【Materials for Investor Briefing 】
FY2023 1st Half Results
and Annual Forecasts FY2023

November 24, 2023

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

CORPORATE PHILOSOPHY

SEM VALUE

Recognizing its social mission and responsibility, the Sumitomo Densetsu Group:-Aims to develop a favorable environment to support a prosperous and secure society.
-Values its technical prowess and the customer's confidence in it and provides high quality
engineering service that gives a high level of customer satisfaction.
-Practices fair and transparent management based on compliance in keeping with a high standardof corporate ethics.
-Seeks to create a vibrant and pleasant business environment while fostering employees rich increativity.

SEM VALUE

Sincerity
Meet the needs of society in a cordial attitude.
Meet the needs of customer and society, place yourself in the other person's position, andperform tasks properly and actively with sincerity and passion.

Teamwork
Recognize diversity and show a team effort.
Show our integrated strengths and recognize diversity and values, thereby strengthening unityand enabling further growth.

Creation
Create a sustainable future with advancedtechnologies.
Develop our established technologies and continue to challenge creation of a sustainablesociety.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 2 -SEM VALUE

Agenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profitsto ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 3 -SEM VALUE

Agenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 4 -VALUE
1-1. Summary of FY2023 1st HalfSEMResults◇Explanation of Business Results
Orders received and Backlog of Orders reached a record high for the 1st half.
［Orders received］increase year on year (YoY)
Large-scale projects such as data center projects in General Electrical, and renewableenergy projects in Power Transmission.
［Net Sales］：decrease year on year (YoY)
Decrease in Backlog of Orders for Info & Comms, and reactionary decline following
large- scale projects, etc.
［Operating profit・Ordinary profit] decrease year on year (YoY)
A decrease in Net sales could not offset an increase in expenses associated withinvestments in human resources, such as work style reforms and improvement isworkplace environment.

◇FY2023 1st Half Results
FY2022 1H(¥bn)

Actual①

FY2023 1H
Plan ②

Actual ③

GrowthDifference③-②

Growth③－①

Percentage

Orders Received

98.9-105.5

-6.6

6.7%

Net Sales

81.5

83.0

79.9

△ 3.1

△ 1.6

△2.0%

Operating profit
Margin

5.31

4.00

3.11

△ 0.89△ 2.20△41.4%

6.5%

4.8%

3.9%

△0.9%

△2.6%

-

5.84

4.50

3.63

△ 0.87△ 2.21△37.8%

7.2%

5.4%

4.5%

△0.9%

△2.6%

-

Ordinary profit
MarginProfit attributable toowners of parent
Margin

3.79

2.70

2.46

△ 0.24△ 1.33△35.1%

4.6%

3.3%

3.1%

△0.2%

△1.6%

-

Backlog of Orders

126.1-

148.0-

21.9

17.3%

◇Interim Dividends for FY2023 ¥47 per share , as forecast at the start of the fiscal year

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 5 -SEM
VALUE
1-2.Net Sales for FY2023 1st Half Results byWorksTypePower Transmission

Increased YoY due to progress on the backlog of orders, including
projects for plants and renewable energy.

General Electrical

J a p a n :Increased YoY due to progress of large-scale projects such asdata centers.
Overseas:Decreased YoY due to reactionary decline following largescale projects such as data centers performed in the previous fiscal year.

Info & Comms

Communication System: Decreased YoY due to a decreaseof mobile base station works.
Information & Telecommunication: Decreased YoY due to a decrease inbacklog of orders, etc.

Facility & HVAC

Decreased YoY due to reactionary decline following large-scale plant
construction in the previous fiscal year. construction.

