Presentation of Financial Resultsfor FYE June 30, 2021 andMedium-term Management Plan
September 8, 2021

Director and Chairman

Ryuichi Arimoto

Representative Director and President Hiroaki Shinya

Nippon Koei Co., Ltd.

Results for FYE June 30, 2021

Review of FYE June 30, 2021 (Japanese GAAP)
Actively pursued business activities during the year while identifying changes in the market
environment and taking countermeasures. Forecasts were revised upward.
Initial Plan for(Millions of yen)
Reference(Plan-A)

Feb 12
Revised
Forecasts

Initial Plan
(Plan-B)

May 14
Revised
Forecasts

Aug 2
Revised
Forecasts

FYE 2021/6
Results)

Orders123,400

104,900+13,400

118,300▲1,900116,400+15,700

132,100+77

132,177

Net sales

128,300

102,600+15,000

117,600▲1,000116,600+1,100117,700+10

117,710

Operatingprofit

7,600

1,500

+3,4004,900+2,200

7,100

+600

7,700

+15

7,715

Profit

7,100

500

+800

1,300

+1,300

2,600

+900

3,500

+37

3,537

Assumption for initial plan
⚫ Basic policy: Implement the best measures on assumptionthat the worst situation continues throughout the year.
⚫ Although the impact of COVID-19 on net sales wasestimated to be up to ¥40 billion, various measures resulted
in a projection of approximately ¥26 billion.
⚫ Set the published figure (Plan-B) as the must-reach target,
but pursued the higher internal target (Plan-A).

Measures during the year

Results⚫ Integrated the domestic and international consulting operations and the ⚫ Net sales and operating profit posted
R&D Center. Promoted mobilization of human resources that can flexibly
new record highs although orders
respond to market changes and worked to maintain and improve thedeclined year on year.
operating rate.
⚫ Results significantly exceeded Plan⚫ Actively adopted and deployed work-from-home system and improved
B. Orders and operating profit
productivity by utilizing digital technology while implementing work-styleachieved Plan-A targets although net
reforms.
sales and profit fell short.
⚫ Increased liquidity at hand amid a highly uncertain business environment.

3

Results for FYE June 30, 2021 (IFRS)Revenue and operating profit posted new record highs although orders declined year on year.
(Millions of yen)

FYE 20/6
Results

FYE 21/6
Results

YoY Change
Amountvs. Plan%

Initial Plan

Amount%Orders144,871

133,304▲11,567

92.0%

104,900

28,404127.1%

Revenue

108,441

117,8599,418

108.7%

102,600

15,259114.9%

Gross profit

33,23837,735

4,497

113.5%

31,4006,335

120.2%

Operating profit

5,245

7,128

1,882

135.9%

3,000

4,128

237.6%

Profit before tax

5,029

7,176

2,147

142.7%

2,900

4,276

247.5%

Profit attributable to owners of parent

3,099

4,531

1,432

146.2%

1,200

3,331

377.7%* The Company has adopted the International Financial Reporting Standards (IFRS) effective the fiscal year under review. Consolidated financial results of the previous fiscal year are also
indicated in accordance with the IFRS. For reference values based on Japanese GAAP, please see page 52.

Highlights of FYE June 30, 2021
◼ Orders were affected by a reactionary decrease associated with large-scale orders received in the previous fiscal year in International Consulting and PowerEngineering.
◼ Revenue progressed even amid the COVID-19 pandemic and increased in all segments except for Energy.
◼ Profitability significantly improved thanks to productivity-improvement measures and cost reductions, and profits increased at every level.
◼ Recorded temporary expenses of ¥2.4 billion mainly due to an impairment loss associated with a landslide at a hydroelectric power plant in Indonesia and aprovision for loss related to a subsidiary’s lawsuit.
◼ Recorded provision for loss on construction contracts of ¥300 million for the vertical water turbine projects which caused a delay in the announcement of 1Q
financial results.

4

Profit/Loss Analysis (IFRS)
Increase due to higher sales in
Domestic and International
Consulting and Urban andSpatial Development

Improvement in cost of
sales ratio by 1.3 pt due tolower business trip
expenses, etc.

Impairment loss associated with a plan for hydroelectric
power generation in Indonesia (¥1.7 billion), provision forloss related to a subsidiary’s lawsuit (¥280 million), etc.
■ Profit factor ■ Loss factor

FYE 20/6
ProfitIncreased
sales

Improved costof sales ratio

SG&A

Share of profit(loss) ofinvestments
accounted forusing equity
methodOther income

Other
expensesFinancialincomeFinancial
costs

Taxes

FYE 21/6
Profit5Cash Flows / Balance Sheet (IFRS)Cash Flows (Millions of yen)

Balance Sheet (Millions of yen)

⚫ Cash flow from operating activities was sound due tofavorable operating performance.
⚫ Net cash used in financing activities was mainly due
20,000 to the repayments of short-term borrowings.

⚫ Liabilities increased due to securing liquidity at hand as ameasure against COVID-19.
⚫ Equity increased due to a decrease in treasury shares.

12,073 9,323
10,000

4,529

4,365

Total assets
147,4080▲ 2,764▲ 10,000▲ 7,129

FYE 20/6(Cash and cash
equivalents 15,472)▲ 2,750

Liabilities
81,687

Equity65,721(Equity Ratio 43.6%)

Total assets
156,137(Cash and cash
equivalents
17,838)

Liabilities
83,843Equity72,294(Equity Ratio 45.3%)▲ 7,928

FYE 21/6

Balance of Cash and cash equivalents

CF from operating activities

CF from investing activities

CF from financing activities

FYE 20/6

FYE 21/6

Simplified CF(operating + investing)6

Results by Business Segment: Domestic Consulting Business(Millions of yen)

Market environment

80,000Measures◼ Number of orders expanded asmeasures to increase national
resilience continued.
◼ Work styles changed despite thelimited impact of COVID-19.

◼ In Consulting, shifted overseas staff todomestic posts in an effort to promotemobilization of human resources(contributed to orders).
◼ Promoted online usage in operations which
contributed to both productivity
improvement and work-style reforms.

◼ Orders, revenue and operating profit all posted new record highs.
◼ Promoting mobilization of human resources, including headcount increase andcollaboration with overseas, contributed to higher orders.
◼ Operating profit increased significantly due to enhanced productivity backed by higher
sales and increased operating efficiency and improvement in the order environment.

Orders
Revenue
Cost of sales
Gross profit
SG&A, etc.
Operating profit

59,314
49,95862,04755,345FYE 20/6

FYE 21/6

9.9%

11.1%

40,00020,0000Operating
10,000profit 8,000

FYE 21/6 results(Millions of yen)Orders60,000
Revenue

FYE 20/6 Results

10.0%

6,000
4,000
Operating
2,000
profit margin0

YoY Change
Amount%FYE 21/6 Results

15.0%

5.0%

4,944

6,128

FYE 20/6

FYE 21/6

0.0%

Initial Plan

vs. PlanAmount%59,314(Sales ratio)

62,047(Sales ratio)

2,733

104.6%

49,80012,247124.6%

49,958100.0%

55,345100.0%

5,386

110.8%

41,70013,645132.7%

35,62971.3%

38,225

69.1%

2,595

107.3%

25,20013,025151.7%

14,32828.7%

17,119

30.9%

2,791

119.5%

16,500619

103.8%

9,384

18.8%

10,991

19.9%

1,607

117.1%

14,400

76.3%

4,944

9.9%

6,128

11.1%

1,183

123.9%

2,100▲3,4094,028

291.8%

7

Results by Business Segment: International Consulting Business(Millions of yen)

MeasuresMarket environment◼

◼

◼

Strict international travel restrictions
were adopted early in the term
although they were graduallyrelaxed from the 2Q.
The COVID-19 situation worsened
at times in South Asia andSoutheast Asia.

◼

◼

50,000Orders
Revenue
40,000Transferring staff of International Consulting todomestic operation contributed to sales.
Progress was made in the approval fordomestically conducting international
operation.
Promoted use of online functions locally.

◼
◼

10,0000

FYE 20/6

Orders
Revenue
Cost of sales
Gross profit
SG&A, etc.
Operating profit

7.5%

Operating500
profit margin
0

8.0%
6.0%

2.3%

1,000

YoY Change
Amount%FYE 21/6 Results

FYE 21/6

2,000Operatingprofit 1,500

Orders showed a reactionary decrease from the previous fiscal year when large-scale orders werereceived. There were delays in orders due mainly to the impact of COVID-19.
Revenue increased due to the active effort toward working locally under the COVID-19 pandemic
and the favorable domestic operation.
Operating profit increased significantly, boosted by restraining of travel and other expenses andimproving the soundness of the subsidiary.
FYE 20/6 Results

24,753

22,63520,000(Millions of yen)

(Millions of yen)

35,721

30,000FYE 21/6 results◼

47,617513
FYE 20/6

Initial Plan

4.0%

1,853

2.0%
0.0%

FYE 21/6

vs. PlanAmount%47,617(Sales ratio)

35,721(Sales ratio)▲11,895

75.0%

23,90011,821149.5%

22,635100.0%

24,753100.0%

2,113

109.3%

22,1002,653

112.0%

16,601

73.3%

17,825

72.0%

1,223

107.4%

15,6002,225114.3%

6,038

26.7%

6,928

28.0%

890

114.7%

6,500

428

106.6%

5,524

24.4%

5,075

20.5%

▲449

91.9%

6,200

▲1,125

81.9%

513

2.3%

1,853

7.5%

1,340

361.1%

300

1,553

617.8%

8

Results by Business Segment: Power Engineering Business(Millions of yen)

MeasuresMarket environment
◼
◼

◼
◼

Price competition continued tointensify.
There were construction restrictions
due mainly to the Olympic Games.

