Supplementary Materials for theSummary of Financial Reports
1Q FYE J
1Q,
June 30
30, 2017
November 11, 2016
Nippon Koei Co., Ltd.
This presentation is provided for informational purposes only and is not intended to solicit any action.
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.

1Q Results for FYE June 30, 2017
FYE16/6 1Q
Results

FYE17/6 1Q
Resultsyoyyoy(%)

ReferenceValues
FYE17/61Q(*2)（Millions of yen）

yoy(%)

Orders(*1）

21,55535,915

14,360166.6%

33,109153.6%Net sales

8,811

12,2823,470

139.4%

9,021

102.4%

Gross profit

2,012

3,903

1,891

194.0%

2,466

122.5%

Operating Income- 2,050- 1,663
1 663

386

-

- 1,740
1 740-

Ordinary Income- 2,070- 1,569

501-

Profit attributable toowners of parent- 1,519
1 519- 1,208
1 208

311-–––(*2) Excluded the Urban & Spatial
Development segment

Owing to large-scale project orders in Cairo, Egypt, orders saw a substantial increase over that of the same
period of the previous year.
Net sales of existing business were on the same level as the one of the same period from the previous year
year, while
new sales recorded for BDP showing a substantial increase.
Operating income saw losses since the recording of sales and profits are mostly recorded within the second halfof the year. Good performance of International Consulting business and Power Engineering business, however,exerted an improvement over the figures.

(*1) We have changed the calculation standard for orders starting this period. For details, please see page 9. Results for 1Q of FYEJune 30, 2016 are also based upon figures calculated according to the same standard.
2

Results by Business Segment（Orders）
FYE16/6 1Q
Results(Millions of yen)

FYE17/6 1Q
Resultsyoyyoy(%)

Orders(*1)
Orders(1)21 55521,55535 91535,91514 36014,360166 6%
166.6%

Domestic Consulting

11,896

15,5893,693

131.0%

International Consulting

5,850

13,648

7,798233.3%Power Engineering

3,808

3,866

58

101.5%

Urban & Spatial Development-2,8062,806-

Others044552 0%552.0%(*1) We have changed the calculation standard for orders starting this period. For details, please see page 9. Results for 1Q of FYEJune 30, 2016 are also based upon figures calculated according the same standard.
■Domestic Consulting■International Consulting■Power Engineering■ Urban & Spatial Development

20,00020,000

5,000

5,000

15,58915,00015,00013,648

4,000

3,808

3,866

4,000

11,896
3,000

3,000

2,000

2,000

1,0001,000

2,806

10,00010,000

5,850
5,000

5,00000
2016.6 1Q

2017.6 1Q0
2016.6 1Q

2017.6 1Q0
2016.6 1Q

2017.6 1Q

2016.6 1Q

2017.6 1Q
3Results by Business Segment （Sales）
FYE16/6 1Q
Results（Millions of yen）

FYE17/6 1Q
Resultsyoyyoy(%)

8 811
8,811

12 282
12,282

3 470
3,470

139 4%
139.4%

Domestic Consulting

1,455

1,246

- 208

85.7%

International Consulting

3,625

3,467

- 157

95.7%

Power Engineering

3,558

4,134

576

116.2%-

3,260

3,260-

Real Estate Leasing

145116

- 28

80 5%
80.5%

Others275528202.1%

Net Sales

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

2,000

5,000

5,000

5,000
4,134

1,500

1,455

4,000

3,625

1 246
1,246

3,467

4,000

4,000

3,558

3 260
3,260

3,000

3,000

3,000

2,000

2,000

2,000

1,000

1,000

1,000

1,000
500

00
2016.6 1Q

2017.6 1Q

02016.6 1Q

2017.6 1Q0
2016.6 1Q

2017.6 1Q

2016.6 1Q

2017.6 1Q
4Results by Business Segment （Operating income）
FYE16/6 1Q
Results（Millions of yen）

