Nippon Koei Group Business Segments
Nippon Koei’s business is comprised of the following three business segments and is building vibrant societies
across the globe.
Financial results for the fiscal year ended June 30, 2022 show record highs in both sales revenue and incomes.

Consulting Business

Main Customers

National and local governments, JICA, overseas government
agencies, and private companies

In Japan, the Consulting Business provides a full range of civilengineering consultation related to infrastructure development,
maintenance, and safety for local and national government
agencies, such as the Ministry of Land, Infrastructure, Transport
and Tourism. With proven technologies informed by diverse
experience and R&D, the operation has grown into acomprehensive consulting service covering a vast array of
projects encompassing the improvement, management, andmaintenance of infrastructure supporting daily community life.
Overseas, we are developing business mainly throughJapanese government ODA projects, mainly in Asia, but also in
Africa, the Middle East, Central and South America, and other

Urban & Spatial Development BusinessNippon Koei launched the Urban & Spatial Development
Business in March 2016 when it welcomed BDP of the UK into
the Group. The aim of the launch of this business segment is toexpand business by capturing the growing needs in thearchitectural domain as urban development progresses aroundthe world and combining it with the civil engineering domain, an
area in which we excel. Through collaboration with BDP, we areworking to create urban spaces in Asia by combining civilengineering and architectural technologies.
We are also working to diversify our business fields by adding
Canada-based Quadrangle, which specializes in high-rise
construction, to our group in 2019, and UK-based Pattern, which
specializes in sports facility construction, to our group in 2021.
Against the backdrop of the increasing number of projects in

Energy Business

Main Customers

Main Customers

Private companies and local governments

Japan that need to be approached from both civil engineeringand architectural perspectives, such as urban development andredevelopment, we merged our Urban & Spatial Development
Business, one of our business segments, with Tamano
Consultants, a Group company, and then formed a newcompany, Nippon Koei Urban Space, in July 2022. By integrating
the technologies and functions of both companies, we aim toenter the market for urban infrastructure formation in Japan andoverseas, and become a comprehensive production company
with greater proposal and development capabilities than everbefore for urban and regional revitalization projects, public-private
partnerships, and smart city development, in order to work
toward the formation of sustainable cities.

Power companies, local governments, and private companies

The segment constructs and repairs substations, switchingstations, and power plants operated by power companies
constructs central monitoring and control systems to improve
operating efficiency, constructs dam control systems athydropower plants, and manufactures related equipment. The
Power Engineering Business proposes optimal solutions forelectric power companies to support electric power development
and meet electric power needs in Japan and emerging countries.
As a new initiative, we are engaged in research, development,
design, construction, management and operation support, andsystem and technology development for energy management
projects utilizing distributed energy resources in response to the

55 NIPPON KOEI GROUP INTEGRATED REPORT 2022

regions. The Nippon Koei Group is engaged in numerous
infrastructure projects in fields ranging from water resources andwaterways, energy, urban and regional development,
transportation, agricultural and rural development, environment,
and disaster prevention. The Group is active on the front lines ofsocial contribution and humanitarian aid across borders.
Examples of our activities include environmental measures tocombat global warming, developing regional transportation
infrastructure in emerging countries undergoing rapid economic
growth, and assisting in reconstruction in regions affected byconflict or natural disasters.

recent expansion of renewable energy markets and powersystem reforms in Japan and overseas. We are accumulating
business and technological know-how in Europe, where theseparation of power generation and distribution and theintroduction of renewable energies are leading the way, and areaiming to expand our business in Japan and other Asian
countries in the future. The Company is also involved in thebusiness of operating hydroelectric power plants and sale ofelectricity. We install small-scale hydroelectric power plants inexisting dams that are not used for power generation purposes togenerate clean and economical small-scale hydroelectric power.

Introduction

Strategy

Sustainability/ESG

Review of Operations

Status of the Company

FYE June 2022

Composition Ratio of Revenue

Orders and Revenue (millions of yen)

(Millions of yen)
120,000

OrdersOperating profit(Millions of yen)
10,000106,931
97,76990,000Operating Margin (%)
8,982

20

98,491
88,51080,09872,593

67.7%

Revenue

Operating Profit and Operating Margin (millions of yen/%)

