New Medium-term Management Plan
Briefing on the Financial Results for FY2023(the Fiscal Year Ended March 31, 2024)

May 27, 2024

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

Table of Contents
1 Company Overview and Structure of NDK Group’s Philosophies
2 Review of the NIPPON DENSETSU Three-year Management Plan 2021
1. Achievement Status of Numerical Targets
2. Results by Segment
Long-term Vision

3 NDK Vision90
1. Direction toward Sustainable Growth
2. NDK Vision90
3. Process of Growth toward the NDK Vision90
4. Investment Plan for Growth

5. Trend in Dividends

５ Financial Results Overview FY2023(Consolidated)
Financial Results Forecast FY2024(Consolidated)
６ Appendix

New Medium-term Management Plan

4 NIPPON DENSETSU Three-year Management Plan 2024
1. Management Targets and Priority Action Items
2. Business Strategies
3. Strategies to Solidify the Management Foundation
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

1１ Company Overview and NDK Group’s Philosophy

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved21Company Overview(As of March 31, 2024)

Company nameCompany nameNIPPON DENSETSU KOGYO CO.,LTD.
(the Company)

Establishment

December 15, 1942

LocationNDK Daini Ikenohata Building
1-2-23 Ikenohata, Taito-ku, Tokyo 110-8706

Share capital

NDK Group (consists of 16 subsidiaries and five affiliates)

8,494.29 million yen

Representative

Kazushige Yasuda, President and Representative Director

Business
description

Contract, plan, design, supervise, etc. civil engineering
work, scaffolding work and earth work, electricalconstruction, plumbing work, steel structure work, painting
work, telecommunications engineering, fire protection
facilities work, and demolition works

Consolidated
subsidiaries
13 companies

Affiliates are marked with ◯.

Description of primary businesses

NDK Sogo Service Co., Ltd.

Sell electrical equipment and materials, lease, broker, and manage real estate, and perform, plan,
supervise, and maintain electrical construction for buildings

NDK Its Co., Ltd.

Plan, develop, and manage information systems

NDK Densetsu Co., Ltd.

Perform, plan, supervise, and maintain electrical construction for buildings

NDK Setsubi Sekkei Co., Ltd.

Plan, design, estimate cost of, and supervise electrical facilities, communications facilities, andinformation systems for buildings

NDK R&E Co., Ltd.

Train on and publish books about electrical facilities

Nippon Densetsu Denshasen Koji Co., Ltd.

Perform and supervise electrical construction for railway tracks

Nippon Densetsu Shingo Koji Co.,Ltd.

Perform and supervise electrical construction for railway signals

Nippon Densetsu Tsushin Koji Co., Ltd.

Perform and supervise telecommunications engineering for railway communications

NDK Nishinihon Densetsu Co., Ltd.

Perform, plan, supervise, and maintain electrical construction for buildings (the Osaka and Shikoku
areas)

Toden Co., Ltd.

Perform and supervise electrical construction for buildings (the Chugoku area)

Tokiwa Denki Kogyo Co., Ltd.

Perform, plan, supervise, and maintain electrical construction, telecommunications engineering, andplumbing work (the Kyushu area)

ISHIDA Industries Co,.Ltd.

Design, perform, and supervise plumbing work (air conditioning, water supply and drainage
sanitization, water supply and sewerage systems, etc.)

Total Electric Management Service Co., Ltd.

Survey, design, construct, plan, supervise, and maintain electrified railway facilities, communications
facilities, and fire protection facilities◯ SHIN-YOSHA CORPORATION

Design, manufacture, sell, and install electrified railway equipment and various signage display
systems

Number of
employees

2,546 (non-consolidated), 4,744 (consolidated)

Stock exchange
listing / Securities
code

Prime Market of the Tokyo Stock Exchange / 1950

Industry sector

Construction

Yaesu Denki Koji Co., Ltd.

Perform railway power construction and repair electrical equipment

Trading unit

100 shares

Daiei Densetsu Kogyo Co., Ltd.

Design, perform, supervise, inspect, maintain, and repair electrical construction of railway lighting

Total number ofissued shares

Nihon Kasen Kogyo Co., Ltd.

Design, manufacture, sell, and install parts and tools for railway tracks

61,537,219 shares◯ Nippon Tetsudou Denkisekkei Co., Ltd.

Plan, survey, design, estimate cost of, construct, and supervise of railway electrical facilities

Largestshareholder

East Japan Railway Company (JR East)(The Company is an entity accounted for using equity
method of JR East.)◯ EIRAKU ELECTRIC CO.LTD.

Design, manufacture, sell, and install machinery and equipment for railway electrical power
conversion and communications◯ SANKOSHA Co., Ltd.

Manufacture and sell railway signaling equipment, railway vehicle supplies, traffic signals, road signs,
etc.

◯ SANSEIDENKI Co., Ltd.

Design, manufacture, and sell lighting equipment, distribution boards, and switch boxes for railway
facilities

Total number ofshareholders

4,585

Entity accounted forusing equity method
1 company

Entities not accounted
for using equity method
7 companies

31Company Overview

Leading company in the field ofconstruction of electrified railway
equipment (Railways)

Covers a wide range of construction,
including construction of electricalfacilities for buildings (Buildings) andconstruction of information andcommunication systems (I&C Systems)

Net sales composition by segment (¥)(Unit: million yen)

FY2023
Net sales

Including net sales
to JR East

Railways

109,165

81,509Buildings

52,943

2,065

I&C Systems

27,31912,668

AssociatedBusiness*

4,602

146

Total

194,031

Segment

Nationwide business operations

Net sales composition by segment (%)
AssociatedBusiness
2.4%

I&C Systems
14.1%

Buildings
27.3%

Railways
56.2%

96,390（49.7％）* Associated Business includes real estate business, total building management, sale ofmaterials, software development, and design of electrical facilities.
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

41Structure of NDK Group’s Philosophies

Corporatemotto:
motto
Corporate
Be bright,
Be bright and friendly.
embrace harmony,
Honeskills.
hone youryour
skills,and serve
Servewith
withintegrity.
integrity.

Corporate philosophy
We execute our duties safely, reliably, and with acustomer-first spirit to strengthen customers’confidence in us and contribute to society bycreating infrastructure that is important to society
and supports people's lives and the economy.

Management
philosophies

Basic Policy on Sustainability• Develop and grow together with the local
community• Contribute to the global environment
through business activities• Foster and empower diverse talent andpromote diversity

Basic Policy on Sustainability
Creation of safety cultureLong-term vision

NIPPON DENSETSU
Three-year Management Plan
2024
“Pursuing New Heights”

Medium-term management planNDK Vision90
With pride and responsibility as a leading
company in the field of construction ofelectrified railway equipment, we aim tobecome a comprehensive infrastructure
facilities construction company byexpanding our business in construction
segments of electrical facilities forbuildings, information and communication
systems, and environmental energy.

