Consolidated Financial Results
for the Six Months Ended December 31, 2016
[Japanese GAAP]
February 13, 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: Toshihide Hattori, General Manager, Accounting Department
Phone: +81-3-3238-8040
Scheduled date of filing quarterly securities report: February 13, 2017
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes (for investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended December 31, 2016 (July 1, 2016 to December 31, 2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Operating
Ordinary
Profit (loss) attributable to
Net sales
income (loss)
income (loss)
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2016
26,30429.3(2,747)(2,286)(1,800)December 31, 2015
20,336
20.7(3,500)(3,328)(2,651)(Note) Comprehensive income:Six months ended December 31, 2016: ¥(3,975) million [ - %]Six months ended December 31, 2015: ¥(3,189) million [ - %]Net income (loss)
Diluted net income
per share(loss) per share
Six months ended
Yen
Yen
December 31, 2016
(116.96)
December 31, 2015
(173.46)(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 (loss) per share” are amounts on the assumption that the Company conducts the share consolidation on the beginning ofprevious fiscal year.
(2) Consolidated Financial Position
Total assets
Net assets
As ofMillion yen
Million yen
December 31, 2016
113,878
46,786
June 30, 2016
100,989
51,460(Reference) Equity: As of December 31, 2016
: ¥46,444 million
As of June 30, 2016
: ¥51,122 million

Equity ratio
%
40.8
50.6

2. Dividends
Annual dividends

Fiscal year ended June 30, 2016
Fiscal year ending June 30, 2017

1stquarter-end
Yen
-

2nd
quarter-end
Yen
-

3rd
quarter-end
Yen-

Year-end
Yen
10.00

Total
Yen
10.00

Fiscal year ending June 30, 2017
75.00
75.00
(Forecast)(Note)(1) Revision to the forecast for dividends announced most recently: None
(2) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The figure for “Year-end
annual dividends” for fiscal year ending June 30, 2017 (Forecast) is an amount that takes into account the share consolidation. For details,
please refer to “* Explanation of the proper use of financial results forecast and other notes.”3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2017(July 1, 2016 to June 30, 2017)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net income
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
105,000
28.3
6,000
27.0
6,300
44.3
3,600
97.5
233.84(Note)(1) Revision to the financial results forecast announced most recently: None
(2) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The figure for “Net income
per share” of full year in the Consolidated Financial Results Forecasts for the Fiscal Year Ending June 30, 2017 is an amount that takes
into account the share consolidation. For details, please refer to “* Explanation of the proper use of financial results forecast and othernotes.”* Notes:(1) Changes in significant subsidiaries during the period (Changes in scope of consolidations resulting from change in subsidiaries): None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
As of December 31, 2016
: 17,331,302 shares
As of June 30, 2016
: 17,331,302 shares2) Total number of treasury stock at the end of the period:
As of December 31, 2016
: 1,914,108 shares
As of June 30, 2016
: 1,963,228 shares
3) Average number of shares during the period:
Six months ended December 31, 2016
: 15,395,122 shares
Six months ended December 31, 2015
: 15,283,229 shares(Note) The Company conducted a share consolidation at a rate of one share for every five shares on January 1, 2017. The figures for “Total
number of issued shares at the end of the period”, “Total number of treasury stock at the end of the period” and “Average number ofshares during the period” are amounts on the assumption that the Company conducts the share consolidation on the beginning ofprevious fiscal year.
* Presentation regarding the implementation status of the quarterly review procedures
At the time of disclosure of these quarterly financial results, quarterly review procedures for the quarterly consolidated financial
statements have not been completed.
* 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 asof 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 the assumptions and other related matters concerning forecasts for the fiscal year
ending June 30, 2017, refer to “1 Analysis of Operating Results and Financial Position” on page 2, contained in the attacheddocuments.
2. Following the approval of the proposal concerning the share consolidation at the 72nd Ordinary General Meeting of Shareholders
held on September 29, 2016, the Company conducted a share consolidation at a rate of one share for every five shares on January 1,
2017. Forecast of dividend and Consolidated Financial Results for the Fiscal Year Ending June 30, 2017 with and without taking into
account the share consolidation are as follows:(1) Dividend Forecast for the Fiscal Year Ending June 30, 2017
Without taking into accountWith taking into accountthe share consolidation
the share consolidation
Yen
Yen
Year-end dividend per share
15.00
75.00
(2) Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2017
Without taking into accountWith taking into accountthe share consolidation
the share consolidation
Yen
Yen
Net income per share of full year
46.77
233.84
3. The Company is scheduled to hold a financial results briefing session for investors and analysts on February 23, 2017. The financial
briefing materials to be distributed at this briefing session will be subsequently posted on the Company’s website.

