Consolidated Financial Results
for the Three Months Ended September 30, 2021
[IFRS]
November 15, 2021
Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english/
Representative: Hiroaki Shinya, Representative Director and President
Contact: Yasushi Hirusaki, Director General of Corporate Management Headquarters, Director
Phone: +81-3-3238-8040
Scheduled date of filing quarterly securities report: November 15, 2021
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 Three Months Ended September 30,2021 (from July 1, 2021 to September 30,
2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
ProfitRevenue
Operating profit Profit before tax
Profitattributable toowners of parent
Three months ended
Million yen% Million yen% Million yen% Million yen% Million yen%
September 30, 2021
23,960 13.8
(320)
(209)
(220)
(264)
September 30, 2020
21,053(1,112)(1,295)(1,132)(1,158)
Basic earnings
per share
Three months ended
September 30, 2021
September 30, 2020

Yen
(17.58)(76.74)

Diluted earnings
per shareYen(17.58)(76.74)(2) Consolidated Financial Position
Total assets
As of
September 30, 2021
June 30, 2021

Million yen
164,485
156,137

Total equity
Million yen
70,73972,294Equityattributable toowners of parent
Million yen
69,21170,725

Ratio of equity
attributable toowners of parent tototal assets

%
42.1
45.3

2. Dividends
Annual dividends per share
2nd
3rd
Fiscal yearquarter-end
quarter-end
end
Yen
Yen
Yen
75.00

1st
quarter-end
Yen-

Fiscal year ended June 30, 2021
Fiscal year ending June 30, 2022
Fiscal year ending June 30, 2022 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None1-100.00

Total
Yen
75.00
100.003. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2022 (from July 1, 2021 to June 30,
2022)(% indicates changes from the previous corresponding period.)
Revenue

Profit attributable toowners of parent

Operating profit

Basic earnings
per shareYen
312.33

Million yen% Million yen%
Million yen%
Full year
131,000 11.1
7,700
8.0
4,700
3.7
(Note) 1. Revision to the financial results forecast announced most recently: None
2. Given the growing repercussions of the novel coronavirus (COVID-19), this forecast was developed on theinformation available to the Company as of the date of publication of this document. Since the forecast may
change significantly depending on when the COVID-19 is contained and other variables, the Company will
disclose revised forecasts as soon as possible if any revisions become necessary based on its performanceoutlook.
* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
New companies: None
Excluded companies: None
(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
(3) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021:
15,048,568 shares
As of June 30, 2021:
15,048,568 shares2) Total number of treasury shares at the end of the period
As of September 30, 2021:
815 shares
As of June 30, 2021:
60 shares
3) Average number of shares during the period
Three months ended September 30, 2021:
15,048,080 shares
Three months ended September 30, 2020:
15,092,490 shares* These consolidated financial results are not subject to quarterly audit procedures by certified public accountants or
audit firms.
* 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 are not intended as a promise by the Company thatthey will be achieved. Actual results, etc. may differ significantly due to a wide range of factors.

2

Table of Contents of Attachment
1. Qualitative Information on Quarterly Financial Results ............................................................................................. 2(1) Explanation of Operating Results .......................................................................................................................... 2(2) Explanation of Financial Position .......................................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ....................... 4
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ............................................................ 5(1) Condensed Quarterly Consolidated Statement of Financial Position .................................................................... 5(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income ............................ 7(3) Condensed Quarterly Consolidated Statement of Changes in Equity.................................................................... 9(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................................ 11(5) Primary Notes to Condensed Quarterly Consolidated Financial Statements ....................................................... 12(Notes on Going Concern Assumption) .............................................................................................................. 12(Notes on Significant Changes in Shareholders’ Equity) .................................................................................... 12(Segment Information, etc.)................................................................................................................................. 12(Significant Subsequent Events).......................................................................................................................... 15
3. Other Information ...................................................................................................................................................... 16(1) Status of Orders and Revenue.............................................................................................................................. 16

1

1. Qualitative Information on Quarterly Financial Results
The Group has been disclosing consolidated financial statements in accordance with International Financial
Reporting Standards (IFRS) since the end of the previous fiscal year, and the financial figures for the three months
ended September 30, 2020 are also reclassified to IFRS for comparison and analysis.

