Supplementary Materials for theSummary of Financial Reports
3Q, FYE June 30, 2019
May 14, 2019
Nippon Koei Co., Ltd.
This presentation is provided for informational purposes only and is not intended to solicit any action. Presentation in the materials (including
forecasts of financial Results) is based on credible information available at the time of publication and certain assumptions Nippon Koei believes tobe reasonable. Various factors may cause actual results to differ from the projected numbers or other expectations implied or expressed in thispresentation.

1

3Q Results for FYE June 30, 2019
Net sales increased driven by the strong performance of the Domestic Consulting segment.
Operating loss increased due to delays in starting large-scale projects in the International
Consulting segment.

(Millions of yen)OrdersFYE18/6 3Q
Results

FYE19/6 3Q
Results

YoY Change
Amount%70,50571,9951,489

102.1%Net Sales

67,522

74,162

6,639

109.8%

Gross profit

21,522

22,6971,174

105.5%

Operating Income

3,131

2,936

△ 194

93.8%

Ordinary income

3,217

2,704

△ 512

84.1%

Profit attributable toowners of parent

2,419

1,468

△ 951

60.7%

◼ While orders in the International Consulting and Power Engineering segments declined, the Domestic
Consulting and Urban & Spatial Development segments performed well. As a result, total orders
remained at the same level as the previous year.
◼ Net sales increased year on year due to sales growth in all businesses except for InternationalConsulting.
◼ For operating income, profit increased in the Domestic Consulting and Power Engineering segments.
However, because of reduced profits in other businesses, operating income decreased year on year.
◼ Profit attributable to owners of parent declined compared with the previous year, in which there was an
extraordinary gain on the sale of real estate.
2Results by Business Segment (Orders)
FYE18/6 3Q
Results(Millions of yen)OrdersFYE19/6 3Q
Results

YoY Change
Amount%70,50571,9951,489

102.1%

Domestic Consulting

30,39032,283

1,892

106.2%

International Consulting

19,422

17,775△ 1,647

91.5%

Power Engineering

12,6199,619△ 2,999

76.2%

Urban & Spatial Development

8,031

11,771

3,739

146.6%-470

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

Results by Business Segment (Net sales)
FYE18/6 3Q
Results(Millions of yen)

Net sales

FYE19/6 3Q
Results

YoY ChangeAmount%

67,522

74,162

6,639

109.8%

Domestic Consulting

25,892

33,1897,297

128.2%

International Consulting

20,077

16,384△ 3,693

81.6%

Power Engineering

10,972

11,942970

108.8%

Urban & Spatial Development

9,761

11,074

1,313

113.5%-577577-331

325△598.4%

EnergyReal Estate/Others■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development■Energy4

Results by Business Segment (Operating Income)
FYE18/6 3Q
Results(Millions of yen)

YoY Change

FYE19/6 3QResults

Amount%Operating Income

3,1312,936△ 19493.8%

Domestic Consulting

1,239

2,806

1,566

226.3%

International Consulting

2,197286△ 1,910

13.1%

Power Engineering

1,254

1,676422

133.7%

14574

△ 71

50.9%

-△ 173△ 173-

297

301

4101.5%

Urban & Spatial Development
EnergyReal Estate/Others■Domestic Consulting■International Consulting■Power Engineering■Urban & Spatial Development■Energy5

Overview of Performance by Business Segment
Domestic Consulting–––

For the amount of orders received, Q3 saw the achievement of a record high in orders received due todesign changes and responses to disasters.
Net sales increased due to strong orders in the current period.
Operating income increased due to an increase in net sales.

International Consulting–––

The amount of orders received decreased year on year due to a lag in the timing of receiving a large
project order, and a delay in an additional contract for the Vietnam railway project, despite orders
received for large projects including the Dhaka Mass Transit Development Project (Line 1).
Net sales decreased mainly because of the delay in the additional contract above.
Operating income decreased as a result of a lower operating rate due to a lag in the timing of receiving
an order, in addition to a decline in net sales.

