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 2022
(Japanese Standards) (Consolidated Basis)
November 10, 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

Planned quarterly report submission dateNovember 10, 2021

Planned dividend payment start date

December 6, 2021

Availability of supplementary quarterly results materials:

None

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

1.

Consolidated results for Q2 FY2021 (April 1, 2021, to September 30, 2021)(Percentages indicate percent of change from thecorresponding quarter of the previous year.)(1) Consolidated results (cumulative)
Net sales

Operating profit

Millions of yen% Millions of yen

Quarterly profit
attributable to ownersof parent

Ordinary profit% Millions of yen%

Millions of yen%

Q2 FY2021

59,234(15.8)

2,938(49.6)

3,222 (48.4)

2,257(52.2)Q2 FY2020

70,352

21.8

5,826

56.2

6,244

4,725

51.0

(Note) Comprehensive income:Q2 FY2021
Q2 FY2020

54.2

2,427 million yen (down 50.6 %)4,911 million yen (up 160.6 %)Basic earnings per share

Diluted earnings per share

Yen

Yen

Q2 FY2021

27.78

―

Q2 FY2020

58.22

―

(2) Consolidated financial position
Total assets
Q2 FY2021

Equity Q2 FY2021
FY2020Capital adequacy ratio

Millions of yen
165,198

Millions of yen
91,745%
55.3

177,741

90,55550.7

FY2020(Reference)

Net assets

91,338 million yen
90,142 million yen

2.

Dividend status
Annual dividend
Q1

Q2

Q3

Q4

Total

Yen

Yen

Yen

Yen

Yen

FY2020

―

18.00

―

18.00

36.00

FY2021

―

18.00
―

18.00

36.00

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

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

FY2021

Operating profit%

Millions of yen

137,000 (6.6)

10,400% Millions of yen(0.7)(Note) Revisions of the most recently announced earnings forecast: None

Profit attributable toowners of parent

Ordinary profit
11,000% Millions of yen

(0.3)

7,600

Basic earnings
per share

%

Yen

0.9

93.53

○ Attachments
1.
(1)
(2)
2.
(1)
(2)

Qualitative information related to the quarterly results under review ......................................................... 2
Explanation of business results .................................................................................................................... 2
Explanation concerning forward-looking statements such as consolidated earnings forecasts ................... 5
Quarterly Consolidated Financial Statements .............................................................................................. 6
Quarterly Consolidated Balance Sheet ........................................................................................................ 6
Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income ............................................................................................................................... 8(3) Quarterly Consolidated Statement of Cash Flows ....................................................................................... 10
3. Supplementary forecast materials ................................................................................................................ 12(1) Consolidated earnings forecast by segment ................................................................................................. 12(2) Consolidated capital investment, depreciation, and research and development expenses forecast ............. 12―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 FY2021
Segment

Ordersreceived

Net sales

OperatingprofitBacklog

Change from the corresponding periodof FY2020
Ordersreceived

Net sales

OperatingprofitDomestic Environment and Energy
Business

77,554

48,142

3,591

406,554(25,968)(10,765)(2,951)

Overseas Environment and Energy
Business

395

459

(86)

364

0

(294)

(76)

Package Boiler Business

9,339

7,543

110

6,316

(576)

105

70

Equipment and Systems Business

5,045

3,463

324

6,930

(386)

49

31

Total

92,33459,6093,939

420,166(26,931)(10,903)(2,925)

(200)

(375)

(1,000)

(114)

131

(214)

37

92,133

59,2342,938

420,052(26,799)(11,118)(2,888)Adjustments
Total

During the Q2 consolidated cumulative period of FY2021, orders received fell 26,799 million yen compared to thecorresponding period of FY2020 to 92,133 million yen, and net sales fell 11,118 million yen to 59,234 million yen.
The decline was due primarily to a contraction in the Domestic Environment and Energy Business.
Operating profit fell 2,888 million yen compared to the corresponding period of FY2020 to 2,938 million yen, while
ordinary profit fell 3,022 million yen to 3,222 million yen. Profit attributable to owners of parent fell 2,468 million
yen to 2,257 million yen. These results were due primarily to a decline in profits in the Domestic Environment andEnergy Business.
While future uncertainty caused by the COVID-19 pandemic had some impact, for example by weighing on capital
investment appetite and spurring delays in plans, and while recent trends such as the rising costs of steel and othermaterials and equipment dictate caution with regard to the future direction of the economy, no serious effects
materialized in the Company's business performance during the Q2 consolidated cumulative period of FY2021.
A description of each segment’s results follows.

