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

Summary of Results for the Second Quarter of the Fiscal Year Ending March 2023
(Japanese Standards) (Consolidated Basis)
November 10, 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 dateNovember 10, 2022

Planned dividend payment start date

December 9, 2022

Availability of supplementary quarterly results materials:

Yes

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

1.

Consolidated results for Q2 FY2022 (April 1, 2022, to September 30, 2022)(Percentages indicate percent of change from thecorresponding quarter of the previous year.)(1) Consolidated results (cumulative)
Net sales

Operating profit

Millions of yen% Millions of yen

Quarterly profit
attributable to ownersof parent

Ordinary profit% Millions of yen%

Millions of yen%

Q2 FY2022

65,834

11.1

5,665

92.8

6,146

90.8

4,296

90.4

Q2 FY2021

59,234(15.8)

2,938(49.6)

3,222 (48.4)

2,257(52.2)(Note) Comprehensive income:Q2 FY2022
Q2 FY2021

4,658 million yen (up 91.9%)
2,427 million yen (down 50.6 %)Basic earnings per share

Diluted earnings per share

YenYenQ2 FY2022

53.63―Q2 FY2021

27.78

―

(2) Consolidated financial position
Total assets
Q2 FY2022

Equity Q2 FY2022
FY2021

Capital adequacy ratio

Millions of yen
165,905

Millions of yen
96,266%
57.7

174,535

94,35453.8

FY2021(Reference)

Net assets

95,806 million yen
93,908 million yen

2.

Dividend status
Annual dividend
Q1

Q2

Q3

Q4

TotalYen

Yen

Yen

Yen

Yen

FY2021

―

18.00

―

18.00

36.00

FY2022

―

19.00
―

19.00

38.00

FY2022 (forecast)(Note) Revisions of the most recently announced dividend forecast: Yes

3.

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

Operating profit

Millions of yen%

Millions of yen

143,000

6.6

12,300(Note) Revisions of the most recently announced earnings forecast: Yes

Profit attributable toowners of parent

Ordinary profit% Millions of yen

23.9

13,000% Millions of yen

22.1

9,100

Basic earnings
per share%

Yen

22.4

113.70○ Attachments
1.
(1)
(2)
2.
(1)
(2)

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

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

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

Q2 consolidated cumulative period of FY2022
Segment

Ordersreceived

Net sales

OperatingprofitBacklog

Change from the corresponding periodof FY2021
Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

45,17754,3786,476

424,150(32,376)

6,235

2,884

Overseas Environment and Energy
Business

1,093

612

(72)

1,939

698

152

14

Package Boiler Business

10,016

7,467

145

7,402

677

(76)

35

Equipment and Systems Business

9,062

3,572

298

11,1654,016

108(26)

Total

65,35066,0296,847

444,657(26,984)

6,420

2,908

(197)

(195)

(1,181)(35)3179(181)

65,152

65,834

5,665

444,622(26,980)

6,600

2,726

Adjustments
Total

During the Q2 consolidated cumulative period of FY2022, orders received totaled 65,152 million yen, down 26,980
million yen from the corresponding quarter of FY2021, due primarily to a contraction in the Domestic Environment
and Energy Business, while net sales rose 6,600 million yen to 65,834 million yen, due primarily to an increase in
the Domestic Environment and Energy Business.
Operating profit rose 2,726 million yen compared to the corresponding period of FY2021 to 5,665 million yen, while
ordinary profit rose 2,924 million yen to 6,146 million yen. Profit attributable to owners of parent rose 2,039 million
yen to 4,296 million yen. These results were due primarily to an increase in profits in the Domestic Environment andEnergy Business.
Reflecting a trend towards recovery from the contraction in demand caused in some segments by the COVID-19
pandemic, no serious effects materialized in the Company's business performance during the Q2 consolidated
cumulative period of FY2022.
A description of each segment’s results follows.

―2―Domestic Environment and Energy Business
During the Q2 consolidated cumulative period of FY2022, continued efforts to take advantage of robust demandyielded orders that included one primary equipment improvement project at a waste treatment plant and five newbiomass power plant construction projects, including fuel transition work. However, orders received fell 32,376
million yen to 45,177 million yen compared to the corresponding period of FY2021*. Net sales rose 6,235 million
yen to 54,378 million yen due primarily to changes in the project mix in the EPC business, while operating profit
rose 2,884 million yen to 6,476 million yen.
*Principal orders during the corresponding period of FY2021 included one DBO project (encompassing construction
and operation) and one long-term O&M project, both for waste treatment plants, and two new biomass power plant
construction projects.
＜Orders received and net sales (cumulative quarterly total)＞＜Orders received and net sales (by quarter)＞―3―

Overseas Environment and Energy Business
As During the Q2 consolidated cumulative period of FY2022, maintenance service offered by our overseas
subsidiaries accounted for a substantial share of both orders and sales, similarly to the corresponding period of
FY2021, as orders received rose 698 million yen to 1,093 million yen. At the same time, net sales of 612 million yen
and operating loss of 72 million yen, both slight improvements over the previous fiscal year.
＜Orders received and net sales (cumulative quarterly total)＞

