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 Fiscal Year Ended March 2023
(Japanese Standards) (Consolidated Basis)
May 12, 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(E-mail)koho-ir@takuma.co.jp

Planned regular general shareholders’ meeting convocation dateJune 27, 2023

Planned securities report submission dateJune 27, 2023

Planned dividend payment start dateJune 28, 2023

Availability of supplementary results materials:

Yes

Financial results briefing:

Yes (For securities analysis and institutional investors)(All amounts rounded down to the nearest million yen)

1.

Consolidated results for FY2022 (April 1, 2022, to March 31, 2023)(1) Consolidated results(Percentages indicate percent of change from the previous year.)Net sales
Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen%

Millions of yen%

FY2022

142,651

6.4

13,81339.1

14,684

37.9

9,621

29.4

FY2021

134,092

(8.6)

9,928

(5.2)

10,647

(3.5)

7,434

(1.3)

(Note) Comprehensive income:

FY2022
FY2021

10,989 million yen (up 51.6 %)7,246 million yen (down 13.2 %)Basic earnings
per share

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Yen

Yen

%

%

%

FY2022120.22

―

9.9

8.3

9.7

FY2021

91.53

―

8.1

6.0

7.4

(Reference)

Equity in net income of affiliates

FY2022
FY2021145 million yen
178 million yen(2) Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

FY2022

179,688

101,16756.0

1,258.24

FY2021

174,535

94,35453.8

1,162.87(Reference)

Equity FY2022
FY2021

100,599 million yen
93,908 million yen

(3) Status of consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY202232,191(5,604)(4,280)63,911

FY20219,000(2,394)(9,112)

41,244

2.

Dividend status
Annual dividend
Q1

FY2021
FY2022
FY2023 (forecast)

3.

Q2

Q3

Q4

Total dividend

Total

Yen

Yen

Yen

Yen

―
―
―

18.00
19.00
24.00

―
―
―

18.00
24.00
24.00

Payout ratio(consolidated)

Ratio ofdividends to net
assets(consolidated)

Yen Millions of yen

36.00
43.00
48.00

2,916
3,437

%

%

39.3
35.8
46.2

3.2
3.6

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

Operating profit

Millions of yen%

146,000

2.3

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

11,300 (18.2)% Millions of yen

12,000 (18.3)

Basic earnings
per share%Yen

8,300 (13.7)

103.81

○ Attachments
1. Business results ......................................................................................................................................... 2(1) Overview of results for FY2022........................................................................................................... 2(2) Future outlook ...................................................................................................................................... 7(3) Basic policy concerning profit allocation and dividends during FY2022 and FY2023 ....................... 7
2. Management policies ................................................................................................................................... 8(1) Basic policies on management ............................................................................................................. 8(2) Medium- and long-term management strategy and issues that need to be addressed .......................... 9(3) Business environment .......................................................................................................................... 10
3. Basic approach to the selection of accounting standards ............................................................................. 11
4. Consolidated Financial Statements .............................................................................................................. 12(1) Consolidated Balance Sheet ................................................................................................................. 12(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .............. 14(3) Consolidated Statement of Cash Flows ................................................................................................ 17
5. Supplementary forecast materials ................................................................................................................ 19(1) Consolidated earnings forecast by segment ......................................................................................... 19(2) Consolidated capital investment, depreciation, and research and development expense forecast ....... 19
6. Supplementary Materials ............................................................................................................................. 20
Domestic Environment and Energy Business Breakdown ........................................................................ 20

1. Business results
Forward-looking statements in the text reflect the judgment of the Group’s management as of the end of theconsolidated fiscal year under review.

