Consolidated Financial Results
for the Fiscal Year Ended June 30, 2017
[Japanese GAAP]
August 14, 2017
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 holding general shareholder’s meeting: September 28, 2017
Scheduled date of commencing dividend payments: September 8, 2017
Scheduled date of filing securities report: September 29, 2017
Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for institutional investors and securities analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2017 (July 1, 2016 to June 30, 2017)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Fiscal year ended
Million yen% Million yen% Million yen% Million yen%
June 30, 2017

101,338

23.8

36.5

3,288

80.3

June 30, 2016
81,865
0.0
4,723
4.9
4,365 (20.3)(Note) Comprehensive income: Fiscal year ended June 30, 2017: ¥3,639 million [ - %]Fiscal year ended June 30, 2016: ¥(924) million [ - %]1,823

(57.2)Net income
per share

Fiscal year ended
June 30, 2017

5,464

15.7

5,958

Diluted net income
Return on equity
per share

Return on assets

Operating income
on Net sales

Yen

Yen

%

%

%

213.39

-

6.2

5.5

5.4

June 30, 2016
119.12
3.5
4.7
5.8(Reference) Income from investment in affiliates (Equity method): Fiscal year ended June 30, 2017: Fiscal year ended June 30, 2016: (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 consolidation on the beginning of previous fiscal year.
(2) Consolidated Financial Position
Total assets
Fiscal year ended
June 30, 2017

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

113,865

54,87447.9

3,530.44

June 30, 2016
100,989
51,46050.6
3,326.56(Reference) Equity: Fiscal year ended June 30, 2017: ¥54,508 million
Fiscal year ended June 30, 2016: ¥51,122 million(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 assets per share” are amounts on the assumption that the Company conducts theshare consolidation on the beginning of previous fiscal year.

1(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

June 30, 2017

6,376

(4,172)

4,846

17,083June 30, 2016

379

(17,705)

15,199

9,400

Fiscal year ended

Cash and cash equivalents
at end of period

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

Year-end

Total

Total dividends
paid (annual)

Payout ratio(consolidated)

Dividend on
net assets ratio(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Fiscal year ended June 30, 2016

-

-

-

10.00

10.00

771

42.0

1.5

Fiscal year ended June 30, 2017

-

-

-

75.00

75.00

1,192

35.1

2.2

Fiscal year ending June 30, 2018
(Forecast)

-

-

-

75.00

75.00

23.6

(Notes)(1) “Total dividends paid (annual)” includes dividends on the Company’s shares held by the Employee ShareOwnership Plan (ESOP) trust.
(2) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017.
“Year-end Dividends per share” at the end of fiscal year ending June 30, 2016 is listed the actual amountwithout considering the effect of the share consolidation.
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 fiscal year.)Net sales

Full year

Operating income

Ordinary income

Profit attributable toowners of parent

Net income
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

114,000

12.5

7,700

40.9

7,800

30.9

4,900

49.0

317.37(Note) Effective from the Fiscal Year Ending June 30, 2018, the Group changes the primary method of revenue
recognition from completed-contract method to percentage of completion method. The figures for
Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2018 is calculated based on
the new method.
* Notes:(1) Changes in significant subsidiaries during the fiscal year ended June 30, 2017 (changes in specified
subsidiaries resulting in changes in scope of consolidation): None
(2) 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: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(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, 2017 : 17,331,302 sharesFiscal year ended June 30, 2016 : 17,331,302 shares2) Total number of treasury stock at the end of the period:
Fiscal year ended June 30, 2017 :
1,891,831 sharesFiscal year ended June 30, 2016 :1,963,228 shares
3) Average number of shares during the period:
Fiscal year ended June 30, 2017 : 15,410,873 sharesFiscal year ended June 30, 2016 : 15,308,881 shares

2

(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 the period” and “Average number of shares during the period” are amounts on theassumption that the Company conducts the share consolidation on the beginning of previous fiscal year.
(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2017 (July 1, 2016 to June 30, 2017)(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, 2017

61,734

2.3

2,991

(8.7)

3,820

7.7

2,302

37.2

June 30, 2016

60,327

(0.2)

3,275

2.7

3,548 (42.3)

1,678(70.6)Net income
per share

Fiscal year ended
June 30, 2017

Diluted net income
per share
Yen

Yen

149.38-June 30, 2016109.62(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 consolidation on the beginning of previous fiscal year.
(2) Nonconsolidated Financial Position
Total assets
Fiscal year ended

