Financial Report
Year ended June 30, 2023

Company Profile

Nippon Koei Co., Ltd. is Japan’s leading engineering consultant. In terms ofhuman resources, we have the largest number of engineers and specialists in
the industry capable of solving the most sophisticated and complex issues
which nations face. Our business activities cover three segments: Consulting
Business, Urban & Spatial Development Business, and Energy Business.
Nippon Koei Co., Ltd. and its subsidiaries transitioned to a holding company
structure on July 3, 2023. The holding company is responsible for formulating
overall group strategy and governance, while each group company pursues its
business in an autonomous and dynamic fashion, making the organization
capable of quickly responding to various changes and demands.

Contents
Financial Highlights .................................................................................................................1
Financial Information ..............................................................................................................2
Consolidated Financial Statements and Others .....................................................................3
I. Consolidated Financial Statements ........................................................................................3
Consolidated Statement of Financial Position ......................................................................3
Consolidated Statement of Profit or Loss andConsolidated Statement of Comprehensive Income ..........................5
Consolidated Statement of Changes in Equity ......................................................................7
Consolidated Statement of Cash Flows .................................................................................9
Notes to Consolidated Financial Statements ......................................................................11
II. Others.....................................................................................................................................76
Independent auditor’s report ................................................................................................77
Nonconsolidated Financial Statements ................................................................................83
Nonconsolidated Balance Sheet............................................................................................83
Nonconsolidated Statement of Income................................................................................85
Nonconsolidated Statement of Cost of Sales.......................................................................86
Nonconsolidated Statement of Changes in Net Assets........................................................87
Notes to Nonconsolidated Financial Statements.................................................................89
Attachments to Nonconsolidated Financial Statements.....................................................99
Independent auditor’s report...............................................................................................102

Fi n a n c i al H i ghl i ghts
Consolidated
Thousands of
U.S. Dollars

Millions of Yen

Revenue
Profit attributable to owner of parent

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥141,527¥130,674$977,571

3,093

6,579

21,366

Yen

U.S. Dollars

Earning per share:
Basic earnings per share¥205.34¥436.98$1.42

Diluted earnings per share

205.34436.98

1.42
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

Total assets¥195,391¥173,926$1,349,622

Total equity

83,784

81,969578,719

Nonconsolidated
Thousands of
U.S. Dollars

Millions of Yen

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

Net sales¥85,728¥80,796$592,151

Net profit

7,538

5,236

52,069Yen

Basic earnings per share

U.S.Dollars¥500.41¥347.81$3.46
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

Total assets¥131,999¥120,878$911,756

Net assets

64,76759,280447,364(Notes) 1.	In Japan, a company can establish its fiscal year in accordance with the Companies Act and other related
laws and regulations. By resolution of the 68th General Shareholders’ Meeting held on June 27, 2013, thefiscal year of Nippon Koei Co., Ltd., has been established as July 1 to June 30.
2.	The Group has applied International Financial Reporting Standards (IFRS) from the year-end of fiscal year
ended June 30, 2021.
3.	The U.S. dollars amounts in this report represent translations of Japanese yen, for convenience only, at therate of ¥144.775 to $1, the approximate rate of exchange as of June 30, 2023.
4.	Per share amounts are based on the weighted average number of shares outstanding during each year.

1

Fi n a n c i al Informati on
1.	Basis of Presentation for the Consolidated and Nonconsolidated
Financial Statements(1)	The Company’s consolidated financial statements are prepared in accordance with the International Financial
Reporting Standards as issued by the International Accounting Standards Board (hereinafter referred to as the“IFRS”) pursuant to the provisions of Article 93 of the “Ordinance on Terminology, Forms, and Preparation
Methods of Consolidated Financial Statements” (Ordinance of the Ministry of Finance No. 28, 1976).
(2)	T he Company’s nonconsolidated financial statements are prepared based on the “Ordinance on the
Terminology, Forms, and Preparation Methods of Financial Statements, etc.” (Ordinance of the Ministry of
Finance No. 59, 1963; hereinafter referred to as the “Regulations on Financial Statements.”).
	Moreover, the Company is classified under a provision for a special company submitting financial statements,
and prepares nonconsolidated financial statements, pursuant to the provisions of Article 127 of theRegulations on Financial Statements.

2.	Audit Certification
The Company has undergone an audit by PricewaterhouseCoopers Aarata LLC on the consolidated financial
statements for the consolidated fiscal year (from July 1, 2022 to June 30, 2023) and nonconsolidated financial
statements for the business year (from July 1, 2022 to June 30, 2023) in accordance with the provisions of Article
193-2, paragraph (1) of the Financial Instruments and Exchange Act.

3.	Special Efforts for Ensuring Appropriateness of Consolidated Financial
Statements and the Establishment of a System to Appropriately Prepare
Consolidated Financial Statements in Accordance with IFRSThe Company makes special efforts to ensure appropriateness of consolidated financial statements and theestablishment of a system to appropriately prepare consolidated financial statements in accordance with IFRS.
The details are as follows:(1)	The Company is a member of the Financial Accounting Standards Foundation and participates in seminars
held by the Foundation or the audit firm in order to appropriately grasp the details of accounting standards orto establish a system capable of accurately responding to changes in accounting standards.
(2)	Regarding the application of the IFRS, the Company reviews press releases and standards published by theInternational Accounting Standards Board as necessary to understand and apply the standards completely andappropriately. Moreover, the Company establishes group accounting policies in accordance with the IFRS andhas arranged its processes and controls based on accounting for those standards in order to prepare
consolidated financial statements in accordance with IFRS.

2

Co n s o l idated F i nanci a l S t a t em ent s a n d Ot h er s
I . C o n s o l i dated F i nanc ia l S t a t em ent s
C o n s o l i date d Statement o f F ina n c ia l P o sit io n
Nippon Koei Co., Ltd.
June 30, 2023

Thousands of
U.S. Dollars (Note 2)

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥31,679
26,81232,146
2,780
5,728
99,147¥17,971
27,042
26,4503,779
8,290
83,535$218,816
185,200
222,044
19,206
39,567684,835

12, 1512, 1913, 1513
14

52,718
10,140
7,327
7,544
5,230

41,403
9,067
10,2077,025
6,250

364,141
70,04250,615
52,10936,1316, 16
22
10, 35
17
11

1,830
3,072
5,106
2,667
606
96,244

2,434
3,624
6,423
2,429
1,523
90,39012,641
21,22335,26818,422
4,188
664,786¥195,391¥173,926$1,349,622

Assets

Notes

Current assets:
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Total current assets

8
9, 27, 35
27
10, 3511

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

3

Thousands of
U.S. Dollars (Note 2)

Millions of Yen

6

Liabilities and equity
Liabilities:
Current liabilities:
Borrowings
Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities:
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Equity:Share capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥28,716
2,795
15,177
10,663
3,439
1,729
1,197
14,235
77,955¥13,148
2,729
10,400
8,837
4,561
2,551
653
12,95755,840$198,349
19,307
104,836
73,65723,757
11,946
8,270
98,330538,457

18, 3519, 3521, 3522
23
17
24

17,385
7,753
682
3,566
94
3,961
208
33,652
111,607

19,288
6,556
665
3,896
674
4,683
351
36,116
91,956

120,084
53,556
4,713
24,633653
27,3591,442
232,444
770,902

25
25
25

7,517
6,470
—
6,478
60,407

7,501
6,454
(34)
5,252
58,91451,922
44,693—44,750417,248

80,873
2,910
83,784¥195,391

78,0883,881
81,969¥173,926

558,614
20,105
578,719$1,349,622

Notes

18, 3519, 3520, 3527
21, 35
23
24

25

4

Consolidated Statement of Profit or Loss andConsolidated Statement of Comprehensive Income
Nippon Koei Co., Ltd.
Year ended June 30, 2023

(Consolidated Statement of Profit or Loss)(Consolidated Statement of Comprehensive Income)Thousands of
U.S. Dollars (Note 2)

Millions of Yen

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥141,527(99,181)
42,346¥130,674(89,975)
40,699$977,571(685,074)
292,49628(34,611)(31,610)(239,072)6, 16
29
15, 296
6, 10, 30
6, 30
6
17

97
3,677
(5,428)
6,080
1,074
(781)
6,373
(2,435)
3,937

230
1,090
(1,344)
9,065
2,218
(483)
10,800(4,095)
6,704

672
25,400(37,494)
42,002
7,420(5,398)44,023(16,823)
27,1993,093
844¥3,9376,579
125¥6,704

21,366
5,832$27,199

Notes
Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Share of profit of investments accounted
for using equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before tax
Income tax expense
Profit6, 27
28Profit attributable to:
Owners of parent
Non-controlling interests
ProfitYen

Earnings per share:
Basic earnings per share
Diluted earnings per share

5

32¥205.34205.34

U.S. Dollars (Note 2)¥436.98436.98$1.42
1.42

Thousands of
U.S. Dollars (Note 2)

Millions of Yen

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥3,937¥6,704$27,199

31, 3522, 31

424
(333)

(196)
(547)

2,933
(2,306)16, 31

1

(1)

9

92

(745)

637

31

6

6

41

31

1,392

2,757

9,621

72

77

503

1,471
1,564
¥5,501

2,841
2,096¥8,801

10,166
10,803$38,003¥4,611890¥5,501¥8,479321¥8,801$31,851
6,152$38,003

Notes
ProfitOther comprehensive income:Items that will not be reclassified to profit or loss:
Equity financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified
to profit or loss
Items that may be reclassified to profit or loss:
Cash flow hedges
Exchange differences on translationof foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified
to profit or loss
Other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income

16, 31

6

C o n s o l i date d Statement o f Cha n g es in E quit y
Nippon Koei Co., Ltd.
Year ended June 30, 2023

Millions of Yen
Equity attributable to owners of parent

Share capital

Capital surplus

Treasury shares¥7,480
—
—
—
21
—
—
—
—
—
—
—
21
¥7,501
—
—
—
15
—
—
—
—
—
—
—
15
¥7,517¥6,428
—
—
—
21
—
—
—
—
—
5
—
26
¥6,454
—
—
—
15
—
—
—
—
—
—
—
15
¥6,470

¥(0)
—
—
—
—
—
(34)
—
—
—
—
—
(34)
¥(34)
—
—
—
—
—
(3)
28
9
—
—
—
34
¥—

Notes

Balance as of July 1, 2021
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2022
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2023

25
25
25
26

25
25
25
26

Exchangedifferences ontranslation offoreign
operations¥1,982
—
2,638
2,638
—
—
—
—
—
—
(1)
—
(1)
¥4,620
—
1,419
1,419
—
—
—
—
—
—
(0)
—
(0)
¥6,039Other components of equity
Equity financial assets
measured at fair value Remeasurements
Cash flowof defined
through otherhedgesbenefit planscomprehensive
income

¥(30)
—
6
6
—
—
—
—
—
—
—
—
—
¥(24)
—
6
6
—
—
—
—
—
—
—
—
—
¥(18)

¥867
—
(195)
(195)
—
—
—
—
—
—
—
(15)
(15)
¥656
—
424
424
—
—
—
—
—
—
—
(623)
(623)
¥457

¥—
—
(548)
(548)
—
—
—
—
—
—
—
548
548
¥—
—
(332)
(332)
—
—
—
—
—
—
—
332
332
¥—

Total

¥2,820
—
1,900
1,900
—
—
—
—
—
—
(1)
533
531
¥5,252
—
1,517
1,517
—
—
—
—
—
—
(0)
(291)
(291)
¥6,478Retainedearnings¥53,996
6,579
—
6,579
—
—
—
—
—
(1,128)—(533)(1,661)¥58,914
3,093
—
3,093
—
—
—
—
(9)
(1,882)—291(1,600)¥60,407

Total¥70,725
6,579
1,900
8,479
42
—
(34)
—
—
(1,128)
3—(1,116)¥78,088
3,093
1,517
4,611
31
—
(3)
28
—
(1,882)(0)—(1,826)¥80,873

Non-controllinginterests¥1,569
125
195
321
—
—
—
—
—
(15)
2,005
—
1,990
¥3,881844
46890—(1,933)
—
—
—
(67)
139
—
(1,861)¥2,910Total¥72,294
6,704
2,096
8,801
42
—
(34)
—
—
(1,143)
2,009—
873¥81,969
3,937
1,564
5,501
31
(1,933)(3)
28—(1,949)139—(3,687)¥83,784

Thousands of U.S. Dollars (Note 2)

Equity attributable to owners of parent

Share capital

Capital surplus

Treasury shares$51,815
—
—
—
107
—
—
—
—
—
—
—
107
$51,922$44,585
—
—
—
107
—
—
—
—
—
—
—
107
$44,693$(238)
—
—
—
—
—
(23)
197
64
—
—
—
238
$—

Notes

Balance as of June 30, 2022
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2023
7

25
25
25
26

Exchangedifferences ontranslation offoreign
operations$31,912
—
9,802
9,802
—
—
—
—
—
—
(0)
—
(0)
$41,714

Other components of equity
Equity financial assets
measured at fair value Remeasurements
Cash flowof defined
through otherhedgesbenefit planscomprehensive
income$(167)
—
41
41
—
—
—
—
—
—
—
—
—
$(125)$4,531
—
2,933
2,933
—
—
—
—
—
—
—
(4,303)(4,303)$3,161$——(2,293)(2,293)
—
—
—
—
—
—
—
2,293
2,293
$—

Total

$36,277—
10,484
10,484
—
—
—
—
—
—
(0)
(2,010)(2,011)$44,750

Retainedearnings$406,937
21,366—
21,366————(64)(13,001)—2,010(11,055)$417,248

Total$539,377
21,366
10,48431,851
214
—
(23)
197
—
(13,001)——(12,613)$558,614

Non-controllinginterests$26,807
5,832
319
6,152
—
(13,352)
—
—
—
(467)
965
—
(12,854)$20,105

Total$566,184
27,19910,80338,003
214(13,352)(23)
197—(13,468)964—(25,468)$578,719

8C o n s o l i date d Statement o f Ca sh F lo w s
Nippon Koei Co., Ltd.
Year ended June 30, 2023

Thousands of
U.S. Dollars (Note 2)

Millions of Yen

Cash flows from operating activities:
Profit before tax
Depreciation and amortization
Impairment losses
Gain on sale of shares of subsidiaries andassociates
Interest and dividend income
Interest expenses
Share of loss (profit) of investments
accounted for using equity method
Loss (gain) on derivatives
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in consumption taxes payable
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Increase (decrease) in provisions
Other
Sub total
Dividends received
Interest received
Proceeds from insurance income
Interest paid
Income taxes paid
Net cash provided by (used in)operating activities

Year ended
Notes June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥6,373
5,305
3,943¥10,800
4,976
281$44,023
36,64327,240(1,061)
(495)
658

—
(513)
483

(7,328)(3,425)
4,547

(97)
(274)
1,000
(5,305)
1,459
502
876
(1,157)
115
(64)
601
12,382(230)(979)(4,581)(1,837)1,002(2,463)(1,596)
1,519
1,162
147
(8)
8,161

(672)
(1,892)
6,912(36,647)
10,081
3,473
6,055(7,992)
800
(442)
4,154
85,530

266
731
100
(729)
(4,405)

178
356
—
(410)
(3,466)

1,840
5,052
690
(5,040)(30,427)

8,345

4,820

57,64629

Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment,
and investment property
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale and redemption ofother financial assets
Proceeds from sale of investments inassociates
Purchase of investments in associates
Collection of loans receivable
Other
Net cash provided by (used in)investing activities

Year ended
Notes June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

(45)
27

(235)
—

(317)
191

(5,522)
(254)
(359)

(5,557)
(296)
(622)

(38,147)(1,760)(2,482)

1,859

137

12,844

1,723
(851)
558
6

—
(261)
—
(112)

11,904(5,883)3,855
42(2,859)(6,949)(19,752)

503,049(488,543)
4,149(5,448)(3,173)139(1,899)25

265,500(258,035)
4,985(8,331)(3,050)2,041(1,148)(67)

3,474,699(3,374,502)
28,659(37,633)(21,917)965(13,123)
174

8,298

1,892

57,32013,784(235)

95,213

17,971

17,838124,137

(77)

369

(534)

¥31,679¥17,971$218,816

33

Cash flows from financing activities:
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Capital contribution from non-controlling interests
Dividends paid
Other
Net cash provided by (used in)financing activities

33
33
33
33
33
26

Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at beginningof period

8

Effect of exchange rate changes on cash
and cash equivalents
Cash and cash equivalents at end of period

9

Thousands of
U.S. Dollars (Note 2)

Millions of Yen

810

N o t e s t o C onsol i date d F ina n c ia l St a t em en t s
Nippon Koei Co., Ltd.
Year ended June 30, 2023

1.	Reporting Entity
Nippon Koei Co., Ltd. (hereinafter referred to as the “Company”) is a stock company located in Japan. Addressesof the registered head office and major offices are disclosed on the Company website (https://www.n-koei.co.jp/
consulting/english/). The Company’s consolidated financial statements consist of accounts of the Company and its
subsidiaries (hereinafter referred to as the “Group”), as well as the Group’s interests in its associates and joint
ventures. The Group’s fiscal year end is June 30, 2023.
The Group’s businesses are Consulting, Urban & Spatial Development, and Energy. Details of each business aredescribed in note “6. Segment Information.”

2. Basis of Preparation(1) In Accordance with IFRSThe consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as published by the International Accounting Standards Board pursuant to theprovision of Article 93 of the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements (Ordinance of the Ministry of Finance No. 28 of 1976) as all the requirements of the“Specified Company for Designated IFRSs” set forth in Article 1-2 of said Ordinance have been fulfilled.
The consolidated financial statements were approved by Haruhiko Kanai, Representative Director andPresident, on September 28, 2023.
(2) Basis of Measurements
As described in note “3. Significant Accounting Policies,” the Group’s consolidated financial statements areprepared based on the historical cost, excluding certain financial instruments which are measured at fairvalue.
(3) Functional Currency and Presentation Currency
The financial statements of Group companies are prepared using their respective functional currency. While
Group companies mainly use the local currency as their functional currency, the companies designate
another currency as the functional currency if the currency for the main economic environment in which
they engage in business activities differs from the local currency.
The Group’s consolidated financial statements are reported in Japanese yen in units of one million yen.
Fractions less than one million yen are rounded down.
The translations of Japanese yen amounts into U.S. dollars amounts are included solely for the convenienceof readers outside Japan and have been made at the rate of ¥144.775 to $1, the approximate rate of exchange
on June 30, 2023.
Such translations should not be construed as representations that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.

3. Significant Accounting Policies
For the significant accounting policies applied to consolidated financial statements, the same accounting
policies are applied to all the periods described in the consolidated financial statements, unless otherwise noted.
(1) Basis of Consolidationa. Subsidiaries
Subsidiaries refer to companies that are controlled by the Group. The Group is deemed to control thecompany when it is exposed, or has rights, to variable returns from its involvement with the company andhas the ability to affect those returns through its power over the company.
Financial statements of subsidiaries are accounted for on a consolidated basis from the date when theGroup obtains control to the date when it loses control.
If the accounting policies applied to a subsidiary differ from those applied to the Group, adjustments are
made to the financial statements of the subsidiary as necessary. Intra-Group balances of receivables/
liabilities and internal transactions, as well as unrealized gains and losses arising from intra-Grouptransactions are eliminated when preparing consolidated financial statements.
Comprehensive income of subsidiaries is recorded in profit attributable to owners of parent and noncontrolling interests, even if non-controlling interests become a negative balance.

11

If control continues when partly disposing of subsidiary interests, it is accounted for as an equity
transaction. The difference between the adjusted amount of non-controlling interests and the fair value ofthe consideration is directly recognized in equity as equity attributable to owners of parent.
When control is lost, a gain or loss arising from the loss of control is recognized as a profit or loss in thecurrent period.
The closing date of some subsidiaries differs from that of the Group. For subsidiaries with a different
closing date, the accounts are settled provisionally as of the closing date of the Group.
b. Associates
Associates refer to companies that the Group does not control nor jointly control, while it has significant
influence over their finance and business policies. If the Group has voting rights greater than 20% but
less than 50%, the Group is presumed to have significant influence over such other companies.
Associates are accounted for under the equity method, from the date when the Group obtains significant
influence until the date when it loses significant influence. Investments in associates include goodwill
recognized at the time of acquisition (after deducting the accumulated amount of impairment losses).
If the accounting policies applied to an associate differ from those applied to the Group, adjustments are
made to the results of the associate used in the equity method accounting as necessary.
The closing date of some associates differs from that of the Group. For associates with a different closing
date, the accounts are settled provisionally as of the closing date of the Group.
c. Joint Ventures
Joint ventures refer to companies whose contractually-agreed control over economic activities is sharedby multiple parties including the Group, and which require the agreement of all parties sharing control
when making strategic decisions on finance and businesses related to their activities.
The joint ventures under the Group are accounted for using the equity method.
(2) Business Combinations
Business combinations are accounted for using the acquisition method. The consideration for acquisition ismeasured as the total of the assets transferred in exchange for the control of the acquiree, the liabilities
incurred by the Company to former owners of the acquiree, and the fair value of equity instruments issued
by the Company on the acquisition date. If the consideration for acquisition exceeds the fair value ofidentifiable assets and liabilities, it is recorded as goodwill in the consolidated statement of financial
position. Conversely, if it falls short, it is recorded as profit or loss in the consolidated statement of profit orloss.
We determine on an acquisition-by-acquisition basis whether to accounted for non-controlling interests atfair value or by the proportionate share of the recognized amount of identifiable assets if non-controllinginterests in the acquired business exist.
Transaction costs that are incurred in relation to business combinations, including brokerage fees, legal
fees, and due diligence expenses, are expensed as they are incurred.
If the initial accounting of a business combination is not completed by the end of the consolidated fiscal
year when the business combination has occurred, accounts are reported provisionally. If the facts andcircumstances that existed as of the acquisition date are obtained during the period that was deemed tohave affected the measurement of the recognized amount (hereinafter referred to as the “Measurement
Period”) if grasped initially on the acquisition date, the provisional amount recognized on the acquisition
date is retroactively corrected by reflecting such information. If newly obtained information brings newrecognition of assets and liabilities, additional assets and liabilities are recognized. The Measurement
Period is one year at the longest.
Since additional acquisitions of non-controlling interests after obtaining control are accounted for as equity
transactions, goodwill is not recognized from such transactions.
Acquiree’s identifiable assets and liabilities are measured at fair value on the acquisition date, except for thefollowing:- D eferred tax assets and liabilities as well as assets and liabilities related to employee benefit
arrangements;- Acquiree’s share-based payment agreements; and- Assets or disposal groups classified as held for sale in accordance with IFRS 5 “Non-current Assets Heldfor Sale and Discontinued Operations.”
Interests in the acquiree held by the Group previous to the step transaction when control is obtained areremeasured at fair value on the date when control is obtained, while a gain or loss incurred is recognized as
profit or loss.

