Consolidated Financial Results
for the Fiscal Year Ended June 30, 2022
[IFRS]
August 12, 2022
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 holding general shareholders’ meeting: September 29, 2022
Scheduled date of commencing dividend payments: September 12, 2022
Scheduled date of filing annual securities report: September 28, 2022
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, 2022 (from July 1, 2021 to June 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous fiscal year.)
ProfitRevenue
Operating profit Profit before tax
Profitattributable toowners of parent
Fiscal year ended
Million yen% Million yen% Million yen% Million yen% Million yen%
June 30, 2022
130,674 10.9
9,065 27.2
10,800 50.5
6,704 48.4
6,579 45.2
June 30, 2021
117,859
8.7
7,128 35.9
7,176 42.7
4,518 39.2
4,531 46.2
Basic earnings
per share

Diluted earnings
per share

Return on equity
attributable toowners of parent

Ratio of profit
before tax to total
assetsRatio of operating
profit to revenue

Fiscal year ended
Yen
Yen
%
%
%
June 30, 2022
436.98436.988.8
6.5
6.9
June 30, 2021
300.00300.00
6.7
4.7
6.0(Reference) Share of profit of investments accounted (Equity method):Fiscal year ended June 30, 2022 : ¥230 million
Fiscal year ended June 30, 2021 : ¥35 million(2) Consolidated Financial Position
Total assets
As ofJune 30, 2022
June 30, 2021

Total equity

Million yen
173,926
156,137

Million yen
81,96972,294Equityattributable toowners of parent
Million yen
78,08870,725

Ratio of equity
attributable toowners of parent tototal assets

Equity attributable toowners of parent per
share

%
44.9
45.3

Yen
5,185.66
4,699.82(3) Consolidated Cash Flows
Fiscal year ended
June 30, 2022
June 30, 2021

Cash flows fromoperating activities
Million yen
4,820
12,073

Cash flows frominvesting activities
Million yen(6,949)(2,750)Cash flows fromfinancing activities
Million yen
1,892(7,928)Cash and cash equivalents
at the end of period

Million yen
17,971
17,838

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

Year-end

Total

Ratio of dividends to
Total
Payout ratio equity attributable todividends paid (consolidated)owners of parent(annual)(consolidated)

Fiscal year ended June 30, 2022

Yen
-

Yen
0.00
0.00

Yen
-

Yen
75.00
125.00

Yen Million yen
75.00
1,128
125.00
1,882

%
25.0
28.6

Fiscal year ending June 30, 2023
(Forecast)

-

0.0

-

125.00125.00

28.1

Fiscal year ended June 30, 2021

1

%
1.7
2.5

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 to June 30, 2023)(% indicates changes from the previous fiscal year.)
Profit attributable to owners of
Basic earnings
Revenue
Operating profit
parentper share
Million yen%
Million yen%
Million yen%
Yen
Full year
145,000
11.0
11,300
24.6
6,700
1.8
444.93* 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 June 30, 2022:
15,060,314 shares
As of June 30, 2021:
15,048,568 shares2) Total number of treasury shares at the end of the period
As of June 30, 2022:
1,811 shares
As of June 30, 2021:
60 shares
3) Average number of shares during the period
Fiscal year ended June 30, 2022:
15,056,069 sharesFiscal year ended June 30, 2021:
15,106,105 shares(Reference) Nonconsolidated Financial Results
1. Nonconsolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021 to June 30, 2022)(1) Nonconsolidated Operating Results(% indicates changes from the previous fiscal year.)Net sales
Operating profit
Ordinary profit
Net profit
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
June 30, 2022
80,796
9.2
4,287
2.4
7,100
23.5
5,236 111.1
June 30, 2021
73,9706.5
4,185 159.5
5,750
83.3
2,480
(1.8)

Fiscal year ended
June 30, 2022
June 30, 2021

Basic earnings
per share
Yen
347.81
164.23

Diluted earnings
per shareYen-(2) Nonconsolidated Financial Position
Total assets
Net assets
As ofMillion yen
Million yen
June 30, 2022
120,878
59,280June 30, 2021
110,295
55,043(Reference) Equity: As of June 30, 2022: ¥59,280 million
As of June 30, 2021: ¥55,043 million

