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 2021
(Japanese Standards) (Consolidated Basis)
May 14, 2021
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 25, 2021

Planned securities report submission dateJune 25, 2021

Planned dividend payment start dateJune 28, 2021

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 FY2020 (April 1, 2020, to March 31, 2021)(1) Consolidated results(Percentages indicate percent of change from the previous year.)Net sales
Millions of yen

Operating profit% Millions of yen% Millions of yen%

Millions of yen

%

7.1

7,529

1.1

10,300 (16.5)

7,445(15.9)

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

FY2020146,726

9.1

10,4739.1

FY2019134,454

10.3

9,600

(17.3)(Note) Comprehensive income:

FY2020FY2019Profit attributable toowners of parent

Ordinary profit
11,0288,344 million yen (up 41.9 %)5,881 million yen (down 19.7 %)Basic earnings
per share

Diluted earnings
per share

Return on equity

Yen

Yen

%

%

%

FY2020

92.73

―

8.6

6.5

7.1

FY2019

90.36

―

8.9

6.4

7.1

(Reference)

Equity in net income of affiliates

FY2020FY2019218 million yen
222 million yen(2) Consolidated financial position
Total assets

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

FY2020177,741

90,55550.7

1,109.87

FY2019163,498

85,04051.8

1,043.15(Reference)

Equity FY2020
FY201990,142 million yen
84,643 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

FY2020(1,680)(2,053)

1,903

42,957FY2019(11,732)(202)(4,350)44,753

2.

Dividend status
Annual dividend
Q1

FY2019FY2020
FY2021 (forecast)

3.

Q2

Q3

Q4

Total dividend

Total

Yen

Yen

Yen

Yen

―
―
―

13.00
18.00
18.00

―
―
―

18.00
18.00
18.00

Payout ratio(consolidated)

Ratio ofdividends to net
assets(consolidated)

Yen Millions of yen

31.00
36.00
36.00

2,536
2,923

%

%

34.3
38.8
38.5

3.0
3.3

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

137,000 (6.6)

10,400

Profit attributable toowners of parent

Ordinary profit% Millions of yen(0.7)

11,000% Millions of yen

(0.3)

7,600

Basic earnings
per share

%

Yen

0.9

93.57

○ Attachments
1. Business results ......................................................................................................................................... 2(1) Overview of results for FY2020........................................................................................................... 2(2) Future outlook ...................................................................................................................................... 4(3) Basic policy concerning profit allocation and dividends during FY2020 and FY2021 ....................... 4
2. Management policies ................................................................................................................................... 5(1) Basic policies on management ............................................................................................................. 5(2) Medium- and long-term management strategy and issues that need to be addressed .......................... 6(3) Business environment .......................................................................................................................... 7
3. Basic approach to the selection of accounting standards ............................................................................. 9
4. Consolidated Financial Statements .............................................................................................................. 9(1) Consolidated Balance Sheet ................................................................................................................. 9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .............. 11(3) Consolidated Statement of Cash Flows ................................................................................................ 14
5. Supplementary forecast materials ................................................................................................................ 16(1) Consolidated earnings forecast by segment ......................................................................................... 16(2) Consolidated capital investment, depreciation, and research and development expense forecasts ...... 16―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 FY2020
Orders received during FY2020 totaled 188,563 million yen, exceeding our target at the beginning of the year
(180,000 million yen), thanks to reliable conversion of continued robust demand centering on waste treatment plants
into orders.
Net sales rose 12,272 million yen compared to FY2019 to 146,726 million yen on steady progress in the constructionof ordered plants. As a result, the order backlog rose 41,837 million yen to 387,152 million yen.
Operating profit rose 872 million yen compared to FY2019 to 10,473 million yen thanks to increased net sales, while
ordinary profit rose 727 million yen to 11,028 million yen. Profit attributable to owners of parent rose 83 million yen
to 7,529 million yen.
While uncertainty about the future caused by the COVID-19 pandemic had some impact, for example by weighing
on capital investment appetite and spurring delays in plans, performance remained robust overall, and no serious
effects materialized.
Performance by segment during the consolidated fiscal year
(Unit: Millions of yen)

Consolidated FY2020
Segment

Ordersreceived

Net sales

OperatingprofitChange from consolidated FY2019
Backlog

Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

160,591

120,770

11,475377,143

37,437

12,647855

Overseas Environment and Energy
Business

883

1,188

(140)