12(3) Foreign Currency Translationa. Functional Currency and Presentation Currency
The consolidated financial statements of the Group are prepared using the yen, the functional currency of
the Company. Moreover, individual companies in the Group determine functional currencies based on the
primary currency in which operations occur, by which transactions of individual companies aremeasured.
b. Translation of Foreign Currency Transactions
Transactions in foreign currency are translated into the functional currency, by the spot exchange rate on
the transaction date or an approximate rate to it.
Monetary assets and liabilities in foreign currency are translated into the functional currency by the spot
exchange rate on the consolidated closing date. Exchange differences arising from such translation andclosing of accounts are recognized as profit or loss. However, financial assets measured through othercomprehensive income and exchange differences arising from cash flow hedges are recognized as othercomprehensive income.
c. Translation of Foreign Operations
Assets and liabilities of foreign operations are translated into yen based on the spot rate as of the closing
date, and income and expenses are by the spot rate on the transaction date or an approximate rate to it,
and their exchange differences are recognized in other comprehensive income.
If a foreign operation is disposed of, this accumulated translation difference is recognized as a profit orloss during the period when the disposition occurs.
(4) Financial Instruments
a. Financial Assets(i) Initial Recognition and Measurement
The Group measures changes in certain financial assets at fair value and accounts for those changes
in profit or loss. Other financial assets are measured at amortized cost and changes are recognized inother comprehensive income. This classification is determined at the time of initial recognition.
The Group recognizes financial instruments on the transaction date when it becomes a party to anagreement for the financial assets.
Financial assets are measured at amortized cost if they meet both of the following requirements:- The financial asset is held within a business model whose objective is to hold financial assets inorder to collect contractual cash flows; and- The contractual terms of the financial asset give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.
Financial assets, other than those measured at amortized cost, are classified as financial assets which
are measured at fair value.
For investments in some equity instruments, the Group has made an irrevocable choice to recognize
fluctuations in the fair value not as profit or loss but through other comprehensive income.
All financial assets are measured at fair value plus transaction costs, except for those classified into
the categories that are measured at fair value through profit or loss.
(ii) Subsequent Measurement
Measurement after the initial recognition of financial assets is conducted as follows according totheir classification:(a) Financial Assets Measured at Amortized Cost
Financial assets measured at amortized cost are measured at amortized cost by the effective
interest method.
Gain and loss in the case of amortization by the effective interest method and derecognition arerecognized as profit or loss.
(b) Financial Assets Measured at Fair Value
Financial assets measured at fair value are in principle measured at fair value through profit or loss.
However, for those designated as measured at fair value through other comprehensive income
among equity financial assets, fluctuations in the fair value are recognized as othercomprehensive income. When an investment is disposed of, the accumulated amount of gains orlosses recognized through other comprehensive income is transferred from “Other components ofequity” to “Retained earnings.”
Dividends are recognized as profit.

13

(iii) Derecognition of Financial Assets
The Group derecognizes financial assets if the contractual right to cash flows from financial assets
expire, or the Group transfers substantially all the risks and rewards of ownership of the financial
assets when transferring financial assets. If the Group retains control of the transferred financial
assets, we recognize assets and related liabilities to the extent of its continuing involvement in thefinancial assets.
(iv) Impairment of Financial Assets
For financial assets measured at amortized cost, an allowance is recognized for the expected credit
losses.
The Group evaluates at every end of the period whether the credit risk of each financial asset has
significantly increased since the time of initial recognition, and if credit risk has not significantly
increased since the time of initial recognition, we recognize the expected credit losses arising frompossible events of default within 12 months from the end of the period as allowance for expectedcredit losses. On the other hand, if credit risk has significantly increased since the time of initialrecognition, we recognize the amount equivalent to the lifetime expected credit losses as allowancefor expected credit losses.
When evaluating whether credit risk has significantly increased, we consider information that isreasonably available and can be supported (such as internal or external ratings), in addition to pastdue information.
The Group also ensures that no lifetime expected credit losses need to be recognized if the credit riskof financial assets was deemed to be low at the end of the period.
However, for trade receivables and contract assets, the amount equivalent to the lifetime expectedcredit losses is always recognized as an allowance for expected credit losses, regardless of whether
credit risk has significantly increased since the time of initial recognition or not.
Expected credit losses are measured as the present value of the difference between all contractual
cash flows to be paid to the Group in accordance with the contract and all cash flows expected to bereceived by the Group.
The Group estimates the expected credit losses of financial assets by a method that reflects thefollowing:- A n unbiased and probability-weighted amount that is determined by evaluating a range ofpossible outcomes;- Time value of money;- I nformation on past events, present circumstances, and forecasts of future economic
circumstances that are available and reasonable, and can be supported without excess costs andlabor at the end of the period.
If affected by a material economic change, we will make necessary judgmental adjustments to the
expected credit losses measured in the above calculation.
If there is no reasonable forecast to recover all or part of a financial asset, the Group will directly
decrease the book value for the total amount of financial assets.
Allowance for expected credit losses is recognized as profit or loss. If there is an event to decrease
allowance for expected credit losses, a reversal of allowance for expected credit losses is recognizedas profit or loss.
b. Financial Liabilities(i) Initial Recognition and Measurement
The Group classifies financial liabilities either as financial liabilities measured at fair value throughprofit or loss, or those measured at amortized cost. This classification is determined at the time ofinitial recognition.
The Group recognizes financial instruments on the transaction date when it becomes a party to anagreement for the financial liabilities.
All financial liabilities are measured at the amount of fair value without transaction costs, except for
those classified into categories that are measured at fair value through profit or loss.
(ii) Subsequent Measurement
Measurement after the initial recognition of financial liabilities is conducted as follows according totheir classification:(a) Financial Liabilities Measured at Fair Value through Profit or Loss
Financial liabilities measured at fair value through profit or loss are measured at fair value after
the initial recognition, with its fluctuation recognized as profit or loss.

14

(b) Financial Liabilities Measured at Amortized Cost
Financial liabilities measured at amortized cost are measured at amortized cost by the effective
interest method.
Gain and loss in the case of amortization by the effective interest method and derecognition arerecognized as profit or loss.
(iii) Derecognition of Financial Liabilities
The Group derecognizes financial liabilities when only it is extinguished, i.e., when the obligation
specified in the contract is discharged or cancelled or expires.
c. Presentation of Financial Assets and Liabilities
Financial assets and liabilities are offset and the net amount presented in the consolidated statement offinancial position, only when the Group has the legal right to set off balances, and intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously.
d. Derivatives
The Group uses derivatives including interest rate and currency swap agreements in order to hedge
foreign currency exchange risk and interest rate risk, respectively. These derivatives are initiallyrecognized at fair value and are remeasured at each reporting period. Changes in the fair value ofderivatives are recognized as profit or loss in the consolidated statement of profit or loss.
(5) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on-hand, deposits that can be withdrawn at any time, and shortterm investments with contractual settlement dates within three months from the initial transaction date,
which are readily convertible to the amount and which bear minimal risk of change in value.
(6) Property, Plant and Equipment
Property, plant and equipment is accounted for at acquisition cost less accumulated depreciation andimpairment.
Acquisition cost includes expenses directly related to the acquisition of assets, expenses for demolition,
removal and restoration costs of land, and capitalizable borrowing costs.
Depreciation for land and assets other than construction in progress is recorded by the straight-line method
over their respective estimated useful life. The estimated useful lives for each major asset class are as follows:- Buildings and structures: 2–50 years- Machinery, equipment, and vehicles: 2–20 years- Tools, furniture, and fixtures: 2–20 years
The estimated useful life, residual value, and depreciation method are reviewed at the end of each fiscal
year, and if there are changes, they will be applied as changes in accounting estimates prospectively.
(7) Goodwill
Goodwill is presented in the consolidated statement of financial position based on initial recognition lessaccumulated impairment losses.
The measurement of goodwill at the time of initial recognition is described in “(2) Business Combinations.”
Goodwill is not amortized, but undergoes an impairment test every period and more often when there areindications of impairment.
Impairment losses are recognized in the consolidated statement of profit or loss, and are not subject toreversal.
(8) Intangible Assets
For individually acquired intangible assets, they are recorded at the acquisition cost at the time of initialrecognition.
Except for those with indefinite useful lives and those which are not in the condition necessary for it to becapable of operating, intangible assets other than goodwill are amortized by the straight-line method overtheir respective estimated useful life, and presented as the acquisition cost less the accumulated
amortization and impairment.
The estimated useful life, residual value, and amortization method are reviewed at the end of each fiscal
year, and if there are changes, they will be applied as changes in accounting estimates prospectively.
For intangible assets with indefinite useful lives and those not yet available for use, they are not amortized
but undergo an impairment test individually or by cash generating unit in every period and more often
when there is an indicator of impairment.

15

Intangible assets with indefinite useful lives are measured at the acquisition cost less accumulated
impairment losses.
(9) Investment Property
Investment property is the property held with intentions to generate leasing revenue or capital gains, orboth. Investment property, which is presented as the acquisition cost less accumulated depreciation andimpairment.
Depreciation for assets other than land is calculated by the straight-line method over their respective
estimated useful life (2–50 years). Land is not subject to depreciation.
The estimated useful life, residual value, and depreciation method are reviewed at the end of each fiscal
year, and if there are changes, they will be applied as changes in accounting estimates prospectively.
(10) Leases
a. Lessee
It is determined based on the substance of an agreement, even if it is not in the form of a lease legally,
whether the agreement is a lease or not, or whether the agreement includes a lease. If an agreementtransfers the right to control the use of a specified asset in exchange for consideration for a certain periodof time, the transaction is deemed to be a lease.
The Group has chosen not to distinguish the non-lease component from the lease component to accountfor them as a single lease component.
Lease liabilities in lease transactions are measured at the discounted present value by discounting theunsettled amount of the total lease payments on the lease commencement date, using the interest rate
implicit in the lease or the lessee’s incremental borrowing rate of interest. The total lease payments
include the following:- Amounts of fixed lease payments less lease incentives receivable;- Amounts of variable lease payments that depend on an index or a rate;- Amounts expected to be payable by the lessee under residual value guarantees;- Exercise price of a purchase option if the lessee is reasonably certain that to exercise that option; and- Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an
option to terminate the lease.
Right-of-use assets are initially measured at the amount of the initial measurement of lease liabilities byadjusting initial direct costs and prepaid lease payments, and adding the costs for restoration obligations
based on lease agreements.
Right-of-use assets are depreciated over the shorter of either the useful life of the right-of-use assets or
the lease period.
Lease payments are apportioned between a finance charge and a reduction of the outstanding obligation
for future amounts payable to produce a constant periodic rate of interest on the remaining balance ofthe lease liability. Finance charges are presented separately from depreciation for the right-of-use assets
in the consolidated statement of profit or loss.
Lease liabilities are remeasured when there are changes in the likelihood that the lease will be terminatedof exercising the extension or termination option. When lease liabilities are remeasured, theremeasurement is recognized as an adjustment to right-of-use assets. However, if the decreased amountof liabilities by the remeasurement is greater than the book value of right-of-use assets, the amount after
reducing the amount of right-of-use assets to zero is recognized as profit or loss.
For leases where the lease period is completed within 12 months or those with an immaterial value of
underlying assets, lease payments related to the leases are recognized as expenses over the lease period
either by the straight-line method or other regular basis.
b. Lessor
Leases for which the Group does not transfer substantially all the risks and rewards of ownership of anasset are classified as operating leases. For operating lease transactions, target assets are recorded in the
consolidated statement of financial position, while lease payments received are recognized as revenue inthe consolidated statement of profit or loss under the straight-line method over the lease period,
including any free rent period.

16

(11) Impairment of Non-Financial Assets
For the Company’s non-financial assets, excluding deferred tax assets, the Group determines whether there
is an indicator of impairment. When there is an indicator of impairment, the recoverable amount of therelated assets is estimated. Goodwill, intangible assets with indefinite useful lives, and those not yet
available for use are tested for impairment annually, regardless of whether there is an indicator of
impairment.
The recoverable amount of assets or cash generating unit is the larger of the value in use or the fair valueless costs to sell. In calculating value in use, the estimated future cash flows are discounted to the present
value using the time value of money and the pretax discount rate reflecting risks unique to the assets. Assetsthat are not individually tested in an impairment test are tested as part of cash generating units which,through continued use, generates largely cash flows which are largely independent of other assets or asset
groups. Goodwill is allocated to the cash generating unit that is expected to have synergies arising from thebusiness combination. Goodwill is tested for impairment at the cash generating unit level.
Corporate assets of the Group do not generate independent cash inflows. When there is an indicator of
impairment for corporate assets, the recoverable amount of the cash generating unit to which corporate
assets belong is estimated.
An impairment loss is recognized as profit or loss when the book value of assets or cash generating unit
exceeds the estimated recoverable amount. The impairment loss recognized in relation to a cash generating
unit first reduces the book value of goodwill which is allocated to the unit, and then, if goodwill is written
off entirely, reduces the book value of other assets in the cash generating unit proportionally.
Goodwill-related impairment loss is not reversed. For other assets, any impairment loss recognized in thepast is evaluated as to whether there are impairment indicators during each reporting period. Impairment
loss is reversed when there is a change in the estimate used for deciding the recoverable amount.
Impairment loss is reversed to the extent of book value after deducting depreciation and amortization fromthe book value as if there had been no impairment loss.
(12) Employee Benefits
a. Short-term Employee Benefits
Short-term employee benefits are recorded as expenses without discounting when a related service isprovided. For bonuses and paid leave expenses, there are legal or constructive liabilities to pay them, andwhen reliable estimates are possible, the amounts estimated to be paid based on such programs arerecognized as liabilities.
b. Post-Employment Benefits
The Group has established a defined benefit corporate pension plan and a lump sum retirement payment
plan as employees’ retirement benefit plans.
The Group calculates the present value of the defined benefit plan liabilities, and related current and past
service costs, using the projected unit credit method.
Discount rates are calculated based on market yields on prime corporate bonds at the end of the period
corresponding to the period of the estimated date of benefit payments for every future fiscal year.
Liabilities or assets for the defined benefit plans are calculated by deducting the fair value of plan assets
from the present value of the defined benefit plan liabilities. However, if the defined benefit plan is morethan fully funded, the net amount of defined benefit assets is recorded up to the present value of
economic benefits available in the form of refunds from the plan or reductions in future contributions to
the plan. Moreover, the amount of net interest on the net defined benefit liability (asset) is recognized as
operating expense (Cost of sales, Selling, general and administrative expenses) in profit or loss.
The remeasured amounts of the defined benefit plan are recognized collectively as other comprehensive
income in the accrual period, to be immediately transferred from “Other components of equity” to“Retained earnings.”
Past service cost is accounted for as profit or loss in the accrual period.
The Group’s parent company entity and its domestic subsidiaries are members of the Engineering
Consultants Company Pension Fund (multi-companies fund) as a defined benefit plan. Since it is a planthat cannot reasonably calculate the amount of pension assets corresponding to any single participant’s
contributions, as with the defined contribution plan, the amount to be paid in exchange of services
provided by employees to companies in the corresponding period is recognized as an expense.
The Group makes contributions to the public pension system in Japan. The contributions to the public
pension system (defined contribution plan) are expensed at the time of accrual, and accounted for as
employee benefits.

17

(13) Share-based Payments
The Company grants shares with restriction on transfer to directors under the equity-settled share-based
compensation system. Shares with restriction on transfer are estimated at fair value on the grant date, andrecorded as selling, general and administrative expenses over the vesting period, while a corresponding
amount is recognized as equity in the consolidated statement of financial position.
As an incentive plan for the Group employees, the Employee Stock Ownership Plan (ESOP) Trust (Trust
period is May 31, 2017–March 31, 2021) System had been introduced as a trust type employee stock
ownership incentive plan that aimed to motivate employees to work and promote the continued
development of the Group by providing the Group employees with incentives to improve the medium- tolong- term corporate value, enhancing their employee welfare program, and promoting their equity
participation as shareholders.
(14) Provisions
Provisions are recognized when the Group has present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, and the amount of the obligation can be reliably estimated. When the time value of money ismaterial, the estimated future cash flows are discounted to the present value using the time value of money
and the pre-tax interest rate reflecting risks specific to the liabilities. Any rebate of discount on a time basis
is recognized as finance costs.
(15) Revenue
For agreements with customers, excluding rental income from real estate based on IFRS 16 “Leases,” theGroup recognizes revenue by applying the following steps:
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction prices to performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation“Consulting,” “Urban & Spatial Development,” and “Energy” provide such services as planning, designing,and supervision mainly for civil engineering, architecture and electric power.
The Group’s businesses are performance obligations to be satisfied over time, because they fall under eitherof the following cases where: (a) the customer simultaneously receives and consumes the benefits provided
by the Group’s performance as the Group performs; (b) the Group’s performance creates or enhances anasset that the customer controls as the asset is created or enhanced; or (c) the Group’s performance does
not create an asset with an alternative use to the Group and the Group has an enforceable right to payment
for performance completed to date.
Revenue is recognized based on progress toward complete satisfaction of the obligation and, if progresscannot be reliably measured, revenue is recognized to the extent of costs incurred until such time as
progress of performance obligations can be reliably measured.
For the measurement of progress, costs include personnel expenses and outsourcing expenses that are inprinciple based on the cost budget and actual accrued costs.
The large-scale vertical axis hydroelectric power projects, with which the Group has limited priorexperience, are subject to limited information, such as similar projects completed previously whenestimating total costs, and include significant assumptions, such as outsourcing costs. Therefore, estimatesof total costs are likely to change due to revisions of the estimate.
To ensure the accuracy of the estimate of total costs, the Group manages budgets by type of work andconfirms the appropriateness of the estimated total costs for each accounting period, to identify outliers ofcosts at an early stage, and to review the cost budget in a timely manner.
Moreover, the measurement of progress in some large projects is based on output measures. Whenrecording sales by expected billings, progress is recognized based on incurred expense and other output
measures used to measure progress after approval by the project manager.
Contract assets are the Group’s rights to consideration in exchange for goods or services that the Group has
transferred to a customer when that right is conditioned on something other than the passage of time.
Contract liabilities are the Group’s obligation to transfer goods or services to a customer for which theGroup has received consideration or the amount is due from the customer.
Consideration is received by contractual milestones generally in line with the progress in satisfying
performance obligations, with settlement generally occurring within 60 days from the complete satisfactionof performance obligations. Consideration generally does not include significant financing components.

18

(16) Government Subsidies
Government subsidies are recognized at fair value when incidental conditions for granting subsidies are
satisfied and reasonable assurance is obtained for receiving subsidies.
When government subsidies are related to expense items, they are recognized as other income in the period
in which related costs to be reimbursed by subsidies were recognized as expenses. Regarding subsidies for
assets, the amount of the subsidies is deducted from the acquisition cost of assets.
(17) Income Tax
Income tax expenses consist of current tax and deferred tax. These are recognized as profit or loss, except
for cases where they arise from items recognized as other comprehensive income or equity, and where theyarise from business combinations.
Current tax is measured at the amount for which a payment to or refund from the tax authorities is
expected. Tax rates and tax laws to be used for the calculation of tax amounts are those enacted or passed as
law but not yet effective as of the end of the period.
Deferred tax is recognized for a temporary difference that is a difference between the tax base and thecarrying amount of assets and liabilities, unused tax losses and unused tax credits.
Deferred tax liabilities are recognized for all taxable temporary differences, while deferred tax assets arerecognized for all deductible temporary differences to the extent where it is probable that taxable profit will
be available against which deductible temporary differences, unused tax losses carryforward and unused tax
credits carryforward can be utilized.
Deferred tax assets and liabilities are not recorded for the following temporary differences:- Taxable temporary differences arising from the initial recognition of goodwill;- Temporary differences arising from the initial recognition of assets and liabilities in transactions which
is not a business combination and affects neither accounting profit nor taxable profit (tax loss);- Regarding deductible temporary differences arising from investments in subsidiaries and associates andinterests in joint arrangements, cases where it is not probable that the temporary difference will reversein the foreseeable future, or where it is not probable that taxable profit will be available against which
the temporary difference can be utilized; and- Regarding taxable temporary differences arising from investments in subsidiaries and associates andinterests in joint agreements, cases where the timing of the reversal of the temporary difference can becontrolled and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed every period to reduce the carrying amount of thepart for which it is no longer probable that sufficient taxable profit will be available to utilize all or some ofthe deferred tax assets. Unrecognized deferred tax assets are reviewed every period to recognize them to theextent where it is probable that deferred tax assets will be recovered by future taxable income.
Based on tax rates and tax laws enacted or substantially enacted by the end of the period, deferred tax
assets and liabilities are measured by the tax rates and tax laws expected to be applied for the period torealize assets or to settle liabilities.
Deferred tax assets and liabilities are offset when there are legally enforceable rights attributable to thesame taxable entity subject to the same tax authority to offset the current tax assets and liabilities.
(18) Earnings per Share
Basic earnings per share is calculated by dividing profit or loss belonging to owners of the parent by theweighted average number of outstanding ordinary shares adjusted by treasury shares for the period. Diluted
earnings per share is calculated by adjusting for the effect of all potential ordinary shares that have dilutive
effects.
(19) Segment Information
A business segment is a constituent unit of business activities that earn revenue and accrue expenses,
including transactions with other business segments. A business segment has operations for which financial
information is separately available and the Company’s Board of Directors regularly reviews them to allocate
management resources to each segment and evaluate results.
(20) Treasury Shares
Treasury shares are recorded at acquisition cost and are accounted for as a reduction from equity. Profit orloss is not recognized for the purchase, sale, or cancellation of Company treasury shares. Rather, thedifference between the book value and consideration paid to acquire the treasury shares is recognized inequity.

19

(21) Borrowing Cost
For assets that require a considerable period to enable the intended use or sale, borrowing costs directly
arising from their acquisition, construction, and production are capitalized as part of the assets’ acquisition
costs.
Other borrowing costs are recognized as expenses in the period of their accrual.

4.	Significant Accounting Estimates and Judgement with Estimates
In preparation of consolidated financial statements in accordance with IFRS, management is required to makejudgements, estimates and assumptions that will affect the application of accounting policies, and the amount ofassets, liabilities, revenue, and expenses. Actual earnings may differ from these estimates.
Estimates and their underlying assumptions will continue to be revised. Any impact of a revision to accounting
estimates will be recognized in the accounting period in which the estimates are revised, and applied
prospectively to future accounting periods.
The judgements and estimates made by management that could have significant effects on the amounts in the
consolidated financial statements are as follows:- Revenue recognition (Note “3. Significant Accounting Policies, (15) Revenue,” and “27. Revenue”)- Impairment of non-financial assets (Note “3. Significant Accounting Policies, (11) Impairment of NonFinancial Assets,” and “15. Impairment of non-Financial Assets”)

5. New Accounting Standards Not Yet Adopted
The below are major new or amended standards that have been issued as of the date of approval of theconsolidated financial statements which are not effective and have not yet been adopted by the Group as of June30, 2023. The Company is looking into the impact of applying the new IFRS and is in no position to makeestimates at the moment.
Standard

Standard name

Effective date(Annual periods
beginning on or after)

The Group’s application
schedule

Overview of newly established andrevised standards

Comprehensive standard related toinsurance contracts. Replaced IFRS 4,
which was introduced as an interim
standard.