15

7,500
6,126
5,457

60,000

5,000

10.1
7.5

30,000

20/6

21/6(Millions of yen)Orders

22/6

Revenue

30,00020,000

7.6

5

2,500

0

0

20/6

21,457
20,274

22,580

2000

22/6

0

Operating Margin (%)
15

2,266

1,759

18,207

11.2

1500

17.3%

21/6

Operating profit(Millions of yen)2500

18,142
17,874

10

1,588

10

9.7

1000

7.0

10,000

5

500

0

20/6

21/6

(Millions of yen)Orders19,986

22/6

Revenue
18,79920,00016,452

20/6

21/6

Operating profit(Millions of yen)

22/6

15
1,290

14,343

1000

14.4%

10

814

10,000

640
6.9

500

5
4.9

5,000

0

0

Operating Margin (%)

1500

16,621
13,991

15,000

0

3.9

20/6

21/6

22/6

0

20/6

21/6

22/6

* The Company has been conducting business in three business segments since FYE June 2022. For the Consulting Business, we combined our domestic and overseas consulting businesses and combined our former Power Engineering and Energy Business to form our current Energy Business.
* Results for the Consulting Business and Energy Business for the fiscal year ended June 30, 2020 have been combined to conform to the current segment structure, and the figures are simple totals before elimination of internal transactions.
* From the fiscal year ending June 30, 2023, Nippon Koei Urban Space and its subsidiaries will change their business segment classification from “Consulting Business” to “Urban & Spatial Development Business.”
Segment information for the fiscal year ended June 30, 2022 has been prepared based on the revised business segment classification.

0

NIPPON KOEI GROUP INTEGRATED REPORT 2022 56

Review of Operations

Consulting Business

Promoting productivity improvement through DX promotion
and service development using new technologies
For the fiscal year ended June 2022, revenue increased by approximately 10% and operating
profit increased by approximately 46% both in Japan and overseas due to favorable businessperformance. In particular, since travel restrictions due to COVID-19 have been eased overseas,
operations for several large projects have started, boosting our contract utilization rate to arecord high level. In July 2020, we integrated our Domestic Consulting Business, International
Consulting Business, and R&D Center mainly for the purpose of optimizing the allocation of
resources in line with business conditions. Currently, we continue to operate flexibly, allocating
domestic personnel to serve in active overseas operations. In addition, in order to promote theresilience of the Nippon Koei Group, we have begun to lay the groundwork for achieving ourlong-term management strategy, including acquiring technologies to expand our businessdomains and creating business alliances for new services.
Moving forward, we will continue to implement measures to improve productivity, develop newservices using new technologies, and promote business expansion utilizing our co-creation partners.

Water and sewage
Support for efficient operation andmanagement of water and sewage
facilities
Urban and regional development
Policy planning support for masterplanning of urban areas and region
development of local governments
and equipment of development
facilities
Disaster Prevention and Mitigation
Emergency response to disasters suchas earthquakes, volcano eruptions,and localized torrential downpour andplanning of disaster prevention
Dams and power generation
New dam construction,
redevelopment and extension ofservice life for existing dams

Director General ofConsulting Operations Headquarters

Market Trends (Japan)

Main Business Areas
Water resources and waterways
Flood protection, efficient water use,
and water environment improvement

Haruhiko Kanai

Transportation (roads, bridges,
airports, etc.)
Establishment, extension of service
life, efficient maintenance andmanagement, automatic operation
planning, and MaaS planning related
to traffic and transport facilities
Environmental Management
Improvement of air, water, and soil
environments and biodiversity
conservation
Maintenance and aging
countermeasures
Management planning of measures foraging infrastructure (bridges, tunnels,
embankments, water supply andsewage systems, etc.) and efficientmaintenanceManagement
Asset management, public-private
partnerships (PPP, PFI)In Japan, our Consulting Business is mainly concerned with thestudy and design of public and utility projects. Therefore, its
performance is affected by factors such as investment inconstruction and the scale of public investment. In recent years, thevolume of work has been increasing due to the growing demand fordisaster resilience and extension of infrastructure service life in theface of increasingly severe disasters. In addition, PPPs (PublicPrivate Partnerships) and PFIs (Private Finance Initiatives) are on therise, where public and private sectors collaborate to provide public
services. As a result, the roles of construction consultants are
expanding year by year.

