Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Summary of Results for the First Quarter of the Fiscal Year Ending March 2022
(Japanese Standards) (Consolidated Basis)
August 4, 2021
Name of listed company Takuma Co., Ltd.

Listed stock exchange

Listing code 6013
Representative

URL https://www.takuma.co.jp/english/
Hiroaki Nanjo

Contact for inquiries

President and Representative Director
Manager, Corporate Communications &Investor Relations DepartmentCorporate Planning & Administration
Division

Tokyo Stock Exchange

Hiroyuki Kobayashi

Planned quarterly report submission dateAugust 4, 2021

Planned dividend payment start date

None

Availability of supplementary quarterly results materials:

None

Quarterly results briefing:

None(E-mail)koho-ir@takuma.co.jp(All amounts rounded down to the nearest million yen)

1.

Consolidated results for Q1 FY2021 (April 1, 2021, to June 30, 2021)(Percentages indicate percent of change from thecorresponding quarter of the previous year.)(1) Consolidated results (cumulative)
Net sales

Operating profit

Millions of yen%

Millions of yen%

Q1 FY2021

27,112(16.0)

1,045(52.8)

1,268 (49.8)

792(57.6)

Q1 FY2020

32,28922.92,21775.8

2,526

1,870

200.1

(Note) Comprehensive income:Q1 FY2021
Q1 FY2020% Millions of yen

Quarterly profit
attributable to ownersof parent

Ordinary profit% Millions of yen

65.8

435 million yen (down 83.5 %)2,639 million yen (― %)Basic earnings per share

Diluted earnings per share

YenYenQ1 FY2021

9.76―

Q1 FY2020

23.05

―

(2) Consolidated financial position
Total assets
Q1 FY2021

Equity Q1 FY2021
FY2020Capital adequacy ratio

Millions of yen
162,007

Millions of yen
89,676%
55.1

177,741

90,55550.7

FY2020(Reference)

Net assets

89,265 million yen
90,142 million yen

2.

Dividend status
Annual dividend
Q1

Q2

Q3

Q4

TotalYen

Yen

Yen

Yen

Yen

FY2020

―

18.00

―

18.00

36.00

FY2021

―
18.00

―

18.00

36.00

FY2021 (forecast)(Note) Revisions of the most recently announced dividend forecast: None3.

Consolidated earnings forecast for FY2021 (April 1, 2021, to March 31, 2022)(Percentages indicate percent of change from the previous year.)Net sales
Millions of yen

FY2021

Operating profit%

Millions of yen

137,000 (6.6)

10,400% Millions of yen(0.7)(Note) Revisions of the most recently announced earnings forecast: None

Profit attributable toowners of parent

Ordinary profit
11,000% Millions of yen

(0.3)

7,600

Basic earnings
per share%Yen

0.9

93.57

○ Attachments
1.
(1)
(2)
2.
(1)
(2)

Qualitative information related to the quarterly results under review ......................................................... 2Explanation of business results .................................................................................................................... 2Explanation concerning forward-looking statements such as consolidated earnings forecasts ................... 5
Quarterly Consolidated Financial Statements .............................................................................................. 6
Quarterly Consolidated Balance Sheet ........................................................................................................ 6
Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ............................................................................................................................... 83. Supplementary forecast materials ................................................................................................................ 10(1) Consolidated earnings forecast by segment ................................................................................................. 10(2) Consolidated capital investment, depreciation, and research and development expenses ........................... 10―1―

1. Qualitative information related to the quarterly results under review
Forward-looking statements in the text reflect the judgment of management as of the last day of the quarterly
consolidated accounting period under review.

(1) Explanation of business results(Unit: Millions of yen)

Q1 consolidated cumulative period of FY2021
Segment

Ordersreceived

Net sales

OperatingprofitBacklog

Change from the corresponding periodof FY 2020
Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

28,65822,393

1,610383,408(41,042)(4,810)(1,165)

Overseas Environment and Energy
Business

231

124(98)534

9(117)(44)

Package Boiler Business

5,063

3,192

(129)

6,391

84(19)(32)

Equipment and Systems Business

1,664

1,572

169

5,440

(937)

(110)

73

Total

35,61627,282

1,551

395,775(41,885)(5,057)(1,169)

(85)

(170)

(505)

(203)

108

(119)

(2)

35,531

27,112

1,045

395,571(41,777)(5,177)(1,171)

Adjustments
Total

During the Q1 consolidated cumulative period of FY2021, orders received fell 41,777 million yen compared to thecorresponding period of FY2020 to 35,531 million yen, and net sales fell 5,177 million yen to 27,112 million yen.
The decline was due primarily to a contraction in the Domestic Environment and Energy Business.
Operating profit fell 1,171 million yen compared to the corresponding period of FY2020 to 1,045 million yen, while
ordinary profit fell 1,258 million yen to 1,268 million yen. Profit attributable to owners of parent fell 1,078 million
yen to 792 million yen. These results were due primarily to a decline in profits in the Domestic Environment andEnergy Business.
While uncertainty about the future caused by the COVID-19 pandemic had some impact, for example by weighing
on capital investment appetite and spurring delays in plans, performance during the Q1 consolidated cumulative
period of FY2021 remained robust overall, and no serious effects materialized.
A description of each segment’s results follows.