Net Sales for byWorks Type(¥bn)

FY2021
1H

FY2022
1H

FY2023
1H

PowerTransmission

8.9

8.2

10.5

28.1%

13.1%

General Electrical

43.3

50.9

48.7

△4.3%

61.0%

32.3

35.5

36.0

1.4%

45.0%

11.0

15.4

12.7

△17.6%

15.9%

Info & Comms

11.3

12.7

11.6

△8.9%

14.5%

Facility & HVAC5.15.3

5.0

△5.7%

6.2%

Others※

4.2

4.4

4.1

△6.1%

5.2%

72.9

81.5

79.9

△2.0%

100.0%

Non-consolidated +Japanese Subsidiaries
Overseas Subsidiaries

合計Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

FY22→23
FY2023Growth(%) Composition*Others Insurance agency business, HVAC equipment, solar power systems sales,equipment manufacturing and repairs, and manufacture and sales of hot water supply systems.

- 6 -SEM VALUE

Agenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 7 -SEM VALUE

2-1. FY2023 Forecast◇ Business Environment

Expected demand:Growth areas such as data centers, redevelopment projects inthe metropolitan areas, carbon-neutral investments including renewable energy,
Expo 2025 Osaka, Kansai, etc.
P o t e n t i a l r i s k s :Soaring labor costs, delays in delivery and price hikes ofmaterials and equipment, and postponement or contraction of investment plans
resulting from above. Increased costs due to site progress delays, etc.

◇ Consolidated Forecast for FY2023 (unchanged from the forecast initially announced)
(¥bn)

2021
Actual2022
Actual2023
Growth(%)
Forecast

FY2024VISION24

Orders Received

179.0

188.8

190.0

0.6%

200.0

Net Sales

167.6

175.1

185.0

5.6%

200.0

Operating profit

13.01

13.46

13.50

0.3%

7.8%

7.7%

7.3%

13.90

14.39

14.50

Margin

8.3%

8.2%

7.8%

Profit attributableto owners of parent

9.14

9.38

9.50

Margin

5.5%

5.4%

5.1%

MarginOrdinary profit

0.7%

15.00
7.5%

1.2%

◇ Dividends Forecast for FY2023 (As forecasted at the start of the fiscal year)
An annual dividend of ¥94 per share (interim ¥47) is planned, unchanged from FY2022.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 8 -SEMType
VALUE
2-2. Net Sales for FY2023 by Works
We are planning to increases sales, primarily in Power Transmission
projects where increases in private sector demand and renewableenergy projects are predicted.
（unchanged from the forecast initially announced）

Net Sales for byWorks Type(¥bn)

FY2023 FY22→23
FY2023
Forecast Growth(%) Composition

FY2021

FY2022

20.3

19.1

22.5

17.5%

12.2%

General Electrical

100.7

106.0

111.0

4.8%

60.0%

Non-consolidated +Japanese Subsidiaries

76.8

76.6

80.0

4.4%

43.2%

23.8

29.3

31.0

5.7%

16.8%

Info & Comms

27.5

28.5

30.0

5.2%

16.2%

Facility & HVAC

10.6

12.1

13.0

7.9%

7.0%

Others※

8.6

9.5

8.5

△10.1%

4.6%

167.6

175.1

185.0

5.6%

100.0%

Power Transmission

Overseas Subsidiaries

TOTAL*Others Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturing and repairs,
and manufacture and sales of hot water supply systems.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 9 -SEM VALUEAgenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 10 -

3-1.Power Transmission WorksSEM VALUE

EnergyProvide high-quality, reliable electric transmission technologies
to meet the needs of customersElectricity is vital to modern society. Sumitomo Densetsu has a range of experience in theconstruction of the facilities required for the transmission of “electricity,” including overhead
and underground transmission, electrical substations, and electrical power distribution
systems. We are also engaged in the construction of interconnected systems to supply
electricity from new energy facilities, including photovoltaic power stations, wind power
stations and hydroelectric power stations.