IFRS 17

Insurance Contract

January 1, 2023

Fiscal year ending
June 30, 2024

IAS 1

Presentation of Financial
Statements

January 1, 2024

Fiscal year ending
June 30, 2025

Clarified how to classify debt andother financial liabilities as current or
non-current.

IAS 1

Presentation of Financial
Statements

Improved disclosure of accounting
policies and clarified criteria between
accounting policies and accounting
estimates.

Accounting Policies,
Changes in Accounting
Estimates and Errors

January 1, 2023

IAS 8

Fiscal year ending
June 30, 2024

IAS 12

Income Taxes

January 1, 2023

Fiscal year ending
June 30, 2024

Clarified the accounting treatment ofdeferred tax related to lease anddecommissioning obligations.
Added requirements to explain how asale and leaseback transaction shouldbe treated after the transaction iscompleted.
Improved information that an entity
should provide concerning long-term
debt with covenants.

IFRS 16

LeasesJanuary 1, 2024

Fiscal year ending
June 30, 2025

IAS 1

Presentation of Financial
Statements

January 1, 2024

Fiscal year ending
June 30, 2025

20

6. Segment Information(1) Outline of Reportable Segments
a. Method of Determination of Reportable Segments
Reportable segments of the Group are determined as segments whose separate financial information isaccessible from among the constituent units of the Group and used by the Board of Directors to determine
the allocation of management resources and to evaluate achievements.
The Group has business management divisions separated by types of products and services at the head
office.
Each business management division formulates a comprehensive strategy based on the products andservices and engages in conducting business activities.
In line with the above, the Group is composed of segments divided by products and services, with eachbusiness management division serving as the foundation, and the three reportable segments are“Consulting”, “Urban & Spatial Development” and “Energy.”
b. Types of Products and Services by Reportable Segments“Consulting” engages in business within and outside Japan such as site surveying, planning, evaluation/assessment, designing, and construction management. It mainly operates in the fields of rivers and water
resources, water and sewage, agricultural and rural development, dams and power generation,transportation (roads, railroads, ports and airports), urban and regional development, geology, disasterprevention, sand control, environment and information systems.
“Urban & Spatial Development” engages in the structuring, planning, design, and operation of urban andspatial development business.
“Energy” engages in manufacturing and sale of electric power equipment and control devices, planning,
design, construction and construction management of mechanical, electrical and communication facilities
as well as the energy management business utilizing distributed energy resources.
(2) Changes in reportable segments
On July 1, 2022, the Urban & Spatial Development Business of the Company was transferred by succession
to our consolidated subsidiary Tamano Consultants Co., Ltd through a company split (simplified absorptiontype split), and the trade name of the said company was changed to Nippon Koei Urban Space Co., Ltd. In
association with the organizational restructuring due to the relevant company split, Nippon Koei Urban
Space Co., Ltd. and its subsidiary Tamano Ecost Co., Ltd. and our consolidated subsidiary Nakaze kamp Co.,
Ltd. have had their segment classification changed from the “Consulting” to the “Urban & Spatial
Development”.
Please note that segment information for the previous fiscal year is provided based on the new reporting
segments.
(3) Calculation Methods for Revenue, Income or Loss, Assets, and Other Items by Reportable Segments
The accounting method for reportable segments is as disclosed in “3. Significant Accounting Policies”.
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price.
(4) Revenue, Income or Loss, Assets, Liabilities, and Other Items by Reportable Segments
The Group’s revenue and operating results by reportable segments are as follows:21

Millions of Yen

Year ended June 30, 2023
Reportable Segments

Others(Note 1)

Total

Adjustments(Note 3)

Consolidated

Consulting

Urban & Spatial
Development

EnergySubtotal¥81,818523¥38,071608¥20,855
322¥140,745
1,454¥82,341
6,599¥38,680(946)¥21,177
2,974¥142,199
8,627

Depreciation and amortization
Impairment losses(1,520)—(2,115)(3,943)(704)—(4,340)(3,943)(992)—(5,332)(3,943)27—(5,305)(3,943)

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

20
57,587—47,66476
38,74997
144,001—
83,641

97
227,643—(32,251)

97
195,391

1,907

2,912

768

5,588

401

5,990

—

5,990

103

—

1,726

1,830

—

1,830

—

1,830

Adjustments(Note 3)

Consolidated

Revenue:
Revenue from external customers
Intersegment revenue and transfers
Total
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Other items:

Increase in property, plant and equipment,
and intangible assets (Note 2)
Investments accounted forusing equity method

¥782
976

¥141,527
2,430¥ — ¥141,527(2,430)—¥1,758 ¥143,958(2,537)
6,090¥(2,430) ¥141,527
(9)
6,080
1,074
(781)
6,373

Thousands of U.S. Dollars

Year ended June 30, 2023
Reportable Segments

Revenue:
Revenue from external customers
Intersegment revenue and transfers
Total
Segment profit (loss)

Others(Note 1)

Total

Consulting

Urban & Spatial
Development

EnergySubtotal$565,141
3,614$262,971
4,205$144,056
2,224$972,169
10,043$5,402
6,742$977,571
16,786$—(16,786)$977,571—$568,755
45,582$267,176(6,535)$146,281
20,546$982,213
59,594$12,144(17,523)$994,357
42,070$(16,786)(68)$977,571
42,002Finance income

7,420

Finance costs(5,398)

Profit before tax

44,023

Other items:
Depreciation and amortization
Impairment losses
Share of profit (loss) of investments
accounted for using equity method
Segment assets
Increase in property, plant and equipment,
and intangible assets (Note 2)
Investments accounted forusing equity method(10,505)(14,611)(4,864)(29,981)(6,853)(36,834)

190(36,643)—(27,240)—(27,240)—(27,240)—(27,240)

142

—

530

672

—

672

—

672

397,771329,230

267,652

994,654577,737

1,572,392(222,770)

1,349,622

13,177

20,114

5,308

38,6002,776

41,377—

41,377715—

11,926

12,641—

12,641—

12,641(Notes)1.	The category of “Others” includes revenues from constituent units that have not earned revenues or (or earn
only incidental revenues), expenses such as general and administrative expenses that do not belong to thereporting segment and corporate assets such as land, buildings, and investment securities.
2.	The amount of increase in property, plant and equipment, and intangible assets includes the change as aresult of changes in the balances in right-of-use assets and investment property.
3.	“Adjustments” is mainly the elimination of transactions between segments.

22Millions of Yen

Year ended June 30, 2022
Reportable Segments

Others(Note 1)

Adjustments(Note 3)

Consolidated¥130,674
1,820¥—(1,820)¥130,674—¥1,564(2,794)¥132,494
9,066¥(1,820)(1)¥130,674
9,065
2,218
(483)
10,800(4,018)
(281)

(973)
—

(4,991)
(281)

15
—

(4,976)(281)

244
31,040230
134,463—
76,045

230
210,508—(36,582)

230
173,926

1,611

3,650

7,036

1,180

8,217

—

8,217

—

2,352

2,434

—

2,434

—

2,434

Consulting

Urban & Spatial
Development

EnergySubtotal¥75,000
426¥36,091289¥18,799
322¥129,891
1,038

¥783
781

¥75,427
7,971¥36,381
2,599¥19,1211,290¥130,930
11,861

Depreciation and amortization
Impairment losses(1,474)—(1,949)
(281)

(595)
—

Share of profit (loss) of investments
accounted for using equity method
Segment assets(14)
55,693—47,7291,774
82

Revenue:
Revenue from external customers
Intersegment revenue and transfers
Total
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Other items:

Increase in property, plant and equipment,
and intangible assets (Note 2)
Investments accounted forusing equity method

Total(Notes)1.	The category of “Others” includes revenues from constituent units that have not earned revenues or (or earn
only incidental revenues), expenses such as general and administrative expenses that do not belong to thereporting segment and corporate assets such as land, buildings, and investment securities.
2.	The amount of increase in property, plant and equipment, and intangible assets includes the change as aresult of changes in the balances in right-of-use assets and investment property.
3.	“Adjustments” is mainly the elimination of transactions between segments.
(5) Information by Product and Service
Statement is omitted, as similar information is disclosed in “(4) Revenue, Income or Loss, Assets, Liabilities,
and Other Items by Reportable Segments.”(6) Information by Region
The breakdown by region of revenue and non-current assets is as follows:
Revenue from external customers
Millions of Yen

Japan
Europe, Middle East, Central Asia, North Africa
Southeast Asia, East Asia, Oceania
South Asia
America
Sub-Saharan Africa, Africa
OthersTotal

23

Year ended
June 30, 2023
¥81,017
19,64012,617
13,528
9,798
4,738
187
¥141,527

Year ended
June 30, 2022
¥76,546
18,68811,304
10,941
8,304
4,687
202
¥130,674

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$559,607
135,661
87,151
93,44567,68132,7291,293$977,571

Non-current assets
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023
¥47,810
28,232
4,428
3,096¥83,568

Japan
EuropeCanadaOthersTotal

As ofJune 30, 2022
¥49,372
20,871
2,689
2,544¥75,478

As ofJune 30, 2023
$330,238
195,01230,587
21,390$577,229(Notes)1.	“Revenue” and “Non-current assets” are classified based on service areas and their location, respectively.
2.	“Non-current assets” do not include financial instruments, deferred tax assets and assets for retirement
benefits.
3.	Countries and regions are classified by geographical proximity.
(7) Information on Significant Customers
Customers that account greater than 10% of revenue in the consolidated statement of profit or loss are as
follows:
Millions of Yen

Year ended June 30, 2023
Name of Customers

Revenue

Related Segment Name

Ministry of Land, Infrastructure, Transport and Tourism¥23,816

Consulting

Japan International Cooperation Agency

10,106

Consulting

Tokyo Electric Power Company Holdings, Inc.
and its subsidiaries

8,572

EnergyThousands of U.S. Dollars

Year ended June 30, 2023
Name of Customers

Revenue

Related Segment Name

$164,507

Consulting

Japan International Cooperation Agency

69,805

Consulting

Tokyo Electric Power Company Holdings, Inc.
and its subsidiaries

59,212

EnergyMinistry of Land, Infrastructure, Transport and Tourism

Millions of Yen

Year ended June 30, 2022
Name of Customers

Revenue

Related Segment Name

Ministry of Land, Infrastructure, Transport and Tourism¥23,574

Consulting

Japan International Cooperation Agency

10,576

Consulting

Tokyo Electric Power Company Holdings, Inc.
and its subsidiaries

7,357

Energy24

7. Business Combinations
Statement is omitted due to its insignificance for the years ended June 30, 2023 and 2022.

8. Cash and Cash Equivalents
The breakdown of cash and cash equivalents is as follows:
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

Cash and bank deposits except for time deposits
with original term of more than three months¥31,679¥17,971$218,816

Cash and cash equivalents in the consolidated
statement of financial position

31,67917,971

218,816

Cash and cash equivalents in the consolidated
statement of cash flows

31,67917,971

218,816

9. Trade and Other Receivables
The breakdown of trade and other receivables is as follows:
Millions of Yen

Notes and accounts receivable - trade
OthersAllowance for expected credit losses
Total

As of
June 30, 2023
¥25,5452,466(1,199)¥26,812

As ofJune 30, 2022
¥25,9312,088(977)¥27,042

Trade and other receivables are classified as financial assets measured at amortized cost.

25

Thousands of
U.S. Dollars

As ofJune 30, 2023
$176,450
17,037(8,288)$185,200

10. Other Financial Assets(1) Breakdown of Other Financial Assets
The breakdown of other financial assets is as follows:
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥2,745¥3,856$18,962

(147)

(95)

(1,022)

940
1,843
201
3

940
1,769
215
—

6,497
12,735
1,394
22

2,299
¥7,886¥2,7805,106¥7,886

3,517¥10,203¥3,7796,423¥10,203

15,883$54,475$19,206
35,268$54,475

Financial assets measured at amortized cost:
Time deposits with a deposit period of
more than 3 months and others
Allowance for expected credit losses
Financial assets measured at fair value throughprofit or loss:
Interest rate and currency swap
Stocks
Bonds
OthersFinancial assets measured at fair value throughother comprehensive income:Stocks and contribution
Total
Current assets
Non-current assets
Total(2) Equity Financial Assets Measured at Fair Value through Other Comprehensive Income
Fair values of significant equity financial assets measured at fair value through other comprehensive income
are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Issue name:
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Realty & Development Co., Ltd.
OILES CORPORATIONJESK HORIUCHI CO., LTD.
OYO Corporation
Yokogawa Bridge Holdings Corp.
INFRONEER Holdings Inc.

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥759
532
475
105
—
—
—

¥520
537
363
118
559
445
364

$5,245
3,681
3,283
728
—
—
—

As these investments are held for the purpose of strategic cross-shareholding, they are designated as equity
financial assets measured at fair value through other comprehensive income.

26

(3) Derecognition of Equity Financial Assets Measured at Fair Value through Other Comprehensive Income
For the purpose of streamlining assets and reviewing business relationships, the Group sells some equity
financial assets measured at fair value through other comprehensive income and derecognizes them.
The fair value at the derecognition and cumulative gains and losses that have been previously recognized inequity as other comprehensive income are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Fair value
Cumulative gains or losses

As ofJune 30, 2023
¥1,843909

As ofJune 30, 2022
¥39
22

As of
June 30, 2023
$12,730
6,279

For equity financial assets measured at fair value through other comprehensive income, when derecognized,
cumulative gains or losses recognized as other comprehensive income are transferred to retained earnings.
Cumulative gains or losses (after tax) of other comprehensive income transferred to retained earnings are ¥623
million ($4,303 thousand) and ¥15 million for the years ended June 30, 2023 and 2022, respectively.
The breakdown of dividend income recognized from equity instruments is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Derecognized investments during the reporting period
Investments held at year-end

As ofJune 30, 2023
¥37
131

As of
June 30, 2022
¥1
97

As of
June 30, 2023
$255
908

11. Other Assets
The breakdown of other assets is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Other current assets:
Advance payments to suppliers
Prepaid expenses
Accrued interest
Consumption taxes refund receivable
Others
Total
Other non-current assets:Long-term prepaid expenses
Others
Total

27

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥1,212
2,163
51
545
1,755
¥5,728¥2,851
1,861
1,034
1,062
1,480
¥8,290$8,373
14,945354
3,770
12,124$39,567

¥235
370
¥606

¥356
1,166
¥1,523$1,6272,560$4,188

12. Property, Plant and Equipment(1) Schedule of Changes
The changes in acquisition cost, accumulated depreciation and impairment, and carrying amount of property,
plant and equipment are as follows:
Acquisition Cost
Millions of Yen
Buildings
and structures

Land

Balance as of July 1, 2021
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Machineryand vehicles

Tools, furnitureand fixtures¥23,153
1,003
—
(990)
(1,465)¥21,863
87
—
(61)
2,233

¥4,564
49
—
(26)
670

¥5,892
497
78
(300)
(95)

24
—
¥21,725
—
—
—
680

446
(38)
¥24,530
3,670
1
(59)
334

128
0
¥5,387
35
—
(9)
22

253
31
¥6,357
659
9
(368)
398

18
(0)
¥22,424829
21¥29,32850(0)¥5,485348(0)¥7,404

Millions of Yen
Constructionin progress

Balance as of July 1, 2021
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Total
property, plantand equipment

Right-of-use
assetsTotal¥3,198
1,278¥58,672
2,915¥14,039
4,228¥72,712
7,143

—

78

—

78

—
(2,236)(1,379)(892)(2,850)—(4,229)
(892)

366
22
¥2,628
6,441

1,219

538
—
¥15,956
4,336

1,758
15
¥76,586
15,142

15¥60,629
10,805

—

10

—

10

—
(860)

(438)
575

(2,502)(151)(2,940)424

747
8¥8,9661,994
29¥73,607815
81¥18,5362,809
111¥92,143

28

Thousands of U.S. Dollars
Buildings
and structures

Land

Balance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Machineryand vehicles

Tools, furnitureand fixtures$150,065—$169,438
25,354$37,211
241$43,913
4,552

—

7

—

65

—

4,698

(411)
2,312

(67)
153

(2,546)
2,754

126
(0)
$154,890

5,726
150$202,576

347(0)$37,886

2,406(3)$51,142

Thousands of U.S. Dollars
Constructionin progress

Balance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Account transfer
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

$18,157
44,490Total
property, plantand equipment$418,785
74,639Right-of-use
assets$110,218
29,951

Total$529,003
104,591

—

72

—

72

—
(5,942)(3,025)
3,977(17,284)(1,046)(20,310)
2,930

5,166
60
$61,932

13,773

5,633
562$128,034

19,406769$636,462

206$508,428

Accumulated Depreciation and Impairment
Millions of Yen
Buildings
and structures

Land

Balance as of July 1, 2021
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition through business combination
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

29

Machineryand vehicles

Tools, furnitureand fixtures

¥—
—
—
—

¥8,454666—(13)¥3,074186—(22)¥4,517
427
—
(204)

—
—
¥—
—
—
—
—

58
1,405
¥10,570
0
801
85
(48)

13
450
¥3,702
—
191
22
(7)

197
16
¥4,953
6
496
—
(351)

—
—
¥—

30
157
¥11,5975(0)¥3,913246
27¥5,378

Millions of Yen
Constructionin progress

Balance as of July 1, 2021
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition through business combination
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Total
property, plantand equipment

Right-of-use
assetsTotal¥1,794———¥17,840
1,279
—
(240)

¥4,8103,110—(1,236)¥22,650
4,390—(1,477)—(1,794)
¥—
—
—
—
—

268
77
¥19,225
6
1,488
108
(407)

203
1
¥6,889—3,240—(1,978)472
79¥26,1146
4,729
108(2,386)

—
—
¥—

282
184
¥20,889314(70)¥8,395597
114¥29,284

Thousands of U.S. Dollars
Buildings
and structures

Land

Balance as of June 30, 2022
Acquisition through business combination
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Machineryand vehicles

Tools, furnitureand fixtures

$—
—
—
—
—

$73,012
4
5,532
591
(334)

$25,571
—
1,319
155
(48)

$34,21342
3,430—(2,430)

—
—
$—

210
1,087
$80,10336
0$27,0341,703
189$37,148

Thousands of U.S. Dollars
Constructionin progress

Balance as of June 30, 2022
Acquisition through business combination
Depreciation
Impairment losses
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Total
property, plantand equipment

Right-of-use
assets

Total

$—
—
—
—
—

$132,796
46
10,283747(2,813)$47,585—
22,384—(13,669)$180,381
46
32,668747(16,482)

—
—
$—

1,950
1,275
$144,286

2,174
(483)
$57,991

4,125
792$202,278(Note)
Depreciation for property, plant and equipment are included in “Cost of sales” and “Selling, general andadministrative expenses” in the consolidated statement of profit or loss.

30

Carrying AmountMillions of Yen
Land

As of July 1, 2021
As of June 30, 2022
As of June 30, 2023

¥23,153
21,72522,424

Buildings
and structures

Machineryand vehicles¥13,409
13,96017,731¥1,4891,685
1,571

Tools, furnitureand fixtures¥1,375
1,404
2,025

Millions of Yen
Constructionin progress

As of July 1, 2021
As of June 30, 2022
As of June 30, 2023

¥1,403
2,628
8,966

Property, plantand equipment

Right-of-use
assets¥40,832
41,40352,718¥9,229
9,067
10,140

Total¥50,061
50,47162,859Thousands of U.S. Dollars
Land

As of June 30, 2023

$154,890

Buildings
and structures

Machineryand vehicles$122,473$10,851

Tools, furnitureand fixtures$13,993

Thousands of U.S. Dollars
Constructionin progress

As of June 30, 2023

$61,932

Property, plantand equipment

Right-of-use
assets$364,141$70,042

Total$434,184(Note)
The amount of borrowing costs capitalized during the period is ¥33 million ($227 thousand) and ¥19 million forthe years ended June 30, 2023 and 2022, respectively. The capitalization rate used for calculating the amount ofborrowing costs qualified for capitalization is 0.58% and 0.7% for the years ended June 30, 2023 and 2022,
respectively.
(2) Right-of-Use Assets
The carrying amount of right-of-use assets by asset class is as follows:
Millions of Yen
Buildings
and structures

As of July 1, 2021
As of June 30, 2022
As of June 30, 2023

¥7,874
7,651
8,705

Machineryand vehicles

¥323
390
333

Tools, furnitureand fixtures¥1,031
1,025
1,100

Total

¥9,229
9,067
10,140Thousands of U.S. Dollars
Buildings
and structures

As of June 30, 2023

31

$60,131

Machineryand vehicles$2,305Tools, furnitureand fixtures$7,604

Total$70,041

13. Goodwill and Intangible Assets(1) Schedule of Changes
The changes in acquisition cost, accumulated amortization and impairment, and carrying amount of goodwill
and intangible assets are as follows:
Acquisition Cost
Millions of Yen
Intangible assets
Goodwill

Balance as of July 1, 2021
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

SoftwareTrademarks

Customer
relationships¥9,182—435—¥4,276171—(283)¥4,148—25—¥1,641———

887—¥10,505
—
532
—

56
(36)
¥4,185
235
70
(60)

385
—
¥4,558———208—¥1,849———946—¥11,984

39—¥4,471432—¥4,990125—¥1,974

Millions of Yen
Intangible assets
Contact-related
intangible assets

Balance as of July 1, 2021
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Others

Total

¥537
143
—
—

¥1,668—70(0)¥12,272
315
96
(284)

53
—
¥735
—
—
—

142
0
¥1,880
0
115
(18)

846
(35)
¥13,209
236
186
(79)

75
—
¥810

120
—
¥2,097792—¥14,345

32

Thousands of U.S. Dollars
Intangible assets
Goodwill

Balance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

SoftwareTrademarks

Customer
relationships$72,566—
3,676—$28,910
1,629
487
(417)

$31,489———$12,775
—
—
—

6,534
—
$82,777275—$30,885

2,984—$34,473865—$13,640

Thousands of U.S. Dollars
Intangible assets
Contact-related
intangible assets

Balance as of June 30, 2022
Acquisition
Acquisition through business combination
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

OthersTotal$5,077———$12,990
0
798
(130)

$91,243
1,630
1,286
(547)

519
—
$5,597829—$14,489

5,474—$99,087

Accumulated Amortization and Impairment
Millions of Yen
Intangible assets
Goodwill

Balance as of July 1, 2021
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

33

SoftwareTrademarks

Customer
relationships

¥—
—
281
—
—

¥3,705
236
—
—
(282)

¥—
—
—
—
—

¥702
160
—
—
—

17
—
¥298
—
3,943
—
—

47
(47)
¥3,661
207
—
—
(60)

—
—
¥—
—
—
—
—

91
—
¥954
173
—
—
—

414
—
¥4,65635—¥3,844

—
—
¥—

89
—
¥1,217

Millions of Yen
Intangible assets
Contact-related
intangible assets

Balance as of July 1, 2021
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2022
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Others

Total

¥—
—
—
—
—

¥1,36174——(0)¥5,769
471
—
—
(283)

—
—
¥—
—
—
—
—

134
(0)
¥1,569
71
—
—
(17)

273
(47)
¥6,184
452
—
—
(77)

—
—
¥—

116
—
¥1,739242—¥6,801Thousands of U.S. Dollars
Intangible assets
Goodwill

Balance as of June 30, 2022
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

SoftwareTrademarks

Customer
relationships$2,059—27,240——$25,289
1,433
—
—
(415)

$—
—
—
—
—

$6,591
1,198
—
—
—

2,861
—
$32,161246—$26,554

—
—
$—

618
—
$8,408

Thousands of U.S. Dollars
Intangible assets
Contact-related
intangible assets

Balance as of June 30, 2022
Amortization
Impairment losses
Reversal of impairment
Sale or disposal
Exchange differences on translationof foreign operations
OthersBalance as of June 30, 2023

Others

Total

$—
—
—
—
—

$10,838
491
—
—
(121)

$42,719
3,123
—
—
(536)

—
—
$—

806
—
$12,015

1,671—$46,97734

Carrying AmountMillions of Yen
Intangible assets
Goodwill

Balance as of July 1, 2021
Balance as of June 30, 2022
Balance as of June 30, 2023

Software¥9,182
10,207
7,327

Trademarks

¥570
524
627

¥4,1484,558
4,990

Customer
relationships

¥938
895
757

Millions of Yen
Intangible assets
Contact-related
intangible assets

Balance as of July 1, 2021
Balance as of June 30, 2022
Balance as of June 30, 2023

¥537
735
810

Others

Total

¥306
311
358

¥6,502
7,025
7,544

Thousands of U.S. Dollars
Intangible assets
Goodwill

Balance as of June 30, 2023

Software$50,615$4,331

Trademarks$34,473

Customer
relationships$5,232Thousands of U.S. Dollars
Intangible assets
Contact-related
intangible assets

Balance as of June 30, 2023

$5,597

Others$2,474

Total$52,109(Notes)1.	The breakdown of the carrying amount of goodwill by segment is as described in “15. Impairment of NonFinancial Assets.”
2.	Certain trademarks are expected to be used as long as the business continues; as such, they are deemed tohave no foreseeable limit on the period with expected future economic benefits and are therefore classified as
intangible assets with indefinite useful lives. The carrying amount of trademarks classified as intangible assets
with indefinite useful lives is as described in “(2) Significant Goodwill and Intangible Assets.”
3.	Others include leasehold interests in land, outstanding orders, telephone subscription right, and right to use
facilities.
4.	Amortization for intangible assets is included in “Cost of sales” and “Selling, general and administrative
expenses” in the consolidated statement of profit or loss.
5.	Impairment loss is included in “Other expenses” in the consolidated statement of profit or loss.
6.	Research and development expenses recognized as an expense during the period are ¥1,211 million ($8,370
thousand) and ¥1,243 million for the years ended June 30, 2023 and 2022, respectively.