―2―

Domestic Environment and Energy Business
During the Q1 consolidated cumulative period of FY2021, efforts to take advantage of continued robust demandyielded orders including one waste treatment plant long-term O&M project and one biomass power plant construction
project. However, orders received fell 41,042 million yen to 28,658 million yen compared to the corresponding periodof FY2020. The decline reflects the fact that we received more orders for comparatively large projects, including two
new waste treatment plant construction projects with a DBO component (encompassing construction and operation)and one primary equipment improvement project, in the corresponding period of FY2020. In addition, net sales fell
4,810 million yen to 22,393 million yen compared to the corresponding period of FY2020, and operating profit fell
1,165 million yen to 1,610 million yen. This decline was due primarily to changes in the mix of projects in the EPC
business.

Overseas Environment and Energy Business
During the Q1 consolidated cumulative period of FY2021, orders received remained on par with the corresponding
period of FY2020 at 231 million yen due to an absence of orders for new plant construction. In addition, net sales
fell 117 million yen to 124 million yen compared to the corresponding period of FY2020, when we posted net sales
from a new plant construction project. The cumulative result was an operating loss of 98 million yen, increased froma loss of 53 million yen.

―3―

Package Boiler BusinessAlthough the impacts of demand that has fallen due to the effects of the COVID-19 pandemic continued in sectors
such as the hotel industry, overall the economy is showing signs of a gradual recovery. During the Q1 consolidated
cumulative period of FY2021, orders received, net sales, and operating profit remained on par with the corresponding
period of FY2020 at 5,063 million yen, 3,192 million yen, and a loss of 129 million yen, respectively, thanks tocontinued efforts to capture demand.

Equipment and Systems Business
During the Q1 consolidated cumulative period of FY2021, orders received fell 937 million yen compared to thecorresponding period of FY2020 to 1,664 million yen. This decline was result of factors including delays in privatesector building and equipment construction plans due to the impact of the COVID-19 pandemic. At the same time,net sales fell slightly compared to the corresponding period of FY2020 to 1,572 million yen, and operating profit rose
73 million yen to 169 million yen, as demand for semiconductor industry equipment firmed as a result of an expanding
market environment.

We expect to receive orders in our Domestic Environment and Energy Business for waste treatment plant construction
and operation as well as biomass power plant construction during or after Q2, and we continue to make steadyprogress in the construction of previously ordered plants. The COVID-19 pandemic has not yet had a substantial
impact on the Group’s performance, and we will continue to do our utmost to achieve our goals for FY2021,
specifically orders received of 180,000 million yen and ordinary profit of 11,000 million yen.
However, potential effects in the event of a worsening of the pandemic might include fewer new orders if demandslows and new orders are delayed, as well as lower net sales if delivery of existing orders is delayed.

―4―(2) Explanation concerning forward-looking statements such as consolidated earnings forecasts
The Group expects to see continued demand for its principal products, including replacements and service life
extensions for aging waste treatment plants, and construction of biomass power plants, against a backdrop offavorable energy policies. That said, the number of COVID-19 infections remains high, and there is a continued lackof clarity concerning the future direction of the economy.
Against this backdrop, the Group’s performance during FY2021 remained robust during the Q1 consolidated
cumulative period of FY2021, and FY2021 earnings forecast announced on May 14, 2021, has not been changed.
The Group manages its results exclusively on an annual basis because our results tend to fluctuate seasonally, forexample Q4 net sales significantly exceed those of other quarters. The reason is that many projects are delivered justbefore the end of the consolidated fiscal year, so progress and transfers of facilities to customers tend to increase as
Q4 progresses.
Additionally, should the effects of the COVID-19 pandemic broaden or last longer than anticipated, our performance
could be affected, for example in the form of a decline in new orders due to contracting demand or delayed orders ora slowdown in net sales as a result of delays in deliveries of previously ordered projects. These earnings forecasts do
not take such potential impacts into account. In the event it becomes necessary to revise the earnings forecast due toan expansion in the effects of the pandemic, we will make that information available in a timely and appropriatemanner.
• Earnings forecasts and other forward-looking statements in this document are based on information currently
available to the Company and on certain assumptions that are deemed to be reasonable. They do not constitute acommitment on the part of the Company to achieve any particular level of performance. Actual performance may
diverge significantly for a variety of reasons.