Equity ratio
%
49.0
49.9

Net assets per share
Yen
3,936.66
3,657.72

2. Nonconsolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 to June 30, 2023)(% indicates changes from the previous fiscal year.)
Basic earnings
Net sales
Ordinary profit
Net profit
per share
Million yen%
Million yen%
Million yen%
Yen
Full year
86,000
6.4
7,500
5.6
5,500
5.0
365.24* These consolidated financial results are not subject to audit procedures by certified public accountants or the audit firm.
* Explanation of the proper use of financial results forecast and other notes:

21. The earnings forecasts and other forward-looking statements disclosed herein are based on information available
to the Company as of publication date of this document and certain assumptions deemed reasonable. Actual results,
etc. may differ significantly due to a wide range of factors.
2. The Company is scheduled to hold a financial results briefing session for investors and analysts on September 2, 2022.
The financial briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s
websit3

Table of Contents of Attachment
1. Overview of Operating Results, etc........................................................................................................................ 2(1) Overview of Operating Results for the Current Fiscal Year ........................................................................... 2(2) Overview of Financial Position for the Current Fiscal Year ............................................................................. 3(3) Overview of Cash Flows for the Current Fiscal Year ....................................................................................... 3(4) Future Outlook.................................................................................................................................................. 4
2. Basic Policy Regarding Selection of Accounting Standard.................................................................................... 6
3. Consolidated Financial Statement and Primary Notes ........................................................................................... 7(1) Consolidated Statement of Financial Position .................................................................................................. 7(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income ................ 9(3) Consolidated Statement of Changes in Equity ............................................................................................... 11(4) Consolidated Statement of Cash Flows .......................................................................................................... 12(5) Notes to Consolidated Financial Statements .................................................................................................. 13(Notes on Going Concern Assumption) ............................................................................................................... 13(Segment Information) ......................................................................................................................................... 13(Per Share Information)........................................................................................................................................ 17(Significant Subsequent Events) .......................................................................................................................... 17
4. Other..................................................................................................................................................................... 18(1) Status of Orders and Sales .............................................................................................................................. 18(2) Changes in Directors ...................................................................................................................................... 19

1

1.

Overview of Operating Results, etc.

(1) Overview of Operating Results for the Current Fiscal Year
During the current fiscal year (July 1, 2021 to June 30, 2022), Japan's economy showed signs of recovery amid thenormalization of economic and social activities along with all possible infection control measures, and resulting fromthe effects of various policies. However, amid concerns about the protracted situation in Ukraine and the impact of
the restraint of economic activities in China, we still need to pay close attention to downside risks due to fluctuations
in financial and capital markets and the impact of infectious diseases, in addition to rising raw material prices andsupply restrictions.
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 level ofbudget mainly for national resilience and needs for accelerated digital reform and management business increased.
In international markets, there have been risks related to impact on the progress of the business as well as travel
restrictions due to the spread of COVID-19. However, demand remained strong, 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 theurban 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 for renewable energy development and better efficiency ofenergy use worldwide.
The Group has been taking steps to prevent COVID-19 with an active defense system to protect the lives and healthof employees and their families and to minimize the impact on customers. In addition, to achieve work-life balance
and improve productivity, we are promoting telework and other work style reforms.
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 “NKG (Nippon Koei Group) Global Strategy 2030,” as a transformation period to make the Group resilient.
Please refer to "(4) Future Outlook" for details.
As a result, the Group’s consolidated results for the current fiscal year were as follows: Although orders received
decreased 1.6% year on year to ¥131,166 million, revenue increased 10.9% year on year to ¥130,674 million,
operating profit increased 27.2% year on year to ¥9,065 million, and profit attributable to owners of parent increased
45.2% year on year to ¥6,579 million. This was because projects including those of the International Consulting
Business progressed well and costs such as travel expenses continued declining and improvement of the profit
structure progressed steadily also in the major consolidated subsidiaries, and was also due to the impact of yen
depreciation.
Business results for each segment are as follows: Due to the changes made to the reporting segment classification
effective from the current fiscal year, comparisons with the previous fiscal year are based on the figures that havebeen reclassified into the new segments. For details of this change in reporting segments, please refer to "3.
Consolidated Financial Statement and Primary Notes (5) Notes to Consolidated Financial Statements (Segment
Information) 2. Changes in reportable segments".
[Consulting]In the Consulting Business, we improved the productivity through DX (digital transformation) promotion andthoroughly 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 continued to be as strong as those in the previous year and increased 0.7% year on yearto ¥98,491 million. Revenue increased 10.5% year on year to ¥88,510 million due to the start of large-scale projectsof the International Consulting Business and the steady progress of operations, etc. Operating profit increased 46.6%
year on year to ¥8,982 million due to the substantial reduction of selling, general and administrative expenses andindirect expenses.
2

