Presentation of Financial
Resultsfor FYE June 30, 2022
September 2, 2022

Representative Director and President
Hiroaki SHINYA

Nippon Koei Co., Ltd.

1

Results for FYE June 30, 2022
(From July 2021 to June 2022)

Results for FYE June 30, 2022
While orders decreased from the previous fiscal year, revenue and profits reached record highs.
Profits in the third quarter were as revised upwards.
Consolidated
results•

Consolidated year-on-year decline in orders received due to curtailment of public investment in the UK of Urban &Spatial Development Business, despite strong performance in the Consulting Business and the Energy Business.

•

Revenue increased by more than 10% year-on-year in all three segments (Consulting, Urban & Spatial
Development and Energy).

•

Operating profit increased mainly due to higher operating rates in the overseas Consulting Business and a reboundto the one-time loss recorded in FYE June 2021.

(Million yen)FYE JuneFYE June
2021 Results 2022 Results

YoY Change
Amount%Results forecast*vs. PlanAmount%Orders133,304

131,166-2,13898.4%

130,000

1,166

100.9%

Revenue

117,859

130,674

12,814110.9%

131,000

-325

99.8%

Gross profit

37,73540,6992,964

107.9%

Operating profit

7,128

9,065

1,936

127.2%

9,000

65

100.7%

Profit before tax

7,176

10,8003,623

150.5%

Profit attributable to owners of parent

4,531

6,579

2,047

145.2%

6,600

-20

99.7%

*The consolidated earnings forecast and dividend forecast for FYE June 2022 were revised on 13 May 2022.

3

Profit/Loss Analysis
Personnel expenses increased due to sales growth, and profits grew due to a reaction to losses in the previous
fiscal year and the effect of yen depreciation.
■ Profit factor ■ Loss factor(Million yen)

Increase in personnel expenses andoutsourcing expenses, etc. due to higher
sales (the cost ratio increased by 0.9 points).

12,814Mainly due to the reaction to the
BDP’s COVID-19 subsidy in theprevious fiscal year andQuadrangle’s capital investment.

Reaction to temporary losses in
the previous fiscal year
(such as losses at CIKAENGAN
and provision for loss on design
defects)

About 17 billion
yen increase as aresult of a weakeryen

4Cash Flows / Balance Sheet (IFRS)Cash Flows (Million yen)

Balance Sheet (Million yen)

 Changes in operating cash flows were mainly due to anincrease in trade receivables and a rise or fall in accrued
consumption taxes, etc.
 Net cash used in investing activities increased due topurchases of energy-related property, plant and equipment andinvestment properties.

20,00015,000 The increase in assets was due to a rise in trade receivables andadvances paid.
 The liabilities increase was due to debt increase, and the equity
increase was due to growth in retained earnings.

 Net cash provided by financing activities grew mainly due to anincrease in proceeds from borrowings.
17,971

17,838

Liabilities

12,073

10,0009,323

Total Assets

4,820

5,000

1,892

0

June 2021
Cash anddepositebalance

OperatingCF

Total Assets
173,926
Equity81,969Equity72,294-6,949-7,928-10,000

83,843

156,137-2,129-2,750-5,000Liabilities
91,956

June 2021

June 2022
Investment
CF

Financial
CF

Simple FCF（Operating ＋
Investment）

June 2022
5

Results by Segment for FYE June 30, 2022 (Orders/Revenue/Operating Profit)
June 2021
Results(Million yen)Consulting
BusinessAmount%Results
forecast(announced in
May 2022)

vs. PlanAmount%Orders

97,769(Sales ratio)

98,491(Sales ratio)722

100.7%

95,0003,491

103.7%

Revenue

80,098100.0%

88,510100.0%

8,412

110.5%

90,000-1,48998.3%

Cost of sales

56,056

70.0%

63,233

71.4%

7,176

112.8%

Gross profit

24,04230.0%

25,277

28.6%

1,235

105.1%

SG&A, etc.

17,91522.4%

16,29518.4%-1,62091.0%

Operating profit

6,126

7.6%

8,982

10.1%

2,855

146.6%

9,300

-317

96.6%

Orders21,457(Sales ratio)

18,207(Sales ratio)-3,24984.9%

20,000-1,792

91.0%

Revenue

20,274100.0%

22,580100.0%

2,306

111.4%

21,0001,580

107.5%

11,29055.7%

12,529

55.5%

1,239

111.0%

8,983

44.3%

10,051

44.5%

1,067

111.9%

SG&A, etc.

6,716

33.1%

8,462

37.5%

1,745

126.0%

Operating profit

2,266

11.2%

1,588

7.0%

-677

70.1%

2,000

-411

79.4%

Orders13,991(Sales ratio)

14,343(Sales ratio)

351

102.5%

15,000

-656

95.6%

Revenue

16,621100.0%

18,799100.0%

2,177

113.1%

19,000

-200

98.9%

Cost of sales

12,36774.4%

13,450

71.5%

1,082

108.8%

Gross profit

4,253

25.6%

5,348

28.5%

1,094

125.7%

SG&A, etc.

3,439

20.7%

4,058

21.6%

618

118.0%

Operating profit

814

4.9%

1,290

6.9%

476

158.5%

1,300

-9

99.3%

Urban & Spatial Cost of sales
Development
Gross profit
Business

EnergyBusiness

YoY Change

June 2022
Results*The figures are calculated based on the results forecast announced on May 13, 2022.
*With the transfer of PT. CIKAENGAN TIRTA ENERGI (from the Energy Business to the Consulting Business), the results for both FYE June 2021 andFYE June 2022 were recorded in the Consulting Business.

6

Results by Business Segment for FYE June 30, 2022 : Consulting Business
Market environment
 In Japan, the number of projects continuously increases and the trend toward larger projects continues due to the national resilience building policy.
 There are some overseas areas where the business environment is unstable and uncertain due to the political situation, but there is no impact on our businessperformance. Travel restrictions due to the effects of coronavirus infections have been almost resolved.

