Presentation of Financial Results
2Q, FYE June 30, 2023
February 21, 2023

Representative Director and President
Hiroaki Shinya

On July 3, 2023, Nippon Koei Co., Ltd., will be establishing ID&E Holdings andtransition to a pure holding company structure.

Nippon Koei Co., Ltd.

Accounting Report(July 2022 - Dec 2022, FYE23/6)

1

2Q Results for FYE June 30, 2023
Orders and revenue increased year-on-year, while operating profit declined due to an increase in generaladministrative expenses and other project costs.
•

Orders increased year-on-year due to steady progress in the Urban & Spatial Development Business andEnergy Business.

Consolidated• Operating profit decreased mainly due to an increase in general administrative expenses in the Consulting andresults
Urban & Spatial Development Businesses.

•

Quarterly profit decreased due to a decrease in operating profit and foreign exchange losses.
FYF22/6
2Q
Results
50,278FYE23/6
2Q
Results
59,016

Revenue

52,981Gross profit(Million yen)

YoY Change
Amount%8,738

117.4%

58,4515,470

110.3%

14,915

15,913998

106.7%

Operating profit

1,268

1,235

-32

97.4%

Profit before tax

1,517

269

-1,24817.7%

615-1,054-1,670-OrdersProfit attributable to owners of parent

3

2Q Performance Trends
Revenue increased steadily, operating profit and profit before tax returned to the black gradually in 2Q.
2Q Performance Trends (Million yen)Orders
Revenue
Operating profit
Profit before tax

Basis for recording revenue
Completed

Major overseas projects are in progressand brought profits into the black

Progressing

59,01658,39558,45147,83249,14847,70751,796
46,67550,27858,451

52,981

39,14638,24531,233
26,304
20,336

1,268

1,517

1,235 269

-18
-3,328-2,286-2,747-2,344-2,597-2,901-2,817-1,185-426-1,427-3,500FYE 16/6
2Q

FYE 17/6
2Q

FYE 18/6
2Q

FYE 19/6
2Q

FYE 20/6
2Q

FYE 21/6
2Q

FYE 22/6
2Q

FYE 23/6
2Q
4

Profit/Loss Analysis
Decreased mainly due to an increase in general administrative expenses and foreign exchange losses in
the Consulting and Urban & Spatial Development Businesses.
Increase in labor and communication costs due toexpansion of production framework(Cost rate increased by 1.0%)

5,470

Mainly an increase in travel expenses for theConsulting Business, reorganization of the Urban& Spatial Development Business in Japan, andprior investment for BDP■Profit factor ■Loss factor(Million yen)

Gain on sale of shares and investment in securities of affiliated companies
related to investment in the Energy Business (+2 billion yen), provisions forcompensation paid (-490 million yen), and VAT expenses (-280 million yen)

Mainly foreign exchange losses(-780 million yen)
Deduction for gains on the sale of energy
stocks for non-dominant shareholders (750 million yen)5Cash Flows / Balance Sheet
Cash Flows (million yen)

Balance sheet (million yen)

⚫ Investment cash flows decreased due to the fact that although income
increased due to the sale of shares of companies related to Energy
Business investments, expenses exceeded that due to acquiring fixed
assets and shares of related companies.

⚫ Increase in assets was mainly due to an increase in contract assets.
⚫ Increase in liabilities was due to an increase in borrowings anddecrease in equity was due to a decrease in retained earnings.

⚫ Financial cash flows increased mainly due to seasonal borrowing.
25,032
19,902

16,755

14,539(1,769)(19,040)(4,516)

Liabilities
91,956
Total
assets173,926(18,539)(20,809)

Total
assets190,758
Equity76,54
5Equity81,969(23,055)

22/6
2Q

Liabilities
114,213

23/6
2Q

Cash and deposit balance

Operating CF

Financial CF

Simple FCF(Operating + investment)

Investment CF

22/6
End of Term

23/6
2Q
6

Results by Business Segment (Orders/Revenue/Operating profit)（Million yen）

Orders
Revenue
Cost of expenses
Consulting
Business
Gross profit
SG&A, etc.
Operating profit
Orders
Revenue
Cost of expenses
Urban & Spatial
Development Business Gross profit
SG&A, etc.
Operating profit
Orders
Revenue
Cost of expenses
EnergyBusiness
Gross profit
SG&A, etc.
Operating profit

2Q FYE
June 2022 Results(Sales ratio)
29,28528,487100.0%
21,995
77.2%
6,491
22.8%
5,843
20.5%
647
2.3%
(Sales ratio)
14,687
15,538100.0%
9,916
63.8%
5,621
36.2%
5,066
32.6%
555
3.6%
(Sales ratio)
6,247
8,565
100.0%
5,981
69.8%
2,583
30.2%
1,647
19.2%
936
10.9%

2Q FYE
June 2023 Results(Sales ratio)
29,70833,042100.0%
25,181
76.2%
7,861
23.8%
8,081
24.5%
-219
19,770(Sales ratio)

16,39910,534
5,865
5,666
198
9,418
8,577
6,363
2,213
165
2,047

100.0%
64.2%
35.8%
34.6%
1.2%
(Sales ratio)

100.0%
74.2%
25.8%
1.9%
23.9%

YoY Change
Amount%423
101.4%
4,555
116.0%
3,185
114.5%
1,370
121.1%
2,237
138.3%-867
5,083
134.6%
861
105.5%
617
106.2%
243
104.3%
600
111.8%
-356
35.8%
3,170
150.7%
12
100.1%
382
106.4%-369
85.7%-1,48110.1%
1,111
218.7%
7

Results by Business Segment: Consulting Business
Progress status in the first half
◼ Orders: Although they were sluggish in Japan due to the front loading of orders in the first half as a result of early execution of the budget, they increased year-on-year due tooverseas orders for the Indian bullet train, etc.
◼ Revenue: Revenue increased due to steady progress in domestic transportation and environmental sectors, and projects in the transportation sector in South and Southeast Asia.
◼ Operating profit: Overseas, profit decreased due to higher costs such as travel expenses, and losses from the return of VAT (Value Added Tax) from a small hydropower project inIndonesia.