(1) Overview of results for FY2022
Orders received during FY2022 remained robust at 168,558 million yen, even though that figure fell slightly below
our target at the beginning of the year (170,000 million yen) thanks to reliable conversion of continued robust demand
including waste treatment plants, biomass power plants, and other products into orders.
Net sales rose to 142,651 million yen, up 8,558 million yen from the previous fiscal year, as a result of steady progresson previously ordered plant construction projects. As a result, the order backlog rose 25,907 million yen to 471,211
million yen.
Operating profit rose 3,884 million yen compared to FY2021 to 13,813 million yen as a result of an increase in net
sales and improved profitability, while ordinary profit rose 4,036 million yen to 14,684 million yen. Profit attributableto owners of parent rose 2,187 million yen to 9,621 million yen.
The demand downturn seen in some segments and other effects of the COVID-19 pandemic generally improved, andno serious impacts made themselves felt in the business results for FY2022.
Performance by segment during the consolidated fiscal year
(Unit: Millions of yen)

Consolidated FY2022
Segment

Ordersreceived

Net sales

OperatingprofitChange from consolidated FY2021
Backlog

Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

130,280

115,985

14,875447,646(34,584)

7,328

3,968

Overseas Environment and Energy
Business

5,922

1,351

(172)

6,028

3,887

346

45

Package Boiler Business

18,40017,312

915

5,940

1,570

813

242

Equipment and Systems Business

14,328

8,360

826

11,644

5,410

(230)

169

Total

168,932

143,010

16,444471,260(23,716)

8,257

4,427

(373)

(358)

(2,630)

(48)

30

300

(542)

168,558

142,651

13,813471,211(23,685)

8,558

3,884

Adjustments
Total

The Group’s operating segments consist of the following four businesses: Domestic Environment and Energy,
Overseas Environment and Energy, Package Boiler, and Equipment and Systems business. The flagship Domestic
Environment and Energy segment accounts for most net sales. (During FY2022, this segment accounted for about
80% of total net sales before excluding inter-segment sales and about 90% of total operating profit before excluding
adjustments.)―2―

Domestic Environment and Energy Business
During FY2022, efforts to take advantage of continued robust demand yielded orders in our waste treatment plant
BTO business and for biomass power plant construction, including a number of fuel transition projects. Nonetheless,orders received fell 34,584 million yen compared to the previous fiscal year, when we received orders for three waste
treatment plant DBO projects, to 130,280 million yen.
<<Major orders received during FY2022>>
Municipal solid waste plants: One waste treatment plant BTO business project, one primary equipment improvement
project, one long-term O&M project
Energy plants: Six biomass power plant new construction projects, one industrial waste treatment plant
new construction projectAs a result of changes in the project mix in our EPC business and growth in recurring revenue model businesses suchas O&M and power retail businesses, net sales rose 7,328 million yen from the previous fiscal year to 115,985 million
yen, while operating profit rose 3,968 million yen to 14,875 million yen.
Long-term O&M such as the DBO business (contracts with a duration of at least 10 years, including with privatesector businesses) accounted for about 50% of the order backlog of 447,646 million yen.
In addition to continuing to work to maintain and expand our position as a leading company by securing orders for
waste treatment plants, biomass power plants, and sewage sludge incineration power plants, we will work to expand
our recurring revenue model businesses, for example by improving quality and strengthening profitability in ouroperations business, pursuing service life extension and solution proposals, and expanding our power retail business.
* EPC : Engineering, procurement, and construction; one approach we use in our plant construction business.
O&M : Operation and maintenance; one approach we use in our plant operation business.
BTO : Build, transfer, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).
DBO : Design, build, and operate; one approach we use in our plant construction and operation businesses (EPC + O&M).

＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales
164.8

160.5
123.1
108.1

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

120.7

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2019

130.2
115.9

108.6

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2020

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2021

FY2022＜Orders received and net sales (by quarter)＞（Units：Billions of yen）

Orders received
Net sales
78.0
69.7

65.1
48.8

47.7
36.1
20.2

33.8

32.3

19.0

28.6

24.7

24.2

20.9

25.0

26.1

35.9

27.2

31.7

28.2

33.6

22.3

9.2
25.7 27.7

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY2019FY2020Q3
FY2021

―3―

20.8

19.9

32.7

25.6

28.7

27.6

33.9

Q4

Q1

Q2

Q3

Q4

FY2022

Overseas Environment and Energy Business
During FY2022, orders received rose 3,887 million yen to 5,922 million yen as we booked orders for new
construction of an energy plant in Thailand and a waste treatment plant in Vietnam.
Net sales rose to 1,351 million yen, up 346 million yen from the previous fiscal year, thanks in part to progress in an
equipment replacement project at an Energy from Waste plant as part of an order received last year, while thesegment's operating loss improved from 218 million yen to 172 million yen.
In addition to redoubling ongoing cost-cutting effort, for example by expanding the scope of overseas procurement,
we will work to increase added value and differentiate ourselves from our competitors, including by accommodating
new biomass fuels and enhancing maintenance services offered through our local subsidiary in Thailand, as we
continue to strive to earn biomass power plant orders. In addition, we will build structures to secure orders for Energy
from Waste plants, including partnerships with local companies, so that we can capture future demand, particularly
in Thailand and Taiwan.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales

5.9

2.0
1.31.1

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2019

0.8
Q1

1.1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

1.3

1.0
Q1

FY2020Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2021

―4―

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2022

Package Boiler Business
During FY2022, orders received rose 1,570 million yen from the previous fiscal year to 18,400 million yen as net
sales rose 813 million yen to 17,312 million yen and operating profit rose 242 million yen to 915 million yen on arecovery in equipment utilization and new-equipment demand, both of which had been weighed down by the effectsof the COVID-19 pandemic.
We will continue to maintain and expand the domestic business with a focus on replacement demand and maintenancewhile striving to expand the overseas business through efforts centered on our local subsidiary in Thailand.
Additionally, we will work to develop new heat source system markets anticipating the decarbonized society of the
future, including hybrid hot water supply systems that combine heat pumps with vacuum-type hot water heaters aswell as wood chip-fueled biomass boilers.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales

Q1

17.9 17.8

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY201918.4

17.5 16.9

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

16.816.4

Q1

FY2020Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2021

―5―

Q1

17.3

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2022

Equipment and Systems Business
During FY2022, orders received rose 5,410 million yen to 14,328 million yen as performance benefited from robust
demand for semiconductor industry equipment and orders received for large projects in the building equipment
business.
In addition, net sales fell 230 million yen from the previous fiscal year to 8,360 million yen due to factors including
lengthening lead times, while operating profit rose 169 million yen to 826 million yen as a result of factors including
improved profitability in the building equipment business.
Going forward, we will continue to work to expand orders in the building equipment business by strengthening oursales and construction capabilities as well as to increase profit in our semiconductor industry equipment bystrengthening product competitiveness.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales

14.3
10.1

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY20198.9 8.5

8.2

7.8
6.7

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

Q1

FY2020Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2021

8.3

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2022The Takuma Group is implementing its 13th Medium-Term Management Plan, which covers FY2021 to FY2023,
establishing a cumulative consolidated ordinary profit target of 36.0 billion yen for its three-year period. Cumulative
ordinary profit up to and including FY2022 totaled 25.3 billion yen, indicating generally steady progress towards theplan’s target. We will continue to diligently work toward the plan’s targets.

―6―

(2) Future outlook
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.
During FY2023, in light of these circumstances, we expect to see continued robust demand for facilities such as waste
treatment plants and biomass power plants, and we have set a target of 170,000 million yen for orders received.
Turning to profitability, we expect net sales to surpass FY2022 at 146,000 million yen, but anticipate operating profit,
ordinary profit, and profit attributable to owners of parent to fall below FY2022 levels at 11,300 million yen, 12,000
million yen, and 8,300 million yen, respectively, as changes in the project mix in the EPC business are aggravated by
an expected increase in operating expenses, particularly with regard to investments in R&D and human resources,
and an increase in depreciation charges associated with operations at the new Harima Factory, among other factors.
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 a
commitment on the part of the Company to achieve any particular level of performance. Actual performance may
diverge significantly for a variety of reasons.