―2―

Domestic Environment and Energy Business
During the Q2 consolidated cumulative period of FY2021, efforts to take advantage of continued robust demandyielded orders including one DBO project (encompassing construction and operation) and one long-term O&M
project, both for waste treatment plants, and two biomass power plant construction projects. However, orders received
fell 25,968 million yen to 77,554 million yen compared to the corresponding period of FY2020. The decline reflects
the fact that we received more orders for comparatively large projects, including three new waste treatment plant
construction projects with a DBO component (encompassing construction and operation) and two primary equipment
improvement projects, in the corresponding period of FY2020. In addition, net sales fell 10,765 million yen comparedto the corresponding period of FY2020 to 48,142 million yen, and operating profit fell 2,951 million yen to 3,591
million yen. This decline was due primarily to changes in the mix of projects in the EPC business.

Overseas Environment and Energy Business
During the Q2 consolidated cumulative period of FY2021, orders received remained on par with the corresponding
period of FY2020 at 395 million yen due to an absence of orders for new plant construction. In addition, net sales
fell 294 million yen to 459 million yen compared to the corresponding period of FY2020, when we posted net sales
from a new plant construction project. The cumulative result was an operating loss of 86 million yen, increased froma loss of 10 million yen.

―3―

Package Boiler BusinessAlthough there were signs of a partial recovery in demand that had fallen due to the effects of the COVID-19
pandemic, a robust recovery failed to materialize during the Q2 consolidated cumulative period of FY2021 due tothe imposition of periodic states of emergency and the implementation of targeted measures to prevent the spread of
infection.
As a result, orders received fell 576 million yen to 9,339 million yen compared to the corresponding period of FY2020,
when we booked orders for a substantial number of large projects, even as net sales and operating profit rose slightly
to 7,543 million yen and 110 million yen, respectively, thanks to continued efforts to capture demand.

Equipment and Systems Business
During the Q2 consolidated cumulative period of FY2021, orders received fell 386 million yen compared to thecorresponding period of FY2020 to 5,045 million yen. This decline was result of factors including delays in privatesector building and equipment construction plans due to the impact of the COVID-19 pandemic. At the same time,
both net sales and operating profit rose slightly compared to the corresponding period of FY2020 to 3,463 million
yen and 324 million yen, respectively, as demand for semiconductor industry equipment firmed as a result of an
expanding market environment.

We expect to receive orders in our Domestic Environment and Energy Business for waste treatment plant construction
and operation as well as biomass power plant construction during or after Q3, and we continue to make steadyprogress in the construction of previously ordered plants. The COVID-19 pandemic has not yet had a substantial
impact on the Group’s performance, and we will continue to do our utmost to achieve our goals for FY2021,
specifically orders received of 180,000 million yen and ordinary profit of 11,000 million yen.
However, potential effects in the event of a worsening of the pandemic might include fewer new orders if demandslows and new orders are delayed, as well as lower net sales if delivery of existing orders is delayed.
―4―(2) Explanation concerning forward-looking statements such as consolidated earnings forecasts
The Group expects to see continued demand for its principal products, including replacements and service life
extensions for aging waste treatment plants, and construction of biomass power plants, against a backdrop offavorable energy policies. At the same time, progress in vaccinations and other factors have led to a downward trend
in the number of COVID-19 infections. Nonetheless, it remains unclear when the pandemic will be brought undercontrol, and there is a continued lack of clarity concerning the future direction of the economy.
Against this backdrop, the Group’s performance during FY2021 remained robust during the Q2 consolidated
cumulative period of FY2021, and FY2021 earnings forecast announced on May 14, 2021, has not been changed.
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.

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

Q2 FY2021(September 30, 2021)

AssetsCurrent assets
Cash and deposits

44,42256,410Notes and accounts receivable – trade
Notes and accounts receivable - trade, and contract assets

84,222-

55,688Inventories
Other

4,465
1,962

6,462
4,202

Allowance for doubtful accounts

(16)

(14)

135,056

122,748

Property, plant and equipment
Intangible assets

9,759
267

10,043259

Investments and other assets
Investment securities

17,74017,593

Other
Allowance for doubtful accounts

15,058(142)

14,688(135)

