Consolidated Financial Results
for the Nine Months Ended March 31, 2023
[IFRS]
May 15, 2023

Company name: Nippon Koei Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 1954
URL: https://www.n-koei.co.jp/english/
Representative: Hiroaki Shinya, Representative Director and President
Contact: Yasushi Hirusaki, Director General of Corporate Management Headquarters, Director
Phone: +81-3-3238-8040
Scheduled date of filing quarterly securities report: May 15, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: None

(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended March 31, 2023 (from July 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
ProfitRevenue
Operating profit
Profit before tax
Profitattributable toowners of parent
Nine Months ended
Million yen%
Million yen% Million yen% Million yen% Million yen%
March 31, 2023
102,634
7.3
9,520
0.1
8,580 (17.3)
5,528(22.2)
4,725(33.3)March 31, 2022
95,682 10.6
9,509 39.0
10,373
52.6
7,108
70.9
7,083
65.9

Nine Months ended
March 31, 2023
March 31, 2022

Basic earnings
per shareYen
313.71
470.52

Diluted earnings
per shareYen
313.71
470.52(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
June 30, 2022

Million yen
209,757
173,926

Equityattributable toowners of parent
Million yen
80,21378,088

Total equity
Million yen
82,99581,9692. Dividends

Ratio of equity
attributable toowners of parent tototal assets

%
38.2
44.9

Dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end

Yen
-

Yen
-

Yen
-

Fiscal year ended June 30, 2022
Fiscal year ending June 30, 2023
Fiscal year ending June 30, 2023 (Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Year-end

Total

Yen
125.00Yen
125.00125.00125.003. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 to June 30, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to
Basic earnings
Revenue
Operating profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Yen
Full year
145,000
11.0
11,300
24.6
6,700
1.8
444.77(Note) Revision to the financial results forecast announced most recently: None1

* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): Yes
New companies: None
Excluded companies: IRONMONT HYDRO PTE. LTD.
ACEI SINGAPORE HOLDINGS PRIVATE LTD.
(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
(3) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023:
15,068,948 shares
As of June 30, 2022:
15,060,314 shares2) Total number of treasury shares at the end of the period
As of March 31, 2023:
2,675 shares
As of June 30, 2022:
1,811 shares
3) Average number of shares during the period
Nine Months Ended March 31, 2023:
15,063,827 shares
Nine Months Ended March 31, 2022:
15,055,238 shares* These consolidated financial results are not subject to audit procedures by certified public accountants or the audit firm.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements disclosed herein are based on information available to theCompany as of the publication date of this document and it is not intended to guarantee the Company's future
performance. Actual results may significantly differ from the forecasts due to a wide range of factors.

2

Table of Contents of Attachment
1. Qualitative Information on Quarterly Financial Results ............................................................................................. 2(1) Explanation of Operating Results .......................................................................................................................... 2(2) Explanation of Financial Position .......................................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ....................... 3
2. Condensed Quarterly Consolidated Financial Statements and Primary Notes ............................................................ 4(1) Condensed Quarterly Consolidated Statement of Financial Position .................................................................... 4(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income ............................ 6(3) Condensed Quarterly Consolidated Statement of Changes in Equity.................................................................... 8(4) Condensed Quarterly Consolidated Statement of Cash Flows ............................................................................ 10(5) Primary Notes to Condensed Quarterly Consolidated Financial Statements ....................................................... 11(Notes on Going Concern Assumption) .............................................................................................................. 11(Notes on Significant Changes in Shareholders’ Equity) .................................................................................... 11(Segment Information) ........................................................................................................................................ 11(Significant Subsequent Events).......................................................................................................................... 14
3. Other Information ...................................................................................................................................................... 18(1) Status of Orders and Revenue.............................................................................................................................. 181

1.

Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the nine months ended March 31, 2023 (July 1, 2022 to March 31, 2023), the Japanese economy wasrecovering due to the effects of various policies as the transition to a new stage of life with COVID-19 progresses.
However, while global monetary tightening, etc. continues, we need to pay close attention to the effects of priceincreases, supply-side constraints, and fluctuations in the financial and capital markets in addition to the risk that thedownside in overseas economies would hold down the Japanese economy.
With regard to the business environment surrounding NIPPON KOEI CO., LTD. (the “Company”) and its
subsidiaries (together, the “Group”), we recognize that the situation is unpredictable. There is an increasing risk of
uncertainty in the international situation such as global inflation and a weak yen triggered by the COVID-19 pandemic
and Russia’s invasion of Ukraine while we are facing global issues that require immediate action, such as climatechange and income disparities. In the Consulting Business, the domestic market is expected to continue to securepublic work budgets for national resilience and regional revitalization and the market is expected to expand especiallyin the field of disaster prevention and mitigation. In the overseas market, the Japanese government is aiming tostrengthen budgets with “Infrastructure System Overseas Promotion Strategy 2025” as an axis, but business
operations are expected to be difficult due to the delay in formation of some projects caused by the impact of COVID19 and review of the business in association with inflation and yen depreciation. In the Urban & Spatial Development
Business, the need for sustainable urban restructuring, which attracts ESG investment, is increasing in Japan, Europe
and the United States. Also, the need for the urban development business including preparation and maintenance oftransportation-related facilities and peripheral infrastructures is strong in developing countries. In the Energy
Business, new opportunities are expected to be created leading to competition toward the target of carbon neutrality
in 2050 in addition to the demand for updating the aging existing equipment in Japan. However, it is necessary toagilely cope with policy change due to the rising global energy cost although the trend of shifting to renewable energy
remains unchanged.
Under such a market environment, we have drawn up the medium-term management plan “Building Resilience2024” to implement three resilience policies, and positioned the period from July 2021 to June 2024, which is firststep of the “NKG Global Strategy 2030,” as a transformation period to make the Group resilient.
As the first resilience policy, we reorganized the conventional five business operations into three domains (Consulting,
Urban & Spatial Development, and Energy) to strengthen the business axis. As the second resilience policy, we will
aim to realize matrix management by transitioning to a holding company structure and preparing and maintaining a
regional management system. As the third resilience policy, we aim to strengthen technological development andhuman resource development toward the establishment of "NKG brand" and "NKG quality." Also, we will promote“well-being management” as a basis for that.
As a result, the Group ended the nine months of the current fiscal year with orders received increased 14.7% year
on year to ¥92,023 million, mainly due to steady progress in the Urban & Spatial Development Business and theEnergy Business. All businesses yielded revenue steadily and increased 7.3% year on year to ¥102,634 million.
Operating profit remained at the level equal to the same period of the previous year, ¥9,520 million, due to the increasein expenses in the Consulting Business and the Urban & Spatial Development Business. Profit attributable to ownersof parent decreased 33.3% year on year to ¥4,725 million due to foreign exchange losses, etc.
Business results for each segment are as follows: As some of our subsidiaries have changed their reportable segments,
effective from the first quarter of the current fiscal year, comparisons with the nine months of the previous fiscal year
are based on the figures that have been reclassified into the new segments. For details of this change in reporting
segments, please refer to "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (5) Primary
Notes to Condensed Quarterly Consolidated Financial Statements (Segment Information) 2. Changes in reportablesegments."2

[Consulting]In the Consulting Business, we worked to utilize new technologies, assure quality and safety and increase
productivity. We also promoted cross-sectional co-creation projects such as those related to river basin flood control,
climate change, SDGs, renewable energy and multi-hazards.
As a result, orders received increased 1.8% year on year to ¥51,318 million and revenue increased 10.0% year on
year to ¥59,737 million due to steady progress in the domestic projects. Operating profit decreased 12.4% year on
year to ¥5,948 million due to an increase in travel costs etc. owing to inflation and increase in business travelers byeasing of entry restrictions in various countries.
[Urban & Spatial Development]
In the Urban & Spatial Development Business, we worked to form urban (re-)development projects centering on
NIPPON KOEI URBAN SPACE CO., LTD. ("NIPPON KOEI URBAN SPACE"), which was established byconsolidating the Urban & Spatial Development Business of the Company and our group company TAMANOCONSULTANTS CO., LTD. (on July 1, 2022).
We also worked to expand business in the U.K. and North American markets and to establish a business foundationin the Asian market through group-wide collaboration.
As a result, orders received increased 32.2% year on year to ¥27,719 million due to orders for large-scale projects
at BDP HOLDINGS LIMITED and its subsidiaries ("BDP"). Revenue increased 3.0% year on year to ¥27,721 million.
Operating profit decreased 24.3% year on year to ¥2,000 million, as expenses associated with the construction of
infrastructure for business expansion increased both in NIPPON KOEI URBAN SPACE and BDP.
[Energy]In the Energy Business, we worked to strengthen the structure of the existing energy-related consulting andengineering projects, build a foundation for energy management projects such as battery storage and aggregation andstabilize the manufacturing projects by strengthening core products and developing new ones.
As a result, orders received increased 46.9% year on year to ¥12,854 million due to orders for large-scale projects
such as EPC project for construction of next-generation energy supply base and project for substation control systems.
Revenue increased 4.8% year on year to ¥14,575 million, and operating profit increased 74.6% year on year to ¥2,869
million by gain on sale of shares of PT. ARKORA HYDRO, a former associated company of the Group, and gain on
investments in securities.
(2) Explanation of Financial Position
Total assets as of March 31,2023, amounted to ¥209,757 million, an increase of ¥35,831 million from the end of theprevious fiscal year. This was mainly due to a ¥16,873 million increase in contract assets.
Total liabilities were ¥126,762 million, an increase of ¥34,805 million from the end of the previous fiscal year. Thiswas mainly due to a ¥30,461 million increase in borrowings.
Total equity was ¥82,995 million, an increase of ¥1,026 million from the end of the previous fiscal year. This was
mainly due to a ¥3,171 million increase in retained earnings.
As a result, ratio of equity attributable to owners of parent to total assets decreased 6.7 percentage points from theend of the previous fiscal year to 38.2%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements
The full-year forecasts remain unchanged from those announced on August 12, 2022 since the performance of Groupfor the first nine months of the current fiscal year is generally progressing within the range of the forecast of Groupat the beginning of the fiscal year in each segment.