(1) Explanation of Operating Results
During the three months ended September 30, 2021 (July 1, 2021 to September 30, 2021), the Japanese economy
remained in a difficult position due to the impact of COVID-19. The business is expected to pick up due to theimprovement of overseas economies as measures are taken to prevent the spread of infection and vaccinations arepromoted. But we need to pay close attention to the trends of infectious diseases in Japan and overseas andincreasing downside risks due to the impact of such diseases throughout the supply chain. Also, we need to closely
monitor the impact of fluctuations in financial and capital markets.
With regard to the business environment surrounding Nippon Koei Co., Ltd. (the “Company”) and its subsidiaries(together, the “Group”), in the Consulting Business, the Japanese government is expected to maintain a high levelof budget mainly for national resilience (building a national land, region, and economic society that can minimize
damage and quickly recover in the event of a disaster). We expect to see acceleration of digital reform and growing
needs from management business. In international markets, there are risks related to impact on the progress of thebusiness as well as travel restrictions due to the spread of COVID-19. But strong demand is expected to continue
as high targets for orders received are set in the Japanese government's “Infrastructure System Overseas Promotion
Strategy 2025.” In the Urban & Spatial Development Business, there are strong needs for urban development
projects including reconstruction of the urban structure in Japan, Europe, and the United States, etc. and urban
infrastructure projects in developing countries. In the Energy Business, new opportunities have been created leading
to competition toward the realization of carbon neutrality in 2050 in Japan and there are growing needs forrenewable energy development and better efficiency of energy use worldwide.
The Group is taking steps to prevent COVID-19 with an active defense system to protect the lives and health of
employees and their families and to minimize the impact on customers. Our internal policy is to promote teleworkand other work style reforms, developing relevant infrastructure and various rules, and achieving a work-lifebalance and improving productivity.
Under such a market environment, we have drawn up the medium-term management plan “Building Resilience2024” to implement three resilience policies, and positioned the period from July 2021 to June 2024, which is firststep of the “NKG Global Strategy 2030,” as a transformation period to make the Group resilient.
As the first resilience policy, we reorganized the conventional five business operations into three domains(Consulting, Urban & Spatial Development, and Energy) to strengthen the business axis. As the second resilience
policy, we will aim to realize matrix management by transitioning to a holding company structure and preparing
and maintaining a regional management system. As the third resilience policy, we aim to strengthen technologicaldevelopment and human resource development toward the establishment of "NKG brand" and "NKG quality." Also,
we will promote “well-being management” (management that values employees, organizations, and society) as abasis for that.
As a result, the Group ended the three months of the current fiscal year with orders received having decreased
6.5% year on year to ¥25,319 million, revenue increased 13.8% year on year to ¥23,960 million, operating loss
decreased 71.2% year on year to ¥320 million and loss attributable to owners of parent decreased 77.2% year on
year to ¥264 million.
Revenue for the three months ended September 30, 2021 were ¥23,960 million, an achievement rate of 18.3%
against the revenue forecast of ¥131,000 million for the fiscal year ending June 30, 2022 (same period of previous
fiscal year: 19.7%). This is due to the fact that, as the Group's business structure, a large proportion of operations
is progressing in the second half of the fiscal year and there are seasonal fluctuations in the recording of revenue.
On the other hand, because expenses such as selling, general and administrative expenses were generated evenly

