were the increase in the average unit price of orders received and the receiptof large projects. Contracts completed posted ¥6,633 million (up 2.3% year on year). Operating income amounted to ¥773
million (up 4.5% year on year), and ordinary income was ¥787 million (up 5.3% year on year). Profit stood at ¥477 million(up 14.9% year on year).
Results by operating division were as follows.
[Engineering Consultant Department]
The Engineering Consultant Department received total orders of ¥6,399 million (up 5.7% year-on-year).
Contracts completed by the department were ¥6,203 million (up 3.7% year on year).
[Information Processing Department]
In the Information Processing Department, orders received were ¥407 million (up 1.9% year-on-year). Contracts
completed by the department was ¥430 million (down 14.6% year on year).

(2)

Summary of Financial Position for Current Period(Current assets)
Current assets for the current fiscal year totaled ¥6,554 million (up 6.9% from the previous fiscal year). The
main factors contributing to this change included an increase in “Cash and deposits” due to the receipt of
payment for operations.
(Noncurrent assets)
Noncurrent assets for the current fiscal year stood at ¥1,331 million (down 9.2% year-on-year). This was mainly
due to a decrease in “Investment securities” caused by their redemption.
(Current liabilities)
Current liabilities for the current fiscal year amounted to ¥1,293 million (down 1.6% year-on-year). This was
mainly due to a decrease in “Accounts payable–operating” resulting from payments to subcontractors.
(Noncurrent liabilities)
Noncurrent liabilities for the fiscal year amounted to ¥99 million (down 23.1% year-on-year). The main factors
contributing to this change were a drop in “Lease obligations” due to a decrease in lease contracts and a decreasein “Long-term accounts payable–other.”(Net assets)
Net assets for FY2023 were ¥6,493 million (up 5.5% year-on-year). This was mainly due to an increase in“retained earnings” resulting from the posting of net income.

4

(3)

Summary of Cash Flows for Current Period
The balance of cash and cash equivalents (hereinafter “funds”) at the end of the fiscal year was ¥3,265 million(up 7.9% year-on-year).
The status of each cash flow in the current fiscal year and its factors are as follows:(Cash flows from operating activities)
Funds obtained from operating activities amounted to ¥399 million (down 42.3% year-on-year).
This was mainly due to the recording of income before income taxes, an increase in trade receivables, and adecrease in advances received on uncompleted contracts.
(Cash flows from investing activities)
Funds acquired through investing activities amounted to ¥63 million (use of ¥277 million in the previous fiscal
year).
This was mainly due to the acquisition and redemption of investment securities and acquisition of noncurrent
assets.
(Cash flows from financing activities)
Funds used by financing activities amounted to ¥224 million (down 0.3% year-on-year).
The main factor contributing to this change was the payment of cash dividends.
FY2021 ended
FY2022 ended
FY 2023 ended
December 31,
December 31, 2022 December 31, 2023
2021
Shareholders’ equity ratio (%)
83.3
81.0
82.3
Shareholders’ equity ratio on a market value basis (%)
82.2
62.2
82.2
Interest-bearing debt to cash flow ratio (years)
0.39
0.12
0.15
Interest coverage ratio (times)
86.41
251.05
197.70Shareholders’ equity ratio:
Shareholders’ equity / total assets
Shareholders’ equity ratio on a market value basis: Market capitalization / total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/cash flows
Interest coverage ratio: cash flows/interest payments
Notes:
1. Market capitalization is calculated by multiplying the closing stock price at end of period by the number ofshares issued at end of period (excluding treasury stock).
2. Cash flows are those from operating activities stated in the Non-consolidated Statement of Cash Flows. Interestbearing liabilities cover all liabilities presented on the Non-consolidated Balance Sheet that are subject tointerest expenses. Interest payments are based on interest expenses on the Non-consolidated Statement of Cash
Flows.