FYE June 2022 results
 Orders: Government-related orders were strong domestically, while overseas orders decreased from the previous year, but large-scale orders were received in
the fourth quarter resulting in a year-on-year increase in the entire segment.
 Revenue: Increased both in Japan and overseas. The operating rate rose to a record high level mainly due to the start of operations for large-scale overseas
projects.
 Operating profit: Grew significantly due to the increase in revenue and a rebound from the one-time loss in the previous fiscal year. Improved profits at groupcompanies also contributed.

■Operating profit (Million yen)

■Orders・ Revenue (Million yen)
120,000

80,00098,491

97,76972,59335,72180,09834,20924,753

22,63588,51031,094

8,000
6,000

59,314

49,95862,04755,34564,282

57,416

2,000

20.0%

8,982
2,974

6,126

5,457
513

4,944

6,128

14.0%

10.1%

7.6%

7.5%

4,000

40,0000■Domestic ■Overseas ― Operating profit margin by segment
10,000106,931
47,617■Domestic ■ Overseas

8.0%
6,007
2.0%

Orders
Sales
June 2020

Orders Sales
June 2021

Orders Sales
June 2022

0

June 2020▲3

June 2021

June 2022-2,000*The results for FYE June 30, 2020, in the graph are based on the simple total value of the former domestic Consultant Business and the former overseas Consultant Businessbefore the elimination of internal transactions.

-4.0%

7

Results by Business Segment for FYE June 30, 2022 : Urban & Spatial Development
Business
Market environment
 In the UK, public investment is curtailed, and orders continue to be downsized. In Canada, housing demand remains strong.
 In Japan, both the urban redevelopment/revitalization market for public & private, and PPP/PFI projects are expanding nationwide.

FYE 22/6 results
 Orders: Decreased year-on-year due to a review of the Westminster Palace renovation project, a decrease in the number of hospital projects and downsizing oforders in association with curtailed public investment.
 Revenue: Both BDP and Quadrangle increased sales owing to the favorable progress of projects on hand.
 Operating profit: Decreased due to an increase in general and administrative expenses as a result of the reaction to the impact of COVID-19 at BDP in the previous
year, and goodwill impairment losses due to a rise in the DE ratio caused by the booming stock market.

■Orders・ Revenue (Million yen)

■Operating profit
Orders21,457
17,874

18,142

20,274

18,207

Operating profit
営業利益率
margin20.0%

Operating profit

Sales revenue
22,580(Million yen)

2,500
2,000

2,266
1,759

1,500
1,000

9.7%

1,588
11.2%

10.0%
7.0%

500
June20/6
2020

June
2021
21/6

June
2022
22/6

0

June
2020
20/6

*The actual exchange rate for FYE June 30, 2022: £1 = 156.18 yen (assumed exchange rate for FYE June 30, 2022: £1 = 151.65 yen)
*The results for FYE June 30, 2020, in the graph are based on Japanese GAAP.

June
21/62021

15.0%

June
22/62022

5.0%
0.0%
8

Results by Business Segment for FYE June 30, 2022 : Energy Business
Market environment
 In Europe, major countries have implemented strong policy support for storage batteries, and the use of storage batteries is on the rise.
 Electric power companies in Japan are aiming for digital substations that comply with the international standard (IEC61850) in constructing substation
protection and control systems, and the need for updating existing equipment is growing steadily. Renewable energy-related power storage business is
expanding gradually in Japan as well.

FYE 22/6 results
 Orders: Acquisition of delayed large-scale orders, productivity improvement in factory, and elimination of delays in semiconductor procurement graduallycontributed to the year-on-year increase.
 Revenue:
Increased sales due to steady progress in projects on hand and favorable progress in energy EPC.
(Millions of yen)
 Operating profit: Increased compared to the previous year due to cost reduction in the Manufacturing Division and provision for construction losses.

■Orders・ Revenue (Million yen)

Revenue■Operating profit (Million yen)

16,621
13,991

1,290

18,79914,3431,000

20/6
June 2020

21/6
June
2021

22/6 2022
June

0

10.0%

814
640

500

Operating profit
営業利益率
marginOperating
営業利益
profit1,500

19,986
16,452

Orders3.9%

June 2020
20/6

6.9%
4.9%

June
2021
21/6

*The results for FYE June 30, 2020, in the graph are based on the simple total value of the former Electric Power Engineering Business and the former Energy
Business before the elimination of internal transactions and are based on Japanese GAAP.

June 2022
22/6

0.0%
9

2

FYE June 2023 Forecast(From July 2022 to June 2023)

FYE June 2023 Forecast
Orders, revenue and profits increased from the previous fiscal year. Aim to achieve record-high revenue and profits.
Promote the Medium-term Management Plan ahead of the initial schedule.
(Millions of yen)OrdersConsulting Business
Urban & Spatial Development Business
Energy Business
Revenue
Consulting Business
Urban & Spatial Development Business
Energy Business
Other
Operating profit
Consulting Business
Urban & Spatial Development Business
Energy Business
Other
Profit attributable to owners of parent
ROE

22/6
Results
131,166
98,491
18,207
14,343
130,674
88,51022,58018,799
783
9,065
8,982
1,588
1,290
-2,7966,579
8.8%

YoY Change

23/6
Plan

Amount140,000
85,00040,00016,000145,000
81,50040,00022,5001,000
11,300
9,200
2,800
2,400
-3,100
6,700
8.5%

8,833
-13,491
21,792
1,656
14,325-7,01017,419
3,700
216
2,234
217
1,211
1,109
-303
120
-0.3%

*The figures for the former Tamano Consultants are recorded in the Consulting Business for FYE June 2022 and in the Urban & Spatial Development
Business for FYE June 2023.

%
106.7%
86.3%
219.7%
111.6%
111.0%
92.1%
177.1%
119.7%
127.7%
124.6%
102.4%
176.2%
186.0%
101.8%
11

Plan for FYE June 30, 2023: Overview by Segment
Excluding the impact of the segment transfer of a subsidiary (the transfer of the former Tamano Consultants from theConsulting Business to the Urban & Spatial Development Business), sales and profits are expected to increase in all segments.
Consulting Business(*Reference value excluding thefigures for the former Tamano
Consultants)

80,000(*84,666)(*74,922)(*Reference value including thefigures for the former Tamano
Consultants)

OrdersSales revenue
30.0%
Operating
営業利益率profit 50,000
margin120,000

98,491
88,51085,00081,500(*36,168)

10.1%

11.3%

15.0%

18,20715.0%

22,580

7.0%

7.0%

June
2021
22/6

Results

June
2022
23/6

5.0%

Plan

Excluding the segment transfer, orders are expected toincrease by approximately 3 billion yen and sales revenue
by approximately 65 billion yen.
Aim to increase operating profit by continuing productivity
improvement measures.