Public works spending (initial + revised budget)
Initial(Trillions of yen)
10.0

Revised

9.0
8.0

3.2
2.5

Business Segments Strengths● No. 1 in sales in Japan in the construction consulting

industry and one of the top Japanese companies interms of sales for Japanese government ODA projects
for many years● Established strong partnerships with our clients throughour business bases in 47 prefectures in Japan and our
extensive business experience overseas, especially inemerging Asian countries● L argest number of professional engineers in the industry

with certified professional engineers in each field● Technical and comprehensive capabilities cultivatedover many years of handling business in a variety offields, and the development of advanced technologies
by utilizing those capabilities

57 NIPPON KOEI GROUP INTEGRATED REPORT 2022

7.0

1.6

1.0

1.7

1.6

6.0
5.0
4.0
3.0

6.0

6.0

6.0

6.1

6.1

6.1

2016

2017

2018

2019

2020

2021

2.0
1.0
0.0

(FY)

Introduction

Strategy

Sustainability/ESG

Market Trends (Overseas)

Review of Operations

Status of the Company

ODA budget/Total overseas consulting business orders(industry total)

Our clients include the Japan International Cooperation Agency(JICA) and other Japanese ODA implementing agencies,
international organizations, such as the World Bank and the AsianDevelopment Bank, and foreign governments. In recent years, due
to the increasing demand for infrastructure in emerging countries,
the number of projects has been increasing year by year andbecoming larger in size. In recent years, the Japanese
government's “Infrastructure Systems Overseas Expansion Strategy
2025” has set high order targets, etc., leading to consistently strong
demand. In regard to ODA loans, the ratio of projects in India and
Bangladesh has been increasing, and in terms of fields, newdevelopment of transportation, such as railroads, and urban
development, such as smart cities, have been increasing in order tocope with population growth in emerging countries and to achievea decarbonized society.

(Billions of yen)
700
600

Budget Amount

551.9

568.0

561.0

556.6

553.8

552.7

Total overseas consulting business orders

500
400
300
200

137.73123.28143.37125.64100.45

100
0

2016

2017

2018

2019

2020

100.452021 (FY)

Performance Summary for Fiscal Year Ended June 30, 2022
Orders

¥98.4 billion●O rders received increased year-on-year in the segment as a whole due to strong domestic

Revenue¥88.5 billion●R evenue increased due to strong performance both in Japan and overseas. Overseas-based

Operating Profit ¥8.9 billion

orders for government-related projects and large orders received overseas.
large project operations started, causing the contract utilization rate to rise to a record level.
● Operating profit: Increased due to higher revenue, an absence of one-time losses recorded in

the previous period, and improved profits at Group companies

Key Initiatives of the Medium-term Management Plan Building Resilience 2024
● The Nippon Koei Group is evolving into an organization capable of competing globally by integrating its former Domestic Consulting andDirectionality

International Consulting businesses as well as the Research & Development Center● Conduct business operations through proactive advances and defensive approaches to provide outstanding technology and quality to

the global market

Advancement and global expansion of disasterprevention/mitigation technologies
Key initiatives

Expansion of transportation related businesses● Improve transportation infrastructure and strengthen developmentof areas around transportation hubs

● Maintenance and upgrades of infrastructure to protect people's lives● Utilization of data that contributes to people's peace of mind

● Promote smart cities and next-generation mobility

Promotion of services that contribute to decarbonization

Full-scale expansion into the management field● Strengthen services for global warming countermeasures,

environmental management, and conservation measures

Project Information●A cquisition of management technology and development ofconcession business

Strategic business alliance with Institute for Q-shu Pioneers of Space, Inc. in the SAR satellite data businessIn December 2021, we announced a business alliance with theInstitute for Q-shu Pioneers of Space, Inc., a space venture company
created by Kyushu University.
In April 2021, we launched the Satellite Disaster Prevention
Information Service jointly with SKY Perfect JSAT Corporation and
Zenrin, Co., Ltd. as a satellite business. However, we experienced
issues including difficulties in shooting high-definition images athigh frequency of an entire affected area when large-scale,simultaneous disasters occur. To counter this, the creation of asmall SAR satellite constellation, which the Institute for Q-shu
Pioneers of Space, Inc. is working on, will enable high-definition
image data to be taken at high frequency, allowing for the early
identification of actual damage in the event of a disaster andprovision of information for efficient recovery. We will work on theconcrete verification tests according to the condition for acquiring
images that can be analyzed, and aim to develop new satellite
data services and expand the market both domestically andinternationally by combining satellite development technology fromthe Institute for Q-shu Pioneers of Space, Inc. with our businessknow-how and ideas in various fields of social infrastructure
construction.

