Supplements for theSummary of Financial Results
Ended June 30, 2017
August 14, 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.

Results for FYE June 30, 2017
NK marked highest records ever in Orders, Net Sales, Operating & Ordinary Incomes.
YoY Change(Millions of yen)

FYE16/6
Results

FYE17/6
Results

AmountOrders104,019

117,442

Net sales

81,865Gross profit

vs. Plan%

FYE17/6
Forecast

Amount13,422112.9%

114,000

3,442

103.0%

101,338

19,472123.8%

105,000- 3,661

96.5%

22,35930,937

8,577

138.4%

29,5001,437

104.9%

Operating Income

4,723

5,464

741

115.7%

6,000

- 535

91.1%

Ordinary Income

4,365

5,958

1,592

136.5%

6,300

- 341

94.6%

Profit attributable to ownersof parent

1,823

3,288

1,464

180.3%

3,600- 311

91.3%%■Orders:

Surpassed the budget target and last year's result owing to good performance of Domestic andInternational Consulting businesses.
■Net sales:
Recorded maximum in the past 3 accounting periods in a row. But fell short of the budget target
because completion of big projects of International Consulting and Power Engineering will bedelayed within the next period.
■Operating Income:Achieved a record by the contribution of Domestic and International businesses, though
underran the budget target.
■Ordinary Income:Hit the highest after 2-year downturn.
■Profit attributable to owners of parent: Substantially exceeded the record of previous year, but not reached thebudget target.
* NK has changed the calculation standard for orders starting this period. Results for FYE June 30, 2016 are also based upon figures calculated
according to the same standard.
** BDP altered the closing date from the end of March to June this year. Therefore, the fiscal year ending June 2017 is composed of 15 months.
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Results by Business Segment (Orders)
YoY Changevs. PlanFYE16/6
Results

FYE17/6
ResultsAmount%

Orders104,019

117,442

13,422112.9%

3,442

103.0%

Domestic Consulting

44,10948,2654,155

109.4%

265

100.6%

International Consulting

28,876

41,573

12,696144.0%

5,573

115.5%

Power Engineering

14,716

14,087

- 629

95.7%

- 1,91288.0%

Urban & Spatial Development

16,251

13,460- 2,790

82.8%

- 539

96.1%

6455

-886.3%55-(Millions of yen)

OthersAmount%* NK has changed the calculation standard for orders starting this period. Results for FYE June 30, 2016 are also based upon figures calculated
according to the same standard.
** BDP altered the closing date from the end of March to June this year. Therefore, BDP’s FYE June 30, 2017 is composed of 15 months.

■Domestic Consulting

FY2016FY2017■International Consulting■Power Engineering

FY2016FY2016FY2017FY2017■Urban & Spatial Development

FY2016FY20172

Results by Business Segment (Sales)
FYE16/6 FYE17/6
ResultsResults(Millions of yen)

YoY ChangeAmountvs. Plan%Amount%Net Sales

81,865

101,338

19,472123.8%- 3,661

96.5%

Domestic Consulting

40,77843,5162,738

106.7%- 1,483

96.7%

International Consulting

22,07024,491

2,420

111.0%- 1,508

94.2%

Power Engineering

17,522

17,57754100.3%

- 922

95.0%

-14,347--347

102.5%

Real Estate Leasing

514473

- 40

92.1%

- 26

94.8%

Others

979

931

- 47

95.1%

- 68

93.1%

Urban & Spatial Development* BDP altered the closing date from the end of March to June this year. Therefore, BDP’s FYE June 30, 2017 is composed of 15 months.

■Domestic Consulting

FY2016FY2017■International Consulting■Power Engineering

FY2016FY2016FY2017FY2017■Urban & Spatial Development

FY2016FY2017
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Results by Business Segment (Operating Income)YoY Change

vs. Plan

FYE16/6
Results

FYE17/6
Results

AmountOperating Income

4,723

5,464

741

115.7%

- 535

91.1%

Domestic Consulting

2,956

3,298

341

111.6%

98103.1%

International Consulting

1,156

1,887

730

163.2%

287

118.0%

Power Engineering

3,048

2,683

- 364

88.0%

- 416

86.6%

-81-

-- 518

13.5%

386

401

14103.9%

1100.3%- 2,824- 2,886

- 62

-13-

(Millions of yen)

Urban & Spatial Development
Real Estate Leasing
Others%Amount%* BDP altered the closing date from the end of March to June this year. Therefore, BDP’s FYE June 30, 2017 is composed of 15 months.