18,79914,343

10.0% 10,000

6.9%

0.0%

0

June
2021
22/6

Results

June
2022
23/6

Plan

Excluding the segment transfer, orders are expected toincrease by approximately 79 billion yen and sales
revenue by approximately 38 billion yen.
Operating profit margin is expected to be at the same level
as in FYE 2022 with prior investment in BDP (promotion ofreform).

25.0%
20.0%

16,000
10.7%

15.0%
10.0%
5.0%

5.0%

10.0%

0

Operating
営業利益率 30.0%
profit margin

22,50020.0%
20,000(*32,032)

20.0%

Sales revenue

Sales revenue

40,000 40,000

25.0%(Million yen)OrdersOrdersOperating
30,000
営業利益率
profit margin25.0%

25,00040,000

Energy Business

Urban & Spatial Development Business

0.0%

0

June
2021
22/6

Results

June
2022
23/6

Plan

Sales are expected to increase due to accelerate progressin order backlog as a result of strengthening the production
system in the Manufacturing Division.
Operating profit is expected to increase due to the plannedsale of shares in past investment projects.

123Medium-Term Management Plan
“Building Resilience 2024”
Review of 1st Year and Priority Issues of 2nd YearPoints of the Medium-term Management Plan (FYE June 2022 to FYE June 2024)

Resilience

Building Resilience 2024

Boosting business through three independent domains

Resilience policy 2Group management structure that realizes matrix management acrossbusinesses and regions

Resilience policy 3

Embodying the NKG brand and NKG quality

Business axis

Nippon Koei Group

Resilience policy 1

Regional axis

Formulation of measures linked to seven materialitiesFYE June 30, 2024, numerical targets
and progress
 Revenue increases about 10% annually.

Consulting
200,000

150,000

 The operating profit margin plan for FYE
June 30, 2023, exceeds the final fiscal 100,000
year plan of the medium-term
management plan due to the energy50,000
related special circumstances.
 Excluding the special circumstances,
operating profit increases by more than
10% annually.

■Operating profit (Billion yen)・Operating margin（％）■Revenue (Billion yen)
Urban & Spatial Development

1,178

1,306

Energy

1,450

Other
Urban & Spatial Development
Operating profit margin

Other

1,550

20.0%

20,00015,00010,000

71

5,000

6.0%

90
6.9%

113

115

7.8%

7.4%

June 2021
Results

June 2022
Results

June 2023
Plan

June 2024
Mid-term
plan

15.0%
10.0%
5.0%

0
-5,0000EnergyConsulting

June 2021
Results

June 2022
Results

June 2023
Plan

June 2024
Mid-term
plan

0.0%

14

Resilience policy 1:Boosting business through three independent domains- Consulting BusinessFYE June 2022
(1st Year) review

Sales grew due to the strong progress in large-scale overseas projects. Started acquiring technologies to expand business domains
and solidify the foundation for new services.

Policies for
FYE June 2023 (2nd Year)

Develop new services by using new technologies and expand business by utilizing co-creation partners.

Segment targets in
the Medium-termManagement Plan
Segment sales grew 1.3
times in real terms
Advancement andglobal deployment ofdisaster prevention andmitigation technologies

Expansion oftransportation-related
businesses

Promotion of services
that contribute todecarbonization

Full-scale developmentof the management field

Materialities

Key strategies

Major achievements in FYE 22/6 (Year 1)-

 Integrated management of domestic, overseas
and research institutes
 Delivery of exceptional technology and quality to
global markets

 Revenue increased 10% year-on-year Cooperation between domestic and overseas
deepened

M1

 Development and renewal of infrastructure toprotect people’s lives
 Data utilization that contributes to people’s
peace of mind

Building of co-creation partners
 Investment in iQPS
 Comprehensive alliance for flood control with
Iwaki City

M2
M3

 Strengthening of intercity transportation
networks
 Promotion of next-generation mobility
 Data utilization in transportation services

Receiving orders for large-scale projects andalliances for business expansion
 Received orders for construction supervision of
Dhaka Line 1
 Investment in AINO in Indonesia

M4

 Measures against global warming Support for sustainable business activities
through renewable and new energy sources,
among others
 Environmental management and conservation
measures

M1-4

 Support for new infrastructure management
practices (comprehensive management, PPP, AI
inspection and diagnosis)

Evalu
ation

Policies for FYE 23/6 (Year 2)☀

 Promotion of cross-cutting projects
 Promote productivity improvement measurescontinuously such as cooperate domestic withoverseas⛅

Simultaneously promoting technologicaldevelopment, human resource development andbusiness deployment
 Demonstration experiment in Fujimino City => Page 16☀

Building a structure for new areas development,
strengthening & expanding transportation networks
 Acquired ASAP MOBILITY as subsidiary => Page 17
 Acquisition of orders for overseas large-scale projects=> Page 18

Real-field deployment of solutions
 Started KIBOH 2030 and TSUMUGI @ (SDGsrelated businesses)
 Accumulated orders for wind power generation in
the private sector⛅

Building new services using newly developed
technologies
 Business development of climate change technology
and tech technology

Realization of participation in managementbusiness areas
 Started industrial water supply concession
business in Osaka⛅

Accumulation of management technologies throughreal-field activities■Business activities’ materialities M1: Develop safe and secure infrastructure, M2: Develop a smart society, M3: Create attractive cities, M4: Strive to achieve decarbonization

15

[Case Study] Consulting Business: Advancement and Global Expansion fordisaster prevention & mitigation technologies
Integrated service that perform real time rainfall and inundation forecasting with high accuracy
during torrential rain developed with co-creation partners
 NTT Advanced Technology, Nippon Koei, Toshiba and NTT EAST provide an integrated distribution service for early prediction of
torrential rain, inundation simulation and dynamic hazard maps to solve the problems of water disasters.
 Demonstration tests are underway in Fujimino City, Saitama Prefecture, from August 2022 to the end of the year.
[Conceptual image of integrated service]