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

96,27550,79252.8

3,289.80

June 30, 2017

June 30, 2016
83,673
48,11257.5
3,130.70(Reference) Equity: Fiscal year ended June 30, 2017: ¥50,792 million
Fiscal year ended June 30, 2016: ¥48,112 million(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 assets per share” are amounts on the assumption that the Company conducts theshare consolidation on the beginning of previous fiscal year.
2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2018 (July 1, 2017 to June30, 2018)(% indicates changes from the previous fiscal year.)Net sales

Full year

Ordinary income

Net income
per share

Net income

Million yen%

Million yen%

Million yen%

Yen

74,400

20.5

5,300

38.7

3,500

52.0

226.69(Note) Effective from the Fiscal Year Ending June 30, 2018, the Company changes the primary method of revenue
recognition from completed-contract method to percentage of completion method. The figures for
Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2018 is calculated based on
the new method.
* These Consolidated Financial Results are not subject to audit procedures.
* Explanation of the proper use of financial results forecast and other notes
1. 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. With regard to theassumptions and other related matters concerning forecasts for the fiscal year ending June 30, 2018, refer to“Outlook for the Next Fiscal Year” on page 5, contained in the attached documents.
2. The Company will hold a financial results briefing session for institutional investors and securities analysts
on August 23, 2017. After the session, supplementary briefing material on financial results will be publishedon the Company’s website.
3

Table of Contents of Attached Documents
1. Overview of Consolidated Operating Results and Financial Position.................................................................... 2(1) Overview of Consolidated Operating Results for the Current Period .............................................................. 2(2) Overview of Consolidated Financial Position for the Current Fiscal Year.................................................. 3(3) Overview of Cash Flows Position for the Current Fiscal Year..................................................................... 4(4) Outlook for the Next Fiscal Year .................................................................................................................... 5
2. Basic Policy Concerning Choice of Accounting Standards .................................................................................... 6
3. Consolidated Financial Statements......................................................................................................................... 7(1) Consolidated Balance Sheets ........................................................................................................................... 7(2) Consolidated Statements of Operating 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(Addition of Information) ............................................................................................................................... 14(Segment Information,etc).............................................................................................................................. 14(Per Share Information) .................................................................................................................................. 20(Significant Subsequent Events)..................................................................................................................... 20
4. Other ..................................................................................................................................................................... 21(1) Status of Production, Orders and Sales.......................................................................................................... 21(2) Changes in Corporate Officers ...................................................................................................................... 23

1

1. Overview of Consolidated Operating Results and Financial Position(1) Overview of Consolidated Operating Results for the Current Period
During the fiscal year under review (from July 1, 2016 to June 30, 2017), Japan’s economy continued on a moderate
recovery path with signs of private consumption picking up against the background of steady improvements in
employment and income. On the other hand, while recovering, the outlook for overseas economies continued to

be uncertain, with a growing sense of the risk of economic downturns in the emerging markets of China andother Asian countries, as well as uncertainty about the economic policies of the United States and Europe.
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 disasterprevention and mitigation, and measures to prevent deterioration of infrastructure for public works projects in theDomestic Consulting Operations, promoted strategic exporting of infrastructure systems in the International
Consulting Operations, and renewed power distribution equipment in the Power Engineering Operations. On theother hand, demand for architectural designs in the UK stalled in the Urban & Spatial Development Operations, being
affected by the Brexit.
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 and expansionof new businesses,” and “Autonomy and collaboration,” the Group tackled the three focus themes of “Further advanceof global expansion,” “Further expansion of business fields and improvement of profitability by intensifying existingcore businesses,” and “Demonstrating the true merits of aggregated technologies for establishment of new businessdomains.” Moreover, as companywide measures to achieve these goals, the Group actively advanced “Developmentof next-generation core technologies and further improvement of technical strengths and productivity,”“Strengthening of human resource recruitment and training,” and “Promotion of collaboration and enhancement ofcorporate governance.”
As a result of the above, Group performance was favorable during the fiscal year ended June 30, 2017. This wasdue mainly to the acceptance of more than one order for large-scale projects in the field of transportation, andconsolidation of the balance sheet of BDP HOLDINGS LIMITED, as well as its subsidiaries (together, “BDP”) fromthe end of the previous fiscal year, and orders received increased 33.8% year on year to ¥117,442 million (¥87,768
million excluding the impact of foreign exchange fluctuations and outstanding orders of BDP in the previous fiscal
year). Net sales were up 23.8% year on year to ¥101,338 million, operating income increased 15.7% year on year to¥5,464 million, ordinary income grew 36.5% year on year to ¥5,958 million, and profit attributable to owners ofparent increased 80.3% to ¥3,288 million.