[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 ourbusiness in the Asian market through Group-wide collaboration.
As a result, orders received decreased 15.1% to ¥18,207 million due to a review of some businesses in the UK anddecline in businesses due to public investment control. Revenue increased 11.4% to ¥22,580 million as orders
received in the previous fiscal year were strong and many projects were in operation and also due to the impact ofthe depreciation of the yen. Operating profit decreased 29.9% year on year to ¥1,588 million as the supervisory andsupport operations were transferred to the Consulting Business and an impairment loss on goodwill of BDP
HOLDINGS LIMITED and its subsidiaries was recorded.
[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 renewableenergy. We formulated infrastructures for the battery storage business mainly in Europe as well as the aggregation
business (Electricity sales through electricity market transactions by aggregation of distributed energy sources andpower system stabilization projects, etc.) in Japan in the energy management business.
As a result, orders received increased 2.5% year on year to ¥14,343 million as orders received for powertransformation-related construction, etc. were strong. Revenue increased 13.1% year on year to ¥18,799 million due
to the steady progress in operation of large-scale projects. Operating profit increased 58.5% to ¥1,290 million due toa reversal of the provision for loss on construction contracts and reduction of variable costs compared with theprevious fiscal year when the provision for loss on construction contracts was recorded.
(2) Overview of Financial Position for the Current Fiscal Year
Total assets as of the end of the current fiscal year amounted to ¥173,926 million, an increase of ¥17,788 million
from the end of the previous fiscal year. This was mainly due to a ¥5,852 million increase in trade and otherreceivables and a ¥4,390 million increase in other current assets resulting from an increase in advance payments to
suppliers and other items.
Total liabilities were ¥91,956 million, an increase of ¥8,113 million from the end of the previous fiscal year. Thiswas mainly due to a ¥5,404 million increase in borrowings.
Total equity was ¥81,969 million, an increase of ¥9,674 million from the end of the previous fiscal year. This was
mainly due to a ¥4,917 million increase in retained earnings.
As a result, ratio of equity attributable to owners of parent to total assets decreased 0.4 percentage points from theend of the previous fiscal year to 44.9%.

(3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents at the end of the current fiscal year was ¥17,971 million, an increase of ¥133 million
from the end of the previous fiscal year. The status of cash flows in the current fiscal year and changes in cash flows
from the previous fiscal year are as follows.
Net cash provided by operating activities was ¥4,820 million, a decrease of ¥7,252 million from the previous fiscal
year as a result of making adjustments of non-fund items such as depreciation cost as well as receivables and liabilities
related to business activities for profit before tax of ¥10,800 million. This was mainly due to factors such as anincrease in trade and other receivables and a decrease in consumption taxes payable, etc.
Net cash used in investment activities was ¥6,949 million, a decrease of ¥4,199 million from the previous fiscal
year as a result of purchase of property, plant and equipment and other financial assets. This was mainly due to anincrease in expenditure for the purchase of property, plant and equipment and investment property.
Net cash provided by financing activities was ¥1,892 million, an increase of ¥9,821 million from the previous fiscal
3

year as a result of borrowing and repaying short-term loans. This was mainly due to an increase in cash fromborrowings.
Trends of the Company’s cash flow indicators are as follows.
(Reference) Trends in Cash Flow Indicators
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended
June 2018
June 2019
June 2020
June 2021
June 2022
Ratio of equity attributable toowners of parent to total assets(%)
Ratio of equity attributable toowners of parent to total assets
on market value basis (%)

51.2

52.2

43.6

45.3

44.9

37.5

32.4

29.0

29.7

28.2

Interest-bearing debt to cash
flow ratio (years)

-

6.3

7.0

2.2

6.7

Interest coverage ratio (times)