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

5

Review of the NIPPON DENSETSU
2
Three-year Management Plan 2021

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved6

2❶ Achievement Status of Numerical Targets
Three-year Trend in Financial Results
In FY2023, our management indicators exceeded all planned figures, achieving a V-shaped recovery in profit.
(Unit: billion yen)
FY2020(Results)

Orders
Net sales
OperatingprofitOperatingprofitmarginOrdinary
profitOrdinary
profitmargin190.6

FY2021(Results)

172.3

FY2022(Results)

182.6

FY2023(Plan)*

180.0

FY2023(Results)

208.0

195.6

173.5

172.1

189.9

194.0

14.1

7.4

9.6

12.4

13.4

7.3%

4.3%

5.6%

6.5%

6.9%

15.3

8.7

10.9

13.6

14.9

7.9%

5.0%

6.3%

7.2%

7.7%

* Planned figures announced in the NIPPON DENSETSU Three-year Management Plan 2021

Summary
Orders and net sales⚫ We captured the recovery trend in capital
investment in the private sector and received orders
for large-scale projects, including new railway
tracks projects and major station-front
redevelopment projects.

Operating profit and ordinary profit⚫ Selective order taking and revision of unit prices forconstruction ordered by JR East increased
profitability.
⚫ Promotion of ICT utilization and mobile working
increased productivity.

They all almost recovered tothe pre-COVID (FY2020) levels.

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved7

2❷ Results by Segment
OrdersRailways

Buildings

Net sales (billion yen)(billion yen)

117.1

125.0
1,250

• Despite being affected by the reduction in capital investment
by railway operators, we maintained solid relationships with
JR East and other JR companies.
• We also expanded our business area to other public andprivate railway operators.
Orders¥111.6 bn → ¥117.1 bn (+¥5.5 bn)

125.0
1,250

• We captured the recovery in capital investment in the private
sector and took orders strategically.
Orders¥49.2 bn → ¥62.5 bn (+¥13.3 bn)• Selective order taking resulted in an increase in operating
profit.
Operating profit¥2.82 bn → ¥3.44 bn (+¥0.62 bn)

1,250
125.0

125.0
1,250

10.0
100

1,000
100.0

100.0
1,000

8.0
80

111.6

100.0
1,000

101.3 97.9

111.5

100.0
1,000

100.1 101.4

109.1

8.0
80

75.0
750

75.0
750

10.0
100

50.0
500

4.0
40

25.0
250

250
25.0

20
2.0

FY2020FY2021FY2022 FY2023

750
75.0
500
50.0

49.2 47.2

57.7 62.5

FY2020 FY2021 FY2022 FY2023

75.0
750
50.0
50.0
500

250
25.0
00

00

42.6 41.3

52.9

00

7.01
5.07
3.42

FY2020 FY2021 FY2022 FY2023

6.0
60

4.0
40

250
25.0
FY2020 FY2021FY2022 FY2023

00(billion yen)

7.67

6.0
60

50.0
500

0

Operatingprofit2.82

3.44
1.95 2.1920
2.0
FY2020 FY2021 FY2022 FY2023

00

FY2020 FY2021 FY2022 FY2023* The results figures for Construction of Electrical Facilities for Buildings include those for environmental energy construction.

• Despite being affected by the reduction in capital investment
by communications companies, we got on a recovery trend.

I&C
Systems

AssociatedBusiness

Orders¥28.3 bn → ¥26.7 bn (-¥1.6 bn)
Operating profit¥2.90 bn → ¥1.77 bn (-¥1.13 bn)• We entered infrastructure sharing business as a new
business.
• Investment in highly profitable real estate properties
resulted in an increase in profit.
Operating profit¥0.78 bn → ¥1.20 bn (+¥0.42 bn)• We contributed to the reduction of environmental impact byrenovating office buildings of the Company into ZEBs.

* The figures are presented for comparison between FY2020 and FY2023.
* Associated Business includes real estate business, total building management, sale of materials, software development, anddesign of electrical facilities.
Figures for real estate leasing, management, etc. are not included in Orders as they do not involve order-based production.

125.0
1,250

1,250
125.0

10.0
100

100.0
1,000

1,000
100.0

8.0
80

75.0
750

750
75.0

60
6.0

50.0
500

250
25.0
0

28.3 22.4 25.1 26.7

FY2020 FY2021 FY2022 FY2023

500
50.0

30.8 27.9 26.0 27.3

20
2.0

250
25.0
00

4.0
40

FY2020 FY2021 FY2022 FY2023

00

10.0
100

100
10.0

5.0
50

8.0
80

80
8.0

4.0
40

6.0
60

60
6.0

4.0
40

2.0
20

00

40
4.0
1.5

1.3

1.7

1.5

FY2020 FY2021 FY2022 FY2023

4.6
3.2

2.8

3.2

00

FY2020 FY2021 FY2022 FY2023

1.38 1.34 1.77
FY2020 FY2021 FY2022 FY2023

3.0
30
2.0
20

1.0
10

20
2.0

2.90

00

0.78 0.68

1.03 1.20

FY2020 FY2021 FY2022 FY2023

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

8Long-term Vision

3 NDK Vision90

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved9❶ Direction toward Sustainable Growth3

Strengthening
Infrastructure

New railway
track projects

Increase indemand for data
centers andsemiconductors

Major
station-front
redevelopment

Railways

Increase indemandrelated to theenvironment

I&C
systems
Securing anddeveloping
human resources

DX anddevelopment oftechnologies

I&C
systems

Environmental
energyBuildings

Associatedbusiness

Environmental
energyStrengtheningof therevenue base
Investment
for growth

Railways

Increase
Buildings
incorporate
value
Associatedbusiness

Return toshareholders
Contribution to local
communities
Reduction ofenvironmental
impactIncrease incapital efficiency
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10

3❷ NDK Vision90
Vision for FY2031 (the 90th Term)
NDK Vision90

With pride and responsibility as a leading company in the field of construction of electrified railway
equipment, we aim to become a comprehensive infrastructure facilities construction company
by expanding our business in construction segments of electrical facilities for buildings,
information and communication systems, and environmental energy.

Balance the proportions ofbusiness segments

Strengthen the revenue
base by further solidifying
relationships with regularcustomers

Creation of New Businesses
Expansion of Business
Areas

Expand construction segments of electrical facilities for buildings,
information and communication systems, and environmental energy

Secure orders from JR East and other JR companies

Increase orders from regular customers, including station buildings andIncreaseschoolsorders from regular customers, including station buildings and schools
Secure orders from the mobile field and increase orders from the network
Securefield orders from the mobile field and increase orders from the network field
Increase business with public and private
railways nationwide to expand the market
presence

Expand business nationwide in the fields of air
conditioning and sanitation, ZEB, and energy
creation

Participate in large-scale development
projects nationwide

Enter new businesses (recycling business andlocal communities-related business)

Nationwide expansion of theinfrastructure sharing business

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved11

3❸ Process of Growth toward the NDK Vision90

NDK Vision90
Medium-term management plan that will
provide a toehold for NDK Vision90
NIPPON DENSETSU
Three-year Management Plan 2024
FY2024–2026 (83rd to 85th terms)
NIPPON DENSETSU
Three-year Management Plan 2021
FY2021–2023 (80th to 82nd terms)

