Supplementary Materials for the Fiscal
Period Ended June 30, 2019
August 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 otherexpectations implied or expressed in this presentation.

Results for FYE June 30, 2019
Orders hit a record high, net sales marked a new record high for the seventh consecutive year,and operating income fell.
(Millions of yen)

(Millions of yen)

FYE18/6
Results

FYE19/6
Results

YoY Change
Amount%FYE19/6
Planvs. Plan
Amount%Orders104,350

118,085

13,734113.2%

125,000- 6,914

94.5%

Net sales

106,023

108,589

2,565

102.4%

115,000- 6,41094.4%

Gross profit

32,35932,962602

101.9%

34,400- 1,437

95.8%

Operating
Income

6,561

5,110

- 1,451

77.9%

6,200

- 1,089

82.4%

Ordinary Income

6,721

5,584

- 1,13783.1%

6,100- 515

91.5%

Profit attributable toowners of parent

4,555

3,318

- 1,23772.8%

4,100- 781

80.9%■ Orders received and net sales: Although orders received and net sales increased year on year due
mainly to strong performance in the Domestic Consulting segment, results fell short of the plan.
■ Operating income and ordinary income: Due to lower earnings in International Consulting and upfront
expenses related to new businesses, operating income and ordinary income decreased from theprevious year and fell short of the plan.
■ Net income: Net income declined year on year due mainly to the realignment of offices, in addition to theabove factors, and fell short of the plan.
2

Results by Business Segment (Orders)
FYE18/6
Results(Millions of yen)FYE19/6
Results

YoY Change
Amount%FYE19/6
Plan

vs. PlanAmount%Orders received

104,350

118,085

13,734113.2%

125,000- 6,914

94.5%

Domestic Consulting

48,52952,855

4,326 108.9%

46,0006,855

114.9%

International Consulting

26,71628,482

1,765 106.6%

44,000 - 15,517

64.7%

Power engineering

15,943

15,411

- 531

96.7%

14,0001,411

110.1%

Urban & spatial
development

12,855

20,5107,655 159.5%

16,0004,510 128.2%

179723544 403.3%

4,000- 3,276

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

18.1%■Energy3

Results by Business Segment (Net sales)
FYE18/6
Results(Millions of yen)FYE19/6
Results

YoY Change

Amount%vs. Plan

FYE19/6
Plan

Amount%Net sales

106,023

108,589

2,565 102.4%

115,000- 6,410

94.4%

Domestic Consulting

46,59549,593

2,997 106.4%

44,0005,593

112.7%

International Consulting

28,88924,928- 3,960

86.3%

31,000- 6,07180.4%

Power engineering

15,762

16,531

769 104.9%

20,000- 3,468

82.7%

Urban & spatialdevelopment

13,04015,359117.8%

16,500- 1,14093.1%

354719364 202.8%

2,500- 1,780

28.8%

1,381

1,456

75 105.4%

1,000EnergyReal Estate/Others■Domestic Consulting■International Consulting

2,319■Power Engineering■Urban & Spatial Development

456 145.6%■Energy4

Results by Business Segment (Operating income)
FYE18/6
Results(Millions of yen)FYE19/6
Results

YoY ChangeAmount%

vs. Plan

FYE19/6Plan

Amount%82.4%

Operating income

6,561

5,110

- 1,451

77.9%

6,200

- 1,089

Domestic Consulting

4,279

4,990

710

116.6%

3,500

1.490 142.6%

International Consulting

2,649

841

- 1,807

31.8%

2,400

- 1,558

35.1%

Power engineering

1,873

2,089

215

111.5%

2,600

- 510

80.4%

Urban & spatial
development

173

151

- 21

87.4%

600

- 448

25.3%

Energy-18- 365

- 346

-

- 100

- 265

-

- 2,396- 2,597- 201-- 2,800

202-

Real Estate/Head Office■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development■Energy5

Overview of Performance by Business Segment
Domestic Consulting– The amount of orders received significantly exceeded both the level of the previous fiscal
year and the plan due to disaster countermeasures and marked a record high.
– Net sales were significantly higher than those of the previous fiscal year and the plan,
thanks to the active initiatives taken for projects related to disaster prevention andmitigation, and national resilience.
– Operating income was higher than both the level of the previous fiscal year and the plan due
to higher net sales and a decrease in unprofitable projects resulting from quality assurance
and productivity improvements.

International Consulting– The amount of orders received was higher than the level of a year earlier, although it fell
short of the plan due to a lag in the timing of receiving large orders.
– Net sales decreased due to a delay in receiving an additional contract for the Vietnam
railway project and fell short of the plan.
– Operating income decreased mainly as a result of a lower operating rate caused by a lag inthe timing of receiving orders.
Power Engineering– The amount of orders received was slightly down from the previous fiscal year but exceeded
the plan, thanks to large orders acquired in the fourth quarter.
– Net sales increased year on year due to the progress in existing operations from theprevious fiscal year, but fell short of the plan.
– Operating income increased year on year due to higher sales and thorough cost reductions.
6Overview of Performance by Business Segment
Urban & Spatial Development– The amount of orders received increased year on year and achieved the plan, contributed
to by the start of full-scale orders related to Westminster and an additional contract for alarge-scale project.
– Net sales increased as Quadrangle joined the NK Group, in addition to strong orders
received.
– Operating income decreased due to upfront selling, general and administrative expenses,
including personnel expenses relating to Westminster, in addition to costs related to theacquisition of Quadrangle.
*The actual exchange rate applied to the results for the fiscal year ended June 30, 2019 was 1 GBP = 143.46JPY (the assumption
used in the full-year forecast was 1 GBP = 149.17JPY)**Amortization for the Urban & Spatial Development business in the fiscal year ended June 30, 2019 was approx. 1 billion JPY(goodwill of approx. 400 million JPY, and other intangible fixed assets of approx. 500 million JPY).

Energy– The amount of orders fell short of the plan due to the time lag in receiving orders for theEuropean EPC business, although progress was made in renewable energy (solar power)
monitoring services and others.
– Net sales fell short of the plan due to the aforementioned time lag in receiving orders,
although revenues from monitoring services and the domestic power generation businesswere recorded.
– There was an operating loss due to anticipatory costs for the International Energy
Management business.
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/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 19/6Results

118,085
52,85528,482
15,411
20,510723
108,589
49,59324,928
16,531
15,359
719
1,456
5,110
4,990
841
2,089
151
- 365
- 2,597
5,584
3,318
4.7
5.7

Application of IFRS from FYE June 2020
(Results disclosed represent the fiscal year-end
financial results.)
FYE20/6
YoY Change
Forecast
Amount(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

19,314- 455
19,617588- 1,910
1,376
19,110
1,706
9,571
3,068
3,440
1,480
- 156
689
- 790
2,058
110
448
- 434
- 702
615
281

YoY Change%

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
7.58