Orders
Revenue

Thoroughly managed costs.
Reinforced the production structure of the
manufacturing division.

FYE 20/6

FYE 21/6 results◼

Orders showed a reactionary decline from the previous fiscal year when large-scale orders werereceived for power facility construction although orders for dam monitoring and control systems(Millionsof yen)were strong.
◼ Revenue was comparable to the level of the previous fiscal year due mainly to the extension of
construction periods for substation work and substation control manufacturing.
◼ Operating profit decreased due to a rise in the cost of sales ratio related to hydraulic power
generation and the posting of a provision for loss on construction contracts.
(Millions of yen)

19,82915,382FYE 20/6 Results

1,050

FYE 21/6
7.0%

6.5%

Operating
1,000
profit
950

6.5%

900
Operating850
profit margin
800
750

6.0%

5.4%

995

5.5%
5.0%

858

4.5%

FYE 20/6

YoY Change
Amount%FYE 21/6 Results

15,831
13,880Initial PlanFYE 21/6

vs. PlanAmount%Orders19,829(Sales ratio)

13,880(Sales ratio)▲5,94970.0%

13,000880

106.8%

Revenue

15,382100.0%

15,831100.0%

448

102.9%

18,000▲2,16988.0%

Cost of sales

11,39974.1%

11,82674.7%

427

103.7%

11,700126

101.1%

Gross profit

3,983

25.9%

4,004

25.3%

21

100.5%

6,300▲2,296

63.6%

SG&A, etc.

2,987

19.4%

3,146

19.9%

158

105.3%

4,500▲1,354

69.9%

995

6.5%

858

5.4%

▲137

86.2%

1,800

▲942

47.7%

Operating profit

9Results by Business Segment: Urban & Spatial Development Business(Millions of yen)

Market environment◼
◼
◼
◼

21,457

Measures

Lockdown continued in the UK withrestrictions eased from the 4Q.
Orders from private firms were downsized
to small lots.
Needs expanded in the healthcare sector.
Impact of Brexit was limited.

FYE 21/6 results

◼
◼
◼
◼

Promoted teleworking.
Shifted the ratio of orders from private
to public.
Strengthened the healthcare sector
team.
Reinforced the domestic urban & spatial
development division.

yen) were attributable mainly to orders acquired for public projects and additional◼ (Millions
Higheroforders
orders from Westminster Palace in the 4Q.
◼ Revenue increased due to the promotion of teleworking at BDP, foreign exchange impacts,
and the transfer (approx. ¥2 billion) of the urban development division from Domestic
Consulting under the NK organizational reform.
◼ Operating profit increased due to constrained costs at BDP and the transferred portion ofNK’s urban development division.
(Millions of yen)Orders
Revenue
Cost of sales
Gross profit
SG&A, etc.
Operating profit

FYE 20/6 Results
17,874
18,142
9,905
8,237
6,478
1,759

(Sales ratio)
100.0%
54.6%
45.4%
35.7%
9.7%

FYE 21/6 Results
21,457
20,274
11,290
8,983
6,716
2,266

(Sales ratio)
100.0%
55.7%
44.3%
33.1%
11.2%

*Actual rate for the FYE June 2021: £1 = ¥144.38 (planned rate for the FYE June 2021: £1 = ¥136.23)

Orders
Revenue

17,874

18,142FYE 20/6

FYE 21/6
11.2%

2,500
Operatingprofit 2,000

11.5%
11.0%
10.5%
10.0%
9.5%
9.0%
8.5%

9.7%

1,500
1,000
Operating500
profit margin
0

YoY Change
Amount%3,582
120.0%
2,131
111.7%
1,385
114.0%
745
109.1%
238
103.7%
507
128.8%

20,274

1,759

2,266

FYE 20/6

FYE 21/6

Initial Plan
16,00018,30010,600
7,700
7,000
700

vs. PlanAmount
5,457
1,974
690
1,283
▲284
1,566

%
134.1%
110.8%
106.5%
116.7%
96.0%
323.8%

10

Results by Business Segment: Energy Business
Market environment
◼
◼

1,070

Measures◼

Needs for energy management
expanded worldwide.
Lockdown measures continued inEurope.

◼

Orders
Revenue

Continued to pursue energy managementbusiness formation and deployment in
Asia.
Prepared to address the Japanesemarket.

FYE 21/6 results

790

156

111

FYE 20/6

FYE 21/60◼

Orders decreased year on year due to the delay in orders for the battery storage-related project(Millions of yen)scheduled in Europe.
◼ Net sales decreased from the previous fiscal year when EPC was completed for the battery storage
business in the UK.
◼ Operating profit decreased significantly due to the posting of an impairment loss associated withhydraulic power generation in Indonesia based on IFRS although costs were reduced due to delays
in project development.
(Millions of yen)
*Initially announced
plan(Millionsof yen)FYE 20/6 Results

FYE 21/6 Results▲ 355-1,000Operatingprofit -2,000▲ 1,919-3,000FYE 20/6

YoY Change
Amount%71.1%▲45

Initial Plan

vs. PlanAmount▲2,088%Orders156(Sales ratio)

111(Sales ratio)

Revenue

1,070

100.0%

790

100.0%

▲279

73.9%

1,100

▲310

71.9%

Cost of sales

868

81.2%

556

70.5%

▲311

64.1%

700

▲144

79.6%

Gross profit

201

18.8%

233

29.5%

31

115.8%

400

▲167

58.4%

SG&A, etc.

556

52.0%

2,152

272.3%

1,595

386.6%

100

2,052

2152.7%▲355-▲1,919-▲1,563-300▲2,219-Operating profit

2,200

FYE 21/6

5.1%

11

FYE June 2022 Forecast
Revenue and operating profit are expected to set new record highs year on year. Segments will be reorganizedfrom five to three segments from FYE June 2022.
(Millions of yen)OrdersConsulting Business
Urban & Spatial Development Business
Energy Business
Revenue
Consulting Business
Urban & Spatial Development Business
Energy Business
Real Estate Leasing and Other
Operating profit
Consulting Business
Urban & Spatial Development Business
Energy Business
Real Estate Leasing and Other
Profit attributable to owners of parent

FYE 2021/6 Results

FYE 2022/6 PlanYoY Change
Amount%133,304
97,769130,000
95,000▲3,304▲2,769

97.5%
97.2%

21,45720,000▲1,45793.2%

13,991

15,0001,008

107.2%

117,859

131,000

13,140111.1%

80,09889,0008,901

111.1%

20,27421,000725

103.6%

16,621

20,0003,378

120.3%

865

1,000

134

115.6%

7,128

7,700

571

108.0%

7,981

7,700

▲281

96.5%

2,266

1,500

▲766

66.2%

▲1,061

1,700

2,761

-

▲2,058▲3,200▲1,141

-

4,531

4,700

169

103.7%*Figures in three segments for FYE 21/6 are simple aggregations before intercompany eliminations.
*Please see page 53 for the method of segmentation into three segments and page 54 for the reference values for five segments.

12

Review of Previous Long-termManagement Strategy and Previous
Medium-term Management Plan

Review of Previous Long-term Management Strategy andPrevious Medium-term Management Plan
Basic policy: Continue to evolve into a global consulting and engineering firm.
◼ Business expanded steadily and net sales grew roughly 1.5 times in 6 years although the initial plan was not achieved.

◼ Expanded the new business domains in Urban & Spatial Development and Energy (made BDP a wholly owned
subsidiary in FYE 16/6 and launched the energy business in FYE 19/6).
Net sales

Operating profit(100s of million yen)(100s of million yen)

1.5 times
1,013
818

1,060

1,085

1,122

FYE 21/6(Japanese GAAP)
Initial Target
Results

1,177

Net sales

818

1,400

1,177

Operatingprofit

45

140

77

Operatingprofit margin

5.5%

10.0%

6.6%

ROE

8.5%

10.0%

5.7%

818
77
65

45

FYE 15/6
Results

47

54

51

45

Previous Long-term Management Strategy
NK-AIM

NK-Innovation

FYE 15/6 FYE 16/6 FYE 17/6 FYE 18/6 FYE 19/6 FYE 20/6 FYE 21/6
(Results are all based on Japanese GAAP)

14

Review of Previous Medium-term Management Plan NK-Innovation 2021 (July2018 to June 2021)
OutcomeIssuesUrban & Spatial Development Business expanded. In Consulting, business creation and overseas expansion
progressed smoothly.
Need to strengthen the production structure in the railway sector. Delay in project creation in the Energy Business.

Business strategy
Enhancement of operating system for Railways Business
Promote alliance with local companies; strengthen abilities of regional engineers; utilize
IT tools to improve project management ability

Overseas expansion of Urban & Spatial Development Business
Capture urban development projects in Asia in collaboration between NK and BDP;
capture smart city development projects combining civil engineering and architecture

Establishment of Energy Business
Accumulate the know-how for energy management in Europe; enter concession for
distributed power sources and hydraulic power generation in Japan and Asia.

