Supplementary Materials for theSummary of Financial Reports
1Q, FYE June 30, 2020
November 13, 2019

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 other expectations implied or ex pressed in thispresentation.

1Q Results for FYE June 30, 2020
Net sales increased as all segments performed well. Operating loss was reduced
due to an improvement in the profitability of Domestic Consulting and Urban &Spatial Development.

(Millions of yen)FYE19/6
1Q
Results

FYE20/6
1Q
Results

YoY Change
Amount%Orders28,891

29,563672

102.3%Net sales

17,72924,8947,165

140.4%

Gross profit

4,503

5,837

1,334

129.6%

Operating Income△1,962△1,176785-

Ordinary Income△2,061△935

1,125-

Profit attributable toowners of parent△1,654△6381,015-■Orders received were higher than in the same period of the previous year as Power Engineering andUrban & Spatial Development performed well despite delays in the recovery of International Consulting.
■Net sales increased year-on-year in all segments.
■Operating loss was reduced year-on-year due to a reduction in losses in Domestic Consulting and a returnto profitability in International Consulting and Urban & Spatial Development, despite increased losses inPower Engineering and Energy.
■Quarterly net loss was reduced due to an increase in operating income and an improvement in nonoperating expenses.
2

Results by Business Segment (Orders)FYE19/6
1QResults（Millions of yen）

FYE20/6
1QResults

YoY Change
Amount%Orders28,891

29,563672102.3%

Domestic Consulting

14,26614,213△5299.6%

International Consulting

7,431

6,225

△1,205

83.8%

Power Engineering

1,902

3,674

1,772

193.2%

Urban & Spatial Development

5,126

5,385258

105.0%

134

31△10223.7%

Energy■Domestic Consulting■International Consulting■Power Engineering

14,266 14,213

7,431
6,225

■Urban & SpatialDevelopment■Energy

5,126 5,385
3,674
1,902
134

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q19/6 20/6
1Q 1Q

31

19/6 20/6
1Q 1Q
3

Results by Business Segment (Net sales)
FYE19/6
1Q
Results（Millions of yen）

Net sales
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate/Others■Domestic Consulting■International Consulting

FYE20/6
1Q
Results

YoY Change
Amount17,729
5,749
5,111
3,088
3,291
213
273

24,894
10,073
6,263
3,365
4,487
414
290

■Power Engineering■Urban & SpatialDevelopment%

7,165
4,323
1,151276
1,19520016140.4%
175.2%
122.5%
109.0%
136.3%
193.8%
106.2%■Energy10,073

5,749

6,263
5,111

4,487

3,088 3,365

3,291
213 414

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q
4Results by Business Segment (Operating Income)
FYE19/6
1Q
Results（Millions of yen）

Operating Income
Domestic Consulting
International Consulting
Power Engineering

Urban & Spatial Development
EnergyReal Estate/Others■Domestic Consulting■International Consulting

19/6 20/6
1Q 1Q

33

FYE20/6
1Q
Results

YoY ChangeAmount△1,962△1,511△33138△21△36△497△1,176△880
3334312△96△580■Power Engineering■Urban & SpatialDevelopment

138%78563167△103333△59△8225.0%-■Energy31234△ 33△ 21△ 36 △ 96

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

△ 880
△ 1,511

19/6 20/6
1Q 1Q

19/6 20/6
1Q 1Q

5

Overview of Performance by Business Segment
Domestic Consulting–––

Orders received were at the same level as the same period of the previous year due to the sustained
strength of orders for technology proposal-based projects related to the national government.
Net sales increased due to continued efforts and steady progress in projects related to national landresilience, as well as the expansion of the scope of application of the percentage-of-completion method.
Operating loss was reduced with an increase in net sales.

International Consulting–––

Although orders for JICA research projects have been on a recovery trend, orders received were lower
than those of the same period of the previous year, when large projects were received.
Net sales increased due to steady progress in projects and the expansion of the scope of application ofthe percentage-of-completion method.
Operating loss turned positive as net sales increased.

Power Engineering–––

Orders received were significantly higher than the same period of the previous year due to orders forlarge-scale power plant construction projects and other factors.
Net sales increased due to the steady processing of orders in hand.
Operating income decreased due to the impact of cost-preceding construction projects.

