Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Summary of Results for the Second Quarter of the Fiscal Year Ending March 2024
(Japanese Standards) (Consolidated Basis)
November 8, 2023
Name of listed company Takuma Co., Ltd.

Listed stock exchange

Listing code 6013
Representative

URL https://www.takuma.co.jp/english/
Hiroaki Nanjo

Contact for inquiries

President and Representative Director
Manager, Corporate Communications &Investor Relations Department
Corporate Planning & Administration
Division

Tokyo Stock Exchange

Hiroyuki Kobayashi

Planned quarterly report submission dateNovember 8, 2023

Planned dividend payment start date

December 8, 2023

Availability of supplementary quarterly results materials:

Yes

Quarterly results briefing:None(E-mail)koho-ir@takuma.co.jp(All amounts rounded down to the nearest million yen)

1.

Consolidated results for Q2 FY2023 (April 1, 2023, to September 30, 2023)(Percentages indicate percent of change from thecorresponding quarter of the previous year.)(1) Consolidated results (cumulative)
Net sales

Operating profit

Millions of yen% Millions of yen

Quarterly profit
attributable to ownersof parent

Ordinary profit% Millions of yen%

Millions of yen%

Q2 FY2023

65,9160.1

2,724(51.9)

3,233 (47.4)

1,927(55.1)

Q2 FY2022

65,834

11.1

5,665

92.8

6,146

4,296

90.4

(Note) Comprehensive income:Q2 FY2023
Q2 FY2022

90.8

4,534 million yen (down 2.7 %)4,658 million yen (up 91.9%)

Basic earnings per share

Diluted earnings per share

YenYenQ2 FY2023

24.10―Q2 FY2022

53.63―(2) Consolidated financial position
Total assets
Q2 FY2023

Equity Q2 FY2023
FY2022

Capital adequacy ratio

Millions of yen
178,662

Millions of yen
103,807%57.8

179,688

101,167

56.0

FY2022(Reference)

Net assets

103,259 million yen
100,599 million yen

2.

Dividend status
Annual dividend
Q1Q2

Q3

Q4

TotalYen

Yen

Yen

Yen

Yen

FY2022

―

19.00

―

24.00

43.00

FY2023

―

24.00
―

24.00

48.00

FY2023 (forecast)(Note) Revisions of the most recently announced dividend forecast: None3.

Consolidated earnings forecast for FY2023 (April 1, 2023, to March 31, 2024)(Percentages indicate percent of change from the previous year.)Net sales
FY2023Operating profit

Millions of yen%

146,000

2.3

Millions of yen% Millions of yen

10,300 (25.4)(Note) Revisions of the most recently announced earnings forecast: Yes

Profit attributable toowners of parent

Ordinary profit% Millions of yen

11,000 (25.1)

Basic earnings
per share%Yen

7,700 (20.0)

96.25

○ Attachments
1.
(1)
(2)
2.
(1)
(2)

Qualitative information related to the quarterly results under review ......................................................... 2Explanation of business results .................................................................................................................... 2Explanation concerning forward-looking statements such as consolidated earnings forecasts ................... 6
Quarterly Consolidated Financial Statements .............................................................................................. 7
Quarterly Consolidated Balance Sheet ........................................................................................................ 7
Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ............................................................................................................................... 9(3) Quarterly Consolidated Statement of Cash Flows ....................................................................................... 113. Supplementary forecast materials ................................................................................................................ 13(1) Consolidated earnings forecast by segment ................................................................................................. 13(2) Consolidated capital investment, depreciation, and research and development expenses forecast ............. 13
4. Supplementary Materials ............................................................................................................................. 14
Domestic Environment and Energy Business Breakdown......................................................................... 14―1―

1. Qualitative information related to the quarterly results under review
Forward-looking statements in the text reflect the judgment of management as of the last day of the quarterly
consolidated accounting period under review.

