Supplementary Materials for theSummary of Financial Reports 1Q, FYE
June 30, 2021
December 14, 2020

Nippon Koei Co., Ltd.
This presentation is provided for informational purposes only and is not intended to solicit any action. Presentation in the materials (includingforecasts of financial Results) is based on credible information available at the time of publication and certain assumptions Nippon Koei believes
to be reasonable. Various factors may cause actual results to differ from the projected numbers or other expectations implied or expressed in thispresentation.

1Q Results for FYE June 30, 2020
Revenue decreased year-on-year due to overseas business being affected by
COVID-19, but operating loss was lowered through domestic cost reductions.

(Millions of yen)

FYE20/6
1Q
Results

FYE21/6
1Q
Results

YoY Change* Published onMay 14

Amount%Orders29,563

26,965△2,59791.2%

Net sales

24,894

20,690△4,20483.1%

Gross profit

5,837

5,759

△7898.7%

Operating Income△1,176△1,09085-

Ordinary Income△935△1,436△500-

Profit attributable toowners of parent△638△1,168△529-◼ Orders received decreased year-on-year due to the COVID-19 pandemic affecting theInternational Consulting and Urban & Spatial Development businesses.
◼ Net sales decreased in segments other than Urban & Spatial Development.
◼ Operating loss decreased with the contribution of cost reduction efforts by DomesticConsulting.
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Results by Business Segment (Orders)
FYE20/6
1Q
Results(Millions of yen)

YoY ChangeAmount%※5/14発表

Orders29,563

26,965△2,59791.2%

Domestic Consulting

14,213

16,5642,351

116.5%

International Consulting

6,225

3,648

△2,576

58.6%

Power Engineering

3,674

3,76995102.6%

Urban & Spatial Development

5,385

2,910

△2,475

54.0%

31342

108.9%

Energy◼ Domestic Consulting◼ International Consulting◼ Power Engineering◼ Urban & Spatial Development◼ Energy

16,56418,00016,000FYE21/6
1Q
Results

14,21314,00012,00010,000

8,000

6,225

6,000

5,385
3,648

4,000

3,674

3,769

2,910

2,000

3134

20/6
1Q

21/6
1Q

020/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

3Results by Business Segment (Net sales)
FYE20/6
1Q
Results
24,894FYE21/61QResults
20,690

Domestic Consulting

10,073

International Consulting(Millions of yen)Amount%△4,204

83.1%

8,330

△1,743

82.7%

6,263

4,321

△1,94169.0%

Power Engineering

3,365

3,177

△18894.4%

Urban & Spatial Development

4,487

4,494

7

100.2%

Energy

414

188

△226

45.4%

Real Estate/Others

290

178

△11261.3%

Net sales

12,000YoY Change◼ Domestic Consulting◼ International Consulting◼ Power Engineering◼ Urban & Spatial Development◼ Energy

10,073

10,000

8,330
8,000

6,263
6,000

4,487

4,321
3,365

4,000

4,494

3,177

2,000

414

188

20/6
1Q

21/61Q020/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

4

Results by Business Segment (Operating Income)Operating Income

FYE20/6
1Q
Results△1,176FYE21/6
1Q
Results△1,090

Domestic Consulting△880

International Consulting(Millions of yen)

YoY Change
Amount%85-△501379-338△2426.2%

Power Engineering

34

△132

△167-

Urban & Spatial Development

312

198

△11363.6%

Energy△96△7224-

Real Estate/Others△580△592△12-◼ Power Engineering◼ Urban & Spatial Development◼ Domestic Consulting◼ International Consulting

312400200338◼ Energy

198340△ 200△ 600△ 800△ 1,000△ 96△ 132△ 400△ 72△ 501△ 880
20/6 21/6
1Q
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q

20/6
1Q

21/6
1Q
5

Overview of Performance by Business Segment
Domestic Consulting◼ Orders received increased year-on-year on the back of a favorable business environment. Orders
were accepted actively through collaboration in and outside Japan.
◼ Revenue decreased following the application of the completion standard for all projects in thesame period of the previous year, and the transfer of the Urban Development Dept. to Urban &Spatial Development Headquarters associated with the structural reform of the current fiscal year.
◼ Operating loss decreased through reducing costs and business trip expenses amid the COVID-19
crisis.

