Presentation of Financial
Results
2Q, FYE June 30, 2022
February 21, 2022

Representative Director and President
Hiroaki Shinya

Nippon Koei Co., Ltd.

Accounting Report(July 2021 - Dec 2021, FYE22/6 1H)
and FYE 22/6 Forecast

2Q Results for FYE June 30, 2022
Although received orders decreased, revenue in each segment progressed favorably, and each profit increased, andthe and the turning a profit.

(Millions of yen)

FYF21/6
2Q
Results

FYE22/6
2Q
Results

YoY Change
Amount%Orders52,03350,278-1,754

96.6%

Revenue

47,14052,981

5,841

112.4%

33,70438,0654,360

112.9%

Gross profit

13,435

14,9151,480

111.0%

SG&A, etc.

15,165

13,647-1,51890.0%

Operating profit-1,730

1,268

2,998

-

Profit before tax-2,005

1,517

3,523

-

Profit attributable to owners ofparent-2,055

615

2,671

-

Cost of sales*The Group has applied International Financial Reporting Standards (IFRS) from the year-end of the fiscal year ended June 30, 2021. The
figures for the previous consolidated second quarter are also disclosed based on IFRS.

3

Main points of 2Q FYE June 30, 2022
Orders: 50.2 billion yen (YoY -3.4%), Revenue: 52.9 billion yen (YoY +12.4%),
Operating profit: 1.2 billion yen (YoY +2.9 billion yen)
Driven by the Overseas Division of the Consulting Business, both consolidated revenue
and operating profit reached record highs compared with 2Q.
Posted the first ever profit in the first six months of the fiscal year.

Consolidated
results

Impact of
COVID-19•

Received orders decreased year-on-year because there was a project that was recorded in an
improper period in the Overseas Division of the Consulting Business. However, orders were strong
in the Urban & Spatial Development Business.

•

Revenue increased in all the three segments (Consulting, Urban & Spatial Development andEnergy) and progressed steadily. Revenue progressed favorably especially in the Domestic Divisionof the Consulting Business, and it grew significantly in the Overseas Division.

•Operating profit improved substantially because the operating rate in the Overseas Division of theConsulting Business improved and the temporary loss in energy business was eliminated.

•

No impact in Japan. The cost increased because business trips and transfers tended to increase
compared with the previous year.

•

The number of travelers remained at the pre-COVID-19 level overseas. The number of trips
approximately tripled from the previous period due to deregulation related to COVID-19
infections in each country.

4Profit/Loss Analysis
Increase in labor cost and outsourcing cost,etc. in association with the increase in sales.
(The cost rate was about the same as thesame period of the previous year.)

The temporary loss in the same period of the previous year was eliminated(CIKAENGAN: approximately 1.8 billion yen, increase in dividends because theperformance of the affiliated companies was strong; provision for loss on design
defects: 280 million yen, etc.)■Profit factor■Loss factor(Millions of yen)

5,841
Increase in the numberof employees of BDP /reactionary increase fromthe drop due to COVID19 (approximately 770
million yen)

525

2,548
615

-853
-4,360-1,030-2,055
Net incomefor 2Q FYE
21/6

Revenue

Cost of sales

Generaladministrative
expenses

Other profits
and losses

Financialprofit/loss

Tax, etc.

Net incomefor 2Q FYE
22/6
5Cash Flows / Balance Sheet
Cash Flows

Balance sheet (millions of yen)(millions of yen)

⚫ Cash provided by operating activities (decreased) due tothe increase in taxes from the strong businessperformance, the increase in operating expenses, etc.

⚫ Assets increased because there was an increase incontract assets (accounts receivable increased because
the number of projects in process progressed)⚫ Cash provided by financial activities (was up) mainly due
to the greater short-term debt

⚫ Liabilities grew because of the increase in seasonal shortterm debt while current liabilities fell

19,902

13,530Liabilities,-1,103Liabilities,-1,76983,843-8,865 -9,968-21,404-23,173
22/6

21/6
2Q
Cash and
現預金残高
depositbalance

Total assets,

assets,156,137

170,565

Capital,Capital,72,29472,323

2Q
Operating
営業CF
CF

Investment
投資CF
CF

Financial
財務CF
CF

Simple FCF
簡易FCF(Operating +investment)（営業＋投資）98,241Total

FYE2021

FYE2022
2Q
6

Results by Business Segment (Orders/Revenue/Operating profit)
FYE21/6
2Q
Results
Ratio (vs.Sales)
39,43230,363100.0%

FYE22/6
2Q
Results
Ratio (vs.Sales)
35,20933,626100.0%

22,735

74.9%

26,096

7,628

25.1%

SG&A, etc.

9,487

Operating profit（Millions of yen)

Energy Business%-4,223
3,263

77.6%

3,361

114.8%

7,529

22.4%

-98

98.7%

31.2%

7,095

21.1%

-2,39274.8%-1,859

-

434

1.3%

2,294

-

Orders6,281

Ratio (vs.Sales)

8,791

Ratio (vs.Sales)

2,509

139.9%

Revenue

8,918

100.0%

10,426100.0%

1,507

116.9%

5,131

57.5%

5,842

56.0%

711

113.9%

3,787

42.5%

4,583

44.0%

796

121.0%

SG&A, etc.