(3) Basic policy concerning profit allocation and dividends during FY2022 and FY2023
Takuma has adopted a policy of returning profits to shareholders founded on the principle of maintaining a stabledividend while working to strengthen its constitution to ensure competitiveness in an increasingly challenging market
and taking into account a comprehensive range of factors, including business performance.
We award a total of two dividends each fiscal year, namely, an interim dividend and a year-end dividend. The former
is determined by resolution of the Board of Directors, while the latter is determined by resolution of the Regular
General Meeting of Shareholders.
In keeping with this policy, we are planning to offer a year-end dividend of 24 yen per share, as announced on
February 9, 2023, which combined with the interim dividend paid in December 2022 will yield an annual dividendof 43 yen per share.
In addition, we plan to increase the dividend for FY2023 from 43 yen per share to 48 yen per share (including aninterim dividend of 24 yen and an end-of-year dividend of 24 yen), reflecting the outlook for achieving ordinary
profit of 36 billion yen (three-year cumulative total), our target under the 13th Medium-Term Management Plan.
We plan to increase our corporate value by continuing to strengthen our financial position through enhancement of
our internal reserve and utilizing it to finance capital investment and R&D investment to facilitate the future
development of our businesses.

―7―

2. Management policies
Forward-looking statements in the text reflect the judgment of the Group’s management as of the end of theconsolidated fiscal year under review.

(1) Basic policies on management
Company motto
Value Technology, Value People, Value the EarthManagement Principles
Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and thesatisfaction of all stakeholders by providing goods and services that are needed and recognized as valuable in society.
Long-term Vision
Takuma aims for sustainable growth with customers and society by implementing ESG management andmaintenance of its role of being an indispensable presence in society as a leading company in the field of renewableenergy utilization and environmental protection, and we will strive to achieve ordinary profit of 20 billion yen by
2030.
[1] Management Principles
Founder Tsunekichi Takuma invented the Takuma boiler in 1912, making a significant contribution to thedevelopment of Japanese industry. He then founded Takuma in 1938 with the founding spirit of “Serve society
through boiler manufacturing.” Since that time, we have carried on Takuma’s philosophy while manufacturing anarray of boiler types and entered the environmental and sanitation field such as waste treatment plants and water
treatment plants while taking advantage of boiler technologies. Also, we have contributed to the development ofsociety and to providing solutions for challenges while broadening our businesses with a focus on energy use andenvironmental protection. The Group’s Management Principles derive from its founding philosophy, and Takuma
retains an unchanging system of values that seek to contribute to the long-term, sustainable development of society
through its business activities.

[2] Long-Term Vision (Vision 2030)
Global issues that merit concern include the growing seriousness of the problem of climate change; the worsening of
the sanitation environment due to rapid population growth and urbanization, particularly in emerging nations; andincreasing energy demand. At the same time, domestic challenges like falling internal demand caused by the shrinking
and aging of Japan’s population, shortages of human resources and future leaders, tight financial conditions affecting
government, and aging infrastructure are triggering major concerns about how a sustainable society can be realized
going forward. Based on these medium- and long-term trends and social issues, we have formulated Vision 2030 asa long-term vision that will serve as guidelines for the Group’s medium- and long-term management.
In keeping with this vision, the Takuma Group will implement Environment, Social, and Governance (ESG)
management, an approach that consists of addressing key ESG-related issues in an effort to achieve sustainablegrowth by resolving issues faced by customers and society through business activities. In pursuing business activities
built on a core of ESG management, we will strive to become a great partner for our customers by leveraging thetechnologies and expertise related to energy utilization and environmental protection that are the Group’s strengths,
along with the relationships of trust we have developed with customers through long-term after-sales service andother interactions. Through the useful technologies and services created through innovation by the Group, which
carries on the spirit of a tenacious inventor, we will resolve challenges faced by customers and society, with a focus
on the fields of renewable energy utilization and environmental protection. We will work to achieve ordinary profitof 20 billion yen in 2030 by addressing important ESG-related issues through our business activities and pursuingsustainable growth alongside our customers and society.

―8―(2) Medium- and long-term management strategy and issues that need to be addressed
13th Medium-Term Management Plan (FY2021 to FY2023)
The Group launched its 13th Medium-Term Management Plan (FY2021 to FY2023) in April 2021 as the first step
towards realizing Vision 2030. The plan's theme is laying the foundation for further growth based on the managementfoundation and business foundation that the Group has built under previous Medium-Term Management Plans.
Policies of the 13th Medium-Term Management Plan
We will strengthen conventional businesses by reinforcing the Group's management foundation and at the same time
accelerate its response to future environmental changes. We will strive to realize sustainable growth alongsidecustomers and society by implementing ESG management through these business activities.