32. Condensed Quarterly Consolidated Financial Statements and Primary Notes(1) Condensed Quarterly Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investment property
Investments accounted for using equity method
Retirement benefit asset
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

As of June 30, 2022

As of March 31, 2023

17,971
27,042
26,4503,779
8,290
83,53522,82535,07343,323
2,818
6,320
110,362

41,403
9,067
10,207
7,025
6,250
2,434
3,624
6,423
2,429
1,523
90,390173,926

4(Millions of yen)

50,810
10,204
10,532
6,915
5,049
2,903
3,655
6,197
2,380
745
99,395
209,757

Liabilities and equity
Liabilities
Current liabilities
Borrowings
Lease liabilities
Trade and other payables
Contract liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

As of June 30, 2022

As of March 31, 2023

13,1482,729
10,400
8,837
4,561
2,551
653
12,95755,84044,5882,701
16,918
11,667
3,065
2,069
1,221
9,230
91,462

19,288
6,556
665
3,896
674
4,683
351
36,116
91,956

7,501
6,454
(34)
5,252
58,91478,0883,881
81,969173,926

5(Millions of yen)

18,309
7,779
681
3,722
86
4,473
247
35,299126,762

7,517
6,470
(8)
4,148
62,08580,213
2,782
82,995
209,757

(2) Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income(Condensed Quarterly Consolidated Statement of Profit or Loss)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Share of profit of investments accounted
for using equity method
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before tax
Income tax expense
Profit

For the nine months
ended March 31, 2022
(From July 1, 2021 toMarch 31, 2022)
95,682(64,425)
31,257(21,709)(Millions of yen)
For the nine months
ended March 31, 2023
(From July 1, 2022 toMarch 31, 2023)
102,634(70,373)
32,260(24,066)

488
(709)
9,509
1,212
(348)
10,373(3,265)
7,108

2,494
(1,172)
9,520
239(1,179)8,580(3,051)
5,528

7,083
24
7,108

4,725
802
5,528

470.52470.52313.71
313.71

183

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)64

(Condensed Quarterly Consolidated Statement of Comprehensive Income)For the nine months
ended March 31, 2022
(From July 1, 2021 toMarch 31, 2022)
7,108

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Equity financial assets measured at fair value throughother comprehensive income
Share of other comprehensive income of investments
accounted for using equity method

Total of items that will not be reclassified to profit or loss

Items that may be reclassified to profit or loss
Cash flow hedges
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method

Total of items that may be reclassified to profit or loss
Other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

7(Millions of yen)
For the nine months
ended March 31, 2023
(From July 1, 2022 toMarch 31, 2023)
5,528

278

258

278

259

4
1,335

4
(1,060)

1,380
1,659
8,768

(1,073)
(813)
4,714

8,670
98
8,768

3,950
764
4,714

0

41

1

(18)

(3) Condensed Quarterly Consolidated Statements of Changes in Equity
For the Nine Months Ended March 31, 2022 (From July 1, 2021 to March 31, 2022)(Millions of yen)

Equity attributable to owners of parent

Other components of equity

Share capital
Balance as of July 1, 2021
ProfitOther comprehensive income

Total comprehensive income

Issuance of new shares

Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Dividends

Purchase and disposal of non-controlling interests
Transfer to retained earnings

Total transactions with owners

Balance as of March 31, 2022

Capital surplus

Treasury shares

7,480

6,428

(0)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(1)