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 increased 9.4% year on year to ¥48,265 million. Net sales increased 6.7% year on yearto ¥43,516 million, operating income was up 11.6% year on year to ¥3,298 million and ordinary income increased
11.3% year on year to ¥3,299 million.
2

[International Consulting Operations]With the strength of our region-based operating systems, the International Consulting Operations secured a stablebusiness foundation through the expansion of the share of Official Development Assistance (ODA) projects, andexpanding business scale by urban development and Public-Private Partnership (PPP) businesses.
As a result, orders received increased 44.0% year on year to ¥41,573 million. Net sales increased 11.0% year on
year to ¥24,491 million, operating income increased 63.2% year on year to ¥1,887 million and ordinary income
increased 363.5% year on year to ¥1,772 million.

[Power Engineering Operations]
In the Power Engineering Operations, we worked to increase cost competitiveness through strict cost reductions,strengthening sales and marketing capabilities through proposing cost reduction plans, enhancing fusion andcooperation among the business areas of consulting, products, and construction, promoting the development of
products and technology, and reinforcing and expanding the mechanical and electromechanical consulting division.
Nonetheless, orders received were less than those in the previous fiscal year due to delays in concluding large-scale
projects. On the other hand, selling, general and administrative expenses increased as a result of reinforcing staff todeal with the expanding water power generation market.
As a result, orders received decreased 4.3% year on year to ¥14,087 million. Net sales increased 0.3% year on yearto ¥17,577 million, operating income decreased 12.0% year on year to ¥2,683 million and ordinary income decreased
12.4% year on year to ¥2,649 million.

[Urban & Spatial Development Operations]
The Urban & Spatial Development Operations strove to expand the scope of business in the urban development andarchitectural design area by growing businesses within the UK through BDP and collaborating as a group in the Asian
region.
As a result, the Group achieved orders received of ¥13,460 million, net sales of ¥14,347 million, operating incomeof ¥81 million, and ordinary income of ¥57 million.
BDP became a consolidated subsidiary of the Company in the previous fiscal year, consolidating only the balance
sheets in the Urban & Spatial Development Operations. Subsequently, BDP’s statement of income started to beconsolidated from this fiscal year.

[Real Estate Leasing Operations]
The Real Estate Leasing Operations saw a decline in rental revenue from the headquarters building caused by its
reconstruction.
As a result, net sales decreased 7.9% year on year to ¥473 million, operating income increased 3.9% year on yearto ¥401 million and ordinary income increased 4.3% year on year to ¥401 million.

(2) Overview of Consolidated Financial Position for the Current Fiscal Year
Total assets at the end of the fiscal year under review amounted to ¥113,865 million, up ¥12,875 million from theend of the previous fiscal year.
In the Assets section, current assets were ¥54,798 million, an increase of ¥8,645 million from the end of the previous
fiscal year. This was due primarily to an ¥8,419 million increase in cash and deposits.
3

Non-current assets were ¥59,067 million, up ¥4,230 million from the end of the previous fiscal year. This was due
primarily to an increase in investment securities.
In the Liabilities section, current liabilities were ¥30,341 million, a decrease of ¥12,766 million from the end of theprevious fiscal year. This decrease was mainly attributable to a ¥16,000 million decrease in short-term loans payable.
Non-current liabilities were ¥28,650 million, an increase of ¥22,228 million from the end of the previous fiscal
year. This increase was mainly attributable to a ¥20,153 million increase in long-term loans payable.
Net assets amounted to ¥54,874 million, an increase of ¥3,413 million from the end of the previous fiscal year. The
primary factors behind this increase were a profit of ¥3,288 million attributable to owners of parent, ¥771 million in
cash dividends paid, an increase of ¥1,024 million of valuation difference on available-for-sale securities, and a¥1,512 million decrease in foreign currency translation adjustment.
As a result, the shareholders’ equity ratio decreased 2.8 percentage points from the end of the previous fiscal year
to 47.9%.

(3) Overview of Cash Flows for the Current Period
Cash and cash equivalents at the end of the fiscal year under review was ¥17,083 million, an increase of ¥7,682
million from the end of the previous fiscal year. The primary factors were as follows.
Net cash provided by operating activities was ¥6,376 million (a net inflow of ¥379 million during the previous fiscal
year). This cash inflow was primarily due to profit before income taxes of ¥5,194 million, and an increase in advances
received.
Net cash used in investing activities was ¥4,172 million (a net outflow of ¥17,705 million during the previous fiscal
year). This cash outflow was primarily due to the acquisition of investment securities.
Net cash provided by financing activities was ¥4,846 million (a net inflow of ¥15,199 million during the previous
fiscal year). This cash inflow was primarily due to an inflow from long-term loans payable.
Trends of the Company’s cash flow indicators 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
June 2013
June 2014
June 2015
June 2016
June 2017
Equity ratio (%)
Equity ratio on market value
basis (%)
Interest-bearing debt-to-cash
flow ratio (years)
Interest coverage ratio (times)