2throughout the year, the Group recorded an operating loss, and loss attributable to owners of parent for the threemonths ended September 30, 2021.
Business results for each segment are as follows: Among the business segments, the “Domestic Consulting”
segment and the “International Consulting” segment have been integrated into the “Consulting” segment, and also
the “Power Engineering” segment and the “Energy” segment have been integrated into the “Energy” segment fromthe first quarter of the fiscal year ending June 30, 2022. The purpose is to strengthen the business which is the first
resilience policy in the medium-term management plan “Building Resilience 2024”. Also, the “Real Estate Leasing”
has been included in “Others” as it is no longer a business segment. Due to these changes, the conventional six
segments of the “Domestic Consulting,” “International Consulting,” “Power Engineering,” “Urban & Spatial
Development,” “Energy” and “Real Estate Leasing” have been transformed into the three segments of the“Consulting,” “Urban & Spatial Development” and “Energy.” Therefore, the following comparisons with theprevious consolidated first quarter are based on the figures reclassified into the new segments.
[Consulting]In the Consulting Business, we improved the productivity through DX promotion and thoroughly carried out
revenue management, quality control, risk management and safety management. We also advanced and globally
deployed disaster prevention and mitigation technologies, expanded the transportation-related business, promoted
services contributing to decarbonization and deployed the management area on a full-scale basis.
As a result, orders received decreased 0.1% year on year to ¥20,318 million. Revenue was strong compared withthe same period of the previous year when there were business delays and travel suspensions due to the impact of
COVID-19. Revenue increased 14.2% year on year to ¥14,850 million and operating loss decreased 57.8% year on
year to ¥403 million.
[Urban & Spatial Development]
In the Urban & Spatial Development Business, we promoted urban development and Smart City business,
responded to changes in the UK market and expanded our business in the Canadian market while making efforts to
expand our business in the Asian market through Group-wide collaboration.
As a result, orders received decreased 1.4% year on year to ¥2,868 million and revenue increased 11.4% year on
year to ¥5,002 million and operating profit decreased 19.7% year on year to 316 million.
[Energy]In the Energy Business, we strengthened the production framework of electric power equipment, which is our
main force, developed new products, and formulated new projects in the power generation business such as
renewable energy. We formulated infrastructures for the battery storage business mainly in Europe as well as theaggregation business (a business that provides energy services through electricity market transactions, etc. byaggregating distributed energy sources) in Japan in the energy management business.
As a result, revenue increased 16.1% year on year to ¥3,925 million while orders received decreased 43.9% year
on year to ¥2,133 million due to a reactionary decrease from the previous fiscal year when orders for large-scale
projects were received, as well as delays in the timing of orders for projects. Operating profit was ¥260 million(same period of previous fiscal year: operating loss of ¥107 million due to the provision for loss on construction
contracts).
(2) Explanation of Financial Position
Total assets as of the end of the first quarter of the fiscal year ending June 30, 2022, amounted to ¥164,485 million,
an increase of ¥8,347 million from the end of the previous fiscal year. This was mainly due to a ¥1,292 million
increase in cash and cash equivalents and a ¥5,546 million increase in contract assets.
Total liabilities were ¥93,746 million, an increase of ¥9,902 million from the end of the previous fiscal year. This3

was mainly due to a ¥15,089 million increase in borrowings while a ¥2,517 million decrease in trade and otherpayables.
Total equity was ¥70,739 million, a decrease of ¥1,555 million from the end of the previous fiscal year. This was
mainly due to a decrease in retained earnings of ¥1,393 million.
As a result, ratio of equity attributable to owners of parent to total assets decreased 3.2 percentage points from theend of the previous fiscal year to 42.1%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The business performance of the Group in the consolidated first quarter under review generally progressed as
initially expected. As for the future outlook, the full-year earnings forecast for the fiscal year ending June 30, 2022
(from July 1, 2021 to June 30, 2022) remains unchanged from the forecast announced on August 13, 2021 taking
into account the trends of each segment, etc. although there are uncertainties such as the situation in the control of
COVID-19.

4

2. Condensed Quarterly Consolidated Financial Statements and Primary Notes(1) Condensed Quarterly Consolidated Statement of Financial Position(Millions of yen)

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

5

As of June 30, 2021

As of September 30, 2021

17,83821,18924,3271,315
3,900
68,57019,131
20,63529,873
1,484
3,634
74,76040,832
9,229
9,182
6,502
4,094
2,077
4,391
7,434
2,437
1,384
87,566
156,137

40,871
9,248
9,367
6,554
4,074
2,216
4,397
7,609
2,511
2,873
89,725
164,485

(Millions of yen)

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

6

As of June 30, 2021

As of September 30, 2021

8,320
2,678
9,076
10,645
3,005
2,228
818
12,11548,88924,331
2,637
6,559
10,121
2,227
191
737
11,312
58,11818,712
6,699
648
3,861
375
4,533
122
34,953
83,843

17,790
6,769
651
3,907
1,872
4,405
231
35,62793,746

7,480
6,428
(0)
2,820
53,99670,725
1,569
72,294
156,137

7,480
6,423
(2)
2,706
52,603
69,211
1,527
70,739164,485

(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income(Condensed Quarterly Consolidated Statement of Profit or Loss)

