Management Philosophy

Act with integrity and contributeto society through technology
and engineering.
The Nippon Koei Group has been building infrastructure for society in Japan and overseas since 1946.
Nippon Koei founder Yutaka Kubota proclaimed, “Tackle your problems with sincerity andthe road ahead shall be clear,” and dedicated his technical expertise and passion to building
infrastructure that is safe and reliable.
All of our employees today remain dedicated to our fundamental conviction that our business is
to contribute to society.
The world is full of people who desire better living standards.
The Nippon Koei Group is committed to acting with integrity as we help construct the infrastructure forsocieties and nations around the world.

Introduction
History of the Nippon Koei GroupBusiness Areas of Nippon Koei Group

Strategy
3
5

Message from the President

7Transition to a Holding Company Structure 12
Nippon Koei Group Value Creation
Process13

Creating Value through Nippon Koei
Group Capital and its Utilization

15

Human Resources and Technologies
that Support Our Business Model

17

Integrated Capabilities of the
Nippon Koei GroupLong-Term Management StrategyMedium-Term Management Plan
Financial Capital StrategyAt a glance

1 NIPPON KOEI GROUP INTEGRATED REPORT 2022

Sustainability/ESG

19
21
27
29
31

33
34
Society37
Corporate Governance
43
A Discussion with Outside Directors 51
Sustainability Management

Environmental Management

Review of Operations
Nippon Koei Group Business
Segments
Consulting BusinessUrban & Spatial Development
BusinessEnergy Business

55
57
59
61

Strengths of Nippon Koei Group

Society

A sustainable business model thatevolves with progress in society

Society’s needs areconstantly evolving

From its inception, Nippon Koei has been building infrastructure thathelps solve social issues. The Group evolves as the needs of societychange while continuing to expand our business and improve our
profitability.

Nippon Koei

Japan’s leading engineering
consulting firm
The Nippon Koei Group is Japan’s leading civil engineering
consulting firm* and has participated in infrastructure development
projects improving safety and security for people around the world
for more than 70 years. The Group has developed projects that havebecome foundations for the advancement of nations and people inover 160 countries and regions.

Commercialize solutions forsocial issues
Changes to meet new needs

Integrated Capabilities
We deploy the integrated capabilities of experts
in various fields to meet the increasingly
sophisticated and complex needs of our age.

Human
Resources

Technology

We lead the industry withover 1,700 professional
engineers who provide
expert consulting incountries around the world.

We carry out advanced
basic and appliedresearch at our R&D
Center, the largest in theindustry in Japan.

*Source: “Sales ranking of engineering consulting firms in Japan,” Nikkei Construction, April 20, 2022

Editorial Policy

Status of the Company
Board of Directors, Executive Officers andAudit & Supervisory Board Members
63

Organizational Structure

65
67
68

Network, Major Group Companies,
and History

69

Consolidated Financial Data
Corporate DataThe Nippon Koei Group Integrated Report is published as a comprehensive
communication tool for delivering corporate information to our stakeholders.
By publishing this report, we aim to provide readers with a deep understanding about
our corporate stance from the time of our founding to today and our efforts for further
increasing corporate value. The disclosure framework of the International Integrated
Reporting Council (IIRC) was used as a reference during the editing of this report.
Organizations Covered: Nippon Koei Co., Ltd. (the “Company”) and its consolidated
subsidiaries
Period Covered: Fiscal year ended June 30, 2022 (July 2021 to June 2022). However,some information from July 2022 onward has been included.

Forward-Looking Statements
This Integrated Report contains forward-looking statements regarding the future
performance of the Company and other matters. They are based on the judgment of theCompany’s management obtained from currently available information. Therefore, forwardlooking statements are subject to change due to a variety of factors and are not guarantees
of future performance.