Creation of businesses and overseas expansion of Consulting
BusinessStrengthen the domestic management base and support for global strategies; create
new businesses, e.g., disaster prevention/mitigation and management

Product development and overseas expansion of PowerEngineering Business
Develop products with specs of international standards; construct an international
supply chain for hydraulic products; strengthen price competitiveness in conventional
businesses

Key results

Assessment• Received multiple large-scale orders mainly in South Asia and built
track records.
• On the other hand, manpower shortage became a normal state andreinforcement of the production structure will continue to be a priority
issue.
• Promoted expansion outside of the UK by making Quadrangle a groupcompany.
• Joint efforts between NK and BDP for Asian market cultivation are still
underway.
• Project development was delayed despite establishing NKEE in the
Netherlands.
• Domestic power generation and EM business were steady.
• Entered the management domain including the comprehensive
management of local governments.
• Fully entered the business of satellite disaster-prevention information
service.
• Made smooth progress in the development of products with specs ofinternational standards.
• Profitability weakened mainly due to the delay in the construction of aninternational supply chain and the intensified competition.

15

Review of Previous Medium-term Management Plan NK-Innovation 2021 (July2018 to June 2021)
OutcomeEstablished a marketing system aimed at providing one-stop service to customers. Technology development
progressed smoothly through integrating themes.

IssuesAlthough group governance was promoted, retrospective revision to financial results occurred. Reinforcement of group
governance will continue to be an issue in the new medium-term management plan.

Functional strategy

Establishment of one-stop marketing system
Provide solutions utilizing products and services across all segments; createbusinesses in smart society

Investing in technology and human resources
Promote technology policies for expanding existing businesses and pushing
new businesses; promote work style reforms; reinforce recruitment activities

Reinforcement of group governance
Develop a group governance system; introduce global accounting

Key results

Assessment• Established a sales headquarters in charge of sales
across segments.
• Supported overseas expansion of technologies that exist
in Japan. Examined and promoted M&As and business
investments.
• Made steady progress by integrating themes.
• Established a leading-edge R&D Center.
• Established Business Strategy Headquarters andlaunched the DX business.
• Conducted recruitment activities using online functions
under the COVID-19 pandemic.
• Put in place a system for promoting teleworking.

• Established the NK Group Business Management
Guidelines. Implemented the PDCA cycle.
• Adopted IFRS and began disclosure.
16Message from the New President

Hiroaki Shinya
Date of birth:

May 28, 1960 (age 61)

Hometown:

Sendai City, Kagoshima(currently Satsumasendai City)

Academic
background:

Earth Science Major, Graduate School of Science,
Tohoku University

External
activities:• May 2012 to June 2014
Vice President of The Japan Landslide Society• June 2019 to May 31, 2020
Director of The Institution of Professional
Engineers, Japan

Fields ofexpertise:

Research, analysis and design related to slope
disasters, e.g., landslide, collapse and falling rocks(engaging in research and analysis on reservoir
surfaces, such as landslides associated with dam
flooding, and engineering for countermeasure work)18

Brief Personal History
April 1985

Joined the Company

July 2010

General Manager of Geohazard Management Division, Domestic
Consulting Operations

April 2011

General Manager of Watershed Management & Disaster Prevention
Division, Domestic Consulting Operations

July 2013

General Manager of Sendai Branch Office, Domestic Consulting
Operations

July 2015

Executive Officer

February 2016

Deputy Director General of Domestic Consulting Operations, General
Manager of Business Planning Office and General Manager of Tokyo
Branch Office

July 2016

Acting Director General of Domestic Consulting Operations, General
Manager of Business Planning Office and General Manager of Tokyo
Branch Office

July 2017

Director General of Domestic Consulting Operations

September 2017

Director and Executive Officer

July 2018

Director and Managing Executive Officer

July 2020

Director and Senior Managing Executive Officer, Director General ofConsulting Operations Headquarters in charge of Urban and Spatial
Development Business

July 2021

Representative Director and President• Worked at Fukuoka Branch Office and Hiroshima Branch Office• Responsible for research and analysis concerning slope disasters,
mainly landslides, and design for countermeasure work methods• 2012: Handled operation for preventing landslides at Yanba Dam

Spent 2 or 3 days every
week at the site in themountains for operationand meetings

Ensuring
thorough onsite
studies• Made progress from restoration to revitalization following the Great
East Japan Earthquake Received orders for construction
management operation associated with community revitalization in
Otsuchi City, Iwate and others
In 2014, expanded the sales of Sendai Branch Office by 2.5 times
the level prior to the earthquake• Integration of domestic and international consulting operations andR&D Center. Led the organization as Director General

19Long-term Management Strategy andMedium-term Management PlanRecognition of Market Environment
Growing needs for creating a sustainable society ▶ Responding to the need by focusing on SDGs/ESG perspectives
and leveraging leading-edge technologies
Increasing complications in social issues ▶ Need for NK to change in order to demonstrate comprehensive strengths
and drive optimal solutions

Shifts in global
economic power

Global trends

Needs to create a sustainable society

Advance in rapid
urbanization

Building social infrastructure toprotect safe and secure living

Technology
advancement

Demographic
changes

Climate change
and resource
scarcity

Development of social infrastructure
where all people can freely interact
and play an active role
Creation of attractive cities where adiversity of people and industries
are concentrated
Conservation of the global
environment by achieving adecarbonized society
21Mission and Materiality of the Nippon Koei Group

Reviewed Mission, Vision and Values and specified the materiality in order to actively
contribute to SDGs and increase corporate value

Nippon Koei Group’s Materiality

MissionVisionMake the world abetter place

Providing uniquevalue as a company◼ Materiality related to business activities
1. Development of infrastructure to protect safe living
2. Development of infrastructure where all people canfreely interact and play an active role
3. Creation of attractive cities where a diversity of people
and industries are concentrated
4. Conservation of the global environment by achieving adecarbonized society◼ Materiality related to management foundations

Values

Tackle your problems withsincerity and the roadahead shall be clear

5. Strengthening corporate governance
6. A rewarding work environment where human rights
are respected
7. Development of human resources and technology

22Long-term Management Strategy: Basic Scheme
NKG Global Strategy 2030 —Working Together Toward A Future Without Boundaries
Basic Policy
FYE June 2030
Numerical Targets(IFRS)

Providing new value and realizing a sustainable society through the exploration of wisdom and theinnovation and integration of technology

Revenue

Operating profit

250 billion yen

25 billion yen

Working together initiative 1

Reorganizing businesssegments; developing one-stop
services◼ New development in threebusiness domains

Operating profit
margin

10%

ROE

15%

Working together initiative 2

Working together initiative 3

Promoting autonomy andcollaboration

Manifesting the NKG brand and
NKG quality◼ Realization of one-stop services
and agile business management◼ Autonomy and collaboration; faster
decision-making; transitioning to aholding company for coexistence ofdiversity◼ Full-scale expansion into business
management◼ Implementation of matrix management
across businesses and regions◼ Developing world-class humanresources in conjunction with ourtechnology strategy◼ Realizing digital transformation
(DX)

23

2030 Vision
By working together with various partners within and out of the Company, we will pursue wisdom and integrate wisdomwith technological innovation to provide new values in an aim to become a corporate group that contributes to realizing
a society in which people can feel enriched.
New Medium-termManagement Plan
Transformation(100s of million yen)00

00

FYE 14/6 to FYE 20/6
(Japanese GAAP)■ Urban & Spatial Development■ Energy■ Power Engineering■ International Consulting■ Domestic Consulting— Operating profit margin

FYE 21/6 to FYE 30/6
(IFRS)■ Urban & Spatial Development■ Energy■ Consulting— Operating profit margin

1st STEP
Building Resilience2024
FYE 21/6 Results(IFRS)

Revenue:00

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

00

00

Breakthrough117.8 billion yen
Operating profit margin:

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

Expansion

3rd STEP

2nd STEP

Build the foundation
for becoming a 100year company

Accelerate expansion
into new businesses
and new markets

FYE 30/6 Target(IFRS)

Revenue:
250 billion yen
Operating profit margin:

10%
ROE: 15%

1,980

1,550

6%
ROE: 6.7%

818

9%
7%

00

5.5%

0.0%

0

15.6

16.6

17.6

18.6

19.6

20.6

Previous Long-term Management Strategy

21.6

22.6

23.6

24.6

27.6

30.6

NKG Global Strategy 2030 —Working Together Toward A Future Without Boundaries
24

Source of Sustainable Profit Growth1.

Promoting DX to provide high-value-added to customers andimprove productivity of employees
Adopt sophisticated technologies and DX in existing businesses (offensive)
Apply DX to drive work-style reforms of employees and increase productivity (defensive)

2.

Expansion of new business models
Consulting: Expand the subscription-type business and develop the business management field
Urban & Spatial Development: Develop/Redevelop urban areas
Energy: Expand asset holding-type business and business accommodating power system reforms

3.

Business expansion by promoting autonomy of overseas
subsidiaries and group companies
Enhance profitability by increasing the ratio of sales of overseas subsidiaries and local affiliates andrealize “Act Locally” based on matrix management

4.