(4)

Future outlook

According to an outline of the Ministry of Land, Infrastructure, Transport and Tourism’s fiscal 2024 budget for
public works projects, which has close ties with projects in our company, ¥870.7 billion (1.02 times year on year) in
the Disaster Prevention and Safety Grant and ¥506.5 billion (0.92 times year on year) in the General Grant for Social
Infrastructure Development are expected to be appropriated for sewerage projects by local governments. On the other
hand, in light of the transfer of water supply maintenance and management administration to the Ministry of Land,
Infrastructure, Transport and Tourism in April 2024, the total amount of individual subsidies to sewerage systems is
expected to be ¥95.6 billion, 1.24 times higher than the previous year, due to the establishment of a new project topromote the integrated efficiency and strengthening of infrastructure of water and sewerage systems, in addition to
subsidies for sewerage disaster prevention projects, subsidies for sewerage projects, and sewerage project survey costs.
In fiscal 2023, the impact of the coronavirus pandemic on social and economic activities decreased, and thebudgets related to water supply and sewerage projects by local governments were generally executed as planned. These
included countermeasures to combat the aging of and give earthquake resistance to facilities, resolving theunderdevelopment of sewage systems, countermeasures against flooding of inland waters, expansion of area coverageand communalization, countermeasures against infiltration during rainy weather, and decarbonization. In June 2023,
5the Cabinet Office published a revised version of the PPP/PFI Promotion Action Plan, whose aim was to realize 100
projects in total, under a concession system under the name of “Water PPP” and another similar system, a publicprivate partnership in which maintenance, management and renewal are integrated in a long-term contract. For fiscal
2024, we expect that the momentum for introducing “Water PPP” will increase, especially among small and mediumsized local public entities whose business execution capabilities are deteriorating, while the trend in other sectors willcontinue to be the same as in fiscal 2023.
In order to meet these needs, engineers with extensive experience continue to strive for self-improvement andjoin forces. In addition, we have established a Special Team for Water PPP Countermeasures within the company inorder to address future issues. Furthermore, the DX Promotion Department will strive to resolve social issues not onlyin the main water supply and sewerage field but also in the river, waste and environment and overseas business fields
by upgrading digitization services for water supply and sewerage information with ICT technologies that have beendeveloped and accumulated over the years, as well as by collaborating with our business partners.
Orders for local governments’ public procurement, which account for the majority of the Company’s orders
received, are placed through price auctions. As might be expected, contract prices and asking prices vary widely inmost cases. Accordingly, the Company is aware that it is expected to make management efforts to overcome various
challenges to achieve its management goals. These include competition among firms; fluctuations in bidding prices;higher costs of work due to an increase in planning and designing operations for rebuilding and renewal that requirecomplex and advanced experience and expertise; an increase in personnel expenses to respond to recruiting activities
that are becoming increasingly difficult year by year and to prevent turnover of, secure, and foster talented humanresources.
Meanwhile, we feel there has been an improvement in the corporate image thanks to measures taken by the
management consistently rather than on a temporary basis to provide an effective working environment, based on
personal dialogue between top management and all employees that has been held annually for more than 10 years.
Such measures include aiming to have company-wide awareness reform take root to ensure “everyone is committed toworking with a sense of management” while “building an open organizational culture.” The company has also worked
on its employment support system aimed at balancing childcare and work while respecting the diverse values that
continue to evolve.
Passing on techniques of senior engineers and securing and fostering young employees who will lead the next
generation remain critical management issues for the Company. Based on its solid financial base, the Company will
endeavor to overcome management issues by continuing to improve and provide a work environment that
accommodates employees, improve employee satisfaction, and work on hiring talented human resources.
A growing number of local governments are seeing a decline in the number of employees in parallel with theshrinking population and we believe that collaboration with and support from private companies are as essential as everin order to sustain water and sewage services in the future. Under such social circumstances, our company aims toresolve social issues and enhance corporate value by providing customized consulting services tailored to meet social
needs, thereby contributing to sustaining water and sewerage services essential for people’s safe and secure lives.
In the fiscal year ending December 31, 2024, the Company forecasts orders will decrease to ¥6,700 million(down 1.6% year-on-year) and contracts completed will rise to ¥6,700 million (up 1.0% year-on-year). Operating
income is forecast to decrease to ¥700 million (down 9.5% year-on-year) and ordinary income to fall to ¥710 million(down 9.9% year-on-year). Profit is forecast to drop to ¥450 million (down 5.7% year-on-year).