FY2023

FY2026
Net sales¥221.5 bn

Operating profit¥15.3 bn
8％

Net sales¥194.0 bn

ROE

Operating profit¥13.4 bn

Market capitalization

ROE

Market capitalization ¥125.7 bn

Environmental
Energy3%

AssociatedBusiness2%

Buildings
25%

AssociatedBusiness
3%

Environmental
Energy3%
I&C
Systems
15%
Buildings
26%

I&C
Systems
14%¥200.0 bn

5.5%

FY2031 (90th term)
FY2031

Net sales¥260.0 bn

Operating profit
ROE¥20.0 bn
10% or more

Market capitalization
Environmental
Energy5%¥230.0 bn
AssociatedBusiness
4%

I&C
Systems
16%
Railways
47%

Railways
53%

Buildings
28%

Railways
56%

Sow the seeds for revenue
expansion

Expand the existing revenue baseand monetize new domains
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12

3❹ Investment Plan for Growth
Utilize cash generated from the sale of strategically-held shares and business operations
FY2024–FY2031 (cumulative)
Funded by:

Breakdown of investment for growth

Used for:

Human resources

I nve s t forgrow th¥ 7 5 . 0 bn

Ac c umul a te dtota l i n thepe ri od¥75.0 bn

⚫ Secure human resources through attractive performance-based
remuneration⚫ Strengthen human resource development by various measures, including
renewing and adding practical training facilities⚫ Improve the workplace environment

Productivity improvement⚫ Develop and introduce new technologies⚫ Strengthen DX education and utilize generative AI⚫ Enhance safety and save labor through renewing construction vehicles
and machinery¥ 1 3 0 . 0 bn
Re tur n profi t
tos ha re hol de rs
S tre ngthe nma na ge me nt
founda ti on* Funds include proceeds fromsale of strategically-heldshares (reduced by 50%)

Business-related⚫ Conduct M&As aimed at strengthening the construction systems andentering new businesses⚫ Establish in-house venture systems and collaborate with startups⚫ Enhance support for partner companies in recruitment and businesssuccession⚫ Reduce environmental impact and contribute to local communities

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved13

3❺ Trend in Dividends
We recognize that aiming for sustainable growth in corporate value and returning profit to our shareholders are among

Basic policy on our key priorities. Our policy on profit distribution is to determine the amount of dividends with the basic stance ofprofit distribution continuously paying out stable dividends in line with the results of our growth to our shareholders while comprehensively
considering investment for future growth and the strengthening of our management foundation.

Three years from
FY2009Total dividends¥2.2 bnThree years from
FY2012
Total dividends¥3.0 bnThree years from
FY2015
Total dividends¥5.2 bnThree years from
FY2018
Total dividends¥6.7 bnThree years fromFY2021
Total dividends¥7.0 bn

11.7

11.9

13.6

13.8

14.3

16.3

18.2

18.8

21.9

23.8
20.2
¥2.3 bn¥2.1 bn ¥2.3 bn ¥2.3 bn¥2.0 bn¥1.7 bn¥1.5 bn¥1.2 bn¥0.9 bn ¥0.9 bn¥0.8 bn ¥0.7 bn ¥0.7 bn
(¥12)

(¥12)

(¥12)

FY2009FY2010FY2011

(¥14)

(¥15)

FY2012FY2013NDK Vision90(Planned)¥10.0 bn

36.5
31.7

15.7

Three years fromFY2024
Total dividends

(¥35)

(¥37)

28.6

28.1

¥2.8 bn¥3.0 bn
(¥50)

(¥47)

(¥37) ¥1.9 bn (¥37)

(¥33)

(¥31)

(¥27)

(¥25)

(¥20)

FY2014FY2015FY2016FY2017FY2018

Total regular dividends (dividends per share)
Total special dividends

FY2019FY2020

FY2021

FY2022

FY2023

FY2024

Forecast

Forecast

FY2025

FY2026

FY2031Dividend payout ratio (%)
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

14

New Medium-term Management PlanNIPPON DENSETSU
4
Three-year Management Plan 2024
FY2024 （83rd Term)–FY2026 (85th Term)—Pursuing New Heights—

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved15

4❶Management Targets and Priority Action Items
Management targets

Theme

Consolidated“Pursuing New Heights”
Pursue new heights as the “Team NDK”
and feel the growth together(FY2026)

Net sales
Operating profit¥221.5 bn¥15.3 bn

Priority Action Items

Increase the levels of safety and quality andCreate the culture for the new pursuits andensure thorough governancegenerate value

Secure human resources andIncrease engagement andContribute to thestrengthen the construction systems

productivity

environment and society

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved16

４ ❷ Business Strategies
Strengthen therevenue base

Increase orders from JR East and other JR companies⚫
⚫

Construction ofElectrified
Railway Equipment

Expandthe businessdomainStrengthen relationships with regular customers in the public and private railway sector,
start business with new customers and in new industries⚫

Strengthen therevenue base

Expandthe businessdomainStrengthen therevenue baseConstruction ofInformation andCommunication
Systems

Net sales

117.1

117.8

7.61

Substation renewal, construction for new technologies, such as wireless train control systems, new track
construction, etc.

Targets for FY2026
Station buildings, schools, hospitals, etc.
Strengthen proposals of facilities diagnostics for renewal of aging facilities

Participate in large-scale projects nationwide and enter fields that will serve as a future
revenue base⚫

Orders

Net sales

55.9

57.6

(Billion yen)
Operatingprofit3.91

Large-scale station-front redevelopment projects, data centers, semiconductor plants, resort facilities, etc.
nationwide

Increase orders for network and mobile construction⚫
⚫

Expandthe businessdomainOrders(Billion yen)
OperatingprofitExpand the revenue base by strengthening relationships with regular customers⚫
⚫

Construction ofElectrical Facilities
for Buildings

Targets for FY2026
Strengthen support with design, proposals of equipment renewal, etc.
Construction for seismic retrofitting, development of areas surrounding a station, various projects, etc.

Construction of base stations for various telecommunications carriers nationwide
Large-scale network construction projects, such as station-front redevelopment and hospitals

Targets for FY2026
Orders

Net sales

31.5

32.1

Increase revenue from infrastructure sharing business* and monitoring and operation
services⚫
⚫
⚫

Expand and rollout infrastructure sharing from stations and station buildings to commercial facilities,
schools, and other areas in town
Expand optical fiber leasing service nationwide to data centers and other facilities in collaboration withrailway operators
Establish an NDK operation center to provide nationwide post-network and infrastructure sharing
construction monitoring and operation services(Billion yen)
Operatingprofit2.37* Infrastructure sharing business• Infrastructure sharing (network sharing by mobile
telecommunications carriers)• Optical fiber leasing (leasing high-quality optical fiber lines
along railway tracks)

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved17

４ ❷ Business Strategies
Expandthe businessdomainIncrease orders for new and renovated ZEBs
⚫ Utilize our 100% ZEB office buildings to strengthen proposals to companies, including those related to JR
East

Increase orders for construction for energy generation projects⚫ Propose solar power generation for self-consumption to group companies of JR East, regular customers, etc.
⚫ Increase orders for construction of private transmission lines for wind power generation and construction ofgrid-scale storage battery stations

