Presentation of Financial Results
FYE June 30, 2023
Integrated Design & Engineering Holdings Co., Ltd.

September 5, 2023
Representative Director and President
Hiroaki Shinya

Agenda1. About Integrated Design & Engineering Holdings Co., Ltd.
2. FYE June 2023 Results

3. FYE June 2024 Forecast
4. Progress of the Medium-Term Management Plan
-Building Resilience 2024Review of 2nd Yearand Priority Issues for the 3rd Year

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1. About Integrated Design & Engineering
Holdings Co., Ltd.

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Reasons to Transition to a Holding Company Structure
In July 2023, the Nippon Koei Group transitioned to a holding company structure (ID&E
Group).
Integrated Design & Engineering Holdings Co., Ltd.

Management Philosophy
Act with integrity and contribute to society
through technology and engineering.

Concept Behind the Company Name
⚫ First letters of the company name in English

Integrated Design & Engineering
Promoting businessin a one-stop mannerwhere various fields
are integrated.

Symbolizes the Group’s business as acomprehensive construction consultant
and engineering company thatencompasses “civil engineering,architecture, and energy.”

Concept Behind the Logo
⚫ “I” is represented in gold while afusion of “D” and “E” are shown inultramarine, expressing an image
wherein various fields are integrated,and new value is added.
⚫ The white portion symbolizes thefree and open environment that will
drive innovation among various
fields.
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Awareness of the Business Environment and Vision
Awareness of the Business Environment

Opportunities and expectations for expanding
business areas in each segment are
increasing

VisionPromoting independent (autonomy) for each segment as well asworking together⚫

We aim to achieve sustainable growth by fostering autonomy in each of
our three businesses, while simultaneously enhancing their collective
capabilities through working together.
✓ Three businesses split into separate companies

Securing diversity
Projects are becoming larger and more
complex. Business needs that combine thethree businesses are expanding⚫

Instilling diversity within the Group, building an environment where
each organization can work together freely on an equal state.
✓ Promote matrix management✓ An organizational structure that facilitates alliances

Stronger governance and speedier decision-making
Increasing needs for technological innovationsuch as digital transformation and thecreation of added value⚫

Strengthening the governance system and speeding up decision
making✓ Adopting a company with a nominating committee, etc.
✓ Strengthening of supervisory functionality by separating supervisionand execution✓ Splitting up of major businesses and delegating authority
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Group Structure Post-Reorganization
Positioning “Consulting,” “Urban & Spatial Development,” and “Energy” as our three major
businesses, we have evolved into an organization that can quickly respond to various changes
and demands by leveraging the unique characteristics of each organizational body.
Integrated Design & Engineering Holdings Co., Ltd.

Nippon Koei Urban Space Co., Ltd.
BDP Holdings Limited

Nippon Koei Energy Solutions Co., Ltd.*

Nippon Koei Business Partners Co., Ltd.

Consulting
Business

Urban & Spatial
Development
Business

Energy Business

Group
Management

Realization of one-stop service and flexible business operations

Nippon Koei Co., Ltd.

GroupManagement

Other group companies
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Long-Term Management Plan (2030) Targets

ID&E Global Strategy 2030 — Working Together Toward A Future Without Boundaries
Revenue

250 billion yen
FYE June 2030 Targets
Revenue

Operating profit

250 billion yen

25 billion yen

Operating profit
margin

ROE

10%

15%

New Business
Expansion
202 billion yen
Revenue

156 billion yen

1st STEP
Transformation

2nd STEP
Expansion

3rd STEP
BreakthroughContinuous
Growthof Three Core
Business

Overwhelmingly No. 1 in Japan and topclass worldwide
FY20
22

FY20 FY20
24
25

FY20
27

FY20
28

FY20
30

In order to “Make the World a Better Place,” we will work to solve social issues
through business and contribute to the realization of a sustainable future
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2. FYE June 2023 Results
July 1, 2022 - June 30, 2023

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FYE June 2023 Results
Orders and revenue increased year on year, while profits decreased, and all results are
below planned targets.

Consolidated
results•

Orders increased year-on-year and came close to the planned target due to steady progress in the
Urban & Spatial Development Business and Energy Business. Revenue increased year-on-year due toincreases in all segments.

•

Revenue increased in all three segments (Consulting Business, Urban & Spatial Development
Business, and Energy Business) due to the steady progress of on-hand projects; however, it failed toachieve the planned target.

•

Operating profit fell significantly short of the plan due to the recognition of the impairment loss for the
goodwill for BDP and escalated expenses related to outsourcing, communication, and transportation.

(Million yen)

(Million yen)Orders
Revenue
Gross profit
Operating profit
Profit before tax
Profit attributable to ownersof parent

FYE June
2022
ResultsFYE June
2023
Results

YoY Comparison
Amount%Plan Comparison
Initial Plan

Amount%131,166

139,2658,099

106.2%

140,000

-734

99.5%

130,674

141,527

10,853108.3%

145,000-3,472

97.6%

40,69942,346

1,646

104.0%

9,065

6,080

-2,98467.1%

11,300-5,21953.8%

10,800

6,373-4,426

59.0%

6,579

3,093

-3,485

47.0%

6,700

-3,60646.2%

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Operating Profit Forecast and Results for FYE June 2023
Although the earnings forecast was revised downward as of the 4Q (June), the results improved
due to the impact of the exchange rate and other factors.
■Operating profit trend during FY2023■Details■Profit factor ■Loss factor(Million yen)

1

1

2
11,300(+24.6% from previous
period)2

3✓ Assumptions are that the Consulting Business will maintainhigh operating rates overseas and that profits from the sale ofshares in energy-related companies will increase profits by
24.6% year-on-year.
✓ As a result of rapid inflation in the UK, which is BDP’s mainmarket, goodwill impairment losses were recorded (-3.9 billion
yen).
✓ Various costs such as communication and outsourcing
increased than initial plan due to inflation overseas.
✓ Foreign exchange losses are expected as a result ofcontinued appreciation of the yen (-690 million yen).