35

(2) Significant Goodwill and Intangible Assets
Thousands of
U.S. Dollars

Millions of Yen

As of June 30, 2023

As of June30, 2023

As of June 30, 2022

Carrying amountUseful life (year)

Carrying amountUseful life (year)

Carrying amount¥5,104
4,501——¥8,556
4,083——$35,257
31,090BDP Holdings Limited
Goodwill
Trademarks (Note)(Note)
Intangible assets with indefinite useful lives:
The above trademarks were acquired in connection with a business combination and are expected to be used aslong as businesses continue; as such, it is deemed that their useful lives are indefinite.

14. Investment Property
The Company and some consolidated subsidiaries own office buildings (including land) for lease in the Tokyo
metropolitan area and Europe. Main details include offices in Chiyoda-ku, Tokyo, and commercial stores in
Yokohama City, Kanagawa. Target assets for operating leases (lessor side) are also included in investment
property.
(1) Schedule of Changes
The changes in acquisition cost, and accumulated depreciation and impairment of investment property are as
follows:
Acquisition Cost
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of period
Acquisition
Transfer
Exchange differences on translation of foreign
operations
Balance at end of period

Year ended
June 30, 2023
¥8,266131(1,137)

Year ended
June 30, 2022
¥5,6848
2,573

Year ended
June 30, 2023
$57,097910(7,854)16¥7,277—¥8,266115$50,268

Accumulated Depreciation and Impairment
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of period
Depreciation
Transfer
Exchange differences on translation of foreign
operations
OthersBalance at end of period

Year ended
June 30, 2023
¥2,015
122(99)

Year ended
June 30, 2022
¥1,589114
311

Year ended
June 30, 2023
$13,922
846
(684)

7
—
¥2,046—0¥2,01551—$14,137
36

Carrying amount and fair values of investment property are as follows:
Millions of Yen

Carrying amount
Fair value

As ofJune 30, 2023
¥5,230
10,589As ofJune 30, 2022
¥6,25012,277

Thousands of
U.S. Dollars

As ofJune 30, 2023
$36,131
73,147

The fair value of investment property is determined by the Group based on “Real Estate Appraisal Standards.”
The fair value hierarchy of investment property is classified as Level 3 because unobservable inputs areincluded. The fair value hierarchy is described in “35. Financial Instruments (8) c.”(2) Revenue and Expenses from Investment Property
Rental income and direct operating cost from investment property are as follows:
Rental income represents lease income from operating leases (lessor) in accordance with IFRS 16 “Leases.”Millions of Yen

Rental income
Direct operating cost

Year ended
June 30, 2023
¥665
265

Year ended
June 30, 2022
¥677
304

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$4,594
1,837

15. Impairment of Non-Financial Assets(1) Impairment Losses
The Group makes grouping based on the minimum unit of asset groups identified to generate mostly
independent cash flows in calculating impairment losses.
Impairment losses are recorded in “Other expenses” of the consolidated statement of profit or loss.
The breakdown of impairment losses is as follows:
Millions of Yen

Goodwill
Total

Year ended
June 30, 2023
¥3,943¥3,943

Year ended
June 30, 2022
¥281
¥281

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$27,240$27,240

For the year ended June 30, 2023, an impairment loss of ¥3,943 million ($27,240 thousand) is recorded against
goodwill for BDP Holdings Limited and its subsidiaries of the Urban & Spatial Development segment.
For the year ended June 30, 2023, the recoverable amount fell below the carrying amount primarily due to anincrease in the discount rate from the year ended June 30, 2022 and review of business plan resulting inrecognizing an impairment loss.
For the year ended June 30, 2022, an impairment loss of ¥281 million is recorded against goodwill for BDP
Holdings Limited and its subsidiaries of the Urban & Spatial Development segment. For the year ended June 30,
2022, the recoverable amount fell below the carrying amount primarily due to an increase in the discount ratefrom the year ended June 30, 2021, resulting in recognizing an impairment loss.

37

(2) Impairment Test for Goodwill and Intangible Assets with Indefinite Useful Lives
Goodwill arising from business combinations was allocated to cash generating units that would receive profits
from those business combinations.
The breakdown of the carrying amount by segment of goodwill and intangible assets with indefinite useful lives
is as follows:
Millions of Yen

Consulting
Urban & Spatial Development
Total

As of
June 30, 2023
¥542
11,775¥12,318

As ofJune 30, 2022
¥45
14,721¥14,766

Thousands of
U.S. Dollars

As ofJune 30, 2023
$3,74981,339$85,088

Goodwill and intangible assets with indefinite useful lives of BDP Holdings Limited and its subsidiaries
For the goodwill of ¥6,785 million ($46,866 thousand) as well as trademarks as intangible assets with indefinite
useful lives of ¥4,990 million ($34,473 thousand) recognized as a result of the acquisition of BDP Holdings
Limited and its subsidiaries (which include Quadrangle Architects Limited and Pattern Design Limited), theGroup conducts an impairment test annually or more often if indicators of impairment exist. The recoverable
amount of the impairment test is determined based on the value in use, with the assistance of independent
appraisers.
The value in use is determined by discounting the estimated future cash flows based on the business plans andgrowth rates for three years in the future approved by management, using the discount rate of 11.2% based on
the weighted average of capital costs of the cash generating unit groups, reflecting past experience and external
information.
The growth rate of 2.0% is assumed, taking into account the industry to which cash generating unit groups
belong and the long-term average growth rate of the country, which does not exceed the long-term average
growth rate of the market.

38

16. Investments and Joint Operations Accounted for Using the Equity
Method(1) Investments in Associates and Joint Ventures
The Group has no significant associates and joint ventures.
The total carrying amount of investments in associates and joint ventures, which are not significant individually,is as follows:
Millions of Yen

Carrying amount in total

As ofJune 30, 2023
¥1,830

As ofJune 30, 2022
¥2,434

Thousands of
U.S. Dollars

As ofJune 30, 2023
$12,641

The amount of equity shares in comprehensive income for these individually insignificant associates and joint
ventures is as follows:
Millions of Yen

Equity shares in net income
Equity shares in other comprehensive income
Equity shares in comprehensive income(2) Investments in Joint Operation
The Group has no significant joint operations.

39

Year ended
June 30, 2023
¥97
74
¥171

Year ended
June 30, 2022
¥230
76
¥306

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$672
513
$1,185

17. Income Taxes(1) Deferred Tax Assets and Liabilities
The breakdowns and changes of deferred tax assets and liabilities by major cause of accrual are as follows:
For the year ended June 30, 2023
Millions of Yen

Deferred tax assets:
Tax loss carryforwards
Retirement benefit liability
Impairment losses
Other assets
Total deferred tax assets
Deferred tax liabilities:
Retained earnings of subsidiaries
Property, plant and equipment
Intangible assets
Financial assets measured at fair value
Retirement benefit asset
Other liabilities
Total deferred tax liabilities
Net deferred tax assets

As ofJuly 1, 2022

Recognizedthrough profit
or loss

Recognized inothercomprehensive
incomeBusiness
combinations

As ofJune 30, 2023

¥109
1,207
130
1,115
¥2,562

¥158
122
16
833
¥1,132

¥—
152
—
(2)
¥150

¥—
—
—
—
¥—

¥267
1,482
147
1,946
¥3,844¥(593)(1,285)(204)(317)(1,105)(1,310)¥(4,816)¥(2,254)

¥(69)
10
(20)
285
(176)
(70)
¥(41)
¥1,090

¥—
—
—
(198)
—
(22)
¥(221)
¥(70)

¥—
—
—
—
—
(59)
¥(59)
¥(59)

¥(662)(1,275)(224)(231)(1,281)(1,463)¥(5,138)¥(1,293)

Thousands of U.S. Dollars

Deferred tax assets:
Tax loss carryforward
Retirement benefit liability
Impairment losses
Other assets
Total deferred tax assets
Deferred tax liabilities:
Retained earnings of subsidiaries
Property, plant and equipment
Intangible assets
Financial assets measured at fair value
Retirement benefit asset
Other liabilities
Total deferred tax liabilities
Net deferred tax assets

As ofJuly 1, 2022

Recognizedthrough profit
or loss

Recognized inothercomprehensive
incomeBusiness
combinations

As ofJune 30, 2023

$753
8,337
904
7,704
$17,699$1,094
848
117
5,759
$7,820

$—
1,056
—
(19)
$1,037

$—
—
—
—
$—

$1,848
10,242
1,021
13,445$26,557$(4,098)(8,879)(1,409)(2,195)(7,636)(9,052)$(33,270)$(15,571)$(477)
70
(144)
1,968
(1,217)(488)$(288)$7,532$———(1,369)—(157)$(1,527)$(489)

$—
—
—
—
—
(408)
$(408)$(408)$(4,575)(8,808)(1,553)(1,595)(8,853)(10,107)$(35,494)$(8,936)40

For the year ended June 30, 2022
Millions of Yen

Deferred tax assets:
Tax loss carryforward
Retirement benefit liability
Impairment losses
Other assets
Total deferred tax assets
Deferred tax liabilities:
Retained earnings of subsidiaries
Property, plant and equipment
Intangible assets
Financial assets measured at fair value
Retirement benefit asset
Other liabilities
Total deferred tax liabilities
Net deferred tax assets

As ofJuly 1, 2021

Recognizedthrough profit
or loss

Recognized inothercomprehensive
incomeBusiness
combinations

As ofJune 30, 2022

¥200
776
133
777
¥1,888

¥(91)
430
(3)
341
¥677

¥—
—
—
(2)
¥(2)

¥—
—
—
—
¥—

¥109
1,207
130
1,115
¥2,562¥(216)(1,301)
(188)
(425)
(931)
(920)
¥(3,983)¥(2,095)¥(377)
16
(15)
15
(426)
(359)
¥(1,146)¥(469)

¥—
—
—
91
252
(30)
¥313
¥310

¥—
—
—
—
—
—
¥—
¥—

¥(593)(1,285)(204)(317)(1,105)(1,310)¥(4,816)¥(2,254)

The amounts of deductible temporary differences and unused tax losses carry forward without the recognitionof deferred tax assets are as follows:
Millions of Yen

Deductible temporary differences
Tax loss carryforward

As ofJune 30, 2023
¥2,651349

As ofJune 30, 2022
¥4,039331

Thousands of
U.S. Dollars

As ofJune 30, 2023
$18,316
2,415

Expiration year of unused tax losses carryforward without the recognition of deferred tax assets are as follows:
Millions of Yen

Due within one year
Due after one year through two years
Due after two year through three years
Due after three year through four years
Due after five years
Total

41

As of
June 30, 2023
¥30
118
71
50
77
¥349

As of
June 30, 2022
¥—
30
118
71
110
¥331

Thousands of
U.S. Dollars

As ofJune 30, 2023
$210
820
496
349
537
$2,415

Deferred tax assets and liabilities on consolidated statement of financial position are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Deferred tax assets
Deferred tax liabilities
Net deferred tax assets

As ofJune 30, 2023
¥2,667
3,961¥(1,293)

As ofJune 30, 2022
¥2,4294,683¥(2,254)

As ofJune 30, 2023
$18,422(27,359)$(8,936)(2) Income Tax Expense
The breakdown of income tax expense is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Current tax expenses
Deferred tax expenses
Total income tax expense

Year ended
June 30, 2023
¥3,593(1,157)¥2,435

Year ended
June 30, 2023
¥3,747347¥4,095

Year ended
June 30, 2023
$24,820(7,997)$16,823

The causes of differences between the effective statutory tax rates and the average effective tax rates are as
follows:

Effective statutory tax rate
Expenses not subject to deduction
Impairment of goodwill
Retained earnings of affiliated companies
Impact on review of recoverability ofdeferred tax assets
Tax credit
Foreign income tax
Non-taxable items such as dividend income
OthersAverage actual tax rate

2023
31.5%
2.3
19.5
1.1

2022
31.5%
0.7
0.8
3.5

(7.1)
(5.8)
4.8
(14.3)
6.2
38.2%

3.5
(1.7)
1.7
0.1
(2.2)
37.9%

(Changes in Presentation)“Foreign income tax”, “Non-taxable items such as dividend income” and “Impairment of goodwill” which were
included in “Others” during the previous fiscal year, are presented separately due to their increased materiality,
starting from the fiscal year ended June 30, 2023. Notes for the previous fiscal year have been reclassified toreflect this change in the presentation.
As a result, 0.4% shown under “Others” for the previous fiscal year has been reclassified to 1.7% for “Foreign
income tax”, 0.1% for “Non-taxable items such as dividend income”, 0.8% for “Impairment of goodwill” and(2.2)% for “Others.”4218. Borrowings(1) Breakdown of Borrowings
The breakdown of borrowings is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Short-term borrowings
Current portionof long-term borrowings
Long-term borrowings(excluding current portion)
Total
Current liabilities
Non-current liabilities
Total

As of
As of
As of
June 30, 2023 June 30, 2022 June 30, 2023
¥22,047¥7,500$152,291
6,668

5,648

46,05817,385¥46,101¥28,716
17,385¥46,101

19,288¥32,436¥13,148
19,288¥32,436

120,084$318,434$198,349
120,084$318,434

Averageinterest rate
0.340%

Repayment
term
—

0.678

—
From July 31, 2024
1.070 to December 30, 2043
—%
—
—%
—
—
—
—%
—

(Notes)1.	The average interest rate shows the weighted average interest rate for the balance of borrowings at the end of
the period.
2.	Borrowings are classified as financial liabilities measured at amortized cost.
(2) Assets Pledged as Collateral and Corresponding Liabilities
Assets pledged as collateral and corresponding liabilities are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Assets pledged as collateral:
Cash and cash equivalents
Other current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Total
Corresponding liabilities:
Borrowings
Total

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥238
75
8,887
877
810
¥10,889

¥124
808
1,905
749
735
¥4,322$1,649518
61,386
6,062
5,597$75,213¥2,972¥2,972¥92¥92$20,529$20,529

In addition to the above, assets pledged as collateral that are eliminated in consolidation and the amounts
eliminated in consolidation are as follows:
Millions of Yen

Property, plant and equipment
Intangible assets
Shares of consolidated subsidiaries
Total
43

As of
June 30, 2023
¥490
14
4,939
¥5,444As ofJune 30, 2022
¥1,51412
4,190¥5,718

Thousands of
U.S. Dollars

As ofJune 30, 2023
$3,38898
34,116$37,60319. Lease(1) Right-of-Use Assets
The right-of-use assets are presented as “Right-of-use assets” in the consolidated statement of financial position.
For their changes and balances, please refer to “12. Property, Plant and Equipment.”(2) Lease Liabilities
Lease liabilities are presented as “Lease liabilities” in the consolidated statement of financial position.
For the maturity of these lease liabilities, please refer to “(4) Liquidity Risk Management” in “35. Financial
Instruments.”(3) Expenses and Total of Cash Outflows associated with leases
Expenses and total of cash outflows associated with leases other than those disclosed under “12. Property,
Plant and Equipment” are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Depreciation of right-of-use assets:
Buildings and structures
Machinery and vehicles
Tools, furniture and fixtures
Depreciation Total
Interest expenses on lease liabilities
Expenses incurred for leases ending within 12 months
Leases of low value
Total
Total of cash outflows associated with leases

Year Ended
June 30, 2023

Year Ended
June 30, 2022

Year Ended
June 30, 2023

¥2,500164
575¥3,240256
143
19¥3,660¥3,543¥2,592167
350¥3,11021250
28¥3,401¥3,223$17,271
1,136
3,976$22,384
1,771
988
137
$25,283$24,476

There are no significant variable lease payments in the measurement of lease liabilities nor revenue fromsublease of right-of-use assets.
The amount of commitment for short-term leases at June 30, 2023 is ¥30 million ($208 thousand).
(4) Extension Option (Lessee)
In the Group, each company is responsible for managing leases, with lease terms negotiated individually
resulting in widely different lease terms.
The real estate lease mainly for offices includes extension options, many of which are those for one year or thesame period as in the original agreement.
This option is exercised as necessary by contracting parties to the lease in utilizing real estate for business. It is
included in the lease period if the exercise of the extension option is reasonably certain.

44

(5) Maturity Analysis (Lessor)
The Group mainly offers real estate for lease.
Maturities of lease payments in operating lease transactions are as follows:Year ended June 30, 2023
Millions of Yen

Within a year

More than 1 year
Less than 2 years

More than 2 years
Less than 3 years

More than 3 years
Less than 4 years

More than 4 years
Less than 5 years

More than 5
years

¥600

¥322

¥322

¥322

¥311

¥501

Within a year

More than 1 year
Less than 2 years

More than 2 years
Less than 3 years

More than 3 years
Less than 4 years

More than 4 years
Less than 5 years

More than 5
years$4,144$2,224$2,224$2,224$2,151$3,464

Within a year

More than 1 year
Less than 2 years

More than 2 years
Less than 3 years

More than 3 years
Less than 4 years

More than 4 years
Less than 5 years

More than 5
years

¥617

¥559

¥284

¥301

¥301

¥802

Lease fee

Total

¥2,379Thousands of U.S Dollars

Lease fee

Total

$16,435

Year ended June 30, 2022
Millions of Yen

Lease fee

Total

¥2,866(6) Risk Management Strategy (Lessor)
The Group receives leasehold deposits to ensure the collection of restoration costs for property.
(7) Lessor operating lease income
For lessor operating lease income information, please refer to “14. Investment Property (2) Revenue andExpenses from Investment Property.”

20. Trade and Other Payables
The breakdown of trade and other payables is as follows:
Millions of Yen

Trade payables
Other payables
Total

As of
June 30, 2023
¥9,036
6,141¥15,177

As ofJune 30, 2022
¥7,371
3,028¥10,400

Trade and other payables are classified as financial liabilities measured at amortized cost.

45

Thousands of
U.S. Dollars

As ofJune 30, 2023
$62,419
42,417$104,83621. Other Financial Liabilities
The breakdown of other financial liabilities is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Financial liabilities measured at amortized cost:
Deposit received
OthersFinancial liabilities measured at fair value
through profit or loss:
Interest rate and currency swaps
Total
Current liabilities
Non-current liabilities
Total

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥3,439682¥4,561
665$23,757
4,713—¥4,121¥3,439682¥4,121—¥5,226¥4,561
665¥5,226—$28,471$23,757
4,713$28,471

22. Employee Benefit Expenses
As the defined benefit-type plans, the Company and its consolidated subsidiaries have established funded andunfunded defined benefit pension plans and a lump sum retirement payment plan. Moreover, increased
retirement payments may be provided for employees’ retirement. These pension plans are exposed to generalinvestment risks, interest rate risk, inflation risk, and other risks, which are not significant.
The funded defined benefit plan is managed by the pension fund which is legally separated from the Group. The
pension fund’s board of directors and pension fiduciaries are required by law to act while placing top priority on
the interest of plan participants, and responsible for managing assets under the plan in accordance with theprescribed policies. The corporate pension fund falls under related parties.
(1) Defined Benefit System
a. Reconciliation Table for Defined Benefit Plan Liabilities and Plan Assets
Relationship between defined benefit plan liabilities/plan assets and the net defined benefit liability (asset)
recorded in the consolidated statement of financial position is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Present value of funded defined benefit obligations
Fair value of institutional assets
Total
Present value of non-funded defined benefit obligations
Impact of asset cap
Net defined benefit liability (asset)
Amount on the consolidated statement of financial position:
Retirement benefit liability
Retirement benefit asset
Net amount of defined benefit liability (asset)
recorded on the consolidated statement offinancial position

As ofJune 30, 2023
¥14,277(22,594)¥(8,316)
3,537
5,273
¥493

As of
June 30, 2022
¥14,096(20,295)¥(6,198)
3,858
2,611
¥271

As of
June 30, 2023
$98,616(156,063)$(57,446)
24,43236,425$3,4103,566(3,072)

3,896(3,624)

24,633(21,223)

¥493

¥271

$3,41046

b. Present Value of Defined Benefit Obligations
The change in the present value of defined benefit obligations is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance of present value of defined benefit
obligations at beginning of year
Service cost
Interest costs
Remeasurement
Mathematical differences caused by changes indemographic assumptions
Actuarial variances caused by changes infinancial assumptions
Mathematical differences caused by
performance revisions
Benefit payment amount
OthersBalance of present value of defined benefit
obligations at end of year

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥17,954
1,376
120
(384)

¥18,087
1,364
73
(323)

$124,018
9,510
832(2,658)

—

(23)

—

(440)

(386)

(3,043)55(1,195)(57)

86(1,256)9384(8,255)(398)¥17,814¥17,954$123,048

The weighted average duration of defined benefit plan liabilities as of June 30, 2023 and as of June 30, 2022 are
8.3 years and 8.5 years, respectively.
c. Fair Value Reconciliation Table for Institutional Assets
The changes in the fair value of institutional assets are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance of fair value of institutional assets
at beginning of year
Interest income
Remeasurement
Revenue on institutional assets
Contribution from business owner
Benefit payment amount
OthersBalance of fair value of institutional assets
at end of year

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥20,295
143
1,782
1,782
1,201
(832)
4

¥20,253
80
(150)
(150)
1,164
(1,058)6$140,184
990
12,30912,3098,299(5,750)29¥22,594¥20,295$156,063

The Group plans to make contributions of ¥1,227 million to the plan assets during the fiscal year ending June30, 2024.