427

(468)

45

61

Package Boiler Business

17,524

16,931

640

4,521

(401)

(937)

(325)

Equipment and Systems Business

10,166

8,271

876

5,348

3,376

430

492

Total

189,165

147,162

12,851

387,441

39,944

12,186

1,084

(601)

(435)

(2,378)

(288)

(210)

86

(211)

188,563

146,726

10,473

387,152

39,733

12,272872

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 FY2020, 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.)
Domestic Environment and Energy Business
During FY2020, efforts to take advantage of continued robust demand yielded four orders for new construction,
including a waste treatment plant DBO project (encompassing construction and operation); two primary equipment
improvement projects; one long-term O&M project; two biomass power plant construction projects; and one sewage
sludge incineration power plant construction project. While some contracts were canceled when the underlying plans
were halted, orders received rose 37,437 million yen compared to the previous fiscal year to 160,591 million yen.
At the same time, net sales rose 12,647 million yen to 120,770 million yen on steady progress in the construction ofordered plants. As a result, the order backlog stood at 377,143 million yen as of the end of the FY2020. About 50%of that figure is accounted for by DBO, O&M, and other long-term operation projects.
Operating profit rose 855 million yen to 11,475 million yen as sales stemming from steady progress on construction
projects and cost reductions overcame transfer of provision of loss on construction contracts for some ongoingprojects.
―2―

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 after-sales service business, for example by improving quality and strengthening profitability in our operations
business, pursuing service life extension and solution proposals, and expanding our power retail business.
Overseas Environment and Energy Business
During FY2020, orders received fell 468 million yen to 883 million yen as orders for new plants failed to materialize
due to delays in planned projects and other factors.
However, net sales remained on par with the previous year at 1,188 million yen thanks to progress made on previously
ordered bagasse-fired boiler plants, while operating profit improved 61 million yen to yield an operating loss of 140
million yen.
In addition to working to increase added value by enhancing after-sales service so that we can capture biomass power
plant orders on an ongoing basis and pursuing additional cost savings, we will continue to work to build structures
for capturing orders for Energy from Waste plants.
Package Boiler Business
Orders received during FY2020 fell 401 million yen to 17,524 million yen as factors including a decline in capital
investment appetite stemming from future uncertainty created by the COVID-19 pandemic offset continued initiatives
to tap replacement demand and secure maintenance orders. Net sales fell 937 million yen to 16,931 million yen, while
operating profit fell 325 million yen to 640 million yen.
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 systems that combine heat pumps with boilers and hot water heaters as well as wood chipfueled biomass boilers.
Equipment and Systems Business
During FY2020, orders received rose 3,376 million yen to 10,166 million yen because of an increase in orders forsemiconductor industry equipment and air purification equipment as well as robust order volume in the building
equipment business.
Reflecting the increase in orders, net sales rose 430 million yen to 8,271 million yen, while operating profit rose 492
million yen to 876 million yen.
Going forward, we will work to expand orders in the building equipment business by strengthening our sales andconstruction capabilities as well as to increase profit in our semiconductor industry equipment by strengthening
product competitiveness.
The Group has worked hard to implement its 12th Medium-Term Management Plan, which ended with FY2020. As
a result of the performance of the four businesses, cumulative consolidated ordinary profit during the three-year
period covered by the plan totaled 33.6 billion yen exceeding the target of 33.0 billion yen.
The 13th Medium-Term Management Plan (FY2021 to FY2023) has established a cumulative consolidated ordinary
profit target of 36.0 billion yen for its three-year period. The COVID-19 pandemic has not yet had a substantial
impact on the Group’s performance, and we will do our utmost to achieve the targets set forth in the Medium-Term
Management Plan. However, potential effects in the event of a worsening of the pandemic might include fewer neworders if demand slows and new orders are delayed, as well as lower sales if delivery of existing orders is delayed.

―3―

(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, the number of COVID-19 infections continues to grow worldwide, and there is an ongoinglack of clarity concerning the future direction of the economy.
During FY2021, 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 180,000 million yen for orders received.
Although we expect net sales to fall to 137,000 million yen, which is lower than FY2020, due primarily to changes
in the mix of projects in the EPC business, we expect operating profit, ordinary profit, and profit attributable toowners of parent to track their levels during FY2020 at 10,400 million yen, 11,000 million yen, and 7,600 million
yen, respectively.
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 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 FY2020 and FY2021
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 18 yen per share, as announced on May
13, 2020, which combined with the interim dividend paid in December 2020 will yield an annual dividend of 36 yen
per share.
We also plan to offer a dividend of 36 yen per share for the upcoming fiscal year (including an interim dividend of
18 yen and a year-end dividend of 18 yen).
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.