Table of Contents of Attached Documents
1. Analysis of Operating Results and Financial Position ......................................................................................... 2(1) Analysis of Consolidated Operating Results ................................................................................................... 2(2) Analysis of Consolidated Financial Position ................................................................................................... 4(3) Consolidated Financial Results Forecast and Other Forward-looking Statements .......................................... 4
2. Matters Relating to Summary Information (Notes) ............................................................................................. 5(1) Changes in Significant Subsidiaries during the Period(Changes in scope of consolidations resulting from changes in subsidiaries) ................................................. 5(2) Accounting Policies Adopted Specially for the Preparation of
Quarterly Consolidated Financial Statements .................................................................................................. 5(3) Changes in Accounting Policies and Changes in Accounting Estimates andRetrospective Restatement............................................................................................................................... 5(4) Additional Information .................................................................................................................................... 5
3. Quarterly Consolidated Financial Statements ...................................................................................................... 6(1) Quarterly Consolidated Balance Sheets ........................................................................................................... 6(2) Quarterly Consolidated Statements of Operating and Comprehensive Income ............................................... 8(3) Quarterly Consolidated Statements of Cash Flows ......................................................................................... 9(4) Notes to Quarterly Consolidated Financial Statements ................................................................................. 10(Notes on Going Concern Assumption) ......................................................................................................... 10(Significant Changes in Shareholders’ Equity) .............................................................................................. 10(Segment Information)................................................................................................................................... 10(Subsequent Events) ...................................................................................................................................... 12
4. Supplementary Information ............................................................................................................................... 14(1) Status of Orders and Sales ............................................................................................................................. 14

1

1. Analysis of Operating Results and Financial Position(1) Analysis of Consolidated Operating Results
During the six months ended December 31, 2016 (from July 1, 2016 to December 31, 2016), Japan’s
economy continued on a moderate recovery path with signs of private consumption picking up against thebackground of steady improvements in employment and income. Overseas economies continued to have asense of growing the risk of economic downturns in the emerging markets of China and other 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 had steady demand: front-loaded implementationof budgets for public works for Domestic Consulting Operations; strategic exporting of infrastructure systems
for International Consulting Operations; and renewal of power distribution equipment for Power Engineering
Operations. Regarding Urban & Spatial Development Operations, demand for architectural design in the UK
was solid, although it was affected by the yen’s appreciation against the pound sterling.
Under these circumstances, based on the Medium-Term Management Plan “NK-AIM” (from July 2015 toJune 2018), with the fundamental principles of “Sustainable growth of 3 core businesses,” “Generation andexpansion of new businesses,” and “Autonomy and collaboration,” the Group tackled the three focus themesof “Further advance of global expansion,” “Further expansion of business fields and improvement profitability
by intensifying existing core businesses,” and “Demonstrating the true merits of aggregated technologies forestablishment of new business domains.” As companywide measures to realize these goals, the Group actively
advanced “Development of next-generation core technologies and further improvement of technical strengths
and productivity,” “Strengthening of human resource recruitment and training,” and “Promotion ofcollaboration and enhancement of corporate governance.”
As a result of the above, and due mainly to the acceptance of an order for consulting services relating to theGreater Cairo Metro Line No.4 phase 1 project in Egypt, and consolidation of the balance sheet of BDP
HOLDINGS LIMITED, as well as its subsidiaries (together, “BDP”) from the end of the previous fiscal year,
orders received increased 52.8% year on year to ¥58,451 million, net sales increased 29.3% year on year to¥26,304 million, operating loss decreased 21.5% year on year to ¥2,747 million, ordinary loss decreased
31.3% year on year to ¥2,286 million, and loss attributable to owners of parent decreased 32.1% to ¥1,800
million.
Net sales for the six months ended December 31, 2016 were ¥26,304 million, an achievement rate of 25.1%
against the net sales forecast of ¥105,000 million for the fiscal year ending June 30, 2017 (six months ended
December 31, 2015: 24.8%). This is attributable to seasonal fluctuations that resulted in recorded net sales
being concentrated in the second half of the fiscal year, due to the concentration of consulting services andproduct deliveries to government agencies and power companies, the Company’s major customers, in thesecond half. On the other hand, because expenses such as selling, general and administrative expenses weregenerated fairly evenly throughout the year, the Group recorded an operating loss, an ordinary loss, and a loss
attributable to owners of parent for the six months ended December 31, 2016.