47

d. Breakdown of Plan Assets
The breakdown of plan assets by major item is as follows:
Millions of Yen

Cash and cash equivalents
Equity instruments
Domestic stocks
Foreign stocks
Debt instruments
Domestic bonds
Foreign bonds
Life insurance general account
OthersTotal

As ofJune 30, 2023
¥0
9,742
5,045
4,697
8,218
5,978
2,240
4,048
583
¥22,594

As ofJune 30, 2022
¥0
8,323
4,444
3,879
7,426
5,669
1,756
3,852
692
¥20,295

Thousands of
U.S. Dollars

As ofJune 30, 2023
$067,29534,84832,446
56,77041,297
15,472
27,965
4,031$156,063

Most of the Group’s plan assets are managed as part of funds which are commingled with other companies’
investments and are classified into those without quoted market prices in active markets. The mixed managed
fund makes diversified investments mainly in stocks listed on active markets and bonds, in accordance with thecorporate pension fund rules. The life insurance general account represents the pension assets managed by life
insurance companies mainly through the general account in which principal and interest are guaranteed.
The investment policy for plan assets follows internal policies intended to secure stable returns in the medium tolong term in order to ensure the payment of defined benefit plan liabilities in the future. Specifically, they are
managed by setting a target rate of return and managing the risk profile of the different investments. Whenreviewing asset types and their related risk profiles, we take into account market and environmental risks.
e. Reconciliation Table for Effect of the Upper Limit on Assets
Changes in the impact of asset cap are as follows:
Millions of Yen

Impact of asset cap at balance at beginning of year
Limit of interest income
Remeasurement
Fluctuations in the impact of asset cap
Impact of asset cap at balance at end of year

Year ended
June 30, 2023
¥2,611
18
2,642
2,642
¥5,273

Year ended
June 30, 2022
¥1,6356969
969¥2,611Thousands of
U.S. Dollars

Year ended
June 30, 2023
$18,041
129
18,253
18,253$36,425

f. Main Actuarial Assumptions
Main assumptions used for actuarial calculation are as follows:

Discount rate

As ofJune 30, 2023
1.02%

As of
June 30, 2022
0.69%

48

g. Sensitivity Analysis
When the discount rate used for actuarial calculation changes by 0.5%, it will have the following impact on
the present value of defined benefit plan liabilities. While this analysis assumes all other variables remain thesame, changes in other assumptions may affect the sensitivity analysis in reality.
Thousands of
U.S. Dollars

Millions of Yen

Discount rate rise by 0.5%
Discount rate drop by 0.5%

As ofJune 30, 2023¥(653)
702

As ofJune 30, 2022¥(684)
736

As ofJune 30, 2023$(4,512)4,851

h. Multi-Employer Plan
The Group’s parent company entity and its domestic subsidiaries are members of the Engineering
Consultants Company Pension Fund (multi-companies fund) (hereinafter referred to as the “Fund”), a multiemployer plan which is classified as a defined benefit plan.
When the Fund is dissolved, or when withdrawing from the Fund, it may be necessary to contribute any
unfunded amounts as special contributions that may exist at the time of dissolution or withdrawal.
The risks of joining the Fund, which is a multi-employer plan, are different compared to a single-employer
plan, i.e., assets contributed by may be used for benefits of other employers’ employees, and the Group may
incur special contributions depending on its funded status when withdrawing from the Fund.
Regarding the plan, since events of participating companies may affect the distribution of plan assets andexpenses for participating companies, it is not possible to reasonably calculate the amount of pension assets
corresponding to the Group’s contributions. Accordingly, we are unable to obtain sufficient information toaccount for the defined benefit pension plan, and the amount of contributions is expensed for retirement
benefits, as with the defined benefit pension plan.
The financial position of the Fund according to the latest report on actuarial valuation at the end of the planyear are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Amount of pension assets
Sum of the actuarial debt in pension financecalculation and the amount of minimum reserve
Deduction amountContribution ratio of the company anddomestic subsidiaries

As ofJune 30, 2023
¥93,421

As ofJune 30, 2022
¥92,388

As ofJune 30, 2023
$645,284

71,564¥21,856

70,975¥21,412494,318$150,966

14.06%(As of end of March 2023)

13.74%
14.06%(As of end of March 2022) (As of end of March 2023)

The main causes for the above difference are outstanding prior service costs, general reserve, and contribution
shortfalls carried forward in the actuarial calculation of pensions. Liabilities are recorded for outstanding priorservice costs. Moreover, contribution shortfalls carried forward will be rectified by increasing the special
contribution rate as necessary based on the actuarial revaluation of pensions.
The above contribution ratio is calculated by dividing the total contributions made by the Group by the total
contributions to the entire Fund and is not consistent with the actual burden on the Group.
Moreover, the Group will make contributions of ¥268 million in the next consolidated fiscal year.

49

(2) Defined Contribution Plan
The amount recognized as expenses for the defined contribution plan is ¥2,430 million ($16,787 thousand) and¥2,307 million for the years ended June 30, 2023 and 2022, respectively.
(3) Employee Benefit Costs
The total amount of employee benefit costs included in Cost of sales and Selling, general and administrative
expenses in the consolidated statement of profit or loss is ¥60,445 million ($417,513 thousand) and ¥56,739 forthe years ended June 30, 2023 and 2022, respectively.

23. Provisions
The breakdown and changes in provisions are as follows:
Millions of Yen

Balance as of July 1, 2022
Increase during period
Decrease during period (used for purposes)
Decrease during period (reversal)
Interest expense by discounting
Exchange differences on translationof foreign operations
Balance as of June 30, 2023

Provision for loss on
construction contracts

Provision forcompensation

Provision for loss
on litigation

Other
provisions

¥131
448
(275)
176
—

¥522
1,844
(210)
(1,592)
—

¥600
29
(629)
—
—

¥74
308
(28)
(107)
0

¥1,3282,630(1,144)(1,523)
0

—
¥480

—
¥564

—
¥—

—
¥247

—
¥1,291

Provision for loss on
construction contracts

Provision forcompensation

Provision for loss
on litigation

$906
3,097
(1,902)
1,217—$3,60912,743(1,455)(10,999)—$4,144201(4,345)
—
—

$514
2,130
(198)
(740)
2

$9,174
18,172(7,902)(10,522)2—$3,317—$3,898—$——$1,707—$8,923

Total

Thousands of U.S. Dollars

Balance as of July 1, 2022
Increase during period
Decrease during period (used for purposes)
Decrease during period (reversal)
Interest expense by discounting
Exchange differences on translationof foreign operations
Balance as of June 30, 2023

Other
provisions

Total

The breakdown of provisions in the consolidated statement of financial position is as follows:
Millions of Yen

Current liabilities
Non-current liabilities
Total

As of
June 30, 2023
¥1,19794¥1,291

As ofJune 30, 2022
¥653
674
¥1,328

Thousands of
U.S. Dollars

As ofJune 30, 2023
$8,270653$8,92350

a. Provision for Loss on Construction Contracts
The expected amount of loss for uncompleted works at the end of the consolidated fiscal year under review isrecorded in order to prepare for future loss from construction works. The timing of expenditures will beaffected by progress of the project in the future.
b. Provision for Compensation
As we have present legal or constructive obligations as a result of past events, we have reasonably estimatedthe amount deemed required at the end of the consolidated current year under review and recorded the
expected amount of loss, in order to prepare for expenditures likely to be incurred with the compensation of
future damages.
c. Provision for Loss on Litigation
To prepare for the loss concerning litigation in light of current status of litigation matters, we havereasonably estimated the amount deemed required at the end of the consolidated fiscal year under review
and recorded the expected amount of loss. For details, please refer to “40. Subsequent Events.”
d. Others
Asset retirement obligations are included.

24. Other Liabilities
The breakdown of other liabilities is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Other current liabilities:
Outstanding paid leave
Accrued consumption taxes
Accrued expenses
Accrued bonuses
Remuneration payable for directors
Others
Total
Other non-current liabilities:
Others
Total

51

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥3,964
2,733
1,884
5,211
3
438
¥14,235¥3,080
2,286
1,394
5,662
114
419
¥12,957$27,380
18,88213,01835,99921
3,027$98,330

¥208
¥208

¥351
¥351

$1,442$1,442

25. Share Capital and Other Equity Items(1) Number of Authorized Shares and Total Number of Issued Shares
Changes in the number of authorized shares and total number of issued shares are as follows:
SharesYear Ended
June 30, 2023

Year Ended
June 30, 2022

Number of authorized shares:
Balance at beginning of period
Changes during the period
Balance at end of period

38,000,000—
38,000,000

38,000,000—
38,000,000

Total number of issued shares:
Balance at beginning of period
Changes during the period (Note 2,3)
Balance at end of period

15,060,314
5,838
15,066,152

15,048,568
11,746
15,060,314(Notes)1.	All shares issued by the Company are no-par-value common shares without any restrictions on rights, andissued shares are fully paid.
2.	The change in the total number of issued shares for the year ended June 30, 2022 is an increase of 11,746
shares due to the issuance of new shares as restricted stock compensation.
3.	The changes in the total number of issued shares for the year ended June 30, 2023 are an increase of 8,634
shares due to the issuance of new shares as restricted stock compensation and a decrease of 2,796 shares dueto the cancellation of treasury shares.
(2) Treasury Shares
The change in the number of treasury shares and the balance are as follows:
Millions of Yen

As of July 1, 2021
Changes during the period (Note 1)
As of June 30, 2022
Changes during the period (Note 2)
As of June 30, 2023

¥0
(34)
¥(34)
34
¥—

Shares

60
1,751
1,811
(1,811)—Thousands ofU.S Dollars

As of June 30, 2022
Changes during the period (Note 2)
As of June 30, 2023$(238)
238$—(Notes)1. 	The breakdown of changes for the year ended June 30, 2022 is as follows:		Purchase of shares less than one unit: 1,751 shares
2. 	The breakdown of changes for the year ended June 30, 2023 is as follows:		Purchase of shares less than one unit: 985 shares		Cancellation of treasury shares in accordance with the provisions of Article 178 of the Companies Act:
(2,796) shares52

(3) Capital Surplus
The Companies Act in Japan provides that no less than half of receiving payments or benefits for the issuance ofshares should be incorporated in share capital, and the rest should be incorporated in legal capital surplus undercapital surplus. Moreover, the Companies Act allows for the incorporation of legal capital surplus in sharecapital by the resolution of the general shareholders’ meeting.
(4) Retained Earnings
The Companies Act provides that one-tenth of the amount paid for dividends of surplus should be funded aslegal capital surplus or legal retained earnings until the total amount of legal capital surplus and legal retained
earnings reaches one-fourth of share capital. Funded legal retained earnings may be allocated for loss
compensation. Moreover, legal retained earnings may be used by the resolution of the general shareholders’meeting.

26. Dividend Payment
The amount of dividend payment is as follows:
For the year ended June 30, 2023
Resolution

Total cash paid
(Millions of Yen)

August 26, 2022
Extraordinary Boardof Directors’ meeting

Cash dividends
per share(Yen)¥1,882¥125

Total cash paid
(Thousands of U.S. Dollars)

Cash dividends per share(U.S. Dollars)$13,001$0.86

Record date

Effective dateJune 30, 2022 September 12, 2022

For the year ended June 30, 2022
Resolution

Total cash paid
(Millions of Yen)

August 30, 2021
Extraordinary Boardof Directors’ meeting¥1,128Cash dividends
per share
(Yen)

¥75

Record dateJune 30, 2021

Effective date

September 9, 2021

Dividends with effective dates that are different from the consolidated fiscal year.
For the year ended June 30, 2023
Resolution

September 8, 2023
Ordinary General
Meeting of Shareholders

53

Total cash paid
(Millions of Yen)

Cash dividends
per share(Yen)¥1,883¥125

Total cash paid
(Thousands of U.S. Dollars)

Cash dividends per share(U.S. Dollars)$13,008$0.86

Record dateJune 30, 2023

Effective date

September 11, 2023

For the year ended June 30, 2022
Resolution

Total cash paid
(Millions of Yen)

August 26, 2022
Extraordinary Boardof Directors’ meeting

Cash dividends
per share(Yen)¥1,882

Record date

¥125

Effective dateJune 30, 2022 September 12, 2022

27. Revenue(1) Disaggregation of Revenue
Revenue is disaggregated by region based on service areas. The breakdown of revenue and its relationship tosegment revenue is as follows:
Millions of Yen

Year ended June 30, 2023
Reportable Segments
Consulting

Urban &
SpatialDevelopment

EnergySubtotal

Total

Others¥46,047¥15,341¥18,845¥80,235¥782¥81,017

Europe, Middle East, Central Asia, North Africa

1,585

17,155899

19,640—19,640Southeast Asia, East Asia, Oceania

11,247811

558

12,617—

12,617

South Asia

12,971359

197

13,528—13,528America

5,432

4,301

64

9,798

—

9,798

Sub-Saharan Africa, Africa

4,346

102

289

4,738

—

4,738

Japan

OthersTotal revenue

187

—

—

187

—

187

¥81,818¥38,071¥20,855¥140,745¥782¥141,527

Thousands of U.S. Dollars

Year ended June 30, 2023
Reportable Segments
Consulting

Urban &
SpatialDevelopment

EnergySubtotal$318,062$105,968$130,173$554,205$5,402$559,607

Europe, Middle East, Central Asia, North Africa

10,950118,500

6,210

135,661—

135,661Southeast Asia, East Asia, Oceania

77,688

5,604

3,859

87,151—

87,151

South Asia

89,600

2,480

1,365

93,445—93,445

America

37,52429,708448

67,681—

67,681Sub-Saharan Africa, Africa

30,021708

2,000

32,729—32,729Others

1,293

—

—

1,293

—

1,293

$565,141$262,971$144,056$972,169$5,402$977,571

Japan

Total revenue

Total

Others54

Millions of Yen

Year ended June 30, 2022
Reportable Segments
Consulting

Urban &
SpatialDevelopment

EnergySubtotal¥44,089¥14,466¥17,207¥75,762¥783¥76,546

1,453

16,627607

18,688—18,688Southeast Asia, East Asia, Oceania

9,958

857

488

11,304—

11,304South Asia

10,389312240

10,941—

10,941

America

4,533

3,748

22

8,304

—

8,304

Sub-Saharan Africa, Africa

4,373

79

234

4,687

—

4,687

Japan
Europe, Middle East, Central Asia, North Africa

OthersTotal revenue

Total

Others

202

—

—

202

—

202

¥75,000¥36,091¥18,799¥129,891¥783¥130,674(2) Contract Balances
The breakdown of receivables, contract assets, and contract liabilities arising from contracts with customers are
as follows:
Millions of Yen

Receivables arising from contracts with customers
Contract assets
Contract liabilities

As of
As of
June 30, 2023 June 30, 2022
¥24,299¥24,880
32,146
26,450
10,663
8,837

Thousands of
U.S. Dollars

As of
As of
July 1, 2021 June 30, 2023
¥20,092$167,845
24,327222,044
10,64573,657

Contract assets are principally related to work performed to-date which is not yet completed and for which
payment is not yet unconditional, and is presented as “Contract assets” on the consolidated statement offinancial position. Contract assets are transferred to receivables when service provision is completed and theright for payment becomes unconditional.
Contract liabilities are mainly related to advances received, and presented as “Contract liabilities” on the
consolidated statement of financial position.
Significant changes in contract assets for the year ended June 30, 2023 are an increase of ¥94,312 million($651,441 thousand) due to progress on contracts and a decrease of ¥88,900 million ($614,056 thousand) due tothe transfer to receivables. Significant changes in contract assets for the year ended June 30, 2022 are an
increase of ¥85,943 million due to progress on contracts and a decrease of ¥84,105 million due to the transfer toreceivables.
Significant changes in contract liabilities for the year ended June 30, 2023 are an increase of ¥31,604 million($218,302 thousand) due to the receipt of advances received and a decrease of ¥30,027 million ($207,410
thousand) due to revenue recognition. Significant changes in contract liabilities for the year ended June 30, 2022
are an increase of ¥29,511 million due to the receipt of advances and a decrease of ¥31,661 million due torevenue recognition.

55

Revenue recognized in the reporting period that was included in the contract liability balance at the beginningof the period is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Revenue recognized in the reporting period thatwas included in the contract liability balance atthe beginning of the period

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥7,626¥8,248$52,677

The amounts of revenue recognized in the year ended June 30, 2023 and 2022 from the performance obligations
satisfied (or partly satisfied) in previous periods are less than 1% of the revenue in the consolidated fiscal year,
respectively.
(3) Transaction Price Allocated to Remaining Performance Obligations
The total transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied)is as follows:
Millions of Yen
Reportable Segments

As of June 30, 2023

Consulting

Urban & Spatial
Development

Transaction price allocated tounsatisfied (or partially unsatisfied)
performance obligations¥135,807¥37,651

As of June 30, 2023
Transaction price allocated tounsatisfied (or partially unsatisfied)
performance obligations

EnergyTotal

Others¥25,495¥1

Thousands of U.S Dollars
Reportable Segments
OthersUrban & Spatial
Consulting
EnergyDevelopment$938,055$260,071$176,105$11¥198,956

Total$1,374,244(Note)
The above amount includes consideration arising from contracts with customers.
For the transaction price allocated to remaining performance obligations, revenue is recognized according to theprogress on each performance obligation. Revenue is expected to be recognized within approximately 8 years in theConsulting Business, approximately 2 years in the Urban & Spatial Development Business and approximately 5 years
in the Energy Business.
Millions of Yen
Reportable Segments

As of June 30, 2022
Transaction price allocated tounsatisfied (or partially unsatisfied)
performance obligations

Consulting

Urban & Spatial
Development¥140,734¥30,769

Energy¥23,004

Others¥—Total¥194,508(Note)
The above amount includes consideration arising from contracts with customers.
For the transaction price allocated to remaining performance obligations, revenue is recognized according to theprogress on each performance obligation. Revenue is expected to be recognized within approximately 8 years in theConsulting Business, approximately 2 years in the Urban & Spatial Development Business and approximately 6 years
in the Energy Business.

5628. Operating Expenses
The primary breakdown of cost of sales, and selling, general and administrative expenses by type is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Employee benefits expenses
Outsourcing expenses
Communication and transportation expenses
Depreciation and amortization

Year ended
June 30, 2023
¥60,445
38,9907,200
5,305

Year ended
June 30, 2022
¥56,739
36,2195,265
4,976

Year ended
June 30, 2023
$417,513
269,320
49,73536,643

29. Other Income and Other Expenses(1) Other Income
The breakdown of other income is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Dividend income:Financial assets measured at fair value throughprofit or loss
Gain on investments in securities:
Financial assets measured at fair value throughprofit or loss
Gain on sale of shares of subsidiaries andassociates
OthersGovernment grants
Insurance claim income
OthersTotal

57

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥84

¥65

$581

629

74

4,348

1,061
5
381
908
606
¥3,677

—
—
284
365
299
¥1,090

7,328
36
2,636
6,277
4,189
$25,400

(2) Other Expenses
The breakdown of other expenses is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥50
3,943
936
—
497
¥5,428

¥—
281
542
315
205
¥1,344$349
27,240
6,469
—
3,434
$37,494

Loss on investments in securities:
Financial assets measured at fair value throughprofit or loss
Impairment losses
Provision for compensation
Provision for loss on litigation
Others
Total(Note)
Financial assets measured at fair value through profit or loss includes a return of ¥891 million yen ($5,100
thousand) on the investment of PT. Arkora Hydro shares. Gain on sale of shares of subsidiaries and associates
was the result of sales of shares of PT. Arkora Hydro and shares of Ironmont Hydro Pte. Ltd., which was a
subsidiary of the Company. Among gain on sale of shares of subsidiaries and associates, the residual interest in
Ironmont Hydro Pte. Ltd., which the Company holds after the loss of control, measured at fair value as of thedate of loss of control is ¥738 million yen ($6,157 thousand).

30. Finance Income and Finance Costs(1) Finance Income
The breakdown of finance income is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Interest income:Financial assets measured at amortized cost
Dividend income:Equity financial assets measured at fair value
through other comprehensive income
Foreign exchange gain
Gain on valuation of derivatives
Others
Total

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥242

¥350

$1,678

168
388
274
0
¥1,074

98
787
979
2
¥2,218

1,164
2,683
1,892
1
$7,420(2) Finance Costs
The breakdown of finance costs is as follows:
Millions of Yen

Interest expenses
Others
Total

Year ended
June 30, 2023
¥658
123
¥781

Year ended
June 30, 2022
¥483
—
¥483

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$4,547851$5,39858

31. Other Comprehensive Income
Amounts arising during the fiscal year, reclassification adjustments to profit or loss and tax effects by item ofother comprehensive income are as follows:
Thousands of
U.S. Dollars

Millions of Yen

Item that will not be reclassified to profit or loss:
Equity financial assets measured at fair value
through other comprehensive income:Changes during the year
Amount of tax effects
Equity financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans:
Changes during the year
Amount of tax effects
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method:
Changes during the year
Amount of tax effects
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss:
Cash flow hedges:
Changes during the year
Reclassification adjustments
Amount before income tax effectAmount of tax effects
Cash flow hedges
Exchange differences on translation of foreign operations:
Changes during the year
Reclassification adjustments
Amount before income tax effectAmount of tax effects
Exchange differences on translation of foreign operations
Share of other comprehensive income ofinvestments accounted for using equity
method:Reclassification adjustments
Before adjustments to tax effects
Amount before income tax effectAmount of tax effects
Share of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Total other comprehensive income

59

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥622
(198)

¥(288)
91$4,302(1,369)

424

(196)

2,933

(486)
152
(333)

(800)
252
(547)

(3,362)
1,056(2,306)

1
—

(1)
—

9
—

1
92

(1)
(745)

9
637

—
8
8
(2)
6

—
8
8
(2)
6

—
61
61
(19)
41

1,415
—
1,415
(22)
1,392

2,788
—
2,788
(30)
2,757

9,779
—
9,779
(157)
9,621

72
—
72
—

77
—
77
—

503
—
503
—

72
1,471
¥1,56477
2,841¥2,096503
10,166$10,80332. Earnings per ShareThousands of
U.S.Dollars

Millions of Yen

Year ended
June 30, 2023
¥3,093

Profit attributable to owners of parent

Year ended
June 30, 2022
¥6,579Year ended
June 30, 2023
$21,366

SharesYear ended
June 30, 2023

Year ended
June 30, 2022

15,064,420

15,056,069

Weighted-average number of sharesof common stock

Yen

Year ended
June 30, 2023
¥205.34

Basic earnings per share

U.S.Dollars

Year ended
June 30, 2022
¥436.98

Year ended
June 30, 2023
$1.42

Diluted earnings per share are not included because there are no contingent shares.

