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 2024
(Japanese Standards) (Consolidated Basis)
May 14, 2024
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
General Manager,
Corporate Communications & Investor
Relations Department Corporate Planning &Administration DivisionTokyo Stock Exchange

Hiroyuki Kobayashi(E-mail)koho-ir@takuma.co.jp

Planned regular general shareholders’ meeting convocation dateJune 25, 2024

Planned securities report submission dateJune 25, 2024

Planned dividend payment start dateJune 26, 2024

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 FY2023 (April 1, 2023, to March 31, 2024)(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%

FY2023

149,166

4.6

10,229(25.9)

11,166 (24.0)

8,754

(9.0)

FY2022

142,651

6.4

13,81339.1

14,684

9,621

29.4

(Note) Comprehensive income:

FY2023
FY2022

37.9

13,612 million yen (up 23.9 %)10,989 million yen (up 51.6 %)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

%

%

%

FY2023109.43

―

8.3

6.0

6.9

FY2022120.22

―

9.9

8.3

9.7

(Reference)

Equity in net income of affiliates

FY2023
FY2022181 million yen
145million yen(2) Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

FY2023

191,180

111,000

57.7

1,378.90

FY2022

179,688

101,16756.0

1,258.24(Reference)

Equity FY2023
FY2022

110,341 million yen
100,599 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

FY2023(12,222)(8,438)(3,379)39,938FY202232,191(5,604)(4,280)63,911

2.

Dividend status
Annual dividend
Q1

FY2022
FY2023
FY2024 (forecast)

3.

Q2

Q3

Q4

Total dividend

Total

Yen

Yen

Yen

Yen

―
―
―

19.00
24.00
28.00

―
―
―

24.00
24.00
28.00

Payout ratio(consolidated)

Ratio ofdividends to net
assets(consolidated)

Yen Millions of yen

43.00
48.00
56.00

3,437
3,841

%

%

35.8
43.9
50.2

3.6
3.6

Consolidated earnings forecast for FY2024 (April 1, 2024, to March 31, 2025)(Percentages indicate percent of change from the previous year.)Net sales
Millions of yen

FY2024

Operating profit%

Millions of yen

143,000 (4.1)

11,200

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share% Millions of yen% Millions of yen

%

Yen

9.5

7.5

0.5

111.56

12,0008,800

Meeting on May 14, 2024, the Board of Directors adopted resolutions concerning the acquisition and disposal of treasury stock. The net income pershare figure in the consolidated earnings forecast outlook for FY2024 takes into account the effect of those changes to treasury stock.

○ Attachments
1. Business results ......................................................................................................................................... 2(1) Overview of results for FY2023........................................................................................................... 2(2) Future outlook ...................................................................................................................................... 6(3) Basic policy concerning profit allocation and dividends during FY2023 and FY2024 ....................... 6
2. Management policies ................................................................................................................................... 7(1) Basic policies on management ............................................................................................................. 7(2) Medium- and long-term management strategy and issues that need to be addressed .......................... 8(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―

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 FY2023
Orders received during FY2023 remained robust at 160,568 million yen, even though that figure fell 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 across all segments, increasing 6,515 million yen from the previous fiscal year to 149,166 million yen.
As a result, the order backlog rose 11,401 million yen to 482,612 million yen.
Operating profit fell 3,584 million yen compared to FY2022 to 10,229 million yen as a result of primarily to adecrease in profits in the Domestic Environment and Energy Business, while ordinary profit fell 3,517 million yen to
11,166 million yen. Profit attributable to owners of parent fell 867 million yen to 8,754 million yen.
Performance by segment during the consolidated fiscal year
(Unit: Millions of yen)

Consolidated FY2023
Segment

Ordersreceived

Net sales

OperatingprofitChange from consolidated FY2022
Backlog

Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

131,567

119,190

11,228460,023

1,286

3,204

(3,646)

Overseas Environment and Energy
Business

2,280

2,440

184

5,868

(3,641)

1,088

357

Package Boiler Business

18,666

18,492

1,177

6,115

265

1,179

261

Equipment and Systems Business

8,403

9,437

341

10,610(5,925)

1,076

(484)

Total

160,918

149,560

12,932482,617(8,014)6,550(3,511)

(350)

(393)

(2,703)

(4)

23

(34)

(72)

160,568

149,166

10,229482,612(7,990)6,515(3,584)