―5―2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
Q4 FY2020(March 31, 2021)

Q1 FY2021(June 30, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade44,422
84,222

68,867-Notes and accounts receivable - trade, and contract assets
Inventories

4,465

42,956
5,929

OtherAllowance for doubtful accounts

1,962(16)

2,903
(14)

135,056

120,642

9,759

9,913

Intangible assets
Investments and other assets

267

261

Investment securities
Other

17,74015,05816,874
14,450Allowance for doubtful accounts

(142)

(135)

Total investments and other assets

32,65731,19042,68541,364

177,741

162,007

Total current assets
Non-current assets
Property, plant and equipment

Total non-current assets
Total assets―6―

(Unit: Millions of yen)
Q4 FY2020(March 31, 2021)

Q1 FY2021(June 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

30,717
13,18427,709
11,091

Short-term borrowings
Income taxes payable

5,602
2,569

400
76

Advances received
Contract liabilities

9,349
-

9,927

Provision for bonuses
Provision for product warranties

3,364
66

1,420
63

Provision for loss on construction contracts
Provision for loss on liquidation of subsidiaries and associates

3,946
1,003

3,105
-

Other

6,354

7,199

Total current liabilities

76,15760,993

80
241

60
201

Retirement benefit liability
Other

10,451
256

10,623452

Total non-current liabilities

11,02911,33887,18672,331Shareholders' equity
Share capital

13,367

13,367

Capital surplus
Retained earnings

3,840
70,8503,840
70,328Treasury shares(2,087)(2,087)

Total shareholders’ equity

85,97085,448

4,461

4,081

3630

2941

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and other officers)

Total liabilities
Net assets

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(355)(335)

Total accumulated other comprehensive income

4,172

3,816

Non-controlling interests

412

410

Total net assets

90,55589,676

Liabilities and net assets

177,741

162,007―7―

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
First quarterly consolidated cumulative accounting period (Q1)
(Unit: Millions of yen)
Q1 FY2020(April 1, 2020,to June 30, 2020)

Q1 FY2021(April 1, 2021,to June 30, 2021)

Net sales

32,28927,112

Cost of sales

26,307

22,147Gross profit

5,981

4,965

Selling, general and administrative expenses

3,764

3,919

Operating profit

2,217

1,045

Interest income
Dividend income

5277

3247

Share of profit of entities accounted for using equity method
Other

54

227

Total non-operating income

337

280

32

Share of loss of entities accounted for using equity method
Commitment fees

577

Loss on disposal of non-current assets
Other

110

38
10

Total non-operating expenses

2858

2,526

1,268

New factory construction expenses-76

Total extraordinary losses-76

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary losses

Quarterly profit before income taxes

2,526

1,191

Income taxes

657

405

Quarterly profit

1,869

786

(1)

(6)

1,870

792

Quarterly loss attributable to non-controlling interests
Quarterly profit attributable to owners of parent―8―

Quarterly Consolidated Statement of Comprehensive Income
First quarterly consolidated cumulative accounting period (Q1)
(Unit: Millions of yen)
Q1 FY2020(April 1, 2020,to June 30, 2020)
Quarterly profit
Other comprehensive income

Q1 FY2021(April 1, 2021,to June 30, 2021)
1,869

786

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

735
(1)

(379)
(6)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

529

15
19

Total other comprehensive income

769

(350)

2,639

435

2,639

437

(0)

(1)

Quarterly comprehensive income
Comprehensive income attributable to
Quarterly comprehensive income attributable to owners of parent
Quarterly comprehensive income attributable to non-controllinginterests―9―

3. Supplementary forecast materials(1) Consolidated earnings forecast by segment(Unit: Millions of yen)
FY2021 (forecast)
Segment
Orders received

Net sales

Backlog

Domestic Environment and Energy Business

151,500

110,000

418,643

Overseas Environment and Energy Business

3,000

500

2,927

Package Boiler Business

18,00018,0004,521

Equipment and Systems Business

8,000

9,000

4,348

180,500

137,500

430,441

(500)

(500)

(288)

180,000

137,000

430,152

Total
Adjustments
Total(2) Consolidated capital investment, depreciation, and research and development expenses forecast(Unit: Millions of yen)
FY2020(actual)

FY2021(forecast)

ChangeCapital investment

2,420

4,000

1,579

Depreciation

1,036

1,000(36)

Research and development expenses

1,047

1,400

352

―10―