Disaster prevention platform "Bousuke" developed by the Company
Real-time flood simulationSuccessive flood prediction based on short-time
rainfall forecasts such as NowcastCentralization of rain, river level and warning
information held by MLIT, JMA and local
governmentsVarious additional functions such as satellite
information, inundation sensor information andcooperation with AI cameras



Lower deployment costs through cloud services

Apply

Conceptual image of service screen

Toshiba

Provide information on highperformance radar MP-PAWR

NipponKoei

Analyze data in real time to predictflooding risk tens of minutes to hours
ahead

NTT

Disseminate information to local government
employees through interactive information
communication systems

By creating disaster-resilient cities, respond to the diverse technical needs from customers including the private sector
16[Case Study] Consulting Business: Expansion of traffic transportation-related
business
NK acquired ASAP MOBILITY SDN. BHD. as subsidiary to strengthen our presence in railway field.
The railway market continues to grow worldwide and is the leading part of the 'Infrastructure Export Strategy' promoted by Japan government.
Acquired ASAP, a company with strengths in railway systems as a subsidiary for the growth of NKG's railway business

Established superiority position as railway consultant▼Railway project system of NKG

Architecture

Civil engineering
・Management

System

BDP

Nippon Koei

ASAP

 Expansion of consulting business related to railway
systems
 Enhancement of RAMS MANAGEMENT OF RAILWAYSYSTEMS (international standard) Expand opportunities to enter non-ODA markets
 Intensify the technical abilities of our railway systemrelated personnel

With the addition of ASAP mobility, which is strong in system (vehicles, signals,
station, etc.), now we have become the first civil engineering consultant company
that has the entire technologies related to railway projects in Japan.

Take full advantage of all railway-related technologies in NKG to seize market opportunities and expand business.
17[Case Study] Consulting Business: Expansion of traffic transportation-related
business
Promote large-scale projects in the railway sector in South Asia and Latin America
Metropolitan transportation development project in Dhaka, Bangladesh
Three of the six Dhaka MRT routes are being handled by the Nippon Koei
Group.
▼Railway projects in progress

Dhaka MRT Line 1: *Contract under negotiation
Business: Construction supervision
Contract period: From 2022 to 2029
Total distance: 19 stations (provisional),
about 30 km

Metropolitan transportation development of Line 3 in Panama
Business: Construction supervision
Contract period: From March 2020 to January 2023
Number of orders: approx. 20 billion yen for the entire Nippon Koei
Group (2020–2023; additional orders of approx. 30 billion yen are
expected to be received by 2025)

Dhaka MRT 5 North LineBusiness: Detailed design, tender support
and construction supervision
Contract period: From 2020 to 2032
Total distance: 14 stations (provisional), about
19.5 kmDhaka MRT Line 6
Business: Detailed design, tendersupport and construction supervision
Contract period: From 2013 to 2023
*In the process of extension

Total distance: 16 stations, about 19.9
km

Aim to receive large-scale projects orders continuously and record sales through smooth staff utilization in operations
18

Resilience policy 1: Boosting business through three independent domains Urban & Spatial Development BusinessFYE June 2022
(1st Year) review

Projects have been steadily progressing at BDP and Quadrangle. Implemented organizational integration to expand the Japanese market.

Policies for
FYE June 2023 (2nd Year)

Strengthen integrated operations within the segment and promote joint orders. BDP entered the North American market.

Segment targets in themedium-term
management plan

Materialities

Segment sales grow twice-

Building smart city projects
in consideration of
decarbonization, safety andsecurity

Key strategies

 Develop new markets through integrated
group operations within the segments



M2






Realization of one-stop
operations in urban(re)development projects

M3

Expand BDP market

M3







Full-scale development of
the urban management field

M3



Major achievements in FYE June 2022(1st Year)

Eval
uatio
n

Policies for FYE June 2023 (2nd Year) Segment sales increased 11.4%
 Establishment of a new company (Integration of NK and theformer Tamano)⛅ Promotion of group cooperation within the segment
 Expand markets in North America

Receive construction orders also related totransportation, and expand participation in urban
development around stations, technology utilization
towards future Sale NFT of Nakagin Capsule Tower by KISHOKUROKAWA architect & associates => Page 20

Utilization of underused or unused landthrough public-private partnership
Promotion of DX, urban OS, energy
management and urban disaster prevention
Develop areas around transportation hubs

Received orders mainly for public transportation-oriented
development (TOD) Strengthened urban management capabilities in Laos andreceived orders for metropolitan TOD in Peru and Panama☀

Participate in urban (re)development projects
in local cities and large cities
Strengthening cooperation within thesegment

Establishment of systems to receive and promote orders forredevelopment projects
 Acquired redevelopment projects (Kawaguchi City, Keihin
Coastal Area, etc.)
 Continued to receive orders for group collaboration (Private
Vietnam urban development project, Dhaka MRT stationbuilding, Fukaya Terrace Vegetable Friends’ Farm, etc.)⛅

Establish Asian market network
Entry the North American market and expand
business
Participate design of sports stadium

Preparation to expand sectors/areas Acquired large-scale orders for BDP-Pattern Prepared to expand in North American, Australian and Asianmarkets⛅

Expand sectors/areas
 Establish New York Studio Establish low-cost center with BIM expertise (Lima,
New Delhi)

Acquisition of PM/CM/FM businesses in
expanding domestic building market

Expand participation in management business areas Acquired orders for private-sector projects such as plant
expansion and redevelopment construction management (CM)⛅

Acquire track records for new construction andrenewal of large-scale buildings
 Urban development management => Page 21

Cooperation to realize one-stop operations■Business activities’ materialities M1: Develop safe and secure infrastructure, M2: Develop a smart society, M3: Create attractive cities, M4: Strive to achieve decarbonization

19

[Case Study] Urban & Spatial Development Business: Future-oriented technology use
Reproduce “Nakagin Capsule Tower Building” in Metaverse Space as NFT Business of Architecture.
 A digital archive project to pass down on value of the Nakagin Capsule Tower designed by the late Kisho Kurokawa to future generations.
 the Nakagin Capsule Tower is reproduced in the metaverse space using digital technology and blockchain. Only one edition of the right toown, use and sell, etc. will be sold worldwide as an NFT.