―4―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 formulated Vision 2030 as a longterm vision that would serve as new 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.

―5―(2) Medium- and long-term management strategy and issues that need to be addressed[1] Reflections on the 12th Medium-Term Management Plan (FY2018 to FY2020)
Under the 12th Medium-Term Management Plan, the final stage in the Medium- and Long-Term Vision for FY2020
that the Group launched in FY2012, we have pursued the theme of increasing our corporate capabilities in order toachieve our corporation vision and subsequently realize steady growth. In addition to working to strengthen andexpand our revenue foundation, for example by proposing solutions based on customer needs in our after-sales service
business and launching an energy plant O&M business for private-sector companies, we safeguarded our market
position by continuing to steadily turn robust demand into orders received in our EPC business. As a result of theabove initiatives, we believe that we have successfully put in place structures that will allow us to achieve the vision’s
goal of consistently earning ordinary profit of at least 10 billion yen. For example, cumulative consolidated ordinary
profit over the plan’s three years reached 33.6 billion yen, exceeding the target of 33 billion yen; the capital adequacy
ratio was 50.7% at the end of FY2020; and we have maintained a robust financial base, earning a credit rating of A(R&I).
[2] 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.

―6―

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 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 these materialities as well as progress
towards them through our CSR Report and other resources.
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.
Additionally, notwithstanding the following descriptions of the business environment for each business segment,
should the effects of the COVID-19 pandemic broaden or become more serious, our performance could be affected,
for example in the form of a decline in new orders due to contracting demand or delayed orders or a slowdown insales as a result of delays in deliveries of previously ordered projects.

―7―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.
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.

―8―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.

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Millions of yen)
FY2019(March 31, 2020)

FY2020(March 31, 2021)

AssetsCurrent assets
Cash and deposits

46,14544,422

Notes and accounts receivable – trade
Merchandise and finished goods

73,3491,002

84,222
907

Work in process
Raw materials and supplies

2,048
1,629

1,885
1,671

Other
Allowance for doubtful accounts

2,812
(19)

1,962
(16)

126,967

135,056

Buildings and structures (net amount)
Machinery, equipment and vehicles (net amount)

3,075
1,531

4,907
1,521

Land
Other (net amount)

2,497
1,316

2,501
828

Total property, plant and equipment

8,420

9,759

275

267

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

Intangible assets
Investments and other assets
Investment securities

15,62917,740Long-term loans receivable
Deferred tax assets

293
6,529

334
7,310

Retirement benefit asset
Other

53
5,437

48
7,365

Allowance for doubtful accounts

(108)

(142)

Total investments and other assets

27,83432,657

Total non-current assets
Total assets―9―36,53042,685

163,498

177,741

(Unit: Millions of yen)
FY2019(March 31, 2020)

FY2020(March 31, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade29,27630,717

Electronically recorded obligations - operating
Short-term borrowings

14,680550

13,184
5,602

Income taxes payable
Advances received

1,673
10,029

2,569
9,349

Provision for bonuses
Provision for product warranties

3,153
164

3,364
66

Provision for loss on construction contracts
Provision for loss on liquidation of subsidiaries and associates

3,401
833

3,946
1,003

Other

3,820

6,354

Total current liabilities

67,582

76,157

Non-current liabilities
Long-term borrowings

262

80

220
10,110241
10,451282

256

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

10,875

11,02978,45887,186

Share capital
Capital surplus

13,367
3,818

13,367
3,840

Retained earnings
Treasury shares

66,243(2,178)70,850(2,087)

Total shareholders’ equity

81,25085,970Total liabilities
Net assets
Shareholders' equity

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

3,764

4,461

Deferred gains or losses on hedges
Foreign currency translation adjustment

3
(2)

36
30

Remeasurements of defined benefit plans

(373)

(355)

Total accumulated other comprehensive income

3,392

4,172

397

412

Non-controlling interests
Total net assets

85,04090,555

Liabilities and net assets

163,498

177,741―10―

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

Net sales
Cost of sales

FY2019(April 1, 2019,
to March 31, 2020)
134,454
108,592(Unit: Millions of yen)
FY2020(April 1, 2020,
to March 31, 2021)
146,726
119,927