2

Business results for each segment are as follows:[Domestic Consulting Operations]
Domestic Consulting Operations promoted increasing business areas and market shares by specifying
significant businesses, improving profitability by restructuring work procedures, and effectively entering into
alliances.
As a result, orders received for the six months ended December 31, 2016, increased 22.9% year on year to¥23,951 million. Net sales decreased 5.2% year on year to ¥4,237 million. Operating loss decreased 1.5% year
on year to ¥3,482 million. Ordinary loss decreased 1.5% year on year to ¥3,474 million.
[International Consulting Operations]With the strength of our region-based operating systems in the four regions of—Asia, Middle East and North
Africa, Sub-Saharan Africa, and Latin America—International Consulting Operations secured a stablebusiness foundation through the expansion of the share of Official Development Assistance (ODA) projects
and expanding business scale by urban development and Public-Private Partnership (PPP) businesses.
As a result, orders received for the six months ended December 31, 2016, increased 101.1% year on year to¥22,229 million. Net sales decreased 4.7% year on year to ¥7,959 million. Operating income was ¥201 million(an operating loss of ¥118 million was recorded for the six months ended December 31, 2015) and ordinary
income was ¥277 million (an ordinary loss of ¥342 million was recorded for the six months ended December
31, 2015).
[Power Engineering Operations]
In the Power Engineering Operations, we worked to increase cost competitiveness through strict cost
reductions, strengthen sales and marketing capabilities through proposing cost reduction plans, enhance fusionand cooperation among the business areas of consulting, products, and construction, promote products andtechnology development, and reinforce and expand the mechanical and electromechanical consulting division.
As a result, orders received decreased 13.1% year on year to ¥6,690 million. Net sales increased 8.2% year
on year to ¥7,738 million. Operating income increased 23.7% year on year to ¥1,442 million. Ordinary income
increased 23.3% year on year to ¥1,411 million.
[Urban & Spatial Development Operations]
Urban & Spatial Development Operations promoted expanding the scope of business in the urban
development and architectural design area by growing businesses within the UK and promoting collaborationsin the Asian region.
As a result, the Group achieved orders received of ¥5,555 million, net sales of ¥5,993 million, operating
income of ¥76 million, and ordinary income of ¥50 million.
BDP has become a consolidated subsidiary of the Company from the previous fiscal year, consolidating only
the balance sheets. Subsequently, BDP’s statement of income started to be consolidated from the quarter
ended September 30, 2016..
[Real Estate Leasing Operations]
Real Estate Leasing Operations saw a decline in the number of rental contracts caused by reconstruction of
the headquarters building.
As a result, net sales decreased 10.7% year on year to ¥241 million, operating income increased 1.3% year
on year to ¥203 million, and ordinary income increased 1.2% year on year to ¥203 million.

3(2) Analysis of Consolidated Financial Position
Total assets at the end of the current second quarter amounted to ¥113,878 million, up ¥12,888 million fromthe end of the previous fiscal year.
In the Assets section, current assets were ¥58,400 million, an increase of ¥12,246 million from the end of theprevious fiscal year, due primarily to a ¥13,235 million increase in work in process, a ¥1,496 million increasein cash and deposits, and a ¥3,960 million decrease in notes and accounts receivable - trade resulting fromtheir collection.
Non-current assets were ¥55,478 million, an increase of ¥642 million from the end of the previous fiscal
year, due primarily to an increase in investment securities and long-term loans receivable, and a decrease ingoodwill and trademark right from the impact of foreign currency translations of overseas subsidiarycompanies.
In the Liabilities section, current liabilities were ¥38,986 million, a decrease of ¥4,121 million from the endof the previous fiscal year. This decrease was mainly attributable to a ¥9,700 million decrease in short-termloans payable, a ¥6,706 million increase in advances received, and a ¥2,147 decrease in accrued expenses
included in other current liabilities.
Non-current liabilities were ¥28,105 million, an increase of ¥21,683 million from the end of the previous
fiscal year. This increase was mainly attributable to a ¥19,888 million increase in long-term loans payable.
Net assets amounted to ¥46,786 million, a decrease of ¥4,673 million from the end of the previous fiscal year.
The primary factors behind this decrease were a ¥1,800 million loss attributable to owners of parent for thecurrent second quarter due to net sales being concentrated in the second half of the fiscal year, ¥771 million in
cash dividends paid, a ¥769 million increase in valuation difference on available-for-sale securities, and a¥2,944 million decrease in foreign currency translation adjustment.
As a result, the shareholders’ equity ratio decreased 9.8 percentage points from the end of the previous fiscal
year to 40.8%.