Leverage new technologies to pass on valuable culture and communicate the appeal of architecture20

[Case Study] Urban & Spatial Development Business: Full-scale Development of
Urban Management Field
Implementation of project management operations for large-scale development
Conceptual imageof biomass powerplant

Wakayama Gobo Biomass Power Plant Construction Project
Outline: In relation to the construction of a biomass power plant in
Gobo City, Wakayama Prefecture, operations of coordinating
the parties related to civil engineering and construction.
Period: From April 2022 to October 2025
Principal manager: Construction Department, Tokyo Branch, Nippon
Koei Urban Space

Name

Image credit: JAG Energy Co., Ltd., press release dated April 20, 2022: "Decision to Commercialize the Biomass Power Plant in Gobo City,
Wakayama Prefecture"*The images and names used in this document are in the planning stage and are subject to change.

Gobo Biomass Power Plant

Construction
Site

Industrial site of Hidaka Port, Gobo City,
Wakayama Prefecture(Land owned by the prefecture and the city)

Generation
Capacity

50,000 kW

Fuel Used

Wood pellets, palm kernel shell (PKS)

Site Area

Approx.70,000 m2

Operation
Start

September 2025 (scheduled)

Construction Site

Engage management by utilizing architectural and civil engineering viewpoints on large-scale development with wide-ranging
related parties
21

Resilience policy 1: Boosting business through three independent domains- Energy BusinessFYE June 2022
(1st Year) review

Implemented measures to strengthen the production capacity of existing electric power businesses. Energy-related business started
construction in Europe.

Policies for
FYE June 2023 (2nd Year)

Establish a foundation for improving production efficiency and quality of core products. Implement specific measures to respond tochanges in the domestic energy market.

Segment targets in
the Medium-termManagement Plan
Segment sales grow 1.5
times

Materialities

Key strategies-

Building a foundation for the Energy BusinessStabilization of manufacturing business bystrengthening core products and developing
new products
Establish a foundation
for power generationand energy
management business



M1
M4




Strengthen
manufacture coreproducts and develop
new products



M1



Improvement of disaster prevention
capabilities of existing power systems
Development of mainstay renewableenergy power systems
Entry into the renewable energy
aggregator business and support for RE
100
Expansion of the operation of in-househydroelectric power generation

Renewal of aging power facilities andintroduction of digital technology
Strengthening mobile networks andmeeting ICT utilization needs overseas

Major achievements in FYE June 2022
(1st Year) Segment sales increased 13.1%
 Reduced costs in production divisions

Started power storage construction business in
Europe and entered into the domestic market
 Construction of energy storage projects in the UK
and Belgium Participated the U.S. Samoa onshore wind powerbusiness Started operation of in-house power plant (Okura
Masudama) Participated in domestic microgrid demonstration
project
 Developed products according to FIP and RE 100
Strengthened production capacity at in-houseplants and started demonstration tests using ICT
technology
 Improved P&D production efficiency
 Received orders for domestic hydropower S&B
project and storage battery system construction
 Expanded new ICT fields, such as demonstration
tests of 5G implementation at factories inThailand

Eval
uatio
n

⛅

Policies for FYE June 2023 (2nd Year)

Steady promotion of large-scale orders
Increase in orders from electric power companies
other than TEPCO
Reliable recovery of past investment projects⛅

Establish Japan’s domestic energy managementbusiness and development in Asia
Shift to FIP hydropower and start supplying
renewable energy to in-house facilities => Page 23
Expand EPC business => Page 24Develop energy management business in Asia⛅

Further improvement of profitability and promotionof commercialization of new technologies
Strengthen core products and development of new
products
Make production divisions into smart factories
Global expansion of system business■Business activities’ materialities M1: Develop safe and secure infrastructure, M2: Develop a smart society, M3: Create attractive cities, M4: Strive to achieve decarbonization

22

[Case Study] Energy Business: Building a Foundation for Power Generation andEnergy Management BusinessSupply 100% renewable energy to in-house sites (head office, laboratories, and manufacturing sites)
generated by NK’s own hydropower
Step1

Step2

・Shift from FIT to FIP for hydroelectric power
plants operated by NK・Obtain license of aggregator

Step3

Obtain retail license and sell 100% renewableenergy electricity and environmental certificatesPower producers
Non-fossil
certificates

Retail electricity
business

Aggregators

Suidouyama Power
StationDevelop their own aggregation
system and apply the know-how
gained in Europe to the JapanesesystemIn-house sites
Non-fossil
certificates
Renewable
electricity

Renewable
electricity
Shitoki Dam Power
Station

Supply renewable energy
power to in-house sites

R & D Center
Balance adjustment of supply
and demand

FIP premium

Wide-area agencies/generalelectricity transmission anddistribution operators

Head office

Manufacturing plant(Fukushima)

In the future, we will aggregate FIP power sources from other companies, supply renewable power sources for local production& consumption, supply/demand management, and power trade.
23[Case Study] Energy Business: Building a Foundation for Power Generationand Energy Management Business
Expand large-scale energy storage and renewable energy EPC (design, procurement and construction) projects
While major traditional customers such as government and electric power companies mainly order for design, procurement and construction, customers
who are expanding renewable energy market mainly order EPC related projects. Installation of large stationary batteries is also expected to increase.
EPC results by utilizing hydropower technologyMiwa Power Station large-scale renovation work EPC (Nagano
Prefecture)
Okura Masudama Hydropower Station construction work EPC(Yamagata Prefecture) , etc.
Renovation

Intakeport
Partial renewal

Hydraulicline
Whole renewal

 Experience in development, construction and operation oflarge-scale energy storage systems in Europe

Renovation

Discharge channel
Power
plant
SubstationTargets:
Regional microgrids, storage batteries for power systems, storage
batteries with renewable energy, consumer and factory
consumption, etc.
Advantages of NK:

Whole renewal

Transmission tower

Acquire large energy storage andrenewable energy EPCs

Renovation

Water
outlet Energy management system developed in-house Know-how to on design, construction and system development
for high-voltage substation
 Wealthy experience of hydroelectric EPCs

Miwa Power Station: Work Scope One-stop service from business model examination to EPC andbusiness operation

Meet the demand for EPC through integrated collaboration within segment, utilizing conventional transmission and distribution
technology and European power storage know-how

24Resilience policy 2：Matrix Management
Establish regional targets by segment with the aim of realizing matrix management of businesses and regions
Order Ratio between
domestic & overseas
1,500 billion yen
1,311 billion yen

42%
41%

59%
June 2022
Results
国内
Domestic

58%

June 2024
Plan
海外
Overseas

FY2024 order targets and focus areas by region■Consulting■Urban & Spatial Development■Energy(figures in parentheses indicate the percentage change from FY2022)

Europe, Middle East, Central
Asia, North Africa• Complex business of BDP & NKEE
• Reconstruction support for UkraineJapan
179billion yen（＋39.9％）• Strengthening of thenational land, infrastructure
maintenance and DX• Urban redevelopment• Response to new energy
markets

Americas96%• Urban development
and smart city projects 110billion yen
South Asia
• Transportation and 50% （＋0.9％） 50% • Formation of large-scaledisaster prevention
infrastructure businessprojects• Participation in peripheralbusinesses of megacity
development

Sub-Saharan Africa
39billion yen• Continued implementation of（-10.9％）comprehensive development in
Mombasa, Kenya• Transportation and urban projects
99%

20%

884billion yen（+15.0％）21%59%104billion yen(-35.1％）

98%

Southeast Asia

15%

90billion yen（＋17.6％）• Formation of PPP business• Strengthening of BDP cooperation• Deployment of energy managementbusiness and power generation business81%

Promoting autonomous regional management to achieve 50% overseas sales target of Long-term Management Strategy
25

Resilience Policy 3: Securing Diverse Human Resources andRealizing Ease of Working
Human resource strategy and maximize humancapital value through diversity▼KPIs for achieving diversity
Current: 29.1% Target of new female technology staff: Over 20%
Current: 4.5%

Current: 2.09%

Male staff taking(special) childcare leave
Percentage of staff with disabilities(statutory employment rate):▼Number of new staff

Over 55%

Over 2.3%

Male

Femal

250
200

173

150

36

100
50
0

187
41

206
60

105
22
137

146

146

FY19

FY20

FY21

83

FY18

• Monitor the situation of COVID-19 and respondflexibly to the attendance rate.
• Continue to promote health management.

Over 15% to 2030

Female managers percentage

Current: 28.8%

Promote well-being management

Work Life Balance Enhancing ourcompetitiveness andfulfilling our social mission
as a company
 Enabling a good work-lifebalance (WLB) for staff

Well-Being
Ensuring staff arephysically, mentally andsocially healthy

Key measures
 Establish satellite offices, free address system
 Manage attendance rate under COVID-19 byutilizing hoteling systems and robotic process
automation (RPA) Improve productivity through DX (such as RPA
and AI) Establish a special subsidiary for staff withdisabilities

26

Resilience Policy 3: Development of Human Resources that Embody the NKG Brand

Establishment of NKG Global Academy to share knowledge and know-howIn FYE June 30, 2024, we will establish a platform for co-creation in which all staff of Nippon Koei Group to learn together and share knowledge, experienceand know-how.
In the "Making the World Livable" business that NKG companies are developing on the global stage, we will provide a wide variety of programs for people tobecome human resources who can work actively and realize the vision of everyone.
Aim to raise the level of technology and visualize skills throughout the group.

▼Steps for deploying NKG Global Academy

Disclosure to stakeholders

Make the World a Better Place

Expand to overseas group companies

FY24

FY23

Establish NKG Global Academy

Launch NKG Career Box
Trial operation in domestic group companies

FY22
27

Dividend Payout Ratio The dividend payout ratio targets around 30%, and the company will continue to maintain stable dividends and enhanceshareholder returns according to profit levels.
 Acquire/cancel treasury stock when there is a good opportunity to achieve an appropriate total return ratio.
 Dividends for FYE June 30, 2022, were 125 yen per share, increased 50 yen from the previous fiscal year. The pay
dividends for FYE June 30, 2023, will continue at 125 yen per share.
Investment Policy• Growth investment (including M&A): Approx. ¥32 billion in three years
Strategy
investment

Securing financial soundness• Keep the own capital ratio at 40% even inconcentrated investment period of to secure
financial soundness.

SustainablegrowthFundprocurement

Reinvestment
Repaymentof external
funds

Cash flows

Shareholder Purchase oftreasury
returnsharesShareholder return• Continue to enhance shareholder returns according to stable dividends• Pursue purchase/cancellation of treasury shares as needed in order toachieve an appropriate total return ratio.
28

Transition to a Pure Holding Company Structure Transition to a pure holding company structure to deepen the management of the Group from a medium- to long-term
perspective and ensure future growth.
Purpose of transition to holding company structureGroup structure after reorganization (from October 2023)

1. Strengthening governance and accelerating
decision-making
Promote separation of management supervision andexecution.
HD will be a company with a nominating committee andspecialize in group management.
2. Promoting autonomy and cooperation
Each operating company pursues autonomous andflexible business operations, to improve profitability,
accelerate technological development, and ensure flexible
and rapid alliance and M&A strategies.
3. Ensuring diversity
Establish a system that support the autonomous growth ofgroup companies, including overseas subsidiaries, andensure diversity and global governance.

Integrated Design & Engineering Holdings Co., Ltd.
(Scheduled to be established in July 2023)

The first letters of the words in the company name in English (ID & E) are used as theJapanese name.
Design and Engineering express the vision of the Company as a general construction
consultant that has promoted "civil engineering and architecture" and show the desire tointegrate various fields (Integrated) and conduct business in a one-stop manner.
In addition, the new name is intended to expand the Group even further with the addition of
new members.
29

Working Together Toward A Future Without Boundaries

Appendix

Corporate Profile (As of June 30, 2022)
 Corporate name

Nippon Koei Co., Ltd.

