Supplements for theSummary of Financial Results
Third quarter, FYE June 30, 2017
May 15, 2017
Nippon Koei Co., Ltd.
This presentation is provided for informational purposes only and is not intended to solicit any action. Presentation in the materials(including forecasts 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 otherexpectations implied or expressed in this presentation.

3Q Results for FYE June 30, 2017(Millions of yen)

FYE 16/6 3Q
Results

FYE17/6 3Q
Results

Orders(*1)

60,821

Net sales

ReferenceValuesyoy(%)
FYE17/6 3Q(*2)

yoyyoy(%)

81,466

20,644133.9%

73,940 121.6%

51,75464,16812,413124.0%

55,560 107.4%

Gross profit

14,33820,401

6,063

142.3%

16,455

Operating Income

1,858

3,603

1,744

193.8%

3,553 191.2%

Ordinary Income

1,648

4,032

2,383

244.6%(*2) Excluded the Urban & Spatial
Development segment

Profit attributable toowners of parent

409

2,615

2,205638.6%–––114.8%

Order amount, including of a large-scale project of Cairo subway line #4 and BDP businesses, surpasses theone of the same period a year earlier.
Sales of every business segment grows steadily and the amount exceeds the one of the same period of thepreceding year.
Operating income, ordinary income and quarterly net profit are all rising, as a result of continuous efforts for
productivity improvement, sales promotion and cost reduction.

(*1) We have changed the calculation standard for orders starting this period. For details, please see page 8. Results for 3Q of FYEJune 30, 2016 are also based upon figures calculated according to the same standard.
2Results by Business Segment (Orders)(Millions of yen)

FYE17/6 3Q
Results

FYE16/6 3Q
Resultsyoyyoy(%)

Orders(*1)

60,821

81,466

20,644133.9%

Domestic Consulting

28,08431,9343,850

113.7%

International Consulting

20,364

31,58011,216155.1%

Power Engineering

12,322

10,400- 1,92184.4%-7,525

7,525-4924

- 25

48.4%

Urban & Spatial DevelopmentOthers(*1) We have changed the calculation standard for orders starting this period. For details, please see page 8. Results for
3Q of FYE June 30, 2016 are also based upon figures calculated keeping accordance with the same standard.
■Domestic Consulting■International Consulting■Power Engineering

FY2016 3Q

FY2016 3Q■Urban & Spatial Development

31,93430,00028,08420,00010,0000

FY20162016.6 3Q3Q

FY20172017.6 3Q3Q

FY2017 3Q

FY2017 3Q

FY2016 3Q

FY2017 3Q
3Results by Business Segment (Sales)(Millions of yen)

FYE 17/6 3Q
Results

FYE16/6 3Q
Resultsyoyyoy(%)

Net Sales51,754

64,16812,413

124.0%Domestic Consulting

22,912

25,3852,472

110.8%

International Consulting

14,54814,60860

100.4%

Power Engineering

13,39014,653

1,263

109.4%-8,608

8,608-

Real Estate Leasing393368

- 24

93.7%

Others

509

543

33

106.5%

Urban & Spatial Development■Domestic Consulting■International Consulting■Power Engineering

30,00020,00020,00022,912■Urban & Spatial Development

25,38515,00014,54814,60815,00020,00010,00010,000

5,000

5,000

14,653
13,39010,00000
FY2016
3Q
2016.6 3Q

FY20172017.63Q
3Q

0FY2016
3Q
2016.6 3Q

FY20172017.6 3Q
3Q

FY20162016.63Q
3Q

FY20172017.63Q
3Q

FY2016 3Q

FY2017 3Q
4Results by Business Segment (Operating Income)(Millions of yen)

FYE 17/6 3Q
Results

FYE16/6 3Q
Resultsyoyyoy(%)

Operating Income

1,858

3,603

1,744

193.8%

Domestic Consulting

282

1,006724

356.6%

International Consulting

422

1,022

599

241.9%

2,810

3,024

213

107.6%-5050-291

303

12104.2%- 1,948- 1,803

144-Power Engineering

Urban & Spatial Development
Real Estate Leasing
Others■Domestic Consulting■International Consulting■Urban & Spatial Development

1,022

1,006
1,000

■Power Engineering

1,0005050500500422282002016.63Q3Q
FY20162017.6 3Q
FY2017
3Q0
2016.6 3Q
FY2016
3Q

2017.6 3Q
3Q
FY2017FY2016 3Q

FY2017 3Q

2016.6 3Q
FY2016
3Q

2017.63Q
3Q
FY20175

Overview of Performance by Business Segment
Domestic Consulting–––

Order amount surpasses the one of the same period a year earlier, owing to good performance of priority fields,such as disaster prevention/mitigation.
Sales amount also exceeds the one of the previous year as a consequence of increasing orders.
Operating income has overtaken the preceding year in amount by profits gained through productivity
improvement in large-scale projects.

International Consulting––

Order amount surpasses the one of preceding year, due mainly to a favorable market environment such as anincrease of national ODA budget.
Sales remain almost unchanged from the same period of previous year, but operating income grows owing tocontinuous administrative efforts for profitability enhancement.

Power Engineering–––

Order amount marked a drop below the level of the same period a year earlier, due to the delay of contracting
procedures for large-scale projects.
Sales amount surpasses the one of the same period of the preceding year, by completion of large-scale andlong-running projects for years, proposals of so-called VE（Value Engineering） to clients, and strengthening
divisions for mechanical/electrical consulting.
Operating income exceeds the one of the same period of the previous year, owing to intensive efforts for cost
reduction as well as the growth of sales mentioned above.