Points for the second half
◼ In Japan, the government is expanding national resilience projects and defense-related infrastructure projects in line with the public works budget, while overseas,
strategic order activities are being implemented based on the production system in response to orders associated with the expansion of the general account ODA
budget.
◼ In order to improve productivity and ensure quality and safety, we will promote initiatives to improve the quality of our products through design checks and thoroughimplementation of quality improvement measures by professional organizations.

■Orders・Revenue■Operating profit (Million yen)

(Million yen)

32,949OrdersOrders
Revenue
Revenue

647

33,042
29,28528,487■Outstanding orders (Million yen)
159,308

29,70824,714

127,860

133,141

22/6 2Q

23/6 2Q-219-1,638
21/6 2Q
21/6 2Q

22/6 2Q

23/6 2Q*Results for 2Q of FYE June 2021 in the graph are approximate figures excluding those for the former Tamano Consultants Co., Ltd.

22/6 2Q

23/6 2Q

21/6 2Q

8

Results by Business Segment: Urban & Spatial Development Business
Progress status in the first half
◼ Orders: Large-scale orders for BDP in the UK and large-scale housing orders for Quadrangle in Canada contributed to a year-on-year increase.
◼ Revenue: Sales increased due to strong progress of on-hand orders with BDP and depreciation of the yen.
◼ Operating profit: Decreased due to increased labor costs and general administrative expenses in BDP’s business activities, the impact of inflation, and an increase
related to the construction of infrastructure for expanding business for both BDP and NKUrban.

Points for the second half
◼ In the UK, we will continue to take orders and implement measures as we assess business changes such as the impact of inflation. For projects outside the UK, we
will focus on business acquisition by reinforcing local leader-class personnel.
◼ In order to secure orders and sales in Japan, we will actively bid for proposals and use comprehensive evaluation bidding methods in the public sector.
NK Urban
BDP■Orders・Revenue(Million yen)

12,764

14,687

6,527

5,978

15,53816,3997,316

21/6
2Q Orders

8,709

31,626296

25,848555

729
10,025

12,454

22/6
2Q Orders

22/6
2Q
Revenue

23/6
2Q Orders

NipponKoei Urban SpaceNK Urban

33,302
10,718

9,951
628
198

10,717

23/6
2Q
Revenue

9,744

BDP

860
21,881

22,584

22/6 2Q

23/6 2Q

15,897
-305

21/6
2Q
Revenue(Million yen)

1,025

5,682

5,513

■Outstanding orders

Total

6,173

6,591

BDP

(Million yen)

19,77014,5678,040

NK UrbanNipponKoei Urban Space■Operating profit-430
21/6 2Q

21/6 2Q

22/6 2Q* The actual exchange rate in 2Q of FYE June 30, 2023: ￡1=163.91 yen (the assumed exchange rate for FYE June 30, 2023: ￡1= 154.00 yen)
* Results for 2Q of FYE June 2021 in the graph are approximate figures including those for the former Tamano Consultants Co., Ltd.

23/6 2Q

9

Results by Business Segment: Energy Business
Progress status in the first half
◼ Orders: Increase year-on-year due to strong orders in the Power Construction Division and large private-sector orders in the Plant Division, which remained at a higher level
than usual.
◼ Revenue: Remained at the same level compared to the same period for the previous year due to a decrease in the number of orders for dam monitoring and control systemprojects in the Manufacturing Division and longer delivery times for parts, despite on-hand projects such as large-scale renovation of power plants, which were ordered bygovernment agencies, progressing as planned.
◼ Operating profit: While profits were sluggish due to decreased sales in the Manufacturing Division, operating profit increased due to the recording of the gain on the sale ofshares of PT.ARKORA HYDRO, which was an affiliated company of the Company, and the gain on investment into securities (+2 billion yen).

Points for the second half
(Millions of progressyen)◼ Thoroughmanagement for order receiving work and incoming shipments in response to long delivery times for materials in the Manufacturing Division. Promote
cost reduction by improving work efficiency and reviewing specifications.
◼ Aim for an early start in the design of projects and early acceptance of pre-contract projects.

■Orders・Revenue■Operating profit (Million yen)

(Million yen)

8,565

OrdersOrders(Unit: Millions of yen)

*Initial announcement7,379
Revenue
Revenueplan 6,270■Outstanding orders (Million yen)
2,047

9,418
8,577

25,831
22,492

22,593

21/6 2Q

22/6 2Q

6,247
936

▲ 70

21/6 2Q

22/6 2Q

23/6 2Q

21/6 2Q

22/6 2Q

23/6 2Q

23/6 2Q

102FYE June 2023 Forecast(From July 2022 to June 2023 )FYE June 2023 Forecast
Orders, revenue and profits increased from the previous fiscal year, and there are no changes to the revenue or profit
growth plans for any segment.
(Million 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

FYE 2022/6
Results
131,166
84,55132,147
14,343
130,674
75,00036,091
18,799
783
9,065
7,971
2,599
1,290
-2,7966,579
8.8%

FYE 2023/6
Plan
140,000
85,00040,00016,000145,000
81,50040,00022,5001,000
11,300
9,200
2,800
2,400
-3,1006,700
8.5%

YoY Change
Amount

%

8,833
448
7,852
1,656
14,325
6,499
3,908
3,700
216
2,234
1,228
200
1,109
-303
120
-0.3%

* Nippon Koei Urban Space Co., Ltd. (established by consolidating former Tamano Consultants Co., Ltd. and the Urban & Spatial Development Business of Nippon Koei), its subsidiary Tamano Ecost Co., Ltd.
and our consolidated subsidiary Nakaze Kamp Co., Ltd. changed their segment classification from the “Consulting Business” to the “Urban & Spatial Development Business” from the fiscal year ending June
2023. Therefore, the segment information for the fiscal year ending June 2022 is provided based on the new reportable segment classification.