 Established:

June 7, 1946

 Capital:¥7,501 million

 Founder: Yutaka Kubota (1890–1986)

 Number of employees: 6,163 [consolidated] 2,663 [non-consolidated] Number of subsidiaries:84 Business description:
Consulting Business (domestic, international), Urban & Spatial
Development Business, Energy Business

Revenue(millions of yen)

Japan

0%

Europe, the Middle East,
Central Asia, North Africa

6%8%Southeast Asia, East
Asia, Oceania
9%Americas

Other

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

Consolidated revenue and operating profit

Net sales by region

Sub-Saharan Africa

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.
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.

South Asia

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.

150,000

4%

100,000
50,00059%

14%

081,865
4,723

101,3385,464

106,023
6,561

108,589

112,214

117,859

130,674

7,128
5,110

Operating profit
145,000

20,00011,300
9,065

10,000

4,590
0

16/6

17/6

18/6

19/6

20/6

21/6

*Figures up to FYE June 30, 2020, are based on Japanese GAAP, andthose from FYE June 30, 2021, are based on IFRS.

22/6

23/6
(計画)
(Plan)
32

Business Development
Consulting Business

Urban & Spatial Development Business

Energy BusinessWith expertise in civil engineering and otherprofessional technologies, we engage in the
consulting business, such as planning and design
associated with the development andmaintenance of infrastructure and safetymeasures, for the state, local governments,
overseas government institutions, private firms
and others. In response to increasingly complex
social issues, construction consultants are
required more then ever to demonstrate their highlevel of expertise, technical capabilities, andcomprehensive abilities. Nippon Koei supportssocial infrastructure by undertaking various roles
as a comprehensive partner to 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 to create
urban & spatial development that accommodates
the needs 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.”

33

Job Description for Civil Engineering Consultants
Domestic: Mainly involve in 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

Domestic

Consultant (NK)Overseas

Consultant (NK)Construction
Competitive bids
Providing proposals

Operation/Management

Bid evaluation and support for
supplier selection

Contract supervision and management Operational consulting
Construction supervision andManagement consulting
management
Maintenance andConstruction (general contractors, etc.)
Management（NK）

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

Maintenance andManagement（NK)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 and thecivil engineering consulting firm

Maintenance andManagement
Inspection,
maintenance andageing measures
Completion of road
Provide as a service
to residents
34

Strengths of the Nippon Koei Group(1) Sustainable business model grows with society(Win-win relationship between society & Nippon Koei)(2) Japan's leading engineering consulting firm
(Business domains, technologies, and human resources)

Transforming to meet market demands

Comprehensive Capable of solving sophisticated &complex issues
strength

Commercialize solutions to social problems

Consolidated net sales¥130.6 billion

Business over

160 countries

Human
Resources

Largest number of professional
engineers in industry

Technology

In-house R&D facilities and patents

Orders over

9,000 per year

85

Patents

1,743

Professional engineers*As of June 2022

Coping with changing times, achieving sustainable business expansion and profitability growth.
35

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

Corporate name

Engineering consultant
division

Corporate Total

1

Nippon Koei

58,42773,970

2

Pacific Consultants Co., Ltd.

51,35852,931

3

CTI Engineering Co., Ltd.

46,636

48,591

4

Oriental Consultants Co., Ltd.

26,865

27,131

5

Oriental Consultants Global Co., Ltd.

22,86722,867

6

Eight-Japan Engineering Consultants Inc.

22,051

24,122

7

Nihon Suido Consultants Co., Ltd.

21,674

21,791

8

Yachiyo Engineering Co., Ltd.

21,65022,2199JR East Consultants Company

21,58623,861

10

PASCO Corporation

21,33550,29823

Tamano Consultants Co., Ltd. (Integrated with Urban & Spatial Development Business, NK in July 2022 )

12,03814,05088

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

2,753

2,800

*Source: Nikkei Construction, April 20, 2022, edition. Ranking by engineering consultant division sales (according to published financial results)

36

Change of Business Segments (From FYE June 2022)
For further cooperation, previous five business segments changed into three business segments.
Up to FYE June 2021 (before)
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 Latin America-Caribbean Co., Ltd. NIPPONKOEI LAC, INC.
NIPPON KOEI INDIA PVT. LTD.
NIPPON KOEI VIETNAM INTERNATIONAL CO., LTD.
PHILKOEI INTERNATIONAL, INC.
PT. INDOKOEI INTERNATIONALMYANMAR KOEI INTERNATIONAL LTD.

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

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

From FYE June 2022 (after)
Segment

Major group companies

Consulting

Tamano Consultants Co., Ltd.
Nippon Civic Consulting Engineers Co., Ltd.
Transfer to Urban &EL Koei Co., Ltd.
Spatial Development in
Koei Research & Consulting Inc.
FYE 23/6
Nippon Koei Latin America-Caribbean Co., Ltd. NIPPONKOEI 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 ENERGI

Urban & Spatial
Development

BDP 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
37

[Reference] Results for FYE June 2022 for Each of the Five Business Segments (IFRS)(Million yen)OrdersDomestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyRevenue
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyOther

Operating profit
Domestic Consulting
International Consulting
Power Engineering
Urban & Spatial Development
EnergyOther

FYE June 2021 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
-3
858
2,266
-65
-2,055FYE June 2022 Results
131,166
64,282
34,20914,222
18,207120
130,674
57,41631,094
17,77922,580
1,019
783
9,065
6,007
2,974
1,511
1,588
-237
-2,779YoY Change
Amount-2,1382,234-1,512342-3,249912,814
2,071
6,340
1,948
2,306
229
-81
1,936
-120
2,977
653
-677
-171
-724

*Since the business segments changed into three from FYE June 2022, the estimated values are calculated for the conventional five business segments for reference.

