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 Third Quarter of the Fiscal Year Ending March 2022
(Japanese Standards) (Consolidated Basis)
February 9, 2022
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 dateFebruary 9, 2022

Planned dividend payment start date

None

Availability of supplementary quarterly results materials:

None

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

1.

Consolidated results for Q3 FY2021 (April 1, 2021, to December 31, 2021)(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%

Q3 FY2021

93,679(11.3)

5,306(36.5)

5,907 (34.0)

4,080(38.5)Q3 FY2020

105,584

16.2

8,359

36.9

8,954

6,635

28.8

(Note) Comprehensive income:

Q3 FY2021
Q3 FY2020

34.1

4,225 million yen (down 41.1 %)7,178 million yen (up 43.0 %)Basic earnings per share

Diluted earnings per share

Yen

Yen

Q3 FY2021

50.22

―

Q3 FY2020

81.73

―

(2) Consolidated financial position
Total assets
Q3 FY2021

Equity Q3 FY2021
FY2020Capital adequacy ratio

Millions of yen
171,392

Millions of yen
92,080%53.5

177,741

90,55550.7

FY2020(Reference)

Net assets

91,649 million yen
90,142 million yen

2.

Dividend status
Annual dividend
Q1

Q2

Q3

Q4

Total

Yen

Yen

Yen

Yen

Yen

FY2020

―

18.00

―

18.00

36.00

FY2021

―

18.00

―
18.00

36.00

FY2021 (forecast)(Note) Revisions of the most recently announced dividend forecast: None3.

Consolidated earnings forecast for FY2021 (April 1, 2021, to March 31, 2022)(Percentages indicate percent of change from the previous year.)Net sales
Millions of yen

FY2021

Operating profit%

Millions of yen

135,000 (8.0)

9,700Profit attributable toowners of parent

Ordinary profit% Millions of yen(7.4)

10,300% Millions of yen

(6.6)

7,300

Basic earnings
per share

%

Yen

(3.0)

89.83

(Note) Revisions of the most recently announced earnings forecast: Yes
Basic earnings per share figures in the consolidated earnings forecast do not take into account a share buyback resolution adopted by Takuma’s Board of
Directors on February 9, 2022.

○ Attachments
1.
(1)
(2)
2.
(1)
(2)

Qualitative information related to the quarterly results under review ......................................................... 2
Explanation of business results .................................................................................................................... 2
Explanation concerning forward-looking statements such as consolidated earnings forecasts ................... 5
Quarterly Consolidated Financial Statements .............................................................................................. 6
Quarterly Consolidated Balance Sheet ........................................................................................................ 6
Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ............................................................................................................................... 8
3. Supplementary forecast materials ................................................................................................................ 10(1) Consolidated earnings forecast by segment ................................................................................................. 10(2) Consolidated capital investment, depreciation, and research and development expenses forecast ............. 10―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)

Q3 consolidated cumulative period of FY2021
Segment

Ordersreceived

Net sales

OperatingprofitBacklog

Change from the corresponding periodof FY2020
Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

86,79575,8805,975

388,058(49,073)(11,252)(2,972)

Overseas Environment and Energy
Business

1,510

690

(141)

1,247

1,120

(294)

(68)

Package Boiler Business

13,40911,876

441

6,054

(376)

109

131

Equipment and Systems Business

6,945

5,706

565

6,588

(355)

(346)

(206)

Total

108,662

94,1546,840

401,949(48,683)(11,783)(3,115)

(206)

(474)

(1,534)

(20)

321

(121)

61

108,455

93,6795,306

401,929(48,362)(11,905)(3,053)Adjustments
Total

During the Q3 consolidated cumulative period of FY2021, orders received fell 48,362 million yen compared to thecorresponding period of FY2020 to 108,455 million yen, and net sales fell 11,905 million yen to 93,679 million yen.
The decline was due primarily to a contraction in the Domestic Environment and Energy Business.
Operating profit fell 3,053 million yen compared to the corresponding period of FY2020 to 5,306 million yen, while
ordinary profit fell 3,046 million yen to 5,907 million yen. Profit attributable to owners of parent fell 2,554 million
yen to 4,080 million yen. These results were due primarily to a decline in profits in the Domestic Environment andEnergy Business.
Future uncertainty caused by the COVID-19 pandemic has had some impact, for example by weighing on capital
investment appetite and spurring delays in plans, and recent trends such as the rising costs of steel and other materials
and equipment dictate caution with regard to the future direction of the economy.
A description of each segment’s results follows.