■Domestic Consulting

FY2016FY2017■International Consulting■Power Engineering

FY2016FY2016FY2017FY2017■Urban & Spatial Development

FY2016FY20174

Overview of Performance by Business Segment
Domestic Consulting–Order amount surpassed the budget target and last year's result
owing to good performance of prioritized businesses, such as
disaster prevention/reduction, et al., and winning bids of national
projects as a result of strengthening technical competitiveness.
– Sales amount exceeded the one of previous period, with theelevation of orders received, fell short of the budget target, on
the other hand, due to the delay of big-project completion byconsolidated subsidiaries.
– Ordinary income went beyond figures of both previous year andbudget target, by productivity enhancement and an increase ofprofitable projects from the government.

Field Survey of Sediment Disaster(Minamiaso Village, Kumamoto, Japan)

International Consulting–––

Order amount substantially surpassed the budget target and last
year's result with contribution of big-project orders, such as Cairo
Metro Line No.4, Hazrat Shahjalal International Airport (Dhaka)
Expansion, Electricity Sector Reconstruction in Iraq, et al.
Sales amount exceeded the one of previous period, however,underran the budget target due to the delay of completion ofsome projects.
Ordinary income exceeded figures of both previous period andbudget target, owing to profitability improvement by theintroduction of revenue-management systems.

General Consultancy Services for Greater
Cairo Metro Line No.4 Phase 15

Overview of Performance by Business Segment
Power Engineering–––

Order amount fell short of the last period’s record and budget
target, due to the delay of contracting procedures for large-scale
projects.
Sales amount is at almost equivalent level of the previous period;
as for the budget target, however, not satisfactorily attained due tothe delay of contract conclusion for large-scale projects.
Operating income underran both figures of the last year andbudget target, caused by personnel increase corresponding to
extraordinarily high domestic/international demand for hydropowerbusiness, in spite of thorough cost reduction efforts.

Urban & Spatial Development–

Both orders and sales are rather slumping because of delaying
order issuance of public works for education-related facilities,
backed by ambiguous climate of public administration in Britain
due to Brexit.

–Operating income has been negatively affected by stagnant sales
and weak pound sterling.

* BDP altered the closing date from the end of March to June this year. Therefore,
BDP’s FYE June 30, 2017 is composed of 15 months.
** The amount of amortization expenses for FYE June 30, 2017 is approximately
JPY 1 billion (Amortization of goodwill: approximately JPY 500 million; Otherintangible fixed assets: Just over JPY 500 million).
*** Fixed rate of exchange for FYE June 30, 2017 results: 1 GBP = 145.16 JPY(Rate used in the plan for the FYE June 30, 2017 was 1 GBP = 160 JPY)

Renovation Project of Ikari Power Station

Palace Of Westminster Refurbishment

6FYE June 2018 Forecast
Focusing upon building basement to realize development targets set forth in the next mid-term management plan,under the slogan of “Investment and Cooperation,” NK will expand investment in technological improvement,
human resource development, strengthening marketing structure and new business frontiers.
(Millions of yen)

FYE18/6Forecast

FYE17/6Results

103,000
114,000
47,20031,80021,20012,000
1,800
7,700
3,500
2,400
3,500
50
- 1,750
7,800
4,900

117,442
101,338
43,51624,491
17,577
14,347
1,405
5,464
3,298
1,887
2,683
81
- 2,485
5,958
3,288

Operating margin（％）

6.8

5.4

ROE（％）

8.7

6.2

Orders
Net sales
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
Energy/Real Estate/Others

Operating Income
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
Energy/Real Estate/Others