60.8

62.4

62.6

50.6

47.9

39.2

50.0

43.7

23.6

43.3

0.2

1.8

1.9

46.1

3.6

1,519.0

29.3

18.0

7.1

31.7

Equity ratio: Equity capital/Total assets
Equity ratio on market value basis: Market capitalization/Total assets
Interest-bearing debt-to-cash flow ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest payment(Note 1) All are calculated by financial figures on a consolidated basis.
(Note 2) Market capitalization is calculated based on the number of issued shares excluding treasury shares.
(Note 3) Operating cash flow is used as the cash flow.
(Note 4) Interest-bearing debt covers all debts, for which interest is paid, among liabilities recorded in the
consolidated balance sheets.
(Note 5) Fiscal Year ended June 2013 is settled for three months due to the change in the settlement period. As aresult, for the interest-bearing debt-to-cash flow ratio and the interest coverage ratio, for cash flow andinterest payment for three months are used.

4(4) Outlook for the Next Fiscal Year
With regard to the business environment of the Group going forward, in the Domestic Consulting Operations, thepublic works budget is expected to remain unchanged from the initial budget. In the International Consulting
Operations, an increase in demand is expected as the Japanese government promotes a strategy to export
infrastructure systems. In the Power Engineering Operations, demand for repairs accompanying the degradation ofexisting power facilities, and renewal and new demand for hydroelectric power generation facilities taking advantageof the Feed in Tariff (FIT) Scheme are expected. In the Urban & Spatial Development Operations, while the impactof Brexit on demand for architectural design in the UK is a concern, infrastructure demand centered on Asia is
expected to continue, and development demand is expected for the development of areas near urban railway stations
and lines, airport terminals accompanying increased airline demand, and facilities such as houses, hotels, andcommercial facilities funded by private-sector funds.
Under such circumstances, the Group will engage in the key challenges and companywide measures for each businessstrategy in the Medium-Term Management Plan NK-AIM.
The forecasts for consolidated business results for the fiscal year ending June 30, 2018 are net sales of ¥114.0 billion,
operating income of ¥7.7 billion, ordinary income of ¥7.8 billion, and profit attributable to owners of parent of ¥4.9
billion.
Effective from the fiscal year ending June 30, 2018, the Group changes the primary method of revenue recognition
from completed-contract method to percentage of completion method. The figures for consolidated financial results
forecast for the fiscal year ending June 30, 2018 is calculated based on the new method.

5

2. Basic Policy Concerning Choice of Accounting Standard
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.

6

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)
As of June 30,2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Diferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
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
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Asset for retirement benefits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of June 30,2017

11,174
17,715
12,253
995
4,022
(8)
46,153

19,59318,09011,727
1,234
4,158
(6)
54,79818,685(12,605)
6,079
2,622
(2,217)444
5,298(4,757)
540
17,332
169
(87)
81
81
24,561

16,150(10,559)
5,591
2,613
(2,212)
401
4,988(4,414)574
17,648
176
(109)
67
252
24,535

10,312
6,308
16,6208,685
5,214
13,900

8,285
1,914
1,153
2,460
(160)
13,65454,836
100,989

10,491
2,344
1,149
3,392
3,422
(168)
20,63059,067
113,865

(Million yen)
As of June 30,2016
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
Deferred tax liabilities
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 shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of June 30,2017

5,105
16,000
266
808
8,181
983
82
59
11,62043,107

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

1,260
1,917
45
34
2,554
609
6,421
49,52921,413
2,859
45
34
3,963
333
28,65058,991

7,393
6,209
40,821(3,020)51,4037,393
7,240
43,450(3,607)54,477

(8)
(301)
28
(280)
337
51,460100,989

1,016(1,813)828
30
36554,874
113,865

(2) Consolidated Statements of Operating and Comprehensive Income

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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
State subsidies
Total extraordinary income
Extraordinary losses
Loss on impairment of long-lived assets
Loss on reduction of property, plant and equipment
Loss on valuation of shares of subsidiaries and associates
Loss on support to subsidiaries and associates
Head office transfer cost
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
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 non-controlling interests

9

For the fiscal year ended
June 30,2016(Million yen)
For the fiscal year ended
June 30,2017