Increasing profitability with the NKG brand and NKG quality
Secure profits by reducing errors, e.g., rework; ensure risk management by strengthening
governance; increase mobility of human resources (hybrid human resources: development of
human resources that can take on active roles in both domestic and international markets)
25Points of the Medium-term Management Plan (July 2021 to June 2024)
Key Point

Enhancing resilience of the Nippon Koei Group (Building Resilience 2024)

Basic Policy

Set firm ground for working together in creating a sustainable future throughimplementing three resilience policies.
Resilience policy 1: Enhance the resilience ofvertical threads

Boosting business through three
independent domains

Businessaxis

Resilience policy 2: Enhance the resilienceof horizontal threads
Group management structure that realizes matrix
management across businesses and regions

Resilience policy 3: Enhance the quality ofvertical and horizontal threads

Regional axis

Embodying the NKG brand and NKG quality

FYE June 2024
Numerical Targets(IFRS)

Revenue

Operating profit

Operating profit margin

ROE

155 billion yen

11.5 billion yen

7%

9%
26

Resilience policy 1: Promote businessstrategies of three domains

Consulting Business⚫ Evolve into an organization that can compete in the world by integrating the domestic and international consulting operations and R&D
Center.
⚫ Conduct defensive and offensive business management to provide excellent technology and quality for global markets.

Direction ofbusiness◼ FY2021 budget for public works, including the five-year initiatives for building national resilience, is estimated to be approximately ¥8.5 trillion.
◼ Local governments are increasing budgets for promoting regional digitalization societies in addition to disaster-prevention & mitigation
measures.
◼ The Japanese government announced its Infrastructure System Overseas Promotion Strategy 2025 in an aim to receive orders forinfrastructure projects worth ¥34 trillion in 2025.

Marketenvironment

Structure

Personnel exchange, sharing of leading-edge technologies ▶
Implementation in developing countries ▶ Reimport

Sharing customer needs; technology development in linewith the needs

R&D Center

Overseas

Domestic

Infrastructureengineering

OverseasLand
infrastructure
Domestic

Overseas

Railways

Domestic

Overseas

Transportation

Domestic

Overseas

Domestic

Watershed
management

Numerical Targets (100s of million yen)
• In FYE 23/6, decrease in sales due to segment transfers of consolidated
subsidiaries• Revenue to grow ¥20 billion or more in three years◼ Revenue
890
800

880

90

■ Operating profit— Operating profit margin
10.0%

80
780

70

8.7%

79

77

9.2%

9.3%

82

72

60
FYE 21/6
Results

FYE 22/6 FYE 23/6 FYE 24/6
Medium-term Medium-termPlanmanagement management
plan
plan

FYE 21/6 FYE 22/6 FYE 23/6 FYE 24/6
Results
Plan Medium-term Medium-term
management management
plan
plan

27

Resilience policy 1: Promote businessstrategies of three domains

Strategies in Consulting BusinessMeasures for enhancing
resilience

Advancement andglobal deployment ofdisaster-prevention &mitigation technologies

Expansion of transportrelated businesses

Promoting services that
contribute todecarbonization
Full-scale expansion
into the business
management field

Measures/Materiality

Specific examples⚫ Develop/upgrade infrastructure to protect safe living.

M1• Dam revitalization; river basin management,enhancing earthquake resistance of infrastructure;
securing/improving quality of agriculture/agricultural
infrastructure

M1• Remote sensing, satellite data, AI predictions andanalysis, etc.

⚫ Develop transportation infrastructure; reinforce development inregions around transportation hubs.

M2• Development of mass transport railways between cities,
Mass Rapid Transit (MRT), high-spec arterial roads,
airports; development of areas near railroad stations
and coastal areas⚫ Promote smart city, next-generation mobility.

M2
M3• Automatic driving using traffic big data, AI analyticalprograms, etc.; MaaS; modal connect, etc.

M4

• Wind power/micro hydropower, hydrogen, waste power
generation

M1
to M4

• Provision of comprehensive management, PPP, AI
check & diagnosis; development of urban disasterprevention & management technology• Participation in concession▶P. 29⚫ Utilize data that contributes to keeping people secure.

▶P. 30⚫ Reinforce services for global warming countermeasures andenvironmental management and conservation measures.
⚫ Attain management technology;
expand concession business.

▶P. 31▼Materiality related to business activities
1: Develop infrastructure where people can live safely 2: Develop social infrastructure where all people can freely interact and play an active role 3: Create attractive cities
where a diversity of people and industries are concentrated 4: Conserve the global environment by achieving a decarbonized society

28

[Specific Project Example] Data Utilization and Provisionof Solutions

Resilience policy 1: Promotebusiness strategies of three domains

Development of a platform for providing various types of disaster-prevention information
and analytical & forecast data (start in the autumn of 2021)▶ Organize and gather multiple pieces of separately available information on a map for one-stop provision.
▶ Integrate analytical technologies of Nippon Koei to promptly provide disaster-prevention information.
Local governments, private firms

Customers

Consultation on technical matters, contract procedureStandardfunctions

RRI model*1
Precipitation,
rivers, terrains, etc.

Flow rate◼ Weather and hydrological information*2◼ Flooding and landslide disaster
information

Water level

Inundation
height◼ Living infrastructure & geographicalinformation◼ Various types of hazard information

Customized based on the status and issues of the region and customer requests

Additional
functions

Flooding sensor

People flow data

AR/VR

Satellite
information

AI predictions

Undergroundarcade analysis◼ Flooding information based on weather satellites, sensors, SNS◼ AI-based information on water levels, flow rates, flooding
predictions◼ Flooding analysis of underground space and 3D visualized
information◼ Evacuation and private support information based on people
flow & traffic information*1 Precipitation and flooding model developed by Public Works Research Institute*2 Acquiring data distributed by Japan Meteorological Agency and the Ministry of Land, Infrastructure, Transport and Tourism*3 Portal site for a hazard map using GSI (Geospatial Information Authority of Japan) Tiles. Uses 3D building images in a Mapbox tile set and Zenrin maps

Screen image*3(Real-time flooding analysis results and flooding
sensor information)

29

[Specific Project Example] Support for Smart City
Deployment Overseas

Resilience policy 1: Promote businessstrategies of three domains

Orders received for five projects in the Ministry of Land, Infrastructure, Transport and Tourism’s
initiative: Smart City Supported by Japan ASEAN Mutual Partnership (Smart JAMP*)▶Use of Nippon Koei’s technologies and know-how to realize smart cities in ASEAN countries
Project orders received by NK in this initiative
CountryCity

Description-

Introduction of overloaded vehicle
management system at the Ministryof Transport

VietnamDanangResearch for the development ofdigital maps for urban planning andmanagement

Laos

Vientiane

Formulation of master plan

Cambodia

Batdambang

Formulation of master plan

Malaysia

Cambodia

Siem Reap

Leading-edge technology for thetransportation sector, etc.

Siem Reap, Cambodia
Providing support to realize a smart city in Siem Reap
through JICA’s research for improving the urban
environment and the Smart JAMP scheme.

* An initiative of the Japanese government to help bring about smart cities in 26 target cities in 10 ASEAN countries by providing packaged assistance including the use oftechnologies and know-how of Japanese firms, project formation research and verification projects, promotion for financial support and local cooperation structure.

30

[Specific Project Example] Osaka City Industrial Water
Works Concession

Resilience policy 1: Promote businessstrategies of three domains

Participation in the management of a water system for industrial use as a business
operator for the establishment of know-how for managing aging water pipes▶ Participating in the country’s first full-package concession project in the water infrastructure sector as a business operator▶ Introduction of advanced status monitoring and preservation technologies and reduction of operating costs in the
management of aging water pipes

Osaka City
<Facility owner>
Consideration for the rightto operate

Customers(User
companies)
Approximately
300 companies

Water supply forindustrial use

Usage charge

Ministry of Economy,
Trade and Industry
Businesssuspension notice

Setting the right tooperateSPC (Special Purpose Company)<Facility operator>
Miotsukushi Industrial Water
Concession Co., Ltd.
❶ Supply of water and operation ofwater works for industrial use❷ Management and operation of water
purification plants and distribution
stations❸ Management and operation of pipes❹ Customer service❺ Response to accidents and disaster

Businessapproval

Investment
Staff
dispatch,etc.

• MAEDACORPORATION• Nippon Koei
• NIPPON
TELEGRAPH AND
TELEPHONE WEST
• Toshiba
Infrastructure
Systems & Solutions(Total of four firms)

Examples of technologies scheduled for
implementation◼ Wide-area investigation of undergroundleakage spots using satellite images◼ Full-time monitoring of key target
routes using sensors with an IoTfunction
Base station
for cell phones

NB-IoT
Cloud

SPC
head
office(data server)

LoggerLoggerLoggerAutomatic transfer/remote supervision of results using
NB-IoT

31

Resilience policy 1: Promote businessstrategies of three domains

Urban & Spatial Development BusinessDirection ofbusiness⚫ Comprehensively produce urban and regional revitalization projects in Japan and abroad.
⚫ Cultivate new markets based on group-wide unified management within the segment (urban development, smart
city, etc.)

Marketenvironment◼ In Japan, markets for renovation, utilization and revitalization of a great number of buildings owned by public andprivate entities and smart city and area management markets have been expanding.
◼ In the international markets, sectors associated with the development of transportation-related facilities andperipheral developments are growing due to the concentration of the population in cities.