NIPPON KOEI GROUP INTEGRATED REPORT 2022 2

History of the Nippon Koei Group
Inheriting the “business mindset” and “integrity” that our founder, Yutaka Kubota, valued, we have taken on the challenge ofpioneering initiatives since our founding in 1946. Over the past 75 years, our efforts to find optimal solutions to ever-changing
social issues and needs and to commercialize them have led to our current strengths. We will continue to grow with an eye on
the future.
¥29.9 billion■Consulting:■Power Engineering: ¥26.2 billion¥4.6 billion■Consulting:■Power Engineering: ¥3.4 billion

FYE March 1990

FYE March 1970

1946-1970 Establishment Phase

Power Engineering

International Consulting

Domestic Consulting

Contributed to postwar reconstruction
and the creation of basic local
infrastructure in Japan and abroad

Net sales¥8.0 billion

1970-1990 Development Phase
Developed infrastructure that
contributed to industrial growth

1961
1946
Surveying for Kasumigaura and Hachirogata reclamation Landslide survey in the Yui district

1973
New Akita Airport

1949
Basic survey for the Yakushima comprehensive development Project

1976
Arakawa Dam

Net sales¥56.1 billion

1986
Japan: Akashi-Kaikyo Bridge Anchorage
Environmental assessment for the Tokyo
Metropolitan Government’s new office building

1954
Balu Chaung Hydroelectric Power in Burma

1966
Nam Ngum Dam in Laos

1978
Asahan No. 2 Hydroelectric Power in Indonesia

1955
Da Nhim Hydroelectric Power in South Vietnam

1969
Soyang River
Dam inSouth Korea

1982
Mahaweli Irrigation Project in Sri Lanka

1947
Development of our first blocking coils (Line trap)

1960
Kawasaki Substation (150kV)

1972
Shin-Tochigi Substation (500kV)

1949
Installation of water turbine generator at Akazawa Power Station
Provision of simple automation equipment at Mukaze Power Station

1964
Transmission line (132kV) in Batang
Padang, Malaysia

1976
Water turbine generator, Tenjin Power Station (exceeding 10MW)
Jintsu River basinDam monitoring and control system

1985
Transmission & Substation
Network (230kV) in Chile
S-type tubular water turbine,
Sekiyama Power Station

1957
Water turbines at Nagashino Power Station

1968
Azumi Trunk Line and Fukushima
Trunk Line (500kV)

1983
Transition type for new control
system, Shimousa Substation

1991
Telecontrol system for large-capacity
substations, Shin-Fuji Substation

Nippon Koei’s Origins

1985
East Meskene Irrigation in Syria
Tianshengqiao Second Hydroelectric Power in China
Choluteca Basin Agricultural Development in
Honduras

Founder Yutaka Kubota

Postwar reconstruction in Japan and abroad
From the 1930s until the end of WWII in 1945, Nippon Koei’s founder Yutaka Kubota participated in engineering power generation facilities
and dams on the Korean peninsula, which contributed to the economic development of the region. After the War ended, he decided toestablish the Company to carry out his strong determination to rebuild his homeland. He brought together the repatriated specialists in civilengineering, geology, electricity, and machinery and focused their talents on reestablishing the country’s national foundation and electric
power infrastructure. He also saw the need for reconstruction in other countries destroyed by war and the 1954 project to build a power
generation in Burma (now Myanmar) marked the first step in the globalization of the Nippon Koei Group.
Origin as a “construction consultant”
Kubota used his expertise as an engineer to establish a business process that is the prototype for today's construction consulting firms:
preliminary surveys, evaluation, and proposals for infrastructure projects. He also created our business style, which involves approaching
projects with a broad perspective by gathering engineers with areas of specialty beyond electrical and civil engineering technology so a
project can contribute to resolving greater social issues. Today, engineering consulting firms are expected to fulfill the role that Yutaka Kubota
defined more than half a century ago.

3 NIPPON KOEI GROUP INTEGRATED REPORT 2022

Introduction

Strategy

Sustainability/ESG

Review of Operations■ Consulting:■ Urban & Spatial
Development:■ Energy:¥50.0 billion■ Consulting:■ Power Engineering: ¥13.2 billion

Status of the Company¥88.5 billion¥22.5 billion¥18.7 billion

FYE June 2022

FYE March 2010

Revenue

Net sales
1990-2010 Maturity Phase¥65.0 billion

Focused on renovating and maintaining
infrastructure to support comfortable lives
and to respond to environmental change

1996
Nationwide road inspection fordisaster control
Tokyo International (Haneda)
Airport Runway B¥130.6 billion

2010-2020 Innovation Phase
Contributed to the creation of societiesthat are sustainable and resilient