Construction forenvironmental
energyStrengthen toward nationwide business expansion in the fields of construction for air
conditioning and sanitation

Targets for FY2026

Orders

Net sales

5.8

7.0

(Billion yen)
Operatingprofit0.39⚫ Increase bundled orders for electrical, air conditioning, and sanitary construction by strengthening
relationships with various companies, including general contractors related to JR East
⚫ Increase orders in the Tohoku, Chugoku, and Shikoku areas for nationwide business expansion

Expandthe businessdomainReduce environmental impact and contribute to local communities⚫
⚫
⚫

Associatedbusiness

Commercialize the recycling of resources generated at construction sites
Expand environmentally friendly real estate businesses, Including ZEH rental apartments andrenovations
Construct our own office buildings incorporating ZEB technologies to strengthen resilience of local
communities

Develop new businesses and strengthen the real estate business⚫
⚫

Targets for FY2026

Orders

Net sales

3.6

7.0

(Billion yen)
Operatingprofit1.07

Develop new businesses closely aligned with our core businesses
Invest in highly profitable real estate businesses (offices, commercial, etc.)

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4❸ Strategies to Solidify the Management Foundation
Safety Measures
Efforts for Safety
Recognizing “Safety is at the top of agenda in corporate management.” as an unwavering principle, we provide a safe and secureliving environment to society through the construction and maintenance of social infrastructure.
Create infrastructure that is safe, secure, and important to society
Eradicate train driving accidents; third-party injuries; serious occupational accidents (collisions with trains,electrocutions, falls, fatal accidents); serious disruptions in transportation, serious failures of facilities, andserious operational accidents

Reduce risks in steps
Construction plan

Task plan

Identify and understand potential risks based on theconstruction details, conditions, and environments
Properly manage factorsthat could lead to fatal
Identify fatal
accidents
risks

Address risks systematically, gradually transition to the taskplan, and perform construction work and tasks

Reducerisks

Address riskssystematicallyConstruction plan

(Change Point Management)
Address risks associated withchanges in processes andspecifications

Construction works and tasks

Perform construction safely
at construction sites
Address risks associatedwith the task plan

Address risks associatedwith the tasks

Construction
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

194❸ Strategies to Solidify the Management Foundation

Increase the Value of Human Resources
Secure Diverse Human Resources and Increase Employee Engagement
Targets for FY2031:
Increase the number of construction workers by 20% compared to FY2023
Make the ratio of managerial positions among female employees equal to thatamong male employees
Expand the target for new graduates and mid-career recruitment⚫ Increase the hiring of liberal arts students for technical positions⚫ Hire inexperienced individuals from staffing agencies and among recent
graduates looking to change jobs
Number of new graduate hires (plan) 100/year
Number or mid-career hires (plan) 13/year

110/year
20/year

Build an environment where diverse talent will be able to demonstrate theirabilities⚫ Establish systems that will support employees to thrive more
⚫ Promote women's participation:
Hire at least two women for technical positions each year
Aim to obtain an Eruboshi certification in FY2024

Targets for FY2031:
Engagement score: AAA
Get recognized as a certified KENKO Investment for Health Outstanding
Organization “White 500”
Create a healthy and lively workplace⚫ Took measures from FY2022 ahead of the application of regulations on the cap on overtime
work• Promoted mobile working and introduced intervals between work shifts
Met the regulations on the cap in FY2023
Recognized as a 2024
⚫ Promote measures to address mental health issues
Certified KENKO⚫ Promote the use of childcare leave
Investment for Health
Outstanding Organization
Ratio of male employees who took childcare leave: 70%
in March 2024
Aim to obtain a Kurumin certification in FY2025⚫ Build a comfortable workplace environment• Rebuild office buildings of the Company, including
the Nagano Branch Office Building

Human Resource Development
Enhance the training of younger employees and encourage their early growth⚫ Revise the OJT period and training programs for the development ofyounger employees
New employee training: 12,488 person-days/year
Specialized training: 4,546 person-days/year⚫ Formulate development programs tailored to diverse talent andexperiences, including new graduates, mid-career hires, and those
without experience

Enhance the training environment⚫ Build a new accommodation building of
Chuo Gakuen⚫ Add and renew practical training facilities
of Chuo Gakuen

New accommodation building(to be completed in December 2024)

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved20

4❸ Strategies to Solidify the Management Foundation
Strengthen Construction Systems and DX and Technology Development
Strengthen Construction Systems
Increase productivity through the increased efficiency of on-site operations

Improve construction capabilities by strengthening the systems of partner companies⚫ Strengthen the systems to support construction sites by the back office⚫ Support recruitment activities, including creating websites and hiring foreign workers⚫ Strengthen safety training at the practical training facilities of Chuo Gakuen●Supervise
the sites

Collaborationand sharing in a
cloud
environment

Construction sites●Preparedocuments anddrawings●Examine issues

Back office‣Streamline and smooth out operations‣Reduce the burden on on-site operations andincrease productivity

Support in
recruitment
Increase the numberof workers

Support intraining
Improve safety andquality

Strengthen
construction
systems

Business
succession
Solve successor issues
Pass on skills

DX and Technology Development
Develop and promote DX talent⚫ Promote internal production and increase IT literacy through the formation of DX
organizations and the development of DX talent⚫ Utilize new technologies, including generative AI

Promote NDK’s Construction Tech DX Vision 2031
⚫
⚫
⚫
⚫
⚫

Survey and measure using drones, 3D scanners, etc.
Plan construction and estimate and design costs using BIM and AI
Manage safety of workers using sensors and AI cameras
Reduce workload and save labor through collaboration with robots and IoT
construction machinery
Perform post-construction inspection and recording using mobile devices androbots

NDK’s Construction Tech DX Vision 2031

Aim for safety, labor-saving, andincreased productivity through theintroduction of the latest technologies
and the development of newtechnologies suitable to eachconstruction step

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved21

4❸ Strategies to Solidify the Management Foundation
Reduction of Environmental Impact and Contribution to Local Communities
Reduce GHG Emissions in Business Activities
Reduce Scope 1 and 2 emissions in FY2030 by 50% (compared to FY2013)

Greenhouse gas emissions from the Company’s own
business activities (non-consolidated basis)■Scope1(t-CO2)
10,000Make investment in energy-saving facilities in accordance with the Mediumterm Energy-saving Plan
⚫ Promote the introduction of ZEB technologies to office buildings of the Company
Rebuild the Nagano Branch Office Building into ZEB and renovate the NDK
Omiya Building into ZEB⚫ Install solar power generation facilities
Install one in the new accommodation building of Chuo Gakuen⚫ Renew air conditioning systems to high-efficiency ones
Perform the renewals at the NDK Oji Building and the NDK Tamagawa
Building⚫ Renew vehicles for use at the Company
Replace gasoline vehicles with hybrid vehicles (95% by FY2029)

Reduce Environmental Burdens through Construction forEnvironmental Energy
Propose construction projects for energy-saving⚫ Support obtaining ZEB certifications as a ZEB PlannerParticipate in construction projects to generate energy, including constructionof wind power generation facilities⚫ Participate in the Oritsumedake wind power generation project
Electrical facilities construction for wind turbines, private power transmission
lines, and substation facilities

