Consolidated Financial Results
for the Nine Months Ended March 31, 2018
[Japanese GAAP]May 15, 2018
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english
Representative: Ryuichi Arimoto, Representative Director and President
Contact: Tetsumi Aoki, General Manager, Accounting Department
Phone: +81-3-3238-8040
Scheduled date of filing quarterly securities report: May 15, 2018
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: None
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended March 31, 2018 (July 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen% Million yen%
March 31, 2018
67,522
5.2
3,131 △13.1
3,217 △20.2
2,419
△7.5
March 31, 2017
64,168
24.0
3,603
93.8
4,032 144.6
2,615 538.6(Note) Comprehensive income: Nine months ended March 31, 2018
: ¥2,337 million [ 43.2 %]Nine months ended March 31, 2017

: ¥1,632 million [ - %]Diluted net income
per share
Nine months ended
Yen
Yen
March 31, 2018
156.32
March 31, 2017169.76(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Net income per share” are amounts on the assumption that the Company conducts the share consolidationon the beginning of previous fiscal year.
Net income per share(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
March 31, 2018
129,536
56,23943.1
June 30, 2017
113,865
54,87447.9(Reference) Equity: As of March 31, 2018
: ¥55,894 million
As of June 30, 2017
: ¥54,508 million
2. Dividends
Annual dividends
2nd
3rd
quarter-end
quarter-end
Yen
Yen
-

1st
quarter-end
Yen-

Fiscal year ended June 30, 2017
Fiscal year ending June 30, 2018
Fiscal year ending June 30, 2018 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None1Year-end

Total

Yen
75.00

Yen
75.00

75.00

75.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2018 (July 1, 2017 to June 30, 2018)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net income
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Full year
114,000 12.5
7,700 40.9
7,800 30.9
4,900 49.0
316.57(Note) Revision to the financial results forecast announced most recently: None
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes
in scope of consolidation): None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: Yes
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
As of March 31, 2018
: 15,905,049 shares
As of June 30, 2017
: 17,331,302 shares2) Total number of treasury stock at the end of the period:
As of March 31, 2018:394,291 shares
As of June 30, 2017
: 1,891,831 shares
3) Average number of shares during the period:
Nine months ended March 31, 2018
: 15,478,430 shares
Nine months ended March 31, 2017
: 15,404,591 shares(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The
figures for “Total number of issued shares at the end of the period”, “Total number of treasury stock at the end of theperiod” and “Average number of shares during the period” are amounts on the assumption that the Company conducts
the share consolidation on the beginning of previous fiscal year.
* These consolidated financial results are not subject to quarterly audit procedures by Certified Public Accountants or audit
firm.
* 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 theCompany as of the date of publication of this document and certain assumptions deemed reasonable. Actual results, etc. may
differ significantly due to a wide range of factors.

2

Table of Contents of Attached Documents
1. Qualitative Information on Quarterly Financial Results ........................................................................................... 2(1) Explanation of Operating Results ....................................................................................................................... 2(2) Explanation of Financial Position ....................................................................................................................... 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ..................... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ............................................................................ 5(1) Quarterly Consolidated Balance Sheet ................................................................................................................ 5(2) Quarterly Consolidated Statement of Income and Comprehensive Income ........................................................ 7(3) Quarterly Consolidated Statement of Cash Flows ............................................................................................... 8(4) Notes to Quarterly Consolidated Financial Statements ....................................................................................... 9(Notes on Going Concern Assumption) ............................................................................................................... 9(Notes on Significant Changes in Shareholders’ Equity) ..................................................................................... 9(Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements) . 9(Changes in Accounting Policies) ........................................................................................................................ 9(Segment Information) ....................................................................................................................................... 10(Significant Subsequent Events) ........................................................................................................................ 11
3. Other Information ................................................................................................................................................... 12(1) Status of Orders and Sales ................................................................................................................................. 121