33. Cash Flow Information(1) Changes in Liabilities from Financing Activities
Changes in liabilities from financing activities are as follows:
Millions of Yen
Short-termborrowings

Balance as of July 1, 2021
Changes due to cash flows from financing activities
Changes arising from acquisition or loss of control
over subsidiaries or other businesses
Impact of changes in foreign exchange rates
Changes in fair value
New lease agreements
Decrease due to deconsolidation
Other changes
Balance as of June 30, 2022
Changes due to cash flows from financing activities
Changes arising from acquisition or loss of control
over subsidiaries or other businesses
Impact of changes in foreign exchange rates
Changes in fair value
New lease agreements
Decrease due to deconsolidation
Other changes
Balance as of June 30, 2023

Long-term
borrowings

Lease liabilities

Derivative liabilities(Note)

Total

¥—
7,464

¥27,032(3,346)¥9,378(3,050)¥(39)—¥36,372
1,067

35
—
—
—
—
—
¥7,50014,506

—
1,636
—
—
—
86
¥24,936(1,299)

—
345
—
4,229
(1,614)(2)¥9,286(3,173)

—
—
(900)
—
—
—
¥(940)
—

35
1,509
(900)
4,229
(1,614)
84¥40,782
10,033

27
(1)
—
—
—
16
¥22,047

45
331
—
—
—
38
¥24,053

—
540
—
4,336
(523)
82
¥10,549

—
—
(0)
—
—
—
¥(940)

72
870
(0)
4,336
(523)
137
¥55,70960

Thousands of U.S. Dollars

Balance as of June 30, 2022
Changes due to cash flows from financing activities
Changes arising from acquisition or loss of control
over subsidiaries or other businesses
Impact of changes in foreign exchange rates
Changes in fair value
New lease agreements
Decrease due to deconsolidation
Other changes
Balance as of June 30, 2023

Short-termborrowings

Long-term
borrowings$51,804
100,196
187
(7)
—
—
—
110
$152,291

Lease liabilities

Derivative liabilities(Note)$172,245(8,974)$64,141(21,917)$(6,493)—$281,698
69,304

314
2,288
—
—
—
268
$166,142—
3,732—
29,951(3,615)572$72,864

—
—
(4)
—
—
—
$(6,497)

501
6,012
(4)
29,951(3,615)951$384,801

Total

Note: They are held to hedge interest and foreign currency exchange effects on borrowings.
(2) Non-cash Transactions
Non-cash transactions are acquisition of property, plant and equipment through leasing transactions; for thoseamounts, please refer to 12. Property, Plant and Equipment.
(3) Sale of shares of companies accounted for using equity method
The Company sold a part of shares of PT. Arkora Hydro, which is a company accounted for using the equity
method, during the fiscal year ended June 30, 2023. The proceeds from sale of shares of ¥1,636 million ($11,303
thousand) are included in “Proceeds from sale of shares of subsidiaries and associates” in the Consolidated
Statement of Cash Flows.
(4) Loss of control over a subsidiary
The following are the main contents of assets and liabilities, and the relationship of income and expenditure byreceived consideration and transfer at the time of loss of control over a subsidiary as a result of a sale of allshares.
Thousands of
U.S. Dollars

Millions of Yen

Assets at loss of control:
Current assets
Non-current assets
Liabilities at loss of control:
Current liabilities
Non-current liabilities

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥3,731
1,582¥——$25,772
10,931

32
—

—
—

225
—
Thousands of
U.S. Dollars

Millions of Yen

Consideration received in cash
Cash and cash equivalents out of assets at thetime of the loss of control
Proceeds from sale of the subsidiaryYear ended
June 30, 2023
¥2,724

Year ended
June 30, 2022¥—

Year ended
June 30, 2023
$644

(2,637)

—

(623)

¥87

¥—

$20

Note: Proceeds from sale of the subsidiary of ¥87 million ($20 thousand) are included in “Proceeds from sale ofshares of subsidiaries and associates” in the Consolidated Statement of Cash Flows.

6134. Shared-based Payments(1) Restricted Stock Compensation System
The Company intends that the directors (not including outside directors; “Eligible Directors”) share benefits
and risks of stock price fluctuations with shareholders in order to further enhance their willingness to contributeto improving share price and enhancing corporate value. Therefore, the Company has introduced a restricted
stock compensation system which issues restricted stock to Eligible Directors.
Shares with restrictions on transfer are estimated at the fair value on the grant date, and recorded as selling,
general and administrative expenses over the vesting period, while the same amount is recognized in equity on
the consolidated statement of financial position. In the determination of fair value, adjustment of expected
dividends is not considered.
2022

2021

2020

2019

2018

Number of shares granted(Shares)

8,634

11,74614,996

13,514

14,495Weighted-average fair value
at the grant date(Yen)

¥3,605¥3,595¥2,880¥3,125¥3,095

Evaluation method

Fair value is measured on the basis of an observable market priceCategory of grantees

Director of the Company (except outside director )Settlement

Equity settlement

Transfer restriction period

3 years

Lifting of transfer
restriction

On the condition that an eligible director to whom the restricted stocks
were allotted has continuously held the position of director of theCompany during the transfer restriction period, the transfer restriction
on all of his or her allotted stock is lifted by the Company when thetransfer restriction period expires.

(2) Share-based Payment Expenses
Thousands of
U.S. Dollars

Millions of Yen

Share-based payment expenses:
Restricted stock compensation system
Total

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

¥44
¥44

¥43
¥43

$310
$310

62

35. Financial Instruments(1) Capital Management
The Group has capital investment policies intended to generate growth based on the medium- to long-term
management strategies, which may include additional capital investment through financing. The aim is toincrease corporate value and strive to improve capital efficiency while taking into account the target level ofreturn on equity (ROE).
As the main indicators for capital management, the Group uses the ratio of equity attributable to owners ofparent and return on equity.
The Group’s ratio of equity attributable to owners of parent and return on equity attributable to owners ofparent are as follows:

Ratio of equity attributable to owners of parent
Return on equity attributable to owners of parent

As ofJune 30, 2023
41.4%
3.9%

As of
June 30, 2022
44.9%
8.8%

These indicators are periodically reported to management and monitored.
There are no restrictions on the Group’s capital.
(2) Financial Risk Management
The Group is exposed to financial risks (credit risk, liquidity risk, foreign exchange risk, interest rate risk, andrisk of market price fluctuations) in the process of conducting management activities, and manages these risks
based on certain policies in order to mitigate such financial risks. Moreover, it is the Group’s policy not toengage in speculative transactions, using derivative transactions to avoid risks of foreign exchange and interest
rate fluctuations.
(3) Credit Risk Management
Credit risk refers to the risk of incurring financial losses due to counterparty defaults on contractual obligations.
In accordance with the credit management policies, the Group has a system for managing due dates andbalances on obligations from each counterparty, as well as periodically assessing the creditworthiness of thosecounterparties.
Moreover, we execute and manage derivative transactions by assessing them at investment meetings andimplementing them in accordance with internal policies and authorizations. Moreover, when entering into
derivative contracts, we deal only with financial institutions with strong creditworthiness in order to mitigate
credit risk.
a. Trade and Other Receivables, and Contract Assets
Based on counterparties’ creditworthiness as well as the payment status of receivables, the Groupmanages risks by classifying trade and other receivables and contract assets into receivables with credit
impairment and those without credit impairment. For receivables without credit impairment, we provide
allowance for expected credit losses, taking into account the forecasts, the past-due status of receivables,
and historical experience. For receivables with credit impairment, we provide the difference between
contractual cash flows and collectible cash flows as allowance for expected credit losses.
We evaluate creditors who are overdue in payment for potential default or impairment risk.
For trade and other receivables, and contract assets, we recognize an allowance for expected credit losses
in the same amount as the lifetime expected credit losses.
The calculation of the expected credit losses for trade and other receivables, and contract assets is asfollows:

63

Millions of Yen%

As of June 30, 2023
Trade and otherreceivables,
Contract assets

Non credit-impaired financial assets
Credit-impaired financial assets
Total

Lifetime expectedcredit losses¥58,859
1,330¥60,189

Expected credit
loss rates

¥90
1,139
¥1,230

0.15%
85.67
2.04%

Thousands of U.S. Dollars

As of June 30, 2023
Trade and otherreceivables,
Contract assets

Non credit-impaired financial assets
Credit-impaired financial assets
Total

Lifetime expectedcredit losses$406,555
9,190$415,746

$626
7,873
$8,500Millions of Yen%

As of June 30, 2022
Trade and otherreceivables,
Contract assets

Non credit-impaired financial assets
Credit-impaired financial assets
Total

Lifetime expectedcredit losses¥53,449
1,036¥54,485

Expected credit
loss rates

¥70
922
¥992

0.13%
88.99
1.82%

Changes in the allowance for expected credit losses related to trade and other receivables, and contract
assets is as follows:
Millions of Yen
Non credit-impaired
financial assets

Balance as of July 1, 2021
Increases during period
Decreases during period (reversal)
Decreases during period (direct depreciation)
OthersBalance as of June 30, 2022
Increases during period
Decreases during period (reversal)
Decreases during period (direct depreciation)
OthersBalance as of June 30, 2023

¥86
70
(86)
—
—
¥70
90
(70)
—
—
¥90

Credit-impaired
financial assets

¥964
163
(178)
(43)
16
¥922
343
(87)
(55)
17
¥1,13964

Thousands of U.S. Dollars
Non credit-impaired
financial assets

Balance as of June 30, 2022
Increases during period
Decreases during period (reversal)
Decreases during period (direct depreciation)
OthersBalance as of June 30, 2023

Credit-impaired
financial assets

$487
626
(487)
—
—
$626

$6,369
2,374
(604)
(385)
118
$7,873

Provision and reversal of allowance for expected credit losses are recorded in “Selling, general andadministrative expenses” on Consolidated statement of profit or loss.
b. Other Financial Assets
As the amount of the allowance for expected credit losses is not material, the statement on changes in theallowance for expected credit losses is omitted.
(4) Liquidity Risk Management
Liquidity risk is the risk that when fulfilling repayment obligations of mature financial liabilities, the Group
becomes unable to repay them on the due date.
The Group manages liquidity risk by preparing appropriate repayment funds, securing credit lines available atany time from financial institutions, and continuously monitoring cash flow plans and results.
Outstanding financial liabilities (including derivative financial instruments) by due date are as follows:
Millions of Yen

As of June 30, 2023
Contractual
cash flows

Non-derivative financial liabilities:
Short-term borrowings
Trade Payables
Long-term borrowings
Deposit
Lease liabilities
OthersDerivative financial assets:
Proceeds
Payments
Total

65

Due within
one year

Due after one year
through five years

Due after fiveyears

¥22,047
15,177
26,393
11,9653,439
682¥22,047
15,177
7,210
3,029
3,439
—

¥—
—
13,577
5,997
—
—

¥—
—
5,605
2,938
—
682

(3,842)
2,919¥78,783(1,285)976¥50,596(2,556)
1,942¥18,960——¥9,226

Thousands of U.S. Dollars

As of June 30, 2023
Contractual
cash flows

Non-derivative financial liabilities:
Short-term borrowings
Trade Payables
Long-term borrowings
Deposit
Lease liabilities
OthersDerivative financial assets:
Proceeds
Payments
Total

Due within
one year

Due after one year
through five years

Due after fiveyears

$152,291
104,836
182,30782,64823,757
4,713$152,291
104,836
49,80520,92623,757—$——
93,783
41,424——$——38,71920,298—
4,713(26,540)
20,165$544,180(8,879)6,746$349,484(17,661)
13,418$130,965——$63,730

Millions of Yen

As of June 30, 2022
Contractual
cash flows

Non-derivative financial liabilities:
Short-term borrowings
Trade Payables
Long-term borrowings
Deposit
Lease liabilities
OthersDerivative financial assets:
Proceeds
Payments
Total

Due within
one year

Due after one year
through five years

Due after fiveyears

¥7,50010,40026,670
10,321
4,561
665¥7,50010,400
5,896
2,912
4,561
—

¥—
—
16,771
5,429
—
—

¥—
—
4,001
1,979
—
665

(4,880)3,899¥59,138(1,233)980¥31,018(3,647)
2,919¥21,473——¥6,646(5) Foreign Exchange Risk Management
Since the Group is engaged in business internationally, our business performance is greatly affected by currency
exchange rate fluctuations between the Japanese yen and the U.S. dollar as well as other foreign currencies.
In order to mitigate foreign exchange risk, the Group strives to mitigate the risk by using interest rate andcurrency swaps for the purpose of managing the risk of foreign exchange fluctuations arising from thesetransactions in foreign currencies.
Analysis of Foreign Exchange Sensitivity
The impact on profit before tax in the consolidated statement of profit or loss in each reporting period, when theJapanese yen appreciates 10% against the U.S. dollar is as follows:
The above analysis assumes other variables to be constant in the analysis.
Millions of Yen

Profit before tax

Year ended
June 30, 2023¥(388)

Year ended
June 30, 2022
¥164

Thousands of
U.S. Dollars

Year ended
June 30, 2023$(2,684)66

(6) Management of Interest Rate Risk
While the Group is exposed to various risks of interest rate fluctuations in the business activities, there is not asignificant risk of interest rate fluctuations for borrowings held, because most borrowings are at fixed interest
rates, and interest rate and currency swaps are used to mitigate the risk of interest rate fluctuations. Moreover,there is not a significant risk of interest rate fluctuations for bonds held and loans receivable.
(7) Management of Risk of Market Price Fluctuations
The Group is exposed to share price fluctuation risk arising from equity instruments. To manage this pricefluctuation risk, we periodically grasp market prices and the financial position of issuers to review our holdings,
as necessary.
When the market price of equity instruments held by the Group at the end of a period changes by 10%, it will
have the following impact on profit before tax and other comprehensive income (before deducting the tax
effect).
It is assumed that other variables are constant in the analysis.
Millions of Yen

Profit before tax
Other comprehensive income

Year ended
June 30, 2023
¥204
229

Year ended
June 30, 2022
¥198
351

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$1,415
1,588(8) Fair Value of Financial Instruments
For financial instruments measured at fair value, we classify investments into Level 1 to 3, according to theobservability and significance of inputs used to determine the fair value.
Level 1: Market price of the identical assets or liabilities in active markets (unadjusted)
Level 2: Fair value calculated by using directly or indirectly observable values other than those under Level 1
Level 3: Fair value calculated by valuation techniques based on unobservable inputs
a. Method of Calculating Fair Value
The method of calculating the fair value of financial instruments is as follows:(Cash and Cash Equivalents, Trade and Other Receivables, Trade and Other Payables)
The fair value is close to the book value, as they are settled in a short period of time.
(Other Financial Assets, Other Financial Liabilities)
The fair value of listed stocks is calculated using the market price at the end of the period. The fair value of
unlisted stocks is calculated using the valuation method based on discounted future cash flows, a method
based on the market prices of comparable companies, and a method based on net asset value. For time
deposits with a deposit period of more than three months, and deposits received, the fair value is close to
the book value because they are settled in a short period of time.
As financial assets or liabilities measured at fair value through profit or loss, derivatives are calculated
based on the price presented by counterparty financial institutions.
As contingent consideration from a business combination, 30% of the share acquisition price will be paidback based on an earn-out agreement in the case that the accumulated profit after taxes of ASAP Mobility
Sdn. Bhd. fails to reach the target from the fiscal year ended December 2022 to the fiscal year ending
December 2024. This contingent consideration is also recognized as a financial asset measured at fair value
through profit or loss. The fair value of the contingent consideration is calculated as present value thatincorporates the probability of achieving the target in terms of an amount that can be paid back. Change infair value related to the contingent consideration is recorded in “Finance costs” or “Finance income.”(Borrowings)
Borrowings are calculated using the present value obtained by discounting future cash flows by the
expected interest rate when a similar agreement is newly executed.

67

b. Financial Instruments Measured at Amortized Cost
The book value and fair value of financial instruments measured at amortized cost are as follows:
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

¥24,053¥24,936$166,142

23,79826,436

164,380

Carrying amount:
Financial liabilities measured at amortized cost:
Long term borrowings
Fair value:
Financial liabilities measured at amortized cost:
Long term borrowings(Notes)
1. Among financial instruments measured at amortized cost, the above table does not include those whose bookvalue is reasonably approximate to the fair value.
2. The fair value of long-term borrowings is classified into Level 2.
c. Financial Instruments Measured at Fair Value
The fair value hierarchy of financial instruments measured at fair value is as follows:
Millions of Yen

As of June 30, 2023
Level 1

Level 2

Level 3

Total

Financial assets:
Financial assets measured at fair value
through profit or loss:
Derivative assets
Other financial assets
Financial assets measured at fair value
through other comprehensive income:
Other financial assets
Total

¥—
1,027

¥940
—

¥—
1,021

¥940
2,049

2,046
¥3,074—¥940

253¥1,274

2,299¥5,289Financial liabilities:
Financial assets measured at fair value
through profit or loss:
Derivative liabilities
Total

¥—
¥—

¥—
¥—

¥—
¥—

¥—
¥—

68

Thousands of U.S. Dollars

As of June 30, 2023
Level 1

Level 2

Level 3

Total

Financial assets:
Financial assets measured at fair value
through profit or loss:
Derivative assets
Other financial assets
Financial assets measured at fair value
through other comprehensive income:
Other financial assets
Total

$—
7,098

$6,497—$—
7,055$6,497
14,153

14,134$21,232—$6,4971,749$8,804

15,883$36,534

Financial liabilities:
Financial assets measured at fair value
through profit or loss:
Derivative liabilities
Total

$—
$—

$—
$—

$—
$—

$—
$—

Millions of Yen

As of June 30, 2022
Level 1

Level 2

Level 3

Total

Financial assets:
Financial assets measured at fair value
through profit or loss:
Derivative assets
Other financial assets
Financial assets measured at fair value
through other comprehensive income:
Other financial assets
Total

¥—
1,202

¥940
—

¥—
782

¥940
1,984

3,250
¥4,452—¥940

267¥1,0493,517¥6,442Financial liabilities:
Financial assets measured at fair value
through profit or loss:
Derivative liabilities
Total

¥—
¥—

¥—
¥—

¥—
¥—

¥—
¥—

Transfer between the levels of the fair value hierarchy is recognized on the date when an event or circumstancecausing the change in classification occurs. There are no significant reclassifications between the fair value
Levels 1 and 2 in each fiscal year.
d. Valuation Process
For financial instruments classified into Level 3, external valuation experts or appropriate valuation
experts conduct valuation and analysis of valuation results, in accordance with the valuation policies andprocedures approved by the person in charge of the business administration department. The valuation
results are reviewed and approved by the person in charge of the business administration department.
e. Qualitative Information on Financial Instruments Classified into Level 3
Significant inputs not observable concerning financial instruments classified into Level 3 are discountrates, PER, PBR, and non-liquidity discounts. The fair value increases (decreases) by a decline (rise) in the
discount rate, a rise (decline) in PER, a rise (decline) in PBR, and a decline (rise) in the non-liquidity
discount. The expected change in the fair value is not significant when non-observable inputs are replacedby reasonably possible alternative assumptions.

69

f. Reconciliation of Financial Instruments Classified into Level 3 from Beginning to End of Period
Changes in financial instruments classified into Level 3 from the beginning to the end of the period are as
follows:
Thousands ofMillions of Yen

Balance at beginning of period
Total gains or losses:
Profit or loss (Note 1)
Other comprehensive income (Note 2)
Purchases
Sales
Transfer from Level 3
Receipt from contingent consideration(Note 3)
Change in fair value of contingent
considerations
OthersBalance at end of period

U.S. Dollars

Year ended
June 30, 2023
¥1,049Year ended
June 30, 2022
¥1,020Year ended
June 30, 2023
$7,251

(47)
(14)
300
—
—

(27)
(451)
567
—
—

(328)
(99)
2,072
—
—

124

—

862

(123)
(14)
¥1,274—(58)¥1,049(851)(101)$8,804(Notes)1. Gains and losses included in profit or loss are those concerning financial assets measured at fair value
through profit or loss on the closing date. Among gains and losses recognized as profit or loss, thoseconcerning financial assets held at the end of the consolidated fiscal year are ¥(47) million ($(324) thousand)and ¥(27) million for the years ended June 30, 2023 and 2022, respectively. These gains and losses areincluded in “Other revenue” and “Other expenses” in the Consolidated statement of profit or loss.
2. Gains and losses included in other comprehensive income are those arising from equity financial assets
measured at fair value through other comprehensive income on the closing date. These gains and losses areincluded in “Equity financial assets measured at fair value through other comprehensive income” in theConsolidated statement of comprehensive income.
3. The financial asset that was recognized as contingent consideration at the time of acquiring shares of ASAP
Mobility Sdn. Bhd. to conduct a business combination.

7036. Significant Consolidated Subsidiaries
Significant consolidated subsidiaries as of June 30, 2023 are as follows:
Name

Location

Segment

Proportion of
Voting Rights
Held (%)

Nippon Civic Consulting Engineers Co., Ltd.
El Koei Co., Ltd.
Geoplan Namtech Inc.
Koei Research & Consulting Inc.
Nippon Koei Latin America-Caribbean Co., Ltd.
Nippon Koei Lac, Inc.
Nippon Koei Latin America - Caribbean, Mexico S. De R. L. De C.V.
Nippon Koei India Pvt. Ltd.
Nippon Koei Bangladesh Ltd.
Nippon Koei Vietnam International Co., Ltd.
Philkoei International, Inc.
PT. Indokoei International
Myanmar Koei International Ltd.
PT. Cikaengan Tirta Energi
ASAP Mobility Sdn. Bhd.
Nippon Koei Urban Space Co., Ltd.
Kisho Kurokawa Architect & Associates Co., Ltd.
BDP Holdings Limited
Building Design Partnership Limited
Quadrangle Architects Limited
Nippon Koei Energy Solution Co., Ltd
Koei System Inc.
Koei Energy Co., Ltd
Nippon Koei Energy Europe B.V.
RNK UK Investments Limited
Tollcux Investments Limited
Tollcux Finance Limited
Tollgate Energy Storage Limited
Cuxton Energy Storage Limited
Ruien Energy Storage NV
Nippon Koei Business Partners Co., Ltd
Nikki Corporation

Japan
Japan
Japan
Japan
Japan
PanamaMexicoIndia
Bangladesh
VietnamPhilippines
Indonesia
MyanmarIndonesia
Malaysia
Japan
Japan
United Kingdom
United Kingdom
Canada
Japan
Japan
Japan
Netherland
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Belgium
Japan
Japan

Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Consulting
Urban & Spatial Development
Urban & Spatial Development
Urban & Spatial Development
Urban & Spatial Development
Urban & Spatial Development
EnergyEnergyEnergyEnergyEnergyEnergyEnergyEnergyEnergyEnergyOthersOthers

85.3
100.0
56.0
100.0
100.0
100.0
100.0
99.9
99.9
100.0
40.0
80.0
70.0
90.0
80.0
100.0
100.0
100.0
100.0
49.0
100.0
100.0
100.0
100.0
80.0
51.2
100.0
100.0
100.0
51.0
100.0
100.0

(Notes)1. Our equity in Philkoei International, Inc. and Quadrangle Architects Limited is 50% or below; however, they
are treated as subsidiaries given our effective control over them.
2. Tamano Consultants Co., Ltd. succeeded the Company’s Urban & Spatial Development Business through a
company split (simple absorption-type split) on July 1, 2022, changed its trade name to Nippon Koei Urban
Space Co., Ltd. and changed its segment classification from the “Consulting Business” to the “Urban & Spatial
Development Business” on the same date.
There are no subsidiaries with individually significant non-controlling interests for the years ended June 30,2023 and 2022.