-

11.7

10.9

27.8

11.8

Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners of parent / Assets
Ratio of equity attributable to owners of parent to total assets on market value basis: Total market capitalization / Assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expenses
Notes: 1. All indicators are calculated using financial figures on a consolidated basis.
2. Total market capitalization is calculated based on the number of issued shares excluding treasury shares.
3. Cash flows from operating activities are used for the cash flows.
4. Interest-bearing debt covers all debt recorded in the consolidated statement of financial position for which interest is paid.
5. The interest-bearing debt to cash flow ratio and the interest coverage ratio for the fiscal year ended June 2018 are shown as“-“, as they were negative.
6. Of the above indicators, those from the fiscal year ended June 30, 2020 are based on the consolidated financial statements
created in accordance with the International Financial Reporting Standards (IFRS).

(4) Future Outlook
In June 2021, we announced the long-term management strategy "NKG Global Strategy 2030", under the conceptof “Working Together toward a Future Without Boundaries.” By working together with various internal andexternal partners, we will provide new values through intellectual exploration and technological innovation andintegration. We will aim to be a corporate group that helps to bring about a society where people can actually feelrichness. We set the numerical targets for the fiscal year ending June 2030 as revenue of ¥250 billion, operating profitof ¥25 billion, operating profit margin of 10% and ROE of 15%.
With regard to the business environment surrounding the Group, we recognize that the situation is unpredictable.
There is an increasing risk of uncertainty in the international situation such as global inflation and a weak yen
triggered by Russia’s invasion of Ukraine while we are facing global issues that require immediate action, such as
climate change and income disparities. In the Consulting Business, the domestic market is expected to continue tosecure public work budgets for national resilience and regional revitalization and the market is expected to expand
especially in the field of disaster prevention and mitigation. In the overseas market, the Japanese government isaiming to strengthen budgets with “Infrastructure System Overseas Promotion Strategy 2025” as an axis, but business
operations are expected to be difficult due to the delay in formation of some projects due to the impact of COVID19 and review of the business in association with inflation and yen depreciation. In the Urban & Spatial Development
Business, the need for sustainable urban restructuring, which attracts ESG investment, is increasing in Japan, Europe
and the United States. Also, the need for the urban development business including preparation and maintenance oftransportation-related facilities and peripheral infrastructures is strong in developing countries. In the Energy
Business, new opportunities are expected to be created leading to competition toward the target of carbon neutrality
in 2050 in addition to the demand for updating the aging existing equipment in Japan. However, it is necessary toagilely cope with policy change due to the rising global energy cost although the trend of shifting to renewable energy
remains unchanged.
4Under such a market environment, as mentioned above, we are implementing three resilience policies based on themedium-term management plan “Building Resilience 2024”(from July 2021 to June 2024).
As the first resilience policy, we will reorganize 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 (management in which each business mutually collaborates witheach other in each region) by shifting to a pure holding company structure and establishing a regional management
system. As the third resilience policy, we will strengthen technological development and human resource
development toward the establishment of "NKG brand" and "NKG quality." Also, we will promote “well-being
management” as a basis for that.
Each of the resilience policies, materialities, and the key priority issues for the fiscal year ending June 30, 2023 are
as follows.
Materiality

Key priority issues for the fiscal year ending June 30, 2023

（Priority issues ）･ Enhancement and formalization of technologies for heavy rain disaster countermeasuresiiiand seismic analysis･ Aggressive development of satellite information service business(1) Development ofiiiiiiinfrastructure to protect safeiiiiiiliving･ Advancement of AI flood forecasting and big data analysis technology･ Sophistication of infrastructure maintenance technology and Implementation of publiciiiiprivate partnership (PPP) projects
Business Strategies

Resilience Policy 1(2) Development ofiiiiiinfrastructure where alliiiiipeople can freely interact andiiiiiplay an active role(3) Creation of attractive citiesiiiiiwhere a diversity of peopleiiiiiand industries areiiiiiconcentrated

・ Establishment of a domestic aggregation business implementation system (complianceiiiiwith the iFeed-in-Premium (FIP) system for in-house hydroelectric power, start ofiiiisupplying 100% renewable electricity to the company's main facilities)･ Establishment of group management rules and structure after the establishment of a pureiiiholding company structure