International Consulting◼ Though steadily accepted orders that were postponed in the previous period, orders received
decreased year-on-year due mainly to a delay in concluding additional contracts because ofCOVID-19.
◼ Net sales and operating income decreased year-on-year due to COVID-19 travel restrictions that
affected JICA projects and work delays in the business areas of group companies.

Power Engineering◼ Orders received remained strong at the same level as the previous fiscal year, contributed to by
projects postponed from the previous fiscal year and large-scale projects.
◼ Net sales decreased year-on-year due to the extended temporary suspension of construction
because of the postponed Tokyo Olympic Games and a delay in the construction work of an
overseas plant-related project, while the impacts of COVID-19 on domestic projects have been
immaterial.
◼ Operating income decreased due to a decrease in sales and the recognition of provision for loss
on construction contracts.
6Overview of Performance by Business Segment
Urban & Spatial Development◼ Orders received fell year-on-year due to downsized orders and delays in contract procedurescaused by the COVID-19 pandemic.
◼ Net sales were unchanged year-on-year due to a shift to remote work, etc., promoted by BDP
during COVID-19, and a transfer of Urban Development Dept. to Urban & Spatial Development
Headquarters associated with the structural reform of the current fiscal year.
◼ Operating income fell year-on-year due to a decrease in gross profit due to BDP’s sales decrease.
* The fixed exchange rate applied to the results for the 1st quarter of FYE June 30, 2021: 1 GBP = 137.91 JPY (the rate used in theplan for FYE June 30, 2021 was 1 GBP = 136.23 JPY)** The amount of amortization expense of Urban & Spatial Development business for FYE June 30, 2021 is approx. 700 million JPY(goodwill: approx. 400 million JPY; other intangible fixed assets: approx. 300 million JPY).

Energy◼ Orders received increased year-on-year contributed to mainly by orders received for energysaving projects in Japan.
◼ Net sales decreased from the same period of the previous fiscal year when a storage battery
EPC service was completed.
◼ Operating loss decreased as a result of cost reduction efforts to respond to the COVID-19 crisis.

7

Project Highlights
Interpretation of satellite data over inundated areas
ClientRiver Planning Division, Chubu Regional Development Bureau

Contract value

Approx. 210 million yen

Contract construction period

From June 2020 to March 2021

Summary of disaster◼ Uses SAR and optical EO satellite data over areas hit by flooding and landslides toquickly assess damage of such areas within six hours after capturing satellite data
◼ Prepares a manual for methods of satellite data interpretation, and provides
methods of disaster response using analysis results and best practices combining
non-satellite methods, etc.

Satellite data
(optical EO)

Extracted
inundatedareas

Display system using Zenrin map (identifiable on a house level)
8Project Highlights
Contracting the design of an “AI-driven infrastructure inspection and diagnosis system”
ClientYamaguchi Prefecture

Summary ofdisaster◼ Needs efficient infrastructure maintenance andmanagement (inspection and diagnosis) due to labor
shortage◼ Consultation has begun to develop an efficient way tomaintain and manage bridges using AI technology, etc.
◼ Technology to create automatic inspection records using
tablets was developed, and an ideal method of AI-driven
diagnosis support and its operation were organized throughdemonstration experiments◼ Based on the above, a roadmap for developing an AI-driven
infrastructure inspection and diagnosis system was created

Input

Material condition(repair needed)(assist diagnosis)

Overall facility condition(repair needed)(assist diagnosis)