For the three months
ended September 30, 2020
(From July 1, 2020 to
September 30, 2020)
21,053(15,257)
5,796(6,690)(Millions of yen)
For the three months
ended September 30, 2021
(From July 1, 2021 toSeptember 30, 2021)
23,960(17,542)6,418(6,946)

35

105

246
(500)
(1,112)62(244)(1,295)163(1,132)

161
(59)
(320)
218
(107)
(209)
(11)
(220)

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Profit (loss)(1,158)25(1,132)

(264)
44
(220)

Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share(76.74)(76.74)(17.58)(17.58)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit (loss) of investments accounted
for using equity method
Other income
Other expenses
Operating profit (loss)
Finance income
Finance costs
Profit (loss) before tax
Income tax expense
Profit (loss)

7

(Condensed Quarterly Consolidated Statement of Comprehensive Income)

Profit (loss)
Other comprehensive income
Items that will not be reclassified to profit or loss
Equity financial assets measured at fair value through othercomprehensive income
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit or loss

For the three months
ended September 30, 2020
(From July 1, 2020 to
September 30, 2020)(1,132)(Millions of yen)
For the three months
ended September 30, 2021
(From July 1, 2021 toSeptember 30, 2021)
(220)

(44)

175

-

0

(44)

176

1
222

1
(280)

Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Other comprehensive income
Comprehensive income

(10)

(16)

213
168
(963)

(295)
(119)
(339)

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

(960)
(2)
(963)

(377)
38
(339)

8

(3) Condensed Quarterly Consolidated Statements of Changes in Equity
For the Three Month Ended September 30, 2020 (From July 1, 2020 to September 30, 2020)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of July 1, 2020
Profit (loss)
Other comprehensive income

Capital surplus

Treasury shares

Exchangedifferences on
Cash flow hedges
translation offoreign operations

Equity financial
assets measured
at fair value
through othercomprehensive
income

7,458

6,498

(2,415)

(432)

(36)

471

-

-

-

-

-

-

-

-

-

240

1

(44)

-

-

-

240

1

(44)

Issuance of new shares

-

-

-

-

-

-

Change in scope of consolidation

-

-

-

-

-

-

Total comprehensive income

Purchase of treasury shares

-

-

(0)

-

-

Disposal of treasury shares

-

(7)

122

-

-

-

Cancellation of treasury shares

-

-

-

-

-

-

Dividends

-

-

-

-

-

-

Purchase and disposal of non-controlling interests

-

-

-

-

-

-

Transfer to retained earnings

-

-

-

-

-

-

-

(7)

122

-

-

-

7,458

6,490

(2,293)

(192)

(34)

426

Total transactions with owners
Balance as of September 30, 2020

Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined benefit
plans
Balance as of July 1, 2020

Retained earnings

Total

Non-controllinginterests

Total

Total

-

1

52,67564,2191,502

65,721

Profit (loss)--(1,158)(1,158)25(1,132)Other comprehensive income

-

197

-

197

(28)

168

-

197

(1,158)

(960)

(2)

(963)

Issuance of new shares

Total comprehensive income

-

-

-

-

-

-

Change in scope of consolidation

-

-

-

-

-

-

Purchase of treasury shares

-

-

-

(0)

-

(0)

Disposal of treasury shares

-

-

-

114

-

114

Cancellation of treasury shares

-

-

-

-

-

-

Dividends--(1,138)(1,138)(28)(1,166)

Purchase and disposal of non-controlling interests

-

-

-

-

-

-

Transfer to retained earnings

-

-

-

-

-

-

-

-

(1,138)(1,023)(28)(1,052)-

199

50,37962,234

1,470

63,705

Total transactions with owners
Balance as of September 30, 20209

For the Three Month Ended September 30, 2021 (From July 1, 2021 to September 30, 2021)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of July 1, 2021

Capital surplus

Treasury shares

6,428

(0)

7,480

Exchangedifferences on
Cash flow hedges
translation offoreign operations
1,982

Equity financial
assets measured
at fair value
through othercomprehensive
income(30)

867

Profit (loss)