106.7%
100.5%
124.4%
111.6%
111.0%
108.7%
110.8%
119.7%
127.7%
124.6%
115.4%
107.7%
186.0%
101.8%

12

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

3

Medium-term Management Plan (July 2021 to June 2024)
Enhancing resilience of the Nippon Koei Group Building Resilience 2024
■Revenue (Billion yen) Profit margin（%）

Three Resilience Measures
Resilience policy 1

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

Current
Term

Invest toward medium- andlong-term growth while
improving performance

180,000
160,000
140,000

1,306

1,550

1,450

25.0%

120,000

20.0%

100,000

Formulation of measures linked to seven materialities

15.0%

80,00060,000

6.9%

7.8%

7.4%

Business axis

40,000Regional axis

Strengthen business and regionalaxes to establish brand quality
throughout the organization

30.0%

10.0%
5.0%

20,000
0

0.0%

22/6
Results

23/6
Plan

24/6
Mid-term plan

Consulting

Urban & Spatial Development

EnergyOther

Operating profit margin

14

Resilience policy 1:Boosting business through three independent domains- Consulting Business
Policies for
FYE June 2023 (2nd Year)

Develop new services by using new technologies and expand business by utilizing co-creation partners.
Strong dam restoration business, acquired co-creation partners such as ASAP, and proposed new technologies to overseas customers,such as Bhutan.

23/6 (2nd Year) 2Q Results
Segment targets in theMedium-termManagement Plan

Key strategies &Initiative policy for FYE 23/6

FYE23/6 (2nd Year) 2Q Progress

Evaluation-⚫ Integrated management of domestic, overseas andresearch institutes⚫ Deliver exceptional technology and quality for global
markets◼ Revenue up 16% year-on-year, profit turning
negative◼ Enhancing training and support for hybrid personnel🌤◼ Strategic order taking activities against abooming market environment◼ Efficient order and production activities

Advancement and global
deployment of disasterprevention and mitigation
technologies

M1⚫ Development and renewal of infrastructure to protect
people's lives⚫ Data utilization that contributes to people's peace ofmind◼ Expanding dam restoration and▶ P.16new dam projects◼ Trialing monitoring technology for bridges in Bhutan☀◼ Conduct nationwide guidance examinations
and practical training sessions◼ Review organization for dealing with overseas
dam projects

Expansion oftransportation-related
businesses

M2
M3⚫ Strengthening of intercity transportation networks⚫ Promotion of next-generation mobility data utilization intransportation services◼ Received orders for Indian high-speed rail project◼ Dhaka TOD, Panama TOD projects underway◼ Acquired ASAP☀

◼ Continue developing system for railway
projects and study the construction of business
schemes◼ ASAP begin participating in the projectM4⚫ Measures against global warming by utilizing newtechnology⚫ Support for sustainable business activities throughrenewable and new energy sources, among others◼ Demonstrating diagnostic tools for SDGs in multiple
municipalities, receiving orders for tool creation
support◼ Promoting research and development such as forest
monitoring and identification of ocean plastics using
satellites, AI, and drones🌤◼ Continue cooperation between headquarters
and branch offices for SDGs-related services◼ Stakeholder discussions to form nextgeneration projects that utilize advanced
technologies

M1-4⚫ Support new infrastructure management practices(comprehensive management, PPP, AI inspection anddiagnosis)⚫ Accumulation of management technologies◼ Proposals and discussions on feasibility regarding theuse of new technologies in defense projects

🌤◼ Consider feasibility of introduction for multiple
projects, technical proposals/technology sales
for other defense facilities

Actual segment sales
increased by 1.3 times

Promote decarbonizationcontributed services

Full-scale development of
the management field

Materialities■Business activities’ materialities M1:Infrastructure development to protect safe and secure living, M2: Develop of smart city, M3: Creation of attractive cities,
M4:Challenge to decarbonization

FYE23/6 Second Half Actions

15

[Topic] Consulting Business: Advancement and Global Expansion of Disaster
Prevention and Mitigation Technologies
Expanding dam restoration and new dam businesses◼ Implementation status of dam
restoration and new dam projects● New● Restoration⚫

Uryu Dam

Projects inprogress⚫

Mikasa Ponbetsu Dam
Shiraigawa Dam

25 total

Satsunaigawa Dam
Komagome Dam
Nanma Dam
Toga DamJapan’s first restoration project raising a hybrid gravity
concrete dam and rockfill dam
Work is being carried out through inter-departmental
collaboration (dam design, geology, geotechnical engineering,
central research laboratory)

Shinmaruyama Dam

Naruse Dam⚫

Narusegawa Dam⚫

Sengosawa Dam
Murayama Upper Reservoir

Daidogawa Dam
Hikihara Dam

Construction

One of the tallest raises for a large multipurpose dam in Japan(raised height: 20.2 m).
A technologically advanced dam unprecedented in Japan interms of design and construction method, in which large-scaleraising work will be carried out by moving the dam downstream
while maintaining the functions of the Maruyama Dam.