81,86559,50522,35917,636
4,723

101,338
70,40030,93725,472
5,464

114
228
497
839

165
255
137
228
786

58
951
187
1,197
4,365

195
97
292
5,958

42
42

-

38
99
237
375
4,032
1,508
670
2,178
1,853

225
432
105
764
5,194
1,866
4
1,870
3,323

1,823
30

3,288
34

(1,666)(223)(888)(2,778)
(924)

1,025
(1,509)
799
316
3,639

(933)
8

3,600
39

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended June 30, 2016
(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period

7,393

Retainedearnings

6,209

Treasury shares

Total
shareholders’equity(3,205)50,167

39,770Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus

(772)

(772)

Profit attributable toowners of parent

1,823

1,823

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

(9)

(9)

193

193

－

－

1,051

184

1,236

7,393

6,209

40,821(3,020)51,403

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated othercomprehensive
incomeNoncontrollinginterests

1,659

(100)

917

2,476

337

Total net
assets52,981

Changes of items during
periodChange of scope of
consolidation－

Dividends of surplus(772)

Profit attributable toowners of parent

1,823

Purchase of treasury
shares(9)

Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period(1,667)

(201)

(888)

(2,757)(0)(2,757)(1,667)

(201)

(888)

(2,757)(0)(1,521)

Balance at end of current
period

(8)

(301)

28

(280)

337

51,460193

10For the fiscal year ended June 30, 2017
(Million yen)
Shareholders’ equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period

7,393

Retainedearnings

Treasury shares

Total
shareholders’equity(3,020)51,4036,209

40,821

311

112

423

Dividends of surplus

(771)

(771)

Profit attributable toowners of parent

3,288

3,288

Changes of items during
periodChange of scope of
consolidation

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other thanshareholders’equityTotal changes of items
during period
Balance at end of current
period720(1,456)(1,456)

869

1,589

－

1,031

2,628

(586)

3,073

7,393

7,240

43,450(3,607)54,477

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated othercomprehensive
incomeNoncontrollinginterests

(8)

(301)

28

(280)

337

Total net
assets51,460Changes of items during
periodChange of scope of
consolidation

423

Dividends of surplus(771)

Profit attributable toowners of parent

3,288

Purchase of treasury
shares(1,456)

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

1,024(1,512)

799

311

28

340

1,024

(1,512)

799

311

28

3,413

Balance at end of current
period1,016(1,813)

828

30

365

54,874

1,589

11

(4) Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on impairment of long-lived assets
Amortization of goodwill
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on support to subsidiaries and associates
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
Interest and dividend income
Loss (gain) on investment of derivatives
Decrease (increase) in notes andaccounts 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
Payments for head office transfer cost
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
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for investments in capital
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

12

For the fiscal year ended
June 30,2016(Million yen)
For the fiscal year ended
June 30,2017

4,032
1,268
(343)
(2)
237
(205)
(34)

5,194
1,720
225
623
(30)
(2)
432
105
6
374

(51)

(4)

(342)
-

(420)
(137)

1,797

(315)

(906)
311
24
(393)

867
(1,097)
(29)
1,914

(676)

658

(1,289)
3,426
353
(53)
(667)
(2,679)379(2,183)
7,902
396
(200)
(218)
(1,502)
6,376

68(1,198)(225)(2,181)891(1,411)
125(13,773)(17,705)(953)(1,085)(260)(1,518)
532
(450)
(880)
434
8
(4,172)

(Million yen)
For the fiscal year ended
June 30,2017

For the fiscal year
ended June 30,2016
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
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of period

13

16,000
(164)
193
(9)
(770)
(50)
15,199(146)(2,272)
11,673(16,000)
23,547(2,008)1,589(1,456)
(772)
(53)
4,846
(124)
6,925
9,400

-

756

9,400

17,083

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Additional Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
Effective from the fiscal year under review, the Company adopted the Implementation Guidance on
Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).
(Segment Information, etc)
【Segment Information】
1. Outline of reportable segments(1) Method of determination 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 type of products and services. Each business headquarters
formulates a comprehensive strategy based on the products and services and engages in conducting businessactivities.
In line with the above, the Company is composed of segments divided by products and services, with eachbusiness headquarters serving as the foundation, and the five reportable segments are “Domestic Consulting
Operations,” “International Consulting Operations,” “Power Engineering Operations,” “Urban & Spatial
Development Operations,” and “Real Estate Leasing Operations.”(2) Types of products and services by reportable segment“Domestic Consulting Operations” engages in businesses within Japan such as site surveying, planning,
evaluation/assessment, designing, construction management, operational advice in the fields of water resources
development, energy development, agricultural development, transportation, urban and regional development,
management of natural and social environment, etc.
“International Consulting Operations” engages in businesses outside of Japan such as technical studies,planning,
reviews, designing, construction supervision, operational advice in the fields of water resources development,
energy development, agricultural development, transportation, urban and regional development, social
development, management of natural and social environment, etc.
“Power Engineering Operations” engages in manufacturing and sale of control devices and systems for power
generating and transforming stations, water turbines, power generators, voltage converters, electric power related
equipment such as line taps for power transmission and distribution networks. It also engages in designing andimplementation of various construction works for electric power and general electric facilities, including
construction for power generation/transformation/transmission/distribution and civil engineering.
“Urban & Spatial Development Operations” engages in urban and spatial development business that includes
urban planning and architectural design.
“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 the third-party transaction prices.