Output

AIAI
目視不可

損傷なし・
軽微な損傷

規模中規模大Creation of automatic
inspection records

過年度調書

損傷の種類確定9Project Highlights
MRT Blue Line Extension Project in Thailand
ClientMass Rapid Transit Authority of Thailand(MRTA)
Ministry of Transport (Mass Transit Authority of Thailand)

Summary ofdisaster◼ Provided consulting service for the extension of MRT Blue Line ((i) Hua Lamphong to Bang
Khae; and (ii) Tao Poon to Tha Phra), sponsored by the Thai government◼ Section (i) started operation in September 2019 and section (ii) in March 2020
◼ The Group's first completion project of MRT10

Project Highlights
Matarbari Port Development Project, Bangladesh
ClientChittagong Port Authority

Contractvalue

1.45 billion yen

Summaryof disaster◼ Accepted an order for consulting service for theMatarbari Port Development project in September
2020◼ Constructed a multi-purpose commercial port (depthof 16 m) that can accept medium and large vessels
including containers and general cargo◼ A contribution to raising the country’s cargo handling
capacity and enhancing its logistics with neighboring
countries

Monitoring and controlling system for hydraulic civilengineering (Tochigi and Gunma Prefectures)
ClientTEPCO Renewable Power, Inc.

Summaryof disaster◼ Constructed and delivered a standard system that is
directed to unify the operability and the system
configuration promoted by TEPCO Renewable Power◼ The system prevents the operators from making
incorrect operations and increases safety andoperability◼ NK has already delivered standard models nos. 1 to 4
◼ NK showed short delivery time and its maintenanceadvantage using standard software, and won orders
for units nos. 5 and 6 in succession
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Project Highlights
Consultation on introducing a method to develop 3D
models of machine equipment, etc.
ClientNational Institute for Land and Infrastructure Management,Ministry of Land, Infrastructure and Transport

Summary ofdisaster◼ Tasks carried out include:- Development of 3D models of machine equipment- Technical consultation on a procedure for developing
3D models of machine equipment- Technical consultation on unifying 3D models ofmachine equipment and those of BIM/CIM.
◼ The 3D model developed by NK was referred to in
Chapter 7 (Machine Equipment) of MLIT’s CIM
introduction Guidelines (draft)

Renewal of a water turbine generator and otherequipment, Daidogawa Power Plant
ClientKansai Electric Power Company, Inc.

Contractvalue

300 million yen

Contract
construction
periodFrom July 2022 to November 2024

Summary ofdisaster◼ Will renew aged equipment in the about 100-year-oldbuilding of the oldest hydroelectric power plant in Shiga
prefecture.
◼ NK’s proposal for technical upgrades by replacing theexisting two main pieces of equipment with a single
piece of equipment (turbine output power 1,798 kW)
was positively regarded, and NK accepted an order.
◼ Will deliver a set of power generation equipment
including a water turbine, a generator, and anintegrated protection and control system

The method is used to visualize the final shape of a 3D model ofmachine equipment (gray) and point cloud data (green)

12Project Highlights
CLATTERBRIDGE CANCER CENTRE
ClientNHSSummary ◼ A cancer center, the largest and the most wellof disasterequipped in the UK, opened in June 2020 in
the central area of Liverpool◼ BDP was responsible for the outer design,landscape design, and interior design, etc.
◼ The building’s external skin is a reflection ofthe cutting edge research and care it provides.
The building provides external terrace spaceand panoramic views across Liverpool topatients, staff, and visitors.