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the nine months ended March 31, 2018 (from July 1, 2017 to March 31, 2018), Japan’s economy
continued on a moderate recovery path with signs of private consumption picking up against the background ofsteady improvements in employment and income. On the other hand, overseas economies saw a modest
recovery though consideration must be given to the policies of the United States and Europe and the economic
future in Asia.
The business environment of Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries (together, the“Group”) continued to be stable, and each business segment saw steady demand. The Group undertook
measures for disaster prevention and mitigation, and measures to prevent deterioration of infrastructure forpublic works projects in the Domestic Consulting Operations, promoted strategic exporting of infrastructure
systems in the International Consulting Operations, renewed power distribution equipment in the PowerEngineering Operations and newly built and renovated architectural installation in the UK in the Urban &Spatial Development Operations.
Under these circumstances, based on the Medium-Term Management Plan “NK-AIM” (from July 2015 to June2018), with the fundamental principles of “Sustainable growth of three core businesses,” “Generation andexpansion of new businesses,” and “Autonomy and collaboration,” the Group tackled the three focus themes of“Further advance of global expansion,” “Further expansion of business fields and improvement of profitability
by intensifying existing core businesses,” and “Demonstrating the true merits of aggregated technologies forestablishment of new business domains.” Moreover, as companywide measures to realize these goals, the Group
actively advanced “Development of next-generation core technologies and further improvement of technicalstrengths and productivity,” “Strengthening of human resource recruitment and training,” and “Promotion ofcollaboration and enhancement of corporate governance.”
In terms of Group performance, as a result of the above, orders received for the nine months ended March 31,2018 decreased 13.5% year on year to ¥70,505 million. This was due to the acceptance of orders relating tomultiple large projects mainly in the transportation business area for the previous fiscal year. Net sales increased
5.2% year on year to ¥67,522 million. While operating income decreased 13.1% year on year to ¥3,131 million
due to lower sales of the Power Engineering Operations which achieve high profit margin and increased cost for
selling general and administrative expenses. Ordinary income decreased 20.2% year on year to ¥3,217 million,
and profit attributable to owners of parent decreased 7.5% year on year to ¥ 2,419million.
Net sales for the nine months ended March 31, 2018 were ¥67,522 million, an achievement rate of 59.2%
against the net sales forecast of ¥114,000 million for the fiscal year ending June 30, 2018 (nine months ended
March 31, 2017: 63.3%).
The Group’s accounting method for net sales has been changed from the completed-contract method to thepercentage-of-completion method effective from the first quarter of the fiscal year. For each quarter of theprevious fiscal year and the previous consolidated fiscal year, the previous completed-contract method has been
applied to the quarterly consolidated financial statements and the consolidated financial statements. Details are
as stated in Changes in Accounting Policies.
Business results for each segment are as follows:[Domestic Consulting Operations]
The Domestic Consulting Operations worked to increase its business areas and market shares by specifying
significant businesses, improving quality of service and profitability by restructuring work procedures, andeffectively entering into alliances.
As a result, orders received decreased 4.8% year on year to ¥30,390 million due to orders for large projects
received in the previous year (including approximately ¥2 billion of consulting services relating to the Greater
Cairo Metro Line No.4 - Phase 1 project in Egypt), and yet steadily increased 8.2% year from two years ago.
2

Net sales increased 2.0% year on year to ¥25,892 million, operating income increased 23.1% year on year to¥1,239 million and ordinary income increased 9.4% year on year to ¥1,089 million.
[International Consulting Operations]
The International Consulting Operations worked to improve operation strategy functions focusing on regional
officers, strengthen the production system, develop a management foundation to respond to risks, and strengthen
the capabilities of and cooperation with Group companies.
As a result, orders received decreased 38.5% year on year to ¥19,422 million due to orders for large projects
received in the previous year (including approximately ¥8 billion of consulting services relating to the Greater
Cairo Metro Line No.4 - Phase 1 project in Egypt), also decreased 4.6% year from two years ago. Net sales
increased 37.4% year on year to ¥20,077 million, operating income increased 115.0% year on year to ¥2,197
million and ordinary income increased 106.1% year on year to ¥1,951 million.
[Power Engineering Operations]
In the Power Engineering Operations, we worked to increase cost competitiveness through strict cost
reductions, strengthen sales and marketing capabilities through proposing cost reduction plans, enhance fusionand cooperation among the business areas of consulting, products, and construction, promote the developmentof products and technology, and reinforce and expand the mechanical and electromechanical consulting division.
As a result, orders received increased 21.3% year on year to ¥12,619 million. Net sales decreased 25.1% year
on year to ¥10,972 million, operating income decreased 58.5% year on year to ¥1,254 million and ordinary
income decreased 53.8% year on year to ¥1,377 million due to the lower level of outstanding orders as of theend of the previous fiscal year compared to previous years.
[Urban & Spatial Development Operations]
The Urban & Spatial Development Operations strove to expand the scope of business in the urban
development and architectural design area by growing businesses within the UK through BDP and collaborating
as a group in the Asian region.
As a result, orders received increased 6.7% year on year to ¥8,031 million. Net sales increased 13.4% year on
year to ¥9,761 million, operating income increased 191.2% year on year to ¥145 million and ordinary income
increased 164.8% year on year to ¥144 million.
[Real Estate Leasing Operations]
In the Real Estate Leasing Operations, net sales decreased 10.2% year on year to ¥331 million. Both operating
income and ordinary income decreased 2.0% year on year to ¥297 million.