143. Information about net sales, income or loss, assets, and other items by reportable segment
For the fiscal year ended June 30, 2016

(Million yen)
Reportable segment

International
Consulting
Operations

Power
Engineering
Operations

40,77822,07017,522408

13

Domestic
Consulting
Operations
Net sales
Net sales to externalcustomers
Inter-segment sales
or transfers

Urban &

Others(Note)

Real Estate
Leasing
Operations

Subtotal―

514

80,886979

81,865

247

―

124

793

2

795
82,661

SpatialDevelopment
Operations

Total

Total

41,18622,084

17,770―638

81,680981

Segment profit (loss)

2,965

382

3,024

―

384

6,757

(2,373)

4,383

Segment assets

18,893

19,102

8,989

23,886

4,192

75,06349,032

124,096

162

72

252

―

57

545

723

1,268

―

―

―

―

―

―

―

―

21
44

24
136

4
57

―
―

0
―

50
237

330
87

380
325

82

64

312

―

2

461

749

1,211

Other items
Depreciation
Amortization of
goodwillInterest income
Interest expenses
Increase in property,
plant andequipment andintangible assets(Note) 1. “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.
2. Increase in property, plant and equipment and intangible assets does not include an increase due to the new consolidation.

For the fiscal year ended June 30, 2017

(Million yen)
Reportable segment

International
Consulting
Operations

Power
Engineering
Operations

43,51624,491

17,577461

18

Domestic
Consulting
Operations
Net sales
Net sales to externalcustomers
Inter-segment sales
or transfers

Urban &

Others(Note)

Real Estate
Leasing
Operations

Subtotal

14,347473

100,406

931

101,338

236

40

150

907

2

909
102,247

SpatialDevelopment
Operations

Total

Total

43,977

24,51017,813

14,387624

101,313933

Segment profit (loss)

3,299

1,772

2,649

57

401

8,181

(2,213)

5,968

Segment assets

19,30722,394

7,868

22,396

5,776

77,74244,451

122,194

157

72

242

760

39

1,272

447

1,720

―

―

―

623

―

623

―

623

21
51

38
137

4
52

46
154

0
―

112
397

315
60

428
458

237

113

217

150

0

720

681

1,401

Other items
Depreciation
Amortization of
goodwillInterest income
Interest expenses
Increase in property,
plant andequipment andintangible assets(Note) 1. “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.
2. Increase in property, plant and equipment and intangible assets does not include an increase due to the new consolidation.

15

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)(Million yen)
Net sales
Reportable segment total
Net sales of “Others” category
Elimination of inter-segment transactions
Net sales on consolidated financial statements

Previous fiscal year

Current fiscal year

81,680981(795)

101,313933(909)

81,865

101,338(Million yen)
IncomePrevious fiscal year
Current fiscal year
6,757
8,181
Reportable segment total(2,373)(2,213)
Loss of “Others” category (Note)(18)(9)
Elimination of inter-segment transactions
4,365
5,958
Ordinary income on consolidated financial statements
Note: Loss of “Others” category includes companywide expenses such as general and administrative expenses thatare not attributable to any reportable segment.
(Million yen)
AssetsPrevious fiscal year
Current fiscal year
75,06377,742
Reportable segment total
49,03244,451
Assets of “Others” category (Note)(23,106)(8,328)Elimination of inter-segment transactions
100,989
113,865
Total assets on consolidated financial statements
Note: Assets of “Others” category includes companywide assets such as land, buildings, and investment securities
that are not attributable to any reportable segment.
(Million yen)
Reportable segment total

OthersAdjustment 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

545

1,272

723

447

―

―

1,268

1,720

Amortization of
goodwill

―

623

―

―

―

―

―

623

Interest income (Note)

50

112

330

315

(266)

(262)

114

165

237

397

87

60

(266)

(262)

58

195

461

720

749

681

―

―

1,211

1,401

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 of internalinterest used for the purposes of managerial accounting.