Package Boiler Business
Thanks to a recovery trend in equipment utilization and new-equipment demand, both of which had fallen due to thepandemic, orders received during the Q2 consolidated cumulative period of FY2022 rose 677 million yen from theprevious fiscal year to 10,016 million yen. Net sales and operating profit held steady at roughly the same levels of
7,467 million yen and 145 million yen, respectively, due to factors including an increase in projects with extended
lead times.
＜Orders received and net sales (cumulative quarterly total)＞―4―

Equipment and Systems Business
Orders received the Q2 consolidated cumulative period of FY2022 rose 4,016 million yen from the previous fiscal
year to 9,062 million yen amid a robust market for semiconductor industry equipment and orders received for large
projects in the building equipment business. In addition both net sales and operating profit remained at roughly thesame levels as during the previous fiscal year at 3,572 million yen and 298 million yen, respectively.
＜Orders received and net sales (cumulative quarterly total)＞

The Group has revised its financial results forecasts for FY2022, based on the latest state of orders in the Domestic
Environment and Energy Business and progress on the construction of previously ordered plants. For details, pleasesee "(3) Explanation concerning forward-looking statements such as consolidated earnings forecasts."―5―

(2) Explanation concerning forward-looking statements such as consolidated earnings forecasts
The Group expects to see continued demand for its principal products, including replacement and service life
extensions for aging waste treatment plants, and construction of biomass power plants against a backdrop of favorable
energy policies. However, uncertainty about the future continues, including due to confusion from the situation in
Russia-Ukraine, rising prices for steel and other materials and equipment, and growing lead times.
Against this backdrop, we expect the Group’s performance during FY2022 to lag previous forecasts as full-yearorders received total 160,000 million yen based on various factors including the latest state of orders in the Domestic
Environment and Energy Plant Business, despite expected orders for waste treatment plant construction and operation
projects as well as biomass power plants and other facilities during Q3 and beyond thanks to robust demand. Turning
to profitability, we expect performance to exceed previous forecasts with operating profit of 12,300 million yen,ordinary profit of 13,000 million yen, and profit attributable to owners of parent of 9,100 million yen. This is due tosmooth progress on the construction of previously ordered plants and expected improvements in profitability thanks
to progress realizing cost savings.
In addition, we have increased the dividends of surplus (midterm dividend), which has a basis date of September 30,2022, to 19 yen per share, up 1 yen from the previous forecast of 18 yen, and we have increased our forecast for theyear-end dividend for FY2022, by 1 yen per share from the previous forecast of 18 yen per share to 19 yen per share.
As a result, the Group expects to pay an annual dividend of 38 yen per share, up 2 yen from the previous forecast of36 yen.
More information about these revisions can be found in "Notice of Revision to Financial Results Forecasts, theDividends of Surplus (Midterm Dividend), and the Dividend Forecast for Fiscal Year Ending March 31, 2023"(published November 10, 2022).
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 toan expansion in the effects of the pandemic, we will make that information available in a timely and appropriatemanner.
・ Earnings forecasts and other forward-looking statements in this document are based on information currently
available to the Company and on certain assumptions that are deemed to be reasonable. They do not constitute acommitment on the part of the Company to achieve any particular level of performance. Actual performance may
diverge significantly for a variety of reasons.

―6―2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Unit: Millions of yen)
Q4 FY2021(March 31, 2022)

Q2 FY2022(September 30, 2022)

AssetsCurrent assets
Cash and deposits

42,97961,166

Notes and accounts receivable - trade, and contract assets
Inventories

82,101
4,604

50,278
7,106

Other
Allowance for doubtful accounts

4,646(16)

3,837
(15)

134,315

122,373

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

12,346

16,109Intangible assets
Investments and other assets

298

486

Investment securities
Other

17,012
10,697

16,891
10,179Allowance for doubtful accounts

(134)

(135)

Total investments and other assets

27,57426,935

Total non-current assets
Total assets―7―40,22043,531

174,535

165,905

(Unit: Millions of yen)
Q4 FY2021(March 31, 2022)

Q2 FY2022(September 30, 2022)

Liabilities
Current liabilities
Notes and accounts payable - trade

33,07021,789

Electronically recorded obligations - operating
Short-term borrowings

16,493300

16,320260

Income taxes payable
Contract liabilities

500
8,669

1,537
9,401

Provision for bonuses
Provision for product warranties

3,375
52

2,780
194

Provision for loss on construction contracts
Other

1,516
4,724

944
4,649

Total current liabilities

68,70457,878246
10,791

253
11,073439

434

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

11,477

11,76080,181

69,639

Share capital
Capital surplus

13,367
3,872

13,367
3,873

Retained earnings
Treasury shares

75,507(2,765)78,239(3,916)

Total shareholders’ equity

89,981

91,563

Total liabilities
Net assets
Shareholders' equity

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

3,956

4,116

Deferred gains or losses on hedges
Foreign currency translation adjustment

110
79

194
113

Remeasurements of defined benefit plans

(220)