Mishima Dam

Okouchigawa Dam

Tenryugawa Dam
Honmyogawa Dam

Shitara Dam
Shinmaruyama Dam■ Advantages and future developments✓

Kominono Dam

Nomura Dam

Survey/design

Shijushida Dam

Susobana River Basin Dam

Kawabegawa Dam

Shijushida Dam

Asahigawa Middle
Upstream Dam✓✓

Leverage domestic achievements and technologies to expand to overseas dam andpower generation projects with great potential
Technological development through fusion of traditional and new technologies
Technical succession by senior engineers

Maintain the No. 1 share in domestic dam restoration business, contribute to national resilience and river basin
flood control, and promote overseas expansion
16

Resilience policy 1: Boosting business through three independent domains - Urban & Spatial Development
Business
Policies for
FYE June 2023 (2nd Year)

Strengthen integrated operations within the segment and promote joint orders. BDP entered the North American market.
Orders for transportation-related collaborations, including development around Indian high-speed rail stations, have progressed.
BDP has started to expand outside the UK, including in North America.

23/6 (2nd Year) 2Q Results
Segment targets in themedium-term
management plan

Segment sales grow twice

Key strategies &Initiative policy for FYE 23/6

Materialities-⚫
Building smart city projects inconsideration of
decarbonization, safety andsecurity

M2⚫
⚫

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

BDP ‘s market expansion

⚫

M3

M3

⚫

⚫
⚫
⚫

Full-scale development of theurban management field

M3

Evaluation

FYE23/6 Second Half Actions◼ Revenue +5.5% year-on-year◼ On the profit side, higher general administrative
expenses☀◼ Actively bid for proposals and use
comprehensive evaluation bidding methods inthe public sector in order to secure orders andsales in Japan

Utilization of underused or unused land throughpublic-private partnership
Increase transportation related architecture orders,
expand participation in urban development aroundstations
Technology utilization for future◼ Progress made on additional orders for Peru TOD,
Dhaka Line 6, and Metro Manila, as well as
development around Indian high-speed rail
stations◼ Orders related to regional revitalization utilizing
green infrastructure, energy solutions, etc., are on
the way🌤◼ Continue project formation centered ontransportation hubs

Participate in urban (re)development projects inlocal cities and large cities
Strengthening cooperation within the segment◼ Although the project is still in the formation stage,
gradually achieving results such as receiving orders
for large projects (e.g., Tado district integrated
elementary and junior high school development
project)

🌤◼ Continue project meetings by site, strengthen
technical sales

Establish Asian market network
Entry the North American market and expand
business
Participate design of sports stadium◼ Promoting expansion into North America andWestern Asia
◼ Reviewing Asian regional▶ P.18cooperation for NK-BDP🌤◼ Focus on highly reliable international stadiumrelated projects

Acquisition of PM/CM/FM businesses in expanding
domestic building market◼ Receiving orders for new private projects, actively
participating in technical▶ P.19sales and bidding🌤◼ Build information gathering and production
systems for new private sales and public orders⚫ Develop new markets through integrated group
operations within the segments⚫ Develop North American market⚫

FYE23/6 (2nd Year) 2Q Progress■Business activities’ materialities M1:Infrastructure development to protect safe and secure living, M2: Develop of smart city, M3: Creation of attractive cities,
M4:Challenge to decarbonization

17

[Topic] Urban & Spatial Development Business: BDP Market Expansion
Promoting BDP Group’s expansion into markets outside the UK■ BDP Group’s expansion outside the UK
Toronto, Canada•

Due to booming housing demand,
Quadrangle increased staff andrelocated the studio
Won Canada’s most prestigious
architecture award, improving
visibility and increasing orders
Hospital master plan ordered

China
Promote projects such as regional
development and stadium design, taking
advantage of BDP’s strengths
Asia• Focus on sales of development projects
around stations to win NK-BDP orders• Established design center in India

NY
•
•
•

Studio opened in September 2022
Multiple orders received, including
the design of an outdoor brand’s
Broadway flagship store
Aiming to acquire hospitals andcommercial facilities in the sectors
where BDP excels

Middle East•

Aiming to win new orders forinternational-level sports facilities
based on Pattern’s design of two
Qatar World Cup stadiums

BDP market strategy⚫

BDP has had many projects in the UK, and there are issues
influenced by the UK market environment⚫

Construction market is booming in Canada with theacquisition of Quadrangle (2019) and the opening of a New
York office (2022) to expand into North America⚫

Continuing development of cities and towns in Asia
through NK cooperation⚫

Aiming to enter the Middle East using the stadium
development of Pattern, which specializes in sports
facilities, as a foothold■ BDP Group non-UK sales ratio target

2022

2023

2030

27%

33%

40%

Aim to win orders in North America, the Middle East, and Asia to lead the global building industry and stabilize operations
18

[Topic] Urban & Spatial Development Business: Full-scale Expansion into the Urban
Management Sector
Undertaking inner consulting work for coastal land use conversion project,which includes the site of a former steel mill
⚫ The JFE Steel East Japan Works (Keihin area) located in Ogishima, Kawasaki, is scheduled to suspend its blast furnace operation in September 2023.
⚫ As an inner consultant of JFE Holdings, NK Group assisted in the study of land use for the site (Ogishima area, about 222 ha).
⚫ The project also targets the JFE-owned Minamiwatarida area (about 52 ha), which aims for a cross-segment response to contribute to the local
community through land use.
■ Areas covered■ Project structure
JFE Holdings