(3) Consolidated Financial Results Forecast and Other Forward-looking Statements
The consolidated financial results forecast for the fiscal year ending June 30, 2017 have not changed from theforecast announced in the Consolidated Financial Results for the Fiscal Year Ended June 30, 2016 dated
August 12, 2016.

4

2. Matters Relating to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period (Changes in scope of consolidations resulting
from changes in subsidiaries)
There were no material changes in subsidiaries.

(2) Accounting Policies Adopted Specially for the Preparation of Quarterly Consolidated Financial
Statements(Deferral of cost variance)
Because most of the cost variance attributable to seasonal fluctuations due primarily to capacity utilization is
expected to be resolved by the end of the cost accounting period, it is deferred as other current liability.

(3) Changes in Accounting Policies and Changes in Accounting Estimates and Retrospective Restatement
There were no material changes in Accounting Policies and Changes in Accounting Estimates andRetrospective Restatement.

(4) Additional Information(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)

Effective from the first quarter ended September 30, 2016, the Company adopted the Implementation
Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016).

5

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

Previous fiscal year
(As of June 30, 2016)(Million yen)
Current second quarter(As of December 31, 2016)

11,174
17,715
12,2535,017(8)46,153

12,671
13,75525,4896,491(7)58,4006,079
17,332
1,148
24,561

5,954
17,4081,247
24,60910,312
6,308
16,6208,204
5,000
13,205

13,814(160)
13,65454,836
100,989

17,834(171)
17,66355,478113,878

Previous fiscal year
(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
Provision for directors' retirement benefits
Provision for environmental measures
Net defined benefit liability
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

7(Million yen)
Current second quarter(As of December 31, 2016)

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

5,372
6,300
1,915
300
14,888
1,536
141
8,531
38,986

1,260
45
34
2,554
2,526
6,421
49,52921,148
45
34
4,049
2,827
28,10567,091

7,393
6,209
40,821(3,020)51,403

7,393
6,209
38,249(2,945)
48,906

(8)
(301)
28
(280)
337
51,460100,989761(3,246)22(2,462)
342
46,786
113,878

(2) Quarterly Consolidated Statements of Operating and Comprehensive Income
Six months ended December 31

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Gain on sales of investment securities
Gain on derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
State subsidy
Total extraordinary income
Extraordinary losses
Head office transfer cost
Loss on reduction of non-current assets
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit attributable toLoss attributable to owners of parent
Loss 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-controllinginterests

8

For the six months
ended December 31, 2015
(From July 1, 2015
to December 31, 2015)
20,336
15,5994,736
8,237(3,500)(Million yen)
For the six months
ended December 31, 2016
(From July 1, 2016
to December 31, 2016)
26,304
17,936
8,368
11,116(2,747)

55
115
124
65
361

72
116
253
158
600

14
159
14
189
(3,328)

88
33
18
140
(2,286)

42
42

-

162
38
200
(3,487)413(1,241)(827)(2,659)105
105(2,392)417(1,002)(585)(1,807)(2,651)(8)(1,800)
(6)

(464)
(61)
(4)
(529)
(3,189)769(2,932)(5)(2,168)(3,975)(3,174)(3,981)(14)

5

(3) Quarterly Consolidated Statements of Cash Flows

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

9

For the six months
ended December 31, 2015
(From July 1, 2015
to December 31, 2015)(Million yen)
For the six months
ended December 31, 2016
(From July 1, 2016
to December 31, 2016)(3,487)
763
162
(192)
(24)

(2,392)
767
232
105
8
610

89

82

(171)
-

(189)
(253)

3,327

3,506

(12,246)37
3,749(13,114)278
6,652(2,185)(1,137)(2,465)(12,643)
112
(13)
(443)
(1,650)(14,639)(1,694)(6,537)
75
(58)
(118)
(698)
(7,337)128(1,060)(79)(1,372)(1,321)
36
612(3,057)