7137. Related Party Transactions(1) Related Party Transactions
Transactions with related parties for the year ended June 30, 2023 are as follows:
For details of subsidiaries and associates, please refer to “16. Investments and Joint Operations Accounted
for Using the Equity Method” and “36. Significant Consolidated Subsidiaries”.
There were no significant related party transactions during the years ended June 30, 2023 and 2022.
(2) Compensation for Main Executive Management
Millions of Yen

Short-term employee benefit expenses
Share-based payment expenses
Total

Year ended
June 30, 2023
¥311
44
¥355

Year ended
June 30, 2022
¥423
43
¥467

Thousands of
U.S. Dollars

Year ended
June 30, 2023
$2,148310$2,45838. Commitments
The commitments for expenditures after the closing date are as follows:
Millions of Yen

Purchase of property, plant and equipment
Total

As of
June 30, 2023
¥1,188¥1,188As ofJune 30, 2022
¥8,074¥8,074

Thousands of
U.S. Dollars

As ofJune 30, 2023
$8,212$8,212

39. Contingent Liabilities(1) Guaranteed Liabilities
The Group provides the following guarantees for borrowings from financial institutions of companies other thanconsolidated companies.
Millions of Yen

Bank loans of associates

As ofJune 30, 2023
¥—

As of
June 30, 2022
¥2,617

Thousands of
U.S. Dollars

As ofJune 30, 2023$—

(2) Litigation
On June 19, 2014, Nippon Civic Consulting Engineers Co., Ltd. (“NCC”), a consolidated subsidiary of theCompany, was sued by Osaka Prefecture for damages resulting from a project related to designing a shieldtunnel under tort liability. The Osaka High Court rendered a judgement on September 29, 2022, ruling that theCompany should pay damages of ¥623 million ($4,308 thousand) and delinquency charges on and after July 6,
2022, for ¥394 million ($2,725 thousand) of ¥623 million ($4,308 thousand), and the judgement became final.
The Company paid the amount of the judgment to Osaka Prefecture in October 2022.
The Group has no provision for some litigation cases currently pending as a reasonable estimate is not available
based on information currently available. Even if liabilities are incurred due to these cases of litigation, theimpact on the Group’s financial position and business performance would be immaterial.
In accordance with Paragraph 92 of the International Accounting Standard 37, “Provisions, Contingent
Liabilities and Contingent Assets,” we do not provide detailed disclosure of those cases considering that suchdisclosure could possibly put the Group in a disadvantageous position.

72

40. Subsequent Events(1) The Company established “Integrated Design and Engineering Holdings Co., Ltd.” (referred to as “Holdings
Co.” hereinafter) that is a holding company through a sole share transfer on July 3, 2023. In the wake of theestablishment of Holdings Co., the shares of the Company that became a wholly-owned subsidiary weredelisted on June 29, 2023, and Holdings Co. was listed on the Tokyo Stock Exchange on July 3, 2023.
(2) The Company resolved at its Board of Directors meeting on August 9, 2023, to have Holdings Co. succeed theCompany’s real estate management business and management of shares of subsidiaries and associates basedon the absorption-type demerger (hereinafter, the “Absorption-type Demerger”) effective October 1, 2023.
Accordingly, the Company and Holdings Co. entered into the Absorption-type Demerger Agreement on
August 14, 2023.
a. Matters Concerning the Counterparty of the Absorption-type Demerger(i)	Company name, location of the head office, name of the representative, amount of share capital,
amount of net assets, amount of total assets and description of businessCompany name
Integrated Design & Engineering Holdings Co., Ltd.
Location of head office
5-4 Kojimachi, Chiyoda-ku, Tokyo
Name of representative
Hiroaki Shinya, Director and Representative Executive President
Amount of share capital 7,522 million yen
Amount of net assets
To be determined
Amount of total assets
To be determined
Description of business Management of business activities and related thereto of group companies(ii)	Revenue, operating profit, ordinary profit, and net profit of the fiscal years ended in the most recent
three years	Since Holdings Co. was established on July 3, 2023, there is no financial position or operating results
for the latest fiscal year.
(iii) Chief shareholders and percentage of shares held against total number of issued shares
Percentage of shares
Name of chief shareholder
held by chiefshareholder (%)
The Master Trust Bank of Japan, Ltd. (Trust Account)
12.23
The ID&E Holdings Group Employee Shareholding Association
7.10
Custody Bank of Japan, Ltd. (Trust Account)
6.89
MUFG Bank, Ltd.
4.91
Meiji Yasuda Life Insurance Company
3.75
Mizuho Securities Co., Ltd.
2.54
Custody Bank of Japan, Ltd. (Pension Trust Account)
2.38
RE FUND 107–CLIENT AC
2.08
DFA INTL SMALL CAP VALUE PORTFOLIO
1.84
GOVERNMENT OF NORWAY
1.61(iv) Capital, personnel and business ties with the reporting company
Capital ties
Holdings Co. holds all of the issued shares of the Company.
Personnel ties
Some officers concurrently hold posts in both companies.
Business ties
The Company and Holdings Co. have concluded agreements such as outsourcing.
b. Objectives of the Absorption-type Demerger
To deepen group management from a medium- to long-term perspective and to ensure future growth
toward achieving the long-term management strategy of the Group, we established Holdings Co. as awholly owned parent company through a share transfer on July 3, 2023, and transitioned into a holding
company structure by splitting part of the Company’s businesses. In addition, to facilitate management of
the Group going forward, we decided to implement the Absorption-type Demerger with the Company
being the Splitting Company and Holdings Co. being the Successor Company for the Company’s real estate
management business and management of shares of subsidiaries and associates.

73

c. Method of the Absorption-type Demerger, Allotment Related to the Absorption-type Demerger and Other Detailsof the Absorption-type Demerger Agreement(i)	Method of the Absorption-type Demerger
This is an absorption-type demerger in which the Company is the Splitting Company and Holdings Co.
is the Successor Company.
(ii) Allotment related to the Absorption-type Demerger
As Holdings Co. holds all of the Company’s shares, there is no allotment of shares or other monetary
items under the Absorption-type Demerger.
(iii) Other details of the Absorption-type Demerger Agreement(a) Schedule of the Absorption-type Demerger and related procedures
Board of Directors meeting (the Company) to approve the Absorption-type August 9, 2023
Demerger Agreements
Board of Directors meeting (Holdings Co.) to approve the Absorption-type August 14, 2023
Demerger Agreement
Conclusion of the Absorption-type Demerger Agreement (the Company and August 14, 2023
Holdings Co.)
Effective date of the Absorption-type Demerger
October 1, 2023
Note: Since the Absorption-type Demerger falls within the category of a simple demerger specified
in Article 784, Paragraph 1 of the Companies Act for the Company and corresponds to a simplified
absorption-type demerger set out in Article 796, Paragraph 2 of the Companies Act for Holdings
Co., it is put into effect without holding shareholders’ meetings for approval for the Absorptiontype Demerger, respectively.
(b) Increase in share capital due to the Absorption-type Demerger
There will be no increase in the share capital of Holdings Co. associated with the Absorption-type
Demerger.
(c)	Handling of stock acquisition rights and corporate bonds with stock acquisition rights associatedwith the Absorption-type Demerger
There is no relevant information.
(d) Rights and obligations to be handed over to the Successor Company
Among the rights and obligations of the Company associated with its real estate managementbusiness and management of shares of subsidiaries and associates, Holdings Co. shall take overthose set out in the Absorption-type Demerger Agreement associated with the Absorption-type
Demerger.
d. Rationale for the Calculation of Shares in the Absorption-type Demerger
There is no relevant information.
e. Name of the Company that Becomes the Successor Company after the Absorption-type Demerger, Location of
the Head Office, Name of Representative, Amount of Share Capital, Amount of Net Assets, Amount of Total
Assets and Description of BusinessCompany name
Integrated Design & Engineering Holdings Co., Ltd.
Location of head office
5-4 Kojimachi, Chiyoda-ku, Tokyo
Name of representative
Hiroaki Shinya, Director and Representative Executive President
Amount of share capital¥7,522 million
Amount of net assets
To be determined
Amount of total assets
To be determined
Description of business
Management of business activities and related thereto of group companies

74

(3) At the Board of Directors meeting on August 9, 2023, the Company resolved the proposal on the decrease inamounts of share capital and legal capital surplus and the disposal of other surplus, and the proposal wasapproved by the extraordinary shareholders’ meeting (written resolution) on August 14.
a. Objectives
The objectives are to pursue the optimal capital strategy and financial strategy for group management andto enhance the shareholder value of Holdings Co..
b. Summary of Decrease in Amounts of Share Capital and Legal Capital Surplus(i) Amount of decrease(a) Share capital
Before capital reduction¥7,517 million
After capital reduction ¥500 million(b) Legal capital surplus
Before capital reduction¥6,216 million
After capital reduction ¥125 million(ii) Summary
This will be a so-called reduction of capital without compensation that does not involve repayment toshareholders for both share capital and legal capital surplus. There is no change to the total number ofshares issued, and the total amount of decrease in share capital and legal capital surplus of ¥13,108
million will be transferred to “Other capital surplus.”c. Changes in Retained Earnings and Other Earnings(i) Items to decrease and the amount
Legal retained earnings¥1,546 million
Voluntary retained earnings ¥24,287 million(Breakdown: Reserve for market development ¥1,920 million, General reserve ¥22,367 million)(ii) Items to increase and the amount
Retained earnings brought forward¥25,833 million
d. Schedule for this Treatment
Board of Directors meeting to approve the treatment
August 9, 2023
Resolution (written resolution) of the shareholders’ meeting to approve the August 14, 2023
treatment
Date of execution (effective date)
September 30, 2023

75

I I. O t h ers
Quarterly information for the year ended June 30, 2023
Cumulative period
Millions of Yen

Revenue

For the three months ended September 30,2022
For the six months ended December 31, 2022
For the nine months ended March 31, 2023
For the twelve months ended June 30, 2023

Yen

Profit (loss)
before taxes

Profit (loss)
attributable toowners ofparent¥1,555
269
8,580
6,373

¥584
(1,054)
4,725
3,093

¥26,782
58,451
102,634
141,527

Thousands of U.S. Dollars

Revenue

For the three months ended September 30,2022
For the six months ended December 31, 2022
For the nine months ended March 31, 2023
For the twelve months ended June 30, 2023

$184,995
403,741
708,925
977,571Basic
earnings(loss)
per share¥38.84(70.03)313.71205.34
U.S. Dollars

Profit (loss)
before taxes

Profit (loss)
attributable toowners ofparent$10,744
1,860
59,26744,023$4,039(7,286)32,641
21,366Basicearnings(loss)
per share$0.27(0.48)
2.17
1.42

Fiscal period

For the three months ended September 30,2022
For the three months ended December 31, 2022
For the three months ended March 31, 2023
For the three months ended June 30, 2023

Yen

U.S. Dollars

Basic earnings (loss)
per share

Basic earnings (loss)
per share¥38.84(108.83)
383.68(108.34)$0.27(0.75)
2.65(0.75)

76

77

78

79

80

81

82

N o n c o n sol i date d F i nanc ia l S t a t em ent s
Nonconsolidated Balance Sheet
Nippon Koei Co., Ltd.
June 30, 2023

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

AssetsCurrent assets:
Cash and deposits
Accounts receivable - trade
Contract asset
Short-term loan receivables
Current portion of long-term receivables
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Furniture and fixtures
Accumulated depreciation
Furniture and fixtures, net
Land .
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets:
Leasehold interests in land
Software
Other
Total intangible assets
Investments and other assets:
Shares of subsidiaries and associates
Long-term loans receivablefrom subsidiaries and associates
Prepaid pension costs
Other.
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
83

Note

7 (1)
7 (1)
7 (1)
7 (1)

7 (4)

7 (4)

As of
June 30, 2023

¥12,627
14,94022,664
4,637
303
3,841
(458)
58,555As ofJune 30, 2022

¥7,05016,79018,205
3,421
280
3,185
(483)
48,451

As ofJune 30, 2023

$87,219
103,197
156,550
32,0302,097
26,532(3,167)404,460

21,471(8,402)
13,068
822
(710)
112
2,577
(2,277)300
2,786(2,095)691
13,38479
295
27,932

21,387(7,776)
13,611
799
(696)
102
2,547
(2,189)357
2,643(1,951)
691
13,38444
247
28,439148,307(58,040)
90,266
5,683(4,908)774
17,802(15,728)
2,074
19,247(14,471)
4,776
92,453546
2,044
192,936

627
359
109
1,096

627
346
109
1,084

4,334
2,485
753
7,573

27,907

27,794

192,766

9,648
3,968
4,696
(1,805)44,41473,443

7,705
3,446
5,709
(1,753)42,90372,42766,642
27,40832,442(12,473)
306,785
507,296¥131,999¥120,878$911,756

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

Liabilities and equity
Current liabilities:
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Contract liabilities
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on construction contracts
Provision for compensation
Other
Total current liabilities

Note

As of
June 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

7 (1)
7 (1)(3)¥6,86922,000
6,374
5,927
1,023
—
291
562
10,21153,260¥5,904
14,160
5,328
3,538
1,026
110
117
522
12,21042,918$47,450
151,959
44,03140,942
7,072
—
2,011
3,883
70,534
367,885

12,462——794
714
13,971
67,232

17,207
71
25
698
677
18,68061,59886,081
—
—
5,489
4,935
96,506464,391

7,517

7,501

51,922

6,216

6,200

42,937

1,546

1,546

10,6782,700
1,920
22,36722,00950,542—64,2762,723
1,920
22,367
16,33944,896(5)
58,592

18,652
13,261
154,494
152,025
349,113—443,973491
64,767687
59,2803,391
447,364¥131,999¥120,878$911,756

7 (1)Non-current liabilities:
Long-term borrowings
Liability for retirement benefits
Provision for environmental measures
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets:
Shareholder’s equity:
Share capital
Capital surplus:
Legal capital surplus
Retained earnings:
Legal reserve
Other retained earnings:
Reserve for tax purpose reduction
entry of non-current assets
Reserve for market development
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation difference on
available-for-sale securities
Total net assets
Total liabilities and net assets
See notes to nonconsolidated financial statements.

84

N o n c o n sol i date d State m ent o f I n c o m e
Nippon Koei Co., Ltd.
Year ended June 30, 2023

Thousands of
U.S. Dollars (Note 1)

Millions of Yen

Note

Year ended
June 30, 2023

Year ended
June 30, 2022

Year ended
June 30, 2023

Net sales

8 (1)¥85,728¥80,796$592,151

Cost of sales
Gross profit

8 (1)63,83021,89859,373
21,422440,891
151,260

8 (1)(2)18,305
3,593

17,135
4,287

126,438
24,822

8 (1)

471

186

3,255

1,636
912
2,180
798
1,378
7,377

—
22
1,606
—
2,059
3,875

11,301
6,302
15,0645,512
9,523
50,960

219
—
522
319
1,062
7,100

2,342
4,798
1,656

Total other expenses
Ordinary Profit

339
694
239
179
1,452
9,518

10,03565,747

Income before income taxes

9,518

7,100

65,747

Income taxes:
Current
Deferred
Total income taxes

1,796
183

1,980

2,184
(320)
1,863

12,411
1,266
13,677

Net profit¥7,538¥5,236$52,069

Selling, general andadministrative expenses
Operating profit
Other income:Interest income
Gain on sale of shares ofsubsidiaries and associates
Gain on sale of investment securities
Dividend income
Insurance claim income
Other
Total other income
Other expenses:
Interest expense
Compensation expenses
Provision for compensation
Other

85

8 (1)
8 (1)

8 (1)

1,238

N o n c o n sol i date d State m ent o f Co st o f Sa les
Nippon Koei Co., Ltd.
Year ended June 30, 2023

Millions of
Yen

Ratio(%)

Millions ofYen

Thousands of
U.S.Dollars

Ratio(%)

Year ended
June 30, 2023

Year ended
June 30, 2022

Materials costs¥2,722

4.3¥1,746

2.9$18,805

Labor costs

24,57538.5

24,78441.8

169,750

Expenses (Note)

36,52957.2

32,791

55.3

252,318

Total expenses in the current period

63,827100.0

59,322100.0

440,874

Beginning Work in process
Cumulative effect of changes in accounting policy
Total
Ending Work in process
Cost of sales

Year ended
June 30, 2023

186

674

1,288

—

(437)

—

64,01459,559442,163

184

186

1,271

¥63,830¥59,373$440,891(Note) The main breakdown is as follows:

Thousands of
U.S.Dollars

Millions of Yen

Year ended
June 30, 2023

Year ended
June 30, 2022

¥26,876¥25,342$185,642

Travel and transportation expenses

5,118

3,860

35,354

Rent expenses

1,634

1,357

11,287

Report Preparation Fee

891

920

6,158

Depreciation

500

448

3,456

Outsourcing expenses

Year ended
June 30, 2023

(Notes)1.	The Company uses cost accounting based on a job-order cost system.
2.	The amount of “Cumulative effect of changes in accounting policy” represents the decrease resulting from theadoption of the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020).

86

N o n c o n sol i date d State m ent o f Cha n g es in N et Asset s
Nippon Koei Co., Ltd.
Year ended June 30, 2023

Millions of Yen
Capital surplus
SharecapitalBalance as of July 1, 2021
Changes during the annual period:
Issuance of new shares
Cash dividends
Reversal of reserve for tax purpose reduction entry of non-current assets
Net income
Purchase of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholder's equity
Net change in the year
Balance as of June 30, 2022
Changes during the annual period:
Issuance of new shares
Cash dividends
Reversal of reserve for tax purpose reduction entry of non-current assets
Net income
Purchase of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholder's equity
Net change in the year
Balance as of June 30, 2023

Retained earnings
UnappropriatedTreasurysharesTotalshareholders’equityValuationdifference on
available-forsale
securities

Total
net assets

Reserve for tax
purpose reduction
entry of noncurrent assets

Reserve formarketdevelopment

General reserve¥1,546¥2,746¥1,920¥22,367¥12,208¥40,788¥(0)¥54,447¥595¥55,043

21
—
—
—
—
—
—
21
¥6,200

—
—
—
—
—
—
—
—
¥1,546

—
—
(23)
—
—
—
—
(23)
¥2,723

—
—
—
—
—
—
—
—
¥1,920

—
—
—
—
—
—
—
—
¥22,367—(1,128)
23
5,236
—
—
—
4,131
¥16,339—(1,128)
—
5,236
—
—
—
4,108
¥44,896

—
—
—
—
(5)
—
—
(5)
¥(5)

42
(1,128)
—
5,236
(5)
—
—
4,144
¥58,592

—
—
—
—
—
—
92
92
¥687

15
—
—
—
—
—
—
15
¥6,216

—
—
—
—
—
—
—
—
¥1,546

—
—
(23)
—
—
—
—
(23)
¥2,700

—
—
—
—
—
—
—
—
¥1,920

—
—
—
—
—
—
—
—
¥22,367—(1,882)
23
7,538
—
(9)
—
5,669
¥22,009—(1,882)
—
7,538
—
(9)
—
5,646
¥50,542

—
—
—
—
(3)
9
—
5
¥—

31
(1,882)
—
7,538
(3)
—
—
5,683
¥64,276

—
—
—
—
—
—
(196)
(196)
¥491

42
(1,128)
—
5,236
(5)
—
92
4,236
¥59,280—31(1,882)
—
7,538
(3)
—
(196)
5,487
¥64,767

Legal capitalsurplus

Legal reserve¥7,480¥6,179

21
—
—
—
—
—
—
21
¥7,501
15
—
—
—
—
—
—
15
¥7,517Retainedearnings
brought
forward

Total retained
earnings

Thousands of U.S. Dollars (Note 1)
Capital surplus
SharecapitalBalance as of June 30, 2022
Changes during the annual period:
Issuance of new shares
Cash dividends
Reversal of reserve for tax purpose reduction entry of non-current assets
Net income
Purchase of treasury shares
Cancellation of treasury shares
Net changes in items other than shareholder's equity
Net change in the year
Balance as of June 30, 2023

Retained earnings
UnappropriatedTreasurysharesTotalshareholders’equityValuationdifference on
available-forsale
securities

Total
net assets

Reserve for tax
purpose reduction
entry of noncurrent assets

Reserve formarketdevelopment

General reserve$10,678$18,813$13,261$154,494$112,861$310,110$(40)$404,714$4,750$409,464

—
—
—
—
—
—
—
—
$10,678

—
—
(160)
—
—
—
—
(160)
$18,652

—
—
—
—
—
—
—
—
$13,261

—
—
—
—
—
—
—
—
$154,494—(13,001)160
52,069—(64)—
39,163$152,025—(13,001)—
52,069—(64)—
39,003$349,113

—
—
—
—
(23)
64
—
40
$—

214
(13,001)—
52,069(23)——
39,259$443,973

—
—
—
—
—
—
(1,358)(1,358)$3,391

214(13,001)—
52,069(23)—(1,358)37,900$447,364

Legal capitalsurplus

Legal reserve$51,815$42,829

107
—
—
—
—
—
—
107
$51,922

107
—
—
—
—
—
—
107
$42,937

Retainedearnings
brought
forward

Total retained
earnings

See notes to nonconsolidated financial statements.

87

88

N o t e s t o N onconsol i da t ed F ina n c ia l St a t em en t s
Nippon Koei Co., Ltd.
Year ended June 30, 2023

1.	Basis of Preparation
The accompanying nonconsolidated financial statements have been prepared by Nippon Koei Co., Ltd. (the“Company”) in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange
Act and its related accounting regulations, and in conformity with accounting principles generally accepted inJapan, which are different in certain respects as to the application and disclosure requirements of International
Financial Reporting Standards as issued by the International Accounting Standards Board.
As consolidated statements of cash flows and certain disclosures are presented in the consolidated financial
statements of the Company, nonconsolidated statements of cash flows and certain disclosures are not required
to be presented herein, in accordance with accounting principles generally accepted in Japan.
Effective for the year ended March 31, 2014, the Japanese Financial Instruments and Exchange Act and its
related accounting regulations were amended to allow an entity to not disclose certain designated footnote
information in its nonconsolidated financial statements if the entity also prepares and discloses consolidated
financial statements. Accordingly, the Company has omitted disclosures of certain footnote information in theaccompanying nonconsolidated financial statements.
The nonconsolidated financial statements are stated in Japanese yen, the currency of the country in which theCompany is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts areincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥144.775 to $1,
the approximate rate of exchange at June 30, 2023. Such translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.