a. Implementing ESG management
In order to realize sustainable growth alongside customers and society by implementing ESG management as set
forth in Vision 2030, the Group has approached the task of formulating the 13th Medium-Term Management Plan byorganizing various ESG issues from the dual standpoints of their importance for stakeholders on the one hand, andtheir importance for the Group on the other. This process led to the identification of seven key issues (Materiality)that deserve to be given priority by the Group.
Key issues (Materiality)
Environment

Helping combat climate change
Conserving resources and protecting the environment
Strengthening relationships of trust with customers and communities

SocialPursuing partnerships and innovation
Promoting activities of human resources
Ensuring safety and health

Governance

Strengthening corporate governance

Going forward, we will report on specific initiatives and targets related to materialities as well as progress towards
them through our CSR Report and other resources.

―9―b. Strengthening the management foundation
In order to anticipate change and realize additional growth as environmental change gathers pace, for example in the
rapid development of digital technologies and the goal of achieving carbon neutrality by 2050, the Group will work
to strengthen its management foundation through active allocation and investment of resources in human resources,
digital technologies, and other areas of its operations. Through this initiative, we will strengthen conventional
businesses and accelerate our response to future environmental changes.
c. Financial targets
In order to achieve the goal of posting ordinary profit of 20 billion yen in FY2030 as set forth in Vision 2030, the13th Medium-Term Management Plan sets the achievement of steady growth and a target of cumulative consolidated
ordinary profit of 36 billion yen over the course of the plan’s three years as the first step in that process.
(3) Business environment
As the impacts of climate change increasingly manifest themselves, for example in the form of larger-scale natural
disasters, renewable energy is attracting high expectations as a path by which we can realize a carbon-free society. In
addition, there is continuing robust demand in the Group’s principal business domains, such as demand for
replacements and service life extensions of aging infrastructure. At the same time, the business environment is
expected to undergo major changes over the medium and long term, including shifts in demand in response to changes
in the structure of society, for example due to the shrinking and aging of Japan’s population; increased reliance oncomprehensive contracts as part of a trend to outsource government services; and increasing sophistication anddiversity in customer needs in order to solve regional issues.
Domestic Environment and Energy Business
The primary focus of our Domestic Environment and Energy Business is the construction of waste treatment plants
and sewage treatment plants for local governments and facilities such as biomass power plants for private-sector
customers (EPC business) as well as after-sales service including plant maintenance, operational management, O&M,
and power retail business services (recurring revenue model businesses).
Our EPC business is susceptible to the effects of factors such as government policy, for example environmental andother laws and regulations and policy guiding subsidies for local governments and private-sector businesses, as wellas trends affecting public investment and private-sector capital investment. As a result, demand will fluctuatesignificantly over the medium and long term. At the same time, we expect stable demand for our after-sales service
business, which comprises maintenance and other services, across the plant life cycle of 20 to 30 years after the startof operation.
Demand remains brisk in our EPC business, and we expect that trend to continue for the time being thanks to demand
for replacement and service life extensions due to aging (for waste treatment plants), demand for energy-saving andenergy-creating conversions as part of updates to sludge incineration plants (in the sewage treatment field), anddemand for facilities such as power plants that use biomass or waste plastic as fuel and utilize the feed-in tariff
program for power (for private-sector customers). We also expect to see growing demand in the future in our aftersales service business thanks to trends such as an increase in comprehensive contracts for plant operation in waste
treatment, growing reliance on comprehensive contracts in sewage treatment, and increases in the number of plants
eligible for after-sales service and in demand for operational outsourcing due to growth in the number of plants
delivered by Takuma to private-sector customers.