2.

BASIC POLICY FOR THE SELECTION OF ACCOUNTING STANDARDSThe Company’s stakeholders are mostly domestic shareholders, creditors and business partners, and hence theCompany does not see much necessity to procure funds from overseas. Considering these factors, the Company
applies Japanese accounting standards.

6

3.

FINANCIAL STATEMENTS AND PRIMARY NOTES(1)

Non-consolidated Balance SheetFY2022
FY2023(as of December 31, 2022) (as of December 31, 2023)(Thousands of yen)

AssetsCurrent assets
Cash and deposits
Accounts receivable–completed operation andcontract assets
Costs on uncompleted services
Prepaid expenses
Advances receivable from group affiliates
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings, net
Structures, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Total property, plant and equipment
Intangible assets
Leasehold right
SoftwareLease assets
Telephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable from employees
Insurance funds
Guarantee deposits
Long-term prepaid expenses
prepaid pension costs
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7(Thousands of yen)

3,742,336

3,981,339

2,301,975

2,495,744

8,714
43,856200
67,069-32,360
6,131,793

1,594
49,986273
72,815-47,047
6,554,707

190,584
022,229150,015
81,648444,478

161,026022,805150,015
55,981
389,828

3,321
121,082
290
3,711
128,404

3,321
115,397
159
3,711
122,590

499,466
50,0003,432
78,998167,318
4,242
63,62028,769-2,200893,647
1,466,530
7,598,324

441,982
50,0002,911
78,907
167,750
9,179
16,35026,29827,969-2,200819,148
1,331,567
7,886,274

FY2022
FY2023(as of December 31, 2022) (as of December 31, 2023)(Thousands of yen)(Thousands of yen)
Liabilities
Current liabilities
Accounts payable–operating
Lease obligations
Accounts payable–otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received on uncompleted contracts
Deposits received
Provision for bonuses
Reserve for shareholder benefits
Provision for loss on orders received
Provision for share benefit
Total current liabilities
Noncurrent liabilities
Lease obligations
Provision for share benefit
Provision for retirement benefits
Long-term accounts payable–other
Asset retirement obligations
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

8433,918
32,846
51,798215,092
174,71129,805
195,043
108,262
41,336
17,378
14,796
1,314,989

375,176
31,78950,725
171,252
182,852
115,556
162,428
115,270
42,723
8,789
21,443
15,516
1,293,524

51,445
18,3102,797
6,720
50,325
129,598
1,444,588

26,44022,36950,86999,6791,393,204

1,093,000

1,093,000

2,171,308
702,924
2,874,232

2,171,308
702,924
2,874,232

3,000,000
694,204
3,694,204-1,555,708
6,105,728

3,000,000
980,823
3,980,823-1,541,231
6,406,823

48,007

86,24648,007
6,153,735
7,598,324

86,246
6,493,070
7,886,274

(2)Non-consolidated Statements of Operations
FY2022
FY2023(From January 1, 2022, to (From January 1, 2023, toDecember 31, 2022)
December 31, 2023)(Thousands of yen)(Thousands of yen)
6,486,264
6,633,148
4,369,908
4,429,537
2,116,355
2,203,610
1,376,601
1,430,472
739,754773,138

Net sales of contracts completed
Costs of completed contracts
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Interest on securities
Dividend income
Contribution for secondment employees
Commission fee
Gain on investments in silent partnerships
Gain on valuation of investment securities
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Expenses for securities transactions
Loss on valuation of investment securities
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of provision for construction warranty
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Warranties for completed construction
Loss on valuation of golf club membership
Total extraordinary loss
Profit before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
Profit