Total investments and other assets

32,65732,146

42,68542,449177,741

165,198

Total current assets
Non-current assets

Total non-current assets
Total assets―6―

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

Q2 FY2021(September 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade

30,71730,006

Electronically recorded obligations - operating
Short-term borrowings

13,184
5,602

11,292300

Income taxes payable
Advances received

2,569
9,349

879
-

Contract liabilities
Provision for bonuses

3,364

10,655
2,685

Provision for product warranties
Provision for loss on construction contracts

66
3,946

66
2,500

Provision for loss on liquidation of subsidiaries and associates
Other

1,003
6,354

3,594

Total current liabilities

76,157

61,981

80
241

40
216

10,451
256

10,765449

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

11,02911,471

87,18673,453

Shareholders' equity
Share capital

13,367

13,367

Capital surplus
Retained earnings

3,840
70,8503,872
71,792

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

Total shareholders’ equity

85,97087,014

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

4,461
36

4,549
40

Foreign currency translation adjustment
Remeasurements of defined benefit plans

30
(355)

47
(313)

Total accumulated other comprehensive income

4,172

4,323

412

406

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets

90,55591,745

Liabilities and net assets

177,741

165,198―7―

(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 FY2020(April 1, 2020,
to September 30, 2020)

Q2 FY2021(April 1, 2021,
to September 30, 2021)

Net sales

70,352

59,234

Cost of sales

56,81548,461Gross profit

13,537

10,772

Selling, general and administrative expenses

7,710

7,833

Operating profit

5,826

2,938

Interest income
Dividend income

11
288

8
263

Share of profit of entities accounted for using equity method
Other

60
103

45
59

Total non-operating income

464

377

Non-operating income

Non-operating expenses
Interest expenses

73Commitment fees
Loss on disposal of non-current assets

14
3

14
51

Other

20

24

Total non-operating expenses

46

93

6,244

3,222

Ordinary profit
Extraordinary income
Insurance claim income-

300

Gain on sale of investment securities

1,002

-

Total extraordinary income

1,002

300

-

167

Extraordinary losses
New factory construction expenses
Provision for loss on liquidation of subsidiaries and associates

882-

Total extraordinary losses

882

167

Quarterly profit before income taxes

6,364

3,354

Income taxes

1,626

1,086

Quarterly profit

4,738

2,268

12

11

4,725

2,257

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

Quarterly Consolidated Statement of Comprehensive Income
Second quarterly consolidated cumulative accounting period (Q2)
(Unit: Millions of yen)
Q2 FY2020(April 1, 2020,
to September 30, 2020)
Quarterly profit
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Q2 FY2021(April 1, 2021,
to September 30, 2021)

4,738

2,268

126

87

(10)
5

4
24

Remeasurements of defined benefit plans, net of tax

51

42

Total other comprehensive income

173

158

Quarterly comprehensive income

4,911

2,427

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

4,898

2,408

13

18

―9―

(3) Quarterly Consolidated Statement of Cash Flows(Unit: Millions of yen)
Q2 FY2020(April 1, 2020,
to September 30, 2020)

Q2 FY2021(April 1, 2021,
to September 30, 2021)

Cash flows from operating activities
Quarterly profit before income taxes
Depreciation

6,364
456

3,354
455

Loss (gain) on sale of investment securities
Loss (gain) on disposal of non-current assets(1,002)
3

51

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 associates
Increase (decrease) in retirement benefit liability

(552)

(682)

(593)

(1,445)624(1,003)322

374

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

(300)
7

(272)
3

(60)

(45)

5,372

29,856

Decrease (increase) in inventories
Decrease (increase) in other current assets(1,714)(1,770)(1,996)(1,721)

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

614
(257)

(3,042)(2,773)

Other, net(1,980)725

Subtotal

5,533

21,838

370
(6)

342
(6)

Income taxes refund (paid)(1,850)(2,734)

Net cash provided by (used in) operating activities

4,046

19,440(1,258)

(218)
(739)

Purchase of intangible assets
Purchase of investment securities

(28)
(739)

(27)
(0)

Proceeds from sale of investment securities
Loan advances

1,151
(30)

(597)

Proceeds from collection of loans receivable
Other, net

57
13

12
(28)

(833)

(1,600)Interest and dividends received
Interest paid

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

Net cash provided by (used in) investing activities―10―(Unit: Millions of yen)
Q2 FY2020(April 1, 2020,
to September 30, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Q2 FY2021(April 1, 2021,
to September 30, 2021)(50)(5,200)(40)(1,460)(142)(1,461)

(20)
(12)

(23)
(15)

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(1,583)(6,843)

2

16

1,631

11,013

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

44,75342,957-

747

46,38554,719

Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Other, net―11―

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

―12―