2. Significant Accounting Policies
a. Valuation Standards and Methods for Securities(1) Held-to-Maturity Bonds
		 Amortized cost method (Straight-line method)(2) Shares of Subsidiaries and Associates
		 Cost method based on the moving average method(3) Other Securities
Other than non-marketable shares
Market value method based on the market price on the closing date (any valuation difference is accounted
for by the method of direct recognition into net assets in full, while the cost of securities sold is calculated
based on the moving average method)
Non-marketable shares
Cost method based on the moving average method.

b. Valuation Standards and Methods for Derivatives
Market value method

c. Method for Depreciation of Non-current Assets(1) Property, Plant and Equipment (excluding lease assets)
Straight-line method
Main useful lives are as follows.
		 Buildings: 2–50 years
		 Structures: 2–45 years
		 Machinery and equipment: 2–15 years
		 Tools, furniture and fixtures: 2–20 years(2) Intangible Assets (excluding lease assets)
		 Straight-line method(3) Lease Assets
		 Lease assets for non-ownership-transfer finance lease
		 The straight-line method is used when the lease period matches the useful life and zero residual value.

89

d. Basis for the Translation of Foreign Currency Assets and Liabilities into Japanese Currency

Foreign currency financial receivables and liabilities are translated into yen using the spot exchange rate at
the end of the period, with the translation difference accounted for as profit or loss.

e. Recording Criteria for Allowances/Provisions(1) Allowance for Doubtful Accounts
To determine the estimate of uncollectible trade receivables and loan receivables, the Company considers
the historical rate of credit losses for normal receivables and evaluates individually specific receivables asnecessary.
(2) Provision for Bonuses
The provision for bonuses is based on the estimated payment to be made to employees.
(3) Provision for Loss on Construction Contracts
The expected amount of loss for contracts in process at the end of the current fiscal year was recorded inorder to reserve based on expected future losses.
(4) Provision for Compensation
As we have present legal or constructive obligations as a result of past events, we have reasonably
estimated the amount required at the end of the current fiscal year and recorded the expected amount ofloss, in order to prepare for expenditures likely to be incurred with the compensation of future damages.
(5) Provision for Retirement Benefits
To provide for accruals for retirement benefits of employees, the estimated provision is based on the
expected amount of retirement benefit liabilities and pension assets as of the end of the current fiscal
year.
The following are the accounting methods for provision for retirement benefits and retirement benefit
expenses.
1) Attribution Method for the Expected Amount of Retirement Benefits
The calculation of retirement benefit liabilities is based on the benefit formula as the method of
attributing the expected amount of retirement benefits to the periods up to the current period.
2) Accounting for Actuarial Gains/Losses and Prior Service Cost
Actuarial gains/losses are amortized using the straight-line method from the fiscal year following theiraccrual over a certain period (mainly 13 years) within the average remaining service period of
employees at the time of accrual. Prior service costs are amortized using the straight-line method overa certain period (mainly 13 years) within the average remaining service period of employees at the timeof accrual.

f. Recognition Criteria for Significant Revenue and Expense

The Company recognizes revenue for contracts with customers by applying the following steps.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction prices to performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation“Consulting” and “Energy” provide services such as planning, designing, and supervision mainly for civilengineering and electric power.
The Company’s businesses are performance obligations to be satisfied over time, because they fall undereither of the following cases where: (a) the customer simultaneously receives and consumes the benefits
provided by the Company’s performance as the Company performs; (b) the Company’s performance createsor enhances an asset that the customer controls as the asset is created or enhanced; or (c) the Company’s
performance does not create an asset with an alternative use to the Company and the Company has an
enforceable right to payment for performance completed to date.
Sales are recognized based on progress toward complete satisfaction of the obligation and, if progress cannot
be reliably measured, revenue is recognized to the extent of costs incurred until such time as progress of
performance obligations can be reliably measured.
For the measurement of progress, costs include personnel expenses and outsourcing expenses that are inprinciple based on the cost budget and actual accrued costs.
The large-scale vertical axis hydroelectric power projects, with which the Company has limited priorexperience, are subject to limited information, such as similar projects completed previously whenestimating total costs, and include significant assumptions, such as outsourcing costs. Therefore, estimates of
total costs are likely to change due to revisions of the estimate.
To ensure the accuracy of the estimate of total costs, the Company manages budgets by type of work andconfirms the appropriateness of the estimated total costs for each accounting period, to identify outliers ofcosts at an early stage, and to review the cost budget in a timely manner.

90

Moreover, the measurement of progress in some large projects is based on output measures. When recording
sales by expected billings, progress is recognized based on incurred expense and other output measures used
to measure progress after approval by the project manager.
Contract assets are the Company’s rights to consideration in exchange for goods or services that theCompany has transferred to a customer when that right is conditioned on something other than the passageof time. Contract liabilities are the Company’s obligation to transfer goods or services to a customer forwhich the Company has received consideration or the amount is due from the customer.
Consideration is received by contractual milestones generally in line with the progress in satisfying
performance obligations, with settlement generally occurring within 60 days from the complete satisfactionof performance obligations. Consideration generally does not include significant financing components.

g. Method of Hedge Accounts(1) Method of Hedge Accounting
The integrated method is applied to interest rate and currency swaps which are eligible for suchtreatment.
(2) Hedging Instruments and Hedging Targets
Hedging instruments
Interest rate and currency swap
Hedging targets
Borrowings at variable interest rates in foreign currency(3) Hedging Policy
Foreign exchange fluctuation risk and interest rate fluctuation risk of hedging targets are hedged basedon the Company’s internal policies and procedures.
(4) Method of Evaluating Effectiveness of Hedging
For the interest rate and currency swaps using the integrated method, the evaluation of the effectivenessis not necessary.
(Hedge relationships subject to “Practical Solution on the Treatment of Hedge Accounting for Financial
Instruments that Reference LIBOR”)
The Company applies a special treatment specified in the practical solution report to all hedge
relationships included in the applicable scope of “Practical Solution on the Treatment of Hedge
Accounting for Financial Instruments that Reference LIBOR” (ASBJ PITF No. 40 issued on March 17,2022). Details of the hedge relationships that the practical solution report applies to are as follows.
Hedge accounting method: Follow the special treatment of interest rate swap
Hedging method:
Interest rate swap transactions
Hedged targets:Interest paid on borrowings
Type of hedge transaction: To fix cash flows

h. Other Significant Items as The Basic of Financial Statements’ Preparation

Accounting Method for Retirement Benefits
Non-consolidated financial statements treat the unrecognized actuarial difference and unrecognized priorservice costs differently from the consolidated financial statements. In the balance sheet, prepaid pension
cost is recognized as the amount of retirement benefit liabilities with the addition or deduction of
unrecognized actuarial difference and unrecognized prior service cost, less the amount of pension assets.

91

3. Significant Accounting Estimatesa. Revenue Recognition(1) The Amount Recorded in Nonconsolidated Statement of Income
Millions of Yen

Net sales

As ofJune 30, 2023
¥85,728

As ofJune 30, 2022
¥80,796

Thousands of
U.S. Dollars

As ofJune 30, 2023
$592,151(2) Information on the Significant Accounting Estimates
Sales are recognized based on progress toward the full satisfaction of performance obligations when
progress can be reasonably measured, or, if progress cannot be reasonably measured, to the extent ofcosts incurred until the outcome of the performance obligation can be reasonably measured.
The measurement of progress is generally based on cost budgets and actual costs incurred, as the main
cost elements of the business are labor and subcontracting costs. In estimating cost budgets for largescale vertical axis hydroelectric power projects, estimates of total cost may vary after the fact due to thelack of information on completed similar projects and other information referenced when estimating
total cost and the inclusion of significant assumptions such as subcontracting costs. To ensure theaccuracy of total cost estimates, we take measures to detect abnormal values of costs and other items at
an early stage and revise cost budgets in a timely manner by conducting budget management subdivided
by construction type and individually checking the appropriateness of estimated total costs at each fiscal
period.
In addition, the measurement of progress for some large projects is based on actual operating and cost
performance (volume). When sales are recognized at the estimated invoiced amount, it is based on theactual volume performance vouchers that have gone through the approval process by the project
manager.
However, if future changes in the business environment or other factors cause significant fluctuations inestimates of total costs or other items, sales for the following fiscal year may be affected.

b. BDP HOLDINGS Limited Holdings Stocks(3) The Balance Recorded in Nonconsolidated Balance Sheet
Millions of Yen

Shares of subsidiaries and associates

As ofJune 30, 2023
¥16,898

As ofJune 30, 2022
¥16,898

Thousands of
U.S. Dollars

As ofJune 30, 2023
$116,720(4) Information on Significant Accounting Estimates
Since the stocks are classified as stocks with no market price, the Company recognizes impairment losses
when the net asset value of the shares, which reflects excess profitability, declines by more than 50%
compared to the acquisition cost. Unless the recoverability of the shares of subsidiaries is supported bysufficient evidence, the Company recognizes a loss to the extent of net asset value.
In respect of excess earning power, the Company decides whether or not there is a decrease in the excess
earning power and the degree thereof expected at the time of acquiring shares by taking into account the
progress in the business plan formulated at the time of acquiring shares and the latest business plan thatthe management have approved.
While these assumptions are made using the best estimate and judgment based on information available
at the time, the estimate may need to be revised due to changes in the business environment or otherfactors in the future, and an impairment loss may be recognized, which could have a significant impact
on the financial statements for the following fiscal year.

924. Changes in Accounting Policy
Adoption of the Implementation Guidance on Accounting Standard for Fair Value Measurement

The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021; referred to as the “Fair Value Measurement Accounting Standard Implementation Guidance”
hereinafter) was adopted at the beginning of the current fiscal year. It is intended to prospectively apply new
accounting policies to be provided by the Fair Value Measurement Accounting Standard Implementation
Guidance in accordance with transitional arrangement stipulated in Paragraph 27-2 of the Fair Value
Measurement Accounting Standard Implementation Guidance. There is no impact on the balance sheet for thecurrent fiscal year.

5. Changes in Presentation
Statement of Income“Gain on sale of investment securities” (¥22 million in the previous fiscal year), which was included in “Other”
under non-operating income in the previous fiscal year, is presented separately in the current fiscal year because
it has become significant in terms of amount.
“Foreign exchange gains” (¥536 million ($3,708 thousand) in the current fiscal year) and “Gain on valuation ofderivatives” (¥276 million ($1,911 thousand) in the current fiscal year) under “Other income” listed separately
for the previous fiscal year is included in “Other” for the current fiscal year because its amount is immaterial.
“Loss on sale of property, plant and equipment” (¥0 million ($0 thousand) in the current fiscal year) under“Other expenses” listed separately for the previous fiscal year is included in “Other” for the current fiscal year
because its amount is immaterial.

936. Balance Sheets(1) The balance of receivables and payables to affiliated companies are as follows:
Millions of Yen

Short-term accounts receivable
Short-term accounts payable

As ofJune 30, 2023
¥5,334
1,342

As ofJune 30, 2022
¥4,016
7,758

Thousands of
U.S.Dollars

As ofJune 30, 2023
$36,8489,273(2) Contingent Liabilities
The Company provides the following guarantees:
Millions of Yen

Bank refundment bonds of subsidiaries
Bank guarantee bonds of subsidiaries
Total

As of
June 30, 2023
¥459
9,010
¥9,470

As ofJune 30, 2022
¥713
22,531¥23,245

Thousands of
U.S.Dollars

As ofJune 30, 2023
$3,177
62,237$65,414(3) To procure working capital efficiently, the Company has contracts for overdraft protection and a three-year
syndicated commitment line agreements with four counterparty banks. For the commitment line agreement,
there is a restrictive financial covenant attached for each counterparty bank. The unused portions ofcommitments based on these agreements at the end of fiscal year are as follows:
Millions of Yen

Total amount of medium-term commitment lines and overdraft limits
Balance of borrowings
Balance of unused portion

As ofJune 30, 2023
¥41,500
22,000¥19,500

As ofJune 30, 2022
¥41,500
7,500¥34,000

Thousands of
U.S. Dollars

As ofJune 30, 2023
$286,651
151,959$134,691(4) Reduction Entry
In the case of certain capital investments made by the Company that have been subsidized by the national
government, the amount of such subsidies is offset against the acquisition cost of the corresponding
property, plant, and equipment.
The amount of reduction entry by accounts under property, plant, and equipment are as follows:
Millions of Yen

Buildings
Machinery and equipment
Total

As of
June 30, 2023
¥9
179
¥189

As of
June 30, 2022
¥9
147
¥156

Thousands of
U.S. Dollars

As ofJune 30, 2023
$64
1,242
$1,30694

7. Statement of Income(1) The amounts relating to transactions with affiliated companies in nonconsolidated statement of income
are as follows:
Millions of Yen

Sales
Cost of purchased goods
Selling, general and administrative expenses
Non-operating income
Non-operating expenses

Year ended
June 30, 2023
¥455
4,645
1,136
2,797
19

Year ended
June 30, 2022
¥443
4,252
1,038
1,959
22

Thousands of
U.S.Dollars

Year ended
June 30, 2023
$3,14232,087
7,848
19,322133(2) The ratio of selling expenses to total selling, general and administrative expenses for years ended June30, 2023 and 2022, was 17% and 16%, respectively. The ratio of general and administrative expenses tototal selling general administrative expenses for years ended June 30, 2023 and 2022, were 83% and 84%,
respectively.
The breakdown of selling, general and administrative expenses by main characteristic is as follows:
Millions of Yen

Salaries and allowance
Provision for bonuses
Retirement benefit expenses
Depreciation
Operations consignment expenses

95

Year ended
June 30, 2023
¥5,735
309
227
659
2,133

Year ended
June 30, 2022
¥5,566
302
229
634
1,880

Thousands of
U.S.Dollars

Year ended
June 30, 2023
$39,615
2,136
1,572
4,556
14,733

8. Leases
Operating Leases (Lessor side)
The rental commitments under noncancelable operating leases are as follows:
Thousands of
U.S.Dollars

Millions of Yen

Due within one year
Due after one year
Total

As of
June 30, 2023
¥300
277
¥578

As of
June 30, 2022
¥276
536
¥812

As of
June 30, 2023
$2,078
1,915$3,993

9. Investments in Subsidiaries and Associated Companies
Market prices of stocks of subsidiaries and associated companies are not shown as they are not traded on active
markets and therefore do not have quoted market prices.
The carrying amount of investments in subsidiaries and associated companies whose fair values are not readily
determinable is as follows:
Thousands of
U.S. Dollars

Millions of Yen

Investment in subsidiaries that do nothave a quoted market price in an active market
Investments in associated companies that do nothave a quoted market price in an active market
Total

As of
June 30,2023

As ofJune 30, 2022

As ofJune 30,2023¥27,034¥26,921$186,731

873¥27,907873¥27,794

6,034$192,7669610. Income Taxes(1) The breakdown and changes of deferred tax assets and liabilities by major caption are as follows:
Thousands of
U.S. Dollars

Millions of Yen

As ofJune 30, 2023

As ofJune 30, 2022

As ofJune 30, 2023

Deferred tax assets:
Loss on valuation of shares of subsidiaries andassociates
Allowance for doubtful accounts
Accrued bonuses
Accrued enterprise tax
Accrued foreign tax
Provision for compensation
Provision for bonuses
Provision for loss on construction contracts
Liability for retirement benefits for employees
Provision for environmental measures
Over depreciation
Loss on impairment of long-lived assets
Loss on valuation of investment securities
OthersLess valuation allowance
Total deferred tax assets

¥435
693
794
112
1
172
313
89
20
—
65
61
15
787
(1,510)
2,053

¥437
684
840
130
3
159
314
35
21
7
77
61
76
794
(1,500)2,145$3,009
4,789
5,489
775
10
1,189
2,165
615
141
—
453
427
107
5,440
(10,433)
14,181

Deferred tax liabilities:
Prepaid pension costReserve for deferred gains on sale of property
Unrealized gain on available-for-sale securities
OthersTotal deferred tax liabilities(1,215)(1,191)(216)(224)(2,847)(1,055)(1,202)(303)(282)(2,843)(8,392)(8,232)(1,496)(1,549)(19,671)

Net deferred tax liabilities¥(794)¥(698)$(5,489)97

(2) A reconciliation between the effective statutory tax rates and the actual effective tax rates reflected in theaccompanying nonconsolidated statement of income are as follows:

Normal effective statutory tax rate
Per capita levy of local tax
Expenses not deductible for tax purposes
Foreign income tax
Valuation allowance
Special tax credit
Income not included for tax purposes
Income taxes for prior periods
Other – net
Actual effective tax rate

2023
30.6%
0.9
0.3
3.3
0.1
(3.9)
(10.5)
0.1
(0.1)
20.8%

2022
30.6%
1.2
1.4
2.1
0.5
(2.1)
(6.3)
(0.6)
(0.6)
26.2%

11. Revenue Recognition(Information on the basis for understanding revenues arising from contracts with customers)
Statement is omitted as the information is disclosed in Notes to Nonconsolidated Financial Statements,“2. Significant Accounting Policies, f. Recognition Criteria for Significant Revenue and Expense.”

12. Significant Subsequent Events
Statement is omitted, as the information is disclosed in Notes to Consolidated Financial Statements,“40. Subsequent Events.”

98

Attachments to Nonconsolidated Financial Statements
Nippon Koei Co., Ltd.
Year ended June 30, 2023

1. Investment Securities
a. Shares
Millions of Yen
Issue nameInstitute for Q-shu Pioneers of Space, Inc.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Realty & Development Co., Ltd.
OILES CORPORATIONPowerSource Group Development Corporation
Mizuho Financial Group, Inc.
YAKUSHIMA DENKO CO.,LTD.
JESK HORIUCHI CO., LTD.
DN HOLDINGS CO., LTD.
Kansai International Airport Land Company, ltd.
CENTRAL JAPAN INTERNATIONAL AIRPORTCOMPNAY, LTD.
Resona Holdings, Inc.
PT AINO INDONESIAHACHIYO Consultant Co., Ltd.
OPMAC Corporation
MANAGEMENT SYSTEM ASSESSMENT CENTER
R&D Security K.K.
International Development Journal
Japan Pipeline Development & Operation Inc.
ZAIKEI JUTAKU KINYU CO.,LTD
Bangkok Club Co., Ltd.
Yugen Kaisha Kyodo Doshitu Shiken
Chanthaburi Country Club Co., Ltd.
Total

Number of shares

Thousands of
U.S. Dollars

Carrying amount

11,429713,000
150,000
238,500
26,81243,263150,000
80,00056,760
840

¥800
759
532
475
201
95
85
80
78
42

$5,526
5,245
3,681
3,283
1,394
657
588
553
542
290

304

15

104

17,189
19
200
30
20
20
2,000
4,200,420
3
12,5002
12,5005,715,811

11
6
2
1
1
1
1
0
0
0
0
0
¥3,191

81
42
13
10
6
6
6
4
4
1
0
0
$22,046b. Bonds
Issue name

Argentine Republic scheduled redemption step-up bond due 2041
Argentine Republic scheduled redemption bond due 2029
Argentine Republic GDP-linked securities denominated in EUR
Total
Issue name

Argentine Republic scheduled redemption step-up bond due 2041
Argentine Republic scheduled redemption bond due 2029
Argentine Republic GDP-linked securities denominated in EUR
Total
99

Millions of Yen
Total face value

Carrying amount

¥2
0
0
¥2

¥0
0
0
¥0

Thousands of U.S. Dollars
Total face value

Carrying amount

$17
0
2
$20

$0
0
0
$0

2. Property, Plant and Equipment and Intangible Assets
Millions of Yen

Property, plant and equipment:
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Leased assets
Construction in progress
Total
Intangible assets:
Leasehold interests in land
Telephone subscription right
Right to use water facilities
Software
Software development in progress
Total

Book value atbeginning of period

Increase

Decrease

Depreciation

Book value at Accumulated Acquisition cost
end of period depreciation at end of period¥13,611
102
357
12
691
13,384234
44¥28,439

¥87
24
32
—
180
—
153
167
¥644

¥1
0
0
—
8
—
—
132
¥142

¥628
14
89
4
171
—
100
—
¥1,009¥13,068
112
300
8
691
13,384287
79¥27,932

¥627
44
0
346
64
¥1,084

¥—
—
—
147
47
¥194

¥—
0
—
0
47
¥48

¥—
—
0
134
—
¥134

¥627
44
0
359
64
¥1,096¥8,402
710
2,277
89
2,095
—
199
—
¥13,774¥21,471
822
2,577
97
2,786
13,384487
79¥41,707

Thousands of U.S. Dollars
Book value atbeginning of period

Property, plant and equipment:
Buildings$94,015Structures
710
Machinery and equipment
2,472
Vehicles86
Tools, furniture and fixtures
4,777
Land
92,453
Leased assets
1,620
Construction in progress
304
Total
$196,439
Intangible assets:
Leasehold interests in land
$4,334
Telephone subscription right309
Right to use water facilities
1
Software
2,396
Software development in progress
448
Total
$7,490

Increase

Decrease

$601
167
222
—
1,244
—
1,061
1,157
$4,454

$10
0
0
—
60
—
—
915
$987

$—
—
—
1,019
326
$1,345

$—
1
—
3
329
$334

Depreciation

Book value at Accumulated Acquisition cost
end of period depreciation at end of period$4,340 $90,266
102
774
619
2,074
31
55
1,184
4,776
—
92,453
693
1,988
—
546
$6,971 $192,936
$—
—
0
926
—
$927

$58,040 $148,307
4,908
5,683
15,72817,802617
673
14,471
19,247—92,453
1,378
3,367
—
546
$95,145 $288,081$4,334
307
0
2,485
445
$7,573100

3. Allowance and Provision
Millions of Yen

Allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on construction contracts
Provision for environmental measures
Provision for compensation

Balance at
beginning of period¥2,236
1,026
110
117
25
522

Increase

Decrease

¥55
1,023
—
283
—
562

¥27
1,026
110
109
25
522

Balance at
end of period¥2,264
1,023
—
291
—
562

Thousands of U.S. Dollars

Allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on construction contracts
Provision for environmental measures
Provision for compensation

Balance at
beginning of period$15,449
7,091
761
811
175
3,609

Increase

Decrease

$382
7,072
—
1,954
—
3,883

$192
7,091
761
755
175
3,609

[Principal Assets and Liabilities]
Statement is omitted, as the information is disclosed in consolidated financial statements.

[Others]
There is no applicable information.

101

Balance at
end of period$15,640
7,072
—
2,011
—
3,883

102

103

104

105

106

107

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