―2―

Domestic Environment and Energy Business
During the Q3 consolidated cumulative period of FY2021, efforts to take advantage of continued robust demandyielded orders including one DBO project (encompassing construction and operation), one long-term O&M project,
two biomass power plant construction projects, one industrial waste treatment plant construction project, and one
large-scale equipment replacement project for a sand filtration system at a sewage treatment plant. However, orders
received fell 49,073 million yen to 86,795 million yen compared to the corresponding period of FY2020. The declinereflects the fact that we received more orders for comparatively large projects in the corresponding period of FY2020
as well as the termination of the contract for one project received in a previous fiscal year due to the project’s
cancellation. In addition, net sales fell 11,252 compared to the corresponding period of FY2020 to 75,880 million
yen, and operating profit fell 2,972 million yen to 5,975 million yen. This decline was due primarily to changes in
the mix of projects in the EPC business.
*Principal orders received during the corresponding period of FY2020: Three new construction projects, including
one DBO project (encompassing construction and operation) for a municipal solid waste treatment plant, two primaryequipment improvement projects, one long-term O&M project, one biomass power plant construction project, andone sewage sludge-fueled power plant construction project.

Overseas Environment and Energy Business
During the Q3 consolidated cumulative period of FY2021, orders received rose 1,120 million yen to 1,510 million
yen thanks in part to an order for an equipment replacement project at an Energy from Waste plant in Taiwan.
Nonetheless, net sales fell 294 million yen to 690 million yen compared to the corresponding period of FY2020,
when we posted net sales from a new biomass power plant project. The cumulative result was an operating loss of
141 million yen, increased from a loss of 73 million yen.

―3―

Package Boiler BusinessAlthough there were signs of a partial recovery in demand that had fallen due to the effects of the COVID-19
pandemic, a robust recovery failed to materialize during the Q3 consolidated cumulative period of FY2021 due to acontinued lack of clarity concerning the future direction of the economy as a result of the imposition of periodic statesof emergency, the implementation of targeted measures to prevent the spread of infection, and concern over a newsurge in infections.
As a result, orders received fell 376 million yen to 13,409 million yen compared to the corresponding period of
FY2020, when we booked orders for a substantial number of large projects, even as net sales rose 109 million yen to
11,876 million yen and operating profit rose 131 million yen to 441 million yen, thanks to continued efforts to capture
demand.

Equipment and Systems Business
During the Q3 consolidated cumulative period of FY2021, orders received fell 355 million yen compared to thecorresponding period of FY2020 to 6,945 million yen. This decline was the result of factors including delays inprivate-sector building and equipment construction plans caused by the COVID-19 pandemic, which offset firming
demand for semiconductor industry equipment resulting from an expanding market environment. Net sales fell 346
million yen to 5,706 million yen, while operating profit fell 206 million to 565 million yen due to factors including
delays in the delivery of supplies and equipment in the architectural equipment business.

We are seeing the effects of falling appetite for capital investment in certain sectors and delays in planned projects
stemming from a lack of clarity concerning the future direction of the economy due to the COVID-19 pandemic. As
a result, we have revised the full-year earnings forecast based on a consideration of factors including performancethrough Q3 FY2021 and the current business environment. For details, please see “(2) Explanation concerning
forward-looking statements such as consolidated earnings forecasts.”―4―

(2) Explanation concerning forward-looking statements such as consolidated earnings forecasts【FY2021 Forecast】
Segment
Domestic Environment and Energy
Business
Overseas Environment and Energy
Business(Unit: Millions of yen)

FY2021 Forecast(May 14, 2021) (①)
Orders
Net sales
received

FY2021 Forecast(February 9, 2022) (②)
Orders
Net sales
received

Change（②－①）
Ordersreceived

Net sales

151,500

110,000

152,200

109,600

700

(400)

3,000

500

1,800

900

(1,200)400

Package Boiler Business

18,00018,00017,50017,000(500)(1,000)Equipment and Systems Business

8,000

9,000

9,000

8,000

1,000

(1,000)180,500

137,500

180,500

135,500―(2,000)

(500)

(500)

(500)

(500)

―

0

180,000

137,000

180,000

135,000―(2,000)Total
Adjustments
Total

The Group expects to see continued demand for its principal products, including replacements and service life
extensions for, aging waste treatment plants and construction of biomass power plants against a backdrop of favorable
energy policies. At the same time, although the number of COVID-19 infections was exhibiting a declining trend fora time, factors including growth in infections due to new strains are contributing to a continued lack of clarity
concerning the future direction of the economy.
Against this backdrop, we expect net sales of 135,000 million yen, which is less than the previous forecast, during
FY2021 even as we continue to anticipate order volume in line with our initial outlook of 180,000 million yen at the
beginning of the year. This decline reflects the effects of falling appetite for capital investment in certain sectors anddelays in planned projects stemming from the lack of clarity concerning the future direction of the economy due tothe COVID-19 pandemic. We expect operating profit of 9,700 million yen, ordinary profit of 10,300 million yen, andcurrent profit attributable to owners of the parent of 7,300 million yen, all of which are less than the previous outlook,
due to the effects of lower net sales as well as a failure to reduce costs in line with initial targets due to factors
including the rising cost of steel and other materials and equipment.
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.
Additionally, should the effects of the COVID-19 pandemic broaden or last longer than anticipated, our performance
could be affected, for example in the form of a decline in new orders due to contracting demand or delayed orders ora slowdown in net sales as a result of delays in deliveries of previously ordered projects. These earnings forecasts do
not take such potential impacts into account. In the event it becomes necessary to revise the earnings forecast due tothe effects of the pandemic, we will make that information available in a timely and appropriate manner.
・ 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 constitutea commitment on the part of the Company to achieve any particular level of performance. Actual performance
may diverge significantly for a variety of reasons.

