SEM VALUE【Materials for Investor Briefing】
FY2022 1st Half Results

and Annual Forecasts

November 24, 2022
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

SEM VALUE

Agenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 2 -SEM VALUE

Agenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 3 -1-1. Summary of FY2021 1st Half Results
SEM VALUE◇Explanation of Business Results

Orders received, sales amount, and amount of works on hand reached a record high for the 1st half.
[Orders received and Sales amount] increase year on year (YoY).Orders received and sales amountof large-scale works such as projects for data centers, logistics warehouses, and plants remained firm.
[Operating profit and Ordinary income] increase year on year (YoY).An increase in sales amountoffset an increase in expenses for work style reforms and improvement of the workplace environment.

◇FY2022 1st Half Results
FY2021 1H(¥bn)

Actual ①

Growth③-①

FY2022 1H
Actual③

Plan ②Difference③-②

Orders Received

92.2

-98.9

-6.7

7.3%

Sales Amount

72.9

79.0

81.5

2.5

8.6

11.9%

Operating Profit
Margin

4.99
6.9%
5.51

4.80
6.1%
5.20

5.31
6.5%
5.84

0.51
0.4%
0.64

0.32
△0.3%
0.32

6.3%
5.9%

7.6%3.57

6.6%
3.30

7.2%
3.79

0.6%
0.49

△0.4%
0.22

6.2%

4.9%

4.2%

4.6%

0.5%

△0.2%

-116.7

113.8

126.1

12.3

9.5

8.1%

Ordinary Income
MarginNet Income
MarginAmount of works
on hand◇Interim Dividends for FY2022Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

¥43 per share , as forecast at the start of the fiscal year）- 4 -SEM
VALUE
1-2. Sales Amount for FY2021 Results byWorks
TypePower Transmission Works:

Declined YoY as a whole due to large decreases in private sector
demand and the number of FIT projects despite a steady growthin the number of projects for electricity companies.

General Electrical Works:

In Japan: Increased YoY due to a steady progress of large-scale
projects including data centers and logistics warehouses.
Overseas:Increased YoY owing to a progress in large-scale works
including projects for plants, also boosted by the depreciation ofthe yen.
Communication System:Increased YoY due to a steady progressin mobile base station works.
Information & Telecommunication: Increased YoY due toredevelopment projects, etc.

Information &Communication Works:
Facility & HVAC Works:

Sales amount

Increased YoY owing to a progress in plant construction.

(¥bn)

FY20201H

FY2021
1H

FY2022
1H

FY20→21
Growth(%)

FY2022Composition

Power Transmission Works

9.4

8.9

8.2

△8.4%

10.0%

General Electrical Works
Non-consolidated + Japanese
Subsidiaries

41.1

43.3

50.9

17.6%

62.5%

31.3

32.3

35.5

9.9%

43.5%

Overseas Subsidiaries

9.8

11.0

15.4

39.9%

18.9%

Information & Communications Works

11.4

11.3

12.7

12.5%

15.6%

Facility & HVAC Works

4.7

5.1

5.3

3.4%

6.5%

Others*4.1

4.24.4

4.8%

5.4%

70.8

72.9

81.5

11.9%

100.0%TOTAL*Others Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturing and repairs,- 5 -and manufacture and sales of hot water supply systems.

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

SEM VALUE

Agenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 6 -SEM VALUE

2-1. Outlook for FY2022◇Business Environment

Expected demand : Redevelopment projects in the metropolitan areas, data centers, logistics
warehouses, information & communication-related investments for the creation of ICT
environment, investments related to Expo 2025 Osaka, Kansai.
Potential risks : Risk of resurgence of COVID-19, geopolitical risk, the shortage of semiconductors,
delay in the delivery of materials and equipment and price hikes, rapid depreciation of the yen,and the risk of postponement or contraction of capital investment plans arising therefrom.

◇Key Initiatives “Sustainable development through a new growth strategy and comprehensive
strength!”, which is the theme of VISION 24, the new Medium-term Management Plan.