(755)
(599)
(96)
(221)
(730)
319
4
(2,078)12,000
(65)
92
(6)
(769)
(32)
11,218(52)(6,530)11,673
5,142(9,700)22,121
(939)
102
(27)
(771)
(27)
10,758
(408)
933
9,400
10,334

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
For the six months ended December 31, 2016 (from July 1, 2016, to December 31, 2016)

There is no relevant information.
(Significant Changes in Shareholders’ Equity)
For the six months ended December 31, 2016 (from July 1, 2016, to December 31, 2016)

There is no relevant information.
(Segment Information)
For the six months ended December 31, 2015 (from July 1, 2015, to December 31, 2015)
1) Information about net sales and income or loss for each reportable segment(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations

Subtotal

Others(Note)Total

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

4,470

8,347

7,148

-

270

20,23798

20,336

172

0

109

-

62

344

1

345

Total

4,643

8,348

7,258

-

332

20,582

99

20,682

Segment profit (loss)(3,528)

(342)

1,144

-

201

(2,524)(799)(3,324)(Note) “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.

2) Differences between total segment profit or loss and ordinary income or loss in the quarterly consolidated
statement of operations and comprehensive income and main details of these differences(Million yen)
IncomeAmountReportable segment total(2,524)

Loss of “Others” category

(799)
(3)

Elimination of inter-segment transactions
Ordinary loss in the quarterly consolidated statement ofoperations and comprehensive income(3,328)10

For the three months ended December 31, 2016 (from July 1, 2016, to December 31, 2016)
1) Information about net sales and income or loss for each reportable segment(Million yen)
Reportable segment
Urban &
Domestic International
Power
Real Estate
SpatialConsulting Consulting Engineering
Leasing
Development
Operations Operations Operations
Operations
Operations

Subtotal

Others(Note)Total

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

4,237

7,959

7,738

5,993

241

26,170134

26,304

194

6

105

2

65

373

1

374

Total

4,431

7,965

7,843

5,996

306

26,543

135

26,679Segment profit (loss)(3,474)

277

1,411

50

203

(1,531)(760)(2,292)(Note) “Others” refers to a group of operations from which no profits are gained or that produce only incidental gains.

2) Differences between total segment profit or loss and ordinary income or loss in the quarterly consolidated
statement of operations and comprehensive income and main details of these differences(Million yen)
IncomeAmountReportable Segment total(1,531)

Loss of “Others” category(760)

Elimination of intersegment transactions

5

Ordinary loss in the quarterly consolidated statement ofoperations and comprehensive income(2,286)3) Information concerning changes to reporting segments, etc.

In the previous fiscal year, the Company acquired the issued stock of BDP HOLDINGS LIMITED,
including it and its subsidiaries within the scope of consolidation. Following this event in the recorded
segment, the reportable segment “Urban & Spatial Development Operations” was added.
The segment information for the six months ended December 31 2015 disclosed as comparative
information to the six months ended December 31, 2016 is stated according to the revised designationof the reporting segment.

11

(Subsequent Events)
Change in the Number of Share Units and Share Consolidation

At the meeting of the Board of Directors held on August 12, 2016, the Company resolved to change
the number of Share Units, and presented the proposal concerning the share consolidation at the 72nd
Ordinary General Meeting of Shareholders held on September 29, 2016. The share consolidation wasapproved at the Meeting of Shareholders. The change in the number of Share Units and the shareconsolidation came into effect from January 1, 2017. The outline is summarized as follows:
1) Change in the number of Share Units(a) Reason for change

Domestic stock exchanges in Japan announced the “Action Plan for Consolidating Trading Units”
which aims to standardize trading units for common stock of listed domestic companies at 100 shares.
As a company listed on the Tokyo Stock Exchange, the Company respects the aim and decided tochange the number of Share Units to 100 shares.
(b) Details of the change

The Company changed the number of Share Units from 1,000 shares to 100 shares.
2) Share consolidation(a) Purpose of the share consolidation

Even after the change in the number of Share Units as mentioned in (1) above, the Company decided
to implement the share consolidation at a rate of one share for every five shares in order to adjust its
investment unit to an appropriate level, which is required by stock exchanges to be between ¥50
thousand and ¥500 thousand. The total number of authorized shares changed from 189,580,000 sharesto 38,000,000 shares according to the consolidation ratio.
(b) Details of share consolidation) Class of stock to be consolidated: Common stock) Consolidation method and ratio:
On January 1, 2017, the Company will consolidate every five shares into one share based on the numberof shares owned by shareholders listed in the register of shareholders as of December 31, 2016.
) Total number of authorized shares as of effective date:

38,000,000 shares

According to the Companies Act, the articles of incorporation stipulating the total number of authorizedshares shall be deemed to have changed from 189,580,000 shares to 38,000,000 shares on the effective
date of the share consolidation, January 1, 2017.
) Change in number of shares due to consolidation:
Total number of outstanding shares before share consolidation(as of December 31, 2016)

86,656,510 shares

Change in number of shares due to share consolidation

69,325,208 shares

Total number of outstanding shares after share consolidation 17,331,302 shares

12) Treatment of fractional shares less than one share:
If any fractional shares less than one share are produced as a result of the share consolidation, theCompany will sell or purchase such shares in bulk in accordance with the Companies Act, and theproceeds from the transactions will be distributed to shareholders of fractional shares at the ratio of
fractional shares ownership.
3) Schedule
Date of resolution by the Board of Directors

August 12, 2016

Date of resolution at the Ordinary General Meeting of Shareholders
Effective date

September 29, 2016
January 1, 201713

4. Supplementary Information(1) Status of Orders and Sales
By period
Category/Operations

Net sales 2

Net sales 1

Orders received

Domestic Consulting
International consulting

11,05228.9

22,22938.0

28,876

27.8

Power Engineering
Urban & Spatial Development(Note 1)
Real Estate Leasing

7,697

20.1

6,690

11.5

14,716

14.1

-

5,555

9.5

16,251

15.6

-

-

7

0.0

24

0.0

64

0.1

Total

38,245100.0

58,451100.0

104,019

100.0

Domestic Consulting

4,929

24.2

4,332

16.5

43,545

53.2

International consulting

8,921

43.9

8,747

33.2

23,362

28.6

Power Engineering
Urban & Spatial Development(Note 1)
Real Estate Leasing

6,213

30.6

6,941

26.4

14,421

17.6

5,993

22.8

-

270

1.3

241

0.9

514

0.6

Other

0

0.0

48

0.2

21

0.0

Total

20,336100.0

26,304100.0

81,865100.0

Domestic Consulting

4,470

22.0

4,237

16.1

40,77849.8International consulting

8,347

41.0

7,959

30.3

22,07027.0

Power Engineering
Urban & Spatial Development(Note 1)
Real Estate Leasing

7,148

35.2

7,738

29.4

17,522

21.4

5,993

22.8

-

270

1.3

241

0.9

514

0.6

Other

98

0.5

134

0.5

979

1.2

Total

20,336100.0

26,304100.0

81,865100.0

Category/Operations
Domestic Consulting
Impact of foreignexchange fluctuations

-

Other

By period

International consulting

As of December 31, 2015
As of December 31, 2016
As of June 30, 2016
Composition
AmountComposition
AmountComposition
Amount(Million yen)(%)
(Million yen)(%)
(Million yen)
(%)
(694)

3,074

(2,940)Power Engineering
Urban & Spatial Development(Note 1)
Real Estate Leasing

-

-

-

-

(3,039)

-

-

-

-

Other

-

-

-

Total

(694)

35

(2,940)42,531

39.8

48,15734.1

28,53826.2

International consulting

52,864

49.5

70,55949.954,001

49.5

Power Engineering
Urban & Spatial Development(Note 1)
Real Estate Leasing

11,392

10.7

9,951

7.0

10,203

9.4-

12,7749.0

16,251

14.9--

Domestic Consulting
Outstanding Orders

For the six months ended
For the six months ended
For the fiscal year ended
December 31, 2015
December 31, 2016
June 30, 2016
Composition
AmountComposition
AmountComposition
Amount(Million yen)(%)
(Million yen)(%)
(Million yen)(%)
19,48751.0
23,95141.0
44,109
42.4

Other

13

0.0

25

0.0

49

0.0

Total
106,801
100.0
141,468
100.0
109,044100.0(Notes) 1. Urban & Spatial Development Operations has been added to reportable segments due to the inclusion of BDP
HOLDINGS LIMITED and its subsidiaries, which were consolidated from the end of the previous fiscal year.

2. The above amounts are exclusive of consumption taxes.
3. The above amounts are for external customers.
4. Net sales 1 is by segment which received orders. Net sales 2 is by segment which provided services.
5. From the three months ended September 30, 2016, the impact of foreign exchange fluctuations is listed
separately from orders received, and the year for comparison is also reclassified.

14