8,945
8,000

■Scope2

Reduce by 35%
compared to
FY2013
Reduce by 38.4%
compared to
FY2013

5,814

6,000

5,508

Reduce by 50%
compared to
FY2013

4,000

Carbonneutral

2,000

0FY2013

FY2021 FY2022

FY2030FY2050Contribution to Local Communities
Formulate and promote implementation of the Basic Policies for Activities toContribute to Local Communities
Build office buildings of the Company that achieve coexistence with local
communities⚫ Build buildings to enhance resilience and create space for use by local
communities
Develop new businesses that can contribute to local communities⚫ Develop a recycling business for resources generated on construction
sites
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved22

4❸ Strategies to Solidify the Management Foundation

Risk Management and Strengthening of Governance
Reconstruct the Risk Management System

Prevent Misconducts

Verify and reconstruct existing risk management systems

Enhance compliance awareness and ensure strict adherence tolaws and regulations by employee training

Streamline contract review processes⚫ Continue and strengthen compliance training using training
systems⚫ Utilize AI contract review services
Measures for concluding contracts with overseas companies⚫ Introduce AI tools to address risks in contracts in English

Maintain and Strengthen the BCP
Update the BCP to an all-hazards strategy so that we will be able torespond to disasters other than earthquakes as well
Increase the effectiveness of the BCP as the one for the NDKGroup, including group companies
Strengthen our support in the restoration of customers’
infrastructure facilities during large-scale disasters

Maintain and strengthen information security⚫ Ensure tight security through the establishment of new security
infrastructure

Realize Effective Corporate Governance
Disclose disclosure materials in English
Strengthen our ability to communicate information by various
measures, including increasing opportunities for dialogue withinvestors⚫ Conduct disaster prevention drills jointly with JR East

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

23

Financial Results Overview FY2023 (Consolidated)
5
Financial Results Forecast FY2024 (Consolidated)

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved24

５ Financial Results Overview FY2023 (Consolidated)
Summary of Financial Results

Business environment⚫ As the impact of COVID-19
eases, public investment
remained solid, and private
capital investment was also on
a recovery trend.
⚫ Redevelopment of urban areas
and measures to address theaging of existing infrastructure
progressed.

Financial results of
FY2023

Increased dividends⚫ Achieved increases in net sales
and profit due to smooth
progress in large-scaleconstruction projects andincreased profitability throughselective order taking.
⚫ Due to strong orders, backlog
remained at a high level.

⚫ Achieved a V-shaped recovery
in profit in the final year of themedium-term management planand increased dividends to ¥47
by adding a special dividend of¥5 to the previously forecast
amount of ¥42.

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved25

５ Financial Results Overview FY2023 (Consolidated)
Key Points in the Financial Results⚫ Orders significantly exceeded the forecast and increased year on year to ¥208.0 billion.
⚫ Net sales exceeded the forecast and increased year on year to ¥194.0 billion.
⚫ Ordinary profit also exceeded the forecast and significantly increased year on year to ¥14.9 billion.
⚫ With abundant construction work in hand, the backlog significantly exceeded the forecast and increased year
(Figures in parentheses are ratios to net sales. Unit: million yen)on year to ¥173.7 billion.
Comparison with theforecast (B-A)

FY2022 Results

FY2023 Forecast (A)FY2023 Results (B)Backlog at beginning of period

144,574

156,811

156,811——%

Orders

182,693

173,130

208,036

34,90620.2%

Net sales

172,100

192,450

194,031

1,581

0.8%

Gross profit

23,917（13.9%）

28,120（14.6%）

28,509（14.7%）

389

1.4%

SG&A

14,258（8.3%）

14,650（7.6%）

15,060（7.8%）

410

2.8%

Operating profit

9,658（5.6%）

13,470（7.0%）

13,448（6.9%）-21-0.2%

Non-operating income and expenses

1,245（0.7%）

940（0.5%）

1,452（0.7%）

512

54.5%

Ordinary profit

10,903（6.3%）

14,410（7.5%）

14,900（7.7%）

490

3.4%

62

（0.0%）-70（-0.0%）

540（0.3%）

610—%

Profit attributable to owners of parent

7,171（4.2%）

9,420（4.9%）

10,042（5.2%）

622

6.6%

Backlog carried over to next period

156,81133,52823.9%

Extraordinary income and losses

140,190

173,719* Figures in (A) are the forecasts announced at the financial results briefing for FY2022. Taking into account the environment that surrounded the
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
Company at the time, they had been revised from the figures planned at the time of the announcement of the Three-year Management Plan 2021.

26

５ Financial Results Overview FY2023 (Consolidated)(Unit: million yen)Compared to FY2022: +¥25.3 bn
Compared to Forecast: +¥34.9 bn

Orders250,000

250,000

208,036
200,000

190,660
172,335

182,693

173,130

200,000

150,000

150,000

100,000

100,000

50,00050,0000
FY2020 Result

FY2021 Result

Operating profit

FY2022 Result

FY2023 Forecast

FY2023 Result

Compared to FY2022: +¥3.7 bn
Compared to Forecast: -¥0.0 bn

20,000 Operating profit margin (%)
15,00010,0000195,695

FY2020 Result

173,569

172,100

FY2021 Result

FY2022 Result

Backlog

192,450

194,031

FY2023 Forecast

FY2023 Result

Compared to FY2022: +¥16.9 bn
Compared to Forecast: +¥33.5 bn

250,000

14,188（7.3％）

13,470（7.0％）
7,454（4.3％）

Compared to FY2022: +¥21.9 bn
Compared to Forecast: +¥1.5 bn

Sales

13,448（6.9％）

9,658（5.6％）

200,000

172,491
144,574

150,000

156,811

173,719
140,190

100,000

5,000

50,0000
FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result0* Figures for “FY2023 Forecast” are the forecasts announced at the financial results briefing for FY2022. Taking into account the environmentthat surrounded the Company at the time, they had been revised from the figures planned at the time of the announcement of the Three-year
Management Plan 2021.

FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved27

5

Financial Results Overview FY2023 (Consolidated)
Summary by Business Segment

Construction of Electrified
Railway Equipment•受注高は各鉄道事業者の工事抑⚫ Orders increased due to制の影響を受け減少
recovery in investment by•売上高は新幹線工事等の大型工
railway operators.
事の施工が順調に推移し微増⚫ Net sales increased year on•営業利益は効率的な施工により増
year due to a recovery in
加companies.
orders from JR•次期繰越高は受注高減少の影響⚫ Operating profit increased due
により減少となるも高水準を維持
to abundant work in hand andimproved profitability.
⚫ Backlog carried over to thenext period increased due tostrong orders.

Construction of Electrical Facilities
for Buildings

Construction of Information andCommunication Systems⚫ Orders increased in afavorable order environment
though we took orders
selectively.
⚫ Net sales increased as largescale construction projects
progressed smoothly.
⚫ Operating profit increased due
to abundant construction
projects in hand and improved
profitability.
⚫ Backlog carried over to thenext period significantly
increased due to strong orders.