―5―2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
Q4 FY2020(March 31, 2021)

Q3 FY2021(December 31, 2021)

AssetsCurrent assets
Cash and deposits

44,42249,268Notes and accounts receivable – trade
Notes and accounts receivable - trade, and contract assets

84,222-

66,185Inventories
Other

4,465
1,962

7,753
5,716

Allowance for doubtful accounts

(16)

(15)

135,056

128,909

Property, plant and equipment
Intangible assets

9,759
267

10,345277

Investments and other assets
Investment securities

Total current assets
Non-current assets

17,74017,515

Other
Allowance for doubtful accounts

15,058(142)

14,480(134)

Total investments and other assets

32,65731,860Total non-current assets
Total assets―6―

42,68542,483

177,741

171,392

(Unit: Millions of yen)
Q4 FY2020(March 31, 2021)

Q3 FY2021(December 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade

30,71731,854

Electronically recorded obligations - operating
Short-term borrowings

13,184
5,602

16,581300

Income taxes payable
Advances received

2,569
9,349

113
-

Contract liabilities
Provision for bonuses

3,364

10,351
2,040

Provision for product warranties
Provision for loss on construction contracts

66
3,946

65
2,039

Provision for loss on liquidation of subsidiaries and associates
Other

1,003
6,354

4,318

Total current liabilities

76,157

67,665

80
241

20
231

Retirement benefit liability
Other

10,451
256

10,937457

Total non-current liabilities

11,02911,64587,186

79,311

Shareholders' equity
Share capital

13,367

13,367

Capital surplus
Retained earnings

3,840
70,8503,872
72,153

Treasury shares(2,087)(2,017)

Total shareholders’ equity

85,97087,375

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

4,461
36

4,440
60

Foreign currency translation adjustment
Remeasurements of defined benefit plans

30
(355)

63
(291)

Total accumulated other comprehensive income

4,172

4,273

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and other officers)

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests

412

431

Total net assets

90,55592,080Liabilities and net assets

177,741

171,392―7―

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
Third quarterly consolidated cumulative accounting period (Q3)
(Unit: Millions of yen)
Q3 FY2020(April 1, 2020,
to December 31, 2020)

Q3 FY2021(April 1, 2021,
to December 31, 2021)

Net sales

105,584

93,679

Cost of sales

85,481

76,545Gross profit

20,103

17,133

Selling, general and administrative expenses

11,743

11,827

Operating profit

8,359

5,306

Interest income
Dividend income

16
430

13
424

Share of profit of entities accounted for using equity method
Other

149
132

119
156

Total non-operating income

729

714

10

4

Commitment fees
Loss on disposal of non-current assets

21
81

21
55

Other

21

31

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Insurance claim income

135

112

8,954

5,907

-

300

Gain on sale of investment securities

1,002

80

Total extraordinary income

1,002

380

Extraordinary losses
New factory construction expenses-

255

Provision for loss on liquidation of subsidiaries and associates
Other

882
105

-

Total extraordinary losses

988

255

Quarterly profit before income taxes

8,968

6,032

Income taxes

2,309

1,920

Quarterly profit

6,658

4,112

23

31

6,635

4,080

Quarterly profit attributable to non-controlling interests
Quarterly profit attributable to owners of parent―8―

Quarterly Consolidated Statement of Comprehensive Income
Third quarterly consolidated cumulative accounting period (Q3)
(Unit: Millions of yen)
Q3 FY2020(April 1, 2020,
to December 31, 2020)
Quarterly profit

Q3 FY2021(April 1, 2021,
to December 31, 2021)

6,658

4,112

464

(21)

Deferred gains or losses on hedges
Foreign currency translation adjustment

(24)
6

24
45

Remeasurements of defined benefit plans, net of tax

74

64

Other comprehensive income
Valuation difference on available-for-sale securities

520

113

Quarterly comprehensive income

Total other comprehensive income

7,178

4,225

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

7,154

4,182

23

43

―9―

3. Supplementary forecast materials(1) Consolidated earnings forecast by segment(Unit: Millions of yen)
FY2021 (forecast)
Segment
Orders received

Net sales

Backlog

Domestic Environment and Energy Business

152,200

109,600

419,743

Overseas Environment and Energy Business

1,800

900

1,327

Package Boiler Business

17,50017,0005,021

Equipment and Systems Business

9,000

8,000

6,348

180,500

135,500

432,441

(500)

(500)

(288)

180,000

135,000

432,152

Total
Adjustments
Total(2) Consolidated capital investment, depreciation, and research and development expenses forecast(Unit: Millions of yen)
FY2020(actual)FY2021(forecast)

ChangeCapital investment

2,420

4,000

1,579

Depreciation

1,036

1,000

(36)

Research and development expenses

1,047

1,400

352

―10―