Ordinary income
Profit attributable to owners of parent

YoY ChangeAmountFYE18/6
Reference ※%- 14,442

87.7%

12,662112.4%

3,684

108.4%

7,309

129.8%

3,623

120.6%- 2,347

83.6%

395

128.1%

2,236

140.9%

202

106.1%

513

127.1%

817

130.4%

- 31

61.7%

735

-

1,842

130.9%

1,612

149.0%

103,000
104,000
43,00028,20019,10012,000
1,700
5,800
2,700
2,000
2,800
50
- 1,750
6,000
3,600

※ Estimated budget target June 2018, based uponprevious standard (completed-contract method)* Effective from the Fiscal Year Ending June 30, 2018, the Group changes the primary method of revenue recognition from completedcontract method to percentage of completion method. For details, please see page 10.
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(Reference) Change of BDP’s Account Closing Date (from June 2017)
BDP has altered its official closing date from the end of March to June since 2017.
■Purposes• To promote efficient business operations, keeping accordance with the long-term strategic vision, byconsolidating account closing date of all the group companies• To deliver and capture management information promptly and accurately• To enhance management transparency by timely and proper information disclosure■Impacts on the closing of FYE June 30, 2017
• Consolidation by importing data of 15-month (from April 2016 to June 2017) transactions of BDP business• Amount of amortization expense is approx. JPY 1 billion (for 12 months. goodwill: 500 million/to be depreciatedover 20 yrs.; other intangible fixed assets: 500 million) plus JPY 250 million (for 3 months extra)

FYE17/6
June

Sept

Dec

FYE18/6
March

Consolidation

1Q

2Q

3Q

BDP

2Q

3Q

4Q

1Q

June

Sept

4Q

Dec

March

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Closing of FYE June 30, 2017 includes 15-month transactions【Reference】 Quarterly Performance of Urban & Spatial Development FYE June 30, 2017
(Millionsof yen)2016.4-6(1Q)

2016.7-9(2Q)2016.10-12(3Q)2017.1-3(4Q)2017.4-6

Orders

2,806

2,749

1,970

2,996

2,939

13,46014,000

Sales

3,260

2,733

2,615

2,973

2,766

14,347

14,00076△0△ 2622981600

Operating
Income15-month
BudgetAccumulation FYE June 2017

* Fixed rate of exchange for FYE June 30, 2017 results: 1 GBP = 145.16 JPY (Rate used in the plan for the FYE June 30, 2017 was 1 GBP = 160 JPY)
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(Reference) On changes in calculation standards for orders (from June 2017)
Previously, amount of orders included the balances of foreign currency translation (*) of outstanding orders
as of the end of the previous period. Starting FYE June 30, 2017, 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 thebalances of foreign
currency translation ofoutstanding orders as ofthe end of the previousperiodOutstandingorders as of theend of theprevious period

Current period
ordersCurrent period
net sales

Orders for the current period
do not include the balancesof foreign currencytranslation of outstandingorders as of the end of theprevious 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 are explained in
the section titled “4. Supplementary Information” on page21, the Summary of Financial Results.
9(Reference) On changes in calculation standards for Sales (from June 2018)
Effective from the Fiscal Year Ending June 30, 2018, the Group changes the primary methodof revenue recognition from completed-contract method to percentage of completion method.
Calculation by “Percentage of Completion Method”(Sales Amount)=(Estimated Total Revenue)× Progression Rate – (Cumulative Salesby the End of Previous Period)
Progression Rate ＝Costs occurred (operational, outsourcing, travel, etc.)

Sales Recording by “Percentage of Completion Method”

Progression
Rate: 70%

Completion

1st year

2nd year

3rd year

Total00

3,000

3,000

750

1,350

900

3,000

Case: Project of 3-year contract period, JPY
Progression
30-million value
Rate: 25%

Sales amount is bookedat the end of the Project
Sales amount is booked inproportion to the progressCompletedcontract method% of completion
methodTotal Estimated Costs

3,000×25%

3,000×70%ｰ750

3,000×100%－750－1,350* The figures for Consolidated Financial Results Forecast for the FYE June 30, 2018 is calculated based on the new method.
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