Nippon Koei Group
Kawasaki Station

Minamiwatarida
Kawasaki

Yokohama Station

Ogishima

Consulting■ Schedule

Urban & Spatial
Development

FY

Inner
consultant

Keihin Marine Land Use
Study Group

Energy21▲
NKG
Received order

FY23

FY27

▲
Announcement of
Ogishima
development policy▲
Minamiwatarida
partially opened to
public

FY30~▲
Ogishima
partially opened to
publicRespond to the diverse technological needs of customers, including those in the private sector,
in order to create disaster-resistant cities
19

Resilience policy 1: Boosting business through three independent domains- Energy Business
Establish a foundation for improving production efficiency and quality of core products. Implement specific measures to respond to changes in thedomestic energy market.
Progress has been made in the energy management business in both Europe and Japan. Strengthening production of mainstay products is an
ongoing issue.

Policies for
FYE June 2023 (2nd Year)

23/6 (2nd Year) 2Q Results
Segment targets in theMedium-termManagement Plan

Segment sales increased by
1.5 times

Materialities

Key strategies &Initiative policy for FYE 23/6

FYE23/6 (2nd Year) 2Q Progress-

Building a foundation for the Energy BusinessStabilization of manufacturing business bystrengthening core products and developing
new products◼ Strong orders due to the acquisition of orders
for hydroelectric power generation andsubstations◼ Revenue was flat year-on-year⚫
Establish a foundation for
power generation andenergy managementbusiness

⚫

M1
M4

⚫
⚫

⚫
Strengthen manufacture
core products and develop
new products

M1

⚫
⚫

Improvement of disaster prevention
capabilities of existing power systems
Entry into the renewable energy
aggregator business and support for RE
100
Expansion of the operation of in-househydroelectric power generation
Stabilize energy management business inJapan and develop in Asia

◼ ENEOS energy base orders▶ P.21-22◼ European energy storage
project progressing◼ Entry into supply-demand adjustment market
delayed to July 2023, FIP conversion of own
hydropower plants postponed to April 2023

Renewal of aging power facilities andintroduction of digital technology
Improve profitability and promotecommercialization of new technology
Strengthening mobile networks andmeeting ICT utilization needs overseas◼ Started making Fukushima Plant a smart
factory, completed study, partially introduced◼ Continuing orders for the Ministry of Internal
Affairs and Communications’ Thailand smart
factory demonstrations

Evaluation

FYE23/6 Second Half Actions

🌤◼ Thorough progress management for order
receiving work and incoming shipments in
response to long delivery times for materials in
the Manufacturing Division🌤◼ Reliably implement domestic aggregation
business◼ Begin operation of Belgium energy storage
project◼ Aim to complete UK energy storage project◼ Commence operations for development of
supply and demand company (BRP)🌤◼ Study and discuss development specifications
with major electric power companies◼ Study and verify the transition to smart
factories for the introduction of inventory
management and product information systems◼ Develop new customers and partners■Business activities’ materialities M1:Infrastructure development to protect safe and secure living, M2: Develop of smart city, M3: Creation of attractive cities,
M4:Challenge to decarbonization

20

[Topic] Energy Business: Building a Foundation for Power Generation and Energy
Management Business
ENEOS next-generation energy supply base construction (EPC), energy management system construction⚫ The largest energy management facility operated by NK Group in Japan (site area: about 42,000 m2).
⚫ From April 2024 (planned), locally produced electricity derived from renewable energy will be supplied to nearby public facilities
and is expected to contribute to local disaster prevention and mitigation in the event of a disaster.
◼ Image of energy supply system◼ Realize integrated collaboration within the energy segment andcollaboration within the Group
Facility

Facility Overview

Responsible Segment/Division

Civil engineering work

Earthworks, retaining wall works, paving work,stairway works, water supply works, drainage
works, intrusion prevention works, etc.

Energy (Plant)
Nippon Koei Urban SpaceConstruction work

Energy management center
RC single-story building
Total floor space: 189 m2

Energy (Plant)
Nippon Koei Urban Space

Mega solar

3,600kW

Energy (Plant)

Large storage batteries

3,850kW 7,700kWh

Energy (P&D)

Power receiving andtransforming equipment

6.6 kV x 2 lines receiving, 7,720 kW (maximum)

Energy (Plant)

Private line

6.6 kV high voltage distribution line
(On premises, for customers)

Energy (Plant)

CEMS

Energy (P&D)

Expanding the domestic energy management business through integrated cooperation within the Group and the utilization of conventional powertransmission and distribution technology and European storage know-how
21

[Topic] Energy Business: Building Foundation for Power Generation and Energy
Management Business
Ancillary service launched in Belgian Ruien project⚫ From January 2023, we connected to the electric power system in Belgium and started an electricity supply and demand adjustment service (ancillary
service).
⚫ It is one of the largest battery systems to be connected to the country’s power grid, and the first to achieve a long charge/discharge time of four hours.
■ View of Ruien’s 25 MW/100 MWh storage location (about 0.5 ha)■ Schedule for ongoing projects

Project

FYE22/6

Ruien

Nov. 2021
Beganconstruction

UK Tollgate

Jan. 2022 Began
construction

UK Cuxton

Jan. 2022 Start of construction(25MW/100MWh)(49.5MW/64.5MWh)(49.5MW/64.5MWh)

Expansion into
the JapanesemarketFYE23/6

FYE24/6

FYE25/6

FYE26/6

Jan. 2023 Start of operation (Services provided:frequency control, arbitrage, imbalance adjustment
transaction, capacity market)
Spring 2023 Operation planned to start*Construction expected to be delayed from originalschedule★ April 2022 FIP system/aggregation
license system established

Operation start schedulebeing adjusted★ 2024 Capacity market/supply anddemand adjustment market primaryand secondary★ Aggregation and retail licenseacquisition

Accumulate know-how of ancillary services in Europe, and leading and accelerating deployment to Japan and Asia market.
22

Resilience policy 2: Group management structure that realizes matrix management acrossbusinesses and regions
Policies for
FYE June 2023 (2nd Year)

Prepare for transition to HD organization, strengthen orders for regional management and domestic strategies, consider
working styles under work-from-home, and promote diversity.