(1) Explanation of business results(Unit: Millions of yen)

Q2 consolidated cumulative period of FY2023
Segment

Ordersreceived

Net sales

OperatingprofitBacklog

Change from the corresponding periodof FY2022
Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

57,18352,194

3,096

452,635

12,006(2,183)(3,380)Overseas Environment and Energy
Business

1,793

1,003

32

6,818

699

391

104

Package Boiler Business

10,449

8,441

404

7,948

432

974

258

Equipment and Systems Business

3,452

4,471

414

10,625(5,609)

898

115

Total

72,878

66,1103,946

478,0287,528

80(2,900)

(164)

(194)

(1,222)(18)

320(40)72,71465,9162,724

478,009

7,561

81(2,941)

Adjustments
Total

During the Q2 consolidated cumulative period of FY2023, orders received rose 7,561 million yen from thecorresponding quarter of FY2022 to 72,714 million yen due primarily to growth in the Domestic Environment andEnergy Business, while net sales totaled 65,916 million yen, roughly on par with the corresponding period of FY2022,
as growth in other segments offset a decline in sales for the Domestic Environment and Energy Business.
Operating profit fell 2,941 million yen compared to the corresponding period of FY2022 to 2,724 million yen, whileordinary profit fell 2,913 million yen to 3,233 million yen. Profit attributable to owners of parent fell 2,369 million
yen to 1,927 million yen. These results were due to a decrease in profits in the Domestic Environment and Energy
Business.
A description of each segment’s results follows.

―2―

Domestic Environment and Energy Business
During the Q2 consolidated cumulative period of FY2023, orders received rose 12,006 million yen from thecorresponding period of FY2022* to 57,183 million yen thanks to four orders for new biomass power plants, oneorder for a new captive-use biomass plant, and an order for a new large equipment replacement project involving asand filtration system at a sewage treatment plant. Net sales fell 2,183 million yen from the corresponding period of
FY2022 to 52,194 million yen due primarily to changes in the project mix in the EPC business. Turning to profitability,operating profit fell 3,380 million yen to 3,096 million yen due to changes in the project mix, an increased
depreciation burden accompanying operations at the new Harima Factory, growth in operating expenses such as
personnel expenses and R&D costs, and a charge to restore operations following an equipment issue at a waste
treatment plant (gasification melting furnaces) we operate under an O&M contract. The impact of that charge on
profit during the Q2 consolidated cumulative period of FY2023 is about 1 billion yen.
*Principal orders during the corresponding period of FY2022 included one waste treatment plant primary equipment
improvement project and five new biomass power plant construction projects.
＜Orders received and net sales (cumulative quarterly total)＞＜Orders received and net sales (by quarter)＞―3―

Overseas Environment and Energy Business
During the Q2 consolidated cumulative period of FY2023, orders received rose 699 million yen from thecorresponding period of FY2022 to 1,793 million yen thanks primarily to the posting of additional orders as part ofa waste treatment plant project in Vietnam for which we booked an order during FY2022. At the same time, net salesrose 391 million yen from the corresponding period of FY2022 to 1,003 million yen, while operating profit totaled
32 million yen, improved from a 72 million yen operating loss, due to factors including growth in maintenance sales
and progress on previously ordered plants.
＜Orders received and net sales (cumulative quarterly total)＞

Package Boiler Business
During the Q2 consolidated cumulative period of FY2023, orders received rose 432 million yen from thecorresponding period of FY2022 to 10,449 million yen as we booked orders for large projects. Net sales climbed 974
million yen to 8,441 million yen, while operating profit rose 258 million yen to 404 million yen, reflecting factors
including progress on previously ordered projects and completion of large projects.
＜Orders received and net sales (cumulative quarterly total)＞―4―

Equipment and Systems Business
Orders received during the Q2 consolidated cumulative period of FY2023 fell 5,609 million yen from thecorresponding period of FY2022 to 3,452 million yen as the pace of orders slowed following the receipt of orders fora number of large projects in the building equipment business during FY2022 and as sales of semiconductor
manufacturing equipment fell. However, net sales rose 898 million yen to 4,471 million yen, while operating profit
rose 115 million yen to 414 million yen thanks to progress on previously ordered projects.
＜Orders received and net sales (cumulative quarterly total)＞

We will continue to work towards our FY2023 orders received target of 170,000 million yen for the Domestic
Environment and Energy Business, and we expect to book orders for waste treatment plant construction and operation
as well as for facilities including energy plant and water treatment plants. Nonetheless, we are revising ourperformance outlook for the fiscal year ending March 2024 based on factors including additional charges taken in theDomestic Environment and Energy Business. For more information, please see “(2) Explanation concerning forwardlooking statements such as consolidated earnings forecasts.”―5―