2,982

33.4%

3,814

36.6%

831

127.9%

Operating profit

804

9.0%

769

7.4%

-35

95.6%

Orders6,270

Ratio (vs.Sales)

6,247

Ratio (vs.Sales)

-22

99.6%

Revenue

7,379

100.0%

8,565

100.0%

1,185

116.1%

5,609

76.0%

5,981

69.8%

372

106.6%

1,770

24.0%

2,583

30.2%

812

145.9%

SG&A, etc.

1,841

25.0%

1,647

19.2%

-194

89.4%

Operating profit

-70

-

936

10.9%

1,007

-

Revenue

Urban & Spatial
Development
BusinessAmount89.3%
110.7%

OrdersConsulting BusinessYoY Change

Cost of expenses
Gross profit

Cost of expenses
Gross profit

Cost of expenses
Gross profit

7

Results by Business Segment: Consulting Business
Status of progress in the first half◼
◼
◼

Orders: Remained at the same high level as the same period of the previous year in Japan. Decreased year-on-year in the entire segment
because the order received for a yen loan project was recorded in an improper period among others overseas
Revenue: Increased because the projects for the existing received orders progressed steadily both in Japan and overseas and becauseof the progress in large-scale projects of overseas subsidiaries
Operating profit: The entire Consulting Business returned to the black and profit increased significantly due to the increase in overseas
sales and operating rates, although profit fell due to the greater outsourcing and labor costs in Japan.

Points for the second half◼
◼

Based on the production framework, we carried out strategic activities to receive orders for the 5-year acceleration measures fordisaster prevention, disaster mitigation and national resilience, etc. in the public works budget.
We controlled the overseas variable costs (outsourcing cost, labor cost)(Millions of yen)

受注高
Orders
売上収益
Revenue

42,122
31,293

受注残高 orders
Outstanding

営業利益 profit
Operating
39,43230,363434

35,20933,626

137,411130,487
108,946-1,165-1,85920/6 2Q

21/6 2Q

22/6 2Q
20/6 2Q

21/6 2Q

22/6 2Q

20/6 2Q* The results for the 2Q of the 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 Business before the elimination of internal transactions in Japanese standards.

21/6 2Q

22/6 2Q

8

Results by Business Segment: Urban & Spatial Development
Business
Status of progress in the first half◼
◼
◼

Orders: Increased year on year because BDP in the United Kingdom received orders from the private sector and orders received by
Quadrangle in Canada were strong.
Revenue: Increased due to the good progress and operating rate of the project whose order was received in the previous period by
BDP in the UK as well as the effects of exchange rates.
Operating profit: Decreased due to the transfer of some projects to the Consulting Business in association with the reorganization, andthe reactionary increase in general and administrative expenses from the drop due to the influence of COVID-19 at BDP.

Points for the second half◼
◼
◼

Continue to carry out activities to receive orders by identifying the sectors expected to grow and assessing business changes after
the pandemic and activities to receive orders through collaboration between studios in the UK and overseas studios.
Focus on acquiring projects outside the UK with the connection in the existing NK×BDP projects as a trigger.
Strive to promote business and secure sales for the large-scale Westminster Place project while checking the movements of the UK
government.
受注高
Orders
売上収益
Revenue

8,984 8,963

8,918

10,426
8,791(Millions of yen)

受注残高 orders
Outstanding

Operating profit
営業利益

804

769

21/6 2Q

22/6 2Q

6,281

18,56522,076

16,205504

20/6 2Q

21/6 2Q

22/6 2Q

20/6 2Q

20/6 2Q* The actual exchange rate in 2Q of FYE June 30, 2022: ￡1=152.76 yen (the assumed exchange rate for FYE June 30, 2022: ￡1= 151.65 yen)
* The results of 2Q FYE June 30, 2020 in the graph are based on Japanese standards.

21/6 2Q

22/6 2Q

9

Results by Business Segment: Energy Business
Status of progress in the first half◼

◼

◼

Orders: Remained at the same high level as the same period of the previous year when there were multiple large orders as orders werereceived for large-scale hydroelectric power generation and system power storage stations, etc. for entities other than major
electric power companies.
Revenue: The TEPCO dam standardization project, the large-scale hydroelectric power generation project, etc. in the Manufacturing Division
progressed systematically. Revenue increased due to the improvement in the local operating rate of overseas projects in addition to theabove.
Operating profit: Returned to profit by increasing sales and reducing costs by improving the efficiency in system manufacturing andeliminating the temporary provision for loss on construction contracts and extraordinary loss in the same period of the previous
year.