16

[Related Information]
For the fiscal year ended June 30, 2016
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
58,414

Asia
13,880

Middle East
2,159

Africa3,584

Latin America
3,646

Other
179

(Million yen)Total
81,865

Notes: 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, Cabo Verde, Morocco
Latin America: Peru, Paraguay, Panama
Other: Papua New Guinea, Tuvalu(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

13,604

Domestic Consulting Operations

TEPCO Power Grid, Incorporated

8,147

Power Engineering Operations

Japan International Cooperation Agency

7,643International Consulting Operations

Note: Tokyo Electric Power Company, Incorporated was split on April 1, 2016, with the general
powertransmission and distribution business succeeded by TEPCO Power Grid, Inc.
The actual sale for the business from July 1, 2015 to March 31, 2016 (6,569 million yen) was reclassified
as the actual sale to TEPCO Power Grid, Inc.

17

For the fiscal year ended June 30, 2017
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
60,582

Asia
15,659Middle East

2,168

Africa3,943

Latin America

5,291Europe13,340

Other
352(Million yen)Total
101,338

Notes: 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, India, Myanmar
Middle East: Iraq, UAE, Iran
Africa: Kenya, Sudan, Mozambique
Latin America: Peru, Panama, Colombia
Europe: United Kingdom, Ireland, Netherlands
Other: Ukraine, Canada, Serbia(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

14,671

Domestic Consulting Operations

Japan International Cooperation Agency

9,581International Consulting Operations

TEPCO Power Grid, Incorporated

9,148

Power Engineering Operations

18

[Information on Impairment Loss of Non-current Assets by Reportable Segment]
For the fiscal year ended June 30, 2016
There is no relevant information.

For the fiscal year ended June 30, 2017
(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations
Impairment Loss

―

―

―

―

48

OthersSubtotal

48

177

Corporateandeliminations

―

Total

225

[Information on Amortization of Goodwill and Unamortized Balances by Reportable Segment]
For the fiscal year ended June 30, 2016
(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations
Balance of
goodwill at
end of period

―

―

―

10,312―OthersSubtotal

10,312―

Corporateandeliminations

―

Total

10,312

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

For the fiscal year ended June 30, 2017
(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations
Balance of
goodwill at
end of period

Note:

―

―

―

8,685

―

OthersSubtotal

8,685―

Corporateandeliminations

―

Total

8,685

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

[Information on Gain on Bargain Purchase by Reportable Segment]
For the fiscal year ended June 30, 2016
There is no relevant information.

For the fiscal year ended June 30, 2017
There is no relevant information.

19

(Per Share Information)
For the fiscal year ended
June 30, 2016

For the fiscal year ended
June 30, 2017

Net assets per share¥3,326.56¥3,530.44

Net income per share¥119.12¥213.39

Notes:

1. Diluted net income per share is not stated as there are no dilutive shares.
2. 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, 2016

Profit attributable to owners of parent (Million yen)

For the fiscal year ended
June 30, 2017

1,823

3,288

Amount not attributable to common shareholders――(Million yen)
Profit attributable to owners of parent relating to
1,823
3,288
common stock (Million yen)
Average number of shares of common stock during the
15,308,881
15,410,873
period (Shares)
3. Regarding the Company’s stock held in trust as treasury shares in shareholders’ equity, for the purposes ofcalculating 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 of calculating the amountsof net assets per share, these are included in the number of treasury shares eliminated from the total number
of issued shares at the end of the period.
For the purposes of calculating the amounts of net income per share, the average number of shares of these
eliminated shares of treasury shares was 131,757 shares for the fiscal year ended June 30, 2016, and 96,714
shares for the fiscal year ended June 30, 2017, and for the purposes of calculating the amounts of net assets
per share, the number of shares at the end of each fiscal year of these eliminated shares of treasury shares was
71,000 shares for the fiscal year ended June 30, 2016, and 455,100 shares for the fiscal year ended June 30,
2017.
4. The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017.
The figures for “Net assets per share” and “Net income per share” are amounts on the assumption that theCompany conducts the share consolidation on the beginning of previous fiscal year.

(Significant Subsequent Events)
Cancellation of treasury shares
At the meeting of the Board of Directors held on August 14, 2017, the Company resolved to cancel treasury sharesin accordance to the provisions of Article 178 of the Companies Act.
(1) Contents of the Resolution by the Board of Directors for the Cancellation of Treasury Shares
1) Type of shares to be cancelled
Common stock of the Company
2) Total number of shares to be cancelled
1,436,731 shares
3) Scheduled date for cancellation
August 31, 2017
(2) The total number of issued shares after the above cancellation will be 15,894,571 shares.