Sales
Strategies･ Establishment of basic policy for regional management

Human Resources &Technology Strategies

Resilience Policy 3(7) Development of humaniiiiiresources and technology･ Development of energy management (EM) related businesses in Europe and Asia
Organizational
Strategies

Resilience Policy 2(6) A rewarding workiiiiienvironment where humaniiiiirights are respected･ Development of new business areas such as DX, micro-grids, and smart cities･ Realization of one-stop service in urban area (re)development projects in metropolitan andiiiregional areas(4) Conservation of the globaliiiiienvironment by achieving aiiiiidecarbonized society(5) Strengthening corporateiiiiigovernance･ Acquisition of technologies related to railroad O&M (operation and maintenance), andiiiexpansion of projects related to itransportation node improvement and peripheraliiidevelopment･ Establishment of basic policies for capital structure and shareholder returns under theiiiabove-mentioned structure･ Proactively utilize business incubation functions･ Promotion of telework and satellite office utilization･ Raising the percentage of female managers and promoting employment of people withiiidisabilities･ Promotion of wellbeing management through health management, work style reform, etc.
･ Establishment of NK Group Global Academy5

We have set the numerical targets for the fiscal year ending June 30, 2024, which is the final fiscal year of themedium-term management plan “Building Resilience 2024,” as revenue of ¥155 billion, operating profit of ¥11.5
billion, operating profit margin of 7% and ROE of 9%.
As for the fiscal year ending June 30, 2023, which is the second term (of the medium-term management plan), in
the Consulting Business, we will utilize new technologies such as AI and big data analysis, digital twin technology,
and satellite information services and will ensure quality and safety. In addition, we will propel co-creation projects
across fields such as river basin management, climate change, SDGs, renewable energy and multi-hazards. In the
Urban & Spatial Development Business, centering on Nippon Koei Urban Space Co., Ltd., which was established byintegrating the Urban & Spatial Development Business of the Company and our group company Tamano Consultants
Co., Ltd. (on July 1, 2022), we will aim to expand our entry into the urban infrastructure formation markets in Japanand overseas. We will also work to expand our business in the UK and North American markets and form a businessfoundation in the Asian market through intra-group collaboration. In the Energy Business, we will work to strengthen
the structure of the existing energy-related consulting and engineering business, build a foundation for the energy
management business such as storage batteries and aggregation, and stabilize the manufacturing business bystrengthening the core products and developing new products.
By promoting these initiatives, the consolidated financial results forecasts for the fiscal year ending June 30, 2023
are revenue of ¥145 billion (111.0% compared with the previous fiscal year), operating profit of ¥11.3 billion(124.6 % compared with the previous fiscal year) and profit attributable to owners of parent of ¥6.7billion (101.8%
compared with the previous fiscal year).

2. Basic Policy Regarding Selection of Accounting Standard
The Group has applied IFRS since the end of the consolidated fiscal year ended June 30, 2021 in order to improve
the international comparability of financial statements in capital markets and improve the quality of the groupmanagement by unifying accounting policies.

63. Consolidated Financial Statement and Primary Notes(1) Consolidated Statement of Financial Position(Millions of yen)
As of June 30, 2021

As of June 30, 2022

17,83821,18924,3271,315
3,900
68,57017,971
27,042
26,4503,779
8,290
83,53540,832
9,229
9,182
6,502
4,094
2,077
4,391
7,434
2,437
1,384
87,566
156,137

41,403
9,067
10,207
7,025
6,250
2,434
3,624
6,423
2,429
1,523
90,390173,926

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

7

(Millions of yen)
As of June 30, 2021

As of June 30, 2022

8,320
2,678
9,076
10,645
3,005
2,228
818
12,11548,88913,1482,729
10,400
8,837
4,561
2,551
653
12,95755,84018,712
6,699
648
3,861
375
4,533
122
34,953
83,843

19,288
6,556
665
3,896
674
4,683
351
36,116
91,956

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

7,501
6,454
(34)
5,252
58,91478,0883,881
81,969173,926

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 equity8(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income(Consolidated Statement of Profit or Loss)

For the fiscal year
ended June 30,2021
117,859(80,124)
37,735(29,173)(Millions of yen)
For the fiscal year
ended June 30,2022
130,674(89,975)
40,699(31,610)