FYE17/6 1Q
Resultsyoyyoy(%)

Operating Income- 2,050
2 050- 1,663
1 663386-

Domestic Consulting- 2,082- 2,145- 63-International Consulting

- 146

75

222-556806

249

144.8%-7676-

Real Estate Leasing

11291

- 20

81 5%
81.5%

Others/Reconciliations

- 490

- 568

- 77

-Power Engineering
Urban & Spatial Development■ Domestic Consulting
2016.6 1Q

2017.6 1Q0■ International Consulting■ Power Engineering■ Urban & Spatial Development100

1,00010075

50‐5005000‐1,0002016.6 1Q‐50‐1,500‐100‐2,000
2 000‐2,082‐2,500‐2,145‐150‐200806800‐146

2017.6 1Q600556

76806040040200

2000
2016.6 1Q

2017.6 1Q

2016.6 1Q

2017.6 1Q5

Overview of Performance by Business Segment (1)Domestic Consulting–––The amount of orders exceeded the one for the same period of the previous year owing to the increase of orderplacement from clients and our marketingpg efforts. The acquisition
qof overseas large-scalegbusiness orders
remarkably contributes to the result. (*The order of Cairo Metro project, approximately JPY 2 billion, acquired by
Nippon Civic Consulting Engineers Co., Ltd., is recorded within Domestic Consulting.)Net sales fell short compared to the same period of the previous year as a result of increasing number of projects
that are not at the stage of completion and carried forward.
Operating income also showed a slight decline due to a decrease in sales. The initiative of productivity
improvement, however, will steadily promote a favorable turn of the profitability.

International Consulting–––

Orders substantially exceeded the one for the same period of the previous year owing to the contract of large-scale
project.(*The order of Cairo Metro project, approximately JPY 8 billion, acquired by Nippon Koei Co., Ltd., is recorded )Net sales saw figures on the same level as the previous year, with the steady acquisition of projects primarily of the trafficand transport sectors in Asia.
Operating income turned into the black as of the end of 1Q, owing to the increase in number of large-scale projects that
got into the stage of construction supervision.

Power Engineering–––

The amount of orders is at the same level as the one of the same period in the previous year, with a strong demand for
updates and renovations of transformer and power generation facilities.
Net sales exceeded the one for the same period of the previous year, owing to the completion of construction for
multiple projects,
projects such as of a large
large-scale
scale substation control systems
systems.
Operating income exceeded the one for the same period of the previous year, with the progression of the operational
efficiency improvement initiatives.
6

Overview of Performance by Business Segment (2)Urban & Spatial Development–––

Orders showed smooth progress vis-à-vis the yearly plan.
Whil there
Whilehwere partial
i l concerns aboutb
theh iimpact off B
Brexit,i net sales
l transitionediid ffavorably
bl withi h an approximatelyil
5% increase (in GBP) over the same period of the previous year.
Operating income was in the black even with the amortization of goodwill and depreciation of intangible fixed assets.
FX rate for 1Q results: 1 GBP = 154.3 JPY(R t used(Rated iin ththe FYE JJune 3030, 2017 planl iis 1 GBP = 160 JPY)

*Consolidated results including BDP are done with a 3-month lag. Thus, consolidated settlement of 1Q (July-Sept 2016)
are of the three-month period of April-June 2016.

BDP Manchester Studio Name
BDP Holdings Limited
 Location
Manchester, UK Sales£ 84.4 million （FYE15/12）
 EBITDA£ 8.5
8 5 million （FYE15/12）
 Amortization expenses:Amortization expenses for FYE June 30, 2017 are approximately JPY
1 billion- Amortization of goodwill: Approximately JPY 500 million * 20 year
- Other intangible fixed assets: Just over JPY 500 million

7

FYE 17/6 Forecast
No changes have been made to the forecast for the entire FYE 17/6 period.
（Millions of yen）