Gross profit

25,861

26,799Selling, general and administrative expenses
Salaries and allowances

5,606

5,601

1,481
1,248

1,591
1,372

433
57

440
60

1,566
855

1,679
555

211
816

240
800

Taxes and dues
Research and development expenses

615
1,151

642
1,044

Other

2,215

2,297

Total selling, general and administrative expenses

16,261

16,3269,600

10,473Welfare 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

21

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

465
222

435
218

Other

132

161

Total non-operating income

840

836

Non-operating expenses
Interest expenses

16

14

Commitment fees
Loss on disposal of non-current assets

28
53

28
148

Provision of allowance for doubtful accounts
Other

40

48
41

Total non-operating expenses
Ordinary profit

―11―

139

281

10,30011,028

(Unit: Millions of yen)
FY2020(April 1, 2020,
to March 31, 2021)

FY2019(April 1, 2019,
to March 31, 2020)
Extraordinary income
Gain on sale of investment securities

709

1,503

Total extraordinary income

709

1,503

-

882

Settlement payments
Loss on sale of investment securities

565
213

849
-

Other

91

99

Extraordinary losses
Provision for loss on liquidation of subsidiaries and associates

870

1,831

Profit before income taxes

Total extraordinary losses

10,13910,700

Income taxes - current
Income taxes - deferred

3,891(1,168)

4,269(1,122)

Total income taxes

2,722

3,146

Profit

7,417

7,553

Profit (loss) attributable to non-controlling interests

(28)

24

Profit attributable to owners of parent

7,445

7,529

―12―

Consolidated statement of comprehensive income
FY2019(April 1, 2019,
to March 31, 2020)
7,417(Unit: Millions of yen)
FY2020(April 1, 2020,
to March 31, 2021)
7,553

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(1,625)
(4)

697
32

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

4
89

43
17

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income(1,535)

791

5,881

8,344

5,906
(25)

8,309
35

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―13―(4) Consolidated Statement of Cash FlowsFY2019(April 1, 2019,
to March 31, 2020)
Cash flows from operating activities
Profit before income taxes(Unit: Millions of yen)
FY2020(April 1, 2020,
to March 31, 2021)

10,13910,700Depreciation
Loss (gain) on sale of investment securities

917
(495)

1,036
(1,503)

Loss (gain) on disposal of non-current assets
Increase (decrease) in provision for bonuses

53
183

148
210

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
Interest and dividend income

1,661

545

(165)

170

494
(485)

365
(457)

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

16
(222)

14
(218)

Decrease (increase) in trade receivables
Decrease (increase) in inventories(23,614)(311)(11,551)215

Decrease (increase) in other current assets
Increase (decrease) in trade payables

(528)
6,146

238
539

Increase (decrease) in other current liabilities
Other, net

(550)
248

2,527
(1,797)(6,514)

1,186

563
(18)

527
(13)

Income taxes refund (paid)(5,762)(3,380)Net cash provided by (used in) operating activities(11,732)(1,680)SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities
Net decrease (increase) in time deposits

(650)

(59)

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(1,520)507(2,287)45

Purchase of intangible assets
Purchase of investment securities(36)(1,253)(67)(1,428)Proceeds from sale of investment securities
Loan advances

2,621
(50)

1,870
(50)

Proceeds from collection of loans receivable
Other, net

139
38

139
(217)

Net cash provided by (used in) investing activities(202)(2,053)―14―

(Unit: Millions of yen)
FY2020(April 1, 2020,
to March 31, 2021)

FY2019(April 1, 2019,
to March 31, 2020)
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

(175)
(116)

4,950
(80)

(1,999)(2,067)(0)(2,922)

(23)
33

(20)
(22)

(4,350)

1,903

11

35

Net increase (decrease) in cash and cash equivalents(16,273)(1,795)

Cash and cash equivalents at beginning of period

61,02744,753

Cash and cash equivalents at end of period

44,75342,957―15―

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

151,500

110,000

418,643

Overseas Environment and Energy Business

3,000

500

2,927

Package Boiler Business

18,00018,0004,521

Equipment and Systems Business

8,000

9,000

4,348

180,500

137,500

430,441

(500)

(500)

(288)

180,000

137,000

430,152

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

―16―