2007
Tsuruta Dam redevelopment

2011
Response to the Great
East Japan Earthquake
Earthquake

2014
Yanba DamBusiness Fields● Water resources

2013
Construction
Management (CMR) for
Otsuchi Town, Iwate
Prefecture

and waterways
Consulting Business2021
Integration of our Domestic
Consulting and International
Consulting businesses

1995
Sindhuli Road, Nepal

2005
Gulf of Panama purification project

1998
Hai Van Tunnel, Vietnam

2006
Asahan No. 3 hydroelectric power in Indonesia

2013
Dhaka MRT Line 6 in Bangladesh
Lach Huyen Port Infrastructure in Vietnam
2014
Thilawa Area Infrastructure
Development in Myanmar● Agricultural and ruralplanning & design● Dams and power

generation● Urban and regional

development● Transportation● Environmental

management● Management● Disaster prevention

2003
5th generation (improved
distribution) system,
Yokohama-Naka Control
Center2014
Komata River No. 4 Power Station and three otherpower stations

2011
Shin-Sogi Hydropower
Station2016
Obora No. 1 Power Station

Energy BusinessNippon Koei entered the energy business to capture
demand from the global increase in renewable energy and to
capture the demand associated with power system reforms

equipment and devices●C onstruction of2018
Launch of the Energy Business
Investment in EU energy storage projects

2016
Acquired UK-based architectural design company
BDP Holdings Limited
Launched Urban & Spatial Development Business
2017
Palace of Westminster Restoration and Renewal
Project - BDP
2022
Launched Nippon
Koei Urban Space
Co., Ltd.

Urban & Spatial
Development Business

Urban & Spatial
Development BusinessAs demand for urban development increased worldwide,
Nippon Koei entered the architecture and urban
development fields by acquiring BDP to strengthen its
Architecture Dept., which was small at the time.

●M anufacture of2021
Integration of Power Engineeringand Energy Business domains

Market Trends
Launch of the Business Segment

Market Trends
Launch of the Business Segment

Business Fields

Energy Business

2008
230kV power line/substationin Bangladesh

2009
Shin-Keiyo Substation
service tunnel

electrical facilities●M echanical andelectrical consulting●G eotechnical surveying,sale of civil engineering
measurement devices●M anufacture of safety
gear and equipment●E nergy management

Business Fields● Urban development● Infrastructure● Comprehensive

research● Architecture

NIPPON KOEI GROUP INTEGRATED REPORT 2022 4

Business Areas of Nippon Koei Group

an

an d

Regional Developm

M aa S

AI

Lo

e nt

U rb

Each of the three business segments of the Nippon Koei Group develops specialized services and products in line with our
founding mission to pursue innovation and new challenges.
gi s tic s P la n n ingConsulting Business
Infrastructure construction and maintenanceand various projects providing a foundation
for comfortable lifestyles
Engineering consultants use their specialized civilengineering and architecture technology to prepare,
examine, and propose technologies for national, local,
and city infrastructure projects to national (preliminary
government agencies) and local governments, overseas
governmental institutions, and private companies.
Consultants also conduct studies and environmental
assessments, design projects, and supervise theproject construction, management, and maintenance.
In Japan and overseas, projects can vary immensely
in terms of scale and the type of contract. In Japan,
the government conceives and generally supervises
projects with consultants mainly performing thestudies, planning, and design operations. Overseas,
consultants can carry out the overall supervision of a
project from the initial conception stages to the final
construction. In Japan, we receive 3,500 consulting
orders annually and most projects are completed
within the same fiscal year. The International
Consulting Business often engages in large-scale
projects that can last several years.
Our range of business has been growing substantiallyin recent years, particularly related to the increase indisaster restoration projects, risk management fordisaster prevention and mitigation, improving andupgrading the existing infrastructure, and for
management advisory and monitoring for public-private
partnerships (PPPs) and private finance initiatives (PFIs).
For social issues that are becoming increasingly
complex, engineering consultants must havecomprehensive abilities with higher levels of expertiseand technical capabilities incorporating various
technologies. The Nippon Koei Group is taking on anever-expanding role as a comprehensive business
partner in the development of social infrastructure.