3

FY2023
Initial Plan

FY2023 Q4
Plan
Downward(published 6/15)
Revision

FY2023 Q4
Increase in
ProfitFY2023Operating
Profit Results✓ In addition to an increase in sales, there were also foreignexchange gains due to exchange rate fluctuations (+380
million yen), resulting in an increase of 38.2% compared to
the revised plan.
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Profit/Loss Analysis
Profit decreased due to BDP goodwill impairment losses and an increase in expenses resulting from
■Profit factor ■Loss factor
inflation.
(Million yen)

Increase in outsourcing expenses, etc., mainly
due to weaker yen and overseas inflation(the cost ratio increased by 1.2 points)

Increase in transportation expenses, office
expenses, etc., due to inflation,
upfront investment costs for Urban & Spatial
Development business (approx. 700 million yen)

Decrease in derivative
investment profits

Net income for
FYE June 2022

Revenue

Cost of sales

SG&A

Financialprofit/loss

Profit from the sale of shares in energy-relatedcompanies (approx. 1.9 billion yen), BDP goodwill
impairment losses (approx. 3.9 billion yen)

Other profits
and losses

Tax., etc.

Net income for
FYE June2023

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Cash Flows/Balance Sheet
Cash Flows (Million yen)

Balance Sheet (Million yen)⚫

Operating cash flows increased mainly due to accelerated collection of
trade receivables and an increase in contract liabilities (advancepayment), as well as a fall in accrued consumption taxes, etc.

⚫

Net cash used in investing activities increased due to increased income
resulting from the sale of financial assets and the stocks of affiliatedcompanies.

⚫

Net cash provided by financing activities grew due to an increase inproceeds from borrowings exceeding the increase in expenditures fromrepayments.

18,000Liabilities
91,956

8,298

8,161
8,000

⚫ The liabilities increase was due to an increase in debt, and theequity increase was due to growth in retained earnings.

9,687

12,546

13,000⚫ The increase in assets was due to a rise in trade receivables
and advances paid.

1,212
Total
assets173,926

1,892

3,000

-2,000Equity81,969-2,859-7,000Liabilities
112,025
Total
assets
195,809

Equity83,784-6,949-12,000

June 2022

June 2022
Operating CF

Investment CF

June 2023

June 2023
Financial CF

Simple CF(Operating + Investment)

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Results by Business Segment (FYE June 2023)
FYE June 2022 Results(Million yen)Consulting
Business

Urban & Spatial
Development
Business

EnergyBusiness

Orders

84,717(Sales ratio)

Revenue

75,000YoY Change

FYE June 2023 Results

AmountFYE June 2023
Initial Plan%

vs. PlanAmount

%77,712 (Sales ratio)-7,00491.7%

85,000-7,28791.4%

100.0%

81,818100.0%

6,818

109.1%

81,500318

100.4%

50,95767.9%

56,540

69.1%

5,582

111.0%---

24,042

32.1%

25,277

30.9%

1,235

105.1%---

SG&A, etc.

16,07021.4%

18,678

22.8%

2,608

116.2%---

Operating profit

7,971

10.6%

6,599

8.1%

-1,372

82.8%

9,200

-2,60071.7%

Orders31,981(Sales ratio)

42,566 (Sales ratio)

10,585133.1%

40,0002,566

106.4%

Revenue

36,091100.0%

38,071100.0%

1,980

105.5%

40,000-1,92895.2%

27,10775.1%

28,02073.6%

912

103.4%

-

-

-

8,983

24.9%

10,051

26.4%

1,067

111.9%---

SG&A, etc.

6,384

17.7%

10,997

28.9%

4,612

172.3%---

Operating profit

2,599

7.2%

-946

-

-3,545-2,800-3,746-

Orders

14,343(Sales ratio)

18,827 (Sales ratio)

4,484

131.3%

16,0002,827

117.7%

Revenue

18,799100.0%

20,855100.0%

2,056

110.9%

22,500-1,644

92.7%

14,54577.4%

15,50774.4%

961

106.6%

-

-

-

4,253

22.6%

5,348

25.6%

1,094

125.7%---

SG&A, etc.

2,963

15.8%

2,373

11.4%

-589

80.1%

-

-

-

Operating profit

1,290

6.9%

2,974

14.3%

1,684

230.5%

2,400

574

123.9%

Cost of expenses
Gross profit

Cost of expenses

Gross profit

Cost of expenses
Gross profit

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Results by Business Segment: Consulting Business■Market■Orders/Revenue
Orders(Million yen)

84,682
74,46084,71775,000

RevenueJapan
81,81877,712

Overseas◼ The government has secured public works budgets tofund its national resilience-building policy and regional
revitalization, thus the company anticipates anincrease in defense-related infrastructure projects.
◼ The Japanese government’s “Infrastructure System
Overseas Promotion Strategy 2025” maps out anenhanced budget, but concerns remain regarding theimpact of inflation, exchange rate fluctuations, and theunstable international situation.