9

96
4,250
6,956
2,708
2,430
456
7,658
24,555

84
4,025
7,978
3,044
2,430
412
2,817
1,686
5,845
28,324

2,755
9,103
2,741
1,465
16,065748,244

2,020
11,006650
13,677
787,784

-

635
635

0
64,68064,680683,564
264,309
3,648
267,957
415,606

1,618
800
2,418
786,000
288,061
20,586308,647
477,353

(3)Non-consolidated Statement of Changes in Net Assets
FY2022 (from January 1, 2022, to December 31, 2022)(Thousands of yen)
Shareholders’ equity
Capital surplus

Balance at the beginningof current period
Cumulative effects ofchanges in accounting
policies
Balance at the beginningof current period
reflecting changes inaccounting policies
Changes during the period
Dividends of surplus
ProfitPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end ofcurrent period

Capital
stock

Legal
capitalsurplus1,093,000

2,171,308

1,093,000

Other
capitalsurplus2,171,308

Total capitalsurplus702,924

702,924

2,874,232

2,874,232

Retained earnings
Other retained earnings
Total
Retainedretained
Generalearnings
earnings
reservebrought
forward3,000,000

3,000,000

499,4113,499,411-30,077-30,077

469,334

3,469,334-190,736
415,606-190,736
415,606

-

-

-

-

-

224,870

224,870

1,093,000

2,171,308

702,924

2,874,232

3,000,000

694,204

3,694,20410

Valuation and translation
adjustments
Valuation
Total
Total net assets
Total
difference on
valuation andshareholders’ available-fortranslation
equitysale
adjustments
securities

Shareholders’ equity

Treasurystock
Balance at the beginningof current period
Cumulative effects ofchanges in accounting
policies
Balance at the beginningof current period
reflecting changes inaccounting policies
Changes during the period
Dividends of surplus
ProfitPurchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end ofcurrent period-1,569,735

5,896,907

17,97917,979-30,077-1,569,735

5,914,887-30,077

5,866,830

17,97917,9795,884,810-190,736
415,606-190,736
415,606

-49

-49

-49

14,076

14,076

14,07630,02730,02730,027

14,027

238,897

30,02730,027

268,925-1,555,708

6,105,728

48,00748,007

6,153,735

11

FY2023 (from January 1, 2023, to December 31, 2023)(Thousands of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at the beginning ofcurrent period
Changes during the period
Dividends of surplus
ProfitPurchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total changes during the period
Balance at the end of current
periodOther
capitalsurplus

Legal capitalsurplus1,093,000

Retained earnings
Other retained earnings
Total
Retained
Total capitalretained
Generalearnings
surplusearnings
reservebrought
forward2,171,308

702,924

2,874,232

3,000,000

-

-

-

-

-

1,093,000

2,171,308

702,924

2,874,232

3,000,000

694,204 3,694,204-190,734
477,353-190,734
477,353

286,618

286,618

980,823 3,980,823

Valuation and translation
adjustments
Valuation
Total
Total net assets
Total
difference on
valuation andshareholders’ available-fortranslation
equitysale
adjustments
securities

Shareholders’ equity

Treasurystock
Balance at the beginning ofcurrent period-1,555,708

6,105,728

48,00748,007

6,153,735

Changes during the period
Dividends of surplus-190,734-190,734

Profit477,353477,353--

14,476

14,476

Purchase of treasury stock
Disposal of treasury stock

14,476

Net changes of items otherthan shareholders’ equity
Total changes during the period
Balance at the end of current
period38,23938,23938,23914,476

301,095

38,23938,239339,334-1,541,231

6,406,823

86,24686,246

6,493,070

12

(4)

Non-consolidated Statement of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Reversal of provision for construction warranty
Loss on retirement of property, plant and equipment
Warranties for completed construction
Loss on valuation of golf club membership
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in costs on uncompleted contracts
Increase (decrease) in notes and accounts payable–trade
Increase (decrease) in advances received on uncompleted
contracts
Increase (decrease) in provision for bonuses
Increase (Decrease) in provision for shareholder benefits
Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for share benefit
Increase (decrease) in provision for retirement benefits
Increase (decrease) in prepaid pension expenses
Other

FY2022(From January 1, 2022, toDecember 31, 2022)

FY2023(From January 1, 2023, toDecember 31, 2023)(Thousands of yen)(Thousands of yen)