6Overview of Performance by Business Segment
Urban & Spatial Development– Orders received were higher than in the same period of the previous year due to strong
orders received from public facilities such as hospitals and universities.
– Net sales increased due to steady performance in the refurbishment of the Palace ofWestminster and in-hand projects.
– Operating loss turned positive due to the strong performance of the new Canadian
consolidated subsidiary consolidated to our group in the third quarter of the previous
fiscal year, in addition to the improved profitability of BDP.
* The fixed exchange rate applied to the results for the 1st quarter of FYE June 30, 2020: 1 GBP = 131.50 JPY (the rate used in the planfor FYE June 30, 2020 was 1 GBP = 144.27 JPY)** The amount of amortization expense of Urban & Spatial Development business for FYE June 30, 2020 is approx. 1 billion JPY(goodwill: approx. 400 million JPY; other intangible fixed assets: approx. 500 million JPY).

Energy– Orders received were lower than in the same period of the previous year due to thedelay in expected orders related to storage batteries in Europe.
– Net sales increased due to progress in the construction of power receiving andtransforming facilities, installation, etc., for two storage battery projects in the UnitedKingdom.
– Operating loss widened due to expenses of European bases, an upfront investment.
7FYE June 2020 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 (%)FYE 19/6
Results
118,085
52,85528,482
15,411
20,510723
108,589
49,59324,928
16,531
15,3597191,456
5,110
4,990
841
2,089
151-365-2,597
5,584
3,318
4.7
5.7

No changes have been made to the forecast forthe entire FYE June 2020 period.

FYE20/6Forecast(Japanese GAAP)

137,400
52,40048,10016,00018,6002,100
127,700
51,30034,50019,60018,800
2,200
1,300
5,800
4,200
2,900
2,200
600
-800
-3,300
6,200
3,600
4.5
6.1

YoY Change
AmountYoY Change%

19,314-455
19,617588-1,9101,376
19,110
1,706
9,571
3,068
3,440
1,480
-156
689-7902,058
110448-434-702
615
281

116.4%99.1%
168.9%
103.8%
90.7%
290.1%
117.6%
103.4%
138.4%
118.6%
122.4%
305.8%
89.3%
113.5%
84.2%
344.6%
105.3%
395.0%
111.0%
108.5%

FYE20/6
Forecast(IFRS)

137,400
52,40048,10016,00018,6002,100
127,700
51,30034,50019,60018,800
2,200
1,300
6,700
4,300
2,900
2,300
1,500
-900
-3,400
4,500
5.2
7.5
8

Project Highlights
Domestic Consulting: Development of a method to create a three-dimensional groundstructure model for infrastructure facility liquefaction assessment
ClientSummaryof project

National Institute for Land and Infrastructure Management, Ministry of Land,Infrastructure and Transport
・Joint research to develop a method for creating a three-dimensional ground structure
model that reflects the liquefaction damage factors of infrastructure facilities andproposing an evaluation method for the liquefaction damage risk of infrastructure
facilities using a hazard map based on this method.
・Amount of orders received: 180 million yen (for Nippon Koei / 750 million yen in total)

Diagrams for improving the accuracy of the hazard map
In the past3D ground structure modelingHigh accuracy hazard map

Estimation based on
microtopography, earthquake groundmotion, empirical formula, etc.

Estimation of a three-dimensional groundstructure by existing ground information andadditional investigations (geophysicalexplorations, drilling surveys, etc.)

Example of results: Liquefaction
evaluation considering a threedimensional ground structure
9Project Highlights
Domestic Consulting: Otsuchi Town, Iwate Prefecture — Management Construction
Manager (CMR) operation
ClientSummaryof project

Otsuchi Town, Iwate Prefecture
Promote efficient and reliable progress of Land Restructuring Projects (5 districts) bysupporting and supplementing the coordination and management operations performedby the Client・Contract period: August 2013 to September 2019
・Amount of orders received: 1.76 billion yen (JV: 2.86 billion yen in total)

District APlanning
MapApril, 2014

April, 201910

Project Highlights
Domestic Consulting: Response to disaster recovery for Typhoon No. 19 (preliminary report)
Summary ofdisaster・"Heavy Rain Special Warning" issued to 13 prefectures, the largest number ever
・The levee collapse was caused by 7 rivers managed by the national government, 43 rivers managed by
prefectural governments, and more than 62,000 buildings were flooded above or below floor level, greatlyexceeding the heavy rain in western Japan in 2018.

Our response

・River-related projects: Responding to about 50 requests for support from the Arakawa Upstream River Office,Nagano, Miyagi, and Fukushima Prefectures
・Disaster prevention-related projects: Responding to about 50 requests for support from national and local
governments in the Kanto and Tohoku regions
・In each case, investigation of the damage situation, analysis of the cause of the damage, examination of thecountermeasure construction, and other measures are being carried out.