■Performance
June 2021

June 2022

June 2023

Orders■Operating profit/Operating profit margin(Million yen)

9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

7,971
7,083
9.5%

June 2021

10.6%

June 2022

Operating profit
Operating profit margin
20.0%
18.0%
6,599
16.0%
14.0%
12.0%
10.0%
8.1% 8.0%
6.0%
4.0%
2.0%
0.0%

Revenue

Operatingprofit◼ The Company secured large-scale orders overseas,such as for Indian high-speed rail. However, delays inreceiving orders for domestic projects in the first halfof the fiscal year caused orders to decline year on
year and fall short of planned target.
◼ Revenue increased year on year, reaching the target
figure, as on-hand projects in Japan and overseas
progressed according to plan.

◼ Business travel increased as various countries eased
their entry restrictions. This factor, plus the impact ofinflation, led to higher costs. As a result, operating
profit decreased year on year and below the target.

June 2023
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Results by Business Segment: Urban & Spatial Development Business■Orders/Revenue

Orders■MarketRevenue(Million yen)

42,566
36,63032,01638,07136,091
31,981

Japan,
Europe & US
Developing
countries◼ Demands for building sustainable urban
development are growing in Japan, Europe, andthe United States.
◼ Demand is strong for urban development projects,
including transportation-related facilities andperipheral infrastructure.

■Performance
OrdersJune 2021

June 2022

June 2023■Operating profit/Operating profit margin
Operating profit(Million yen)
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
-500
-1,000-1,500

Revenue

Operating profit margin
20.0%

3,487

(*2,954)
15.0%

2,599
9.5%

10.0%

7.2%

5.0%
0.0%

-2.5%
June 2021

June 2022*BDP’s operating income excluding
goodwill impairment losses-946
June 2023-5.0%

Operatingprofit◼ Orders in Japan remained steady. The strengthening of
the BDP Group’s order acquisition system and thecontribution of additional large-scale orders led to a
year-on-year rise in orders, meeting our target.
◼ Revenue increased year on year, due to firm orders inJapan and the UK that we received in the previous fiscal
year and owing to the impact of yen depreciation on the
BDP Group’s performance. Nevertheless, revenue was
below target.
◼ Operating profit was down year on year and short ofour target, due to investment in BDP (amounting toaround ¥700 million) and increases in generaladministrative expenses (domestic organizational
restructuring expenses)◼ Also, ¥4.0 billion in the impairment loss for the goodwill
for BDP in Q4.
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Results by Business Segment: Energy Business■Orders/Revenue

Orders

Revenue

25,00018,79920,00016,621
13,991

15,000■Market◼ Demand to replace aging facilities exists.
◼ The company anticipates new business opportunities
surrounding the goal of achieving carbon neutrality by
2050.
◼ The company remains alert to policy changes, owing to■Performance rising energy costs.
Japan &
Overseas

20,855
18,827

14,343

10,0005,000

Orders0June 2021

June 2022

June 2023■Operating profit/Operating profit margin

Revenue

Operating profit
Operating profit margin
3,500

30.0%

2,974

3,000

25.0%

2,500

20.0%

◼ Strong performance in the Power Construction Divisionand large private-sector orders in the Plant Division lifted
orders year on year, exceeding our target.
◼ Revenue grew year on year as a result of progress on
the large-scale renovation of power plants ordered bygovernment agencies, as well as progress of the Plant
Division’s overseas operations. However, revenue wasshort of our target due to semiconductor procurement
delays in the Manufacturing Division.

2,000

1,290

1,500

1,000

500

14.3%

814

4.9%

15.0%

10.0%

6.9%

5.0%

0

0.0%

June 2021

June 2022

June 2023

Operatingprofit◼ Although sales in the Manufacturing Division decreased(¥600 million below target), operating profit increased on
year and reached planned target due to the recording ofa gain on share sale of PT.ARKORA HYDRO, which
was an affiliated company, and a gain on investments insecurities..
16
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3. FYE June 2024 Forecast
July 1, 2023 - June 30, 2024

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FYE June 2024 Forecast
We aim to set new record highs for orders, revenue, and profits.

OrdersFYE JuneYoY Comparison
2023
Amount%Plan
139,265 155,000
15,734111.3%

Consulting Business

77,71286,0008,287

110.7%

Urban & Spatial Development Business

42,56643,000433

101.0%

Energy Business

18,82726,0007,172138.1%

Revenue

141,527

156,000

14,472110.2%

Consulting Business

81,81888,0006,181

107.6%

Urban & Spatial Development Business

38,07142,0003,928

110.3%

Energy Business

20,85525,0004,144

119.9%(Million yen)FYE June 2023
Results

Review of cost burden for each segment
As a result of reorganization and spin-offs, eachcompany’s head office business management
expenses, which were previously borne by“Other,” will now be borne by each segment.
▼FY2024 operating profit plan reference values using
conventional accounting methods(Million yen)

Reference YoY Comparison
Value Amount
%

782

1,000

217

127.9%

Operating profit

6,080

11,1005,019

182.5%

Operating profit

11,100 5,019 182.5%

Consulting Business

6,599

7,400

800

112.1%

8,068 1,469 122.3%

Urban & Spatial Development Business

-946

2,700

3,646

-

Energy Business

2,974

2,200

-774

74.0%

Consulting Business
Urban & Spatial
Development Business
Energy Business

2,276

-698

76.5%

Other

-2,546-1,200

1,346

-

Other

-2,550-4-

Profit attributable to owners of parent

3,093

7,100

4,006

229.5%

ROE

3.9%

9.0%

5.1pt

Other

3,306 4,252-

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Overview Plans for Each Segment, FYE June 2024
We are aiming to strengthen our earnings base by improving operating rates overseas and starting anenergy storage business in Europe.
Energy Business
Consulting Business(Million yen)OrdersUrban & Spatial
Development Business

Revenue(Million yen)

81,81885,00080,00088,00086,00025.0%

50,00040,00042,56638,07175,000

15.0%(*9.1%)

8.1%

8.4%

30.0%

26,00020,000

14.0%(*7.7%)

10.0%

6.4%

10,0000

0.0%

June 2023
Results

10,000

15.0%

14.3%

5,000

*Operating profit margin without cost burden revision
Orders are in response to changes in timing of domesticorders, and efforts are being strengthened to increase
orders in line with an increase in the national defense
budget.
We aim to enhance our operating profit structure byboosting overseas operational efficiency.