Points for the second half◼
◼

There is a concern that the progress may be delayed due to delays in the delivery of semiconductors and resin products, process changes, etc.
Strive to secure profit by acquiring the orders expected to be received, finishing the projects whose orders have been received (budget-actual
result management) and reducing fixed expenses.
(Millions of yen)

受注高
Orders
売上収益
Revenue

8,293
7,239

8,565
7,379
6,270

営業利益
Operating profit936

受注残高 orders
Outstanding

22,492

22,593

21/6 2Q

22/6 2Q

16,132

6,247
445

20/6 2Q

21/6 2Q

22/6 2Q

20/6 2Q-70
21/6 2Q

22/6 2Q* The results for the 2Q of the FYE June 30, 2020 in the graph are based on the simple total value of the former Electric Power Engineering Business and theformer Energy Business before the elimination of internal transactions in Japanese standards.

20/6 2Q

10FYE June 2022 Forecast
No changes have been made to the forecast for the entire FYE June 2021 period.
Revenue and operating profit are expected to set new record highs year on year.
(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
133,304
97,76921,457
13,991
117,859
80,09820,274
16,621
865
7,128
7,981
2,266
-1,061-2,0584,531

FYE 2022/6
Plan

YoY Change
Amount130,000
95,00020,00015,000131,000
89,00021,00020,000
1,000
7,700
7,700
1,500
1,700
-3,2004,700*Figures in three segments for FYE 21/6 are simple aggregations before intercompany eliminations.
*Please see page 31 for the method of segmentation into three segments and page 33 for the reference values for five segments.

-3,304-2,769-1,457
1,008
13,140
8,901
725
3,378
134
571
-281
-766
2,761
-1,141
169

％

97.5%
97.2%
93.2%
107.2%
111.1%
111.1%
103.6%
120.3%
115.6%
108.0%
96.5%
66.2%
103.7%
11

Progress of the Medium-Term Management Plan
-Building Resilience 2024-

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 resilience ofhorizontal threads
Group management structure that realizes
matrix management across businesses andregions
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

155 billion yen

Operating profit

11.5 billion yen

Operating profit margin

7%

ROE

9%
13

Key measures of the medium-term management plans(July 2021 – June 2024)
Promote sustainable future construction and corporate value improvement by associating materiality with the measures of each businessbased on the resilience of the entire Nippon Koei Group
Resilience measures

Materiality

Key measures

M1. Development of safe and secure
infrastructure● Advancement and global deployment of disaster-prevention & mitigation technologies(Development of infrastructure to protect safe living)● Full-scale expansion into the business management field

M2. Development of smart society● Expansion of transport related businesses(Development of infrastructure where all people can freely
interact and play an active role)
Resilience policy 1:
Boosting business throughthree independent domains

M3. Creation of attractive cities(Creation of attractive cities where a diversity of people andindustries are concentrated)● Smart city project formation in consideration of decarbonization and safety & security● Realization of one-stop services in urban development & redevelopment projects● Market expansion by BDP● Full-scale expansion into the urban management field● Promoting services that contribute to decarbonization

M4. Strive to achieve decarbonization(Conservation of the global environment by achieving adecarbonized society)● Formulation of foundations for power generation and energy management businesses● Strengthening production of core products and services and new product development● Provision of one-stop solutions with multifaceted, diverse technologies

Resilience policy 2:Group management structurethat realizes matrix
management acrossbusinesses and regions

Resilience policy 2:Embodying
the NKG brand and NKG
quality● Establishment of holding Company, Governance structure that realizes matrix
management
M5. Strengthening corporate governance● Construction of regional management systems and support for autonomous
management of the region● Realization of one-stop services

M6. A rewarding work environment where humanrights are respected● Work style reform (promotion of well-being management)● Promotion of DX

M7. Development of human resources and technology● NKG Global Academy

Corresponding business units: ●Consulting Business ●Urban & Spatial Development Business ●Energy Business●Other (Business Promotion Headquarters , Business Strategy Headquarters, Corporate Management Headquarters)

14

Ongoing key projects related to the key measures of the medium-term
management plans (business operations)Contribute to the construction of a sustainable future society while enhancing the strengths of ourgroup with each project supporting materiality (important issues)
Major project in progress⚫ Disaster prevention
technology DX conversion⚫ Satellite technology utilization⚫ Development of crack
inspection technology⚫ Development of disasterprevention platform⚫ Participation in thedisaster prevention
consortium⚫ AI technical development⚫ Opening of Thai City
⚫ Make the Thailand industrial
Railway
park smart (technologicallymodern)⚫ Promote utilization of automatic
driving⚫ Development of logistics
bases⚫ Participation in Park-PFI⚫ Construction of a system tosupport infrastructure
management⚫ Development of hot
spring resorts in Vietnam⚫ Promotion of projects for power storage systems⚫ Development of control systems for VPP⚫ Development of systems that integrate next-generation
power supplies

Supported materiality
M1. Development of safe andsecure infrastructure

Enhancement ofstrengths
Strengthen
and coordinate
the threemajorbusinesses

M2. Development of a smart
society

M3. Creation of attractive cities

M4. Strive to achieve
decarbonization

Ability to solve
regional issues
around theworld

Build asustainable
future society+
Increase
corporate value

Advanced
technology,
high quality

15

Advancing the disaster prevention and mitigation
technology using satellite technology