-

-

21

-

5
-

-

-

-

26

(5)

6,454

(5)

-

(1)

3,284

Equity attributable to owners of parent

Other components of equity

Balance as of July 1, 2021
ProfitOther comprehensive income

Remeasurementsof defined benefit
plans
-

-

0

Total

2,820
-

1,586

Retainedearnings

7,083-

70,725
7,083

1,586

-

(25)

1,659

Change in scope of consolidation

-

-

-

-

-

Disposal of treasury shares
Dividends

Purchase and disposal of non-controlling interests
Transfer to retained earnings

Total transactions with owners

Balance as of March 31, 2022

-

-

-

-

-

-

-

(1)

(0)

(1)

(0)
-

(0)

4,404

8

-

(5)

(1,128)(1,128)-0(1,128)59,952

-

-

8,768

42
-

(5)

(15)

(1,143)2,051(1,087)2,035

78,307

7,108

-

-

3
-

Total

73

98

Purchase of treasury shares

-

1,145

72,294

24

8,670

42

-

-

1,569

7,083
-

-

-

1,586
-

-

-

0
-

-

-

Non-controllinginterests

Total

53,996-

Total comprehensive income

Issuance of new shares

-

278

-

-

7,501

4

278

(5)

-

1,303

867

-

4

-

-

(30)

-

1,303

-

1,982

-

21

-

Cash flow hedges

Equity financial
assets measured
at fair value
through othercomprehensive
income-21-

Exchangedifferences ontranslation offoreign
operations

-

3,703

-

2,055
-

948

82,010For the Nine Months Ended March 31, 2023 (From July 1, 2022 to March 31, 2023)(Millions of yen)

Equity attributable to owners of parent

Other components of equity

Share capital
Balance as of July 1, 2022
ProfitOther comprehensive income

Total comprehensive income

Issuance of new shares

Change in scope of consolidation
Purchase of treasury shares
Disposal of treasury shares
Dividends

Purchase and disposal of non-controlling interests
Transfer to retained earnings

Total transactions with owners

Balance as of March 31, 2023

Capital surplus

Treasury shares

7,501

6,454

(34)

-

-

-

-

-

-

7,517

4

-

-

-

-

-

-

28

-

-

-

-

(0)

25

(0)

-

(2)

-

-

-

-

-

15

6,470

(8)

-

3,580

Equity attributable to owners of parent

Other components of equity

Balance as of July 1, 2022
ProfitOther comprehensive income

Remeasurementsof defined benefit
plans
-

-

Total

5,252
-

0

-

258

258

-

-

-

15

(1,039)

656

-

4

-

-

(24)

-

(1,039)

-

4,620

-

15

-

Cash flow hedges

Equity financial
assets measured
at fair value
through othercomprehensive
income-15--

Exchangedifferences ontranslation offoreign
operations(775)

Retainedearnings

4,725-

78,088
4,725

(775)

-

-

-

-

-

-

-

-

(327)

-

(327)

(19)

Non-controllinginterests

Total

58,914

-

3,881
802

(38)

587

Total
81,969
5,528

(813)

Total comprehensive income

0

(775)

4,725

3,950

764

4,714

Change in scope of consolidation

-

-

-

-

(1,933)(1,933)28-

28Issuance of new shares

Purchase of treasury shares
Disposal of treasury shares
Dividends

Purchase and disposal of non-controlling interests
Transfer to retained earnings

Total transactions with owners

Balance as of March 31, 2023

-

-

-

-

-

-

(1,882)

(0)

(0)

(0)

-

-

(328)

(328)

4,148

9

-

-

328

(1,554)62,08531(2)(1,882)

-

-

(69)

(0)

139

(1,825)(1,862)-80,213

-

2,782

31

(2)

(1,951)
139-(3,688)82,995

(4) Condensed Quarterly Consolidated Statement of Cash Flows

Cash flows from operating activities
Profit before tax
Depreciation and amortization
Loss (gain) on financial assets measured at fair value throughprofit or loss
Gain on sale of shares of subsidiaries and associates
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted for using
equity method
Loss (gain) on derivatives
Decrease (increase) in trade and other receivables
Decrease (increase) in contract assets
Decrease (increase) in advance payments to suppliers
Decrease (increase) in insurance claims receivable
Decrease (increase) in long-term accounts receivable - other
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in consumption taxes payable
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Increase (decrease) in accounts payable - bonuses
Increase (decrease) in provisions
Other
Sub total
Dividends received
Interest received
Proceeds from insurance income
Interest paid
Head office relocation expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and investment
property
Purchase of intangible assets
Purchase of other financial assets
Proceeds from sale and redemption of other financial assets
Proceeds from sale of shares of subsidiaries and associates
Payments for acquisition of subsidiaries and associates
Collection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Capital contribution from non-controlling interests
Dividends paid
Other
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period