-6.0%

June 2023
Results◼

For revenue, we will focus on ensuring implementation ofexisting projects via outsourcing and the appropriate
division of labor.
For operating profit, we will focus on acquiring highbudget orders with high profits margins domestically andaim to increase the gross profit margin.

(**9.1%)8.8%

0June 2024
Plan*Operating profit margin without BDP’s goodwill impairment losses**Operating profit margin without cost burden revision
◼

20.0%

15,000-1.0%-10,000

June 2024
Plan

25.0%

9.0%
4.0%

-2.5%
5.0%

20,00025,00020,855
18,827(*5.1%)

50,000◼

30,000(**7.8%)55,000◼

Operating profit margin

19.0%

30,00070,00060,00043,000 42,000

Orders
Revenue

Operating profit
margin24.0%

25,00020.0%

77,71265,000(Million yen)

Revenue

Operating profit margin
90,000Orders

10.0%

5.0%

0.0%

June 2023
Results
Results

June 2024
Plan*Operating profit margin without profit from the sale of shares inaffiliate companies**Operating profit margin without cost burden revision◼

◼

For orders, we are aiming to secure prospective projects
such as large-scale energy storage EPC projects.
We expect to secure operating profit through the fullscale operation of the European business (power storage
station operation).
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4. Progress of the Medium-Term Management Plan
-Building Resilience 2024Review of 2nd Year & Priority Issues for the 3rd Year

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Points of the Medium-Term Management Plan (July 2021 to June 2024)
Boosting business through three independent domains

Resilience
policy 2Group management structure that realizes matrix
management across businesses and regionsof the ID&E Group

Resilience
policy 3

Embodying the ID&E brand and ID&E quality

Building Resilience 2024

Business axis

Enhancingresilience

Resilience
policy 1

Regional axis

Formulation of measures linked to seven Materialities
ID&E Group’s Materiality

Our Aims■Materiality related to business activities
MissionMake the world abetter place

VisionProviding uniquevalue as a company

Values

Tackle your problems withsincerity and the roadahead shall be clear

1. Infrastructure development to protect safe and secure living
2. Developing smart cities
3. Creating attractive cities
4. Challenge to decarbonization■Materiality related to management foundations
5. Enhancement of governance
6. Work environment where human rights are respected, and job
satisfaction is high
7. Human resource development and technical development

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Medium-Term Management Plan (FYE June 2023 / 2nd Year) Evaluation
Resilience policy 1:
Boosting business through three
independent domains✓ Promote digital transformation-related business in the Consulting Business (AI inspection &diagnosis system, utilization of BIM/CIM)✓ Several issues remain regarding strengthening the production system of the Energy
Business manufacturing division

Materiality 1
Infrastructure development toprotect safe and secure living

Consulting

FY2023Results/
Evaluation

🌤◼ Expanded dam restoration/new
dam projects◼ Utilized DX technology, such as
creating an AI inspection anddiagnosis system for local
governments

Energy☁◼ Sales down due to longer delivery
times for manufacturing divisionmaterials, production capacity still
stabilizing

Materiality 2
Development of smart city

Consulting🌤◼ Improved PM tools for railway
projects◼ Promoted the utilization of
BIM/CIM

Urban
◼
◼

🌤

Orders for development ofrailway stations overseas areprogressing.
Formation of collaborative BDP
projects in Asia is a challenge

Materiality 3
Creation of attractive cities

Urban
◼

◼

🌤

Although progress was madewith projects demonstrating
comprehensive abilities (JFEcoastal area land use conversion
project), orders in the Urban &Spatial Development field were
not achieved
Future challenge to further
strengthen and utilizing networks
of private companies

Consulting🌤◼ Entered urban development
partnership with local
governments

Materiality 4
Challenge to decarbonization

Energy🌤◼ Received orders for projects inJapan using energy management
technology (ENEOS energy sites,
etc.)◼ Belgian energy storage project
operation started◼ Delayed entry into supply anddemand adjustment market(entered in July 2023)

Organization
Strategy🌤◼ TCFD commitment that supports

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Medium-Term Management Plan (FYE June 2023 / 2nd Year) Evaluation
Resilience policy 2:Group management structure that realizes matrix
management across businesses and regions
Resilience policy 3:
Embodying the ID&E brand and ID&E quality

Materiality 5
Strengthening corporate governance

Organization
Strategy

FY2023Results/
Evaluation☀◼ Holding company, operating company, andmanagement company began operation◼ Introduced new system for monitoring
investment projects◼ Sustainability Promotion Council establishedunder the HD organization

Sales
Strategy✓ Holding company, operating company, and management company began
operation✓ Strengthened and expanded regional management system, full-scale operationof matrix management started✓ BIM internal qualification system started, preparation for NKG (ID&E)
Global Academy progressing
Materiality 6
A rewarding work environment where human rights
are respected