3(2) Explanation of Financial Position
Total assets as of the end of the third quarter of the fiscal year, amounted to ¥129,536 million, an increase of¥15,670 million from the end of the previous fiscal year.
In the Assets section, current assets were ¥71,531 million, an increase of ¥16,732 million from the end of theprevious fiscal year. This is mainly due to a ¥7,495 million decrease in cash and deposits, a ¥17,227 million
increase in notes and accounts receivable-trade and a ¥6,855 million increase in work in process.
Non-current assets were ¥58,005 million, a decrease of ¥1,062 million from the end of the previous fiscal year.
This is mainly due to a ¥1,050 million decrease in land.
In the Liabilities section, current liabilities were ¥46,082 million, an increase of ¥15,741 million from the endof the previous fiscal year. This is mainly due to a ¥3,077 million increase in notes and accounts payable-trade
and a ¥13,000 million increase in short-term loans payable.
Non-current liabilities were ¥27,213 million, a decrease of ¥1,436 million from the end of the previous fiscal
year. This is mainly due to a ¥1,704 million decrease in long-term loans payable.
Net assets were ¥56,239 million, an increase of ¥1,365 million from the end of the previous fiscal year. The
primary factors behind this were ¥2,419 million in profit attributable to owners of parent and ¥1,192 million in
cash dividends paid.
As a result, the shareholders’ equity ratio decreased 4.8 percentage points from the end of the previous fiscal
year to 43.1%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The consolidated financial results forecast for the fiscal year ending June 30, 2018 have not changed from theforecast announced in the Consolidated Financial Results for the Fiscal Year Ended June 30, 2017 dated August
14, 2017.

42. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of June 30, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 2018

19,59318,09011,7275,392(6)54,79812,09835,317
18,5835,537(5)71,531

5,591
17,648
1,295
24,535

5,319
16,598
1,247
23,1658,685
5,214
13,9008,568
4,976
13,544

20,799(168)
20,63059,067
113,865

21,471(176)
21,29458,005
129,536(Millions of yen)
As of June 30, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Provision for directors' bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors' retirement benefits
Provision for environmental measures
Liability for retirement benefits
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of March 31, 2018

4,012
1,760
1,049
10,7971,365
88
54
11,211
30,341

7,089
13,0002,029
453
12,676
2,622
145
8,066
46,082

21,413
45
34
3,963
3,193
28,65058,991

19,708
32
34
3,803
3,634
27,21373,2967,393
7,240
43,450(3,607)54,477

7,415
6,427
43,354(1,270)55,926

1,016(1,813)828
30
36554,874
113,865681(1,508)
795
(31)
345
56,239129,536(2) Quarterly Consolidated Statement of Income and Comprehensive Income
For the Nine months ended March 31, 2018 and 2017

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Gain on sales of investment securities
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of property, plant and equipment
Total extraordinary income
Extraordinary losses
Head office transfer cost
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable toProfit (loss) attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income (loss)
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Defined retirement benefit plans
Total other comprehensive income (loss)
Comprehensive income (loss)
Comprehensive income (loss) attributable toComprehensive income (loss) attributable to owners of parent
Comprehensive income (loss) attributable to non-controlling interests

7

For the nine months
ended March 31, 2017
(From July 1, 2016
to March 31, 2017)
64,16843,766
20,401
16,798
3,603(Millions of yen)
For the nine months
ended March 31, 2018
(From July 1, 2017
to March 31, 2018)
67,52246,00021,522
18,391
3,131

136
157
129
170
594

124
219
158
152
654

144
21
165
4,032

158
153
151
104
568
3,217

-

1,276
1,276

105
105
3,926
1,031
285
1,317
2,609

488
488
4,004
1,013
575
1,588
2,416

2,615
(5)

2,419
(3)

673
(1,642)
(8)
(977)
1,632

(336)
290
(32)
(79)
2,337

1,632
(0)

2,356
(19)

(3) Quarterly Consolidated Statement of Cash Flows

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of property, plant and equipment

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund receivable
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities

Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

For the nine months
ended March 31, 2017
(From July 1, 2016
to March 31, 2017)(Millions of yen)
For the nine months
ended March 31, 2018
(From July 1, 2017
to March 31, 2018)

3,926
1,158
396
(3)
8
1,658

4,004
1,166
357
(158)
153
(1,280)
8
1,248

6

90

(294)

(343)