35

230

1,207
(2,675)
7,128
519
(471)
7,176
(2,657)
4,518

1,090
(1,344)
9,065
2,218
(483)
10,800(4,095)
6,704

Profit attributable to
Owners of parent
Non-controlling interests
Profit

4,531
(13)
4,518

6,579
125
6,704

Earnings per share
Basic earnings per share
Diluted earnings per share

300.00300.00436.98436.98

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
Finance income
Finance costs
Profit before tax
Income tax expense
Profit9

(Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Equity financial assets measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit or loss
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
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

10

For the fiscal year
ended June 30,2021
4,518(Millions of yen)
For the fiscal year
ended June 30,2022
6,704

395

(196)

386

(547)

6

(1)

788

(745)

6
2,392

6
2,757

33

77

2,432
3,220
7,738

2,841
2,096
8,801

7,739
(0)
7,738

8,479
321
8,801

(3) Consolidated Statement of Changes in Equity(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
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2021
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2022

Capital surplus

7,458
21
21
7,480
21
21
7,501

6,498
21
(91)
(0)
(70)
6,428
21
5
26
6,454

Treasury shares

Exchangedifferences on
Cash flow hedges
translation offoreign operations(2,415)
(429)
382
2,462
2,415
(0)
(34)
(34)
(34)

(432)
2,415
2,415
(0)
(0)
1,982
2,638
2,638
(1)
(1)
4,620

Equity financial
assets measured
at fair value
through othercomprehensive
income

(36)
6
6
(30)
6
6
(24)

471
395
395
1
1
867
(195)
(195)
(15)
(15)
656

Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined benefit
plans
Balance as of July 1, 2020
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2021
Profit (loss)
Other comprehensive income
Total comprehensive income
Issuance of new shares
Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Dividends
Purchase and disposal of non-controlling interests
Transfer to retained earnings
Total transactions with owners
Balance as of June 30, 2022

390
390
(390)
(390)
(548)
(548)
548
548
-

Retained earnings

Total
1
3,207
3,207
(0)
(389)
(389)
2,820
1,900
1,900
(1)
533
531
5,252

11

52,6754,531
4,531(2,462)(1,138)389(3,210)53,996
6,579
6,579(1,128)(533)(1,661)
58,914

Total

64,219
4,531
3,207
7,739
43
(429)
291
(1,138)(0)(1,233)70,725
6,579
1,900
8,479
42
(34)
(1,128)
3(1,116)78,088Non-controllinginterests

1,502
(13)
12
(0)
115
(47)
67
1,569
125
195
321
(15)
2,005
1,990
3,881

Total

65,721
4,518
3,220
7,738
43
115
(429)
291
(1,186)(0)(1,165)72,294
6,704
2,096
8,801
42
(34)
(1,143)
2,009
873
81,969(4) Consolidated Statement of Cash Flows
For the fiscal year
ended June 30,2021
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Impairment losses
Interest and dividend income
Interest expenses
Loss (gain) on derivatives
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in advance payments to suppliers
Decrease (increase) in prepaid expenses
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in consumption taxes payable
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
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
Capital contribution from non-controlling interests
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

12(Millions of yen)
For the fiscal year
ended June 30,2022

7,176
4,566
1,739
(397)
424
(182)
(1,172)(2,685)
109
(269)
1,242
(733)
2,203
528
1,564
498
47
14,660
152
251
(433)
(2,556)
12,073

10,800
4,976
281
(513)
483
(979)
(4,581)(1,837)
(541)
442
1,002
(2,463)(1,596)
1,519
1,162
147
(140)
8,161
178
356
(410)
(3,466)
4,820

(284)
199
(2,220)
(651)
(32)
1
238
(2,750)(235)(5,557)
(296)
(622)
137
(261)
(112)
(6,949)244,000(257,000)
15,043(5,977)(2,801)(1,145)(47)(7,928)
1,395
15,472970
17,838265,500(258,035)
4,985(8,331)(3,050)2,041(1,148)
(67)
1,892
(235)
17,838369
17,971