HR/Technology
Strategy🌤◼ Updated work from home guidelines andreviewed balance for working at the office◼ Certified as a “White 500” Outstanding Healthand Productivity Management Organization for
the 5th consecutive year
◼ Information security committee establishedunder the HD system

Materiality 7
Development of human resources andtechnology

HR/Technology
Strategy☀◼ BIM in-house qualification system started◼ Formulated company-wide DX vision,
holding regular DX briefing sessions◼ Received orders for 3D model-related workin the field of disaster prevention, smart city
projects

🌤◼ Rebuilt the regional management
system, appointed regional managers
from each major company
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FYE June 2024 Resilience Policy 1: Strengthening Profitability of the Three Businesses
Consulting Business FY2024 Focus Measures⚫ Increasing share in each field⚫ Business management with an awarenessof efficiency regarding operating rates, etc.
⚫ Thorough risk and quality management
Consulting Business Topics◼ Ukraine reconstruction support operations
Consulting

Urban & Spatial
Development

Ukrainian officials and ID&E staffs inspecting agricultural facilities in Ishinomaki, Miyagi
Prefecture, Japan

Energy✓ We were among the first private companies to open a reconstructionrelated department (Ukraine Recovery Office in April 2023, Warsaw Officein July 2023).
✓ Received orders for reconstruction-related work from JICA and the METI
(4 projects in total), including one to formulate plans for recovery andreconstruction in multiple sectors✓ We are utilizing our business track record in Ukraine pre-invasion,
experience in post-war reconstruction work, and comprehensive abilities
to contribute to the country’s reconstruction and aging facilities

Meeting between BDP and the Ukraine Recovery Office

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FYE June 2024 Resilience Policy 1: Strengthening Profitability of the Three Businesses
Urban & Spatial Development Business FY2024 Focus Measures⚫ Establishing a production system, including securing personnel andstrengthening quality control⚫ Evolving segment management through collaboration with Group
companies⚫ Developing new customers and business both in Japan and overseas

Urban & Spatial Development Business Topics

Harbor terminal◼ Mombasa Special Economic Zone Development Project in Kenya
Consulting

Urban & Spatial
Development✓

A project bringing together experts from various fields among ID&E through a joint
venture between NK, NK Urban, and three other companies✓

NK Urban was involved in the development plan from the master planning stage,
detailed design, responsible for design, construction planning, and cost estimation forthe special economic zone main road and related facilities, which is also the harbor
access route✓

Contributing to environmental improvement and economic development for theinternational community by ensuring safe and smooth logistics and building highquality urban infrastructure

Main road

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25

FYE June 2024 Resilience Policy 1: Strengthening Profitability of the Three Businesses
Urban & Spatial Development Business FY2024 Focus Measures⚫ Establishing a production system, including securing personnel andstrengthening quality control⚫ Evolving segment management through collaboration with Group
companies⚫ Developing new customers and business both in Japan and overseas

Urban & Spatial Development Business Topics◼ Growth strategy for BDP (e.g., medial sector)
Christie Paterson cancer research centre, UK

Urban & Spatial
Development✓

BDP is focusing on expanding business in the fields of medical, sports, andtransportation✓

Secure capacity through the diversification of operating loads and strengthen
cooperative relationships across the Group with an eye on expanding the international
scale of sector strategies✓

We scrutinize contract terms with customers, monitor cash flow, and evaluate thecollectability of large accounts when receiving orders. Efforts are also being promoted
to link construction costs and order amounts as much as possible, such as by adding
new contract conditions to accommodate inflation
National Paediatric Hospital, Ireland
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26

FYE June 2024 Resilience Policy 1: Strengthening Profitability of the Three Businesses
Energy Business FY2024 Focus Measures⚫ Full-scale development of energy management business⚫ Rebuild the manufacturing division's production organization in the earlystages.
⚫ System construction and HR development for electromechanicalconsulting/engineering departments
Energy Business Topics◼ Battery-based energy storage system in Ruien started operating
Energy✓✓Battery-based energy storage system in Ruien, Belgium

For the European energy storage business, the battery-based energy storage system
in Ruien began operation in March 2023
Expected to begin operation for a UK electricity storage project during this fiscal year

◼ NKRE100 demonstration started
Energy✓✓Two hydroelectric power plants operated by the ID&E Group were converted to FIP
system, and a demonstration was started to convert all the used electricity at 3 Groupsites to renewable energy
Moving forward, we will provide services such as aggregation of other companies’ FIP
power sources, supply and demand management, and power trading*FIP: Feed-in Premium. Unlike the FIT system, this system promotes the introduction of renewable energy by adding a certain premium (subsidy) tothe electricity sales price on the premise that the electricity is sold on the wholesale market.

The Shitoki Dam Hydropower Station (operated by Koei Energy) supplies
power to 3 locations, including theCopyrighthead
officeⒸ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

27

FYE June 2024 Resilience Policy 2: Building and Implementing a System for Promoting
Sustainability Management◼ We will promote sustainability management throughout the Group and sustainability activities in both business activities andcorporate management.
◼ We support TCFD recommendations and gradually disclose information regarding our efforts to combat climate change.

