Supplementary Materials for theSummary of Financial Reports
Half Year, FYE June 30, 2017
February 13, 2017
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.

2Q Results for FYE June 30, 2017
FYE 16/6 2Q
Results

FYE17/6 2Q
Results

Orders(*1)

38,245Net sales
Gross profit

yoyyoy(%)

58,451

20,206152.8%

52,895 138.3%

20,33626,304

5,968

129.3%

20,311

99.9%

4,736

8,368

3,632

176.7%

5,674

119.8%- 3,500- 2,747752－- 2,824－- 3,328- 2,286

1,041－- 2,651- 1,800

850－（Millions of yen）

Operating
IncomeOrdinary
IncomeProfit attributable toowners of parent–––

ReferenceValues
FYE17/62Q(*2)

yoy(%)(*2) Excluded the Urban & Spatial
Development segment

The amount of orders saw a substantial increase over the same period of the previous year. The trend of Domestic
Consulting and International Consulting Business was favorable.
Net sales, excluding consolidated BDP, saw figures at the same level as the previous year.
Operating income saw an improvement in earnings, due to the good performance of International Consulting
Business and Power Engineering Business. （Operating margin FYE 16/6 2Q： ｰ17.2%→ FYE 17/6 2Q： ｰ10.4%）(*1) We have changed the calculation standard for orders starting this period. For details, please see page 10. Results for
2Q of FYE June 30, 2016 are also based upon figures calculated according to the same standard.
2Results by Business Segment (Orders)（Millions of yen）

FYE17/6 2Q
Results

FYE16/6 2Q
Results

yoyyoy(%)

Orders(*1)

38,24558,451

20,206152.8%

Domestic Consulting

19,487

23,951

4,464

122.9%

International Consulting

11,052

22,229

11,177201.1%

Power Engineering

7,697

6,690

- 1,007

86.9%

Urban & Spatial Development－5,5555,555－Others

724

16324.1%(*1) We have changed the calculation standard for orders starting this period. For details, please see page 10. Results for
2Q of FYE June 30, 2016 are also based upon figures calculated according the same standard.
■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development3

Result by Business Segment (Sales)（Millions of yen）

FYE 17/6 2Q
Results

FYE16/6 2Q
Results

yoyyoy(%)

Net Sales

20,33626,304

5,968

129.3%

Domestic Consulting

4,470

4,237- 233

94.8%

International Consulting

8,347

7,959- 388

95.3%

Power Engineering

7,148

7,738589

108.2%－5,993

5,993－

Real Estate Leasing

270241- 29

89.3%

Others

9813436136.9%

Urban & Spatial Development■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development4

Results by Business Segment (Operating Income)（Millions of yen）

FYE 17/6 2Q
Results

FYE 16/6 2Q
Results

yoyyoy(%)

Operating Income- 3,500- 2,747752－

Domestic Consulting- 3,535- 3,48252－

International Consulting- 118

201319－Power Engineering

1,166

1,442

276

123.7%－7676－

201

203

2101.3%- 1,214- 1,18925－

Urban & Spatial Development

Real Estate Leasing
Others/Reconciliations■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development

5Overview of Performance by Business Segment (1)Domestic Consulting–––

The amount of orders increased compared to the same period of the previous fiscal year owing to the orders rescheduled by theclient and robust receiving orders in core business areas. (*The order for Cairo Metro project, approximately JPY 2 billion,acquired by Nippon Civic Consulting Engineers Co., Ltd., is recorded.)
Net sales fell short of the same period of the previous year as a result of decrease in number of large-scale special projects,
such as small hydroelectric generation, and construction of projects completed in the first half of the period.
Operating income increased due to the increase in gross profit resulting from improved productivity generated by the promotionof in-house manufacturing.