23/6 (2nd Year) 2Q Progress

Strengthening risk management by introducing an investment deal system and establishing an information security committee.

Medium-termManagement
Plan targets

Organizational
strategy

Sales strategy

HR and technology
strategy

Key strategies &Initiative policy for FYE 23/6

FYE23/6 (2nd Year) 2Q Progress

M5◼ Various restructuring procedures for HD,
operating companies, and managementcompanies◼ Strengthening group financial functions◼ Sustainability measures (climate change,
strengthening human rights response)◼ Prepared HD, operating companies, andmanagement companies for operation◼ Verified optimal consolidated capital
structure◼ Prepared for introduction of new
investment monitoring system

M5⚫ Formulating basic policies, establishing
operational structure and thorough risk
management for regional management⚫ Creating new business areas to meet local needs(using business incubation functions)◼ Local task force set up for Asian expansionof renewable energy/storage consulting
business◼ Incubation investment (1 project) inprogress

M6
M7⚫ Consideration for flexible working styles⚫ Promoting diversity and inclusion (Increase thepercentage of female managers and promote theemployment of people with disabilities)◼ Updated telework guidelines◼ Considerations for elimination of disparities,
management support for special
subsidiaries◼ Information security committee established

Materialities

FYE23/6 Second Half Actions

Evaluation

specific rules for the organization and🌤 ◼ Establish
regulations after the spin-off🌤🌤◼ Full-scale activities and acquisition of orders fortask force on renewable energy/storage◼ Consider measures for exchange/information
sharing between sites after spin-off▶ P.24◼ Consider measures based on results ofmonitoring satellite and headquarters use◼ Use professional positions■Business activities’ materialities M1:Infrastructure development to protect safe and secure living, M2: Develop of smart city, M3: Creation of attractive cities,
M4:Challenge to decarbonization

23

[Topic] Sales Strategy - Matrix Management
Regional targets for the realization of business and regional matrix management■Consulting ■Urban & Spatial Development ■Energy■ FY23 target orders by region/2Q progress rate
12Europe, Middle East, Central
Asia, North Africa

Plan

Japan

178

Progress rate

■ -billion yen

■ 55%

165

■ 38%
■ 38%

Progress rate

Americas
Progress rate

■ 49%
■ 61%
■ Total 54%

50

Plan

■ -

108

Total 23%

billion yen

Order trends and initiatives

■ 89%
■ 70%
■ 0%

Sub-Saharan Africa

Total 88%

Progress rate

■ Total 9%

Plan

40
billion yen
40

Plan

Plan

160
billion yen
134⚫ The results of regional
management are showing, witha higher progress rate in South
Asia due to the Indian HighSpeed Rail in Consulting and in
the Americas due to the strong
performance of Quadrangle in
Urban & Spatial Development

830
billion yen
176

Total 42%

Progress rate

58

■ 9%
■ 10%

■ 61%

South Asia

⚫ Appoint regional supervisors andconduct monitoring

158

505

Southeast Asia 11
Progress rate

■ 31%
■ 27%

Plan

■ 520%

billion yen

Total 31%85

⚫ In order to ensure smoothbusiness operations after theconversion to HD in the next
fiscal year, we are reviewing
regional classifications,formulating regular regional
meetings, etc.

*Before consolidation offsets, excluding small subsidiaries*23/6 order plan includes “Others” in addition to the above six areas

Optimize the Group’s overall business portfolio and promote Think Globally, Act Locally24Resilience policy 3: Embodying the NKG brand and NKG quality
Policies for
FYE June 2023 (2nd Year)

Design systems for the advancement of professional human resources and accelerate DX promotion.
Strengthened rules development and internal penetration efforts for BIM and DX. New technology development also performed
well.

23/6 (2nd Year) 2Q Progress
Medium-termManagement Plan
targets

Materialities

Key strategies &Initiative policy for FYE 23/6

FYE23/6 (2nd Year) 2Q Progress

M7◼ Digital business promotion, digital technology
development, productivity innovation, DX
human resource development◼ Building the NKG Global Academy◼ Launch BIM internal qualification▶ P.26system◼ Formulate DX vision and hold regular DX briefings◼ Received orders for 3D model-related work and smart
city projects in the disaster prevention sector◼ Technological development related to the metaverse

Human resource
development andtechnologicaldevelopment

Evaluation

FYE23/6 Second Half Actions☀◼ Realize and schedule DX human resources development◼ Accumulate know-how and expand laterally in projects
utilizing advanced technologies◼ Management Activities M5：Strengthening corporate governance M6：A rewarding work environment where human rights are respected M7：Development of human resources and technology

BIM/CIM enhancement
180

DX enhancement⚫ Enhance response ahead of adoption of BIM/CIM
principles

Number of BIM/CIM related orders (non160 consolidated)
140

156
137

⚫ Analysis of NJSS (data bidding information bulletin
service for governments, local governments, public
institutions, organizations, and universities)⚫ We have the largest market share for DX orders in theindustry

120
80
60
40

53

62

31

20
0

17/6

18/6

19/6

20/6

⚫ Develop technology around metaverse and enhancevisualization technology (user experience)