-

-

-

-

-

-

Other comprehensive income

-

-

-

(290)

1

175

-

-

-

(290)

1

175

Issuance of new shares

Total comprehensive income

-

-

-

-

-

-

Change in scope of consolidation

-

-

-

-

-

-

Purchase of treasury shares

-

-

(2)

-

-

-

Disposal of treasury shares

-

-

-

-

-

-

Cancellation of treasury shares

-

-

-

-

-

-

Dividends

-

-

-

-

-

-

Purchase and disposal of non-controlling interests

-

(4)

-

-

-

-

Transfer to retained earnings

-

-

-

-

-

-

-

(4)

(2)

-

-

-

7,480

6,423

(2)

1,692

(28)

1,043

Total transactions with owners
Balance as of September 30, 2021

Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined benefit
plans
Balance as of July 1, 2021

Retained earnings

Total

Non-controllinginterests

Total

Total

-

2,820

53,99670,725

1,569

72,294

Profit (loss)

-

-

(264)

(264)

44

(220)

Other comprehensive income

0

(113)

-

(113)

(5)

(119)

0

(113)

(264)

(377)

38

(339)

Issuance of new shares

-

-

-

-

-

-

Change in scope of consolidation

-

-

-

-

-

-

Purchase of treasury shares

-

-

-

(2)

-

(2)

Disposal of treasury shares

-

-

-

-

-

-

Cancellation of treasury shares

-

-

-

-

-

-

Dividends--(1,128)(1,128)(15)(1,143)Purchase and disposal of non-controlling interests

-

-

-

(4)

(65)

(69)

Transfer to retained earnings

(0)

(0)

0

-

-

-

Total comprehensive income

Total transactions with owners
Balance as of September 30, 2021

(0)

(0)

(1,128)(1,135)(80)(1,215)-2,706

52,603

69,211

1,527

70,73910

(4) Condensed Quarterly Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Loss (gain) on financial assets measured at fair value through profit
or loss
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted for using equity
methodLoss (gain) on derivatives
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in insurance claims receivable
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in consumption taxes payable
Increase (decrease) in deposits received
Increase (decrese) in bonus payable
Increase (decrease) in provisions
Other
Sub total
Dividends received
Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment, and investment property
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale and redemption of other financial assets
Payments for acquisition of subsidiaries
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid
Other
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

11

For the three months
ended September 30, 2020
(From July 1, 2020 to
September 30, 2020)(Millions of yen)
For the three months
ended September 30, 2021
(From July 1, 2021 toSeptember 30, 2021)(1,295)
1,135

(209)
1,177

(54)

55

(70)
101

(107)
107

(35)

(105)

80
2,349
(5,610)(2,202)
957
(50)
(287)
1,407
489
(158)
(3,242)17
61(102)(1,045)(4,311)(78)
836(5,574)(1,500)(2,543)(453)(2,512)
(842)
1,464
1,416
(91)
(8,961)35
71(101)(2,174)(11,131)

(5)
96
(610)
(83)
(0)
9
(593)

(194)
105
(274)
(187)
(50)
71
(216)
8
(738)

120,000(121,000)
15,000(864)(697)(1,134)122
11,425
6,520
15,472(125)
21,86832,000(16,072)
(959)
(504)
(1,119)(71)
13,273
1,404
17,838(111)
19,131

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

(Notes on Significant Changes in Shareholders’ Equity)
There is no relevant information.