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 FY2023, 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 FY2023, efforts to take advantage of continued robust demand yielded orders for two waste treatment plants
in our DBO business as well as orders for construction of new biomass power plants and sewage sludge incineration
power plants, offsetting contract cancellations due to the termination of some planned energy plants (which reducedorders received by more than 10 billion yen) and boosting orders received by 1,286 million yen from the previous
fiscal year to 131,567 million yen.
<<Major orders received during FY2023>>
Municipal solid waste plants: Two waste treatment plant DBO business projects
Energy plants: Seven biomass plants, one industrial waste treatment plant
Water treatment plants: One large-scale replacement project involving a sand filtration system, one sludge
incineration power plant
Net sales rose 3,204 million yen from the previous fiscal year to 119,190 million yen due primarily to growth in waste
treatment plant EPC and after-sales service. Turning to profitability, operating profit fell 3,646 million yen to 11,228
million yen due to changes in the project mix in the EPC business, an increased depreciation burden accompanying
operations at the new Harima Factory, growth in operating expenses such as personnel expenses and R&D costs, anda charge to restore operations during the Q2 consolidated accounting period 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 FY2023 is about 1 billion yen)In addition to continuing to work to maintain and expand our market position in the EPC business by securing orders
for biomass power plants, sewage sludge incineration power plants, and other facilities with a focus on waste
treatment plants, we will strive to establish a revenue model that takes maximum advantage of our installed base,including by improving quality and strengthening profitability in our operations business by utilizing data,
strengthening 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.
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
120.7

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

108.6

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2020

131.5
119.1

130.2
115.9

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2021

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

FY2022

FY2023＜Orders received and net sales (by quarter)＞（Units：Billions of yen）

Orders received
Net sales
78.0

69.7

65.1

57.8

48.8
33.8

32.3

24.7

28.6

24.2

20.8

26.1

19.9

31.0

27.2

31.7

28.2

33.6

22.3

25.7

9.2
27.7

32.7

25.6

28.7

27.6

33.9

24.0

28.1

16.5
30.9 36.0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2021

FY2022―3―

FY2023

Q4

Overseas Environment and Energy Business
Orders received during FY2023 fell 3,641 million yen from the previous fiscal year to 2,280 million yen as orders
for new-build plants were limited to additional orders for work at a waste treatment plant in Vietnam that was booked
during the previous fiscal year.
At the same time, net sales rose 1,088 million yen from the previous fiscal year to 2,440 million yen due to progresson construction of previously ordered plants, while the previous year’s operating loss of 172 million yen improved
to an operating profit of 184 million yen.
In addition to continuing to work to secure orders for biomass power plants by differentiating our offerings fromthose of our competitors through the ability to accommodate a wider range of fuels, including new biomass fuels, wewill lay the groundwork for future performance and 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 andTaiwan.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales
5.9

2.2 2.4

2.0
0.8
Q1

1.1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

1.3

1.0
Q1

FY2020Q2
Q3
Q4Cumulative Cumulative Cumulative

Q1

FY2021Q2
Q3
Q4Cumulative Cumulative Cumulative

Q1

FY2022Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2023

Package Boiler Business
During FY2023, orders received rose 265 million yen from the previous fiscal year to 18,666 million yen as thegradual recovery from the COVID-19 pandemic continued. In addition, net sales rose 1,179 million yen to 18,492
million yen, while operating profit rose 261 million yen to 1,177 million yen thanks to factors including progress on
previously ordered projects and completion of large projects.
We will work 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 by updating existing products like hydrogen, biomass, and electrical offerings.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales
17.5 16.9

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2020

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

18.618.4

18.4
17.3

16.8 16.4

Q1

FY2021Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2022

―4―

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2023Equipment and Systems Business
Orders received during FY2023 fell 5,925 million yen from the previous fiscal year to 8,403 million yen as the paceof orders slowed following the receipt of orders for a number of large projects in the building equipment businessduring FY2022 and as sales of semiconductor manufacturing equipment fell.
In addition, net sales rose 1,076 million yen from the previous fiscal year to 9,437 million yen due to progress on
previously ordered projects, while operating profit fell 484 million yen to 341 million yen due to the posting ofadditional expenses for some projects in the building equipment business.
In the building equipment business, we will work to steadily expand the scale of orders and profit by strengthening
our sales and construction capabilities while emphasizing profitability in our efforts to secure orders. In addition, we
will work to boost profits from semiconductor industry equipment by maintaining and expanding domestic sales andstrengthening overseas sales.
＜Orders received and net sales (cumulative quarterly total)＞（Units：Billions of yen）

