Consolidated Financial Results
for the Fiscal Year Ended June 30, 2015
[Japanese GAAP]
August 12, 2015
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: http://www.n-koei.co.jp/english
Representative: Ryuichi Arimoto, Representative Director and President
Contact: Naoki Honjo, General Manager, Finance and Accounting Department
Phone: +81-3-3238-8040
Scheduled date of holding general shareholder’s meeting: September 29, 2015
Scheduled date of commencing dividend payments: September 9, 2015
Scheduled date of filing securities report: September 30, 2015
Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2015 (July 1, 2014 to June 30, 2015)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)Net sales
Fiscal year ended

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

June 30, 2015

81,839

3.3

4,502

5.8

5,477

20.6

4,261

42.1

June 30, 2014

79,193

-

4,256

-

4,542

-

2,998

-

(Note) Comprehensive income: Fiscal year ended June 30, 2015: ¥6,032 million [42.9%]
Fiscal year ended June 30, 2014: ¥4,221 million [ - %]Fiscal year ended

Net income
Diluted net
per share
income per share
Yen
Yen

Return on equity

Return on assets%%

Operating income
on Net sales%

June 30, 2015

56.01

-

8.5

6.8

5.5

June 30, 2014

39.61

-

6.6

6.2

5.4

(Reference) Income from investment in affiliates (Equity method): Fiscal year ended June 30, 2015: Fiscal year ended June 30, 2014: (2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

June 30, 2015

84,11052,98162.6

690.09June 30, 2014

76,14447,83562.4

626.53Fiscal year ended(Reference) Equity: Fiscal year ended June 30, 2015: ¥52,644 million
Fiscal year ended June 30, 2014: ¥47,530 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Cash and cash
equivalents at end of
periodMillion yen

June 30, 2015

881

2,702

(745)

11,673June 30, 2014

1,340

(4,559)62

8,465

Fiscal year ended

12. Dividends
Dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end Year-end

Total

Total dividends Payout ratio
paid (annual) (consolidated)

Dividend on net
assets ratio(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Fiscal year ended June 30, 2014

-

-

-

7.50

7.50

579

18.9

1.2

Fiscal year ended June 30, 2015

-

-

-

10.00

10.00

772

17.9

1.5

Fiscal year ending June 30, 2016
(Forecast)

10.00
10.00
34.7
(Note) “Total dividends paid (annual)” includes dividends on the Company’s shares held by the Employee ShareOwnership Plan (ESOP) trust.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2016 (July 1, 2015 to June 30,
2016)(% indicates changes from the corresponding period of the previous fiscal year.)
OperatingincomeNet sales
Million yen

Six months-

Net income
attributable toowners of the parent

Ordinary
incomeNet income
per share% Million yen% Million yen% Million yen

%

Yen

-

-

-

-

-

-

-

-

Full year
84,0002.6
4,200 (6.7)
4,500 (17.8)
2,200 (48.4)
28.84
Consolidated financial forecasts for the six months ending December 31, 2016 of the fiscal year is not disclosed
as major customers of the Company comprises government agencies and electric companies, and net sales of theCompany tend to concentrate in the second half of the fiscal year due to the Company’s primary operations.
* Notes:(1) Changes in significant subsidiaries during the fiscal year ended June 30, 2015 (changes in specified
subsidiaries resulting in changes in scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
Fiscal year ended June 30, 2015
: 86,656,510 sharesFiscal year ended June 30, 2014
: 86,656,510 shares2) Total number of treasury stock at the end of the period:
Fiscal year ended June 30, 2015
: 10,370,910 sharesFiscal year ended June 30, 2014
: 10,793,274 shares
3) Average number of shares during the period:
Fiscal year ended June 30, 2015
: 76,077,020 sharesFiscal year ended June 30, 2014
: 75,693,610 shares

2

(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2015 (July 1, 2014 to June 30, 2015)(1) Nonconsolidated Operating Results(% indicates changes from the previous fiscal year.)Net sales

Fiscal year ended

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

June 30, 2015

60,471

2.0

3,190

3.0

6,146

53.7

5,714

159.9

June 30, 2014

59,307

-

3,097

-

3,997

-

2,198

-

Net income
per share

Fiscal year ended

Diluted net
income per share
Yen

Yen

June 30, 2015

75.11

-

June 30, 2014

29.05

-

(2) Nonconsolidated Financial Position
Total assets
Fiscal year ended

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen73,391

48,691

66.3

638.2863.6

573.88June 30, 2015

June 30, 2014
68,43943,536(Reference) Equity: Fiscal year ended June 30, 2015: ¥48,691 million
Fiscal year ended June 30, 2014: ¥43,536 million

2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2016 (July 1, 2015 to June30, 2016)(% indicates changes from the corresponding period of previous fiscal year.)Net sales

Six months

Ordinary income

Net income
per share

Net income

Million yen%

Million yen%

Million yen

%

Yen

-

-

-

-

-

-

-

Full year
60,000 (0.8)
3,100 (49.6)
1,500 (73.8)
19.66
Nonconsolidated financial forecasts for the six months ending December 31, 2016 of the fiscal year is notdisclosed as major customers of the Company comprises government agencies and electric companies, and net
sales of the Company tend to concentrate in the second half of the fiscal year due to the Company’s primary
operations.
* Presentation regarding the implementation status of audit proceduresThis Consolidated Financial Results is exempt from the audit stipulated in the Financial Instruments andExchange Act. The audit procedures for financial statements based on the stipulations of said Act have not been
completed at the time of disclosure of this Consolidated Financial Results.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements disclosed herein are based on information
available to the Company as of the date of publication of this document and certain assumptions deemed
reasonable. Actual results, etc. may differ significantly due to a wide range of factors.