⚫ Orders increased due to active
sales efforts for networkrelated construction.
⚫ Net sales increased as largescale construction projects
progressed smoothly.
⚫ Operating profit increased as
we efficiently performed
construction of work on hand.
⚫ We secured backlog carriedover to the next fiscal year on
par with the previous fiscal
year.

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved28

5

Financial Results Forecast FY2024 (Consolidated)
Key Points in the Financial Results Forecast⚫ Secure a high level of orders not only from regular customers but also through targeted sales efforts.
⚫ With abundant construction work in hand, secure net sales of ¥205.1 billion, which will be a record high, andaim for operating profit of ¥14.6 billion.
(Figures in parentheses are ratios to net sales. Unit: million yen)
FY2023 Results

FY2024 Forecast

Year on year

Backlog at beginning of period

156,811

173,719

16,907

10.8%

Orders208,036

197,100-10,936-5.3%

Net sales

194,031205,160

11,1285.7%

Gross profit

28,509（14.7%）

31,540（15.4%）

3,030

10.6%

SG&A

15,060（7.8%）

16,870（8.2%）

1,809

12.0%

Operating profit

13,448（6.9%）

14,670（7.2%）

1,221

9.1%

Non-operating income and expenses

1,452（0.7%）

1,160（0.6%）-292-20.1%

Ordinary profit

14,900（7.7%）

15,830（7.7%）

929

6.2%

540

（0.3%）

30（0.0%）-510-94.4%

Profit attributable to owners of parent

10,042（5.2%）

10,500（5.1%）

457

4.6%

Backlog carried over to next period

173,719-4,836-2.8%

Extraordinary income and losses

168,883

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved29

５ Financial Results Forecast FY2024 (Consolidated)(Unit: million yen)BacklogCompared to FY2023: +¥16.9 bn

Orders250,000

250,000

200,000

200,000

208,036
144,252

150,000

144,574

156,811

173,719

100,000

50,00050,0000
FY2021

FY2022

Net sales

FY2023

FY2024Compared to FY2023: +¥11.1 bn

250,000
200,000

182,693

FY2021

FY2022

Operating profit

197,100

FY2023

FY2024 (Forecast)Compared to FY2023: +¥1.2 bn

20,000173,569

172,100

194,031

Operating profit margin (%)

205,160
15,000150,000

10,000100,000

7,454（4.3%）

13,448（6.9%）

14,670（7.2%）

9,658（5.6%）

5,000

50,0000172,335

150,000

100,000

0Compared to FY2023: -¥10.9 bn

FY2021

FY2022

FY2023

FY2024 (Forecast)

0

FY2021

FY2022

FY2023

FY2024 (Forecast)

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

30

Ⅵ

Appendix

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved31

6

Financial Results ofConstruction of Electrified Railway Equipment Segment(Unit: million yen)OrdersCompared to FY2022: +¥19.1 bn
Compared to Forecast: +¥17.9 bn

150,000

101,371
100,000

97,936Compared to FY2022: +¥7.7 bn
Compared to Forecast: -¥0.8 bn

150,000

117,132

111,604

111,591

99,210100,114

101,415

FY2021 Result

FY2022 Result

109,970

109,165

FY2023 Forecast

FY2023 Result

100,000

50,0000

Net sales

50,000

FY2020 Result

FY2021 Result

Operating profit

FY2022 Result

FY2023 Forecast

FY2023 Result

Compared to FY2022: +¥1.9 bn
Compared to Forecast: +¥0.3 bn

10,0000

FY2020 Result

Compared to FY2022: +¥7.9 bn
Compared to Forecast: +¥18.7 bn

Backlog
150,000

7,675（6.9%）

Operating profit margin (%)

6,620（6.0%）

7,016（6.4%）

5,076（5.0%）
5,000

100,000

97,047
79,117

83,60475,63864,8783,429（3.4%）
50,0000

FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

0

FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

32

6

Financial Results ofConstruction of Electrified Railway Equipment Segment
Orders and Net Sales (Disaggregated)(Unit: Billion yen)

FY2020

FY2021

FY2022

FY2023

JR EastOrdersNet
sales

Other JRcompanies

Orders

Net
sales

59.5

44.0

49.5

数値未集計

62.6

58.4

51.9

50.2

53.7

FY2020

FY2021

FY2022

FY2023

5.3
5.3

3.6

3.6

数値未集計
4.7

3.4

7.6
5.4

Other public
and private
railway
companies

New
Shinkansen
Lines

FY2020

FY2021

FY2022

FY2023

Orders

10.3

19.3

13.0

12.7

Net
sales

10.0

11.9

16.3

14.4

FY2020

FY2021

FY2022

FY2023

3.4

1.9

1.6

0.4

4.3

4.4

4.0

Orders
Net
sales

3.2

数値未集計

数値未集計

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

33

6

Financial Results ofConstruction of Electrical Facilities for Buildings Segment(Unit: million yen)OrdersCompared to FY2022: +¥4.7 bn
Compared to Forecast: +¥13.6 bn

100,000

50,0000

FY2020 Result

FY2021 Result

Operating profit
5,000

1,957
（4.6%）

2,500

0

FY2020 Result

FY2021 Result

50,04950,000

FY2022 Result

FY2023 Forecast

FY2023 Result

Compared to FY2022: +¥1.2 bn
Compared to Forecast: +¥0.0 bn

Operating profit margin (%)
2,822（5.6%）

100,000

48,85047,222

3,360（6.8%）

041,391

FY2021 Result

FY2022 Result

Backlog

FY2023 Result

FY2023 Forecast

52,943

FY2023 Result

Compared to FY2022: +¥9.5 bn
Compared to Forecast: +¥10.4 bn

100,000

73,06550,000

FY2023 Forecast

FY2020 Result

49,69042,6683,442（6.5%）

2,198（5.3%）FY2022 Result

Compared to FY2022: +¥11.5 bn
Compared to Forecast: +¥3.2 bn

62,541

57,79749,204

Net sales

047,12447,061

FY2020 Result

FY2021 Result

63,46762,627

FY2022 Result

FY2023 Forecast

FY2023 Result

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved34

6

Financial Results of Construction ofInformation and Communication Systems Segment(Unit: million yen)OrdersCompared to FY2022: +¥1.5 bn
Compared to Forecast: +¥2.9 bn

50,00022,4050

FY2020 Result

FY2021 Result

Operating profit
5,000

25,180

FY2022 Result

23,830

FY2023 Forecast

Compared to FY2022: +¥1.2 bn
Compared to Forecast: -¥1.3 bn

50,00030,82428,31225,000Net sales

26,77527,94526,032

28,63027,319FY2023 Forecast

FY2023 Result

25,000

FY2023 Result

Compared to FY2022: +¥0.4 bn
Compared to Forecast: -¥0.5 bn

0

FY2020 Result

FY2021 Result

Backlog

FY2022 Result

Compared to FY2022: -¥0.5 bn
Compared to Forecast: +¥4.2 bn

50,000Operating profit margin (%)
2,906（9.4%）
2,500

0

2,350
（8.2%）
1,387（5.0%）

1,346（5.2%）FY2021 Result

FY2022 Result

28,0901,779（6.5%）

25,00018,115

16,71912,4630
FY2020 Result

17,263

FY2023 Forecast

FY2023 Result

FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved35

6

Financial Results of
Associated Business Segment
OrdersCompared to FY2022: -¥0.1 bn
Compared to Forecast: +¥0.3 bn