(13,590)(17,236)(6,937)
1,965
(340)
7,265
(253)
(3,544)(8,578)
236
(109)
(999)
(9,450)(6,870)
3,090
90
1,906
(1,712)(2,132)(17,618)298(120)(1,549)(18,990)(1,286)(969)
9(1,011)
(760)
380
(170)
(3,808)

1,418
(399)
2,336
(898)
172
(586)
183
(188)
2,038

(4,700)22,121(1,168)
119
(29)
(772)
(44)
15,526
(138)
2,129
9,400
11,53013,000(1,166)202(24)(1,189)(34)
10,78752(6,112)
17,083
10,971

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes on Significant Changes in Shareholders’ Equity)
Based on the resolution made at the Board of Directors’ meeting held on August 14, 2017, the Company
cancelled 1,436,731 shares of treasury stock on August 31, 2017. This resulted in decreases of ¥835 million incapital surplus, ¥1,323 million in retained earnings and ¥2,158 million in treasury stock for the nine months
ended March 31, 2018.
In addition, based on the resolution made at the Board of Directors’ meeting held on October 12, 2017, theCompany issued new shares as compensation with restricted stocks for directors on November 10, 2017,
resulting in increases of ¥21 million in capital stock and ¥21 million in capital reserve for the nine months
ended March 31, 2018.
As a result, capital stock, capital surplus, retained earnings and treasury stock were ¥7,415 million, ¥6,427
million, ¥43,354 million and ¥1,270 million, respectively, as of the end of the third quarter of the fiscal year.
(Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial Statements)(Deferral of cost variance)
Cost variance caused by seasonal changes in operation rates, etc. is expected to be almost completely
eliminated by the end of the cost accounting period, which is, therefore, deferred as other current liabilities.
（Changes in Accounting Policies）
The Company and domestic subsidiaries previously had been applying the completed-contract method(including partial completed-contract method) in principle when recording net sales of business contracts
relating to Domestic Consulting Operations, International Consulting Operations, and Power Engineering
Operations. From business contracts effective from the current first quarter, the method has been changed to thepercentage-of-completion method (estimate of the degree of completion is mainly based on the cost to cost
method). The previous revenue recognition standard was reviewed again. We considered the increasing
opportunities to receive large project orders under the government-led strategic exporting of infrastructure
systems and the expansion of the Company’s international operations including the acquisition of anarchitectural firm in the UK. As a result, the Company judged that the percentage-of-completion method would
be more appropriate to present its operating results and financial conditions. Relating systems were developed,
and taking this as an opportunity, the Company has decided to make such change.
As this change was made possible with the introduction of a new accounting system, using the percentage-ofcompletion method to calculate retroactively is practically impossible.
Furthermore, since the cumulative impact at the beginning of the first quarter of the fiscal year cannot becalculated in the case where the system is applied retrospectively, the outstanding balance at the end of theprevious fiscal year is treated as the outstanding balance at the beginning of the first quarter of the fiscal year.
As for business contracts relating to work in process included at the end of the previous fiscal year, thecompleted-contract method will be applied in principle, and net sales will be recorded in the financial quarter inwhich the completion date of each business falls.
As a result, compared with the previous accounting method, net sales were ¥8,682 million, and gross profit,
operating income, ordinary income, and profit before income taxes all increased by ¥2,540 million for the ninemonths ended March 31, 2018.
Impacts on segment information and others are stated in the relevant section.

9

(Segment Information)
For the nine months ended March 31, 2017 (from July 1, 2016 to March 31, 2017)1)

Net sales and segment profit or loss by reportable segment(Millions of yen)
Reportable Segments
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations

Subtotal

Others(Note)Total

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

25,385

14,60814,6538,608

368

63,625543

64,168

299

14

171

11

96

594

1

595

Total

25,685

14,623

14,8258,619

465

64,219544

64,764

Segment profit (loss)

995

946

2,984

54

303

5,285

(1,250)4,034(Note) “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.

2)

Differences between the total amount of profit or loss of reportable segments and the amounts in quarterly
consolidated statement of income and comprehensive income, and major breakdown of such differences(reconciliation)(Millions of yen)
IncomeAmountReportable segment total

5,285

Profit (loss) of “others” category(1,250)Elimination of inter-segment transactions(1)

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

4,032

10

For the nine months ended March 31, 2018 (from July 1, 2017 to March 31, 2018)1)

Net sales and segment profit or loss by reportable segment(Millions of yen)
Reportable Segments
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations

Subtotal

Others(Note)Total

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

25,892

20,077

10,9729,761

331

67,034488

67,522

334

16

179

24

118

672

1

674

Total

26,22620,094

11,151

9,785

449

67,707490

68,197

Segment profit (loss)

1,089

1,951

1,377

144

297

4,860

(1,656)3,203(Note) “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.