―10―Overseas Environment and Energy Business
The primary focus of our Overseas Environment and Energy Business is the construction and maintenance of biomass
power plants and Energy from Waste plants overseas. We are developing these businesses primarily in Southeast Asia,
particularly in Thailand and Taiwan, where we have local subsidiaries.
Although we expect to see continued demand for biomass power plants in Southeast Asia on the back of the region’s
rich biomass resources and recognize the market’s high potential over the medium and long term, competition with
Indian and Chinese manufacturers remains intense for our flagship bagasse-fired boiler plants. In addition, while
demand for Energy from Waste facilities is rising as a result of urbanization, a stable market has not yet formed todate due to factors including a lack of programs and standards and insufficient funding from governments.
Package Boiler Business
The primary focus of our Package Boiler Business is the manufacture, sale, and maintenance of general-purpose
boilers such as compact once-through boilers and vacuum-type hot water heaters, which are used as heat-source
equipment at shopping centers, factories, and other facilities.
Although the domestic general-purpose boiler market is a mature market, we expect to see a certain amount ofongoing demand centering on equipment updates, and we also expect demand overseas to grow, primarily inSoutheast Asia.
Equipment and Systems Business
The primary focus of our Equipment and Systems Business is the design and fabrication of building equipment likeair-conditioning, water, and wastewater systems as well as the manufacture, sale, and maintenance of equipment for
use in the semiconductor industry, including clean equipment and washing systems.
Building demand is expected to firm in the near future, and the semiconductor manufacturing equipment market is
expected to grow over the medium and long term, despite short-term fluctuations.

3. Basic approach to the selection of accounting standards
The Group’s policy for the immediate future is to compile consolidated financial statements in accordance withJapanese standards.
We intend to carefully consider a future transition to International Financial Reporting Standards (IFRS) based on acomprehensive consideration of factors including our future business activities and trends in the market environment.

―11―

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Millions of yen)
FY2021(March 31, 2022)

FY2022(March 31, 2023)

AssetsCurrent assets
Cash and deposits

42,97965,242

Notes receivable – trade
Accounts receivable – trade

3,065
30,8503,175
33,304Contract assets
Merchandise and finished goods

48,185834

24,371
839

Work in process
Raw materials and supplies

2,139
1,630

3,247
1,924

Other
Allowance for doubtful accounts

4,646
(16)

2,159
(15)

134,315

134,249

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures (net amount)

4,825

10,738

Machinery, equipment and vehicles (net amount)
Land

1,514
2,393

3,871
2,605

Other (net amount)

3,613

1,221

Total property, plant and equipment

12,346

18,436298

540

Intangible assets
Investments and other assets
Investment securities

17,012

18,280Long-term loans receivable
Deferred tax assets

722
4,748

248
4,159

Retirement benefit asset
Other

38
5,187

37
3,871

Allowance for doubtful accounts

(134)

(135)

Total investments and other assets

27,574

26,462

Total non-current assets
Total assets―12―

40,22045,439174,535

179,688

(Unit: Millions of yen)
FY2021(March 31, 2022)

FY2022(March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable – trade

33,07026,610Electronically recorded obligations – operating
Short-term borrowings

16,493300

14,749220

Income taxes payable
Contract liabilities

500
8,669

3,362
11,059Provision for bonuses
Provision for product warranties

3,375
52

3,789
215

Provision for loss on construction contracts
Other

1,516
4,724

625
6,208

Total current liabilities

68,704

66,840246
10,791

266
10,980439

433

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

11,477

11,68080,181

78,521

Share capital
Capital surplus

13,367
3,872

13,367
3,873

Retained earnings
Treasury shares

75,507(2,765)82,045(3,916)

Total shareholders’ equity

89,981

95,370

3,956

5,227

Deferred gains or losses on hedges
Foreign currency translation adjustment

110
79

48
91

Remeasurements of defined benefit plans

(220)

(138)

Total accumulated other comprehensive income

3,926

5,229

445

567

Total net assets

94,354

101,167

Liabilities and net assets

174,535

179,688

Total liabilities
Net assets
Shareholders' equity

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

Non-controlling interests―13―(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales

FY2021(April 1, 2021,
to March 31, 2022)
134,092
107,909(Unit: Millions of yen)
FY2022(April 1, 2022,
to March 31, 2023)
142,651
111,096

Gross profit

26,18331,554

Selling, general and administrative expenses
Salaries and allowances

5,895

6,079

1,591
1,285

1,688
1,531

448
60

455
55

1,631
621

1,706
813

277
838

286
856

Taxes and dues
Research and development expenses

474
1,003

698
1,147

Other

2,125

2,421

Total selling, general and administrative expenses

16,254

17,741

9,928

13,813Welfare expenses
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for directors (and other officers)
Commission expenses
Travel and transportation expenses
Depreciation
Rent expenses