Harbors

Bridges

Railways

Airports

Architecture

Sewage Facilities

Engineering Consulting Work Process
Planning, Studies

DesignJapan

Consulting

Overseas

Consulting

Engineering
Consulting Roles

Conception, Proposal/
Planning Feasibility
studies

5 NIPPON KOEI GROUP INTEGRATED REPORT 2022

Basic design/
Detailed design

Construction

Operation, Management

Construction (general contractor)
Construction (general contractor)
Construction supervision (consultant)

Project tender
Assistance/
Document
preparation

Support bid
evaluation andselection

Contractmanagement/
Construction
supervision

MaintenanceConsulting

Consulting

Operation
instruction/
Management
consulting

Monitoring/Countermeasureproposalsvention and Mi

tig

e rg

y mana geme

n

d iv

e rs ity C o n s erv atSustainability/ESG

Review of Operations

Status of the Company

i

n

on

En

Bio

r Pr eStrategytste

a t ioDis aIntroduction

Urban & Spatial Development BusinessMeeting urban development demand with architectural design
services worldwide

Dams
Hydroelectric power plants

Water Purification Plants

Renewable Energy

Substations
Agricultural Facilities

Power Grid System

Architecture makes up a significant percentage of the worldwide sales of
construction design companies. With demand for urban and spatial
development soaring worldwide, Nippon Koei brought the U.K.-basedarchitectural design company BDP Holdings into the Group in March 2016,
followed by the Canadian firm Quadrangle in February 2019, and U.K.-based
Pattern in July 2021. In Japan, we merged our former Urban & Spatial
Development Business, one of our business segments, with Tamano
Consultants, a Group company, to launch Nippon Koei Urban Space in July
2022. Together with the new company and Kisho Kurokawa architect &associates, we are working to develop new markets for urban development
and redevelopment, public-private partnerships, and smart cities, and tocreate urban spaces that meet the needs of a new era.

Energy BusinessHelping Japan and other countries meet electric power demand
Tunnels

The Company is involved in the construction and renovation of substations
and power plant facilities, the provision of comprehensive consulting services
related to electric power and electrical facilities in Japan and overseas, and the
manufacture of power-related equipment and devices, such as centralized
monitoring and control systems for power systems and dam management
systems for hydroelectric power plants. The operations of these divisions give
the Power Engineering Business the formidable advantage of offering services
covering every stage of development and operation from planning, studying,and designing to building facilities, manufacturing equipment, and providing
operation maintenance for electric power generation and electrical equipment
in Japan and overseas.
In addition, amidst the drastic changes occurring around the world inbusinesses related to renewable energy, we have implemented energy
management services in Europe for hydroelectric power plant operations andpower distribution networks that stably manage and control energy provided
by various power sources through storage batteries with the aim of expanding
these services to power generation, transmission, and distribution businesses
in Japan.

Roads and Transportation

Energy Storage

RiversWaterworks● Nippon Koei Services (for other companies)

Energy Business domain● Asset Maintenance Business (operations provided by Nippon Koei)

Powertransmission Power Transformation

Power generation

Facilities

Hydroelectric power plants
Plants where power is generated using solar power,
wind power, and other energy sources
Hydroelectric Power Generation Facilities(generators, dam management systems,
and turbines)

Services
Provided by
Nippon Koei

● Study and design● Equipment manufacturing andprocurement● Construction and civil engineering● Operation and maintenance● Monitoring systems● Hydroelectric power generation

Other Types of Power
Generation Facilities● Study and design● Equipment

Distribution

Storage/Electric Power Use
Energy Storage
For plants, commercial facilities,
households (consumers)

Substations
Substation Facilities(central monitoring andcontrol systems)● Study and design● Equipment

procurement
procurement● Construction and civil● Construction and civilengineeringengineering● Provision of power● Monitoring systems
transformation systems

Power Storage Facilities

Consumer Power
Facilities● Study and design● Energy conservation● Construction and civil engineering● Provision of Energy● Equipment procurement● Provision of power transformation

systems● Energy management systems● Virtual Power Plant (VPP)
business*

consulting

Management
Systems (EMS)● Energy Service
Company (ESCO)
business

NIPPON KOEI GROUP INTEGRATED REPORT 2022 6