For the nine months
ended March 31, 2022
(From July 1, 2021 toMarch 31, 2022)

10,373
3,678

(9)

8,580
3,859

(667)

(375)
348

(1,021)
(307)
483

(489)
(10,546)(16,563)(2,433)
(770)
(211)
2,769
(767)
(3,423)(264)(1,960)
1,098
678
(474)
(19,526)
115
257
2
(311)
(3,074)(22,536)

2(8,234)(16,864)
(510)
2,534
2,752
(1,347)(1,488)(3,003)
655
(15)
361
(14,235)
151
658
100
(411)
(74)
(3,739)(17,551)(1,248)(3,427)

(183)

(518)
245

(272)
(564)
98
(258)
(10)
(2,530)207,500(172,034)
1,719(6,590)(2,257)2,087(1,146)(39)
29,237
4,170
17,838332
22,342

10(Millions of yen)
For the nine months
ended March 31, 2023
(From July 1, 2022 toMarch 31, 2023)

(4)

(397)
28

(178)
(358)
671
428
(851)
558
3
(3,521)

374,500(343,027)
2,875(3,654)(2,305)139(1,897)25
26,655
5,582
17,971(728)
22,825(5) Primary Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.

(Notes on Significant Changes in Shareholders’ Equity)
Issuance of restricted stock compensation
In accordance with the resolution of the Extraordinary Board of Directors Meeting held on September 29, 2022,
we issued new shares as restricted stock compensation for directors on October 28, 2022. As a result, share capitaland capital surplus increased by ¥15 million, respectively, during the nine months ended March 31, 2023.
Subsequently, share capital and capital surplus as of March 31, 2023 were ¥7,517 million and ¥6,470 million,
respectively.
(Segment Information)
1. Outline of reportable segments(1) Method of determination of reportable segments
Reportable segments of the Group are determined as segments whose separate financial information isaccessible from among the constituent units of the Group and are periodically used by the Board of Directors todetermine the allocation of management resources and to evaluate achievements.
The Group has business management divisions separated by type of products and services at the head office.
Each business management division formulates a comprehensive strategy based on the products and services
and engages in conducting business activities.
In line with the above, the Group is composed of segments divided by products and services, with each business
management division serving as the foundation, and the three reportable segments are “Consulting”, “Urban &Spatial Development” and “Energy.”(2) Types of products and services by reportable segment
The “Consulting” engages in business within and outside Japan such as site surveying, planning,
evaluation/assessment, designing, and construction management. It operates in the fields of rivers and water
resources, water and sewage, agricultural and rural development, dams and power generation, transportation(roads, railroads, ports and airports), urban and regional development, geology, disaster prevention, sand control,
environment, information systems, etc.
"Urban & Spatial Development” engages in the structuring, planning, design, and operation of urban and spatial
development business.
The “Energy” engages in manufacturing and sale of electric power equipment and control devices, planning,
design, construction and construction management of mechanical, electrical and communication facilities aswell as the energy management business utilizing distributed energy resources.
2. Changes in reportable segments
On July 1, 2022, the Urban & Spatial Development Business of the Company was transferred by succession to
our consolidated subsidiary TAMANO CONSULTANTS CO., LTD. through a company split (simplified
absorption-type split), and the trade name of the said company was changed to NIPPON KOEI URBAN SPACE
CO., LTD. In association with the organizational restructuring due to the relevant company split, NIPPON KOEIURBAN SPACE and its subsidiary TAMANO ECOST CO., LTD. and our consolidated subsidiary NAKAZEKAMP CO., LTD. have had their segment classification changed from the “Consulting” to the “Urban & Spatial
Development.”
Please note that segment information for the third quarter of the previous fiscal year is provided based on the
new reporting segments.
11

3. Information about reportable segments
The internal intersegment revenue or transfers are based on the transaction price determined after pricenegotiations taking into consideration the market price, etc.
4. Major change in segment assets
Due to the progress of the European battery project, assets of “Energy” increased by ¥9,356 million from theend of the previous fiscal year.
For the nine months ended March 31, 2022 (from July 1, 2021 to March 31, 2022)
Urban & Spatial
Development

Consulting

Revenue

Revenue from external customers

Intersegment revenue and transfers
Segment profit (loss)

Total

26,904

13,906

95,10854,576

27,06814,134

95,779164

6,788

Finance income

Energy54,298278

Total(Millions of yen)

Reportable Segments

2,644

228

1,642

670

11,076

Finance costs

Profit before tax
Others(Note1)

Revenue

Revenue from external customers

Intersegment revenue and transfers
Total

Segment profit (loss)
Finance income

Adjustments(Note 2)

Total

574

95,682

1,153

96,933579

1,250(1,551)

9,524

Finance costs

Consolidated-

95,682(1,250)95,682(1,250)
(14)

-

9,509

1,212

(348)

Profit before tax

10,373

Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues.
2. "Adjustments" is mainly elimination of transaction between segments.