NIPPON KOEI GROUP INTEGRATED REPORT 2022 58

Review of Operations

Urban & Spatial Development Business

Aiming for comprehensive urban and regional revitalization
through civil engineering and architecture
The mission of our Long-term Management Strategy is to operate in the capacity of acomprehensive producer of urban and regional revitalization projects in response to urban
development demand, especially in Asia, including in Japan.
Specifically, the Company will focus on urban (re)development projects, urban restructuring
projects through public-private partnerships, and waterfront area restructuring projects
associated with industrial structural transformation. The goal of the Nippon Koei Group's Urban& Spatial Development Business is to contribute to the creation of sustainable cities and regions
to solve social issues such as population decline and aging, concentration of population in
metropolitan areas, and global warming.
The Nippon Koei Group’s Urban & Spatial Development Business focuses on communities
and public lands. From the perspective of town development, Nippon Koei's strength is that it
can proceed with development not only of buildings in specific areas but also in the dynamic
field of infrastructure including water and sewage, electricity, and transportation networks.

Main Business Areas
Architecture
Architectural design, structural design, facility design, and interior
designLandscape and urban design
Redevelopment planning of districts and buildings in accordancewith development policies, and design of railway lines, urban
development, airport buildings, and station buildings during
infrastructure construction
Refurbishment of historic buildings
Repair and refurbishment of representative historic buildingsin the UK
Civil engineering and architecture
Comprehensive technical consulting service combining Nippon
Koei's civil engineering technology and BDP's architectural
technology
Urban area and smart city development
Provision of one-stop services in the fields of civil engineering,energy, and architecture including research, planning, design, andmanagement

Market Trends
The architecture field is one of the most active fields, accountingfor 25% of the sales of research and design companies worldwide.
In Asia, Africa, and Latin America, the market for buildings
integrated with transportation-related facilities such as railroads,
roads, and airports, base development integrated with peripheral
infrastructure development, and ancillary surface development andsmart cities is expanding in the urban centers and suburbs ofmetropolitan areas that will serve as receptacles for population
concentration and growth, and the growing industrial economy. In
terms of funding, the appetite for infrastructure investment by theprivate sector is increasing.
In Japan, the market is expanding for the effective use andrevitalization of the large amount of stock (buildings) that exists
nationwide, and for the consolidation and reorganization of highlysustainable bases in regional cities as their populations decline.

Ranking of 164 survey and design companies- FY2021 sales by field(Unit: 100 million USD)
200
176.3

150

Business Segments Strengths

126.4

100

● Network and customer base shared with of BDP (UK)and Quadrangle (Canada) with leading partners in the
UK and the North America area

46.1

50

architecture fields

29.9

19.2
5.6
0

re

ctu

hite

Arc

ng

turi

fac

nu
Ma

24.7
5.4

er

Pow

ter

Wa

ply

Sup

e

ast

/W

age

Sew

* Excerpt from the August 2022 Issue of ENR

59 NIPPON KOEI GROUP INTEGRATED REPORT 2022

36.0

32.4

● Our unique fusion of the civil engineering and● Advanced technologies including BDP’s BIM

Noriaki Yoshida
Director General of Urban & Spatial
Development Headquarters

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Har

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Introduction

Strategy

Sustainability/ESG

Review of Operations

Status of the Company

Performance Summary for Fiscal Year Ended June 30, 2022
Orders¥18.2 billion

Revenue¥22.5 billion

Operating Profit ¥1.5 billion● Orders received decreased year-on-year due to restrained public investment in the U.K. anda trend toward placing smaller orders.
● Revenue increased for both BDP and Quadrangle due to strong progress in on-hand orders● Operating profit decreased as a result of an increase in general and administrative expenses

due to the rebound from the impact of COVID-19 at BDP in the previous fiscal year, and an
impairment of goodwill under IFRS as a result of an increase in the DE ratio due to thebooming stock market.

Key Initiatives of the Medium-term Management Plan Building Resilience 2024
Directionality● Comprehensive production and development of urban and regional revitalization projects in Japan and overseas● Development of new markets through integrated group operations within the business segment (urban development, smart cities, etc.)