(2) Explanation concerning forward-looking statements such as consolidated earnings forecasts
The Group expects to see continued demand for its principal products, including replacement and service life
extensions for aging waste treatment plants, and construction of biomass power plants against a backdrop of favorable
energy policies. However, uncertainty about the future continues, including due to confusion from the situation in
Russia-Ukraine, rising prices for steel and other materials and equipment, and growing lead times.
With regard to the Group's FY2023 performance under these conditions, the Group expects orders received of
170,000 million yen and net sales of 146,000 million yen, and there has been no change to the previous earnings
forecast for those figures. With regard to profitability, the Group expects operating profit of 10,300 million yen,ordinary profit of 11,000 million yen, and profit attributable to owners of parent of 7,700 million yen, all of which
would miss the previous forecast at those levels due to a charge to restore operations in the Q2 consolidated
cumulative period of FY2023 following an equipment issue at a waste treatment plant (gasification melting furnace)
we operate under an O&M contract.
More information about these revisions can be found in "Notice of Revision to Financial Results Forecasts for Fiscal
Year Ending March 31, 2024" (published November 8, 2023).
The Group manages its results exclusively on an annual basis because our results tend to fluctuate seasonally, forexample Q4 net sales significantly exceed those of other quarters. The reason is that many projects are delivered justbefore the end of the consolidated fiscal year, so progress and transfers of facilities to customers tend to increase as
Q4 progresses.
・ Earnings forecasts and other forward-looking statements in this document are based on information currently
available to the Company and on certain assumptions that are deemed to be reasonable. They do not constitute acommitment on the part of the Company to achieve any particular level of performance. Actual performance may
diverge significantly for a variety of reasons.

―6―2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
Q4 FY2022(March 31, 2023)

Q2 FY2023(September 30, 2023)

AssetsCurrent assets
Cash and deposits

65,242

67,253

Notes and accounts receivable - trade, and contract assets
Inventories

60,8516,011

49,408
10,290Other
Allowance for doubtful accounts

2,159
(15)

4,195
(15)

134,249

131,132

Total current assets
Non-current assets
Property, plant and equipment

18,43619,184

Intangible assets
Investments and other assets

540

584

Investment securities
Other

18,2808,317

22,1305,765

Allowance for doubtful accounts

(135)

(134)

Total investments and other assets

26,462

27,760Total non-current assets
Total assets―7―45,43947,530179,688

178,662

(Unit: Millions of yen)
Q4 FY2022(March 31, 2023)

Q2 FY2023(September 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable - trade26,61024,639

Electronically recorded obligations - operating
Short-term borrowings

14,749220

15,736
220

Income taxes payable
Contract liabilities

3,362
11,059862
12,609Provision for bonuses
Provision for product warranties

3,789
215

2,972
170

Provision for loss on construction contracts
Other

625
6,208

1,058
4,602

Total current liabilities

66,84062,872266
10,980242
11,316433

424

Non-current liabilities
Provision for retirement benefits for directors (and other officers)
Retirement benefit liability
Other
Total non-current liabilities

11,68011,98278,521

74,855

Share capital
Capital surplus

13,367
3,873

13,3673,886

Retained earnings
Treasury shares

82,045(3,916)82,054(3,827)

Total shareholders’ equity

95,37095,480Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

5,227

7,734

Deferred gains or losses on hedges
Foreign currency translation adjustment

4891

32
125

Remeasurements of defined benefit plans(138)(114)

Total accumulated other comprehensive income

5,229

7,778

567

548

Total net assets

101,167

103,807

Liabilities and net assets

179,688

178,662

Non-controlling interests―8―(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
Second quarterly consolidated cumulative accounting period (Q2)
(Unit: Millions of yen)
Q2 FY2022(April 1, 2022,
to September 30, 2022)

Q2 FY2023(April 1, 2023,to September 30, 2023)

Net sales

65,83465,916

Cost of sales51,753

54,056Gross profit

14,081

11,859Selling, general and administrative expenses

8,415

9,135

Operating profit

5,665

2,724

Interest income
Dividend income

9337

11373

Share of profit of entities accounted for using equity method
Other

37
145

30
120

Total non-operating income

528

535

10

Commitment fees
Loss on disposal of non-current assets

1413

14
6

Other

18

5

Total non-operating expenses

47

26

6,146

3,233

28

55

28

55

112-31763

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
New factory construction expenses
Other
Total extraordinary losses