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 11 -For more details, please refer to the link below
https://www.sem.co.jp/english/business/

SEM VALUE
3-1. Power Transmission FY2023 Forecast
Orders received・Net Sales (¥bn)
26.0

Orders received
Net Sales

24.5

24.2
24.0

22.5
22.0

20.0

19.8

20.3
19.1

18.0

16.0

FY2021

FY2022

FY2023 (Forecast)（unchanged from the forecast
initially announced）

Following the 1st half, we will make efforts for projects forelectricity companies, private sector demand mainly for steel
manufacturers, and renewable energy-related investments.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 12 -3-2.General Electrical WorksEnvironment

Electric

SEM VALUE

Overseas

Electric： Provide speedy and high-quality services for electrical systems that are becoming
increasingly important.
Overseas： 50 years of experience in Southeast Asia. Contributing to the development ofcustomers and regions.
Environment：Contribute to the use of energy for a new age, such as solar, storage cell andbiomass systems.
Engineering : Offer highly satisfactory engineering expertise in control/management systems
such as FMS and BM
Sumitomo Densetsu has been implementing speedy and high-quality planning, design, construction
and maintenance, making use of our high technological capabilities for various electrical systems(high-voltage, low-voltage, disaster preventive and security). We will meet any kind of needs basedon substantial experience both inside and outside Japan.
For more details, please refer to the link belowⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 13 -

https://www.sem.co.jp/english/business/

SEM
VALUE
3-2.General Electrical Works FY2023
Forecast
Orders received・Net Sales (¥bn)
120.0

108.8

112.2
100.7

106.0

Orders received
Net Sales

112.5

111.0

31.0

31.0

100.0

80.0

60.0

40.0

20.0

26.723.8

28.2

29.3

Overseas0.0

FY2021

FY2022

FY2023 (Forecast)（unchanged from the forecast
initially announced）

J a p a n : In addition to growth areas such as data centers and logistics
warehouses, we will focus on projects for plants, and projects related toExpo 2025 Osaka,Kansai.
Overseas: In addition to securing Japanese companies’ investments in Southeast
Asia, we will also focus on orders from non-Japanese companies.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 14 -SEMWorks
VALUE
3-3.Information & Communications

Communication
SystemInformation &Telecommunications

Support the establishment of optimal networks using
accumulated know-how
Sumitomo Densetsu provides total engineering services from consultation, system design,construction and operation to the maintenance of communication/broadcasting infrastructure.
We will continue supporting the ICT society.
As the IT society develops, information networks, which are the infrastructure of the IT society,become more and more important. Sumitomo Densetsu was the first in our industry to makeefforts to establish information networks, and has introduced them in many companies,
universities, hospitals, data centers, etc. We provide optimal systems ranging from design,establishment, and operation to maintenance, taking advantage of our accumulated know-how.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 15 -For more details, please refer to the link below
https://www.sem.co.jp/english/business/

3-3.Information & Communications
SEMWorksVALUE
FY2023 Forecast

Orders received・Net Sales (¥bn)
32.0

30.0

28.0

Orders received
Net Sales

31.0

30.0

29.6

28.8

28.5
27.5

26.0

24.0

22.0

FY2021

FY2022

FY2023 (Forecast)（unchanged from the forecast
initially announced）

We will focus on securing communications infrastructure projects(incident commands, wide area wireless networks, and subways) andinformation infrastructure projects for large facilities (hotels, callcenters, data centers, and educational facilities, etc.).
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 16 -3-4.Facility and HVAC WorksSEM VALUE

FacilityandHVAC

Make the environment of buildings and factories more
comfortable and convenient
Sumitomo Densetsu is involved in the planning, construction and maintenance of plantmachines used in various kinds of manufacturing plants, and of air-conditioning andplumbing systems in factories, office buildings and hotels. We secure a sanitary andcomfortable environment and improve convenience for production and management inbuildings and factories used for various purposes.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 17 -For more details, please refer to the link below
https://www.sem.co.jp/english/business/

SEM VALUE
3-4.Facility and HVAC FY2023 Forecast
Orders received・Net Sales (¥bn)

Orders received
Net Sales

15.0

13.5

13.3

13.1

13.0

12.1
10.6
10.0

5.0

FY2021

FY2022

FY2023 (Forecast)（unchanged from the forecast
initially announced）

Following the 1st half, we will focus on capital investment in theSumitomo Electric Group as well as projects related Expo 2025
Osaka, Kansai, and on receiving direct orders from major generalcontractors and plant operators.