NJSS bidder share

87

100

New technology development

21/6

22/6

Nippon Koei

Competitor
A

Competitor
B

4.9%

1.9%

0.6%
25

[Topic] Human Resource Development and Technological Development
Established and launched BIM/CIM internal qualification system⚫ An internal qualification system was established with the aim of quickly disseminating and deploying BIM/CIM in the company andimproving the motivation of employees.
⚫ All technical employees handling consulting are eligible for the training.
Flow for Acquiring Qualifications
Role

CAD operator

Modeler(Model Creation)

Engineer inchargeManagement/
verificationengineer

Beginner(Basic level)

Beginner:
Modeler

Beginner:
ModelerIntermediate(Practical level)

Overview

Advanced(Manager)⚫ Since roles differ among CAD operators,
engineers in charge, andmanagement/verification engineers,certification is based on the role andacquisition flows have been set

Intermediate:
Modeler

Beginner:
ApplicatorIntermediate:
Chief
ApplicatorIntermediate:
Specialist

Beginner:
ApplicatorIntermediate:
Coordinator 1

Intermediate:
Coordinator 2⚫ Qualification categories are Beginner,
Intermediate, and Advanced, with a stepup system⚫ Beginner qualification started in October
2022, Intermediate and Advanced
qualifications begin in phases from 2023

Applicator(Model Utilization)
Advanced:Manager

Advanced:
Expert26

Dividend Payout Ratio⚫

⚫
⚫

The dividend payout ratio targets around 30%, and the company will continue to maintain stable dividends and enhance shareholder returns according
to profit levels.
Acquire/cancel treasury stock when there is a good opportunity to achieve an appropriate total return ratio.
The dividend for FYE June 2023 continued at 125 yen per share.
Performance of growth investments during the period of themedium-term plan (as of FY23 2Q/million yen)

Investment Policy

Strategy
investment• Growth investment (includingM&A): Approx. ¥32 billion inthree years
Fund
procurement

Securing financial
soundness• Keep the own capital ratio at
40% even in concentrated
investment period of tosecure financial soundness.

SustainablegrowthDetails

Total

Consulting

Satellite operations related, ASAP
(railway system company), concessions,
etc.

1,688

Urban & Spatial
Development

Park-PFI related

EnergyEuropean energy storage project related

6,166

Other

Asian transportation electronic payment
service affiliate

54

Total

Reinvestment
Repayment of
external funds

Shareholder
return10

7,918

Purchase oftreasurysharesCash flows

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

27

Transition to a Holding Company Structure
Deepen group management from a medium- to long-term perspective and transition to a pure holding company
structure to ensure future growthIntegrated Design & Engineering Holdings Co., Ltd.
Purpose of transition to holding
company structure

1

Strengthening governance andaccelerating decision-making◼ Schedule

July 2022

September
2022

2

Promoting autonomy andcooperation

3
Ensuring diversity◼ Group structure after reorganization
Established Nippon Koei Urban Space Co., Ltd.,
integrating Tamano Consultants Co., Ltd., andNippon Koei’s Urban & Spatial Development
Business
Shareholders meeting resolution for stocktransfer plan and amendment to Articles ofIncorporation

July 2023

Establish ID&E Holdings
Spin off Nippon Koei Business Partners Co., Ltd.

October 2023

Spin off Nippon Koei Energy Solution Co., Ltd.

Integrated
Design &Engineering
Holdings

Nippon Koei Co., Ltd.（consulting business）
Nippon Koei Business Partners Co, Ltd.（corporate management）

Spin off inJuly 2023

Nippon Koei Urban Space Co., Ltd.(urban and spatial business)
Establish in
July 2023

BDP HD (urban and spatial business)
Nippon Koei Energy Solution Co., Ltd.
(energy business)

Spin off in
October
2023

Oher Main subsidiaries
28

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)
Before WWII, Yutaka Kubota was engaged in the development of hydropower
resources (Sup'ung Dam 700 MW) in the Korean Peninsula, one of the largest
projects at the time.

◼ 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

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

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

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

Consolidated revenue and operating profit (millions

Net sales by region
0%6%Europe, the Middle East,
Central Asia, North Africa
8%Southeast Asia, East Asia,
Oceania
9%

Americas
Sub-Saharan Africa
Other

Revenueof yen)Japan

South Asia

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

150,000

4%

100,000
50,00059%

14%101,338

106,023

108,589

112,214

117,859

4,723

5,464

7,128
5,110

145,000

20,00011,30081,8656,561

130,674

Operating profit

9,065

10,000

4,590

0

0
16/6

17/6

18/6

19/6

20/6

21/6

22/6

*Figures up to FYE June 30, 2020, are based on Japanese GAAP, and those fromFYE June 30, 2021, are based on IFRS.

23/6(Plan)(計画)
31

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 withthe development and maintenance of infrastructureand safety measures, for the state, local governments,
overseas government institutions, private firms andothers. In response to increasingly complex social
issues, construction consultants are required morethen ever to demonstrate their high level of expertise,technical capabilities, and comprehensive abilities.
Nippon Koei supports social infrastructure byundertaking 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, theCompany made BDP, a UK-based architectural design
company, a subsidiary in March 2016 and madeQuadrangle, a Canadian firm, a subsidiary in February
2019. By incorporating the architectural know-how ofboth firms, we are engaging to create urban & spatial
development that accommodates the needs of the newera.