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Segment Information)
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 is accessible
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 types of products and services at the head office.
Each business management division formulates a comprehensive strategy based on the products and services andengages in conducting business activities.
In line with the above, the Group is composed of segments divided by products and services, with each business
management division serving as the foundation, and the three reportable segments are “Consulting”, “Urban &Spatial Development” and “Energy.”(2) Types of products and services by reportable segment“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, sand control,
environment, information systems, etc.
"Urban & Spatial Development” engages in the structuring, planning, design, and operation of urban and spatial
development business.
“Energy” engages in manufacturing and sale of electric power equipment and control devices, planning, design,
construction and construction management of mechanical, electrical and communication facilities as well as theenergy management business utilizing distributed energy resources.
2. Changes in reportable segments
From the current fiscal year, the Company has integrated the "Domestic Consulting" and "International
Consulting" segments into the "Consulting" segment, and the "Power Engineering" and "Energy" segments intothe "Energy" segment to strengthen the business axis, which is the first resilience policy in the medium-term
management plan "Building Resilience 2024." In addition, "Real Estate Leasing" is included in "Others" as it is nolonger a business segment. As a result of these changes, the previous 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, a consolidated subsidiary of the Company, has been
reclassified from the “Energy” segment to the “Consulting” segment as a result of reviewing the groupmanagement framework. In addition, as for our consolidated subsidiary Aichi Tamano Information System Co.,
Ltd., the segment category has been changed from “Consulting Business” to “Others” as a result of reviewing thegroup management framework of the Company following the acquisition of 51% of the shares of the said company
from our consolidated subsidiary Tamano Consultants Co., Ltd. in April 2022.
Please note that segment information for the previous fiscal year is provided based on the new reporting segments.
3. Calculation methods for revenue, income or loss, assets, and other items by reportable segment
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price, etc.

13

4. Revenue, income or loss, assets, liabilities, and other items by reportable segment
For the fiscal year ended June 30, 2021
(Millions of yen)
Reportable Segments
Urban & Spatial
Development

Consulting

EnergyTotal

Revenue
Revenue from external customers

80,09820,274

16,621

116,994

Intersegment revenue and transfers

474

1

329

805

80,573

20,275

16,951

117,799

6,126

2,266

814

9,207

Depreciation and amortization(1,899)(1,190)(547)(3,637)

Impairment losses(1,739)--(1,739)

0

-

34

35

58,572

32,10921,886

112,568

1,744

824

1,554

4,123

43

-

2,034

2,077

Total
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Other items

Share of profit (loss) of investments
accounted for using equity method
Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using equity
method(Millions of yen)
Others(Note1)

Adjustments(Note 3)

Total

Consolidated

Revenue
Revenue from external customers

865

117,859-

117,859

Intersegment revenue and transfers

750

1,555

(1,555)-

1,615

119,415(1,555)

117,859(2,083)

7,123

4

7,128

Total
Segment profit (loss)
Finance income

519

Finance costs(471)

Profit before tax

7,176

Other items
Depreciation and amortization(945)(4,582)

16(4,566)

Impairment losses-(1,739)-(1,739)

Share of profit (loss) of investments
accounted for using equity method

-

35

-

35

70,680183,248(27,110)156,137

1,323

5,446

(44)

5,401

-

2,077

-

2,077

Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using equity
method14

Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues, expenses such as general and administrative expenses that do not belong to the reporting segment and companywide assets such as land, buildings and investment securities.
2. The amount of increase in property, plant and equipment, and intangible assets includes the amount of increase in right-of-use
assets and investment property, but does not include the amount of increase in association with the new consolidation.
3. "Adjustments" is mainly elimination of transaction volume and transaction balance between segments.

For the fiscal year ended June 30, 2022
(Millions of yen)
Reportable Segments
Urban & Spatial
Development

Consulting

EnergyTotal

Revenue
Revenue from external customers

88,51022,58018,799129,891

Intersegment revenue and transfers

421

54

322

798

88,932

22,635

19,121

130,689

8,982

1,588

1,290

11,861(1,985)(1,437)(595)(4,018)

-

(281)

-

(281)

(14)

-

244

230

65,952

34,07531,040131,068

2,374

1,011

3,650

7,036

82

-

2,352

2,434

Total
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Other items
Depreciation and amortization
Impairment losses
Share of profit (loss) of investments
accounted for using equity method
Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using equity
method15

(Millions of yen)
Others(Note1)

Adjustments(Note 3)