112381

Quarterly profit before income taxes

6,063

2,907

Income taxes

1,731

932

Quarterly profit

4,331

1,975

Quarterly profit attributable to non-controlling interests
Quarterly profit attributable to owners of parent

―9―

3448

4,296

1,927

Quarterly Consolidated Statement of Comprehensive Income
Second quarterly consolidated cumulative accounting period (Q2)
(Unit: Millions of yen)
Q2 FY2022(April 1, 2022,to September 30, 2022)
Quarterly profit
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Q2 FY2023(April 1, 2023,to September 30, 2023)

4,331

1,975

160

2,507

83
45(15)
43

Remeasurements of defined benefit plans, net of tax

37

23

Total other comprehensive income

327

2,558

Quarterly comprehensive income

4,658

4,534

Comprehensive income attributable to
Quarterly comprehensive income attributable to owners ofparent
Quarterly comprehensive income attributable to noncontrolling interests

4,612

4,475

4658

―10―

(3) Quarterly Consolidated Statement of Cash Flows(Unit: Millions of yen)
Q2 FY2022(April 1, 2022,to September 30, 2022)

Q2 FY2023(April 1, 2023,to September 30, 2023)

Cash flows from operating activities
Quarterly profit before income taxes
Depreciation

6,063
434

2,907852

Loss (gain) on sale of investment securities
Loss (gain) on disposal of non-current assets(28)
13(55)
6

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in retirement benefit liability
Interest and dividend income

(595)

(816)

(571)

433

336(346)

369
(385)

10

Interest expenses
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables
Decrease (increase) in inventories

(37)

(30)

32,712(2,473)

12,964(4,278)Decrease (increase) in other current assets
Increase (decrease) in trade payables(1,193)(12,512)(2,331)
1,790

90
271

(2,030)1,930

22,163

11,326396

435Interest paid
Income taxes refund (paid)(1)
1,239(0)(3,346)

Net cash provided by (used in) operating activities

23,7988,414

452(3,001)(2,999)98(3,704)
0(50)
(300)

(209)
(343)

52
12114
12

Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received

Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

―11―

(38)

(333)

(2,773)(7,465)

(Unit: Millions of yen)
Q2 FY2022(April 1, 2022,
to September 30, 2022)
Cash flows from financing activities
Repayments of long-term borrowings

Q2 FY2023(April 1, 2023,
to September 30, 2023)(40)-(1,252)(1,453)(0)(1,918)

(32)
(17)

(78)
(15)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents(2,795)(2,013)4553

18,274(1,010)Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of period

41,244

63,911

343-

59,86362,901

Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net―12―

3. Supplementary forecast materials(1) Consolidated earnings forecast by segment(Unit: Millions of yen)
FY2023 (forecast)
Segment
Orders received

Net sales

Backlog

Domestic Environment and Energy Business

141,500

116,000

473,146

Overseas Environment and Energy Business

3,000

2,000

7,028

Package Boiler Business

18,00018,0005,940

Equipment and Systems Business

8,000

10,5009,144

170,500

146,500

495,260

(500)

(500)

(48)

170,000

146,000

495,211

Total
Adjustments
Total(2) Consolidated capital investment, depreciation, and research and development expenses forecast(Unit: Millions of yen)
FY2022(actual)FY2023(forecast)

ChangeCapital investment

7,100

3,600(3,500)

Depreciation

1,136

1,900763

Research and development expenses

1,150

2,000849―13―

4. Supplementary Materials
Domestic Environment and Energy Business Breakdown(Unit: Billions of yen)
Q2 FY2023 (actual)

Orders received
Municipal Solid Waste Plants (EPC)

Net sales

Backlog

0.7

15.0

112.9

22.9

17.1

238.7

Energy Plants

22.4

14.8

83.4

Water Treatment Plants, other

10.9

5.0

17.4

Adjustments

0.1

0.1

057.1

52.1

452.6

Municipal Solid Waste Plants (after sales servicebusiness)

Total―14―