(182)

Total accumulated other comprehensive income

3,926

4,242

445

460

Non-controlling interests
Total net assets

94,35496,266

Liabilities and net assets

174,535

165,905―8―

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income
Second quarterly consolidated cumulative accounting period (Q2)
(Unit: Millions of yen)
Q2 FY2021(April 1, 2021,to September 30, 2021)

Q2 FY2022(April 1, 2022,to September 30, 2022)

Net sales

59,234

65,834

Cost of sales

48,46151,753Gross profit

10,772

14,081

Selling, general and administrative expenses

7,833

8,415

Operating profit

2,938

5,665

Interest income
Dividend income

8263

9337

Share of profit of entities accounted for using equity method
Other

4559

37145

Total non-operating income

377

528

31

Commitment fees
Loss on disposal of non-current assets

1451

1413

Other

24

18

Total non-operating expenses

9347

3,222

6,146-

28

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Insurance claim income

300-

Total extraordinary income300

28167

112

Extraordinary losses
New factory construction expenses
Total extraordinary losses

167112

Quarterly profit before income taxes

3,354

6,063

Income taxes

1,086

1,731

Quarterly profit

2,268

4,331

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

―9―

1134

2,257

4,296

Quarterly Consolidated Statement of Comprehensive Income
Second quarterly consolidated cumulative accounting period (Q2)
(Unit: Millions of yen)
Q2 FY2021(April 1, 2021,to September 30, 2021)
Quarterly profit
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Q2 FY2022(April 1, 2022,to September 30, 2022)

2,268

4,331

87

160

42483
45

Remeasurements of defined benefit plans, net of tax

4237

Total other comprehensive income

158

327

Quarterly comprehensive income

2,427

4,658

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

2,408

4,612

1846

―10―(3) Quarterly Consolidated Statement of Cash Flows(Unit: Millions of yen)
Q2 FY2021(April 1, 2021,
to September 30, 2021)

Q2 FY2022(April 1, 2022,to September 30, 2022)

Cash flows from operating activities
Quarterly profit before income taxes
Depreciation
Loss (gain) on sale 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 ofsubsidiaries and associatesIncrease (decrease) in retirement benefit liability

3,354
455

6,063
434

51

(28)
13(682)(595)(1,445)(571)(1,003)

-374

336

(272)
3(346)
1(45)(37)

29,85632,712

Decrease (increase) in inventories
Decrease (increase) in other current assets(1,996)(1,721)(2,473)(1,193)

Increase (decrease) in trade payables
Increase (decrease) in other current liabilities(3,042)(2,773)(12,512)90

Other, net

725

271

Subtotal

21,83822,163

342
(6)

396
(1)

Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables

Interest and dividends received
Interest paid
Income taxes refund (paid)(2,734)

1,239

Net cash provided by (used in) operating activities

19,44023,798Net decrease (increase) in time deposits
Purchase of property, plant and equipment

(218)
(739)

452
(2,999)Proceeds from sale of property, plant and equipment
Purchase of intangible assets

(27)

98
(50)

Purchase of investment securities
Proceeds from sale of investment securities(0)-(300)
52

Loan advances
Proceeds from collection of loans receivable

(597)
1212

Other, net

(28)

(38)

(1,600)(2,773)

Cash flows from investing activities

Net cash provided by (used in) investing activities―11―(Unit: Millions of yen)
Q2 FY2021(April 1, 2021,
to September 30, 2021)
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

Q2 FY2022(April 1, 2022,to September 30, 2022)(5,200)-(142)(0)(40)(1,252)(1,461)(23)(1,453)
(32)

(14)

(17)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(6,843)(2,795)1645

11,013

18,274

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

42,957

41,244

747

343

54,71959,863―12―3. Supplementary forecast materials(1) Consolidated earnings forecast by segment(Unit: Millions of yen)
FY2022 (forecast)
Segment
Orders received

Net sales

Backlog

Domestic Environment and Energy Business

129,500

117,500

445,351

Overseas Environment and Energy Business

3,000

1,000

3,457

Package Boiler Business

17,00017,0004,852

Equipment and Systems Business

11,000

8,000

8,676

160,500

143,500

462,337

(500)

(500)

(33)

160,000

143,000

462,304

Total
Adjustments
Total(2) Consolidated capital investment, depreciation, and research and development expenses forecast(Unit: Millions of yen)
FY2021(actual)
Capital investment
Depreciation
Research and development expenses―13―FY2022(forecast)

Change

3,844

9,000

5,155

961

1,300

338

1,006

1,600

593

4. Supplementary Materials

Domestic Environment and Energy Business Breakdown(Unit: Billions of yen)
Q2 FY2022 (actual)

Orders received
Municipal Solid Waste Plants (EPC)

Net sales

Backlog

2.5

13.3

110.6

18.6

16.4

224.0

Energy Plants

17.9

19.1

75.9

Water Treatment Plants, other

5.9

5.3

13.4

Adjustments

0.1

0.1

045.1

54.3

424.1

Municipal Solid Waste Plants (after sales servicebusiness)

Total―14―