Power Engineering–––

The amount of orders received was lower than the level in the same period of the previous year, primarily
due to a lag in the timing of receiving an order in the production segment, despite the planned level for theconstruction segment.
Net sales increased as the outstanding orders received through the previous year were recognized assales.
Operating income increased due to sales growth.
6Overview of Performance by Business Segment
Urban & Spatial Development– The amount of orders received increased year on year mainly due to the start of full-scale orders
related to Westminster, and an additional contract for a large project (Ireland hospital facility project).
– Net sales rose as Quadrangle in Canada joined the NK group, in addition to strong orders in the currentperiod.
– Operating income decreased because of Westminster-related anticipatory personnel expenses, amongothers.
* The fixed exchange rate applied to the results for the 3rd quarter of FYE June 30, 2019: 1 GBP = 144.74 JPY (the rate used in the plan for
FYE June 30, 2019 was 1 GBP = 149.17 JPY)** The amount of amortization expense of Urban & Spatial Development business for FYE June 30, 2019 is approx. 1 billion JPY (goodwill:approx. 400 million JPY; other intangible fixed assets: approx. 500 million JPY).

Energy–––The amount of orders received saw progress in orders for renewable energy (solar power) monitoring
services and those for EPC in Europe, aiming to contract EPC projects during the period.
Net sales include revenue from monitoring services and electric power sales in the Domestic Power
Generation business.
There was an operating loss due to anticipatory costs for the International Energy Managementbusiness.

7

Project Case Study
Domestic Consulting/ Geoplan Namtech Inc. Becomes A Group Company
We decided to make Geoplan Namtech Inc. a group company. It is aconsulting company mainly engaged in sales and support of systems in
the network infrastructure field including water supply and sewerage.
We will combine Geoplan’s data system and Nippon Koei Group’s
consulting service to promote maintenance business and technologicalproposal marketing based on asset data.

Domestic Consulting/ Hokkaido Eastern Iburi Earthquake Disaster Recovery Project
We grasped the current situation and monitored sediment disasters
and natural damming such as landslides, liquefaction damage,damage to embankments and bridges, and traffic obstructions
caused by long-term power failure, which occurred in a wide range ofareas including the left branch stream of the Azumagawa River,
Hidaka-horonaigawa River, Apporo Dam, Ishikarigawa River
discharge channel, and downtown Kiyota Ward, which were hit bythe Hokkaido Eastern Iburi Earthquake (M6.7: Maximum seismic
intensity of 7 (Atsuma Town)) in September 2018; surveyed,examined, and designed for disaster recovery; and prepareddocuments for consultations among relevant organizations.
Orderer: Hokkaido Development Bureau, Hokkaido government, andSapporo City government, among others
Amount of orders received:
Total 420 million yen

Response to the natural damming section of theHidaka-horonaigawa River
Source: Taken from the Ministry of Land, Infrastructure, Transportand Tourism website8Project Case Study
International Consulting/ Yangon Port Thilawa District Expansion Project Phase I
Development project for the Yangon Port Thilawa District Multipurpose Terminal to deal with rapidly increasing cargo in Myanmar

Nippon Koei conducted civil engineering (e.g., piers, bridging, bankprotection, land reclamation, soil improvement, pavement, anddrainage), construction/equipment work, design for procurement ofcargo-handling machines, tender support, construction supervisionand management, and defect inspection.
We adopted a construction method to shorten offshore construction.
We also designed it as a structure to function as a receiving dock for
emergency supplies in times of disaster, while adopting quakeabsorbing structures for gantry cranes.

Installation of the jacket (250t)

This terminal was supported by Japan comprehensively fromplanning, design, construction and operation, and the Myanmar
government highly evaluates various aspects, such as safety
management during construction, in addition to the high quality ofdesign and construction.
Orderer:

Myanmar Port Authority

Amount of orders received: 1 billion yen (whole consulting business)
Contract period:

Multi-purpose terminal wharf and Yangon RiverJul. 2014–Dec. 20199Project Case Study
Power Engineering/ Hokuriku Electric Power Company Matsunoki Power Plant No. 1 powergenerator update/water wheel repair, and others
Updated power generators at Matsunoki Power Plant(Toyama City), which was completed in April 2019. Withboth the existing No. 1 and No. 2 water wheels deliveredby the Company, this construction saw all main wheels atthe Matsunoki Power Plant become those made by
Nippon Koei.
The update increased the maximum output of the Power
Plant by 300kW to 6,200kW. CO2 emissions are expected
to be reduced by 490 tons annually.
Orderer: Hokuriku Electric Power Company
Amount of orders received: 300 million yen

Power Engineering/ Shinsakado Substation No. 4 Main Transformer single removal work
For Shinsakado Substation No. 4 Main
Transformer, which had been in operation
since 2005, removal work was conducted
for measures against short‐circuit
capacity/excess due to low operation ratios
and future equipment composition.
Orderer: TEPCO Power Grid
Amount of orders received: 160 million yen
Before work

After work10

Project Case Study
Urban & Spatial Development/ Giza Pyramids Masterplan ProjectIn March 2019, after a large-scale project competition,
BDP received an order from Orascom Investment
Holding for the preparation of a master plan to develop aGiza pyramid heritage area in Egypt.
This master plan will be designed to have maximum
synergy with Cairo Metro Line 4 (designed by NipponKoei) currently under construction on the east side of theheritage area.

Urban & Spatial Development/ Basic Design of Dunedin General Hospital
In March 2019, after a project competition, BDP jointly
received an order with Jacobs Australia for architecturaldesign of a general hospital in Dunedin City in southern
New Zealand.

It is the first facility design business for BDP in Oceania.

11Project Case Study
Energy/ 100MW Large-Scale Storage Battery Project to Begin
Nippon Koei’s European based Nippon Koei Energy Europe and RNA decided to establish a joint venturecompany.
As the joint venture company’s No. 1 and No. 2 projects, it is planned to establish two special purpose
companies under the company to engage in large-scale storage battery projects (approx. 50MW×2,
equivalent to 100MW in total).

It aims to secure business profit, receive orders for EPC operations, and develop a future storage battery
business by holding assets for large-scale storage battery projects in the U.K.

Energy/ First Spiral Water Turbine in Japan Started
The first spiral water turbine in Japan, developed andmanufactured by Nippon Koei on its own, started operations at
Hachimanzawa Power Plant (Ichinoseki City, Iwate Prefecture)in April 2019.
The spiral water turbine is suitable for small hydro-power
generation using agricultural irrigation channels because it cangenerate electric power with low gaps, without becoming
clogged up with trash such as dead leaves.
It is a system to sell all the generated electricity to the TohokuElectric Power Co., Inc. and, after collecting the construction
costs, allocate it to the maintenance of agricultural hydraulicfacilities to reduce the cost to farmers.
12FYE June 2019 Forecast(Millions of yen)OrdersDomestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyNet sales
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate/Others

Operating Income
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyReal Estate/Others
Ordinary Income
Profit attributable to owners of parent
Operating margin (%)
ROE (%)

No changes have been made to the forecast forthe entire FYE June 2019 period.

FYE 18/6
Results
104,350
48,52926,716
15,943
12,855
179
106,023
46,59528,88915,762
13,040
354
1,381
6,561
4,279
2,649
1,873
173
△ 18
△ 2,396
6,721
4,555
6.2
8.1

FYE19/6
Forecast
125,000
46,00044,00014,00016,0004,000
115,000
44,00031,00020,00016,500
2,500
1,000
6,200
3,500
2,400
2,600600△ 100△ 2,800
6,100
4,100
5.4
6.9

YoY ChangeAmount
20,649△ 2,529
17,283△ 1,943
3,144
3,820
8,976
△ 2,595
2,110
4,237
3,459
2,145
△ 381
△ 361
△ 779
△ 249
726426
△ 81
△ 403
△ 621
△ 455

YoY Change%
119.8%
94.8%
164.7%
87.8%
124.5%
2,228.6%
108.5%
94.4%
107.3%
126.9%
126.5%
704.6%
72.4%
94.5%
81.8%
90.6%
138.8%
345.2%
90.8%
90.0%13