Resilience measure 1: Promotion of businessstrategies in three domains / Consulting BusinessM1. Development of secure and safe infrastructure

Strategic business alliance in the SAR satellite data business with Institute for Q‐shu
Pioneers of Space Concluded a business and capital alliance (agreement) with the Institute for Q‐shu Pioneers of Space, a space venture company
originating in Kyushu University, in December 2021.
 Respond to user needs for a service that provides satellite disaster-prevention information (frequent observation, photographing range
expansion, high image quality, quasi-real time)
Images currently used foranalysis

QPS images

It is not possible toidentify buildings©JAXA

L band satellite (StripMapMode) X band satellite (StripMapMode)

The state of the buildings in Marunouchi The levels can
be clearly confirmed.

Increase added value by implementing satellite technology in the existing projects, anddevelop new services for a smart society
16Advance the disaster prevention and mitigation
technology using digital technology

Resilience measure 1: Promotion of businessstrategies in three domains / Consulting BusinessM1. Development of secure and safe infrastructure

Give training to the staff of the Ministry of Land, Infrastructure, Transport and Tourism
on digital adaptation and AI utilization for disaster assessment▶ Examine digital adaptation for disaster assessment and give disaster assessment training based on a simulated experience at disastersites using 360-degree images (VR) and 3D data (point cloud data) as business activities of the Kyushu Regional Development Bureau of
the Ministry of Land, Infrastructure, Transport and Tourism▶ Deepen the understanding of AI and engage in AI training to promote appropriate AI utilization.

Virtual tour for disaster assessment

At the AI training

Work on DX using advanced technology to realize quick and efficient disaster recovery andimprove the comprehensive ability of disaster prevention
17

Master Plan for Logistics Base in Vietnam

Resilience measure 1: Promotion of businessstrategies in three domains / Consulting Business

M2: Development of smart society

Help to improve logistics services in and around Vietnam, which has been an issue formany years
 Completion of the base makes it possible to accept large containers. Promote domestic logistics service and realize
overseas export of cargo of the Mekong Delta region

Conceptional drawing of the Cai Mep Ha Logistics BaseAwarded the silver prize ofthe second Vietnam Urban Planning Award

Participate in logistics-related facility development and peripheral development, and expand
to urban development
18

Project Management for Thailand Urban
Railway

Resilience measure 1: Promotion of businessstrategies in three domains / Consulting Business

M2: Development of smart society

Participate in railway construction as a project management consultant to help reduce
the environmental load of the country The new urban railway red line that connects the central part of Bangkok and airports, etc. (41.3 km in total length), started
commercial operation in November 2021
 Alleviate problems such as traffic congestion and air pollution, which are becoming more serious mainly in urban areas, byexpanding the railway network

Bang Sue Grand Station

The railway yard adjacent to Bang
Sue Grand Station

Expand to railway infrastructure development projects in Asian countries to help reduce theenvironmental load of other countries
19

Participate in the Meiji Park Park-PFI project

Resilience measure 1: Promotion of business strategies
in three domains / Urban & Spatial Development Business

M3: Creation of attractive cities

Tokyo's first Park-PFI project. Our company participates in the Park-PFI project in a
metropolitan area for the first time.
 Participate in the project with a consortium of six companies. Nippon Koei conducts construction and landscaping design and operation
monitoring Challenge ourselves to create “a real forest that will last 100 years,” and work on development and operation of a park space that will be
the base of the community

Pedestrian deck no. 1

Land intended
for thebusiness
Approximately
1.6 haPedestrian deck no. 2

Conceptual image of completed area

Land intended for the business

Develop the market for urban development projects in metropolitan areas, and manage sustainable town
development in consideration of the environment, disaster prevention, energy, etc.
20

Regenerating the waterside by the BDP green
infrastructure

Resilience measure 1: Promotion of business strategies
in three domains / Urban & Spatial Development Business

M3: Creation of attractive cities

Strengthen efforts for the green infrastructure approach to create attractive cities
 BDP proposes approach technique from the viewpoint of green infrastructure Reconstruct the relationship between the cities around the world and the rivers and waterfronts in those areas to develop cities as green
infrastructure.

Patimbang Port City (Indonesia)
Collaboration between BDP, Nippon Koei and INDOKOEI INTERNATIONAL

New Pujiang Center (Shanghai)

Promote sustainable urban development with a rich natural environment through the green
infrastructure approach
21

The UK/Belgium project to construct large-scale
power storage has started

Resilience measure 1: Promotion of businessstrategies in three domains / Energy Business

M4: Strive to achieve decarbonization

Carry out projects for storage batteries for power systems in areas where the spread ofrenewable energy is advanced
 Enhance the ability to propose various storage battery solutions, and accumulate know-how of energy management through a one-stop
service Propel business deployment with renewable energy + storage batteries & EMS as key technologies for diversifying business profits

Project
UK Tollgate(49.5MW/64.5MWh)

UK Cuxton(49.5MW/64.5MWh)

Belgium Ruien(25MW/100MWh)

Our company will beable to handle theJapanese electric
power market

FYE June 30,
2022

FYE June 30,
2023

FYE June 30,
2024

FYE June 30,
2025

FYE June 30,
2026

Consumption
Construction
started in
Operation is going to start in spring of 2023 (frequency control,
December 2021
arbitrage, supply and demand adjustment market)
Consumption
Operation is going to start in spring of 2023 (frequency control,
Construction started inarbitrage, supply and demand adjustment market)
December 2021
Consumption
Operation is going to start at the beginning of 2023 (frequency control,
Construction started
arbitrage, imbalance adjustment transaction, capacity market)
in October 2021
Apply know-how to Japan. Support full-scale implementation ofstorage batteries for trading markets and power systems★ April, 2022 FIP system /aggregation license system★ 2024 capacity market / supply and demand adjustment
market Primary and secondary

NKEE* provides comprehensive services from development, planning, and EPC to operations
to expand to domestic energy management business* Nippon Koei Energy Europe, a European subsidiary in the Netherlands

22

Resilience measure 1: Promotion of businessstrategies in three domains / Energy Business

Building a foundation for power generationand energy management business

M4: Strive to achieve decarbonization

Develop related systems in anticipation of the start of the FIP system, the capacity
market and coordination of public offerings
Start providing control systems for VPP(virtual power plant)
We have developed a control system to instruct andrespond to resource control between aggregation
coordinators and market transactions (NK-AC System)
in-house and started providing it as a subscriptiontype service■Conceptual image of IPoCC
Storage battery
charge/discharge control

Adjustment instructions

Providing coordination

Simple command
systemCapacity market
systemMarket system for
supply and demand
adjustment

Support for forecasting
power generation

Development of system platform that
integrates next-generation electric power
We have developed a platform combining multiple
functions to carry out appropriate supply and demand
management in the electric power system jointly with
Mitsuuroko Green Energy and started demonstration
projects in sequence.

Consumer DR

Support for forecasting
power generation

Imbalance avoidance, etc.

Renewable energy
BG service
Effective utilization ofrenewable energy

System platform that integrates next-generation electric
power (Integrated Power Control Central, or IPoCC)
Energy resources

Aim to acquire aggregation business opportunities for renewable energy and power storage
resources
23

Ongoing key activities related to the key measures of themedium-term management plans (management foundation)
Build a foundation to support business activities that enhance the strengths of the Group, and thus
both construct a sustainable future society and enhance corporate value.
Key activities in
Supported materiality
Enhancement of strengths
progress⚫ Prepare to establish aholding company⚫ Promote sustainability⚫ Support local independent
management⚫ Construct a matrix
management framework⚫ Establish regional control⚫ Implement an incubation
investment system⚫ Promote well-being
management⚫ Promote efficient production
activities⚫ Promote healthy
management

Strengthenandcoordinate thethree major
businesses

M5. Strengthening
governanceM6. Respect for human rights
and work environment

M7. Human resource
development and technologicaldevelopment

Build afoundation to
supportbusiness
activities

Ability to solve
regional issues
around theworld

Build asustainable
future society+
Increase
corporate value

Advanced
technology,
high quality

24

Strengthening the corporate foundation (shift to apure holding company, matrix management)

Resilience measure 2: Group management
framework to realize matrix management

M5: Strengthening governance

Shift to a pure holding company

Matrix management

FY2023 Integrated operation of Urban & Spatial Development
Business and Tamano (scheduled for July 2022)▶ Thoroughly manage each region of the world, and streamline andimprove efficiency of operations▶ Promote creation of business in new areas to meet regional needs(incubation investment)

Sales scale: Approximately
2 billion yen
Number of members:
Approximately 60

Business axis

×

Tamano Consultants

Consulting
Business

Sales scale: Approximately
16 billion yen
Number of members:
Approximately 720

Projects requiring both civil engineering and construction
perspectives and ones where customer needs are
increasing. Build an organization that provides one-stop
services that integrate both fields

FY24 Establish a pure holding company

Urban & Spatial
Development
Business

EnergyBusiness

Japan

Regional axis

Urban & Spatial Development
Business, Nippon Koei

South
east
Asia

South
Asia

Matrix management
There are two axes—the businessaxis as the vertical axis and theregional axis as the horizontal axis

SubSaharanAfricaEuropeAmericas

Carry out independent activities of each organization in the Nippon Koei Group, speed up decisionmaking, and strengthen the framework for managing risks
25

Strengthening the company's foundation(sustainability)

Resilience measure 2: Group management
framework to realize matrix management
M6: Respect for human rights and work
environment

Promote sustainability▶ From this term, we will set up a sustainability promotion committee chaired by the director in charge of sustainability to aim
to improve the level of activities of the group company◼ Scheduled activities during theperiod of the medium-term plan

◼ Draw up basic policies for sustainability
Contribute to society throughbusiness activities
Environment

FY24

FY23

FY22

Draw up and promote
environmental mediumto long-term plans

Draw up and promote strategy for climate Socialchange issues
Strengthen support for human rights

Set up a sustainability promotion
committee
Draw up basic policies for sustainability
Draw up materiality goals

Governance

We will proactively promote commercialization of efforts to solve social issues andcontribute to the development of a sustainable society through business activities tosupport optimal infrastructure development according to the needs of the times.

Environmental
consideration

We will strive to create a richer social environment that harmonizes the naturalenvironment and the living environment by emphasizing climate change response,transition to a resource-recycling society and the need for biodiversity.

Respect forhuman rights

Through the supply chain, we recognize diversity, respond to human rights risks related torace, nationality, gender, ideology, beliefs and social status, etc., and strive not to assist
human rights violations.

Human resource
development

We will develop human resources who have expertise to meet customer needs and can
globally play an active role, and will maintain fair and impartial employment relationships
so that employees can play an active role.

Improvement ofworkingenvironment

We will support not only the safety of employees but also proactive health promotion, andwill strive to develop an environment that is worth working in where they can actually feel
comfort and richness.

Strengthening
governance

We will comply with the policies for corporate governance and ensure transparency ofmanagement through complete communication with stakeholders to increase the degreeof reliability.

Sincere businessexecution

We will comply with corporate ethics including laws and ordinances and social norms andcarry out fair transactions with all the business partners by respecting mutual positions.

Strongly promote social contribution through business activities, and realize sustainable growth of theGroup together with society
26

Technical development and DX promotion

Resilience measure 3: Establishment of the
NKG brand and NKG quality

M7: Human resource development andtechnological development

Continue investment to promote technologicaldevelopment

Develop advanced new research methods and makethem intellectual property

 Technological development cost has a tendency to increase year byyear
 FYE June 30, 2022 Technology development cost: 1.8 billion yen (up400 million yen from the previous fiscal year)
2.2% of sales (up 0.3% from the previous year) DNA tracer technology (a patent has been applied for jointly with
Yamaguchi University)

NK単体の技術開発費と売上高比率
2.2%

1.6%

15

1.5%

1.1%
0.8%

5

1.7%

1.4%

10
0.6%

0.7%

0.3%0.3%0.3%

0.4%

0.5%0.5%

0.7%

1.0%

1.0%0.9%
0.8%0.7%

0.5%

2021

2020

2022(計画)

技術開発費/売上高

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0.0%

2004

0

技術開発費

Liposome

2.0%

1.9%

2003

技術開発費（億円)

20

2.5%

技術開発費/売上高(％)

25

Put DNA into thismembrane

Enlarged
photo

Conceptual image of usage example
1. Grasp the causal relationship between road collapse andunderground construction
2. Check the location of water leakage from industrial waste
facilities, etc.
3. Check water leakage and water of unknown origin in
sewage pipes

Differentiate from other companies by using advanced tools, and expand business by applying
development technology to practice27

Resilience measure 3: Establishment of the
NKG brand and NKG quality

Technical development and DX promotion

M7: Human resource development andtechnological development

Promote improvement of the operational efficiency by organizing, manipulating and analyzing data using RPA and AI
 Currently in a transitionary time going from the implementation period tothe expansion period The operation method and rules have been prepared and maintained,
and are gradually being deployed company-wide.
 A similar tool for estimating business activities using RPA & AI has beenreleased in-house
Current location
July 2020–

October 2021–

Implementation period

Expansion period

Full-scale deployment◼ Establishment of a
specialized organization◼ Selection of a trial
business activity◼ Robot development◼ Trial operation◼ Trial operation
evaluation◼ Implemented in
multiple departments◼ Robot development◼ Robot
maintenance/operation

July 2022–
Company-wide
deployment period◼ Company-wide
implementation◼ RPA company-wide
recognition◼ Robot development◼ Robot
maintenance/operation◼ Promote local
development

 Input the publicly disclosed information on business activities→ 10 similar past business activities are output by AI

Pers
ons

AI

Information on businessactivities○ Name and overview ofthe business activities○ Specific theme○ Business activity of thesame kind or that issimilar

10 pieces of information on
similar business activities○ Name and overview of thebusiness activities○ Project number○ Keyword, etc.

Improve productivity, assure quality and reduce cost by using advanced tools
28

Working Together Toward A Future Without Boundaries

Appendix.

Change of Business Segments (From FYE June 2022)
In order to further promote collaboration, we will change from the previous five business segments to three.

Up to FYE June 2021 (before the revision)
Segment

Domestic
Consulting

International
Consulting

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

Power
Engineering
EnergyMajor group companies
Tamano Consultants Co., Ltd.
Nippon Civic Consulting Engineers Co., Ltd.
El Koei Co., Ltd.
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.

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

From FYE June 2022 (after the revision)
Segment

Major group companies

Consulting

Tamano Consultants Co., Ltd.
Nippon Civic Consulting Engineers Co., Ltd.Transfer to Urban &Spatial Development
EL Koei Co., Ltd.
in FYE 23/6
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.
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

31

[Reference] FYE June 30, 2022 1Q Results 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
EnergyOther

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

FYE21/6 1Q
Results
27,083
16,662
3,669
3,769
2,910
34
21,053
8,614
4,388
3,192
4,489
189
180
-1,112
-967
9
-148
394
36
-437

FYE22/6 1Q
Results
25,31916,764
3,553
2,090
2,868
42
23,960
8,585
6,265
3,663
5,002
262
181
-320
-927
523
219
316
36
-489

*Since the business segments are reorganized into three segments from FYE June 2022, these are estimatedvalues calculated for the conventional five business segments for reference.

YoY Change
Amount-1,764101-115-1,679
-41
7
2,906
-29
1,877
471
512
73
1
792
40
514
367
-77
0
-52

%
93.5%
100.6%
96.9%
55.5%
98.6%
122.6%
113.8%
99.7%
142.8%
114.8%
111.4%
138.7%
100.9%
5649.1%
80.3%
100.1%
32

[Reference] FYE June 30, 2022 Forecast for Each of the Five Business
Segments (IFRS)FYE 2021/6
Results

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 Other

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

YoY Change
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 estimatedvalues calculated for the conventional 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%
33

M i s s i o n a n d M a t e r i a l i t y o f t h e N i p p o n Ko e i G r o u p

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

MissionVisionValuesMake the world abetter place◼ Materiality related to business activities

Providing uniquevalue as a company

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 ofpeople and industries are concentrated
4. Conservation of the global environment byachieving a decarbonized society

Tackle your problems
with sincerity and theroad ahead shall be
clear◼ Materiality related to managementfoundations
5. Strengthening corporate governance
6. A rewarding work environment where humanrights are respected
7. Development of human resources and technology
34

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

250 billion yen

Working together initiative 1

Reorganizing businesssegments; developing onestop services◼ New development in threebusiness domains◼ Realization of one-stop services
and agile business management◼ Full-scale expansion intobusiness management

Operating profit

25 billion yen

Operating profit
margin

10%

ROE

15%

Working together initiative 2

Working together initiative 3

Promoting autonomy andcollaboration

Manifesting the NKG brandand NKG quality◼ Autonomy and collaboration; faster
decision-making; transitioning to aholding company for coexistence ofdiversity◼ Developing world-class humanresources in conjunction with
our technology strategy◼ Implementation of matrix
management across businesses
and regions◼ Realizing digital transformation
(DX)

35

2030 Vision
By working together with various partners within and out of the Company, we will pursue wisdom andintegrate wisdom with technological innovation to provide new values in an aim to become a corporategroup 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
FYE 21/6 Results(IFRS)

00

00

00

00

1st STEP
Building Resilience
2024

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

Revenue:
117.8 billion yen
Operating profit margin:

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

FYE 30/6 Target(IFRS)

Revenue:
250 billion yen
3rd STEP
Operating profit margin:
10%
Build the foundation
for becoming a
ROE: 15%100-year company

BreakthroughExpansion
2nd STEP
Accelerate
expansion into new
businesses and newmarkets

1,980

1,550

6%
ROE: 6.7%

818

7%

9%

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

36

Financial strategy

Investment policies

Target indicators
Long-term
management strategy

Operatingprofit margin

10%

ROE

15%

Medium-term
management plans

Operatingprofit margin

7%

ROE

9%

Strategic
investment

Funding

SustainablegrowthRe-investment

Ensuring financial soundness• Aim for a capital-to-asset ratio of 40% evenduring the period of concentration of investment
in order to ensure a sound financial condition• Make approximately 32 billion yen of growthinvestment (including M&A) in three years• Review and strengthen the investment projectscreening standards, and prepare and maintain andstrengthen the investment screening framework

Repayment Shareholde Acquisitionof external r returns of treasury
stock
funds

Cashflow

Shareholder returns• Continue to enhance shareholder returns
according to stable dividends and profit levels
with a dividend payout ratio of 30% as a goal
• Acquire/cancel treasury stock in order toachieve an appropriate total return ratio
according to the situation

37

Medium-term Management Plan Building Resilience 2024 Numerical Targets (IFRS)(Millions of yen)

FYE 2021/6
Results

FYE 2024/6
Plan

Amount%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 pt38

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.

39Materiality Related to Business Activities and Corresponding SDGs
Link business activities with materiality, identify what the Nippon Koei Group can doabout common 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
Development of
infrastructure toprotect safe living
Development of
infrastructure where all
people can freely
interact and play anactive role

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

•

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

•

Creation of attractive
cities where a diversityof people and industries
are concentrated•

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.
40

Materiality Related to Management Base and Corresponding SDGs
Link business activities with materiality, identify what the Nippon Koei Group can doabout common 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
human rights arerespected•

Further promote well-being management.

•

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

Development of humanresources andtechnology•

41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]

After the war, in a bid to work toward the restoration of Japanand reconstruction of countries damaged by the war, he founded
the Company at the age of 56.

◼ Number of subsidiaries: 84

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

◼ Business description:
Consulting Business (domestic, international),
Urban & Spatial Development Business, Energy Business◼ Management philosophy:
Act with integrity and contribute to society throughtechnology and engineering.

Net sales by region

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)

150,000

Middle East 1.1%

101,338

Central & South…

100,000

Africa 2.6%
Europe 11.6%

81,83950,000Asia
16.5%

Revenue
Revenue

Japan
63.1%

0

106,023

108,589

112,214

Operating profit
Operatingprofit117,859

131,000

10,00081,865

4,502

4,723

2015

2016

5,464

2017

7,128

6,561

2018

5,110

4,590

2019

2020

* 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.

2021

7,700

2022
2022
(Plan)(Plan)

5,000
042

Business Development
Consulting Business

Having civil engineering and otherprofessional technologies, we engage in the
consulting business, such as planning anddesign associated with the development andmaintenance of social infrastructure andsafety measures, for the state, local
governments, overseas government
institutions, private firms and others. Civil
engineering consultants are expected todemonstrate high expertise and technicalskills along with integrated capabilities morethan ever in handling increasingly
complicated social issues. Nippon Koei
supports social infrastructure while
undertaking various roles as a comprehensive
partner of business operators.

Urban & Spatial Development Business

Energy BusinessOne of the growing areas that account for alarge percentage of the sales of the world’s
construction companies is architecture.
With a view to pursuing business developmentby integrating architecture and civilengineering in response to the massive
demand for urban development in many
locations around the world, the Company
made BDP, a UK-based architectural design
company, a subsidiary in March 2016 andmade Quadrangle, a Canadian firm, asubsidiary in February 2019. By incorporating
the architectural know-how of both firms, weare engaging in urban & spatial developmentthat accommodates the needs of the new era.

We provide services for power and electricfacilities in Japan and abroad in all phasesfrom planning 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 powersources with the use of battery storage aswell 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 by integrating the conventional domestic consulting and international consulting businesses, the “Energy Business”
encompassing the power engineering and energy businesses, and the “Urban & Spatial Development Business.”

43

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 ofLand, 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

Operation/ManagementConstruction
Competitive bids Bid evaluation and support
Providing proposals for supplier selection

Contract supervision andmanagement
Construction supervision andmanagement

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 andother activities• Should roads or subways be constructed?
• Is the project economically viable?
• Propose the optimum construction
methods given the terrain

Operational consulting
Management consulting
Maintenance andmanagement（NK）

Maintenance andmanagement（NK）

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

Inspection,
maintenance andageing measures
Completion of road
Provide as a service toresidents

44

Strengths of the Nippon Koei Group(1) Sustainable business model developed
along with 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 meetmarket 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 growth45

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)

46

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

30,000Orders8.0
6.0

120,000

0.6

1.6

2.5

1.6

1.0

3.2

Revenue

Operating profit

103,692
97,76895,00089,838

4.0
6.0

6.0

6.0

6.1

6.0

6.1

2.0

73,9460.0
FY2015FY2015FY2015FY2016FY2016FY2016FY2017FY2017FY2017FY2018FY2018FY2018FY2019FY2019FY201989,00090,000

FY2020
FY2020
FY202081,33775,48475,24574,521

70,04562,01962,84875,84180,09820,00068,00760,000Initial ODA Budget in the General Account (100s of million yen)
8,000
6,000

5,422

5,519

5,527

5,538

5,566

5,610

5,680

6,928

30,000

5,185

5,831

5,911

FYE 19/6
FYE 19/6

FYE 20/6
FYE 20/6

10,000

7,981

7,700

FYE 21/6
FYE 21/6

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

4,112

4,000

3,008
2,000

0

0
FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2020
FY2020

FY2021
FY2021

0
FYE 15/6 FYE 16/6
FYE 17/6
FYE 15/6 FYE 16/6 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.

47

Urban & Spatial Development Business: Market Trends andOperating Results
Sales of Top 164 Firms in FY2020
by Sector (100s of million US dollars)

Nippon Koei’s Operating Results in Urban &Spatial Development Business (Millions of yen)OrdersOrders160

151.3

Operating profit
Operatingprofit25,000

4,000

140
120

Revenue
Revenue

21,457
20,274

20,510117.3

18,16017,87420,00021,00020,0003,000

15,359100
15,00014,347
13,46080

2,266

13,04012,855

2,000

60

1,500

10,000

41.8

39.3

40

33.8

917

24.7

18.2

15.6

20
4.9

5,000

3.4
81
OthersTelecommuni
cationHazardous
waste

Traffic andtransportation

Industry/
petroleum

Sewerage/
waste

Water supply

Electric power

Manufacturing0Architecture

1,000

173

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)

48

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

Orders27,000

Revenue

Operatingprofit

9,000

2,174
1,975

2,000

22,000

1,638

1,542

17,857

1,552
17,0001,500

20,000 7,000

19,985

1,778

13,595

17,522

14,716

17,577

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

17,207

14,087

16,621

13,991

15,0005,000

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

-1,0610
FY2015FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2020
FY2020-3,000-1,000FYE 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.

49

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 prepared based 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.