Total

Consolidated

Revenue
Revenue from external customers

783

130,674-

130,674

Intersegment revenue and transfers

781

1,579

(1,579)-1,564

132,253(1,579)130,674(2,794)

9,066

(1)

9,065

Total
Segment profit (loss)
Finance income

2,218

Finance costs(483)

Profit before tax

10,800

Other items
Depreciation and amortization(973)(4,991)

15(4,976)

Impairment losses

-

(281)

-

(281)

Share of profit (loss) of investments
accounted for using equity method

-

230

-

230

76,045

207,113(33,187)

173,926

1,180

8,217

-

8,217

-

2,434

-

2,434

Segment assets
Increase in property, plant andequipment, and intangible assets(Note 2)
Investments accounted for using equity
methodNotes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues, expenses such as general and administrative expenses that do not belong to the reporting segment and companywide assets such as land, buildings and investment securities.
2. The amount of increase in property, plant and equipment, and intangible assets includes the amount of increase in right-of-use
assets and investment property, but does not include the amount of increase in association with the new consolidation.
3. "Adjustments" is mainly elimination of transaction volume and transaction balance between segments.

16

5. Information by product and service
Statement is omitted, as similar information is disclosed in “4. Revenue, income or loss, assets, liabilities, andother items by reportable segment”(Per Share Information)
For the fiscal year ended
June 30, 2021

For the fiscal year ended
June 30, 2022

Profit attributable to owners of parent (Millions of yen)

4,531

6,579

Weighted-average number of shares of common stock(Shares)

15,106,105

15,056,069

300.00436.98

Basic earnings per share (Yen)

Diluted earnings per share are not included because there are no potential shares.
(Significant Subsequent Events)
There is no relevant information.

17

4.

Other

(1) Status of Orders and Sales
By period_

Revenue 2

Revenue 1

Orders received

Category/Segment

97,76973.3

98,491

75.1

Urban & Spatial Development

21,45716.1

18,207

13.9

Energy13,991

10.5

14,343

10.9

Others

86

0.1

123

0.1

Total

133,304

100.0

131,166

100.0

Consulting

85,236

72.3

93,81071.8

Urban & Spatial Development

18,20915.5

21,276

16.3

Energy13,54811.5

14,804

11.3

Others

865

0.7

783

0.6

Total

117,859

100.0

130,674

100.0

Consulting

80,09868.0

88,51067.7

Urban & Spatial Development

20,27417.2

22,580

17.3

Energy16,621

14.1

18,799

14.4

Others

865

0.7

783

0.6

Total

117,859

100.0

130,674

100.0

Category/Segment
Foreign exchange andother adjustments

For the fiscal year ended
June 30, 2022
AmountComposition(M illions of yen)(%)

Consulting

By period_

Outstanding Orders

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

Consulting

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

For the fiscal year ended
June 30, 2022
AmountComposition(M illions of yen)
(%)

931

6,764

2,800

1,755

Energy(0)(2)

Others

-

-

Total

3,731

8,518

Urban & Spatial Development

Consulting

138,186

75.0

149,748

77.0

Urban & Spatial Development

23,06812.5

21,755

11.2

Energy22,99412.5

23,004

11.8

Others

0

0.0

-

-

Total

184,250

100.0

194,508

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. Foreign exchange and other adjustments include those related to exchange differences and outstanding order revisions.
5. As disclosed in "3. Consolidated Financial Statement and Primary Notes (5) Notes to Consolidated Financial Statements(Segment Information)," the Group has changed its reportable segments since the current fiscal year. The figures for theprevious fiscal year have been provided based on the new reporting segments.

18

(2) Changes in Directors
1. Change of Representative Director
Please refer to “Notice of Change of Representative Director and New Board Structure” announced on June 10, 2022.
2. Change of Other Directors
The reappointment of two Audit & Supervisory Board Members was approved by the meeting of the Board of
Directors held on August 12, 2022.
It will be implemented on September 29, 2022, after the necessary procedures (a resolution of the generalshareholders’ meeting, etc.)
About the other changes in directors, please refer to “Notice of Change of Representative Director and New Board
Structure” announced on June 10, 2022.
<Audit & Supervisory Board Members to be reappointed>
a. Yoshizo Gotob. Naoki Honjo

19