▼Sustainability promotion system

Practicing
sustainability
management▼Plan schedule

Sustainability Promotion Council (HD) Chairperson: President
FY2026•

Established new dedicatedSecretariat:
department
Sustainability Promotion Office
Major Group Companies
Sustainability
Promotion Council

Group Companies

People in charge appointed
at each Group company fromthis fiscal year•

(Within Nippon Koei Business
Partners)

Promoting sustainability management
together with representatives fromeach Group company, focused on the
Sustainability Promotion Office

FY2025•Disseminate and spread to all
Group companies
Strengthen informationcollection/aggregation/dissemination systems, and related
implementation systems

Expand the level and scope of TCFD disclosure
with consideration for ISSB (International
Sustainability Standards Board) disclosure

FY2024•••

Gradual disclosure of non-financial information related to TCFD and
TNFD
Decide on the vision as a group (formulate policies and guidelines)
Implement human rights due diligence within the Group

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

28

FYE June 2024 Resilience Policy 3: HR Development/Talent Management◼ We will establish a platform “ID&E Global Academy” in FYE June 2024 for all ID&E members to work together, collaborate,
learn, and share knowledge and experiences.

HR development issues corresponding to long-term
management strategies(1) Global HR development• Personnel not tied to a country or company, who areable to carry out business outside their home country

Building a platform with 4 functions

Function A: TalentManagement system

Function B: Education andTraining
OJT

Visualizationof evaluations(2) Management HR development
Databases• Personnel who can co-create with stakeholders from allover the world and promote business transcending
borders

ID&E
Group
staff

Knowledge
management
HRdevelopment

Training(3) Digital transformation HR development• Personnel with the skills and mindset necessary to
promote and implement digital transformation, and who
can lead business transformation

Studying
abroadFunction C: Networking
with External Organizations

Exchanges
with other
New business companies
creation

Function D: Corporate
University

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

29

Financial Strategic Goals Related to the Management Base
Aiming to improve corporate value, we have set capital efficiency and shareholder return targets
and regularly implement countermeasures.
Medium-Term Management Plan
Investment

Investment/Capital Strategy

Growth investment(including M&A)

Approx. 16
billion yen✓ A total of 8.4 billion yen was invested during the medium-term plan
(FY2022-2023).
✓ Review investment amounts from the initial plan and make investments
after examining profitability and payback periods carefully.

9.0%✓ Improve business profits by improving the profit structure and expanding
business in new areas such as energy.

3-year total

Capital efficiency

ROE

Optimal capital
structure

Capital adequacy ratio

Approx. 40%✓ Utilize interest-bearing debt flexibly and efficiently while ensuring a soundfinancial position.

Dividend payout ratio

Approx. 30%✓ Continue to provide stable dividends and enhance shareholder returns
commensurate with profit levels.

Total return ratio(FY2021-2023 3-year
average)

Shareholder
returns

Crossshareholdings/Net
asset ratio
Asset efficiency

35.3%

As of the end of FY2023

3.0%✓ Carry out share buybacks/paybacks depending on the situation in order toachieve an appropriate total return ratio.
✓ Promoted the sale of mutually held shares during FY2023, with a sales
amount of approx. 1.8 billion yen.
Consider the optimal allocation of assets.

Asset portfolio
reorganization✓ Examine the usage status of assets held by the Group and consider replacing them with assets directly
linked to business.
(Planning for an equivalent of approx. 5 billion yen over the next two years)

Promoting efficient
capital management✓ Aim to improve capital efficiency by increasing the speed for collecting accounts receivable.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

30

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

31

Appendix

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

32

Corporate Profile (As of June 30, 2023)◼Corporate name Integrated Design & Engineering Holdings Co., Ltd.

◼Established

July 3, 2023

◼Capital¥7,522 million *As of August 2023

◼Staff numbers

6,335 [consolidated]◼ Founder: Yutaka Kubota (1890–1986)
Before WWII, Yutaka Kubota was engaged in the development ofhydropower resources (Sup'ung Dam 700 MW) in the Korean
Peninsula, one of the largest projects at the time.

◼Subsidiaries numbers 84

After the war, in a bid to work toward the restoration of Japan andreconstruction of countries damaged by the war, he founded theCompany at the age of 56.

◼Institutional design Company with a nominating committee, etc.

◼Stock market: TSE Prime Market (Sec. code: 9161)

Known as the “Father of Overseas Engineering Cooperation,” he wasawarded the Grand Cordon of the Order of the Rising Sun in 1985.
He directed projects around the world until he was 90 years old andcontributed to development in developing countries.

Net sales by region (FYE June 30, 2023)

Consolidated revenue and operating profit (million yen)
Revenue
Revenue

0%
Japan

3%
7%

Asia

150,000

117,859
108,589 112,214
101,338 106,023

Europe, Middle East

14%100,000

Americas79,193Sub-Saharan Africa

19%

81,83950,000

4,256

4,502

30,00020,00081,86557%

Other130,674

Operating profit
Operatingprofit156,000
141,527

4,723

5,464

6,561

5,110

7,128
4,590

11,100

9,065
6,080

10,00000June 2014 June 2015 June 2016 June 2017 June 2018 June 2019 June 2020 June 2021 June 2022 June 2023 June 2024
(Plan)(Plan)
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

33

Segment
Consulting Business

Urban & Spatial Development Business

Energy BusinessWith expertise in civil engineering and otherprofessional technologies, we engage in the
consulting business, such as planning and design
associated with the development and maintenanceof infrastructure and safety measures, for the state,
local governments, overseas government
institutions, private firms and others. In response toincreasingly complex social issues, construction
consultants are required more then ever todemonstrate their high level of expertise, technicalcapabilities, and comprehensive abilities. Nippon
Koei supports social infrastructure by undertaking
various roles as a comprehensive partner tobusiness operators.