5,000(Unit: million yen)Compared to FY2022: +¥1.3 bn
Compared to Forecast: +¥0.4 bn

Net sales
5,000

4,160

4,602

3,261

3,230
2,841
2,500

2,500
1,540

0

FY2020 Result

1,779
1,336

FY2021 Result

Operating profit
3,000

1,240

FY2022 Result

FY2023 Forecast

1,585

FY2023 Result

Compared to FY2022: +¥0.1 bn
Compared to Forecast: +¥0.0 bn

0FY2020 Result

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

Compared to FY2022: -¥0.1 bn
Compared to Forecast: +¥0.1 bn

Backlog
500

443

Operating profit margin (%)

328
280
1,500

0

783
（24.3%）

680（23.9%）FY2020 Result

FY2021 Result

1,036（31.8%）FY2022 Result

1,140（27.4%）

1,209（26.3%）FY2023 Forecast

FY2023 Result

250

0

229

FY2020 Result

221

FY2021 Result

FY2022 Result

FY2023 Forecast

FY2023 Result

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

36

6

Segment Overview
Construction of Electrified Railway Equipment (JR and other public and private railway operators)
Name of the constructionNEW

JR EastReplacement Works of the Underground Transmission Lines
between Warabi and Oji

JR EastShinkansen Fukushima Station Inbound Approach Track

JR Hokkaido

Replacement of Extra-High-Voltage Feeder Cables for Electric
Trains at a Fixed Point in Yoshioka 2
Installation of New Feeder Messenger and Other Works at the
Kawase Yard
Electrical Facilities Works for the Construction of Elevated
Railways Near Matsuyama Station
Renovation of High-Voltage Distribution Lines between
Ongagawa and Ebitsu
Renewal of Substation Facilities at the Asakusa Line Daimon
Substation
Renovation Works of Facilities and Equipment at the Wako
Substation
Electric Line Works Associated with the Renewal of the
Katakura Substation (Part 2)

NEW

JR WestNEW

JR Shikoku

NEW

JR Kyushu
Tokyo Metropolitan
Government Bureau ofTransportation

NEW

Tokyo Metro
Yokohama City
Transportation Bureau
Transportation Bureau Cityof Nagoya

Osaka Metro

NEW

Osaka Metro
Okinawa
Monorail

FY2024FY2025

FY2026

Renewal Works of Electricity Receiving Facilities at the Joshin
Substation (Renewal of Facilities)
Third Rail Construction Works between Yumeshima andCosmosquare on the Subway Chuo Line
Electrical and Other Works Associated with the Renovation of
Station Facilities at Hommachi Station on Lines 1 and 4
Works on Non-infrastructural
Electrical Facilities Associated
大阪メトロ
with the Transition to Three-car Trains
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved37

6

Segment Overview
Construction of Electrical Facilities for Buildings, Information and Communication Systems, andEnvironmental Energy
Name of the construction

NEW

NEW

NEW
NEW

JR EastNew Electrical Facilities Installation and Other Works for JR TOKYO
GENERAL HOSPITAL Patient Ward Building Reconstruction

Station-front
redevelopment
Station-front
redevelopment

Construction Works for Electrical Facilities for Umekita Phase 2 Area
Development Project North District Rental Building

FY2024FY2025

FY2026

Electrical Facilities Works for Local Energy Supply at TAKANAWA GATEWAY CITY
New Construction Works for THE LINKPILLAR 2 (Complex Building II)

Defense relatedElectrical and Other Works for New Construction of a Flight Control
Building, etc. in Mageshima (R4)

Governmental
agencyGovernmental
agencyElectrical Facilities Works for Newly Building Minna no Gekijo (tentativename) in Marugame City

Highway

Installation of Road Lighting Systems between Yubunehara Tunnel andShin-Gotemba IC on Shin-Tomei Expressway

AirportRenovation and Other Works on Lighting on Runways in the Nagasaki
Airport

Hospital

Construction Works of the Caress Memorial Hospital

Electrical Facilities Works for Newly Building the Community Terrace forRelaxation and Learning

Electric, air conditioning, Construction Works of SENKEN KOGYO’s New Training Center (Electricaland sanitation
Facilities and Mechanical Facilities)

Energycreation
Mobilecommunications
Networks

JR East Cross Station
Installation Works of Solar Power Generation Facilities on the Rooftop of the
Minakami Plant

Construction Works of Mobile Communications Base Stations for Various
Telecommunications Companies
ICT and the Blocks’大阪メトロ
Common Facilities at TAKANAWA GATEWAY CITY(Complex Building II)
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

38

6

Segment Overview
Major Railway-Related Construction Projects
Name of the construction

Projects by
JR

Haneda Airport Access Lines (East Yamanote Route and New
Access Lines)
Wireless Train Control System (Advanced Train Administration
and Communications System (ATACS))
Seismic Reinforcement of Shinkansen’s Overhead Line Mast
(Replacement of Steel Pipe Mast)
Shinkansen Speed Enhancement (Introduction of Simplified
Overhead Contact Lines)
Measures for Aging Railway Electrical Facilities (Maintenanceand Renewal)
New Suica Gate System (Networks and Monitoring and
Maintenance)
New Construction for Infrastructure Sharing at Block 4 of
TAKANAWA GATEWAY CITY
Station-front Redevelopment Projects (Tokyo Metropolitan Area,
Hokkaido, etc.)

FY2023

FY2024FY2025

FY2026FY2027

FY2028

Scheduled to start operation in FY2031 (JR East)

Works to relocate obstructions

Keihin Tohoku Line (between Kawaguchi and Omiya)Tohoku Shinkansen(between Omiya and Oyama)

Plan to replace approx. 4,000 masts from FY2021 to 2027 andapprox. 4,000 masts from FY2028 to 2033 (JR East)

Tohoku Shinkansen(between Ueno and Omiya)Construction planned between Furukawa and Morioka,
Joetsu Shinkansen Omiya and Honjo-waseda (JR East)

Renovation and Other Works for Various Facilities Due to Aging of Railway Electrical Facilities
Tokyo Metropolitan Area, Sendai Area, and Niigata Area
The system planned to be introduced gradually from thesummer of 2023 (JR East)

Collecting information

Renewal Work of Substation Facilities

Projects byother public
and private
railways

Start Business with New Customers and in New Industries
New Line Extensions (Tokyo Metro: Extensions of YurakuchoLine and Namboku Line)

Collecting information
Scheduled to start operation in the mid-2030s

New Line Extensions (Utsunomiya LRT: Extension to the West)

Collecting information
Scheduled to start construction in or after FY2027 and start operation in the early 2030s

New Line Extensions (Hokkaido Shinkansen: Extension to
Sapporo)Collecting information
Scheduled for completion by the End of FY2030
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