FYE 17/6Forecast

FYE 16/6Results

Ordinary income4,365

104,000
105,000
45 00045,00026,00018,50014,000
6,000
3,200
1,600
3,100
600
6,300

Loss attributable toowners of parent

1,823,

3,600

Orders

87,768Net sales

81,865- Domestic Consulting

40 77840,778- International Consulting

22,070- Power Engineering

17,522- Urban & Spatial Development-

Operating income

4,723- Domestic Consultingg2,956,956- International Consulting

1,156- Power Engineering

3,048- Urban & Spatial Development-yoyyoy(%)

16,231118.5%

23,134128.3%

4 221
4,221

110 4%
110.4%

3,929

117.8%

977

105.6%

14,000-1,276127.0%

243

108.2%

443

138.3%

51

101.7%

600

-

1,934

144.3%

1,776,197.4%* Note: Net sales and operating income are exclusively consisted of the main segments of Domestic Consulting, International Consulting ,Power Engineering and Urban & Spatial Development. Net sales and operating income also include the Real Estate Leasing segment, etc.
8

(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

 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 currentperiod(*) 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 .
9(TOPIC) Cairo Metro Work ProjectConsulting work for improvement of the Cairo Metro Line 4 Phase #1
 In the greater Cairo area of Egypt, making improvements to the subway inorder to alleviate congestion is a challenge. There are many buried objects /historical monuments to be found underground. As such, methods ofconstruction which strike a balance between development and conservation
are required.

Cairo Airport

Cairo

Our project area

 For this project, the Special Terms for Economic Partnership (STEP) ofJJapaneseODA hhave bbeen appliedli d andd we’re’ constructingt ti a subwayb((whichhi hconsists of 16 stations and is around 19 kilometers in length) that joins
central Cairo with the pyramid district and utilizes Japanese railway
technologies.

The Grand EgyptianMuseumGiza

Phase #1 of the Cairo
Metro Line 4 (17.2 KM)
Ph
Phase
#2

[Project overview]
 Contract period: 9 years starting in 2016
 Contract amount: Our group accounts for approx. JPY 10billion out of JPY 14.1 billion(NK - Approx. JPY 8 billion; NCC – Approx. 2 billionbillion*）） Work content:(1) Bid support(2) Construction supervision(3) Oversight and support for
operations and maintenancemanagement■Characteristics■Characteristics:(1) An underground line crossing the Nile River more than
400 meters in length, and with most of it being built
below the pyramid street.
(2) Deployment of the shield construction method(3) Security commitment for passengers by introducing
Japan’s high standard of disaster prevention

StationPyramids

Ring Road

Sta. 1

ProfileEl Giza
Flyover(IntermediateShaft)Sta. 2

Ring Road
Sewage
Under
Pipe-pass
Canal

Sta. 3Sta. 4Sta. 5

Metro Line 2& ENR Line
Pedestrian
Tunnel

CanalSta. 6Sta. 7

El RayTunnelMetroLine 1

Under-pass
CanalSta. 8El NilFlyover

Under PassRiver
Nile

Sewage Tunnel

Sta 17Sta.
Turn-back Point

Sta. 12Sta. 9Sta. 10

Sta. 11

Sta. 15
Sta. 13

Sta. 16

Sta. 14• NK: Nippon Koei
(recorded within the International Consulting segment)• NCC:NCC Nippon
Ni
Ci
Civici C
Consultinglti Engineers
E i(recorded within the Domestic Consulting business segment)

10(TOPIC) BDP project received BCI Award
Alder Hey Children’s Hospital in Liverpool
Alder Hey Children’s Hospital in Liverpool (a BDP project) was presented with the British Construction Industry(BCI) Award after being selected as this year’s
year s best community facility in the UK.

The wavy contour of Alder Hey Children’sChildren s Hospitalis made to rise up and out of a park. The building isa symbolic landmark in Liverpool.
In receiving the BCI Award, the building wasevaluated as the most remarkable community
facility, making for an innovative, trailblazing project
which blends together engineering and architecture.

11