Orders received
Net sales

14.3
10.1

8.9 8.5

8.2

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2020

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative

9.4
8.4

8.3

Q1

FY2021Q2
Q3
Q4Cumulative Cumulative Cumulative
FY2022

―5―

Q1

Q2
Q3
Q4
Cumulative Cumulative Cumulative
FY2023

(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, rising prices for steel and other materials andequipment, and growing lead times.
With regard to the Group's performance during FY2024, in light of these circumstances, we expect to see continued
robust demand for facilities such as waste treatment plants, and we have set a target of 230,000 million yen for orders
received.
Although we anticipate net sales of 143,000 million yen, which represents a decline relative to FY2023, we expect
operating profit, ordinary profit, and profit attributable to owners of parent to surpass FY2023 levels at 11,200 million
yen, 12,000 million yen, and 8,800 million yen, respectively, due to factors including changes in the project mix inthe EPC business.
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 FY2023 and FY2024
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 May
12, 2023, which combined with the interim dividend paid in December 2023 will yield an annual dividend of 48 yen
per share.
In addition, the 14th Medium-Term Management Plan, which began in April 2024, establishes as a target whicheveris higher of the two amounts calculated based on a dividend ratio of 50% and a dividend on equity (DOE) ratio of
4.0%.
As a result, we plan to increase the dividend for FY2024 from 48 yen per share to 56 yen per share (including aninterim dividend of 28 yen and an end-of-year dividend of 28 yen).

―6―

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.

―7―(2) Medium- and long-term management strategy and issues that need to be addressed
1. Reflections on the 13th Medium-Term Management Plan (FY2021 to FY2023)
The 13th Medium-Term Management Plan established the theme of laying the groundwork for further growth basedon the management foundation and business foundation that the Group has built under the 12th Medium-Term
Management Plans as the first step for realizing Vision 2030. Although performance varied from year to year due tofactors such as the number of EPC projects and the timing at which projects are completed, the trend since the 12th
Medium-term Management Plan was for orders received, net sales, and operating profit to firm as after-sales service
and other recurring-revenue model businesses have provided base revenue. As a result, cumulative consolidated
ordinary profit during the period covered by the plan totaled 36.4 billion yen, exceeding the target of 36.0 billion yen.
In addition, orders received, which totaled 521.3 billion yen, significantly exceeded the reference target of 450.0
billion yen.
2. 14th Medium-Term Management Plan (FY2024 to FY2026)
The Group launched its 14th Medium-Term Management Plan (FY2024 to FY2026) in April 2024 as the second step
towards realizing Vision 2030. The 14th Medium-Term Management Plan’s theme is to give shape to initiatives
undertaken during the 13th Medium-Term Management Plan in the areas of strengthening our managementfoundation, strengthening conventional businesses, and responding to future environmental changes and prepare toreap the benefits of those measures during the years covered by the 15th Medium-Term Management Plan and beyond.
Policies of the 14th Medium-Term Management Plan
We've contended with issues such as securing sufficient human resources to implement Vision 2030, but we took acareful look at our business environment in order to resolve such challenges during the 13th Medium-Term
Management Plan to lay a foundation for growth, including by strengthening hiring. During the 14th Medium-Term
Management Plan, we will prioritize the investment of management resources with the goals of booking orders formunicipal solid waste treatment plans (replacement and primary equipment improvement) and establishing a revenue
model that maximizes use of our installed base while formulating and implementing measures to resolve thechallenges facing us as we give shape to a growth narrative that will allow us to realize our vision during the 15th
Medium-Term Management Plan and beyond.

a. Strengthening the management foundation
To give shape to this growth narrative, it will be necessary to continue strengthening our management foundation. In
particular, we will work to do that by hiring a diverse workforce and implementing human resources development as
we look to expand the resources available to our recurring revenue model business and EPC business. In addition,
we will strive to put in place an internal environment in which we can realize further improvements in employee
motivation and engagement as well as worker-friendliness over the long term. Moreover, we will work to improve
productivity and ensure that skills can be passed down in a smooth manner through computerization and knowledge
management* in each business segment.
*Knowledge management: The process of visualizing individual employees’ knowledge and information as a data
resource that can be shared and used throughout the organization to facilitate skill transfer and human resource
development.
―8―b. Capital policy
We have established a quantitative target (ROE) based on an awareness of capital costs to deliver business growththat meets market expectations, and we will allocate management resources in an appropriate manner, including
through a new policy on shareholder returns. At the same time, we will work to balance capital efficiency
improvements with business growth while maintaining a robust financial foundation to support our EPC business andlong-term O&M business.
c. ESG initiatives
To implement our goal of realizing sustainable growth alongside customers and society through the implementationof ESG management as set forth in Vision 2030, we have identified seven key issues (Materiality) that deserve to begiven priority by the Group. The 14th Medium-Term Management Plan establishes new KPIs related to employee
engagement and customer satisfaction, and we will continue to advance initiatives to address ESG issues through ourbusiness activities.
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