(Segment Information, etc.)
1. Outline of reportable segments(1) Method of determination of reportable segments
Reportable segments of the Group are determined as segments whose separate financial information isaccessible from among the constituent units of the Group and are periodically used by the Board of Directors
to determine the allocation of management resources and to evaluate achievements.
The Group has business management divisions separated by type of products and services at the head office.
Each business management divisions formulates a comprehensive strategy based on the products and services
and engages in conducting business activities.
In line with the above, the Group is composed of segments divided by products and services, with eachbusiness management division serving as the foundation, and the three reportable segments are “Consulting”,“Urban & Spatial Development”, “Energy”.
(2) Types of products and services by reportable segment
The “Consulting” engages in business within and outside Japan such as site surveying, planning,
evaluation/assessment, designing, and construction management. It operates in the fields of rivers and water
resources, water and sewage, agricultural and rural development, dams and power generation, transportation(roads, railroads, ports and airports), urban and regional development, geology, disaster prevention, sandcontrol, environment, information systems, etc.
"Urban & Spatial Development” engages in the structuring, planning, design, and operation of urban andspatial development business.
The “Energy” engages in manufacturing and sale of electric power equipment and control devices as well asplanning and design of mechanical, electrical and communication facilities, construction and construction
management as well as the energy management business utilizing distributed energy resources.
2. Changes in reportable segments
From the first quarter of the fiscal year ending June 30, 2022, the Company has integrated the "Domestic
Consulting" and "International Consulting" segments into the "Consulting" segment, and the "PowerEngineering" and "Energy" segments into the "Energy" segment to strengthen the business axis, which is thefirst resilience policy in the medium-term management plan "Building Resilience 2024." In addition, "RealEstate Leasing" is included in "Others" as it is no longer a business segment. As a result of these changes, theprevious six segments of "Domestic Consulting," "International Consulting," "Power Engineering," "Urban &Spatial Development," "Energy," and "Real Estate Leasing" have been reclassified into three segments of"Consulting," "Urban & Spatial Development," and "Energy". Also, PT. CIKAENGAN TIRTA ENERGI, anaffiliated company of the Company, has been reclassified from the “Energy” segment to the “Consulting”
segment since the first quarter of the fiscal year ending June 30, 2022 as a result of reviewing the groupmanagement framework.
Please note that segment information for the first quarter of the previous fiscal year ended June 30, 2021 isprovided based on the new reporting segments.

12

3. Information about reportable segments
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price, etc.
For the three months ended September 30, 2020 (from July 1, 2020 to September 30, 2020)(Millions of yen)
Reportable Segments
Consulting

Urban & Spatial
Development

EnergyTotal

Revenue
Revenue from external customers

13,002

4,489

3,381

20,873

Intersegment revenue and transfers

75

14

57

147

Total

13,078

4,504

3,439

21,021

Segment profit (loss)

(956)

394

(107)

(669)

Adjustments(Note 2)

Consolidated

Finance income
Finance costs
Profit (loss) before tax
Others(Note 1)

Total

Revenue
Revenue from external customers

180

21,053-21,053

Intersegment revenue and transfers

172

320

(320)

-

Total

352

21,374(320)

21,053

Segment profit (loss)(450)(1,120)7(1,112)Finance income

62

Finance costs(244)

Profit (loss) before tax(1,295)
Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues.
2. "Adjustments" is mainly elimination of transaction between segments.

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For the three months ended September 30, 2021 (from July 1, 2021 to September 30, 2021)(Millions of yen)
Reportable Segments
Consulting

Urban & Spatial
Development

EnergyTotal

Revenue
Revenue from external customers
Intersegment revenue and transfers

14,850

5,002

3,925

23,779

58

11

59

129

Total

14,909

5,014

3,984

23,908Segment profit (loss)

(403)

316

260

172

Adjustments(Note 2)

Consolidated

Finance income
Finance costs
Profit (loss) before tax
Others(Note 1)

Total

Revenue
Revenue from external customers

181

23,960-23,960Intersegment revenue and transfers

134

263

(263)

-

Total

316

24,224(263)

23,960

Segment profit (loss)

(495)

(322)

1

(320)

Finance income

218

Finance costs(107)

Profit (loss) before tax(209)Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues.
2. "Adjustments" is mainly elimination of transaction between segments.

