Supplementary Materials for theFiscal Period Ended June 30, 2018
August 13, 2018

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.

Results for FYE June 30, 2018
Although changes in revenue recognition standards resulted in higher sales andhigher profits, net sales and operating income fell short of targets(Millions of yen)

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


FYE17/6
Results

FYE18/6
Results

YoY Change
Amount%vs. Plan
FYE18/6
Plan
Amount%(Million yen)Orders117,442

104,350 △13,091 88.9% 103,000

Net sales

101,338

106,023

4,685 104.6% 114,000 △7,976

Gross profit

30,93732,3591,421 104.6%

32,000Operating Income

5,464

6,561

1,097 120.1%

7,700 △1,13885.2%

Ordinary Income

5,958

6,721763 112.8%

7,800 △1,078

86.2%

Profit attributable toowners of parent

3,288

4,555

1,267 138.5%

△344

93.0%

4,900

1,350 101.3%

ReferenceValues
FYE18/6※

YoY
Change--93.0%

94,68593.4%

359 101.1%

29,671

95.9%

3,874

70.9%

Orders received:

Orders received were lower than the level of the previous year, in which some large projects were booked, but thiswas in line with forecasts.
Net sales:
Net sales grew year on year due to changes in revenue recognition standards, but weakness in International
Consulting and Power Engineering resulted in targets being not achieved.
Operating income: Net sales grew year on year due to changes in revenue recognition standards, but weakness in International
Consulting and Power Engineering resulted in targets being not achieved.
Ordinary income:Although ordinary income grew year on year, it failed to hit forecasts due to the undershoot at the operating income
level.
Profit attributable to owners of parent: Although profit attributable to owners of parent grew year on year, it failed to hit forecasts due to theundershoot at the operating income level.

* Starting FYE June 30, 2018, the Group has changed the primary method of revenue recognition from the completed-contract method
to the percentage of completion method. For this reason, the results for the FYE June 2018, which were calculated using the former
method (method used until FYE June 2017), are presented for reference purposes.
1Results by Business Segment (Orders)
FYE17/6
Results(Millions of yen)OrdersFYE18/6
Results

YoY Change
Amount%117,442

104,350 △13,091

Domestic Consulting

48,26548,529International Consulting

41,573

26,716 △14,856

Power Engineering

14,087

15,943

1,856 113.2%

Urban & Spatial Development

13,46012,855△60555305

Energy / Others■Domestic Consulting■International Consulting

FYE18/6
Plan

vs. PlanAmount%88.9%

103,000

1,350 101.3%

264 100.5%

46,0002,529 105.5%

30,000 △3,28389.1%

16,000△5699.6%

95.5%

12,000855 107.1%

249 548.2%-■Power Engineering

64.3%

--

■Urban & Spatial Development2

Results by Business Segment (Net sales)%

Reference
ValuesFYE18/6※

YoYChange

vs. Plan(Millions of yen)

FYE17/6 FYE18/6 YoY FYE18/6
Results Results ChangePlan

Net Sales

101,338 106,023 104.6% 114,000 △7,97693.0%

94,685

93.4%

Domestic Consulting

43,516 46,595 107.1%

47,200

△604

98.7%

43,02098.9%

International Consulting

24,491 28,889 118.0%

31,800 △2,910

90.8%

22,951

93.7%

Power Engineering

17,577 15,762 89.7%

21,200 △5,437

74.4%

14,123

80.3%

Urban & Spatial Development

14,347 13,040 90.9%

12,0001,040 108.7%

1,405

1,800

△64

Energy / Real Estate / Others*Amount

1,735 123.5%

96.4%

Starting FYE June 30, 2018, the Group has changed the primary method of revenue recognition from the completed-contract method to the percentageof completion method. For this reason, the results for the FYE June 2018, which were calculated using the former method (method used until FYE June2017), are presented for reference purposes.

■DomesticConsulting.

■International Consulting■Power Engineering■Urban & Spatial Development3

Results by Business Segment (Operating income)
FYE17/6 FYE18/6
Results Results(Millions of yen)
(Million yen)*

FYE18/6
Plan

YoY
ChangeReferenceValues
FYE18/6※

YoY
Change

85.2%

3,874

70.9%

vs. PlanAmount%Operating Income

5,464

6,561

120.1%

7,700 △1,138

Domestic Consulting3,298

4,279

129.7%

3,500

779 122.3%

3,668111.2%

International Consulting

1,887

2,649

140.4%

2,400

249 110.4%

1,12659.7%

Power Engineering

2,683

1,87369.8%

3,500 △1,626

1,352

50.4%

Urban & Spatial Development

81173

213.8%

50

Energy / Real Estate / Others△2,485△2,414-△1,75053.5%

123 347.6%△664-Starting FYE June 30, 2018, the Group has changed the primary method of revenue recognition from the completed-contract method to the percentage ofcompletion method. For this reason, the results for the FYE June 2018, which were calculated using the former method (method used until FYE June2017), are presented for reference purposes.

■DomesticConsulting.

■International Consulting■Power Engineering■Urban & Spatial Development

4Overview of Performance by Business Segment
Domestic Consulting–––

Orders received grew year on year and overshot forecasts, due to an increase in national projects.
Although net sales rose year on year due to an increase in projects carried forward from the previous fiscal year, and changes inrevenue recognition standards, results undershot forecasts.
Operating income exceeded both the previous-year level and forecasts due to the impact of changes in revenue recognition standards
and reductions in unprofitable projects resulting from improvements in quality.

International Consulting–––

Orders received were lower than the level of the previous year, in which some large projects were booked. In addition, results
undershot forecasts due to slippage in contract periods for major projects.
Although net sales rose year on year due to changes in revenue recognition standards, results undershot forecasts as a result ofslippage in contract periods for major projects.
Operating income rose, and overshot forecasts, due to the impact of changes in revenue recognition standards.

Power Engineering–––

Active efforts to win orders bore fruit at electric power companies other than TEPCO, and at public sector projects, so that PowerEngineering increased year on year and was roughly in line with forecasts.
Due to delays in the timing of the receipt of orders for hydroelectric equipment and facilities, which resulted in lower sales, net sales
declined year on year and undershot forecasts.
Operating income fell significantly, and undershot forecasts, as a result of falling sales in high-margin areas, as well as deteriorating
profitability caused by demands for cost cutting.

Urban & Spatial Development–––

Orders received exceeded forecasts due to strength in the UK operations.
Because BDP’s previous fiscal year consisted of 15 months, net sales declined year on year but were above forecasts.
Operating income rose year on year, and exceeded forecasts, due to strength in the UK operations.

*The actual exchange rate applied to the results for the fiscal year ended June 30, 2018 was 1 GBP = 148.65JPY (the assumption used in the full-year forecast was 1 GBP =139.56 JPY)
*Amortization for the Urban & Spatial Development business in the fiscal year ended June 30, 2018 was approx. 1 billion JPY (goodwill of approx. 400 million JPY, and otherintangible fixed assets of approx. 500 million JPY).
*Results for the Urban & Spatial Development business in the year ended June 30, 2017 were affected by the consolidation of BDP’s results for a15-month period(from April 2016 to June 2017).
*BDP had previously been using the percentage of completion method, so the impact of the changes in revenue recognition standards had a negligible effect on the Urban &Spatial Development business, and details are accordingly omitted here.
5FYE June 2019 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/Others

Operating Income
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate/Others
Ordinary Income
Profit attributable to owners of parent
Operating margin (%)
ROE (%)FYE 18/6Results
104,350
48,52926,716
15,943
12,855179106,023
46,59528,88915,762
13,040
354
1,381
6,561
4,279
2,649
1,873
173
△ 18
△ 2,396
6,721
4,555
6.2
8.1

FYE19/6
Forecast
125,000
46,00044,00014,00016,0004,000
115,000
44,00031,00020,00016,500
2,500
1,000
6,200
3,500
2,400
2,600
600
△ 100
△ 2,800
6,100
4,100
5.4
6.9

YoY Change
Amount20,649△ 2,529
17,283△ 1,943
3,144
3,820
8,976
△ 2,595
2,110
4,237
3,459
2,145
△ 381
△ 361
△ 779
△ 249726426
△ 81
△ 403
△ 621
△ 455

YoY Change%119.8%
94.8%
164.7%
87.8%
124.5%
2,228.6%
108.5%
94.4%
107.3%
126.9%
126.5%
704.6%
72.4%
94.5%
81.8%
90.6%
138.8%
345.2%
90.8%
90.0%

6

(Reference) On changes in calculation standards for Sales (from June 2018)* Effective from the Fiscal Year Ending June 30, 2018, the Group has changed the primary methodof revenue recognition from the completed-contract method to the percentage of completion
method.

Calculation by “Percentage of Completion Method”(Sales Amount) = (Estimated Total Revenue) x Progression Rate - (Cumulative Sales by the End ofPrevious Period)

Progression Rate =Costs occurred (labor cost, subcontract cost, costs, etc.)
Total Estimated Costs

Sales Recording by “Percentage of Completion Method”
Case: Project of 3-year contract period, JPY 30-million value
1st year
2nd year
3rd year
Progression Progression Completion
Rate: 25% Rate: 70%

Total

Project carried forward from theprevious year
FormerSales amount is bookedat the end of the Project

Completedcontract method

00

3,000

3,000

Project started in current year
Sales amount is bookedin proportion to the progress% of completion
method7501,350

900

3,000

New

3,000 x 25%

3,000 x 70%ｰ750

3,000 x 100% - 750 - 1,350* For projects that were awarded or started before FYE June 30, 2017, the completed-contract method is used.
* For the amount of effect, see “Changes in accounting policies” on p.13 of the Summary of Financial Reports .
7