%
98.4%
103.6%
95.8%
102.5%
84.9%
108.3%
110.9%
103.7%
125.6%
112.3%
111.4%
129.0%
90.5%
127.2%
98.0%
176.1%
70.1%
38

Mission and Materiality of the Nippon Koei Group
Reviewed ‘Mission, Vision and Values’, specified materiality to contribute to SDGs actively
and increase corporate value

MissionVisionMake the world abetter place

Providing uniquevalue as a company

Nippon Koei Group’s Materiality
 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 arerespected
7. Development of human resources and technology

39

Long-term Management Strategy: Concept
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 innovationand integration of technology

Revenue

250 billion yen

Working together Part 1

Reorganizing businessMeasurements New development in threebusiness domains
 Achievement of one –stop
services and flexible business
management
 Full-scale expansion into business
management

Operating profit

25 billion yen

Operating profit
marginWorking together Part 2

10%

ROE

15%

Working together Part 3

Promoting autonomy &collaboration, establishing a
one-stop system

Manifesting the NKG brand and
NKG quality

 Transitioning to a holding company forautonomy and collaboration, faster
decision making, and coexistence ofdiversity Developing world-class humanresources in conjunction with ourtechnology strategy

 Implementation of matrix management
across businesses and regions

 Realizing digital transformation (DX)

40

0

0

2030 Vision
By working together with various internal and external partners, we will pursue wisdom and integrate wisdom with technologicalinnovation to provide new values in an aim to become a corporate group that contributes to realizing a society in which people
can feel enriched.
FYE 14/6 to FYE 20/6
(Japanese GAAP)■ Urban & Spatial Development■ Energy■ Power Engineering■ International Consulting■ Domestic Consulting— Operating profit margin

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

0

0

0

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

Expansion
2nd STEP

1st STEP

Building Resilience2024
FYE 21/6 Results(IFRS)

0

0

New Medium-termManagement Plan
Transformation(billion-yen)

Revenue: 117.8 billion yen

Operating profit margin: 6%

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

ROE: 6.7%

Accelerate expansion
into new businesses
and new markets

Breakthrough3rd STEPFYE 30/6 Target(IFRS)

Revenue: 250 billion yen

Operating profit margin:10%

Build the foundation
for becoming a 100year company

ROE: 15%

1,980

1,550

818

7%

9%

5.5%

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

0.0%

30.6

NKG Global Strategy 2030 —Working Together Toward A Future Without Boundaries
41Materiality Related to Business Activities and Corresponding SDGs
Link business activities with materiality, identify what the Nippon Koei Group can do about common issues in theworld and contribute to achieving the sustainable development goals (SDGs) while driving these initiatives toalso 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•

42

Materiality Related to Management Base and Corresponding
SDGs
Link business activities with materiality, identify what the Nippon Koei Group can do about common issues in theworld and contribute to achieving the sustainable development goals (SDGs) while driving these initiatives toalso 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•

43Medium-term Management Plan Building Resilience 2024 - Numerical Targets (IFRS)FYE June 2021
ResultsFYE June 2024
Plan

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%

1.4%

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 %

(Million yen)Amount%44

Medium-term Management Plan Building Resilience 2024 - Numerical Targets by
Segment (IFRS)(Million 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

6,126

8,200

2,073

133.8%

Urban & Spatial Development Business

2,266

3,200

933

141.2%

814

3,300

2,485

405.4%-2,079-3,200-1,120-

Revenue

Other
Operating profit

Energy Business
Other*With the transfer of PT. CIKAENGAN TIRTA ENERGI (from the Energy Business to the Consulting Business), the results of CIKAENGAN were recorded in the Consulting
Business.

45

Consulting Business: Market Trends and Operating Results
Nippon Koei Consulting Business: Operating Results (Million yen)

Public Works Expenditures (Trillion yen)
Initial10.0

Revision

OrdersSales revenue

Operating profit

120,000
1.0

3.2

2.5

1.6

30,0002.0

106,931
97,769

5.0

6.0

0.0

6.1

6.0

6.1

6.1

6.1

70,045FY2017FY2018FY2019FY2020

FY2021

FY2022

5,800

5,519

5,527

5,538

5,566

5,610

5,680

88,51075,48475,245

81,33774,52168,00780,09885,00081,50020,00072,59362,84860,000Initial ODA Budget in the General Account (billion yen)

5,600

89,83890,00098,491

5,612
6,928

30,000
4,112

5,400

5,185

7,981
5,831

5,457

FYE
19/6

FYE
20/6

8,982

9,200

FYE
22/6

FYE
23/6
（Plan）

10,000

5,200
0
5,000

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FYE
16/6

FYE
17/6

FYE
18/6

FYE
21/6

*Figures showing operating results for FYE 16/6 through FYE 20/6 are simple aggregations of the figures for Domestic Consulting and International 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.

046

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

Sales of Top 164 Firms in FY2021 by
Sector (billion US dollars)

Orders200

Sales revenue

Operating profit
8,000

176.3
40,000 40,000

40,000
150

126.4

6,000
30,000100

20,51046.1

50

20,000

36.0

32.4

29.9

19.2
5.6
0

14,34724.7

13,46015,35918,16017,874

21,457
20,274

22,5804,000

18,2072,800

13,04012,855

2,266

5.4

2,000

1,588

10,000

917

0

81

173

151

FYE
17/6

FYE
18/6

FYE
19/6

*Source: Compiled by the Company based on information available in the ENR magazine (issued in August 2022)*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
20/6

FYE
21/6

FYE
22/6

FYE
23/6
（Plan）

047

Energy Business: Market Trends and Operating Results
Repair Expenses for Tokyo Electric Power
Company Holdings, Inc. (billion yen)
2,500

Nippon Koei’s Operating Results in Energy Business(Million yen)OrdersRepair expenses

Sales revenue

Operating profit
10,00025,0002,000

22,500

1,975
1,778
1,638

1,685
1,542

19,98620,00017,522

1,552

1,500
15,0001,000

14,716

17,577

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

16,452

14,087

16,621
13,991

16,00014,343

6,000

4,000

10,000

3,048

500

2,683

2,400
1,855

5,000

1,724

FY2016FY2017FY2018FY2019FY2020

FY2021

0

FYE
16/6

FYE
17/6

FYE
18/6

FYE
19/6

2,000

1,290
640

0

8,000

18,799

FYE
20/6

814

FYE
21/6

FYE
22/6

*Figures showing operating results for FYE 16/6 through FYE 20/6 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.

FYE
23/6
（Plan）

048

Inquiries on IR-related matters
Corporate Communication Office, Nippon Koei Co., Ltd.
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.