Realization of one-stop services for urban (re)development projects

Full-scale development of urban management field● Acquisition of new urban management businesses, such as PM, CM,● Acquisition of urban area (re)development projects in Japan andoverseas

Key initiatives

Creation of smart city projects with a focus on
decarbonization, safety, and security● Creation of urban spaces taking into account infectious

diseases, climate change, and decarbonization● Formation of mobility networks● Creation of people-friendly urban spaces, such as universal
design and barrier-free spaces

Project Information

and FM, which are expanding

Expansion of BDP market● Expansion of BDP's business in the North American market● Aggressive acquisition of projects in the health care sector● Acquisition of stadium projects and development of adjacentlocations● Promotion of BDP and Nippon Koei collaborations in Asia

The Launch of Nippon Koei Urban Space - Integrating civil engineering and architecture

The Company is preparing for the transition to a pure holding
company by July 2023. As part of this reorganization, on July 1,
2022, the Urban & Spatial Development Business of Nippon Koei
Co., Ltd. was transferred to Tamano Consultants Co., Ltd.
through a company split (simple absorption-type split), andNippon Koei Urban Space Co., Ltd. (Representative Director andPresident: Noriaki Yoshida) was established.
Nippon Koei Urban Space will contribute to the creation ofsustainable cities and regions by taking advantage of thetechnologies and experience accumulated by both companies in
the fields of civil engineering and architecture to solve theincreasingly complex urban issues in recent years while being
involved in the comprehensive creation of cities.

Regional Cities

Large Cities

Overseas

Urban Revitalization andHigh-level Use District Development
Human Spaces

Population Growth
Discovery/Development of
New Businesses

Local

GlobalPopulation Decline
Region-specific

Solving Social Issues in the Urban &Spatial Development Field

Regional Development
Civil
Engineering

Architecture■ Representative joint projects of NIPPON KOEI Co., Ltd. Urban & Spatial Development and Tamano Consultants Co., Ltd.

Tokyo Metropolitan Meiji Park - Park-PFI
Increasing added value through urban management initiatives

Expo 2005 Aichi Commemorative Park
Providing one-stop services from the concept to operational support stages

NIPPON KOEI GROUP INTEGRATED REPORT 2022 60

Review of Operations

Energy Business

Promoting the provision of one-stop services
in new energy markets
The Energy Business provides development and operation of hydroelectric power plants andsubstations, consulting, equipment manufacturing, and construction as services. In recent years,
we have provided these services as a one-stop service and are working to reduce the burden on
the order side and provide value that cannot be imitated by other companies in terms of speed.
Additionally, we provide energy management services using storage batteries in markets where
the introduction of renewable energy is progressing, such as Europe.
Around the world, decentralized energy resources are being introduced and businesses are
shifting to renewable energy, and a new market for power trading is being created in Japan aswell. We see business opportunities here, and, while keeping a close eye on market trends, will
establish new businesses, create a one-stop energy storage service, and conduct cross-sales incooperation with other segments as a unified group.
As a business that directly contributes to climate change countermeasures, we will actively
take on the challenge of moving into new markets while maintaining high aspirations and a broad
perspective as we solidify our foundation.

Hiroshi Yokota
Director General of Energy Headquarters

Main Business Areas

Business Segments Strengths

Manufacture of equipment and devices
Manufacture of various types of water turbines for hydroelectric
power generation, manufacture of substation control equipment,
and construction of centralized substation monitoring systems anddam management systems● One-stop services encompassing every stage from

Mechanical and electrical consulting
Comprehensive consulting services for domestic and international
electric power and mechanical and telecommunications fields,
energy engineering including EPC
Geotechnical surveying, sale of civil engineering measurement
devices
Installation, maintenance, and inspection of automatic observation
systems for slope disaster prevention, and manufacture and salesof ground measurement equipment

planning and surveying for electric power operations
and electrical equipment to engineering andconstruction as well as equipment manufacture andmaintenance in Japan and overseas. Speedy response
and reduction of the burden on the order side.
● Provides a wide range of services due to collaboration

with our engineering consulting business●M any years of experience in product delivery andconstruction for major power companies● Business bases and capital and business alliances withstartup firms in Europe, a forerunner in electric power
market liberalization, and a track record in the energy
management business

Construction of electrical facilities
Planning, investigation, design, construction, and management of
substations, power plants, and other facilities for reinforcement
and renovation
Energy solutions
Consulting service for improving the efficiency of energy use
Energy management related products
Manufacture and sale of EMS, in-house energy storage systems,
and microgrid aggregation systems
Overseas energy management
Investment in ancillary services business, etc. in Europe, New
business development and business promotion
Domestic power generation
Development of hydroelectric power facilities and sale of electricity
through the operation of eight domestic hydroelectric power plants
Domestic energy management
Renewable energy monitoring, renewable energy efficiency, andenergy conservation consulting services

61 NIPPON KOEI GROUP INTEGRATED REPORT 2022

Market Trends
The Japanese electric power market is expected to shift to a newcompetitive environment with the separation of electric power
production and distribution and the complete liberalization of power
generation, transmission, distribution, and retail. At present, we areworking to strengthen our production system and earnings
management to meet the cost reduction demands of powercompanies. Expanding demand in the global market for renewableenergy accompanying the drive for low-carbon operations anddistributed power sourcing. In line with this, it also anticipates the
expansion of new markets for ancillary services, peak arbitrage,
capacity markets, etc.