2)

Differences between the total amount of profit or loss of reportable segments and the amounts in quarterly
consolidated statement of income and comprehensive income, and major breakdown of such differences(reconciliation)(Millions of yen)
IncomeAmountReportable segment total

4,860

Profit (loss) of “others” category(1,656)13

Elimination of inter-segment transactions
Ordinary Income (loss) in the quarterly consolidated
statement of income and comprehensive income

3)

3,217

Information concerning changes to reporting segments, etc.
As stated in Changes in Accounting Policies, the accounting policy for business contracts effective fromthe current first quarter was changed to the percentage-of-completion method (estimate of degree ofcompletion is mainly based on the cost to cost method). As a result of this change, compared with theprevious accounting method, net sales and segment profit increased by ¥2,896 million and ¥907 million for
Domestic Consulting Operations, ¥5,039 million and ¥1,402 million for International Consulting Operations,¥624 million and ¥207 million for Power Engineering Operations, and ¥121 million and ¥23 million for
Others, respectively, for the nine months ended March 31, 2018.

(Significant Subsequent Events)
There is no relevant information.

11

3. Other Information(1) Status of Orders and Sales
By period
Category/Operations

Net sales 2

Net sales 1

Orders received

Domestic Consulting
International Consulting

31,58038.8

19,42227.5(Note 1) 41,573

35.4

Power Engineering

10,40012.8

12,61917.9

14,087

12.0

Urban & Spatial Development

7,525

9.2

8,031

11.4

13,460

11.5

Real Estate Leasing-

Others

24

0.0

41

0.1

55

0.0

Total

81,466100.0

70,505100.0

117,442

100.0

Domestic Consulting

26,76541.7

27,26640.4

45,47044.9International Consulting

15,871

24.7

21,25431.5

26,38426.0

Power Engineering

12,485

19.5

8,892

13.2

14,583

14.4

Urban & Spatial Development

8,608

13.4

9,752

14.4

14,344

14.1

368

0.6

331

0.5

473

0.5

Real Estate Leasing

-

69

0.1

26

0.0

81

0.1

Total

64,168100.0

67,522100.0

101,338

100.0

Domestic Consulting

25,385

39.6

25,892

38.3

43,516

42.9

International Consulting

14,60822.8

20,07729.7

24,491

24.2

Power Engineering

14,65322.8

10,972

16.2

17,577

17.3

Urban & Spatial Development

8,608

13.4

9,761

14.6

14,347

14.2

368

0.6

331

0.5

473

0.5

Real Estate Leasing
Others

543

0.8

488

0.7

931

0.9

Total

64,168100.0

67,522100.0

101,338

100.0

Category/Operations

Impact of foreignexchange fluctuations-

OthersBy period

Outstanding Orders

For the nine months ended
For the nine months ended
For the fiscal year ended
March 31, 2017
March 31, 2018
June 30, 2017
AmountAmountAmountRatio (%)
Ratio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)
(Millions of yen)
31,93439.2
30,39043.1
48,265
41.1

Domestic Consulting
International Consulting
Power Engineering

As of March 31, 2017
As of March 31, 2018
As of June 30, 2017
AmountAmountAmountRatio (%)
Ratio (%)
Ratio (%)
(Millions of yen)
(Millions of yen)
(Millions of yen)
2,110

(1,250)

2,177

-

0

-

(1,802)378(1,678)

Real Estate Leasing

-

-

-

Others

-

-

-

Total

308

(871)

498

Urban & Spatial Development

Domestic Consulting

33,70826.5

34,45726.8

31,33324.8

International Consulting

71,821

56.6

68,28553.1

71,368

56.6

Power Engineering

8,118

6.4

13,433

10.5

9,707

7.7

Urban & Spatial Development

13,366

10.5

12,346

9.6

13,688

10.9

0.0

39

0.0

24

Real Estate Leasing-

Others

4

-

0.0

Total
127,019100.0
128,563100.0
126,122100.0(Notes) 1. System Science Consultants Inc. became a consolidated subsidiary during the previous fiscal year, and orders
received at the time of its consolidation are included. System Science Consultants Inc. merged with Koei ResearchInstitute International Corp. (consolidated subsidiary) as of July 1, 2017, and the company name changed to Koei
Research & Consulting Inc.

2. The above amounts are exclusive of consumption taxes.
3. The above amounts are for external customers.
4. Net sales 1 is by segment which received orders. Net sales 2 is by segment which provided services.

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