20

4. Other(1) Status of Production, Orders and Sales
By period
Category / Operation

Net sales 2

Net sales 1

Orders received

Domestic Consulting

28,87627.8(Note 2) 41,573

35.4

Power Engineering

14,71614.1

14,08712.0(Note 1) 16,251

15.6

13,46011.5

Urban & Spatial Development
Real Estate Leasing－

Others

64

0.1

55

0.0

Total

104,019100.0

117,442

100.0

Domestic Consulting

43,54553.2

45,47044.9International Consulting

23,362

28.6

26,38426.0

Power Engineering

14,421

17.6

14,583

14.4－

14,344

14.1

Urban & Spatial Development－

Real Estate Leasing

514

0.6

473

0.5

Others

21

0.0

81

0.1

Total

81,865100.0

101,338

100.0

Domestic Consulting

40,77849.8

43,516

42.9

International Consulting

22,07027.0

24,491

24.2

Power Engineering

17,522

21.4

17,57717.3

14,347

14.2

Urban & Spatial Development－

Real Estate Leasing

514

0.6

473

0.5

Others

979

1.2

931

0.9

Total

81,865100.0

101,338

100.0

Category / Operation
impact of foreign exchange
fluctuations

For the fiscal year ended
June 30, 2017
AmountComposition(Million yen)(%)
48,265
41.1

International Consulting

By period

Outstanding orders

For the fiscal year ended
June 30, 2016
AmountComposition(Million yen)(%)
44,10942.4

Domestic Consulting
International Consulting

For the fiscal year ended
June 30, 2016
AmountAmount(Million yen)
(Million yen)－

For the fiscal year ended
June 30, 2017
Composition
Composition
(%)
(%)
－

(2,940)－2,177

Urban & Spatial Development－

Real Estate Leasing－(1,678)－Others

－

－

Total

(2,940)498

Domestic Consulting

28,53826.2

31,33324.8

International Consulting

54,001

49.5

71,368

56.6

Power Engineering

10,203

9.4

9,707

7.7

Urban & Spatial Development

16,251

14.9

13,688

10.9

Power Engineering－

Real Estate Leasing－－

Others

49

0.0

24

0.0

Total

109,044100.0

126,122100.0

21Notes: 1. This refers to the outstanding orders as of April 1, 2016 of BDP HOLDINGS LIMITED and its subsidiaries
that became consolidated subsidiaries from the previous consolidated fiscal year.
2. This includes the outstanding orders at the beginning of consolidation for System Science Consultants Inc.,
which was consolidated from the fiscal year under review.
3. The above amounts are exclusive of consumption taxes.
4. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
5. Net sales 1 is by segment which received orders. Net sales 2 is by segment which provided services.
6. From the fiscal year under review, the impact of foreign exchange fluctuations is listed separately fromorders received, and the year for comparison is also reclassified.

22

(2) Changes in Corporate Officers
1. Change of Representative Director
As stated in “Notice Regarding Changes in Corporate Officers” announced on June 12, 2017.
2. Changes of other corporate officers
The proposal for the selection of an Audit & Supervisory Board Member was approved by the meeting of the Boardof Directors held today.
It will be implemented on September 28, 2017, after the necessary procedures (a resolution of the generalshareholder’s meeting, etc.).
Other corporate officer changes are as stated in “Notice Regarding Changes in Corporate Officers” announced onJune 12, 2017.
1) Candidate for a new Audit & Supervisory Board Member(scheduled to take office on September 28, 2017)
Outside Audit & Supervisory Board Member Yoshiko Koizumi
Short biography of the candidate
April 1972
April 1972
January 1980
May 2000
August 2003
March 2007
January 2008
May 2008
April 2009
October 2012
April 2013
June 2015
June 2015
June 2016

Registered in bar association (The Daini Tokyo Bar Association)
Joined Kikuchi Law and Patent OfficePartner at Masuda & Ejiri Law Office (current Nishimura & Asahi)
Chair of Women Business Lawyers Committee, Inter-Pacific Bar
Association (IPBA)
Expert Member of Food Safety Commission of Japan
Auditor at Bosch CorporationCounsel at Nishimura & Asahi
Councilor of the International Civil and Commercial Law Centre
Foundation
Partner at City-Yuwa Partners (current position)
Deputy Chair of the Government Procurement Review Board
Director of the Japan Bar Association (current position)
Outside Director of Taiheiyo Cement Corporation (current position)
Outside Director of Dowa Holdings Co., Ltd. (current position)
Outside Auditor of Sumitomo Bakelite Co., Ltd. (current position)2) Resigning Audit & Supervisory Board Member (scheduled to resign on September 28, 2017)
Outside Audit & Supervisory Board Member Mineo Enomoto

23