We will report on specific initiatives and KPIs as well as progress towards them through our Integrated Report andother resources.
d. Financial targets
In order to achieve the goal of posting ordinary profit of 20 billion yen in FY2030 as set forth in Vision 2030, the14th Medium-Term Management Plan identifies the process of giving shape to a growth narrative as the second stepof that process and establishes a target of cumulative consolidated ordinary profit of 38 billion yen over the courseof the plan’s three years. In addition, we have established cumulative consolidated orders received of 600 billion yen
and ROE (return on equity) of 9% or greater during the fiscal year ending March 2027 as new targets and will work
hard to achieve them.

―9―(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 small and medium-size biomass power plants and the conversion of plants to non-fossil
fuels (for private-sector customers).We also expect to see growing demand in the future in our after-sales 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 forafter-sales service and in demand for operational outsourcing due to growth in the number of plants delivered by
Takuma to private-sector customers.
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 demand for biomass power plants and fuel conversions of existing coal boilers in Southeast
Asia as a result of government-led policies designed to increase power from renewable energy and progressively
eliminate fossil fuel use 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 expect demand to grow in the market for low-carbon anddecarbonized products. In addition, we expect demand for advanced, high-efficiency models and fuel conversions togrow overseas, particularly in Southeast Asia.

―10―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)
FY2022(March 31, 2023)

FY2023(March 31, 2024)

AssetsCurrent assets
Cash and deposits

65,24245,337

Notes receivable – trade
Accounts receivable – trade

3,175
33,304

3,406
29,325Contract assets
Merchandise and finished goods

24,371
839

46,247
1,004

Work in process
Raw materials and supplies

3,247
1,924

6,295
2,440

Other
Allowance for doubtful accounts

2,159
(15)

5,434
(15)

134,249

139,477

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

10,73812,464

Machinery, equipment and vehicles (net amount)
Land

3,871
2,605

3,550
2,610

Other (net amount)

1,221

953

Total property, plant and equipment

18,436

19,579540

900

Intangible assets
Investments and other assets
Investment securities

18,28024,567Long-term loans receivable
Deferred tax assets

248
4,159

218
2,967

Retirement benefit asset
Other

37
3,871

25
3,579

Allowance for doubtful accounts

(135)

(135)

Total investments and other assets

26,462

31,222

Total non-current assets
Total assets―12―

45,43951,702

179,688

191,180

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

FY2023(March 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable – trade26,61026,517

Electronically recorded obligations – operating
Short-term borrowings

14,749220

16,896753

Income taxes payable
Contract liabilities

3,362
11,0592,301
10,803

Provision for bonuses
Provision for product warranties

3,789
215

4,370
183

Provision for loss on construction contracts
Other

625
6,208

1,352
5,022

Total current liabilities

66,84068,201

266
10,980263
11,178433

535

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

11,68011,97878,52180,179

Share capital
Capital surplus

13,367
3,873

13,3673,886

Retained earnings
Treasury shares

82,045(3,916)86,960(3,827)

Total shareholders’ equity

95,370100,387

5,227

9,837

Deferred gains or losses on hedges
Foreign currency translation adjustment

48
91

20
136

Remeasurements of defined benefit plans

(138)

(40)

Total accumulated other comprehensive income

5,229

9,953

567

658

Total liabilities
Net assets
Shareholders' equity

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

Non-controlling interests
Total net assets

101,167

111,000

Liabilities and net assets

179,688

191,180―13―

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales

FY2022(April 1, 2022,
to March 31, 2023)
142,651
111,096(Unit: Millions of yen)
FY2023(April 1, 2023,
to March 31, 2024)
149,166
119,627