12

For the nine months ended March 31, 2023 (from July 1, 2022 to March 31, 2023)
Urban & Spatial
Development

Consulting

Revenue

Revenue from external customers

Intersegment revenue and transfers
Segment profit (loss)

Total

27,721

14,575102,034

60,13028,094

14,807103,032

373

5,948

Finance income

Energy59,737392

Total(Millions of yen)

Reportable Segments

2,000

232

2,869

998

10,818Finance costs

Profit before tax
Others(Note1)

Revenue

Revenue from external customers

Intersegment revenue and transfers
Total

Segment profit (loss)
Finance income

Adjustments(Note 2)

Total

600

102,634

1,332

104,365

732

1,730

(1,288)

9,530

Finance costs

Consolidated-

102,634(1,730)102,634(1,730)
(9)

-

9,520
239

(1,179)Profit before tax

8,580

Notes: 1. The category of “Others” includes revenues from constituent units that have not earned revenues or earn only incidental
revenues.
2. "Adjustments" is mainly elimination of transaction between segments.

13

(Significant Subsequent Events)
At the Board of Directors meeting on April 14, 2023, the Company approved conclusion of Absorption-type
Demerger Agreement with Nippon Koei Business Partners Co., Ltd. (hereinafter referred to as “NKBP”) and Nippon
Koei Energy Solutions Co., Ltd. (hereinafter referred to as “NKES”) respectively as follows. (Hereinafter “NKBP”
and “NKES” are collectively referred to as “Counterparts.”)
1. Counterparts of the Absorption-type Demerger(1) Company name, location of the head office, name of the representative, amount of capital, amount of net assets,
amount of total assets, and description of businessCompany name
Nippon Koei Business Partners Co., Ltd.
Location of head office 5-4 Kojimachi, Chiyoda-ku, Tokyo
Name of representative Yasushi Hirusaki, Representative Director and President
Amount of capital
10 million yen
Amount of net assets
10 million yen
Amount of total assets
10 million yen
Description of business Business management, etc. (commissioned or agency business in accounting,human resource, and general affairs tasks; planning and promotion of sales andlocal strategies as well as commissioned or agency business in the related tasks;and planning and promotion of engineering, IT, and human resource strategies aswell as commissioned or agency business in the related tasks; etc.)
Before the Absorption-type Demerger Agreement is put into effect (July 1, 2023),
NKBP is preparing for the start of business.
Company nameLocation of head office
Name of representative
Amount of capital
Amount of net assets
Amount of total assets
Description of businessNippon Koei Energy Solutions Co., Ltd.
5-4 Kojimachi, Chiyoda-ku, Tokyo
Hiroshi Yokota, Representative Director and President
50 million yen
50 million yen
50 million yen
Energy business (manufacturing and sales of electric power equipment andcontrol systems; planning and designing of electromechanical equipment
and communication facilities; construction work; supervising construction
work; and energy management utilizing decentralized energy resources)
Before the Absorption-type Demerger Agreement is put into effect (October 1,2023), NKES is preparing for the start of business.

(2) Revenue, operating profit, ordinary profit, and net profit of the fiscal years ended in the last three years
Since the Counterparts are companies to be launched, revenue, operating profit, ordinary profit and net profitof the fiscal years ended the last three years are not described.
(3) The name of the chief shareholder and percentage of shares held
Name of chief shareholder
Percentage of shares held
Nippon Koei Co., Ltd.
100%