Structure

Numerical Targets (100s of million yen)NK Urban & Spatial Development
Business

Group-wide collaboration in domestic urban
revitalization; entry into the urban management
sectorCommunity
building

Architecture

Tamano Consultants(From July 2022)
Kisho Kurokawa Architect &Associates

Expansion into North America
Capturing the housing & stadium
sectors
Architecture

Architecture

Quadrangle
Pattern⚫ Comprehensively producing urban and regional revitalization projects⚫ Expansion in Asia by integrating civil engineering and architecture
Civilengineering• In FYE 23/6, increase in revenue due to segment transfers ofconsolidated subsidiaries• Limited COVID-19 impact is expected at BDP in FYE 22/6

BDP

NK Consulting Business

600◼ Revenue

400
200
0

■ Operating profit — Operating profit margin
380

202

FYE 21/6
Results

400

210

FYE 22/6
Plan

FYE 23/6
FYE 24/6
Medium-term Medium-term
management management
plan
plan

55
45
35
25
15
5
-5

11.2%
7.1%

22
FYE 21/6
Results

15

7.4%

8.0%

28

32

FYE 22/6
FYE 23/6
FYE 24/6
Plan
Medium-term Medium-term
management management
plan
plan

12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%

32

Resilience policy 1: Promote businessstrategies of three domains

Urban & Spatial Development BusinessMeasures for enhancing
resilience

Measures/Materiality

Specific examples

Realization of one-stop
services in urban
development &redevelopment projects⚫ Acquire development & redevelopment projects in Japan andabroad. ▶P. 34

M3• Regional urban redevelopment and new town
revitalization project in collaboration with Tamano
Consultants• Utilization of unused land in regional cities under publicprivate partnership• Expanding development projects for airports, railways,
etc.

Smart city project
formation inconsideration of
decarbonization andsafety & security⚫ Pursue urban & spatial development in consideration of infectious
diseases, climate change and decarbonization.
⚫ Form mobility networks.
⚫ Pursue people-friendly urban & spatial development inconsideration of universal design and accessibility.

M1
M2
M4

• Smart city project formation• Organizational introduction of BIM, Small World• Securing competitiveness by leveraging energy-related
solution technologies• Securing competitiveness with DX technologies

Market expansion by
BDP⚫ Expand BDP’s business in North America.
⚫ Actively acquire projects in the healthcare sector.
⚫ Acquire stadium projects and peripheral development work. ▶P. 35⚫ Promote BDP–NK collaboration in Asia.

M1
M3• Collaboration with Quadrangle• Acquisition of projects in the healthcare sector outside
the UK• Collaboration with Pattern• Expansion of JV projects for development aroundrailways

Full-scale expansion
into the urban
management field⚫ Acquire new urban management projects, such as the growing
PM/CM/FM. ▶P. 36

M3• Participation in large-scale development projects for
new/upgraded buildings of public and private
ownership as PM/CM/FM or PPP operator▼Materiality related to business activities
1: Develop infrastructure where people can live safely 2: Develop social infrastructure where all people can freely interact and play an active role 3: Create attractive cities
where a diversity of people and industries are concentrated 4: Conserve the global environment by achieving a decarbonized society

33

[Specific Project Example] Redevelopment Project inCollaboration with Tamano Consultants

Resilience policy 1: Promote businessstrategies of three domains

Realization of one-stop services in urban development & redevelopment projects inregional cities in Japan Nagakute central land readjustment project (Nagakute City, Aichi): Engaged in consensus formation withlandowner, business plan formation, plotted land construction engineering, construction work management, union
management support, measurements, and rights & compensation research.
 Provided a full set of services from project formation to completion in the urban redevelopment initiative by making
land readjustments around the station.

Nagakute central land readjustment project: Linimo Nagakute Kosenjo
Station plaza

Prior to the project (2010) and today (2020)34

[Specific Project Example] Market expansion
by BDP

Resilience policy 1: Promote businessstrategies of three domains

Made Pattern a group company in July 2021 with the aim of expanding BDP’s businessareas and urban development coverage
BDP

Pattern• Reinforcement of the sports sector by BDP

Brand power in site/
customer networks

Know-how in large-scalestadium design• Expansion into stadium-related developments
by NKG on the whole

Venue for the FIFA World Cup Qatar 2022 (Ahmad bin Ali Stadium)

VIDENA National Sports Complex in Peru
35

[Specific Project Example] Expansion of Urban &Spatial Development Business in Japan

Resilience policy 1: Promote businessstrategies of three domains

Carrying out management of urban facilities with the aim of securing full-scale presencein the urban management field Meiji Kinen Oiso Teien (Oiso-machi, Naka-gun, Kanagawa): Engaged in steps from basic planning to
implementation design, planning for preservation of the villa, basic design for display and management andoperation plan.
 Carried out overall planning from the formation of plans for the refurbishment and management of the park andvilla under public-local partnership and public-private coordination with related entities and local organizations.

Former site of villa of Munemitsu Mutsu, former villa of the Furukawa family,
living room and garden

Former villa of Shigenobu Okuma and former villa of the Furukawa family,
lawn garden

36

Resilience policy 1: Promote businessstrategies of three domains

Energy BusinessDirection ofbusiness⚫ Construct foundations for power generation and energy management businesses, such as battery storage and aggregation, throughinternal and external collaboration.
⚫ Stabilize the manufacturing business through strengthening core products and new product development and strengthen theframework of the consulting/engineering business.

Marketenvironment◼ The renewable energy market has been growing worldwide.
◼ In Japan, the 2050 carbon neutralization goal drives the examination of making renewable energy a core source of power and ofusing hydrogen, reinforcement and improved operation of the power grid network, and expansion of the power trading market.
◼ Aging existing facilities are being systematically upgraded to secure the necessary ones for stable electric power supply.

StructurePowertransformation⚫ Substation facilities(central monitoring &control system)

Power distribution⚫ Hydroelectric power facilities(power generator, dam
management system, water wheel)⚫ Power facilities other thanhydroelectric power generation

Power transmission

Powergeneration

Numerical Targets (100s of million yen)Powerstorage/sales⚫ Power storage facilities⚫ Energy management⚫ VPP⚫ Capacity market

Power Engineering

Energy✓ Strengthening of core products and services and new
product development✓ Manufacturing of energy-related products, EPC,
consulting✓ Business development
and management inEurope• Attain revenue growth of about ¥9 billion in three years• Operating profit to return to the black in FYE 22/6 following theelimination of a transient loss; record investment return in theinternational energy management business in FYE 23/6
◼ Revenue

166

FYE 21/6
Results

200

245

260

FYE 22/6 FYE 23/6 FYE 24/6
Medium-term Medium-termPlanmanagement management
plan
plan

Aiming to provide one-stop solutions from power generation to power
storage and sales■ Operating profit — Operating profit margin70
14.3% 12.7% 15.0%
50
8.5%
10.0%
30
35
33
5.0%
17
10
0.0%
▲ 10▲ 10
-5.0%
▲ 30
-6.4%
-10.0%▲ 50
FYE 21/6 FYE 22/6 FYE 23/6 FYE 24/6
Medium-term Medium-term
Results
Plan
management management
plan
plan

37

Resilience policy 1: Promote businessstrategies of three domains

Energy BusinessMeasures for enhancing
resilience

Formulation offoundations for power
generation and energy
managementbusinesses

Measures/Materiality

Specific examples⚫ Accommodate power generation needs related todecarbonization overseas.

M1
M3
M4

• Energy storage business in Europe; mini grid based on
renewable energy and battery storage• Implementation of verification testing for
aggregation• Participation in hydraulic power concession projects• Implementation of micro grid/mini grid on islands andlimited areas• Use of battery storage systems and entry into demandsupply balancing market and capacity market• Promoting decarbonization and energy-saving inproprietary businesses and provision of services foruse of renewable energy as core source of energy⚫ Contribute to stable supply and greater resilience of power.

M1• Upgrading of aging power stations, substationequipment, dam monitoring and control systems, etc.
and implementation of digital technologies• Disaster prevention & energy-saving power storage
system, regional micro grid power storage system, EMS,
incidental power facility products⚫ Reinforce structures of consulting and engineering.

M1
M4• Integration of energy-saving/power generation/overseas
battery storage business investment & management into
production, construction and mechanical & electricalconsulting⚫ Enter into the renewable energy aggregation business by using
the FIP system. ▶P. 39⚫ Expand the proprietary energy management business. ▶P. 40⚫ Develop an energy system to achieve local production for local
consumption, improvement of disaster-prevention capabilities andrealize new added-value services. ▶P. 41⚫ Stabilize core renewable energy power systems.

Strengthening
production of coreproducts and services
and new productdevelopment
Provision of one-stop
solutions with multifaceted, diverse
technologies▼Materiality related to business activities
1: Develop infrastructure where people can live safely 2: Develop social infrastructure where all people can freely interact and play an active role 3: Create attractive cities
where a diversity of people and industries are concentrated 4: Conserve the global environment by achieving a decarbonized society

38

[Specific Project Example] Expansion ofEnergy Aggregation

Resilience policy 1: Promote businessstrategies of three domains

Business deployment using technologies secured early in Europe as key technologies andestablishment of aggregation and micro grid businesses
 In Japan, selected in the FY2021 renewable energy aggregation initiative organized by the Ministry of Economy, Trade and Industry.
Making use of technologies acquired in Europe.
 Aiming to acquire the aggregator license under the FIP framework to be launched in FY2022.
Aggregation business (renewable energy
aggregation/battery storage DR)

Japan

Power generation business⚫ YUSO technology/know-how
deployment in Japan⚫ Collaboration with external firms/local
government entities⚫ Early acquisition of aggregator license
and business launch⚫ Widening linkage ofdispersed resources⚫ Growing customer needs forrenewable energy andresponding to the trading
marketUse of FIP
Power generation
business/Corporate PPA(supply of 100% renewableenergy)Trading market
NK retailNK power generation

Overseas

Micro grid business(Power generation/PPA/BCP/100%
renewable energy)

Grid

Trading market
RetailBattery storage

Battery storage business for NKEE grid
(Power generation/PPA/BCP/100%
renewable energy)

Demanders

Launch of battery storage businessin the UK and participation in the
trading market by YUSOYUSO aggregation business⚫ Full-scale implementation of battery
storage for grid
⚫ Diversification of business revenue
Grid

Renewable energy aggregation
business(Power generation/PPA/BCP/100%
renewable energy)

Own facilities

Micro grid business
YUSO/solar power
generation
aggregation
business

Virtual power plant business

Battery storage business for thegrid in Europe

Smart city business• Energy• Transportation• Disaster prevention• High-speed
communication• Healthcare, etc.