Gross profit

31,55429,539Selling, general and administrative expenses
Salaries and allowances

6,079

6,439

1,688
1,531

1,821
1,735

455
55

439
59

1,706
813

1,863
918

286
856

321
892

Taxes and dues
Research and development expenses

698
1,147

674
1,626

Other

2,421

2,517

Total selling, general and administrative expenses

17,741

19,30913,813

10,229Welfare 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

19

26

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

549
145

629
181

Other

236

188

Total non-operating income

950

1,024

Non-operating expenses
Interest expenses

22Commitment fees
Loss on investments in investment partnerships

28
-

28
15

Loss on disposal of non-current assets
Other

19
28

12
26

Total non-operating expenses
Ordinary profit

―14―

80

86

14,684

11,166

(Unit: Millions of yen)
FY2023(April 1, 2023,
to March 31, 2024)

FY2022(April 1, 2022,
to March 31, 2023)
Extraordinary income
Gain on sale of investment securities

195

1,848

Total extraordinary income

195

1,848

598

524

177

63
-

Extraordinary losses
New factory construction expenses
Disaster recovery cost
Loss on valuation of investment securities

776

587

Profit before income taxes

Total extraordinary losses

14,102

12,427

Income taxes – current

4,411

4,277

Income taxes – deferred

8

(723)

Total income taxes

4,420

3,554

Profit

9,682

8,873

60

118

9,621

8,754

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

Consolidated statement of comprehensive income
FY2022(April 1, 2022,
to March 31, 2023)
9,682(Unit: Millions of yen)
FY2023(April 1, 2023,
to March 31, 2024)
8,873

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

1,271
(61)

4,611
(28)

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

15
81

58
97

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income

1,306

4,739

10,98913,612

10,92564

13,478134

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―16―(3) Consolidated Statement of Cash FlowsFY2022(April 1, 2022,
to March 31, 2023)
Cash flows from operating activities
Profit before income taxes(Unit: Millions of yen)
FY2023(April 1, 2023,
to March 31, 2024)

14,102

12,427

1,136
(195)

1,797
(1,848)Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets

177
19

12

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction contracts

413
(891)

581
727

Increase (decrease) in retirement benefit liability
Interest and dividend income

306
(569)

339
(655)

Interest paid
Share of loss (profit) of entities accounted for using equity method

2
(145)

2
(181)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

23,795(1,379)(18,418)(3,728)Decrease (increase) in other current assets
Increase (decrease) in trade payables

700(10,990)(2,891)
4,520

Increase (decrease) in other current liabilities
Other, net

2,618
2,227

(1,261)
1,049

Subtotal

31,330(7,525)

619
(2)

704
(2)

Depreciation
Loss (gain) on sale of investment securities

Interest and dividends received
Interest paid
Income taxes refund (paid)

244(5,398)32,191(12,222)411(4,041)(5,808)98(5,010)
1

Purchase of intangible assets
Purchase of investment securities

(101)
(323)

(499)
(593)

Proceeds from sale of investment securities
Proceeds from collection of loans receivable

390
50

2,357
30

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
Proceeds from sale of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

―17―

(322)

(682)

(5,604)(8,438)

(Unit: Millions of yen)
FY2023(April 1, 2023,
to March 31, 2024)

FY2022(April 1, 2022,
to March 31, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
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

(80)

533
-

(1,252)(2,972)(0)(3,839)

(32)
56

(78)
4

(4,280)(3,379)16

67

Net increase (decrease) in cash and cash equivalents

22,323(23,973)

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

41,244

63,911

343-

63,91139,938―18―

5. Supplementary forecast materials(1) Consolidated earnings forecast by segment(Unit: Millions of yen)
FY2024(forecast)
Segment
Orders received

Net sales

Backlog

Domestic Environment and Energy Business

198,700

109,400

549,323

Overseas Environment and Energy Business

4,000

5,000

4,868

Package Boiler Business

18,80018,6006,315

Equipment and Systems Business

9,000

10,5009,110

230,500

143,500

569,617

(500)

(500)

(4)

230,000

143,000

569,612

Total
Adjustments
Total(2) Consolidated capital investment, depreciation, and research and development expenses forecast(Unit: Millions of yen)
FY2023(actual)FY2024(forecast)

ChangeCapital investment

3,527

1,600

(1,927)

Depreciation

1,797

2,000

202

Research and development expenses

1,629

2,200

570

―19―

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

Orders received
Municipal Solid Waste Plants (EPC)

Net sales

Backlog

19.6

33.5

113.3

57.8

45.3

245.4

Energy Plants

25.7

28.8

72.8

Water Treatment Plants, other

28.0

11.1

28.4

Adjustments

0.3

0.3

0

131.5

119.1

460.0

Municipal Solid Waste Plants (after sales service
business)

Total―20―