International Consulting–––

The amount of orders largely surpassed the one of the previous year owing to the increase in number of large-scale projects.
(*The Cairo Metro project, acquired by Nippon Koei Co., Ltd., reached the amount of approximately JPY 8 billion.)
Net sales fell short compared to the same period of the previous year due to the accidentally enforced interruption of a project inBangladesh, while the trend of the traffic/transport sector was favorable.
Operating income turned into the black during the first half of the period, while showing a decline in sales, owing to thecontinuous implementation of profit management efforts. (Growth rate of Operating Income from -1.4% to +2.5%)

Power Engineering–––

The amount of orders did not reach the one of the same period of the previous year due to delays in contracting proceduresfor some projects.
Net sales surpassed the one of the previous year, with completions and fairly progressing status of large-scale projects
started in the past.
Operating income also surpassed the previous year, with completion of a number of large-scale projects and steady progressin productivity improvement. (Growth of Operating Income rose from 16.3% to 18.6%)

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Overview of Performance by Business Segment (2)Urban & Spatial Development–––

While the number of new orders slightly declined in July and August immediately after the announcement of Brexit, orders showed asteady progress vis-à-vis the plan.
Net sales showed better than the plan. The sales trend steadily progressed almost as forecasted either in the UK or overseas on alocal currency basis.
Even with the impact of foreign currency translation (weak GBP), the status of operating income was almost as forecasted.
(Operating Income to Sales after amortization of goodwill: 1.3%)* The amount of amortization expenses for FYE June 30, 2017 is approximately JPY 1 billion.
- Amortization of goodwill: approximately JPY 500 million- Other intangible fixed assets: Just over JPY 500 million* Consolidated results including BDP are recorded with a three-month time lag. Thus, the consolidated settlement of 2Q (JulyDecember 2016) is based upon the performance within a six-month period of April-September 2016.
* Fixed rate of exchange for 2Q results: 1 GBP = 144.5 JPY(Rate used in the plan for the FYE June 30, 2017 was 1 GBP = 160 JPY)

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FYE 17/6 Forecast (Orders Amount Revised)
The forecast for orders was revised upward as a result of adding the order for the Cairo Metro project.
No changes have been made to the forecasts for net sales and operating income for the entire period.
（Millions of yen）

FYE 17/6Forecast

Ordinary income

4,365

114,000
105,000
45,00026,00018,50014,000
6,000
3,200
1,600
3,100
600
6,300

Profit attributable toowners of parent

1,823

3,600

Orders
Net sales

81,865- Domestic Consulting

40,778- International Consulting

22,070- Power Engineering

17,522- Urban & Spatial Development-

Operating income

4,723- Domestic Consulting

2,956- International Consulting

1,156- Power Engineering

3,048- Urban & Spatial Development*FYE 16/6
Results
104,019-yoy

yoy(%)

9,980

109.6%

23,134128.3%

4,221

110.4%

3,929

117.8%

977

105.6%

14,000-1,276127.0%

243

108.2%

443

138.3%

51

101.7%

600-1,934144.3%

1,776

197.5%

Note: Net sales and operating income are exclusively consisted of the main segments of Domestic Consulting, International Consulting , PowerEngineering and Urban & Spatial Development. Net sales and operating income also include the Real Estate Leasing segment, etc.
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FYE 17/6 Forecast (Orders Amount Revised)（Millions of yen）

FYE 17/6

FYE 17/6

Forecast (initial)

Forecast (revised)

Increase/Decrease

104,000

114,000

10,000- Domestic Consulting

46,00048,0002,000- International Consulting

28,00036,0008,000- Power Engineering

16,00016,0000- Urban & Spatial Development

14,00014,0000Orders（Details of change）
Domestic Consulting
Order received: Cairo Metro project acquired by Nippon Civic Consulting Engineers Co., Ltd.: JPY 2 billion
International Consulting
Order received: Cairo Metro project acquired by Nippon Koei Co., Ltd. : JPY 8 billion

9(Reference) On changes in the calculation standards for orders
Previously, amount of orders included the balances of foreign currency translation (*) of outstanding orders
as of the end of the previous period and orders for the current period. Starting this period, however, orders
are settled without foreign currency translation.
 Previous method of calculation

 Current method of calculation (starting this period)

Loss

Loss

Orders for the current period
include the balances offoreign currency translation ofoutstanding orders as of theend of the previous period
and orders for the current
periodOutstandingorders as of theend of theprevious period

Current period
ordersCurrent period
net sales

Orders for the current period do
not include the balances offoreign currency translation ofoutstanding orders as of theend of the previous period andorders for the current period

Outstandingorders as of theend of the current
periodOutstandingorders as of theend of theprevious period

Current period
ordersBalance of foreign
currencytranslation

Current period
net sales

Outstandingorders as of theend of the current
period(*) Details on the balances of foreign currency translation of outstanding orders as of the end of the previous period and orders for thecurrent period are explained in the section titled “4. Supplementary Information” on page12, the Summary of Financial Results.
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