683,564
109,141
3,120-11,3032,755
064,6802,741-145,065-7,952
193,898

786,000
126,497
14,687-12,088
2,020
-635
1,618
800
-2,817-193,768
7,119-58,741

78,313-32,614

1,199-1,129784-35,881-21,501

1,387
8,789
4,064
4,778
-2,797-16,350
90,399Subtotal

917,364

728,351

Interest and dividends income received
Interest expenses paid
Payment of warranties for completed construction
Income taxes paid

11,303-2,755-4,680-229,508

11,330-2,020-59,364-278,893

Cash flows from operating activities

691,723

399,402-23,491-44,906-200,000--10,460-42,097-200,200
310,000-

5,476-4,210230-4,627

-914
305
1,856

-277,005

63,965-34,502-49-190,736-33,849-190,734-225,288-224,584

416

207

189,845

238,990

Balance of cash and cash equivalents at beginning of the year

2,836,362

3,026,208

Balance of cash and cash equivalents at end of the year

3,026,208

3,265,199

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of investment securities
Proceeds from withdrawal of investments in silent
partnerships
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other
Cash flows from investing activities
Cash flows from financing activities
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

13

(5)

Notes regarding the Non-consolidated Financial Statements(Matters Affecting the Assumption of a Going Concern)
Not applicable.
(Changes in Accounting Policies)(Application of Implementation Guidance on AccountingStandard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the current fiscal year, and decided toapply the new accounting policies provided for by the Implementation Guidance on Accounting Standard for Fair
Value Measurement prospectively in accordance with the transitional treatment specified in Paragraph 27-2 of the
Guidelines for the Application of Accounting Standards for the Calculation of Market Value. The application of thisaccounting standard has no impact on the financial statements.
(Segment Information)[Segment Information]
FY2022 (From January 1, 2022, to December 31, 2022) and FY2023 (From January 1, 2023, to December 31,
2023)
Since the Company’s business operations comprising engineering consulting and related services are
conducted within a single business segment, segment information is omitted.
(Equity Method Profit or Loss)
All affiliated companies owned by the Company are deemed insignificant group companies in terms ofearnings and surplus standards, and therefore their figures are not shown.

14(Per Share Information)
FY2022(From January 1, 2022, toDecember 31, 2022)¥1,047.31¥70.94-

Net assets per share
Profit per share
Diluted profit per share

FY2023(From January 1, 2023, toDecember 31, 2023)¥1,101.67¥81.23-(Note) 1. Diluted profit per share is not presented because there are no dilutive shares.
(Note) 2. The basis for calculating profit per share is as follows:

FY2022(From January 1, 2022, toDecember 31, 2022)

FY2023(From January 1, 2023, toDecember 31, 2023)

415,606

477,353--415,606

477,353

5,858,706

5,876,528

FY2022(as of December 31, 2022)
6,153,735

FY2023(as of December 31, 2023)
6,493,070--

6,153,735

6,493,070

5,875,767

5,893,867

Profit per share
Profit for the period (thousand yen)Amount not attributable to common shareholders(thousand yen)
Profit on common stock (thousand yen)
Average number of common stock outstanding for theperiod (shares)(Note) 3. The basis for calculation of net assets per share is as follows:

Total net assets (thousand yen)Amount to be deducted from total net assets (thousandyen)
Net assets related to common stock at the end of theperiod (thousand yen)
Closing number of common stock used in thecalculation of net assets per share (shares)

The Company’s shares held in trust that are recognized as treasury stock in shareholders’ equity are includedin the treasury stock deducted in the calculation of the average number of shares during the period for calculationof profit per share (101,818 shares as of December 31, 2022; 83,939 shares as of December 31, 2023).
The Company’s shares held in trust that are recognized as treasury stock within shareholders’ equity areincluded in the treasury stock deducted from the number of shares outstanding at end of the period, used for
calculating “net assets per share” (84,700 shares as of December 31, 2022; 66,600 shares as of December 31,2023).
(Significant Subsequent Events)
Not applicable.

15