One of the growing areas that account for a large
percentage of the sales of the world’s construction
companies is architecture. With a view to pursuingbusiness development by integrating architecture
and civil engineering in response to the massive
demand for urban development in many locations
around the world, the Company made BDP, a UKbased architectural design company, a subsidiaryin March 2016 and made Quadrangle, a Canadian
firm, a subsidiary in February 2019. By
incorporating the architectural know-how of both
firms, we are engaging to create urban & spatial
development that accommodates the needs of the
new era.

We provide services for power and electricfacilities in Japan and abroad in all phases fromplanning and research to design, construction,
manufacturing of equipment and maintenance.
In addition, the world is advancing toward
decarbonization, and the renewable energyrelated businesses are going through majorchanges. Accordingly, we are focusing onservices for electric power distribution networks tostably manage and control energy provided fromvarious power sources with the use of battery
storage as well as on virtual power plant (VPP)related businesses.

*Effective FYE June 2022, we are managing our businesses under a three-segment structure consisting of the “Consulting Business” formed by integrating the conventionaldomestic consulting and international consulting businesses, the “Energy Business” encompassing the power engineering and energy businesses, and the “Urban & Spatial
Development Business.”
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

34

Strengths of the ID&E Group(1) Sustainable business model grows with society(Win-win relationship between society & Nippon Koei)(2) Japan’s leading engineering consulting firm
(Business domains, technologies, and human resources)

Transforming to meet market demands

Comprehensive Capable of solving sophisticated &complex issues
strength

Commercialize solutions to social problems

Human
Resources

Largest number of professional
engineers in industry

Technology

In-house R&D facilities and patents

Consolidated net sales

Business over

Orders over¥141.5 billion

160 countries

9,000 per year

85

1,743

Patents

Professional engineers*As of June 2023

Coping with changing times, achieving sustainable business expansion and profitability growth.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

35

Position in Industry
Nippon Koei is Japan’s leading civil engineering consultant.
Sales (Million yen/Non-consolidated)
Ranking

Corporate name

Engineering consultant
division

Corporate Total

1

Nippon Koei

61,05880,796

2

Pacific Consultants Co., Ltd.

51,21854,8083

CTI Engineering Co., Ltd.

48,69651,3594

Oriental Consultants Co., Ltd.

30,43830,525

5

Oriental Consultants Global Co., Ltd.

28,88428,884

6

Eight-Japan Engineering Consultants Inc.

23,641

25,9407

Yachiyo Engineering Co., Ltd.

23,32923,9758

Idea Consultants, Inc.

21,52122,065

9

Nihon Suido Consultants Co., Ltd.

19,652

19,81410

Chodai Co., Ltd.

18,836

20,52724

Nippon Koei Urban Space Co.,Ltd. (Integrated with Tamano Consultants
Co., Ltd. in July 2022)

11,801

13,588*Source: Nikkei Construction, April 20, 2023, edition. Ranking by engineering consultant division sales (according to published financial results)
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

362030 Vision
By working together with various internal and external partners, we will pursue wisdom and integrate
wisdom with technological innovation to provide new values in an aim to become a corporate group
FYE June 2030
that contributes to realizing a society in which people can feel enriched.
(billion-yen)
FYE June 2014 to FYE June
2020
(Japanese GAAP)■ Urban & Spatial Development■ Energy■ Power Engineering■ International Consulting■ Domestic Consulting-- Operating profit margin

New Medium-termManagement PlanFYE June 2021 to FYE June
2030
(IFRS)■ Urban & Spatial Development■ Energy■ Consulting-- Operating profit margin

Expand existing businesses(Consulting, Power Engineering)
Establish/deploy new businesses(Urban & Spatial Development, Energy)

Transformation
1st STEP
Building Resilience2024
FYE June 2021
Results(IFRS)

Revenue: 117.8 billion yen
Operating profit margin: 6%
ROE: 6.7%

Set firm ground for working
together in creating asustainable future throughimplementing three resilience
policies

Expansion

2nd STEP
Accelerate expansion into
new businesses and newmarkets

Target(IFRS)Breakthrough
Revenue: 250 billion yen
3rd STEP Operating profit margin: 10%
ROE: 15%
Build the foundation forbecoming a 100-yearcompany

1,980

1,550

818

9%
7%
5.5%

Previous Long-term Management Strategy

NKG Global Strategy 2030 — Working Together Toward A Future Without Boundaries
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

37

Materiality Related to Business Activities and Corresponding SDGs
Link business activities with materiality, identify what the ID&E Group can do about common
issues in the world and contribute to achieving the sustainable development goals (SDGs) whiledriving these initiatives to also increase corporate value of the Company.
Materiality
Development of
infrastructure to protect
safe living
Development of
infrastructure where all
people can freely
interact and play anactive role
Creation of attractive
cities where a diversityof people and industries
are concentrated
Conservation of the
global environment byachieving adecarbonized society

Key relevant SDGs

Examples of initiatives for each materiality••

Develop high-quality infrastructure in a wide range of areas.
Provide services for preventing/mitigating disasters in terms of both
hardware (tangible elements such as facilities and equipment) andsoftware (intangible elements such as human resources andtechnology).

•

Realize a mobility society by putting in place transportation sites,
including airports and railways, and networks.
Develop electric power infrastructure in overseas regions lacking
power sources.

••

Develop a smart city by promoting working together among
Consulting, Urban & Spatial Development and Energy.

••

Provide consulting services to counter climate change.
Expand the renewable energy business in Japan and abroad.