Introduction

Strategy

Sustainability/ESG

Review of Operations

Status of the Company

Performance Summary for Fiscal Year Ended June 30, 2022
Orders

¥14.3 billion

Revenue¥18.7 billion

Operating Profit¥1.2 billion● Orders received increased year-on-year due to large order acquisition, and the gradualcontribution of improvement of factory production capacity, and elimination of delays insemiconductor procurement●R evenue increased due to systematic progress in order backlog accumulation and progress in

EPC for energy storage projects in Europe● Operating profit increased compared to the previous fiscal year due to cost control in the

manufacturing sector and provision for loss on construction contracts

Key Initiatives of the Medium-term Management Plan Building Resilience 2024
Directionality● Creation of foundation for power generation and energy management business● Stabilization of manufacturing businesses by strengthening core products and developing new products, and strengthening of thestructure of the consulting and engineering businesses

Establish foundation for power generation and energy
management business● Respond to overseas needs for decarbonized electricity● Entry into the renewable energy aggregator business by utilizing

Key initiatives

the FIP scheme● Expansion of energy businesses owned and operated by the company● Construction of energy systems for local production and local
consumption, improvement of disaster prevention capabilities,
and realization of new value-added services● Stabilization of electric power systems that primarily use
renewable energy

Project Information

Strengthen manufacturing of core products and develop
new products●C ontribute to the stable supply of electricity and resilience

improvement

Provide one-stop solutions utilizing diversified and diverse
technologies● Strengthen structures of the consulting and engineeringbusinesses

Supplying 100% renewable electricity derived from our own hydroelectric power to three of our company locations
Non-Fossil
Fuel Certificate

Power
Generation
Business

Retail Electricity
Business

Renewable
Electricity
Suidoyama
Shitoki Dam
Hydropower Station Hydropower Station

Aggregator

The aggregation system was developed
in-house with know-how gained inEurope applied to the Japanese system

As part of our energy management efforts, we are promoting aplan to use 100% renewable electricity at three of our company
locations. In preparation for this plan, we are applying to have twohydroelectric power plants in Fukushima that we operate to
become part of the FIP (feed-in-premium) scheme* and are also
applying for aggregator licenses for these facilities.
The timing of the start of this project will be determined while
monitoring the status of license approval and market price trends.
Project Information

Non-Fossil
Fuel Certificate

Company Locations

Renewable
Electricity
R&D Center

Supply/Demand
Imbalance Settlement

FIP Premium

Wide-area
Organization/General
Power Distribution
Business

Head Office

Manufacturing Plant(Fukushima)

At first, we will build our own self-sufficiency model for electricity.
For the future, we are aiming to be responsible for aggregating
FIP power sources from other companies and supplying
renewable energy power sources for local production and local
consumption.
*A scheme in which a subsidy is added as a premium when electricity generated by renewable energy
companies is sold on the wholesale electricity trading market or through negotiated transactions.

Large-Scale Battery Storage Project Construction Begins in the UK and Belgium

Nippon Koei Energy Europe (NKEE), our European subsidiarylocated in the Netherlands, plays a central role in the Group'sbusiness utilizing grid-use storage batteries in Europe, where therenewable energy market is leading the way. We are currently
working on a large-scale grid storage battery project in Belgium(25MW/100MWh) and two projects in the UK (totaling
approximately 100MW/130MWh). Construction will continue until
early 2023, after which the control systems manufactured by
Nippon Koei will be used to provide grid stabilization services(ancillary services) and other services to major power companies
in each of those country.
Through each project, we will accumulate and improve ourexpertise in one-stop service-based energy management using
grid storage batteries, which we will then apply to power
generation, transmission, and distribution projects in Japan. We

will also enhance our ability to propose a variety of storage battery
solutions to expand the introduction of renewable energy in Japanand abroad, and to enhance sophistication and efficiency ofenergy use.

Ruien Power Storage Station in Belgium

NIPPON KOEI GROUP INTEGRATED REPORT 2022 62