We provide services for power and electric facilities
in Japan and abroad in all phases from planning andresearch to design, construction, manufacturing ofequipment and maintenance.
In addition, the world is advancing toward
decarbonization, and the renewable energy-related
businesses are going through major changes.
Accordingly, we are focusing on services for electric
power distribution networks to stably manage andcontrol energy provided from various power sources
with the use of battery 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 by integrating theconventional domestic consulting and international consulting businesses, the “Energy Business” encompassing the power engineering and energy businesses, andthe “Urban & Spatial Development Business.”

32

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

Construction
Competitive bids
Providing proposals

Bid evaluation and support for
supplier selection

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

Domestic

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

Maintenance and Management（NK）

Overseas

Consultant (NK)Construction supervision and management (NK)

Maintenance and Management（NK)

Construction (general contractors, etc.)

Example: Chronic traffic congestion problems in Region A
Planning

DesignProvide engineering services for studies,planning, design and other activities• 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 (supervisionand management)(General contractors, manufacturers, etc.)
Execution of construction work according to thespecifications agreed upon by the contractee and the civilengineering consulting firm

Maintenance andManagement
Inspection,
maintenance andageing measures
Completion of road
Provide as a service toresidents
33

Strengths of the Nippon Koei Group(1) Sustainable business model grows with society(Win-win relationship between society & Nippon Koei)

Transforming to meet market demands(2) Japan's leading engineering consulting firm
(Business domains, technologies, and human resources)

Comprehensive
strength

Capable of solving sophisticated &complex issues

Human Resources Largest number of professional engineers
in industry

Commercialize solutions to social problems

Technology

In-house R&D facilities and patents

Consolidated net sales

Business over

Orders over

¥130.6 billion

160 countries

85

1,743

9,000 per year

Patents

Professional engineers*As of June 2022

Coping with changing times, achieving sustainable business expansion and profitability growth.
34

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)

35

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

MissionVisionMake the world abetter place

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

Values

Tackle your problems withsincerity and the road ahead
shall be clear

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

36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

Operating profit

250 billion yen

25 billion yen

Working together Part 1

Reorganizing business Measurements◼ New development in three businessdomains

Operating profit
margin

10%

ROE

15%

Working together Part 2

Working together Part 3

Promoting autonomy & collaboration,
establishing a one-stop system

Manifesting the NKG brand and NKG
quality◼ Achievement of one –stop services
and flexible business management◼ Transitioning to a holding company forautonomy and collaboration, faster
decision making, and coexistence ofdiversity◼ Full-scale expansion into business
management◼ Implementation of matrix management
across businesses and regions◼ Developing world-class humanresources in conjunction with ourtechnology strategy◼ Realizing digital transformation (DX)

37

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

0

1st STEP
Building Resilience
2024

Revenue: 117.8 billion yen

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

00

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

FYE 21/6 Results(IFRS)

0

0

New Medium-termManagement Plan
Transformation(billion-yen)

Operating profit margin: 6%

Set firm ground for working
together in creating a sustainable
future through implementing threeresilience policies

ROE: 6.7%

FYE 30/6 Target(IFRS)Breakthrough

Revenue: 250 billion yen

Expansion

3rd STEP

Operating profit margin:10%

2nd STEP

Build the foundation forbecoming a 100-yearcompany

Accelerate expansion
into new businesses andnew markets

ROE: 15%

1,980

1,550

818

9%

7%
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
38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 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 to protect
safe living

Development of
infrastructure where all
people can freely interact
and play an active role
Creation of attractive
cities where a diversity ofpeople and industries areconcentrated
Conservation of the global
environment by achieving
a decarbonized society

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 of both
hardware (tangible elements such as facilities and equipment) andsoftware (intangible elements such as human resources andtechnology).

•

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

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

••

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

39

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 the world
and contribute to achieving the sustainable development goals (SDGs) while driving these initiatives to also increase
corporate value of the Company.

Materiality

Key relevant SDGs

Examples of initiatives for each materiality

Strengthening
corporate
governance••

Review institutional design.
Reinforce compliance activities.

A rewarding work
environment
where humanrights arerespected•

Further promote well-being management.

•

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

Development of
human resources
and technology•

40Medium-term Management Plan Building Resilience 2024 - Numerical Targets (IFRS)(Million yen)FYE June 2021
ResultsFYE June 2024 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%

1.4%

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 %

41

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.

42

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
2.5

2.0

1.6

1.0

30,0003.2

106,931
97,7695.0

89,838
6.0

6.1

6.0

6.1

6.1

6.1

81,33770,045FY2017FY2018FY2019FY2020

FY2021

88,51090,0000.0

98,49175,48475,24574,52185,00081,50080,09820,00072,59368,007

62,848FY202260,000Initial ODA Budget in the General Account (billion yen)
5,800

5,680
5,600

5,519

5,527

5,538

5,566

5,612

5,610

8,982

9,200

FYE
22/6

FYE
23/6
（Plan）

10,000

7,981
6,928

30,000
5,185

5,831

5,457

FYE
19/6

FYE
20/6

4,112

5,400

5,200
0
5,000
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

0
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.

43

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

Revenue

Operating profit
8,000

176.3
40,000 40,000

40,000150

7,000

36,091
126.4

6,000

32,14730,000100

5,000

20,51020,000

46.1

50

36.0

32.4

29.9

24.7

19.2
5.6
0

14,347
13,4605.4

15,35918,16017,874

13,04012,855

21,457
20,274

2,266

4,000

2,599

2,800

2,000

10,000

917

0

3,000

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

1,000

FYE
21/6

FYE
22/6

FYE
23/6
(Plan)

044

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

25,0002,000

10,00022,500

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

16,00014,3436,000

10,000

4,000

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

*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
22/6

FYE
23/6
（Plan）

045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.