The new park in West Gorton
ClientCity of Manchester

Summary ◼ BDP, responsible for landscape design,of disaster
introduced a design to reduce flooding due tothe effects of climate change using a range of
biodiverse vegetation to mimic the area’s
natural environment.
◼ This is the first UK demonstrator project for
the GrowGreen Initiative, a partnership forgreener cities. The University of Manchester
will examine how effective the park is in
reducing flooding, and the data they gather
will be used to inform the design of othergreen spaces across the EU.
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FYE June 2021 Forecast(Millions of yen)OrdersDomestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyNet sales
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing/Others
Operating income
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing/Others
Ordinary Income
Profit attributable to owners of parent
Operating margin (%)
ROE (%)⚫ No changes have been made to the forecast⚫ Standardization of accounting standards within the Group by adoption ofIFRS (results are disclosed at the end of the fiscal year)

FYE21/6
Forecast(Japanese GAAP)YoY Change
AmountYoY Change%

141,632
56,18447,50819,82917,874
156
112,214
51,33324,50815,747
18,160
1,187
1,276
4,590
5,227
684
1,069
917
△ 383
△ 2,924
4,603
2,726

104,900
49,80023,90013,00016,0002,200
102,600
41,70022,10018,00018,300
1,100
1,400
1,500
2,100300
1,800
400
△ 700
△ 2,400
2,100500△ 36,732△ 6,384△ 23,608△ 6,829△ 1,874
2,043△ 9,614△ 9,633△ 2,408
2,252139△ 87123△ 3,090△ 3,127△ 384730△ 517△ 316524△ 2,503△ 2,226

74.1%
88.6%
50.3%
65.6%
89.5%
1401.6%
91.4%
81.2%
90.2%
114.3%
100.8%
92.6%
109.7%
32.7%
40.2%
43.8%
168.3%
43.6%
45.6%
18.3%

4.1
4.6

1.5
0.8

FYE 20/6
Results*

FYE21/6
Forecast(IFRS)

104,900
49,80023,90013,00016,0002,200
102,600
41,70022,10018,00018,300
1,100
1,400
3,000
2,100300
1,800700300△ 2,200
1,200

2.9
1.9

*The Fiscal Year Ended June 30, 2020 reflects the correction as of December 14, 2020.
14

Delay in announcement of financial results and retroactive
adjustment
As a result of reviewing total cost estimates concerning a specific project of vertical water turbines under thecontrol of power engineering, it has been confirmed that a certain amount of loss will be caused. Since
review of financial results of the previous year and additional auditing procedures are needed, theannouncement of financial results must be postponed.
NK expresses its deepest regret to its shareholders, business partners, and all other parties concerned forthe occurrence of the incident and apologizes for any inconvenience and concern it may have caused.
Causalanalysis

As a result of a careful investigation in line with the guidance of the external advisory team, it was found that it took time toresolve technical issues during the work process in five projects of vertical water turbines under construction and that adecision to increase the budget was delayed due to inadequate budgetary management by processes.
As a result of the investigation, it was confirmed that there was no fact that the company intentionally set a low cost budget
to record a false and unreasonable profit or that a budget overrun was concealed in the process of production management.

Prevention
measures

NK strives to develop internal controls, enhance the system of the hydroelectric power division, and strengthen themanagement system by:(1) Development and improvement of internal controls(i) Formulating the rules for budget management and cost estimation by subdividing by work process for large-scalevertical water turbine projects(ii) Improving the methods for estimating and confirming the amount of provision for loss on construction contracts oflarge-scale vertical water turbine projects(iii) Strengthening the checking function of and establishing a reporting system for events that occur during the period
from the day following the account settlement up to the date of submission of an annual securities report(2) Expansion of the system of the hydroelectric power division(i) Increasing staff levels(ii) Taking measures to improve the accuracy of bidding quotations(iii) Improving the order process and promoting collaboration with contractors for cutting outsourcing costs(iv) Implementing measures to strengthen and streamline the production system(3) Strengthening of the project risk management system(i) Developing and improving the project management system(ii) Holding risk management meetings to promptly identify and share technical issues(iii) Thoroughly improving the budget management method* For details, please refer to the December 14, 2020, “Notice of submission of Consolidated Financial Results for the Three Months Ended September
30, 2020, and Summary of Financial Results for the Three Months Ended September 30, 2020, and correction made to Consolidated FinancialResults for the Fiscal Year Ended June 30, 2020, and other reports, and Summary of Financial Results for the Year Ended June 30, 2020.”
15