Presentation of Financial Results
2Q FYE June 30, 2024

March 5, 2024
Representative Director and President
Hiroaki Shinya
Integrated Design & Engineering Holdings Co., Ltd

Agenda1. Results for 2Q FYE June 2024
2. Forecast for FYE June 2024
3. Working to Improve Corporate Value

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2

1. Results for 2Q FYE June 2024
（July 2023 - Dec 2023）

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3

Results for 2Q FYE June 2024
Orders, revenue, and operating profit increased steadily to the highest level ever.

Consolidated
results(Million yen)•Orders received were strong in the Consulting Business and the Urban & Spatial Development
Business.

•

Revenue increased in all three segments (Consulting Business, Urban & Spatial Development
Business, and Energy Business) because of the steady progress of on-hand projects.

•

Operating profit increased, with the Energy Business remaining strong despite a decline as a reaction
to special factors and the Consulting Business returning to profitability in 2Q.

（単位：百万円）

Orders
Revenue
Gross profit
Operating profit
Profit before tax
Profit attributable to owners of parent

FYE June 2023
2Q Results
59,01658,451
15,913
1,235
269-1,054FYE June 2024
2Q Results
65,91967,835
19,253
2,165
1,593
313

YoY Comparison
Amount

%
6,902
9,384
3,340
929
1,324
1,368

111.7%
116.1%
121.0%
175.3%
591.6%-※Integrated Design & Engineering Holdings Co., Ltd was established as the sole parent company of Nippon Koei Co., Ltd. through a share transfer on July 3, 2023, and has newly prepared the condensed
consolidated quarterly financial statements from the first three months ended September 30, 2023. Since there has been no substantial change in the scope of Nippon Koei’s consolidated group, Nippon Koei’s
consolidated results for the six months ended December 31, 2022 (July 1, 2022, to December 2022) and as of June 30 2023, have been used as comparative information. For comparison, the Company made an
adjustment of reclassifying its subsidiary El Koei Co., Ltd. from the Consulting business segment to the others.
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2Q Results (Core Operating Profit*)Core operating profit, excluding special factors, gradually returned to a profitable level.
*Core operating profit is calculated from operating profit (or loss) after IFRS, excluding gains and losses arising from non-recurring factors.

■ 2Q special and temporary factors(Billion yen)

■ 2Q performance trends (Million yen)Accounting Standards

80,000Orders2Q FYE June 2024 (Current Term)

Revenues

Valuation gains associated with thelisting of shares of companies theGroup acquired capital in+6.4

Gains on sale of fixed assets+0.7

VAT expense reversal

+2.8

Total

+9.8

Core operating profit

58,39560,00047,83240,00049,14847,707

Japanese
GAAP
51,796
46,6758,000

65,919 67,835

IFRS
52,98150,27859,016 58,451

6,000

39,1464,000

31,23320,000

1,181

1,000

2,000

2Q FYE June 2023 (Prev. Term)
Gains on sale of shares of affiliatedcompanies, gains on investment insecurities, etc.

0

-18

+20.6
-1,427-20,000

Provision of allowance forcompensation-4.9

VAT expenses

-2.8

Other

-0.2

Total

+12.7

-2,597-40,000

0-34

FYE 2018/6 2Q-2,000-2,817FYE 2019/6 2Q

FYE 2020/6 2Q

FYE 2021/6
2Q

FYE 2022/6
2Q

FYE 2023/6
2Q

FYE 2024/6 2Q

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-4,0005

Profit/Loss Analysis
As sales increased, costs remained subdued, and profits were secured.
■ Profit factor ■ Loss factor

Increased sales in the Urban & Spatial
Development Business and Energy Business
led to cost ratios improved by 1.2 pts(Million yen)

Increase in transportation and office
expenses due to inflation in consulting
overseas and BDP; Salaries increase
due to increased staff.

VAT expenses incurred in the previous term werereversed this term. Although there was a valuation
gain on companies where we have capital
participation this term, it was negative compared to
the gains on the sale of shares in the previous term.

Reduction in foreignexchange losses

YoY +1.3 billion yen
23/2Q
Current Term Profit

Revenue

Cost of Sales

General and
Administrative
ExpensesFinancial Loss

Other Loss

Taxes etc.

24/2Q
Current Term Profit

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Cash Flows/Balance Sheet
Cash Flows (Million yen)

Balance Sheet (Million yen)

 The decrease in operating cash flows was mainly due to anincrease in trade receivables and payments of trade payables.
 The decrease in investment cash flows was mainly due toreduced expenditures for acquiring property, plant andequipment, and investment properties.

 The increase in assets was due to the rise in trade receivables.
 The increase in liabilities was due to an increase in borrowings,
and the decrease in equity was due to a reduction in retained
earnings.

 The decrease in financial cash flows was due to higher
repayment of short-term borrowings.
25,032

16,171-4,516-3,242-23,153-21,161-25,677
Operating CF
Financial CF

2Q FYE June
2023

-26,395
Investment CF
Simple FCF(Operating + Investment)

2Q FYE June
2024

Total
assets195,809Equity ratio
41.4%

Liabilit
ies
112,025Equity83,784FYE June 2023

Total
assets203,166
Equity ratio
39%

Liabiliti
es
121,13
6

Equity82,0302Q FYE June 2024

Equity capital: Equity attributable to owners of parent

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Results by Business Segment (2Q FYE June 2024)
2Q FYE June 2023
Results(Million yen)Consulting
Business

Urban & Spatial
Development
Business

EnergyBusinessYoY

2Q FYE June 2024
Results

Amount%Orders29,553(Sales ratio)

34,094(Sales ratio)

4,540

115.4%

Revenue

32,888100.0%

34,107100.0%

1,218

103.7%

25,10476.3%

26,06876.4%

963

103.8%

7,784

23.7%

8,039

23.6%

254

103.3%

SG&A, etc.

8,048

24.5%

7,337

21.5%

-710

91.2%

Operating profit

-264

-

701

2.1%

965

-

Orders

19,770(Sales ratio)

22,858(Sales ratio)

3,087

115.6%

Revenue

16,399100.0%

19,143100.0%

2,743

116.7%

10,53464.2%

11,952

62.4%

1,418

113.5%

5,865

35.8%

7,190

37.6%

1,325

122.6%

SG&A, etc.

5,666

34.6%

7,056

36.9%

1,389

124.5%

Operating profit

198

1.2%

134

0.7%

-64

67.5%

Orders9,418(Sales ratio)

8,720(Sales ratio)

-697

92.6%

Revenue

8,577

100.0%

14,019100.0%

5,442

163.4%

6,363

74.2%

10,243

73.1%

3,879

161.0%

2,213

25.8%

3,776

26.9%

1,562

170.6%

SG&A, etc.

165

1.9%

2,487

17.7%

2,321

1499.4%

Operating profit

2,047

23.9%

1,289

9.2%

-758

63.0%

Cost of expenses
Gross profit

Cost of expenses
Gross profit

Cost of expenses
Gross profit

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Results by Business Segment: Consulting Business■ Orders/Revenue■ Performance

34,094 34,107(Million yen)

32,888OrdersOrders

Orders increased year-on-year and remained at a record highlevel because of the contribution of orders for defense-related
work in Japan.

Revenue

Revenue progress in Japan slowed due to a decreased balanceof orders carried forward.
Overseas sales increased due to steady sales of large-scale
projects such as the Bangladesh MRT.

Revenue
29,28528,48729,553



22/6 2Q

23/6 2Q

Operatingprofit24/6 2Q■ Operating profit/Operating profit marginIn Japan, net profit increased due to an increase in valuation
gains (approx. 650 million yen) associated with the listing ofshares of companies the Group acquired capital in.
Overseas sales increased, but outsourcing and general andadministrative expenses increased.

(Million yen)
800

Operating
営業利益
600
ProfitOperating
営業利益率400Margin
Profit

5.0%

701

647

4.0%

2.3%

2.1%

200

2.0%
1.0%

0

0.0%

0 .8%

▲ 200
▲ 400

3.0%

-1.0%

-264
22/6 2Q

23/6 2Q

24/6 2Q

Measures for the second half Implement measures to ensure utilization rates and continue
operations with gross profit in mind.
 To reduce foreign exchange losses, contract currencies will be set
in yen, USD, and the local currency, and the contract and payment
currencies will remain the same.

-2.0%
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Results by Business Segment: Consulting Business The overseas sales ratio increased because of the strong performance of local subsidiaries in South Asia
(India, Bangladesh) and the strong performance of projects in the transportation field.
Domestic/overseas revenue (million yen) and percentage (%)

Nippon Koei: Sales by non-consolidated operations (%)
Watershed & Water Management
Operations

Japan 24/6 2Q
3%Transportation Operations
40,00035,00030,000Overseas Total

28,48720,000

51.7%

51.2%
47.5%

25,00034,10732,88813,542

48.3%

48.8%

52.5%
14,944

16,055

16,46022/6 2Q

23/6 2Q

24/6 2Q

5,000
0

11%
32%

29%
29%

Infrastructure Engineering
Operations

Operations

15,00010,000Land Infrastructure Development
Operations

Research & Development Center

17,646

16,8332%
22%

Railway Operations

Domestic Total

Overseas 24/6 2Q

23%
24%

26%
Main Areas

Watershed & Water
Management

Development of dams (existing and new), rural agriculture, and water and sewage
facilities

Transportation

Roads, airports, ports, regional development research, transportation policy planning

Railway

Development around railways and stations

Land Infrastructure
Development

Disaster emergency measures, permanent measures, development of defense
infrastructure

Infrastructure
Engineering

Environment, information technology, disaster management, ground countermeasures,
satellite services

Responding to demand for large-scale projects such as defense,
disaster prevention, and national resilience in multiple fields
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Highlights (Consulting Business/Projects for Ministry of Defense) Orders for Ministry of Defense projects grew 242.3%. Bidding for profitability is continuing.
 Received orders to prepare master plans to strengthen JSDF facilities. Acquired orders by leveraging cooperation
among the three major operating companies and our comprehensive capabilities in multiple fields.

Consulting Business: Ministry of Defense projectorders received (million yen)

4,000
3,500
3,000
2,500

3,900

(planned)

4Q
3Q

2,597

0

258

1,812

1,790

1,629

1,000
500

Formulation of a plan to relocate and consolidate thebuildings and facilities of Ministry of Defense bases andmilitary posts nationwide
Overall summary, facility layout plan(zoning and facility placement studies)

112

2,000
1,500

Master plan

3,094

2Q
1Q

Master plan preparation work* Areas of responsibility forthe three operating companies

351
617
239

22/6

Demonstration ofcomprehensive
capabilities

2Q
cumulative+242.3%

673

692

23/6

24/6

Construction and reconstructionplans for buildings and facilities

Studies regarding energy efficiency*Eight JVs, including Nippon Koei and Nippon Koei Urban Space

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Highlights (Consulting Business/Projects for Noto Peninsula Earthquake) Four of Nippon Koei's business fields (land infrastructure development, watershed and water management, transportation, and infrastructureengineering) are responding to requests for assistance.
 A portal site was launched to unify internal and external information sharing on the Noto Peninsula earthquake and to share real-time
information on national and local government trends, response status for multiple projects, etc. This will lead to quick and efficient responses.
 A landslide analysis using satellite data was conducted in response to a request for assistance in restoring extensive damage to National
Route 249.
Establishment of an internal portal site

Use of LIANA (understanding deformation based on satellite data)

LIANA

Centralized organization of internal and external information, map
information, and on-site response on portal site

One of the products provided by “Satellite Disaster Prevention
Information Service,” which is released by Nippon Koei, Sky
Perfect JSAT, and Zenrin. Displays ground fluctuation of anarea over time and evaluates risk based on MLIT’s groundextensometer standards and the knowledge of Nippon Koei.

© LIANA © Geospatial Information Authority of Japan © Original ALOS-2 data provided by JAXA Tellus Satellite
Data Master is used.
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Highlights (Consulting Business/Ukraine recovery projects)
 Established the Ukraine Recovery Office, Warsaw Office, and Kyiv Office build customer relationships and strengthen local
information gathering and sales activities.
 Since the invasion, 11 projects have been handled. We are steadily moving forward with ongoing projects and will carry out
activities to develop projects other than Japanese aid and expand to Ukraine’s neighboring countries.
Establishment of company sites andbusiness implementation status

Ongoing projects (As of March 2024)

BELARUSPOLAND

Warsaw Offices(Open in July 2023)

Kyiv Offices(Open in December 2023)

RUSSIA

Customer

Project

JICA

Emergency Restoration and Recovery Project

JICA

Agriculture Sector Study for Reconstruction and2023.1-2024.5
Recovery

JICA
JICA

The Project for Strengthening Capacity on
Humanitarian Mine Action and UXO Clearance

MLIT

Study on the applicability of Japanesetechnology toward the reconstruction of Ukraine 2023.12-2024.3

MIC

Study on the feasibility of implementing projects
for the development of communication networks 2023.12-2024.3
in Ukraine

SLOVAKIAMoU Conclusion with Lviv City MOLDOVA(Since October 2023)
ROMANIATokyo/Ukraine Recovery
Office(Open in April 2023)● Cities where work is being conducted.
(there are also whole-country projects beyond just these cities)

2023.3-2025.2

Technical support for promoting implementationof the Bortnychi Sewage Treatment Plant
2023.10-2024.4
Modernization Project
Survey on promoting private sector cooperation
2024.2-2026.1
in recovery and reconstruction process

JICA

HUNGARY

Period2024.3-2027.7

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13

Results by Business Segment: Urban & Spatial Development Business■ Orders/Revenue■ Performance(Million yen)

22,858

日本工営都市空間
NK Urban Space
BDP

14,687
5,978

8,709
22/6
2Q
Orders

19,77015,538

7,316

22/6
2Q
Sales

12,454

23/6
2Q
Orders

15,707
10,717

23/6
2Q
Sales

24/6
2Q
Orders

24/6
2Q
Sales

600

Total

400
200

628

198

857

134

0
-200

-305

Revenue increased in Japan and overseas because of thesteady progress of orders received in the previous fiscal year.

Operatingprofit

Operating profit decreased due to method changes of administrative
expenses accounting for spin-off in Japan, inflation in the United
Kingdom, staff increase at BDP, and increase in operating expenses.

Measures for the second half

555
860



*The actual exchange rate on 2Q of FYE June 2024: 1￡=183.25 yen (the actual
exchange rate on 2Q FYE June: 1￡=163.91 yen; the assumed exchange rate for
FYE June 2024: 1￡= 163.69 yen）

(Million yen)1000 NKUrban
BDP

Revenue
12,990■ Operating profit
800

Orders increased year-on-year, orders attributed to MLIT and
Ministry of Defense-related work from NKUrban, as well as largescale additional orders from BDP Group.

6,153
5,682

5,513

10,025



19,143

7,151

16,399Orders

-430

-400

-723

 Strengthen the rezoning system, which is the main
business of Nippon Koei Urban Space.
 Hire a new regional director for BDP’s Southeast Asia
business to help develop BDP’s Asian market.

-600
-800
-1000

22/6 2Q

23/6 2Q

24/6 2Q
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14

Results by Business Segment: Urban & Spatial Development Business The BDP Group's UK share is 50% to 60%. The current term's year-on-year increase is due to the impact of orders for large-scale
projects.
 Although the ratio of local government work is high for Nippon Koei Urban Space, this term saw an increase in the ratio of national
government-related organizations due to the acquisition of national land resilience and Ministry of Defense projects.
Breakdown of BDP Group orders
Share by region
1%

UK
EuropeMiddle east
USA
Asia

4%
10%

Share by field
Medical care
Education

23%

Office62%

Breakdown of Nippon Koei Urban Space orders
Share by field

Civil
Engineering

17%
34%

Urban
Development

8%

Comprehensive
SurveyState-related
institution

24%
50%

Residence

18%

Other

Share by ordering party
13%

18%

Local
governmentrelated
Private sector

26%

69%

23%

▼ Nippon Koei Urban Space business fields▼ BDP orders for this term

Operations

Main Areas

Urban Development Urban renovation, urban development, spatial design, architecture, etc.

University of Warwick

John Innes Centre

Civil Engineering

Highways and bridges, watershed management, water supply andsewerage, environment, etc.

Comprehensive
SurveyGeospatial, infrastructure information, land compensation, etc.
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Highlights (Urban & Spatial Development Business/Development along MRT lines）
 At a summit meeting in January 2019, Japan and the United Kingdom agreed to strengthen cooperation in the field of infrastructure in the
Indo-Pacific region.
 The U.K.'s Department for Business and Trade (DBT) announced it would promote TOD projects along the North–South line of the Jakarta
Mass Rapid Transit, constructed with the Japanese government's support. This would be an opportunity for third-party cooperation between
Japan and the U.K.
 BDP, Nippon Koei, Nippon Koei Urban Space, and PT. Indokoei International, together with the U.K.’s DBT and PT. MRT Jakarta(Perseroda), have selected Kota Station as a priority station, which is under station-front development along with the underground station
construction, and a preparatory study to promote investment began in November 2023.
 BDP’s Asian expansion stalled due to the COVID-19 pandemic, but full-scale expansion has begun.
Project roles

Jakarta Kota Station

Commissioned by DBT in the UK and led
the preparatory survey.
Supporting BDP based on knowledge
promoting urban development and TOD
in Asia.
Step1
Scoping Study
Identify project targets
to be promoted,organize information,and coordinate relevantorganizations topromote the project.

Step2
Business Case Study
Confirm the project's
feasibility to promote
investment in theselected project target.

FutureThrough cooperation
with Japan and the
U.K., we will present
a model for
promoting stationfront development
and revitalizing urban
development and therailway business.

Engaged in the Jakarta MRT construction
project, promoting cooperation with therailway business.
Assisting BDP with local information andcoordination with relevant organizations.
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Results by Business Segment: Energy business■ Orders/Revenue■ Performance(Million yen)
■Orders■Revenue

9,418

8,577

8,720

6,247

22/6 2Q

23/6 2Q

24/6 2Q■ Operating profit/Operating profit margin

2,500 (Million yen)

Operating Profit

500
0

30.0%

2,047

25.0%

Operating Profit Margin

23.9%

1,500
1,000



Although the electric power facility and the mechanical/electricalconsulting business are developing steadily, orders are
decreasing year-on-year due to delays in orders for renewableenergy EPC projects.

Revenue

Revenue increased because of strong performance in on-handprojects in the electric power facility business, energy managementbusiness handling renewable energy EPC in Japan, and the
manufacturing business.

Operatingprofit

Although operating profit decreased due to a rebound from thegains in the sale of PT ARKORA HYDRO (a former affiliate) sharesand investment gained in securities (approximately 2 billion yen) in
the same period of the previous year. System improvements havebeen progressing smoothly toward profit generation.

14,019

8,565

2,000

Orders1,289

936

2Q Financial Results

15.0%
10.0%

10.9%

FYE June
2022
22/6
2Q

20.0%

9.2%
FYE
June2Q2023
23/6
2Q Financial Results

FYE24/6
June 2024
2Q
2Q Financial Results

5.0%

Measures for the second half Continue aggressive sales activities for large-scale EPC projects
related to grid storage batteries, which will be the key to achieving
the order plan.
 Continue to reduce variable costs, improve operational efficiency,
and focus on securing profits.

0.0%
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Revenue by Business Segment: Nippon Koei Energy Solutions
 Construction-led sales due to strong demand for renewal under the revenue cap system*.
 In the energy sector, the Japanese private sector’s renewable energy EPC project and the grid storage
battery project made steady progress, and sales steadily increased.
Nippon Koei Energy Solutions - Revenue(Million yen)
Engineering
Consulting

YoY+53.4%

12,353

Field

27%
3,351

EnergyManufacture

Nippon Koei Energy Solutions - Business

8,051
2,044

1,111
2,295

9%
19%

Engineering Power infrastructure
Consulting
Energy

1,447
402
4,158

23/6 2Q

45%
5,596

24/6 2Q

Division

Business• Enhancement and renovation of substations,switchyards, and power plant facilities for electric
power companies

Machine/electricity andinformation infrastructure• Consulting on power and electrical equipment

Energy management• Development and operation of energy resources

Energy operations• Operation of hydroelectric power plants, newplanning and development, energy saving support

Systems• Construction of substation centralized monitoring
systems and dam management systems

Machine/electricity• Manufacture of hydroelectric turbines and generators• Manufacture of various substation equipment suchas transformers and cooling towers

Manufacture

The large-scale grid storage battery business requires complex technology.
Leveraging the strengths of combined technologies, respond to planning and operational needs.

*A general electricity transmission and distribution business operator formulates a business plan and investment and cost projections, then sets a consignment fee after receiving approval from thenational government.

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18

Highlights (Energy business/Ruien Battery Storage Project in Belgium) Among the power storage plants in operation in Europe, Ruien Battery Storage Project in Belgium(25 MW/100 MWh) is performing well.
■Outline of Battery Storage Stations in Europe
UK
Market trend■ FY24 Ruien (SPV) performance
600(Million yen)

100.0%

536

90.0%

334

300

100
0

330

85.0%
80.0%

63.9%

Revenue

One location in operation(Tollgate: 49.5 MW/49.5 MWh)*One other site underconstruction

Domestically installed batteries total
less than 200 MW, early stage ofmarket

One location in operation (Ruien: 25
MW/100 MWh)

Largest in Belgium (only three largescale batteries of 25 MW or moredomestically)

Position

Ranked 18th domestically basedon output

Main source ofrevenueFrequency adjustment service,DC, wholesale market (arbitrage)

aFRR (secondary adjustment force),
imbalance market

70.0%
65.0%

61.6%

1Q (July–September)





75.0%

213

200

Domestically installed batteries
total 3 GW, maturing market

95.0%

500
400



Driving situation

Battery storage station in Ruien, Belgium

Belgium

2Q (October–December)Operating Profit

60.0%
55.0%
50.0%

Operating Profit Margin

Plans to expand business in Japan due to upfront investment and expand businessoverseas in Asia in the medium term.
Energy technology is indispensable for smart urban development and will strengthen
segment cooperation projects.
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19

2. FYE June 2024 Forecast(July 1, 2023–June 30, 2024)

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FYE June 2024 Forecast
We aim to set new record highs for orders, revenue, and profits.
(Million yen)

YoY Comparison
FYE June FYE June
2023 Results 2023 Plan Amount%

Review of cost burden for each segment

Orders139,265

155,000

15,734111.3%

Consulting Business

77,71286,0008,287

110.7%

Urban & Spatial Development Business

42,56643,000433

101.0%

Energy Business

18,82726,0007,172138.1%

Revenue

141,527

156,000

14,472110.2%

Consulting Business

81,81888,0006,181

107.6%

Urban & Spatial Development Business

38,07142,0003,928

110.3%

Energy Business

20,85525,0004,144

119.9%

782

1,000

217

127.9%

Operating profit

6,080

11,1005,019

Consulting Business

6,599

7,400

Urban & Spatial Development Business-946

Energy Business

Other

As a result of reorganization and spin-offs,
each company’s head office business
management expenses, which were previously
borne by “Other,” will now be borne by eachsegment.
▼FY2024 operating profit plan reference values
using conventional accounting methods(Million yen)

Reference YoY Comparison
value Amount%

182.5% Operating profit

11,100800

112.1%

8,068

1,469

122.3%

2,700

3,646

-

3,306

4,252

-

2,974

2,200

-774

74.0%

Consulting Business
Urban & Spatial
Development Business
Energy Business

2,276

-698

76.5%

Other

-2,546-1,200

1,346

-

Other

-2,550-4-

Profit attributable to owners of parent

3,093

7,100

4,006

229.5%

ROE

3.9％

9.0％

5.1pt

5,019 182.5％

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

21

3. Working to Improve Corporate Value

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

22

Current Situation and Policies for Improving Corporate ValuePBR trends

Policies for improvement

 Our PBR was 0.67x for FYE June 2023 and continues to be
below 1x. , which is lower than the industry average.
 This is assumed since the current medium-term management
plan does not include the business forecast.

 We will promote growth strategies and financial strategies
and strengthen our management base, aiming to achieve asustainable increase in ROE and, thus, PBR.
 Specific measures will be disclosed in August 2024, together
with the next medium-term management plan.

Growthstrategy• Generate profit through reliable
implementation of medium- andlong-term strategies• Business reform and drastic cost
reduction through the use of digitaltechnology

Financialstrategy• Ensure financial soundness• Improve capital profitability throughasset portfolio optimization• Enhance shareholder returns

(%)
1.40

1.28

1.28

1.20
1.00
0.80

1.08

1.09

0.98
0.81
0.71

0.79

1.31

1.24

0.84
0.71

0.83
0.74

1.09
0.93
0.76

PBR 1x

0.80

0.82

0.69

0.67

0.60
0.40
0.20

17/6
ID&E

18/6

19/6

Industry Average

20/6

21/6

22/6

23/6

Nikkei Average (Weighted Average)

Strengthening themanagement base• Promote sustainability
management and human capitalmanagement• Enhance information disclosureand IR activities• Control profit volatility

Sustained
improvement
in ROE

Controllingshareholders’equity costs

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

23

Future Initiatives to Improve Corporate Value
Long-Term Management Strategy (ID&E Global Strategy 2030)

ROE target

 Aim to achieve the plan by steadily implementing the three steps and eachmeasure of the medium-term management plan.

 We will further increase asset efficiency and implement
our growth strategy to reach 9% in this term and an
average of 15% in the long term.

Breakthrough(Billion yen)
300,000

Current medium-term
management plan

Transformation
1st STEP

250,000

200,000

150,000

100,000

Laying the foundation
for co-creation throughthree strengthening
measures

1,306

1,415

2nd STEP

Accelerated expansion
into new businesses
and markets

Laying the foundation
for a 100-year company

20.0%

15%

18.0%
16.0%

Final year target
for the current
medium-term plan

14.0%
12.0%

1,560
10.3%

7.1%

10.0%
8.0%

4.0%
2.0%
0.0%

22/6
23/6
24/6
Results Results Planned

27/6
Planned
エネルギー売上収益
Energy Revenue

Urban& Spatial
都市空間売上収益
Revenue

9.0%

8.8%

8.1%
5.6%

6.0%

4.3%

コンサルティング売上収益
Consulting Revenue

Long-term strategy
final year target

250 billion yen

198 billion yen

9.1%

6.9%

FYE 2023/6
50,000reference: 7.1%
excluding BDP
goodwill impairment
0

3rd STEP

Expansion

6.7%
4.6%

FYE 2023/6 reference:
8.6% excluding BDP
goodwill impairment

3.9%

30/6
Planned

18/6

Operating Profit
営業利益率Margin*Japan Standards up to June 2020

19/6

20/6

21/6

22/6

23/6

24/6
Planned30/6
Planned

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

24

Future Initiatives to Improve Corporate Value
Cash allocation policy Divest assets and allocate investments to new growth fields and areas.
Aim to improve business growth and capital profitability.
Dissolution of mutually
held shares

Asset sales
andfinancing

Dissolution ofdelinquent receivables

Improving asset
efficiency through realestate sales, etc.

Investment
Shareholder
returnsGradual reduction of cross-shareholdings• Estimated income equivalent to 2 billion yen
Ensure working capital on hand throughefforts to eliminate delinquent receivables• Improve operating cash flow by implementing
CCC management and reduction measures• Approximately 400 million yen in accounts
receivable, which has been delayed for many
years, is scheduled to be deposited by March
2024
Review utilization of the Group’s assets andconsider replacing them with assets directly
linked to business

Implement investment plans with capital costs in mind
• Growth investment (including M&A) is expected to be approximately
32 billion yen in the first three years. But the actual amount is 9.5
billion yen as of 2Q of this period due to carefully selected
investment projects
Continue stable dividends and enhance shareholder returns based on
profit levels
Carry out share buybacks/cancellations based on the situation

Dividends and dividend payout ratio
Dividend payout ratio is expected to be 30%, andthe dividend for FYE June 2024 will continue at
140.0125 yen per share.
90



Dividends (Yen)
120.0

125.0

125.0

125.0

Dividend Payout Ratio (%)

80
70

100.0
60

60.9
80.0

75.0

75.0

75.0

50
40

60.0

35.3

36.6

30

40.0

25.0

28.6

26.5

20.0

0.0

20
10

19/6

20/6

21/6

22/6

23/6

24/6
(planned)0

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

25

Initiatives to Improve Corporate Value (People and Technology)
Trends in the number of new staff and engineers

Development and utilization of various human resources The ID&E Group had 48 successful applicants in FY2023. Of those,
84% are under 35 years old (national average 42.8 years old),
and the number of young engineers is steadily increasing.
Number of new staff hired (total in Japan)
Number of engineers (total in Group)(Persons)

Significant
increase in300
hiring to meet demand
250
200

1,584

1,621
173

1,727

1,743

1,764

1,700

1,656
206

205

182

185

100

1,400

50

1,300

0

1,200

21/6

22/6

23/6

Ratio of non-Japanese managers

2030 target 2023 results

15% or more 0.8%2030 target

1% or more

Evaluation from external organizations
Productivity improvement

Work style reform


1,600

106

20/6

4.9%

1,800

1,500

19/6

2023 results

The number of newly qualified
engineers increased from 28 y.o.,with many in their early 30s, andthis number is expected tocontinue increasing in the future

150

18/6

Ratio of female managers

Certified as a White 500 company
under the Excellent HealthManagement Corporation Recognition
System for five consecutive years
ID&E is the only company in theconstruction consultant industry toreceive this

Four-star certification in the 7th
Nikkei Smart Work Management
Survey, which selects advanced
companies that are taking on the
productivity revolution through work
style reforms
Highest in the industry

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

26

Initiatives to Improve Corporate Value (People and Technology)
Number of BIM/CIM related operations
Strengthening DX efforts

The number of related operations is steadily increasing with the successful
development of promotion plans, monitoring, in-house qualification systems,
etc.
Corresponds to the application of BIM/CIM principles in operations andconstruction under the direct control of the Ministry of Land, Infrastructure,
Transport and Tourism.

196

Second Half (January–June)First Half (July–December)

135(Case/Completed Basis)

111

56
23
22
1

17/6

65
88

40
38
2

18/6

53

168

3

19/6

20/6

Building a global production
system Analyze NJSS (data bidding
information bulletin service forthe government, local
governments, public institutions,organizations, and universities) Our DX order size share is No. 1
in the industry

 Share BIM-related technologies withMKI (local subsidiary in Myanmar)and form MKI model building team
 MKI takes charge of Nippon Koei’s
design work to reduce costs

NK

Competitor
A

Competitor
B

5.2%

1.6%

0.4%

As of April 2023

Seminar in Myanmar

Leveraging generative AI

114

58
7

Improving DX orders

23

21

28

21/6

22/6

23/6

50

24/6

 Increase productivity andaccuracy by incorporating
AI in the value chain fromorder to production
Material-specific chatbots
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

27

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

28

Appendix

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

29

Corporate Profile (As of June 30, 2023)
Corporate name Integrated Design & Engineering Holdings Co., Ltd.
Established

July 3, 2023

Capital¥7,522 million *As of August 2023

Staff numbers

6,335 [consolidated] Founder: Yutaka Kubota (1890–1986)
Before WWII, Yutaka Kubota was engaged in the development ofhydropower resources (Sup'ung Dam 700 MW) in the Korean
Peninsula, one of the largest projects at the time.

Subsidiaries numbers 84

After the war, in a bid to work toward the restoration of Japan andreconstruction of countries damaged by the war, he founded theCompany at the age of 56.

Institutional design Company with a nominating committee, etc.
Stock market: TSE Prime Market (Sec. code: 9161)

Known as the “Father of Overseas Engineering Cooperation,” he wasawarded the Grand Cordon of the Order of the Rising Sun in 1985.
He directed projects around the world until he was 90 years old andcontributed to development in developing countries.

Net sales by region (FYE June 30, 2023)

Consolidated revenue and operating profit (million yen)

0%
Japan

3%
7%

Asia
Europe, Middle East

150,000

117,859
108,589 112,214
101,338 106,023

14%

Americas
Sub-Saharan Africa

Revenue
Revenue

19%

100,000

79,193

81,839

4,256

4,502

4,723

5,464

6,561

5,110

4,590

7,128

30,00020,00081,86557%
50,000130,674

Operating profit
Operatingprofit156,000
141,527

9,065

11,100
6,080

10,000Other
00

June 2014 June 2015 June 2016 June 2017 June 2018 June 2019 June 2020 June 2021 June 2022 June 2023 June 2024
(Plan)(Plan)
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

30

Segment
Consulting Business

Urban & Spatial Development Business

Energy BusinessWith expertise in civil engineering and otherprofessional technologies, we engage in the
consulting business, such as planning and design
associated with the development and maintenanceof infrastructure and safety measures, for the state,
local governments, overseas government
institutions, private firms and others. In response toincreasingly complex social issues, construction
consultants are required more then ever todemonstrate their high level of expertise, technicalcapabilities, and comprehensive abilities. Nippon
Koei supports social infrastructure by undertaking
various roles as a comprehensive partner tobusiness operators.

One of the growing areas that account for a large
percentage of the sales of the world’s construction
companies is architecture. With a view to pursuingbusiness development by integrating architecture
and civil engineering in response to the massive
demand for urban development in many locations
around the world, the Company made BDP, a UKbased architectural design company, a subsidiaryin March 2016 and made Quadrangle, a Canadian
firm, a subsidiary in February 2019. By
incorporating the architectural know-how of both
firms, we are engaging to create urban & spatial
development that accommodates the needs of the
new era.

We provide services for power and electricfacilities in Japan and abroad in all phases fromplanning and research to design, construction,
manufacturing of equipment and maintenance.
In addition, the world is advancing toward
decarbonization, and the renewable energyrelated businesses are going through majorchanges. Accordingly, we are focusing onservices for electric power distribution networks tostably manage and control energy provided fromvarious power sources with the use of battery
storage as well as on virtual power plant (VPP)related businesses.

*Effective FYE June 2022, we are managing our businesses under a three-segment structure consisting of the “Consulting Business” formed by integrating the conventionaldomestic consulting and international consulting businesses, the “Energy Business” encompassing the power engineering and energy businesses, and the “Urban & Spatial
Development Business.”
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

31

Strengths of the ID&E Group(1) Sustainable business model grows withsociety(Win-win relationship between society & Nippon
Koei)
Transforming to meet market demands(2) Japan’s leading engineering consulting firm
(Business domains, technologies, and humanresources)
Comprehensive Capable of solving sophisticated &complex issues
strength

Commercialize solutions to social problems

Consolidated net sales¥141.5 billion

Business over

160 countries

Orders over

Human
Resources

Largest number of professional
engineers in industry

Technology

In-house R&D facilities and patents

9,000 per year

85

Patents

1,764

Professional engineers*As of June 2023

Coping with changing times, achieving sustainable business expansion and profitability growth.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

32

Position in Industry
Nippon Koei, which is a subsidiary of ID&E Group, is Japan’s leading civil engineering consultant.
Sales (Million yen/Non-consolidated)
Corporate nameRankingEngineering consultant
division

Corporate Total

1

Nippon Koei

61,05880,796

2

Pacific Consultants Co., Ltd.

51,21854,8083

CTI Engineering Co., Ltd.

48,69651,3594

Oriental Consultants Co., Ltd.

30,43830,525

5

Oriental Consultants Global Co., Ltd.

28,88428,884

6

Eight-Japan Engineering Consultants Inc.

23,641

25,9407

Yachiyo Engineering Co., Ltd.

23,32923,9758

Idea Consultants, Inc.

21,52122,065

9

Nihon Suido Consultants Co., Ltd.

19,652

19,81410

Chodai Co., Ltd.

18,836

20,52724

Nippon Koei Urban Space Co.,Ltd. (Integrated with Tamano Consultants
Co., Ltd. in July 2022)

11,801

13,588*Source: Nikkei Construction, April 20, 2023, edition. Ranking by engineering consultant division sales (according to published financial results)
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

33

2030 Vision
By working together with various internal and external partners, we will pursue wisdom and integrate
wisdom with technological innovation to provide new values in an aim to become a corporate groupthat contributes to realizing a society in which people can feel enriched.
(billion-yen)
FYE June 2014 to FYE June 2020
(Japanese GAAP)■ Urban & Spatial Development■ Energy■ Power Engineering■ International Consulting■ Domestic Consulting-- Operating profit margin

New Medium-termManagement PlanFYE June 2021 to FYE June 2030
(IFRS)■ Urban & Spatial Development■ Energy■ Consulting-- Operating profit margin

Expand existing businesses(Consulting, Power Engineering)
Establish/deploy new businesses(Urban & Spatial Development, Energy)

Transformation

1st STEP
Building Resilience2024

FYE June 2021
Results (IFRS)Revenue: 117.8 billion yen

Operating profit margin: 6%

Set firm ground for working
together in creating asustainable future throughimplementing three resilience
policies

Expansion

2nd STEP
Accelerate expansion into
new businesses and newmarkets

Revenue: 250 billion yen
Operatingprofit margin: 10%
3rd STEP
ROE: 15%
Build the foundation forbecoming a 100-yearcompany

1,980

1,550

ROE: 6.7%

818

9%

7%
7%

5.5%
5.5%

FY2015

BreakthroughFYE June 2030
Target (IFRS)FY2016FY2017FY2018FY2019FY2020

FY2021

Previous Long-term Management Strategy

FY2022

FY2023

FY20249%

FY2027

FY2030Global Strategy 2030 — Working Together Toward A Future Without Boundaries
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34

Materiality Related to Business Activities and Corresponding SDGs
Link business activities with materiality, identify what the ID&E Group can do about common issues in the world
and contribute to achieving the sustainable development goals (SDGs) while driving these initiatives to also
increase corporate value of the Company.

Materiality
Development of
infrastructure toprotect safe living
Development of
infrastructure where
all people can freely
interact and play anactive role
Creation of attractive
cities where adiversity of people
and industries areconcentrated
Conservation of the
global environment
by achieving adecarbonized society

Key relevant SDGs

Examples of initiatives for each materiality••

Develop high-quality infrastructure in a wide range of areas.
Provide services for preventing/mitigating disasters in terms ofboth hardware and software•

Realize a mobility society by putting in place transportationsites, including airports and railways, and networks.
Develop electric power infrastructure in overseas regions
lacking power sources.

••

Develop a smart city by promoting working together among
Consulting, Urban & Spatial Development and Energy.

••

Provide consulting services to counter climate change.
Expand the renewable energy business in Japan and abroad.
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35

Materiality Related to Management Foundation Corresponding SDGs
Link business activities with materiality, identify what the ID&E Group can do about common
issues in the world and contribute to achieving the sustainable development goals (SDGs) whiledriving these initiatives to also increase corporate value of the Company.
Materiality

Key relevant SDGs

Examples of initiatives for each materiality

Strengthening
corporate governance••

Review institutional design
Reinforce compliance activities.

A rewarding work
environment where
human rights arerespected•

Further promote well-being management.

•

Develop human resources for manifesting the
ID&EG brand through the ID&EG Global Academy.
Create new added value by utilizing DX.

Development of
human resources
and technology•

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36

Consulting Business: Market Trends and Operating Results
ID&E(Nippon Koei) Consulting Business: Operating Results (Million yen)

Public Works Expenditures (Trillion yen)

30,000120,000

10.0

Initial

Revision

Orders106,931

1.6

3.3

2.5

2.1

2.0

97,7695.0

90,000

6.0

6.1

6.1

6.1

6.1

89,838

Revenue

98,49188,00086,00088,51075,484

6.1

75,245

81,33774,521

Operating profit

81,81880,09820,00077,712

72,59368,0070.0

FY2018FY2019FY2020

FY2021

FY2022

FY2023(Draft)2023年度（案）60,000Initial ODA Budget in the General Account (billion yen)
5,800

5,600

5,538

5,566

5,610

5,680

5,709
5,612

5,650
7,981
6,928

30,000

5,400

5,831

5,185

10,000

8,982
6,599

7,400

5,457

5,200

5,000

FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024

0

17/6

18/6

19/6

20/6

21/6

22/6

23/6

24/6
（Plan）

0*Figures showing operating results for FYE 16/6 through FYE 20/6 are simple aggregations of the figures for Domestic Consulting and International Consulting Businesses before intercompany eliminations.
*Operating results for years up to FYE 20/6 are based on Japanese GAAP while those for FYE 21/6 and onward are based on the IFRS.
Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.
*Results for FYE 22/6 reflect the transfer of the urban space segment of the former Tamano Consultants Co., Ltd.

37

Urban & Spatial Development Business: Market Trends and Operating Results
Sales of Top 225 Research & Design Firms in
FYE 2022 by Sector (Billion US dollars)

ID&E (Nippon Koei’s) Operating Results in Urban & Spatial
Development Business (Million yen)Orders

199.63646

200

Revenue

Operating profit
42,56638,700150

36,091149.2742

143.1874

8,000
43,00042,00038,071

7,000
6,000

31,981
28,700100

20,51087.57776
18,7005041.3869
16.56069

0

5,000

14,347
13,46013,04012,855

15,35918,16017,874

21,457
20,274

2,266

4,000
2,700

2,599

3,000
2,000

36.46593

30.48455

22.80916

8,700

8.66895

917
81

173

1,000

151
0

-1,300-1,000-946-11,300

FYE June2017

FYE June
2018*Source: Compiled by the Company based on information available in the ENR magazine (issued in August 2022)*Operating results for years up to FYE June 2020 are based on Japanese GAAP while those for FYE June 2021 and onward are based on the IFRS.
*Results for FYE 22/6 reflect the transfer from the consulting segment of the former Tamano Consultants Co., Ltd.

FYE June2019

FYE June
2020

FYE June
2021

FYE June
2022

FYE June
2023

FYE June
2024（Plan）

Copyright Ⓒ Integrated Design & Engineering Holdings Co., Ltd. All Rights Reserved.

-2,00038

Energy Business: Market Trends and Operating Results
Repair Expenses for Tokyo Electric Power Company
Holdings, Inc. (Billion yen)

ID&E (Nippon Koei’s) Operating Results in Energy Business (Million yen)Repair Expenses
1,800

Orders

Revenue

Operating profit

1,778

26,00025,000

1,750

1,685

1,700

1,688

17,577
1,638

1,650

20,85519,986
16,122
16,116

17,25016,134

16,452

14,087

18,79918,827

16,621
13,991

14,343

1,600

1,542

1,550

1,552

1,500

1,450

1,400

FYE
2017

FYE
2018

FYE
2019

FYE
2020

FYE
2021

FYE
2022

2,683

1,855

1,724

640

814

1,290

2,974

2,200

FYE June2017

FYE June2018

FYE June2019

FYE June
2020

FYE June
2021

FYE June
2022

FYE June
2023

FYE June
2024（Plan）*Figures showing operating results for FYE June 2016 through FYE June 2020 are simple aggregations of the figures for the Power Engineering and Energy Businesses before inter-company eliminations.
*Operating results for years up to FYE June 2020 are based on Japanese GAAP while those for FYE June 2021 and onward are based on the IFRS.

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39

Inquiries on IR-related matters

Corporate Communication Office,
MAIL: c-com@n-koei.co.jp
This presentation is provided for information purposes only and is not intended to solicit any action.
Materials in this presentation (including forecasts of financial results) have been prepared based on
credible information available at the time of publication and certain assumptions Nippon Koei
believes to be reasonable. Actual results may differ significantly due to various factors.

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40