14

(4) Capital, personnel and business ties with the reporting company
Capital ties
The Counterparts are consolidated subsidiaries wholly owned by the Company.
Personnel ties
Some concurrently hold posts of officers in both companies.
Business ties
There are no ties at present
2. Objectives of the Absorption-type Demerger
As announced in “Announcement of Transition to a Pure Holding Company Structure through a Share Transfer”
dated August 12, 2022, the Company plans to establish Integrated Design & Engineering Holdings Co., Ltd.
(hereinafter referred to as “Holdings Co.”) by transferring shares on July 3, 2023, and make a shift to a holding
company structure by splitting part of the Company’s businesses.
To facilitate the preparation for splitting part of the Company’s businesses through a demerger, the Company
has established NKBP and NKES (Both of them are subsidiaries wholly owned by the Company).
In addition, an Absorption-type Demerger Agreement is to be concluded with the Company being the Splitting
Company and NKBP being the Successor Company (hereinafter referred to as “Absorption-type Demerger 1”)
to hand over businesses performed by the Company’s Corporate Management Headquarters, Business
Promotion Headquarters and Business Strategy Headquarters. Another Absorption-Type Demerger Agreement
is to be concluded with the Company being the Splitting Company and NKES being the Successor Company(hereinafter referred to as “Absorption-type Demerger 2”) to hand over businesses performed by the Company’s
Energy Headquarters (hereinafter, the two Absorption-type Demerger Agreements are referred to as “theAbsorption-type Demerger Agreements”).
The following is a summary of the above.
Absorption-type
Demerger Agreements
Absorption-type
Demerger 1

Successor
Company
NKBP

Absorption-type
Demerger 2

NKES

Businesses to be handed over

Date of effectBusiness performed by theCompany’s Corporate Management
Headquarters, Business Promotion
Headquarters and Business Strategy
Headquarters
Businesses performed by theCompany’s Energy Headquarters

July 1, 2023

October 1, 2023

3. Method of the Absorption-type Demerger, details about shares in the Absorption-type Demerger, and other detailsof the Absorption-type Demerger Agreements(1) Method of demerger
This is an Absorption-type Demerger in which the Company is the Splitting Company and NKBP and NKES
are Successor Companies, and they are to be subsidiaries wholly owned by the Company.
(2) Details about shares in the Absorption-type Demerger
At the Absorption-type Demerger, both Successor Companies are to issue 1,000 new ordinary shares, andallocate them to the Company.

15(3) Other details of the Absorption-type Demerger Agreements
A. Schedule for the Absorption-type Demerger
Board of Directors meeting to approve the Absorption-type Demerger Agreements

Date of conclusion of the Absorption-type Demerger Agreements
Date of effect for the Absorption-type Demerger 1
The Company’s shareholders’ meeting to approve Absorption-type Demerger 2
Date of effect for the Absorption-type Demerger 2

April 14, 2023
May 8, 2023
July 1, 2023 (scheduled) (note1)
July 3, 2023 (scheduled) (note2)
October 1, 2023 (scheduled)

Notes: 1. Absorption-type Demerger 1 falls within the category of simple demerger specified in the Corporation Law and will be
put into effect without obtaining approval at the Company’s shareholders’ meeting.
2. The base date system for the voting rights at the annual shareholders' meeting is to end on June 30, 2023, and Holdings Co.
owns one voting right at the shareholders’ meeting on the day.

B. Increase in capital due to the Absorption-type Demerger
There will be no increase or decrease in the capital of the Company associated with the Absorption-type Demerger
Agreements.
C. Splitting Company’s stock acquisition right and its stock acquisition right attached to corporate bonds
There is no relevant information.
D. Rights and obligations to be handed over to the Successor Companies
The Successor Companies are to take over assets, debts, contracts and other rights and obligations related to thebusinesses to be handed over on the date of effect within the range specified in each Absorption-type Demerger
Agreement.
4. Rationale for the calculation of shares in the Absorption-Type Demerger
The Counterparts are subsidiaries wholly owned by the Company, and all of the shares issued by theCounterparts at the Absorption-type Demerger will be allocated to the Company. Therefore, the number of shares
to be allocated was decided through a discussion between the Company and the Counterparts.
5. Assets and debts to be split and book values
Absorption-type Demerger 1
AssetsLiabilities
Current assets
1,623 million yen Current liabilities
633 million yen
Non-current assets
975 million yen Non-current liabilities
667 million yen
Total
2,598 million yen Total
1,301 million yen
Note: The above values were calculated based on the balance sheet as of December 31, 2022. Therefore, theactual amount to be handed over will be adjusted based on the increase and decrease by the date of effect.
Absorption-type Demerger 2
AssetsLiabilities
Current assets
14,995 million yen Current liabilities
8,973 million yen
Non-current assets
13,825 million yen Non-current liabilities
6,035 million yen
Total
28,820 million yen Total
15,008 million yen
Note: The above values were calculated based on the balance sheet as of December 31, 2022. Therefore, theactual amount to be handed over will be adjusted based on the increase and decrease by the date of effect.

16

6. Name of the company that become the successor after the Absorption-type Demerger, location of the head office,name of representative, amount of capital, amount of net assets, amount of total assets, and description of businessCompany nameLocation of head office
Name of representative
Amount of capital
Amount of net assets
Amount of total assets
Description of businessCompany Name
Location of head office
Name of the representative
Amount of capital
Amount of net assets
Amount of total assets
Description of businessNippon Koei Business Partners Co., Ltd.
5-4 Kojimachi, Chiyoda-ku, Tokyo
Yasushi Hirusaki, Representative Director and President
100 million yen (To be increased on the date of effect for the Absorptiontype Demerger 1)
1,297 million yen (Estimate)
2,598 million yen (Estimate)
Business management, etc. (commissioned or agency business inaccounting, human resource, and general affairs tasks; planning andpromotion of sales and local strategies as well as commissioned or agency
business in the related tasks; and planning and promotion of engineering,
IT, and human resource strategies as well as commissioned or agency
business in the related tasks; etc.)
Nippon Koei Energy Solutions Co., Ltd.
5-4 Kojimachi, Chiyoda-ku, Tokyo
Hiroshi Yokota, Representative Director and President
2,900 million yen (To be increased on the date of effect for the Absorptiontype Demerger 2)
13,812 million yen (Estimate)
28,820 million yen (Estimate)
Energy business (manufacturing and sales of electric power equipment andcontrol systems; planning and designing of electromechanical equipment
and communication facilities; construction work; supervising construction
work; and energy management utilizing decentralized energy resources)173. Other Information(1) Status of Orders and Revenue

Category/Segment

By period_

For the nine months ended
March 31, 2023
AmountComposition(%)(Millions of yen)

64.6

14.0

14,343

10.9

92,023100.0

131,166

100.0

27,72227.0

34,787

26.6

62.9 (note 1) 51,318

8,751

10.9

12,854

Total

80,215100.0

Urban & Spatial Development

26,086

27.3

Urban & Spatial Development
EnergyOthers

20,973
78

Revenue 1

Consulting
EnergyOthers58,141
10,881
574

26.1
0.1

60.7
11.4

0.6

For the fiscal year ended
June 30, 2022
AmountComposition(%)(Millions of yen)
84,71750,412

Orders received

Consulting

For the nine months ended
March 31, 2022
AmountComposition(%)(Millions of yen)

27,719132

62,595
11,716
600

55.8

30.1
0.1

61.0
11.4
0.6

31,981
123

80,29914,804
783

24.4
0.1

61.5
11.3
0.6

Total

95,682100.0

102,634

100.0

130,674

100.0

Urban & Spatial Development

26,90428.1

27,721

27.0

36,091

27.6

Revenue 2

Consulting
EnergyOthersTotal

13,906574

By period_

Foreign exchange andother adjustments

Category/Segment

54,298Consulting

Urban & Spatial Development
EnergyOthersTotal

95,682

56.8
14.5

0.6

100.0

For the nine months ended
March 31, 2022
AmountComposition(%)(Millions of yen)
930

14,575600

102,634

58.2
14.2
0.6

100.0

For the nine months ended
March 31, 2023
Composition
Amount(%)(Millions of yen)
(2,858)

968

(255)

4

18,799783

130,674

57.4
14.4
0.6

100.0

For the fiscal year ended
June 30, 2022
AmountComposition(%)(Millions of yen)
6,761

(2)

-

(3,064)75,000

1,758

49

-

1,903

59,737-

8,518

122,685

71.5

126,73969.7

140,734

72.4

Energy21,218

12.4

24,63313.5

23,00411.8

Outstanding Orders

Consulting

Urban & Spatial Development
OthersTotal

27,672-

171,576

16.1
-

100.0

30,511
1

181,884

16.8
0.0

100.0

30,769-194,508

15.8

100.0

-

Notes: 1. The above amounts include the outstanding orders at the start of consolidation of ASAP MOBILITY SDN. BHD. which wasconsolidated from the first quarter of the current fiscal year.
2. The above amounts are for external customers, and do not include inter-segment transactions or transfers.
3. Revenue 1 is by segment which received orders. Revenue 2 is by segment which provided services.
4. Foreign exchange and other adjustments include those related to exchange differences and outstanding order revisions.
5. As disclosed in "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (5) Primary Notes toCondensed Quarterly Consolidated Financial Statements (Segment information) 2 Changes in reportable segments," the Grouphas changed its reportable segments since the first quarter of the current fiscal year. The figures for the nine months ended
March 31, 2022 and for the fiscal year ended June 30, 2022 have been provided based on the new reporting segments.

18