Grid
Trading market

Virtual power plant business✓ Power generation/
PPA/BCP/100% renewable energy✓ Frequency/demand-supply
balancing✓ Supply capability⚫ Grid battery storage technology/know-how
deployment in Japan⚫ NKEE’s autonomous management by
expanding the battery storage andaggregation businesses

39[Specific Project Example] Small HydroelectricPower Generation Business in Japan

Resilience policy 1: Promote businessstrategies of three domains

Implementation of small hydroelectric power generation system at Sabo Dam and making effective
utilization of unused differences in elevation. Began operation in July 2021.
▶ Implemented a hydroelectric power generation system using the existing embankment (Masudama Sabo Dam) on the Dozan River in
Ohkura Village, Yamagata Prefecture.
▶ With power generated to supply up to 1,200 general households, contributed to the region through the introduction of renewableenergy in line with the regional characteristics.
Nippon Koei Group’s Small Hydroelectric Power
Generation Business in Japan
Operating sites

9 locations

Power generation volume

Total of 3.1 MW

FYE 21/6 Revenue

Approximately ¥460 million
Shirataki PowerPlant
270 kWNEW Ohkura Masudama
Power Plant
490 kW
Takai Power Plant
420 kW

Suidoyama Power
Plant
600 kW

Shinsogi PowerPlant
490 kW

Kotaka HydroelectricPower Plant
30 kW

Ohkura Masudama Hydroelectric Power Plant

Shitoki Dam PowerPlant
470 kW

Terayama Dam
Power Plant
190 kW

Shiobara Dam
Power Plant
195 kW40

[Specific Project Example]
Regional Energy Management System

Resilience policy 1: Promote businessstrategies of three domains

Maintaining balance between economic maximization and stable supply of power in the region
leveraging energy management technologies▶ Undertaking the smart community development initiative at Katsurao Village in Fukushima Prefecture, from advisory todevelopment.
▶ Contributing to: optimal control of renewable energy in line with the demand for power in the village, local production for local
consumption of energy in the region, and reinforcement of the region’s disaster-prevention capability.
Housing

Commercial facilities

SchoolsEV

Battery storage system, exterior of the local EMS equipment

Community Energy
Management System(CEMS)

Factories

Solar power generation

Public facilities

Battery storage

Illustrated image of the EMS control screen

41Organizational Strategy

Resilience policy 2: Group management structure that realizes matrix management
across businesses and regions

Propose optimal solutions with a sense of speed in response to the social issues andneeds of each region◼ Establishment of holding Company◼ Governance structure that realizes matrix management• Aim to establish a holding company around June 2024 inorder to accelerate decision-making.

• Ensure comprehensive management is carried out for each region
in the world and pursue rationalization and efficiency ofmanagement.
Business axis
Consulting
Business

Urban & Spatial
Development
EnergyConsulting

EnergyBusiness

Japan

Regional axis

HoldingCompany

Urban & Spatial
Development
Business

South
east
Asia

South
Asia

Matrix management
Two axes: vertical business axis
and horizontal regional axis

SubSaharanAfricaEuropeU.S.

42

Sales Strategy

Resilience policy 2: Group management structure that realizes matrix management
across businesses and regions“Think Globally, Act Locally” to accommodate the needs of regions with world-classtechnologies
Support for autonomous management of the region

Realization of one-stop services• Promote sales of technologies (services and products) owned by the NKGroup in Japan and abroad.
• Form cross-segment businesses (civil engineering plus architecture,architecture plus energy, etc.)• Expand sites and reinforce production structures in Japan andabroad based on the regional strategy.
• Develop human resources to manage overseas sites.
Europe, Middle East, Central Asia,
North Africa

Major response toregional issues⚫ Accelerate implementation, completionand management of BESS business in
Europe.
⚫ Promote the global large-scale stadiumbusiness by BDP Pattern.

U.S.
⚫ Unearth, create andpromote energy-related
business and disasterprevention DX
business.

Japan⚫ Formulate technological and sales
strategies that anticipate needs.
⚫ Create sales menus to drive synergy
among the three businesses.

Sub-Saharan Africa⚫ Smoothly manage andpromote the Mombasa
Integration Project.
⚫ Form new yen loan projects.

Southeast Asia

South Asia
⚫ Receive orders for large-scale railway projects.
⚫ Prepare and form next-generation business projects.

⚫ Reinforce sales activities, business
management and governancestructure from a One-ASEAN
perspective.

43

Technology Strategy

Resilience policy 3: Manifesting the NKG brand and NKG quality

Create innovative values based on DX to grow into a pioneer company that realizes asustainable society
Today(1) Informationcollection

Onsiteresearch

10 years from now (Digital Twin)(2) Analysis and planning

Reporting(3) Information delivery
Referencematerials

Internet

Meeting/interview/
hearing

Various devices

Hardwaredocument(1) Digital informationcollection platform(2) AI/big data analysis(3) Design engineering

Remote research/real-time as a norm
Making research cost nearly zero

Making engineering technologies assoftwareVolume & quality, rapid rise in speed

Application of virtual space technology andreproduction technology
Advancement of expression technology(6) State and local communities(5) Information provision system(4) Virtual reproduction platform

All persons related to social infrastructure,including the state, regions and people
Homogenization of information density

Automation of information sorting using AI
chatbot, etc. and alarm transmission
Promoting sophistication/promptness ofdelivery capability

Virtual simulation including phenomenon
prediction and factor identification
Promoting sophistication/promptness ofdecision-making

Softwaredocument(4) State and local
communities

44

[Specific Project Example]
Offensive DX, Defensive DX

Resilience policy 3: Manifesting the NKG brand and NKG quality

Providing high added value with offensive DX and promoting productivity enhancement
and operational efficiency improvement with defensive DX[Provision of high added value]
Offensive Street control & maintenance and traffic
safety measures in Singapore using big data
• Automatically collect and analyze data using cameras
equipped in car-share vehicles, and identify the status
of facilities on streets, damage, etc.
Processing & filtering of
relevant data2

• Promote productivity enhancement and operational efficiency
improvement with internal DX.
• Reduce operational burden by roughly 20% using the system.
• Aim for partial automation in creating proposal documents.

3
Integration &clustering andalignment in cloud1
4
Data collection fromvehicles[Productivity enhancement & operating
efficiency improvement]
Defensive
Preparation of proposal document using AI,
development of tools to increase efficiency

Entering
information on
biddingscheduled
projects

AI✓Extracting similar
past projects✓Deciding appropriate
project members

Visualization of analysis
results on GIS platform
45

Human Resource Strategy

Resilience policy 3: Manifesting the NKG brand and NKG quality

Development of human resources for manifesting the NKG brand and NKG quality• Enhance the foundation of human resource capability of the overall NKG by launching NKG Global Academy and building a comprehensive
learning environment.
• Promote transparency of wisdom and develop leaders based on knowledge management, talent management and effective use of diverse data.
• Evolve into an organization that outperforms others in the globally competitive environment byachieving both brand and quality.

Enhancing the
NKG brand and
NKG quality;
realizing thevisionNKG Global Academy
GlobalAcademy⚫ Develop a mechanism in which NKG engineers around theworld exchange and integrate technology information.
⚫ Implement training programs to build up the technology
base, have ethics take root among engineers and nurture asense of unity within the Group.
⚫ Dispatch lecturers to universities and uniformly manage
research & development.
⚫ Develop external human resources to undertake theestablishment of future infrastructure in developing
countries.
Education program
Human resource
database

Knowledge
management

Talentmanagement

Organizational learning46

Human Resource Strategy

Resilience policy 3: Manifesting the NKG brand and NKG quality

Aim to increase sustainability by respecting diversity and promoting “well-being
management” that values the good health and happiness of employees.
Work style
Work (Style) Transformation

Workplace

Work Life
BalanceWork (Place) Transformation

DX
Digital Transformation

Health management & productivity
enhancement⚫ Increasing competitivenessand carrying out the social
mission as a company⚫ Achieving a good work-lifebalance for employees

Well-Being
Driving employees’ physical,
emotional and social well-being

Health and Productivity Management

47

Financial Strategy
Investment Policy

Target indicators
Long-termManagement Strategy

Operatingprofit margin

10%

Medium-termManagement Plan

ROE

Operatingprofit margin

ROE

15%

7%

9%

Strategy
investment

Fund
procurement

SustainablegrowthReinvestment

Securing financial soundness• Set the target equity ratio at 40% even in a periodof concentration in investments to secure financial
soundness.