39

6

Financial Results Forecast forConstruction of Electrified Railway Equipment Segment(Unit: million yen)BacklogCompared to FY2023: +¥7.9 bn

77,86079,11775,63883,604

101,371

97,936FY2021

FY2022

117,132

111,510

FY2023

FY2024 Forecast

100,000

50,00050,0000Compared to FY2023: -¥5.6 bn

150,000

150,000

100,000

Orders0
FY2021

FY2022

Net sales

FY2023

FY2024Compared to FY2023: +¥2.0 bn

150,000

Operating profit

Compared to FY2023: +¥0.5 bn

10,000100,114

101,415

109,165

Operating profit margin (%)

111,180

7,016（6.4%）

7,590（6.8%）

5,076（5.0%）

100,000
5,000

3,429
（3.4%）

50,0000

FY2021

FY2022

FY2023

FY2024 Forecast

0

FY2021

FY2022

FY2023

FY2024 Forecast• While steadily securing orders from JR companies, we aim to increase orders from other public and private
railway operators.
• We aim to increase net sales and profit with abundant construction work in hand.
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved40

6

Financial Results Forecast forConstruction of Electrical Facilities for Buildings Segment(Unit: million yen)Backlog

63,4670Compared to FY2023: -¥9.6 bn

100,000

100,000

50,000OrdersCompared to FY2023: +¥6.4 bn

42,507

69,91957,79747,06150,0000
FY2021

FY2022

FY2023

FY2024Compared to FY2023: +¥7.6 bn

Net sales
100,000

49,87047,222

FY2021

FY20225,000

55,5400

FY2023

42,66841,391

FY2021

FY202247,9372,500

FY2023

FY2024 Forecast

0

1,957
（4.6%）FY2021

FY2024 Forecast

Compared to FY2023: +¥0.6 bn

Operating profit
Operating profit margin (%)

50,00059,5583,223（6.7%）

3,880（7.0%）

2,198（5.3%）FY2022

FY2023

FY2024 Forecast• We will maintain a high level of orders, while ensuring profitability by working to actively expand sales efforts ingrowth domains, such as data centers.
• We aim to increase net sales and profit with abundant construction work in hand.
* Results of FY2021 and FY2022 and backlog for FY2023 include those for the construction segment for environmental energy .

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

41

6

Financial Results Forecast for Construction of Information
and Communication Systems Segment(Unit: million yen)BacklogCompared to FY2023: -¥0.5 bn

0Compared to FY2023: +¥1.5 bn

50,00050,00025,000Orders23,65425,00018,115

17,263

16,719FY2022

FY2023

FY20240
FY2021

Net sales

Compared to FY2023: +¥1.0 bn

50,00022,405

FY2021

25,18026,77528,280

FY2022

FY2023

FY2024 Forecast

Operating profit

Compared to FY2023: +¥0.3 bn

5,000

Operating profit margin (%)
27,94526,032

27,31928,40025,00002,500

FY2021

FY2022

FY2023

FY2024 Forecast

0

1,387
（5.0%）

1,346（5.2%）FY2021

FY2022

1,779（6.5%）FY20232,090（7.4%）FY2024 Forecast• We will maintain orders by expanding active sales efforts for network-related construction and infrastructure
sharing business.
• We aim to increase net sales and profit through efficient construction and improved construction profitability.
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved42

6

Financial Results Forecast forConstruction for Environmental Energy Segment(Unit: million yen)Backlog

OrdersCompared to FY2023: +¥1.2 bn

5,000

5,000

4,270
2,983

2,500

2,500

0

0

Net sales

Compared to FY2023: -¥1.1 bn

10,000

FY2023Operating profit

FY2024 Forecast

Compared to FY2023: +¥0.0 bn

1,500Operating profit margin (%)
1,000
5,006

5,000

3,850
500

0

FY2023

FY2024 Forecast

0219（4.4%）

230（6.0%）FY2023

FY2024 Forecast• We aim to increase orders in the field of environmental energy construction by drawing on our technicalcapabilities as a leading ZEB owner and ZEB planner in addition to our extensive track record in renewableenergy construction.
* Results for FY2021 and FY2022 are not presented as they are included in the results of the Construction ofElectrical Facilities for Buildings Segment.

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

43

6

Financial Results Forecast for
Associated Business Segment(Unit: million yen)BacklogCompared to FY2023: -¥0.1 bn

500

OrdersCompared to FY2023: +¥1.5 bn

5,000

443

3,170

328
280
250

229

2,500

1,779
1,336

0

0
FY2021

FY2022

Net sales

FY2023

FY2024Compared to FY2023: +¥1.5 bn

10,000

FY2021

FY2022

Operating profit
1,500

4,602

5,000
2,841

0

1,000

FY2021

FY2023

FY2024 Forecast

Compared to FY2023: -¥0.3 bn

Operating profit margin (%)
1,036（31.8%）

6,190

1,585

1,209
（26.3%）

880（14.2%）

680（23.9%）

3,261
500

FY2022

FY2023

FY2024 Forecast

0

FY2021

FY2022

FY2023

FY2024 Forecast• We aim to increase net sales by focusing on creating new businesses in addition to building new rental
apartments and increasing occupancy rates of rental buildings.
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

44

6

NIPPON DENSETSU Three-year Management Plans
Secure profit to grow sustainably

V-shaped recovery achieved in FY2023
250.0

Three-year
management plan2009

Three-year
management plan2012

Three-year
management plan
2015

Three-year
management plan
2018

Three-year
management plan
2021

198.2 195.6

200.0

155.2 153.7 150.8

162.5

170.1 174.4 174.2 172.1
13.84

150.0

10.88 10.76

14.33

13.81

178.9 182.4

205.1

210.7

25.00

221.5
20.00

173.5 172.1

16.49
14.87 14.85

194.0

Three-year
management plan
2024

14.67

14.18

13.44

10.90 11.20

15.35
13.85

15.00

9.65

9.66

10.00

100.0

7.45
5.00

50.0

0.0
Net sales(billion yen)

68th term
FY200969th term
FY201070th term
FY2011

71st term
FY201272nd term
FY201373rd term
FY201474th term
FY201575th term
FY201676th term
FY2017

Net sales

77th term
FY201878th term
FY201979th term
FY202080th term
FY202181st term
FY202282nd term 83rd term 84th term
FY2025
FY2023
FY2024
Forecast Forecast

85th term
FY2026
Forecast

0.00
Operatingprofit(billion yen)

Operating profit in yen
Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved

45

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved46

Please note that the forecast figures presented in this document were prepared based on
the information available to the Company at the time they were prepared, and actual results
may differ from the forecasts in the document due to fluctuation of the levels of various
risks and uncertainties and changes in economic conditions, among other factors, in future.

Please direct inquiries to:

Public Relations Department
NIPPON DENSETSU KOGYO CO.,LTD.
1-2-23 Ikenohata, Taito-ku, Tokyo 110-8706
TEL

03-3822-8825

FAX

03-3822-8960

URL

https://www.densetsuko.co.jp/

Copyright(C)2024 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved