Supplementary Materials for theSummary of Financial Reports
1Q, FYE June 30, 2019
November 12, 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 (includingforecasts of financial Results) is based on credible information available at the time of publication and certain assumptions Nippon Koei believes tobe reasonable. Various factors may cause actual results to differ from the projected numbers or other expectations implied or expressed in thispresentation.

1Q Results for FYE June 30, 2019
Domestic Consulting and Urban & Spatial Development were strong, with orders
rising year on year, and net sales also increasing. In International Consulting andPower Engineering, the scale of the operating loss crew, due to costs being posted
upfront.
(Millions of yen)

FYE18/6
1Q
Results

FYE19/6
1Q
Results

YoY Change
Amount%Orders

26,71328,891

2,177

108.2%Net sales

14,16817,7293,560

125.1%

Gross profit

4,470

4,503

33

100.7%

Operating Income- 1,557- 1,962405－

Ordinary Income- 1,189- 2,061871－8- 1,654- 1,662－Profit attributable toowners of parent■ Orders in the Power Engineering Operations declined, but orders in the Domestic Consulting Operations, the InternationalConsulting Operations, and the Urban & Spatial Development Operations were robust, rising year on year.
■ Net sales also rose year on year, helped by the contribution from the Domestic Consulting Operations.
■ Although a smaller operating loss was recorded in the Domestic Consulting Operations, profits declined in other businesses,
leading to a larger operating loss than in the same period of the previous year.
■ Profit attributable to owners of parent decreased year on year, due to a difficult comparison with the extraordinary gains on
disposal of real estate posted in the same period of the previous year.
2Results by Business Segment (Orders)
FYE18/6
1Q
Results(Millions of yen)OrdersFYE19/6
1Q
Results

YoY Change
Amount%26,71328,891

2,177

108.2%

Domestic Consulting

13,383

14,266882

106.6%

International Consulting

6,595

7,431

836

112.7%

Power Engineering

4,069

1,902

- 2,166

46.7%

Urban & Spatial Development

2,660

5,126

2,466

192.7%－134

134－Energy■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development■Energy3

Results by Business Segment (Net sales)
FYE18/6
1Q
Results(Millions of yen)

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

FYE19/6
1Q
Results

YoY Change
Amount14,168
1,974
5,837
3,103
3,104－148

17,729
5,749
5,111
3,088
3,291
213
273

3,560
3,774725- 14187213
125■Power Engineering■Urban & Spatial Development%

125.1%
291.1%
87.6%
99.5%
106.0%－184.2%■Energy4

Results by Business Segment (Operating Income)
FYE18/6
1Q
Results(Millions of yen)

Operating Income
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate/Others■Domestic Consulting■International Consulting

FYE19/6
1Q
Results

YoY Change
Amount- 1,557- 1,982
678
240
41－
- 536

- 1,962- 1,511- 33138- 2136
- 497

- 405
470
- 712
- 102
- 62
- 3638■Power Engineering■Urban & Spatial Development%－－－57.5%－－－■Energy5Overview of Performance by Business Segment
Domestic Consulting–––Orders grew year on year due to the use of engineering proposals to win national government-related
projects, and strength in the private sector.
Net sales rose significantly, due to steady progress in projects, and as a result of the switch to thepercentage of completion method for project orders received the previous year.
The operating loss contracted, as a consequence of the increase in net sales.

International Consulting–––

Orders rose year on year, with the Company winning orders such as that for Bangladesh MRT Line-1, amajor project.
Affected by the ending of the operations phase of major projects, and temporary changes in the marketenvironment, as well as the reaction to changes to accounting standards made the previous year, sales at
Group companies fell, leading to lower revenue.
Operating income was hit not only by lower net sales, but also by increases in expenses, and in personnel
costs as a result of measures to strengthen the marketing structure.

Power Engineering–––Orders fell in comparison the same period of the previous year, in which some major projects were won.
Despite the effects of a slump in orders for electric substation control devices in the previous fiscal year,net sales were flat year on year, due to strength in construction and plant (electric equipment consulting).
Operating income declined as a result of deteriorating profitability, caused by cost-cutting demands, etc.

6Overview of Performance by Business Segment
Urban & Spatial Development– As a result of receiving orders related to the Westminster renovation and otherprojects, orders rose year on year.
– Net sales increased due to steady progress in orders on hand.
– Operating profit declined as a result of upfront costs related to measures tobolster personnel, and expenses related to office contract extensions and so on.
* The fixed exchange rate applied to the results for the 1st quarter of FYE June 30, 2019: 1 GBP = 146.18 JPY (the rate used in the plan for
FYE June 30, 2019 was 1 GBP = 149.17 JPY)** The amount of amortization expense of Urban & Spatial Development business for FYE June 30, 2019 is approx. 1 billion JPY (goodwill:approx. 400 million JPY; other intangible fixed assets: approx. 500 million JPY).

Energy– Orders were in line with forecasts, helped by projects such as those involving
management systems, and the installation of screw turbines.
– Net sales were boosted by the contribution from the Domestic Power Plant
Operations.
– An operating loss was posted as a result of upfront costs recorded in theInternational Energy Management Operations.
7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 18/6
Results
104,350
48,52926,716
15,943
12,855
179
106,023
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

No changes have been made to the forecast for theentire FYE June 2019 period.

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 ChangeAmount
20,649- 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
249
726
426
81403
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%

8

Project Highlights (Domestic Consulting)
Facilities design work for the Sameura dam restoration projectThis is restoration work aimed at increasing the ability of the Sameura
dam, known as “the water carrier of Shikoku,” to mitigate floodwaterand discharge water at time of floods.
For this project, Nippon Koei conducted a series of investigations thatincluded evaluations of the soundness of the existing dam body, design
related to new discharge facilities, renovation of the dam body itself,
evaluation of the bedrock foundation, and planning for the construction
itself, as well as drawing up a basic layout for the implementation
design.
Our engineering proposal, backed by our extensive experience in dam
restoration projects, and our CIM* proposal for the construction planaddressing the project issues, were both well received.

*A system that enhances the efficiency of the construction project by using a data model to link the necessary information occurring at each stage in relation to surveys,construction and maintenance.

Wind power generation facility

Survey related to environmental issues

In response to the rapid growth in assessment projects for wind power generation
facilities, the Ministry of the Environment has launched zoning operations
nationwide with the aim of both preserving the environment and promoting thedevelopment of the business.
Nippon Koei is implementing services such as managing progress in 10 model
regions around Japan as an organizer, operating investigative commissions,inspecting local sites, and providing support for the drawing up of zoning manuals.
(Photo: Inspecting wind turbines operated by Suttsu Town, Hokkaido Prefecture)9

Project Highlights (International Consulting)
Detailed Design and Tender Assistance for Dhaka Mass Rapid Transit
Development Project (MRT Line-1) (E/S), Bangladesh
A joint venture of seven companies, including Nippon
Koei, has received orders related to the Dhaka Mass
Rapid Transit’s Line-1, the first subway to beconstructed in Bangladesh.
In addition to this MRT development, Nippon Koei isestablishing its presence in this country, where demandis growing, through its involvement with the Dhaka
International Airport Expansion Project, feasibility
studies for new airport developments, nationwide
transmission grid projects, and flood mitigation andproductivity improvements.

Establishment of subsidiary in Bangladesh
In September 2018, we established Nippon Koei
Bangladesh Ltd. in Dhaka, the capital of Bangladesh.

Since establishing a liaison office in Dhaka in April
2014, our sales in Bangladesh have grown steadily, andgiven that the market is expected to continue to grow,we will leverage our accumulated experience to provide
consulting services for both public-sector and privatesector projects.
10Project Highlights (Power Engineering)
Obora No.1 Power Station turbine upgrade project for The Tokyo Electric Generation
Company, Incorporated
Nearly 60 years after the power station first began operation, thedeterioration of its facilities has become an issue, and this projectwill make use of feed-in tariffs (FIT) to implement a full upgrade.
Nippon Koei will carry out a complete upgrade to the power
generation facilities, manufacturing turbine generation equipment
and external transformer facilities, as well as carrying out related
civil engineering works. The removal work began in October
2018, and is scheduled to be completed in November 2020.
The turbine that will be delivered will be the largest ever productmanufactured by Nippon Koei, with an output of 12,244kW, andrepresents a concentration of the advanced engineering knowhow that the Company has cultivated over the years. It is capableof turning at speeds of 1000 rpm, which is considered fast for thisclass of equipment.

Narita International Airport Terminal 1 multi-story car park installation project (facilities for receiving andtransmitting electricity)
The multi-story car park at Narita International Airport’s Terminal
1 is being extended to ease congestion at busy periods.
Nippon Koei will carry out the installation of the power supply
facilities for the car park extension.
The special high-voltage transmission line facilities work
performed at Terminal 3 is considered to have been a success,which led to the Company winning the orders for Terminal 1. We
are expanding the scope of our work to projects outside those ofthe electric power companies.
11

Project Highlights (Urban & Spatial Development/Energy)
Urban & Spatial Development: Pondicherry Smart City Development
Nippon Koei India and BDP India have jointly received
consulting business orders related to the design, management
and supervision of the smart city development in thePondicherry district of India. We will tackle this new field bymaking use of synergies between members of the Group.
This new field consists of adding information technology to roadand water supply infrastructure, and developing and installing
all of these together, and is an advanced project even by thestandards of the Nippon Koei Group.

Energy： First installation of screw turbine manufactured in Japan
Nippon Koei has been working on the research and development of a screw
turbine that is able to generate electricity with high efficiency even with a low
head of water, and will install the first commercial example of this. This will be
the first installation of a screw turbine manufactured in Japan.
This will be set up in the Terui redevelopment district, using underutilized
agricultural water for its head. All power generated will be sold, utilizing feedin tariffs (FIT).
*The photo shows a demonstration experiment at
the Kotaka power plant (the Kotaka weir screw
turbine demonstration facilities)
12