Urayama Dam road disaster

Location of the collapsed levee of the Namezu River,the branch river of the Chikuma River11Project Highlights
International Consulting: Luzon Island, Philippines — Preliminary survey on the constructionof a mountain road tunnel
ClientSummary ofproject

JICA
Preparatory cooperation survey for the alternativeroad construction project for the only trunk road(Dalton Pass) connecting Metropolitan Manila andnorthern Luzon Island.
The project aims to build roads that are resistant tonatural disasters by utilizing Japanese technology
for roads that are vulnerable to natural disasters.

Current status of Dalton Pass

International Consulting： The infrastructure design of New Clark City in the Philippines
ClientPhilippine Japan Initiative for CGC

Summary ofproject

We received an order for infrastructure design workfor the construction of a new industrial city aimed at
resolving issues such as traffic congestion andpopulation concentration in Manila, the capital ofPhilippines.
Nippon Koei reviewed the master plan for smart city
development in the new city (about 3,600 ha) to beconstructed and carried out infrastructure designwork.
12Project Highlights
International Consulting: Concluded memorandums of understanding with two ASEAN cities to promotesmart city development.
Summary ofagreement

Memorandums of understanding weresigned for mutual cooperation on smart
city development with Luang Prabang(Laos) and Makassar (Indonesia).
Cooperation on transport in Luang
Prabang and transport and telemedicine
in Makassar will be implemented in thefuture.

Power Engineering: Yusuhara River No. 2 Power Station of Shikoku Electric Power Company — Delivery ofmain equipment
ClientShikoku Electric Power Company

Summary ofproject

The Company received orders for the renewal of water
turbines, generators, and control systems for theYusuhara River No. 2 Power Station (Kochi Prefecture),
as well as for civil engineering design for the foundationof the water turbines, and civil engineering and equipment
installation construction. The work will be conducted
together with Yonden Engineering Company,
Incorporated, as a joint venture (JV) for the first time.
Due to aging, turbines will be replaced with two units of4,235 kW water turbine capacity and scheduled forcompletion in February 2022.
Amount of orders received: 1.53 billion yen in total(Of which, 1.26 billion yen for Nippon Koei)
13Project Highlights
Power Engineering: Bureau of Enterprise, Yamagata Prefecture — Replacement construction of special
high-pressure panels at Shirakawa Power Station
ClientBureau of Enterprise, Yamagata Prefecture

Summaryof project

Renewal construction for 30 kV and 6 kV powerreceiving and distributing facilities at the power
station of the Bureau of Enterprise, Yamagata
Prefecture, due to aging degradation.
For substation-related construction, the firstorder was received from a Bureau of Enterpriseof Prefecture.
Amount of orders received: 120 million yen

30 kV switching equipment

Power Engineering: JR Shikoku — Installation of the rockfall monitoring system
ClientSummary ofproject

JR Shikoku
A system has been installed in the service area of JR
Shikoku, which was damaged by a typhoon in 2018, todetect fallen rocks and debris flows from slopes (naturalground) beside railway tracks. The system consists of asensor unit using a wire switch system and a monitoring
device for transmitting abnormality information.
This system is highly evaluated as a preliminary
construction for permanent measures such as theinstallation of rock fall protection fences, and also fromthe viewpoint of disaster recovery that requires
immediate action.
14Project Highlights
Urban & Spatial Development: Manchester Biomedical Center
Summary ofproject

The BDP design team proposed a 10-story (total floor
space: 25,000 square meters) cancer research center
including a laboratory and other research spaces,
which was selected in September 2019.
The existing building of the Biomedical Center wasgreatly damaged by the fire in 2017 and is currently
being dismantled.
The Center will be built on the site, aiming to become
the world's top cancer research institute.

Urban & Spatial Development: Francis Holland School renovation project
Summary ofprojectA project to renovate the Francis Holland School inLondon, which was founded in 1881 and aims toprovide girls with excellent learning and culturalexperience.
BDP was in charge of design, facility design, structuraldesign, acoustic design, etc. In addition to renovating
and adding the stage arts facility, library, ICT
laboratory, and other facilities to existing schoolbuildings, consideration is given to creating
collaborative spaces for students. Completed in July
2019.
15

Project Highlights
Energy: UK storage battery EPC project at Port of Tilbury — Commercial operationcommenced
Summary Completion testing of the 9 MW storageof project battery EPC project at Port of Tilbury, UK, wascompleted and commercial operationcommenced in November 2019.

NEC Energy Solutions supplied a large-scale
power storage system. Nippon Koei designed
and engineered all electrical equipment
surrounding the power storage system,
procured equipment, conducted electrical andcivil engineering construction, and managed
on-site construction. In addition, Nippon Koei
delivered monitoring equipment manufactured
at the Fukushima Works of Nippon Koei.

16