14

(Significant Subsequent Events)
Issuance of new shares as restricted stock compensation
The Board of Directors resolved to issue new shares for restricted stock compensation at the extraordinary Boardof Directors’ meeting held on September 29, 2021, as follows. This is a system whereby an eligible person has theright to issue or dispose of the Company’s common stock by paying all of the monetary claims provided by theCompany as in-kind contribution in accordance with provisions of the Companies Act, Article 208, Paragraph 2.
The transfer-restricted share allotment agreement between each eligible person and the Company stipulates:
1. Purpose and reason for issuance
The Company aims to have the directors (not including outside directors; “Eligible Directors”) share benefits
and risks of stock price fluctuations with shareholders and further enhance their willingness to contribute toimproving stock prices and enhancing corporate value. Therefore, the Company decided, at the Board of
Directors’ meeting held on August 14, 2017, to introduce a restricted stock compensation system (the“System”), which will issue restricted stock to Eligible Directors.
Furthermore, the 73rd Annual General Meeting of Shareholders held on September 28, 2017, approved, under
the System, setting the total amount of monetary compensation claims payable to the Eligible Directors ascompensation related to restricted stock at a level where it does “not exceed an annual amount of ¥60 million.”
In addition, the total number of 50,000 shares, which are restricted stock to be allotted to Eligible Directors
will be the upper limit of the number of restricted shares to be allotted in each fiscal year, and the transfer
restriction period of restricted stock will be between one year to five years, determined by the Board of
Directors.
2. Issuance overview(1) Payment date(2) Class and number of shares to be issued(3) Issue price(4) Total issue price of shares to be issued(5) Capitalization amount(6) Total capitalization amount(7) Method of offer or allotment(8) Method of contribution(9) Allottees, number thereof andnumber of shares to be allotted

October 28, 2021
11,746 shares of common stock of the Company¥3,595 per share¥42,226,870¥1,798 per share¥21,119,308
Allotment of specified restricted stocks
In-kind contribution of monetary compensation claims
11,746 shares to eight directors of the Company(excluding outside directors)(10) Transfer restriction period

October 28, 2021 to October 27, 2024

(11) Others

Issue of new shares to be allotted is conditioned on the
securities registration statement taking effect in accordancewith the Financial Instruments and Exchange Act.

15

3. Other Information(1) Status of Orders and Revenue
By period_

Revenue 2

Revenue 1

Orders received

Category/Segment

20,331

75.2

20,31880.3

97,76973.3

Urban & Spatial Development

2,910

10.7

2,868

11.3

21,457

16.1

Energy

3,804

14.0

2,133

8.4

13,991

10.5

Others

37

0.1

-

86

0.1

Total

27,083100.0

25,319100.0

133,304

100.0

Consulting

13,845

65.7

15,69365.5

85,236

72.3

Urban & Spatial Development

4,336

20.6

4,849

20.2

18,20915.5

Energy

2,691

12.8

3,235

13.5

13,548

11.5

Others

180

0.9

181

0.8

865

0.7

Total

21,053100.0

23,960100.0

117,859

100.0

Consulting

13,002

61.7

14,85061.9

80,09868.0

Urban & Spatial Development

4,489

21.3

5,002

20.9

20,274

17.2

Energy

3,381

16.1

3,925

16.4

16,621

14.1

Others

180

0.9

181

0.8

865

0.7

Total

21,053100.0

23,960100.0

117,859

100.0

Category/Segment
Foreign exchange andother adjustments

For the fiscal year ended
June 30, 2021
AmountComposition(M illions of yen)(%)

Consulting

By period_

Outstanding Orders

For the three months ended
For the three months ended
September 30, 2020
September 30, 2021
AmountComposition
AmountComposition(M illions of yen)(%)
(M illions of yen)(%)

For the three months ended
For the three months ended
September 30, 2020
September 30, 2021
AmountComposition
AmountComposition(M illions of yen)(%)
(M illions of yen)(%)

For the fiscal year ended
June 30, 2021
AmountComposition(M illions of yen)(%)

Consulting

(791)

884

931

Urban & Spatial Development

468

(339)

2,800

Energy

-

(1)

(0)

Others

-

-

-

Total

(322)

543

3,731

Consulting

130,357

76.8

143,69677.1

138,18675.0

Urban & Spatial Development

16,318

9.6

20,74711.1

23,068

12.5

Energy23,135

13.6

22,02511.8

22,994

12.5

Others

-

0

0.0

Total

169,811

184,250

100.0

100.0

186,469

100.0

Notes: 1. The above amounts are exclusive of consumption tax and other taxes.
2. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
3. Revenue 1 is by segment which received orders. Revenue 2 is by segment which provided services.
4. As disclosed in "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (5) Primary Notes toCondensed Quarterly Consolidated Financial Statements (Segment information, etc.)," the Group has changed its reportablesegments since the three months ended September 30, 2021. The figures for the three months ended September 30, 2020 andfor the fiscal year ended June 30, 2021 have been provided based on the new reporting segments.

16