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 18 -SEM VALUE

Agenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 19 -

SEM VALUE
4-1.Medium-term Management Plan VISION 24 (FY2020-FY2024)[Ideals of the Sumitomo Densetsu Group]
Aim to become a comprehensive engineering enterprise that truly meets theneeds of society through the growth of people and technology[Theme of V24]

Sustainable development through a new growth strategy
and comprehensive strength!
Sumitomo Densetsu as one, enhancement of SEM brand power (safety and security,high quality, reliability, and enterprise value)[Four key measures]

Safety, quality, andcompliancePursue improved customer satisfaction(proposal-based sales capabilities,capacity, and technical capabilities)

Secure and develop human resources andEnhance enterprise value inanticipation of the future

implement work style reforms

Corporate Philosophy of the Sumitomo Densetsu GroupThe Sumitomo SpiritⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 20 -SEM
VALUE
4-2.Medium-term Management Plan VISION
24 Targets<Consolidated orders received, Net Sales, ordinary profit, andordinary profit margin>
VISION24
FY2024 target

Orders Received￥200.0 bn

Net Sales￥200.0 bnOrdinary profit￥15.0 bn

Ordinary profit
Margin7.5%- Growth investment
FY2020 to FY2024 (five years) total ¥20.0 bn- Capital efficiency benchmark
ROE (return on equity): Target 10%- Financial soundness benchmark
Equity ratio: Maintain 50% level- Shareholder returns policy
Dividend payout ratio: Target 40% (FY2024)Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 21 -SEM VALUE

Agenda

１．FY2023 1st Half Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profitsto ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 22 -SEM VALUE
5-1.Policy on the Distribution of Profits to Shareholders
Distribute stable dividends well balanced with internal reserves taking
into consideration business results and future business development.
（unchanged from the forecast initially announced）
FY23

FY19

FY20

FY21

FY22

Profit attributableto owners of parent
Margin（¥bn）

9.77
5.7%

8.05
5.2%

9.14
5.5%

9.38
5.3%

9.50
5.1%

Dividends pershare (yen)Interim dividend
Year-end dividend(Increase）

703040(+10)

743539(+4)

863749(+12)

944351(+8)

9447
47

Profit per share(yen)274.67226.22257.43265.05268.33

Dividend payout
Ratio

25.5%

32.7%

33.4%

35.5%

35.0%

ROE

13.8%

10.3%

10.6%

10.2%

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 23 -(Forecast)

SEM
VALUE
5-2.Profit and Dividends per Share, and Dividend
Payout
Ratio
Dividends have increased for 11 consecutive fiscal years since FY2011
Yen

300.0050.0%
Profit per share

Divdends

274.67
Dividend payout ratio

257.43265.05268.3340.3%

250.0040.0%226.22
35.5%
192.34200.0032.7%

144.69150.00100.00133.84142.85
26.6%

155.18
27.1%

26.0%

20.0%
86

13.4%

50.00
1830.0%25.5%

125.26
22.4%

16.6%

1233.4%148.73

94.85

12.7%

2428

FY2013

FY2014

35.0%

3842

FY2015FY2016506070

9494

74
10.0%

0.00

0.0%
FY2011FY2012Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

FY2017- 24 -FY2018FY2019FY2020

FY2021

FY2022

FY2023(forecast)SEM VALUE

Notes on Perspective Information
This presentation material is based on
currently available information. Actual results

may differ from forecasts due to a variety offactors.

Inquiries
Corporate Planning Department,
Sumitomo Densetsu Co., Ltd.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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