3

Table of Contents of Attached Documents
1. Analysis of Consolidated Operating Results and Financial Position .............................................................. 2(1) Analysis of Consolidated Operating Results .............................................................................................. 2(2) Analysis of Consolidated Financial Position .............................................................................................. 3
2. Management Policies ...................................................................................................................................... 5(1) Basic Management Policies of the Company ............................................................................................. 5(2) Target Management Indicators ................................................................................................................... 5(3) Medium- and Long-Term Business Strategies ........................................................................................... 5(4) Issues to be Addressed of the Company ..................................................................................................... 6
3. Basic Policy Concerning Choice of Accounting Standards ............................................................................ 6
4. Consolidated Financial Statements ................................................................................................................. 7(1) Consolidated Balance Sheets ...................................................................................................................... 7(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 9(3) Consolidated Statements of Changes in Net Assets ................................................................................. 10(4) Consolidated Statements of Cash Flows .................................................................................................. 12(5) Notes to the Consolidated Financial Statements ...................................................................................... 14(Notes on Going Concern Assumption) .............................................................................................. 14(Changes in Accounting Policies) ....................................................................................................... 14(Segment Information, etc.) ................................................................................................................. 14(Per Share Information) ....................................................................................................................... 21(Significant Subsequent Events) .......................................................................................................... 21
5. Other ............................................................................................................................................................. 22(1) Status of Production, Orders and Sales .................................................................................................... 22(2) Changes in Corporate Officers ................................................................................................................. 23

4

1. Analysis of Consolidated Operating Results and Financial Position(1) Analysis of Consolidated Operating Results
1) Consolidated operating results for the current period
During the fiscal year under review (from July 1, 2014 to June 30, 2015), the Japanese economy was on amoderate recovery path due to signs of recovery in personal consumption and private investment in plant andequipment as a result of the government’s economic policies and monetary easing, despite weak movement inpublic works projects.
With regard to the business environment of Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), our Domestic Consulting Operations and Power Engineering Operations both
performed strongly, backed by factors including disaster prevention and disaster mitigation business based on
the Fundamental Plan for National Resilience, maintenance and management business for facilities under thePlan for Extending the Lifespan of Infrastructure, an increase in demand for preparation of facilities for the
Tokyo Olympics, investment aimed at putting in place distribution networks for electric power companies, andan increase in demand for renewal and new construction of hydroelectric power generation facilities taking
advantage of the Feed-in Tariff (“FIT”) Scheme. In our International Consulting Operations, the market
performed steadily. Contributing factors included acceleration of government-led infrastructure exports to meetdevelopment demand among emerging markets in Asia and other parts of the world, reflecting the maintenanceof a certain volume of Official Development Assistance (“ODA”) projects by Japan despite changes in content,
as well as support owing to strong demand for private investment in development.
Under such circumstances, based on the Medium-Term Management Plan (from April 2012 to June 2015),
the Group aggressively engaged in the important initiatives mentioned below, and steady results were achieved
during the fiscal year under review, which is the final fiscal year of the plan. The initiatives are, “Development
and management of overseas bases, and introduction of multi-domestic management,” “Enhancement ofexisting business sectors and expansion of business domains,” “Exploration of new business models including
new initiatives in project management,” and “Enhancement of work-life balance.” The Company wasaggressively trying to extend business domains thorough the activities, such as, an aggressive effort intended toacquire overseas companies for further global expansion, acquisition of the business from Kisho Kurokawa
Architect & Associates Co., Ltd. with the aim of full-scale entry into the area of urban development andarchitecture, and establishment of KOEI Energy Co., Ltd. in order for further expansion of the regenerated
energy business, especially hydroelectric power generation.
As a result, for the fiscal year ended June 30, 2015, while orders received were ¥87,573 million, down 5.3%
year-on-year, net sales were ¥81,839 million, up 3.3% year-on-year.
In terms of profit, ordinary income was ¥5,477 million, up 20.6% year-on-year. Net income was ¥4,261
million, up 42.1% year-on-year, which includes gains on sale of non-current assets held by the Company.
Business results by segment of the Group are as follows.
[Domestic Consulting Operations]
Although consulting-related business for reconstruction following the Great East Japan Earthquake
decreased, in which the Company has continuously engaged, steady results were obtained in certain key
business areas, such as disaster prevention and mitigation including measures against tsunami and earthquake
resistance, and maintenance and management projects for long-life and functional preservation at public
facilities, by making condensed efforts for order-receiving from the above priority areas.
Compared to the previous fiscal year, which showed significant growth, orders received were ¥45,057
million, down 3.4% year-on-year, and net sales were slightly higher year-on-year, recording ¥41,845 million.
Ordinary income was ¥2,727 million, up 8.0% year-on-year.

5[International Consulting Operations]
The Group continued on its drive for global expansion through the activities, such as, accommodating thedemand for infrastructure development in Southeast Asian countries including Myanmar, Southwest Asian
countries, Latin America, the Middle East and Africa, improving organizational structures including overseas
business hub functions, and participating in the development projects intended to improve urban functions inrelation to ongoing urbanization in developing countries.
However, orders received were ¥28,889 million, down 3.8% year-on-year, partially due to delayed timing ofsigning of contracts for certain large-scale projects. Net sales were ¥20,174 million, slightly lower than theprevious fiscal year. Ordinary income was ¥606 million, up 22.8% year-on-year.
[Power Engineering Operations]
Despite the competitive environment intensified due to cost reductions in capital expenditures and repairs at
the major electric power companies, which are the Company’s mainstay customers, the Company was
successful in receiving orders for the projects, such as, countermeasures against deteriorating facilities atelectric power companies and renewal-related projects for hydroelectric power generation facilities to takeadvantage of the FIT Scheme, by aggressively promoting enhancement of cost competitiveness and cultivationof new customers. The Company also established a business model for the small-scale hydroelectric power
generation business, and successfully created a foundation for future business expansion.
Although orders received were ¥13,595 million, down 14.1% as compared to the previous fiscal year inwhich large-scale contracts of private sector projects were concluded, net sales were ¥17,857 million, up
26.0% year-on-year, mainly due to contributions from the large-scale projects. As a result, along with
contribution from cost reductions, ordinary income significantly increased, and reached to ¥2,801 million, up
123.0% year-on-year.
[Real Estate Leasing Operations]
Net sales in the Real Estate Leasing Operations were ¥821 million, down 27.1% year-on-year, mainly due
to disposal of its certain non-current assets by sale. Ordinary income was ¥590 million, also down 30.2% yearon-year.
2) Outlook for the next fiscal year
In the Domestic Consulting Operations, budgets for public works projects are forecast to remain at a similarlevel due to continued businesses needs for enhancement of safety and security, as well as long-life,
maintenance and renewal of existing facilities. In the International Consulting Operations, the Japanese ODA is
forecast to maintain a certain business volume. Demand for urban infrastructure development is also expected
to continue, especially in the Asian region. In the Power Engineering Operations, while cost reduction efforts at
the electric power companies are expected to be further promoted, a certain level of demand is forecast to
maintain, such as for management, maintenance and repair work for the existing electric power facilities, andinvestment targeting at establishment of distribution networks.
Under such circumstances, the Company will engage in the three key challenges based on the new MediumTerm Management Plan, that is, “Further enhancement of global expansion,” “Further expansion of businessfields and improvement of profitability by intensifying mainstay businesses,” and “Demonstrating merit ofaggregated technological strength toward establishment of new business domains,” as detailed in the later part.
The forecast for consolidated business results for the fiscal year ending June 30, 2016 is: net sales of ¥84.0
billion, operating income of ¥4.2 billion, ordinary income of ¥4.5 billion, and net income of ¥2.2 billion.

(2) Analysis of Consolidated Financial Position
Cash and cash equivalents at the end of the fiscal year under review was ¥11,673 million, an increase of ¥3,207
million from the end of the previous fiscal year. The primary factors were as follows.
Net cash provided by operating activities was ¥881 million (a net inflow of ¥1,340 million during the previous
fiscal year). This cash inflow was primarily due to income before income taxes and minority interests of ¥7,564
6

million, an increase of ¥3,002 million compared to the end of the previous fiscal year, which was partially offset by
an increase in notes and accounts receivable – trade by ¥2,668 million.
Net cash provided by investing activities was ¥2,702 million (a net outflow of ¥4,559 million during theprevious fiscal year). This cash inflow was primarily due to the sale of property, plant and equipment.
Net cash used in financing activities was ¥745 million (a net inflow of ¥62 million during the previous fiscal
year). This cash outflow was primarily due to a payment of cash dividends.
Trends in cash flow indicators for the Company are as follows.
(Reference) Trends in Cash Flow-related Indicators
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
March 2012
March 2013
June 2013
June 2014
June 2015
Equity ratio (%)

54.5

55.0

60.8

62.4

62.6

Equity ratio on market value basis (%)

27.4

34.5

39.2

50.0

43.7

Interest-bearing debt-to-cash flow
ratio (years)

―

3.1

0.2

1.8

1.9

Interest coverage ratio (times)

―

73.7

1,519.0

29.3

18.0

7

2. Management Policies(1) Basic Management Policies of the Company
The Group, under the mission of realizing the value contained in the management philosophy of “Act withintegrity & Contribute to society through technology and engineering,” has defined the specific goals of theGroup in the Group Vision of “To provide services that are of value in building safe and reliable social
infrastructure and comfortable living space.”
For further increase in corporate value, the Group formulated a new Long-Term Management Strategy (forsix years from July 2015 to June 2021) in February 2015.
In the Long-Term Management Strategy, based on the Group Vision, the Group will continue the fusion of
consulting and engineering to evolve into a global company.
(2) Target Management Indicators
Based on the previous Medium-Term Management Plan (from April 2012 to June 2015), formulated in
March 2012, the Group defined its business targets for the fiscal year ended June 2015, the final year of theplan, to be net sales of ¥75.0 billion and operating income and ordinary income of ¥4.0 billion each (ratio of
5.3% to net sales).
Concerning achievement status of these goals, for the fiscal year ended June 30, 2015, net sales were¥81,839 million, operating income was ¥4,502 million (ratio of 5.5% to net sales), and ordinary income was¥5,477 million (ratio of 6.7% to net sales). Thus, both achieved the target level.
Under the Long-Term Management Strategy (from July 2015 to June 2021), the Group has defined its
business targets for the fiscal year ending June 30, 2021, to be net sales of ¥140.0 billion, operating income of¥14.0 billion, and a return on equity (“ROE”) of 10%.
Based on the “Medium-Term Management Plan (NK-AIM: Advance Globally, Intense in Japan and
Demonstrate its Merit)” (from July 2015 to June 2018), formulated to realize the above Long-Term
Management Strategy targets, business targets for the fiscal year ending June 30, 2018 are set at net sales of¥100.0 billion, operating income of ¥6.4 billion, and ROE of 7.5%.
(3) Medium- and Long-Term Business Strategies
The Group has positioned the next three years (from July 2015 to June 2018) as an important period toserve as a springboard for the future, and based on the Medium-Term Management Plan with the fundamental
principles of “Sustainable long-term growth of existing business operations” and “Growth due to new
business operations,” will engage in the three key challenges of “Further enhancement of global expansion,”“Further expansion of business fields and improvement of profitability by intensifying existing mainstay
businesses,” and “Demonstrating merit of aggregated technological strength toward establishment of new
business domains.”
As companywide measures to realize these goals, the Group will actively engage in “Development of nextgeneration fundamental technologies and further improvement of productivity,” “Securing human resourcesand enhancing its development,” and “Promotion of collaboration and enhancement of corporate governance.”8

(4) Issues to be Addressed of the Company
Under the Medium-Term Management Plan, for the next fiscal year (from July 2015 to June 2016),
which will be the first fiscal year of the Plan, the following key strategic business challenges andcompanywide measures will be implemented.
1) Key strategic business challenges
In the Domestic Consulting Operations, the Company will expand its business domain and share bydefining priority businesses, proceed restructuring of the operational processes for higher profitability,and enhance active utilization of alliances.
In the International Consulting Operations, the Company will secure a stable business foundation
through expansion of share in the Japanese ODA, expand business scale in urban development businessand Public-Private Partnership (“PPP”) business, and further strengthen its locally-based structures fororder-receiving and construction.
In the Power Engineering Operations, the Company will increase cost competitiveness and strengthen
sales and marketing capabilities, enhance cooperation within the group (e.g. fusion and cooperation
among the business areas of consulting, products and construction), promote product and technology
development, and reinforce the mechanical and electromechanical consulting division.
In the new operations, the Company will focus on entering new markets and make investments in,such as, formulation of asset holding-type business both in Japan and overseas, and promotion of thesmall-scale hydroelectric power generation business. The Company will also work to establish an urban
space business by exploring the areas of urban development and architecture.
2) Companywide measures to support its growth
For “Development of next-generation fundamental technologies and further improvement of productivity,”
the Company will proceed to develop its technologies with taking global environmental change into account,develop fundamental technologies for the next-generation of Smart Society, make use of the external cuttingedge technologies, refine project management method, secure product quality and increase profitability
through improvement of production processes, and secure and develop human resources who are expected towork with next-generation technology.
For “Securing human resources and enhancing its development,” the Company will adopt the limitation ofwork locale to support various work styles, organize a system of career paths and reestablish training systems,
implement personnel rotations with considering a personal career formulation as well as business strategy,
optimize evaluation systems, and implement appropriate compensation system.
For “Promotion of collaboration and enhancement of corporate governance,” the Company will establish
companywide marketing functions, improve the workplace especially through construction of new
headquarters building, and establish a structure of corporate governance in order for establishment of a highly
transparent management structure.
3. Basic Policy Concerning Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among
companies, the Group prepares its consolidated financial statements using Japanese GAAP. With regard to
application of International Financial Reporting Standards (“IFRS”), the Group’s policy is to respond
appropriately based on consideration of the situation in Japan and overseas.

9

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of June 30, 2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold right
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Claims provable in bankruptcy, claims provablein rehabilitation and other
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

As of June 30, 2015

8,967
13,790
9,799
311
1,448
2,458
(27)
36,74912,14816,802
11,398
369
1,423
2,690
(12)
44,82021,199(12,698)
8,501
2,485
(2,092)393
2,675(2,365)310
17,247
265
(137)
127
8
26,58817,868(11,843)
6,025
2,693
(2,183)510
2,671(2,362)308
17,333
269
(173)
96
251
24,525

78
393
232
81
787

78
416
75
570

9,210
567

9,861
922

122

122

1,404
1,056
(341)
12,01939,394
76,144

1,217
2,433
(364)
14,19339,28984,110(Million yen)
As of June 30, 2014
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on construction contracts
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

11

As of June 30, 2015

3,361
100
130
50
1,782
1,600
842
1,708
7,586
1,438
983
78
205
658
20,528

4,539
164
40
2,637
1,951
1,508
1,416
8,655
1,538
1,019
84
110
20
779
24,466

1,690
78
1,019
59
34
3,245
54
1,598
7,780
28,309

1,526
56
2,110
59
34
2,128
34
712
6,662
31,1287,393
6,209
36,366(3,344)
46,624

7,393
6,209
39,770(3,205)50,167

1,364
(176)
(13)
(269)
905
304
47,83576,144

1,659
(100)
917
2,476
337
52,981
84,110(2) Consolidated Statements of Income and Comprehensive Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on step acquisitions
State subsidy
Total extraordinary income
Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Head office transfer cost
Loss on reduction of non-current assets
Total extraordinary losses
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
Minority interests in income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

For the fiscal year
ended June 30, 2014
79,19359,253
19,93915,6834,256

For the fiscal year
ended June 30, 2015
81,83960,054
21,785
17,283
4,502

51
290
158
499

77
363
527
168
1,137

44
130
14
23
213
4,542

48
92
20
161
5,477

147
147

2,627
45
2,673

-

37

128
128
4,562
1,340
190
1,530
3,032
33
2,998
33
3,032

548
586
7,564
2,373
892
3,266
4,298
36
4,261
36
4,298

476
10
8
693
1,189
4,221

294
176
76
1,187
1,733
6,032

4,185
36

5,983
48

12

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended June 30, 2014
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

7,393

Capital surplus Retained earnings Treasury shares
6,209

33,523(3,434)

Total
shareholders’equity43,690
－

7,393

6,209

33,523(3,434)

43,690Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus

(154)

(154)

Net income

2,998

2,998

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at end of current
period

(53)

(53)

144

144

－

－

2,843

90

2,933

7,393

6,209

36,366(3,344)

46,624

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

890

Deferred
gains orlosses onhedges(186)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

(22)

(963)

Total
accumulated
othercomprehensive
income(281)

Minority
interests

Total net
assets261

43,671
－

890

(186)

(22)

(963)

(281)

261

43,671

Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus(154)

Net income

2,998

Purchase of treasury
shares(53)

Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period

474

10

8

693

1,186

43

1,230

474

10

8

693

1,186

43

4,164

Balance at end of current
period

1,364

(176)

(13)

(269)

905

304

47,835144

13

For the fiscal year ended June 30, 2015
(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

7,393

Capital surplus Retained earnings Treasury shares
6,209

36,366(3,344)

Total
shareholders’equity46,624

(645)
7,393

6,209

(645)

35,721

Changes of items during
periodChange of scope of
consolidation(3,344)45,979366

366

Dividends of surplus

(579)

(579)

Net income

4,261

4,261

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at end of current
period

(10)

(10)

149

149

－

－

4,048

139

4,188

7,393

6,209

39,770(3,205)50,167

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

1,364

Deferred
gains orlosses onhedges(176)

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

(13)

(269)

Total
accumulated
othercomprehensive
income905

Minority
interests

Total net
assets304

47,835
(645)

1,364

(176)

(13)

(269)

905

304

47,190

(151)

52

267

Changes of items during
periodChange of scope of
consolidation(151)

Dividends of surplus(579)

Net income

4,261

Purchase of treasury
shares(10)

Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period

294

176

64

1,187

1,722

(19)

1,702

294

176

(87)

1,187

1,570

33

5,791

Balance at end of current
period

1,659

－

(100)

917

2,476

337

52,981149

14

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended June 30, 2014
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sale of non-current assets
National subsidy
Loss on reduction of non-current assets
Loss (gain) on step acquisitions
Head office transfer cost
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Payments into deposit money
The income by a national subsidy
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of treasury shares of subsidiaries
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

15

For the fiscal year
ended June 30, 2015

4,562
997
316

7,564
1,408
279

-

37

(2)
(147)
128
10
92

(2,628)
(45)
548
3
35

100

(94)

(38)
(341)
44
(12)

(331)
(441)
48
(139)

(5,177)(2,668)

1,907
835(1,739)1,717(1,196)
2,056
366
(45)
(1,037)1,340(1,406)
928
740
(273)
(1,483)
2,081
459
(49)
(1,609)
881

(290)
147
(4,327)
3
(149)
(949)
1,060

190
(750)
(1,256)
5,094(146)(1,116)
1,370

-

43

(165)
108
3
(4,559)

(123)
(792)
188
(0)
2,702

(Million yen)
For the fiscal year
ended June 30, 2014

For the fiscal year
ended June 30, 2015

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from sale of treasury shares
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

16

90
300
(179)
(43)
144
(53)
(193)
(0)
62
8
(3,148)
11,613

(100)
(130)
(53)
149
(10)
(580)
(21)
(745)
103
2,942
8,465

-

265

8,465

11,673

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.

(Changes in Accounting Policies)(Application of accounting standards, etc., on retirement benefits)
The Company began applying the “Accounting Standard for Retirement Benefits” (Accounting Standards
Board of Japan (ASBJ) Statement No. 26, May 17, 2012, hereinafter the “Retirement Benefits AccountingStandard”) and the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, March
26, 2015, hereinafter the “Retirement Benefits Guidance”) with regard to provisions stated in Paragraph 35 of the
Retirement Benefits Accounting Standard and Paragraph 67 of the Retirement Benefits Guidance starting at the
beginning of the consolidated fiscal year under review. Calculation methods for retirement benefit obligations andservice expenses were reassessed, and the method of attributing expected retirement benefits to periods has beenchanged from the point-basis to the benefit formula-basis, while the method of determining discount rates has
been changed from a discount rate based on the approximate number of years of the average remaining periods ofservice for employees, to the method using a single weighted average discount rate reflecting each expected
payment period and amounts for each payment period of retirement benefits.
In applying the Retirement Benefits Accounting Standard, etc., the Company has observed the transitional
treatment set forth in Paragraph 37 of the Retirement Benefits Accounting Standard so that the amount of
retirement benefit obligations and service expenses that were affected as a result of this change are added andsubtracted to retained earnings as of the beginning of the consolidated fiscal year under review.
As a result, net defined benefit liability as of the beginning of the fiscal year under review increased by ¥984
million, and retained earnings decreased by ¥645 million. There was no significant effect on profit or loss for the
consolidated fiscal year under review.
The impact on per share information is addressed in the appropriate section of this document.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts)
The Company began applying the “Practical Solution on Transactions of Delivering the Company’s Own Stockto Employees etc. through Trusts” (Practical Issues Task Force (PITF) No. 30, March 26, 2015) starting at the
beginning of the consolidated fiscal year under review. Differences on disposal are recognized at the time thattreasury shares are disposed of from the Company into trusts, and gains or losses on differences on shares that are
sold from the trust to the employee stock ownership association, dividends from the Company for shares that areheld by the trust, and various expenses associated with the trust are recorded as net values in liabilities. As themethod previously used by the Company is identical to those of the above PITF, there is no effect from thischange in accounting standards.
(Segment Information, etc.)
1 Outline of reportable segments
Reportable segments of the Company are determined as segments whose separate financial information isaccessible from among the constituent units of the Company and are periodically used by the Board of Directors
to determine the allocation of management resources and to evaluate achievements.
The Company has business headquarters separated by product and service, and each business headquarters
formulates a comprehensive strategy based on the products and services it is engaged in while conducting
business activities.
In line with the above, the Company is composed of segments divided by product and service, with each17

business headquarters serving as the foundation, and the four reportable segments are “Domestic Consulting
Operations,” “International Consulting Operations,” “Power Engineering Operations,” and “Real Estate Leasing
Operations.”“Domestic Consulting Operations” engages in businesses such as research, planning, designing, and oversightwith regard to improvement of social capital within Japan.
“International Consulting Operations” engages in businesses such as research, planning, designing, andoversight with regard to improvement of social capital outside of Japan.
“Power Engineering Operations” engages in production and sale of products such as hydraulic turbine electric
power generators, system control machinery, and voltage converters, construction of items such as powertransformers and power transmitters, and electrical power engineering consulting.
“Real Estate Leasing Operations” engages in the leasing of real estate within Japan.
2 Calculation methods for net sales, income or loss, assets, and other items by reportable segment
Accounting treatments for reportable business segments closely match those shown in “Basic Principles for
Preparation of Consolidated Financial Statements.”
Inter-segment net sales and transfers are based on third-party transaction prices.

18

3 Information on net sales, income or loss, assets, and other items by reportable segment
For the fiscal year ended June 30, 2014

(Million yen)

Reportable segment
Other(Note)

Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Real Estate
Leasing
Operations

Subtotal

41,817

20,947

14,1691,125

78,0591,133

79,193

453

―

210

124

788

7

795

42,271

20,947

14,3791,250

78,8481,140

79,988Net sales
Net sales to outside customers
Inter-segment net sales
or transfers
Total

Total

Segment income (loss)

2,525

493

1,256

846

5,121

(574)

4,547

Segment assets

19,344

17,832

7,839

7,690

52,70634,09486,801

169
308
37
40

58
7
19
99

232
―
4
42

145
―
9
14

605
316
70
196

392
―
197
65

997
316
267
261

140

81

179

1

403

4,126

4,529

Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Increase in property, plant and equipment
and intangible assets(Note)The “Other” category is a structural unit that does not receive profits by providing services, or only
receives supplementary profits.

For the fiscal year ended June 30, 2015

(Million yen)
Reportable segment

Net sales
Net sales to outside customers
Inter-segment net sales
or transfers
Total

Other
(Note)

Domestic
Consulting
Operations

International
Consulting
Operations

Power
Engineering
Operations

Real Estate
Leasing
Operations

Subtotal

41,845

20,174

17,857821

80,6981,141

81,839

371

22

234

124

752

2

754
82,594

Total

42,21620,19618,092945

81,451

1,143

Segment income (loss)

2,727

606

2,801

590

6,726

(1,243)

5,482

Segment assets

18,153

20,892

9,313

4,240

52,60137,872

90,473

170
232
26
46

79
50
43
128

222
―
3
52

99
―
3
5

571
282
77
233

836
―
231
46

1,408
282
309
279

109

101

414

12

638

1,165

1,804

Other items
Depreciation
Amortization of goodwill
Interest income
Interest expenses
Increase in property, plant and equipment
and intangible assets(Note)The “Other” category is a structural unit that does not receive profits by providing services, or only
receives supplementary profits.

19

4

Differences in total amounts by reportable segment and amounts on the consolidated financial statements
and primary content of these differences (Items related to adjustments of difference)
Net sales
Reportable segment total
Net sales of “Other” category
Elimination of inter-segment transactions
Net sales on consolidated financial statements(Million yen)
Current fiscal year

Previous fiscal year
78,8481,140(795)

81,451
1,143(754)

79,193

81,839(Million yen)
Current fiscal year

IncomePrevious fiscal year
5,121
6,726
Reportable segment total(574)(1,243)
Loss of “Other” category (Note)(4)(4)
Elimination of inter-segment transactions
4,542
5,477
Ordinary income on consolidated financial statements(Note) Losses in the “Other” category include companywide expenses such as general and administrative
expenses that are not attributable to any reportable segment.
(Million yen)
AssetsPrevious fiscal year
Current fiscal year
52,70652,601
Reportable segment total
34,09437,872
Assets of “Other” category (Note)(10,656)(6,363)Elimination of inter-segment transactions
76,144
84,110Total assets on consolidated financial statements(Note) Assets in the “Other” category include companywide assets such as land, buildings, and investment
securities that are not attributable to any reportable segment.
(Million yen)
Reportable segment total

Other

Adjustment amount

Other items

Amount recorded on
consolidated financial
statements
Previous
Current
fiscal year fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Previous
fiscal year

Current
fiscal year

Depreciation

605

571

392

836

―

―

997

1,408

Amortization of
goodwill

316

282

―

―

―

―

316

282

Interest income (Note)

70

77

197

231

(216)

(231)

51

77

196

233

65

46

(216)

(231)

44

48

403

638

4,126

1,165

―

―

4,529

1,804

Interest expenses(Note)
Increase in property,
plant andequipment andintangible assets(Note)

The content of adjustments in “interest income” and “interest expenses” are primarily the elimination ofinternal interest used for the purposes of managerial accounting.

20

[Related Information]
For the fiscal year ended June 30, 2014
1 Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.
2 Information by geographical area
(1) Net salesJapan56,265

Asia
13,215

Middle East
1,316

Africa4,461

Latin America
3,551

Other
382

(Million yen)Total
79,193(Note) 1 Net sales are classified based on the location where services are rendered.
2 Method of classifying countries or regions, and primary countries or regions attributable to each area:(1) Method of classifying countries or regions
By geographical proximity.
(2) Primary countries or regions attributable to each area, excluding Japan
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Palestine, Turkey
Africa: Egypt, Kenya, Rwanda
Latin America: Peru, Panama, Colombia
Other: Papua New Guinea, Bosnia andHerzegovina, Kyrgyzstan(2) Property, plant and equipment
Disclosure is omitted, as the amount of property, plant and equipment within Japan amounts to over 90% of
the total property, plant and equipment on the consolidated balance sheets.
3 Information on major customers(Million yen)
Name of customer

Net sales

Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

16,631

Domestic Consulting Operations

Japan International Cooperation Agency

9,004International Consulting Operations

Tokyo Electric Power Company, Incorporated

6,028

Power Engineering Operations

21

For the fiscal year ended June 30, 2015
1 Information by product and service
Statement is omitted, as similar information is disclosed in Segment Information.
2 Information by geographical area
(1) Net salesJapan
60,203

Asia
12,670

Middle East
1,446

Africa3,442

Latin America
3,895

Other
181

(Million yen)Total
81,839(Note) 1 Net sales are classified based on the location where services are rendered.
2 Method of classifying countries or regions, and primary countries or regions attributable to each area:(1) Method of classifying countries or regions
By geographical proximity.
(2) Primary countries or regions attributable to each area, excluding Japan
Asia: Vietnam, Indonesia, India
Middle East: Iraq, Iran, Palestine
Africa: Kenya, Egypt, Uganda
Latin America: Peru, Panama, Paraguay
Other: Kyrgyzstan, Tuvalu, Papua New Guinea(2) Property, plant and equipment
Disclosure is omitted, as the amount of property, plant and equipment within Japan amounts to over 90% of
the total property, plant and equipment on the consolidated balance sheets.
3 Information on major customers(Million yen)
Name of customer

Net sales

Related segment nameMinistry of Land, Infrastructure, Transport and Tourism

14,844

Domestic Consulting Operations

Tokyo Electric Power Company, Incorporated

7,674Power Engineering Operations

Japan International Cooperation Agency

6,757International Consulting Operations

22

[Information on Impairment Loss of Non-current Assets by Reportable Segment]
For the fiscal year ended June 30, 2014
There is no relevant information.

For the fiscal year ended June 30, 2015
There is no relevant information.

[Information on Amortization of Goodwill and Unamortized Balances by Reportable Segment]
For the fiscal year ended June 30, 2014
(Million yen)
Reportable segment
Domestic International
Power
Real EstateConsulting Consulting Engineering Leasing
Operations Operations Operations Operations
Balance of
goodwill at
beginning of
period(Note)

232――

Corporateandeliminations

Other
Subtotal

―

232

―

―

Total

232

Amounts for the amortization of goodwill are not stated as identical information is disclosed in Segment
Information.

For the fiscal year ended June 30, 2015
There is no relevant information.

[Information on Gain on Bargain Purchase by Reportable Segment]
For the fiscal year ended June 30, 2014
There is no relevant information.

For the fiscal year ended June 30, 2015
There is no relevant information.

23

(Per Share Information)
For the fiscal year ended
June 30, 2014

For the fiscal year ended
June 30, 2015

Net assets per share¥626.53¥690.09

Net income per share¥39.61¥56.01(Notes) 1. Diluted net income per share is not stated as there are no dilutive shares.
2. As described in “Changes in Accounting Policies,” the Company applies the Retirement Benefits
Accounting Standard, etc., and follows the transitional treatment as stipulated in Paragraph 37 of the
Retirement Benefits Accounting Standard.
As a result, net assets per share for the fiscal year under review decreased by ¥8.46. There was no
significant effect on net income per share.
3. The basis for the calculation of net income per share and diluted net income per share is as follows.
Item

For the fiscal year ended
June 30, 2014

Net income (Million yen)

For the fiscal year ended
June 30, 2015

2,998

4,261

Amount not attributable to common shareholders(Million yen)――

Net income relating to common shares (Million yen)

2,998

4,261

Average number of shares of common shares during
75,693,610
76,077,020
the period (Thousand shares)
4. Regarding the Company’s stock held in trust as treasury shares in shareholders’ equity, for the purposesof calculating the amounts of net income per share, these are included in treasury shares that are
eliminated for calculating the average number of shares during the period, and for the purposes ofcalculating the amounts of net assets per share, these are included in the number of treasury shareseliminated from the total number of issued shares at the end of the period.
For the purposes of the calculating amounts of net income per share, the average number of shares ofthese eliminated shares of treasury shares was 1,564,994 shares for the fiscal year ended June 30, 2014,
and 1,148,493 shares for the fiscal year ended June 30, 2015, and for the purposes of calculating theamounts of net assets per share, the number of shares at the end of each fiscal year of these eliminatedshares of treasury shares was 1,375,000 shares for the fiscal year ended June 30, 2014, and 930,000
shares for the fiscal year ended June 30, 2015.

(Significant Subsequent Events)
There is no relevant information.

24

5. Other(1) Status of Production, Orders, and Sales
By period

Net sales 2

Net sales 1

Orders received

Category
Domestic Consulting Operations
International Consulting
Operations
Power Engineering Operations

For the fiscal year ended
June 30, 2015
AmountComposition(Million yen)(%)
45,05751.5

30,02332.5(Note 1) 28,889

33.0

15,831

17.1

13,595

15.5

Real Estate Leasing Operations

－

Other

13

0.0

30

0.0

Total

92,485100.0

87,573100.0

Domestic Consulting Operations
International Consulting
Operations
Power Engineering Operations

44,54256.2

44,40554.3

22,563

28.5

21,67926.5

10,94813.8

14,904

18.2

Real Estate Leasing Operations

1,125

1.4

821

1.0

Other

12

0.1

28

0.0

Total

79,193100.0

81,839100.0

Domestic Consulting Operations
International Consulting
Operations
Power Engineering Operations

41,81752.8

41,84551.1

20,94726.5

20,17424.7

14,16917.9

17,857

21.8

Real Estate Leasing Operations

1,125

1.4

821

1.0

Other

1,133

1.4

1,141

1.4

Total

79,193100.0

81,839100.0

By period
Category
Outstanding orders

For the fiscal year ended
June 30, 2014
AmountComposition(Million yen)(%)
46,61750.4

Domestic Consulting Operations
International Consulting
Operations
Power Engineering Operations－

For the fiscal year ended
June 30, 2014
AmountComposition(Million yen)(%)
27,32333.0

For the fiscal year ended
June 30, 2015
AmountComposition(Million yen)(%)
27,97431.3

44,21753.4

51,427

57.6

11,216

13.6

9,907

11.1

Real Estate Leasing Operations

－

－

Other

4

0.0

6

0.0

Total

82,761100.0

89,315100.0(Notes) 1. Includes ¥1,205 million, ¥427 million, and ¥246 million for NIPPON KOEI VIETNAM
INTERNATIONAL CO., LTD., PHILKOEI INTERNATIONAL, INC., and PT. INDOKOEIINTERNATIONAL, respectively, as the amounts of outstanding orders at the beginning of
consolidation for these companies, which were consolidated from the fiscal year under review.
2. The above amounts are exclusive of consumption taxes, etc.
3. The above amounts are for outside customers, and do not include inter-segment transactions ortransfers.
4. Net sales 1 are by categorized by the segment in which the order was received, and net sales 2 arecategorized by the segment in which the operation was carried out.

25

(2) Changes in Corporate Officers
Please see “Notice Regarding Changes in Corporate Officers,” separately disclosed today.

26