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

38

Materiality Related to Management Base and Corresponding SDGs

Link business activities with materiality, identify what the Nippon Koei Group can do about common issues in theworld and contribute to achieving the sustainable development goals (SDGs) while driving these initiatives toalso increase corporate value of the Company.

Materiality

Key relevant SDGs

Examples of initiatives for each materiality

Strengthening
corporate
governance••

Review institutional design.
Reinforce compliance activities.

A rewarding work
environment
where humanrights arerespected•

Further promote well-being management.

•

Develop human resources for manifesting the NKG brandthrough the NKG Global Academy.
Create new added value by utilizing DX.

Development of
human resources
and technology•

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

39

Consulting Business: Market Trends and Operating Results
Public Works Expenditures (Trillion yen)

ID&E(Nippon Koei) Consulting Business: Operating Results (Million yen)
120,000

10.0

当初
Initial

1.0
1.0

3.2
3.2

2.5
2.5

1.6
1.6

30,000
受注高
Orders

補正
Revision

106,9312.0
2.0

97,76989,838

5.0

6.1
6.1

6.0
6.0

6.1
6.1

6.1
6.1

98,49188,00086,00088,51090,000
6.0
6.0

売上収益
Sales
revenue

Operating
営業利益
profit75,4846.1
6.1

75,245

81,33774,52181,81880,09820,00077,712

72,59368,0070.0
FY20172017年度FY20182018年度FY20192019年度FY20202020年度FY20212021年度FY2022
2022年度（案）60,000Initial ODA Budget in the General Account (billion yen)
5,800
5,680
5,600

5,519

5,527

5,538

5,566

10,000

8,982

5,612

5,610

7,981
6,599
5,831

5,185

5,400

7,400

6,928

30,000

5,457

5,200
0

5,000
FY20162016年度FY20172017年度FY20182018年度FY20192019年度FY20202020年度FY20212021年度FY2022
2022年度

0
FYE
17/6
17/6

FYE
18/6
18/6

FYE
19/6
19/6

FYE
20/6
20/6

FYE
21/6
21/6

FYE
22/6
22/6

FYE
23/6
23/6

FYE
24/6
24/6
（計画）
(Plan)*Figures showing operating results for FYE 16/6 through FYE 20/6 are simple aggregations of the figures for Domestic Consulting and International Consulting Businesses before intercompany
eliminations.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.
*Operating results for years up to FYE 20/6 are based on Japanese GAAP while those for FYE 21/6 and onward are based on the IFRS.

40

Urban & Spatial Development Business: Market Trends and Operating Results
ID&E (Nippon Koei’s) Operating Results in Urban &Spatial Development Business (Million yen)

Sales of Top 164 Firms in FY2021 by Sector(Billion US dollars)

OrdersOrders

Revenue
Revenue

Operatingprofit
profitOperating200

42,5668,000
43,00042,000176.3
38,071

38,7007,000

36,091
6,000

31,981150
126.4

28,7005,000

20,510100
15,35918,70014,347
13,46018,16017,874

13,04012,855

21,457
20,274

4,000

2,700

2,599

3,000

2,266
2,000

8,700

46.1

50

917

36.0

32.4

29.9

24.7

19.2
5.6

5.4

81

173

1,000

151
0

-1,3000-1,000-946-11,300

FYE
June 2017
June 2017

FYE
FYE
FYE
FYE
FYE
June 2018
June 2019 June 2020
June 2021 June 2022
June 2018
June 2019
June 2020
June 2021
June 2022*Source: Compiled by the Company based on information available in the ENR magazine (issued in August 2022)*Operating results for years up to FYE June 2020 are based on Japanese GAAP while those for FYE June 2021 and onward are based on the IFRS.

FYE
June
2023
June 2023

FYE
June 2024
June 2024(Plan)(Plan)-2,000

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

41

Energy Business: Market Trends and Operating Results
Repair Expenses for Tokyo Electric Power Company
Holdings, Inc. (Hundred million yen)

ID&E (Nippon Koei’s) Operating Results in Energy Business (Million yen)Repair expenses
1,800

Orders

Revenue

Operating profit

1,778

26,00025,000

1,750

1,685

1,700

1,688

20,85519,986
18,79917,577

1,638

1,650

14,087

1,600

1,542

1,550

16,122
16,116

17,25016,134

16,452

18,827

16,621
13,991

14,343

1,552

1,500

1,450

2,683

1,855

1,724

640

814

1,290

2,974

2,200

FYE
June
June2017
2017

FYE
June 2018
June
2018

FYE
June 2019
June
2019

FYE
June
June2020
2020

FYE
June 2021
June
2021

FYE
FYE
FYE
June
222
June
2022
June
June2022
2022

FYE
June 2023
2023
June

FYE
June 2024
June
2024(Plan)

1,400
FY2017FYE
2017

FY2018FYE
2018

FY2019FYE
2019

FY2020
FYE
2020

FY2021
FYE
2021

FY2022
FYE
2022(Plan)*Figures showing operating results for FYE June 2016 through FYE June 2020 are simple aggregations of the figures for the Power Engineering and Energy Businesses before inter-company
eliminations.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.
*Operating results for years up to FYE June 2020 are based on Japanese GAAP while those for FYE June 2021 and onward are based on the IFRS.

42

Inquiries on IR-related matters

Corporate Communication Office,
MAIL: c-com@n-koei.co.jp
This presentation is provided for information purposes only and is not intended to solicit any
action. Materials in this presentation (including forecasts of financial results) have been preparedbased on credible information available at the time of publication and certain assumptions Nippon
Koei believes to be reasonable. Actual results may differ significantly due to various factors.

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

43