• Growth investment (including M&A):
Approximately ¥32 billion in three years• Revise and strengthen the standards forscreening investment projects. Establish andreinforce the investment screening system.

Repayment Shareholder Purchase ofof external
treasury
returnfunds
sharesCash flows

Shareholder return• Set the target dividend ratio at 30% to continue
stable dividends and adequate return toshareholders in line with the profit level.
• Pursue purchase/cancellation of treasury sharesas needed in order to achieve an appropriate total
return ratio.
48

Working Together Toward A Future Without Boundaries

Appendix

Results for FYE June 2021 for Each of the Five Business Segments (IFRS)(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 Leasing and Other

Operating profit
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing and OtherYoY Change
FYE 2020/6 Results
144,871
59,31447,617
19,82917,874
156
108,441
49,95822,635
15,382
18,142
1,070
1,251
5,245
4,944
513
995
1,759
▲355
▲2,611FYE 2021/6 Results
133,304
62,04735,721
13,88021,457
111
117,859
55,34524,753
15,831
20,274
790
865
7,128
6,128
1,853
858
2,266
▲1,919▲2,058Amount▲11,567
2,733▲11,895▲5,949
3,582
▲45
9,418
5,386
2,117
448
2,131
▲279
▲386
1,882
1,183
1,340
▲137
507
▲1,563552%
92.0%
104.6%
75.0%
70.0%
120.0%
71.1%
108.7%
110.8%
109.4%
102.9%
111.7%
73.9%
69.1%
135.9%
123.9%
361.1%
86.2%
128.8%
51

[Reference] Results for FYE June 2021 for Each of the Five Business
Segments (Japanese GAAP)(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 Leasing and Other

Operating profit
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing and OtherYoY Change
FYE 2020/6 Results
141,632
56,18447,50819,82917,874
156
112,214
51,33324,50815,747
18,160
1,187
1,276
4,590
5,227
684
1,069
917
▲383
▲2,924FYE 2021/6 Results
132,177
61,28035,364
13,87821,457
110
117,71054,961
24,912
15,897
20,267
789
881
7,715
6,946
1,685
904
997
▲409
▲2,407* Since the Company adopts the International Financial Reporting Standards (IFRS) effective the end of the fiscal year ended June 30,
2021, these are estimated values calculated under Japanese GAAP for reference.

Amount▲9,455
5,095▲12,143▲5,950
3,582
▲46
5,495
3,627
403
150
2,106
▲398
▲394
3,125
1,718
1,001
▲165
79
▲26
516

%
93.3%
109.1%
74.4%
70.0%
120.0%
70.6%
104.9%
107.1%
101.6%
101.0%
111.6%
66.5%
69.1%
168.1%
132.9%
246.3%
84.6%
108.7%
52

Change of Business Segments (From FYE June 2022)
In order to further promote collaboration, change from the previous five business segments tothree business segments.
Up to FYE June 2021 (before the revision)
Segment

Major group companies

Domestic Consulting

Tamano Consultants Co., Ltd.
Nippon Civic Consulting Engineers Co., Ltd.
El Koei Co., Ltd.

International
Consulting

Koei Research & Consulting Inc.
Nippon Koei LAC do Brasil Ltda.
NIPPON KOEI LAC, INC.
NIPPON KOEI INDIA PVT. LTD.
NIPPON KOEI VIETNAM INTERNATIONAL CO., LTD.
PHILKOEI INTERNATIONAL, INC.
PT. INDOKOEI INTERNATIONAL MYANMAR
KOEI INTERNATIONAL LTD.

Urban & Spatial
Development
FYE 21/6
Transfer of NK Urban
Development Dept.

Power Engineering

EnergyBDP HOLDINGS LIMITEDBUILDING DESIGN PARTNERSHIP LIMITEDQUADRANGLE ARCHITECTS LIMITED
Kisho Kurokawa Architect & Associates

From FYE June 2022 (after the revision)
Segment

Consulting

Urban & Spatial
Development

Major group companies

Tamano Consultants Co., Ltd.
Nippon Civic Consulting Engineers Co., Ltd.
EL-Koei Co., Ltd.
Transfer to
Koei Research & Consulting Inc.
Urban & Spatial
Development in
Nippon Koei LAC do Brasil Ltda.
FYE 23/6
NIPPON KOEI LAC, INC.
NIPPON KOEI INDIA PVT. LTD.
NIPPON KOEI VIETNAM INTERNATIONAL CO., LTD.
PHILKOEI INTERNATIONAL, INC.
PT. INDOKOEI INTERNATIONALMYANMAR KOEI INTERNATIONAL LTD.
PT. CIKAENGAN TIRTA ENERGIBDP HOLDINGS LIMITEDBUILDING DESIGN PARTNERSHIP LIMITEDQUADRANGLE ARCHITECTS LIMITED
Kisho Kurokawa Architect & Associates

Koei System Inc.
KOEI Energy Co., Ltd.
NIPPON KOEI ENERGY EUROPE B.V.
PT. CIKAENGAN TIRTA ENERGIIRONMONT HYDRO PTE. LTD

EnergyKoei System Inc.
KOEI Energy Co., Ltd.
NIPPON KOEI ENERGY EUROPE B.V.
IRONMONT HYDRO PTE. LTD
53

[Reference] FYE June 30, 2022 Forecast for Each of the Five Business
Segments (IFRS)(Millions of yen)OrdersDomestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyRevenue
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing and Other

Operating profit
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate Leasing and OtherYoY Change
FYE 2021/6 Results
133,304
62,04735,721
13,88021,457
111
117,859
55,34524,753
15,831
20,274
790
865
7,128
6,128
1,853
858
2,266
▲1,919▲2,058FYE 2022/6 Plan

Amount130,000
62,00033,00015,00020,0000131,000
58,00031,00019,00021,000
1,000
1,000
7,700
5,700
2,000
1,900
1,500
▲200
▲3,200* Since the business segments are reorganized into three segments from FYE June 2022, these are estimated values calculated for theconventional five business segments for reference.

▲3,304▲47▲2,721
1,119▲1,457▲111
13,140
2,654
6,246
3,168
725
209
134
571
▲428
146
1,041
▲766
1,719
▲1,141

%
97.5%
99.9%
92.4%
108.1%
93.2%
111.1%
104.8%
125.2%
120.0%
103.6%
126.5%
115.6%
108.0%
93.0%
107.9%
221.4%
66.2%
54

Medium-term Management Plan Building Resilience 2024 Numerical Targets (IFRS)FYE 2021/6
Results

FYE 2024/6 Plan

Amount%(Millions of yen)Orders133,304

150,000

16,695112.5%

Revenue

117,859

155,000

37,140131.5%

Operating profit

7,128

11,5004,371

161.3%

Operating profit margin

6.0%

7.4%

1.4pt

Profit before tax

7,176

11,0003,823

153.3%

Profit attributable to owners of parent

4,531

7,100

2,569

156.7%

ROE

6.7%

9.0%

2.3 pt55

Medium-term Management Plan Building Resilience 2024 Numerical Targets by Segment (IFRS)(Millions of yen)OrdersFYE 2021/6 Results

FYE 2024/6 Plan

Amount%133,304

150,000

16,695112.5%

Consulting Business

97,76992,000▲5,76994.1%

Urban & Spatial Development Business

21,45739,00017,542181.8%

Energy Business

13,991

19,0005,008

135.8%

117,859

155,000

37,140131.5%

Consulting Business

80,09888,0007,901109.9%

Urban & Spatial Development Business

20,27440,00019,725197.3%

Energy Business

16,621

26,0009,378

156.4%

865

1,000

134

115.6%

7,128

11,5004,371

161.3%

Consulting Business

7,981

8,200

218

102.7%

Urban & Spatial Development Business

2,266

3,200

933

141.2%

Energy Business▲1,061

3,300

4,361

-

Real Estate Leasing and Other▲2,058▲3,200▲1,141-

Revenue

Real Estate Leasing and Other
Operating profit*Figures in three segments for FYE 21/6 are simple aggregations before intercompany eliminations.

56Materiality Related to Business Activities and Corresponding SDGs
Link business activities with materiality, identify what the Nippon Koei Group can do aboutcommon 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

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 (tangible elements such as facilities andequipment) and software (intangible elements such as humanresources and technology).

Development of
infrastructure where all
people can freely
interact and play anactive role•

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

Creation of attractive
cities where a diversityof people andindustries areconcentrated•

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

Conservation of the
global environment byachieving adecarbonized society••

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

Development of
infrastructure toprotect safe living•

57

Materiality Related to Management Base and Corresponding SDGs
Link business activities with materiality, identify what the Nippon Koei Group can do aboutcommon 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

Key relevant SDGs

Examples of initiatives for each materiality

Strengthening
corporate
governance••

Review institutional design.
Reinforce compliance activities.

A rewarding
work
environment
where humanrights arerespected•

Further promote well-being management.

•

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

Development of
human
resources andtechnology•

58

Corporate Profile (As of June 30, 2021)◼ Corporate name

Nippon Koei Co., Ltd.

◼ Established:

June 7, 1946

◼ Capital:¥7,480 million◼ 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.

◼ Number of employees: 5,936 [consolidated] 2,537 [non-consolidated]◼ Number of subsidiaries:84◼ Business description:
Consulting Business (domestic, international), Urban & Spatial
Development Business, Energy Business

Known as the “Father of Overseas Engineering Cooperation,” he wasawarded the Grand Cordon of the Order of the Rising Sun in 1985.