Urban & Spatial Development––

Order amount remained almost the same as forecasted.
Both amounts of sales and operating profit have been depreciated due to weak sterling pound, on local currency
basis, however, almost the same as forecasted.
* The amount of amortization expenses for FYE June 30, 2017 is approximately JPY 1 billion (Amortization of goodwill: approximately JPY 500 million; Other
intangible fixed assets: Just over JPY 500 million).
* Consolidated results including BDP are recorded with a three-month time lag. Thus, the consolidated settlement of 3Q (July 2016 - March 2017) is based upon
the performance within a nine-month period of April - December 2016.
* Fixed rate of exchange for 3Q results: 1 GBP = 139.6 JPY (Rate used in the plan for the FYE June 30, 2017 was 1 GBP = 160 JPY)
6FYE June 2017 Forecast
No changes have been made to the forecast for the entire FYE June 2017 period.
FYE June 2016
Results
104,019

Ordinary income

4,365

114,000
105,000
45,00026,00018,50014,000
6,000
3,200
1,600
3,100
600
6,300

Profit attributable toowners of parent

1,823

3,600

Orders
Net sales

81,865- Domestic Consulting

40,778- International Consulting

22,070- Power Engineering

17,522- Urban & Spatial Development-Operating income

4,723- Domestic Consulting

2,956- International Consulting

1,156- Power Engineering

3,048- Urban & Spatial Development*FYE June 2017
Forecast-yoy(Millions of yen)yoy(%)

9,980

109.6%

23,134128.3%

4,221

110.4%

3,929

117.8%

977

105.6%

14,000－1,276

127.0%

243

108.2%

443

138.3%

51

101.7%

600

－

1,934

144.3%

1,776

197.5%

Note: Net sales and operating income are exclusively consisted of the main segments of Domestic Consulting, International Consulting , PowerEngineering and Urban & Spatial Development. Net sales and operating income also include the Real Estate Leasing segment, etc.
7

(Reference) On changes in the calculation standards for orders
Previously, amount of orders included the balances of foreign currency translation (*) of outstanding orders
as of the end of the previous period and orders for the current period. Starting this period, however, orders
are settled without foreign currency translation.
 Previous method of calculation

 Current method of calculation (starting this period)

Loss

Loss

Orders for the current period
include the balances offoreign currency translation ofoutstanding orders as of theend of the previous period
and orders for the current
periodOutstandingorders as of theend of theprevious period

Current period
ordersCurrent period
net sales

Orders for the current period do
not include the balances offoreign currency translation ofoutstanding orders as of theend of the previous period andorders for the current period

Outstandingorders as of theend of the current
periodOutstandingorders as of theend of theprevious period

Current period
ordersBalance of foreign
currencytranslation

Current period
net sales

Outstandingorders as of theend of the current
period(*) Details on the balances of foreign currency translation of outstanding orders as of the end of the previous period and orders for thecurrent period are explained in the section titled “4. Supplementary Information” on page11, the Summary of Financial Results.
8（TOPIC） Renewable Energy Business Investment in Asia
Taking a stake into Ironmont Hydro Pte. Ltd, a Singaporean investment firm for hydropower business

Enhancing investment in renewable energy businessbased upon principles of Medium-term Management Plan
Anticipated to promote, by initiating this investment,
discovering prospective hydropower projects and proper
business partners in Asia
Launched regional development and publicity of NK’s
renewable energy business(From left to right)
Mr. Abhay Pande, Board Director, Ironmont Hydro Pte. Ltd.
Ryuichi Arimoto, President, Nippon Koei
Mr. Aldo Artoko, Board Director, Ironmont Hydro Pte. Ltd.

■ Profile of Ironmont Hydro Pte. Ltd.
Foundation:
June 2016
Head Office:Singapore
Business Lineup:
Development, management and investment inhydropower business covering all over Asia
■ Summary of Stake
Share Acquisition:
May 2017
Total Investment:
US$10 million (approx. JPY1.1 billion)* To be incrementally paid in compliance with progress of the project* US$1=JPY112.56 (as of the end of February 2017)

Medium-Term Management
Plan (NK-AIM) Basic policies
Sustainable growthof three core businesses

Generation and expansionof new businesses
Autonomy and collaboration
9（TOPIC） Introduction and Application of Global Accounting Convention
Strengthening consolidated management by enhancing accounting governance of overseas offices

Stabilized and consolidated accounting (a/c) system supports
global business evolution.

ActPlanFollow-up

Group Policy■ Introduction of common standard & procedures:* Enhancement of a/c quality of all overseas offices by introducing
Consultationcommon a/c “language” across the world group enterprises(including BDP), and standardized procedures,
CheckDo* Development of Plan-Do-Check-Act (PDCA) cycle that enables
Information/
Monitoring
Education
successive improvement and evolution of business activities.
■ Strengthening cooperative ties between overseas and head offices
Sharing common group objectives, enhancing autonomy of each business unit,
establishing mutual collaboration systems.

Medium-Term Management
Plan (NK-AIM) Basic policies
Sustainable growthof three core businesses

Generation and expansionof new businesses
Autonomy and collaboration
Policy meeting in which global a/c officers participated10