Operating profit
Non-operating income
Interest income

18

19

Dividend income
Share of profit of entities accounted for using equity method

434
178

549
145

Other

235

236

Total non-operating income

866

950

Non-operating expenses
Interest expenses

5

2

45
66

28
19

Other

30

28

Total non-operating expenses

148

80

10,647

14,684

Commitment fees
Loss on disposal of non-current assets

Ordinary profit―14―

(Unit: Millions of yen)
FY2022(April 1, 2022,
to March 31, 2023)

FY2021(April 1, 2021,
to March 31, 2022)
Extraordinary income
Gain on sale of investment securities
Insurance claim income

197
300

195
-

Total extraordinary income

497

195

355
-

598
177

Extraordinary losses
New factory construction expenses
Loss on valuation of investment securities
Total extraordinary losses

355

776

10,78914,102

Income taxes – current

618

4,411

Income taxes – deferred

2,697

8

Total income taxes

3,315

4,420

Profit

7,473

9,682

38

60

7,434

9,621

Profit before income taxes

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent―15―

Consolidated statement of comprehensive income
FY2021(April 1, 2021,
to March 31, 2022)
7,473(Unit: Millions of yen)
FY2022(April 1, 2022,
to March 31, 2023)
9,682

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(504)
74

1,271
(61)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

67
135

15
81

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income

(226)

1,306

7,246

10,9897,189
57

10,92564

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―16―(3) Consolidated Statement of Cash Flows(Unit: Millions of yen)
FY2022(April 1, 2022,
to March 31, 2023)

FY2021(April 1, 2021,
to March 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in provision for loss on liquidation of subsidiaries andassociates
Increase (decrease) in retirement benefit liability

10,78914,102

961
(197)

1,136
(195)

21
66

177
19

7
(2,429)413(891)(1,003)

-

535

306

Interest and dividend income
Interest paid

(452)
5

(569)
2

Share of loss (profit) of entities accounted for using equity method
Decrease (increase) in trade receivables

(178)
1,457

(145)
23,795Decrease (increase) in inventories
Decrease (increase) in other current assets

(138)
(108)

(1,379)700

Increase (decrease) in trade payables
Increase (decrease) in other current liabilities

3,745(2,633)(10,990)
2,618

Other, net

2,669

2,227

Subtotal

13,11931,330522

619Interest paid
Income taxes refund (paid)(8)(4,633)(2)
244

Net cash provided by (used in) operating activities

9,000

32,191(246)(1,510)411(5,808)Proceeds from sale of property, plant and equipment
Purchase of intangible assets

117
(61)

98
(101)

Purchase of investment securities
Proceeds from sale of investment securities

(352)
377

(323)
390

Loan advances
Proceeds from collection of loans receivable

(610)
171

50

Other, net

(278)

(322)

(2,394)(5,604)

Interest and dividends received

Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities―17―

(Unit: Millions of yen)
FY2022(April 1, 2022,
to March 31, 2023)

FY2021(April 1, 2021,
to March 31, 2022)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(5,200)
(182)

(80)

Purchase of treasury shares
Dividends paid

(747)
(2,924)(1,252)(2,972)

(23)
(33)

(32)
56

(9,112)(4,280)

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

45

16

Net increase (decrease) in cash and cash equivalents(2,461)

22,323

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

42,957

41,244

747

343

41,244

63,911―18―

5. 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

1,900

763

Research and development expenses

1,150

2,000

849

―19―

6. Supplementary Materials

Domestic Environment and Energy Business Breakdown（Unit：Billions of yen）
FY2022(actual)

Orders received
Municipal Solid Waste Plants (EPC)

Net sales

Backlog

34.0

28.2

127.3

52.9

41.8

232.9

Energy Plants

32.2

33.5

75.8

Water Treatment Plants, other

10.7

12.1

11.5

Adjustments

0.2

0.2

0

130.2

115.9

447.6

Municipal Solid Waste Plants (after sales service
business)

Total―20―