◼ Management philosophy:
Act with integrity and contribute to society through technology andengineering.

He directed projects in many countries around the world until he was 90
years old, contributing to development in developing countries.

Consolidated revenue andoperating profit (millions of yen)

Net sales by region

Revenue
Revenue

Operating profit
Operatingprofit150,000

Middle East 1.1%
Central & SouthAmerica 2.4%

100,000

Africa 2.6%

131,000
101,338
81,83950,000Europe 11.6%
Asia
16.5%

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.

Japan
63.1%

106,023

108,589

112,214

117,859

10,00081,865

4,502

4,723

2015

2016

5,464

6,561
5,110

4,590

2019

2020

7,128

7,700

2021

2022
2022
(Plan)(Plan)

0

5,000
0

2017

2018

* Figures 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.

59

Business Development
Consulting Business

Urban & Spatial Development Business

Energy Business

Having civil engineering and other professional
technologies, we engage in the consulting
business, such as planning and design associatedwith the development and maintenance of social
infrastructure and safety measures, for the state,
local governments, overseas government
institutions, private firms and others. Civil
engineering consultants are expected todemonstrate high expertise and technical skills
along with integrated capabilities more than everin handling increasingly complicated social issues.
Nippon Koei supports social infrastructure while
undertaking various roles as a comprehensive
partner of business 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 pursuing business development byintegrating architecture and civil engineering in
response to the massive demand for urban
development in many locations around the world,
the Company made BDP, a UK-based architecturaldesign company, a subsidiary in March 2016 andmade Quadrangle, a Canadian firm, a subsidiary in
February 2019. By incorporating the architectural
know-how of both firms, we are engaging in urban& spatial development that accommodates theneeds 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
to stably manage and control energy provided
from various power sources with the use ofbattery 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 byintegrating the conventional domestic consulting and international consulting businesses, the “Energy Business” encompassing the power engineeringand energy businesses, and the “Urban & Spatial Development Business.”

60

Job Description for Civil Engineering Consultants
Domestic: Mainly involved in steps up to the design stage. Main customers are primary government organizations, including the Ministry of Land,
Infrastructure, Transport and Tourism, and secondary government organizations including prefectural and other local governments.
Overseas: Involvement varies by project, and can range from planning and construction to construction supervision and management. Main customers
include the Japan International Cooperation Agency (JICA), other governmental agencies, the United Nations and the World Bank.

Planning

DesignPlanning and draft,feasibility studies

Basic engineering
Detailed engineering

Construction
Competitive bids
Providing proposals

Bid evaluation and support for
supplier selection

Operation/Management
Contract supervision and management Operational consulting
Construction supervision andManagement consulting
management

Domestic

Consultant (NK)Construction (general contractors, etc.)

Overseas

Consultant (NK)Construction supervision and management (NK)Construction (general contractors, etc.)

Example: Chronic traffic congestion problems in Region A
Planning

DesignProvide engineering services forstudies, planning, design and otheractivities• Should roads or subways be constructed?
• Is the project economically viable?
• Propose the optimum construction methods
given the terrain

Construction
Supervise the work of contractors on behalf of the client(supervision and management)(General contractors, manufacturers, etc.)
Execution of construction work according to thespecifications agreed upon by the contractee andthe civil engineering consulting firmCompletion ofroad
Provide as aservice toresidents
61

Strengths of the Nippon Koei Group(1) Sustainable business model developed alongwith progress in society(Win-win relationship between society andNippon Koei)(2) Japan's leading engineering and consulting firm
(Business domains, technologies, and humanresources)
Comprehensive strength: Capable of solving
sophisticated or complex issues

Implementation of transformation to meet market
needs

Human resources: Having the largest number ofengineers in the industry
Commercialization of solutions for social issues

Consolidated net
sales:¥117.8 billion

No. of countries
where business isundertaken:
Over 160

Technologies: Equipped with in-house R&D facilities
and a number of patents

No. of orders per year:

Over 9,000

No. of patents
acquired:85

No. of professional
engineers
1,656

Provide solutions for needs of the era and realize sustainable businessexpansion and profitability growth62

Position in Industry
Nippon Koei is Japan’s leading civil engineering consultant.
Sales (Millions of yen/Non-consolidated)
Rank

Corporate name:Construction consultation
segment

Corporate Total

1

Nippon Koei

53,627

69,431

2

Pacific Consultants Co., Ltd.

49,09950,755

3

CTI Engineering Co., Ltd.

42,31644,322

4

Oriental Consultants Co., Ltd.

24,442

24,5795

JR East Consultants Company

22,27324,5306

Yachiyo Engineering Co., Ltd.

20,895

21,398

7

Nihon Suido Consultants Co., Ltd.

20,427

20,5388

Oriental Consultants Global Co., Ltd.

20,30820,3089

Eight-Japan Engineering Consultants Inc.

19,90322,14010

IDEA Consultants, Inc.

18,921

19,423

22

Tamano Consultants Co., Ltd. (strong in urban planning and community development)

11,645

13,622

92

Nippon Civic Consulting Engineers Co., Ltd. (strong in shield tunneling)

2,341

2,384

*Source: Nikkei Construction, April 26, 2021 edition. Ranking by engineering consultant division sales (according to published financial results)

63Consulting Business: Market Trends and Operating Results
Nippon Koei Consulting Business: Operating Results (Millions of yen)

Public Works Expenditures (Trillions of yen)
10.0

Initial budget

Supplementary

120,000

30,000Orders

8.0
6.0

0.6

1.6

2.5

1.6

1.0

3.2

Operating profit

103,692
97,76889,838

4.0
6.0

6.0

6.0

6.1

6.0

6.1

75,48475,24573,94670,045FY2015FY2015FY2015FY2016FY2016FY2016FY2017FY2017FY2017FY2018FY2018FY2018FY2019FY2019FY2019FY2020
FY2020
FY202062,01995,00089,00090,0002.0
0.0

Revenue

81,33780,09820,00075,841
74,52168,007

62,84860,000Initial ODA Budget in the General Account (100s of million yen)
8,000

6,000

10,000

5,422

5,519

5,527

5,538

5,566

5,610

5,680

7,981

7,700

FYE 21/6
FYE 21/6

FYE 22/6(Plan)FYE
22/6(Plan)

6,928

30,000

5,185
4,000

5,831

5,911

FYE 19/6
FYE 19/6

FYE 20/6
FYE 20/6

4,112
3,008

2,000
0

0
FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2020
FY2020

FY2021
FY2021

0
FYE 15/6
FYE 15/6

FYE 16/6
FYE 16/6

FYE 17/6
FYE 17/6

FYE 18/6
FYE 18/6* Figures showing operating results for FYE 15/6 through FYE 21/6 are simple aggregations of the figures for Domestic Consulting andInternational 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.

64

Urban & Spatial Development Business: Market Trends and Operating
Results
Nippon Koei’s Operating Results in Urban &Spatial Development Business (Millions of yen)

Sales of Top 164 Firms in FY2020 by
Sector (100s of million US dollars)

OrdersOrders160

Revenue
Revenue

25,000

151.3

4,000

21,457
20,274140
20,510120

OperatingprofitOperating profit

20,000117.3

21,00020,00018,16017,8743,000

15,359100
15,00014,347
13,460

80

2,000

60

1,500

10,000

41.8

39.3

40

33.8

917

24.7
4.9

3.4
OthersTelecommunication

Hazardous
waste

Traffic andtransportation

Industry/
petroleum

Sewerage/
waste

Water supply

Electric power

Manufacturing81
Architecture

1,000

5,000

18.2

15.6

20
0

2,266

13,04012,855173

151

FYE 18/6
FYE 18/6

FYE 19/6
FYE 19/6

00
FYE 17/6
FYE 17/6

FYE 20/6
FYE 20/6*Source: Compiled by the Company based on information available in the ENR magazine (issued in August 2021)*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.

FYE 21/6
FYE 21/6

FYE 22/6
FYE(Plan)
22/6(Plan)

65

Energy Business: Market Trends and Operating Results
Repair Expenses for Tokyo Electric Power
Company Holdings, Inc. (100s of million yen)

2,500

Nippon Koei’s Operating Results in Energy Business(Millions of yen)Repair expenses

Orders

Revenue

Operating profit

27,000

9,000

2,174
1,975

2,000

22,00020,000 7,000

19,985

1,778
1,638

17,857
1,542

1,552

17,522

17,577

17,250
16,116
16,134
16,122

17,0001,500

14,716
13,595

17,207

16,621
15,00014,087

13,991

5,000

12,000

1,000

3,000
7,000

2,834

500
2,000

3,048

2,683
1,855

1,724

1,700

1,501

1,000

▲ 1,0610FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2020
FY2020▲ 3,000▲ 1,000
FYE 15/6 FYE 16/6 FYE 17/6 FYE 18/6 FYE 19/6 FYE 20/6 FYE 21/6 FYE 22/6
(Plan)FYE 15/6 FYE 16/6 FYE 17/6 FYE 18/6 FYE 19/6 FYE 20/6 FYE 21/6 FYE
22/6(Plan)*Figures showing operating results for FYE 18/6 through FYE 21/6 are simple aggregations of the figures for the Power Engineering and Energy
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.

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Inquiries on IR-related matters
Corporate Communication Office, Nippon Koei Co., Ltd.
Phone: +81-3-5276-2454 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 preparedbased 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.