◇Consolidated Forecast for FY2022：Both sales and profits are planned to increase YoY.
(¥bn)(unchanged from the forecast initially announced)

FY2020
Actual2021
Actual2022
ForecastGrowth（％）

VISION24

Orders Received

162.1

179.0

180.0

0.5%

200.0

Sales Amount

154.1

167.6

175.0

4.4%

200.0

Operating Profit
Margin

11.32
7.3%

13.01
7.8%

13.10
7.5%

0.7%
-Ordinary IncomeMargin

11.94
7.7%

13.90
8.3%

14.00
8.0%

0.7%
-Net Income

8.05
5.2%

9.14
5.5%

9.20
5.3%

0.6%
-

◇An annual dividend of ¥86 per share (interim ¥43) is forecast.

15.00
7.5%

(unchanged from the forecast initially announced)Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 7 -

SEM
VALUE
2-2. Sales Amount for FY2022 by Works
TypeWe are planning to increase sales, expecting the potential growth of general electrical works
including overseas businesses, information & communications works, and facility & HVAC works(unchanged from the forecast initially announced)

Sales amount(¥bn)

FY2020

FY2021

FY2022
ForecastGrowthComposition

Power Transmission Works

20.9

20.3

20.0

△1.4%

11.4%

General Electrical Works

87.1

100.7

106.0

5.3%

60.5%

68.1

76.8

79.0

2.8%

45.1%

19.0

23.8

27.0

13.4%

15.4%

Information &Communications Works

27.7

27.5

29.0

5.5%

16.6%

Facility & HVAC Works

10.1

10.6

12.0

13.2%

6.9%

Others*

8.3

8.6

8.0

△6.7%

4.6%

154.1

167.6

175.0

4.4%

100.0%

Non-consolidated +Japanese Subsidiaries
Overseas Subsidiaries

TOTAL*Others Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturing and repairs,
and manufacture and sales of hot water supply systems.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 8 -SEM VALUE

Agenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 9 -3-1. Power Transmission WorksSEM VALUEEnergyProvide high-quality, reliable electric transmission technologies tomeet the needs of customers
Electricity is vital to modern society. Sumitomo Densetsu has a range of experience in theconstruction of the facilities required for the transmission of “electricity,” including overhead andunderground transmission, electrical substations, and electrical power distribution systems. We
are also engaged in the construction of interconnected systems to supply electricity from newenergy facilities, including photovoltaic power stations, wind power stations and hydroelectric
power stations.

For more details, please refer to the link below
https://www.sem.co.jp/english/business/Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 10 -SEM
3-1. Power Transmission Works - Outlook
for VALUE
FY2022
Orders received・Sales amount (¥bn)
22.0
20.9

21.0

20.3
19.8

20.0
19.0

Orders received
Sales amount

20.0

20.0

18.6

18.0
17.0
FY2020

FY2021

FY2022 (Forecast)（unchanged from the forecast initially announced）

We will make efforts for medium-term growth, putting emphasis on surely securing projects forelectricity companies including future demands, as well as receiving orders of investments related
to renewable energies. In FY2022, orders received and sales amount are planned to be at thesame level as the previous year.

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 11 -3-2. General Electrical Works

Environment

Electric

SEM VALUE

Overseas：Provide speedy and high-quality services for electrical systems that are becoming
increasingly important.
Environment：Contribute to the use of energy for a new age, such as solar, storage cell andbiomass systems.
Overseas ：50 years of experience in Southeast Asia. Contributing to the development ofcustomers and regions.
Sumitomo Densetsu has been implementing speedy and high-quality planning, design,construction and maintenance, making use of our high technological capabilities for various
electrical systems (high-voltage, low-voltage, disaster preventive and security). We will meet any
kind of needs based on substantial experience both inside and outside Japan.
ElectricⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 12 -For more details, please refer to the link below
https://www.sem.co.jp/english/business/

3-2. General Electrical Works - Outlookfor FY2022
SEM
VALUE
120.0
100.0Orders received・Sales amount (¥bn)
108.8

93.4

100.7

Orders received
Sales amount

107.0

106.0

27.0

27.0

87.1

80.0
60.0
40.0
20.0

20.6

19.0

26.7

23.8

0.0
Overseas

FY2020

FY2021

FY2022 (Forecast)（unchanged from the forecast initially announced）

Japan :
We will work on receiving orders for redevelopment projects in the Tokyo metropolitan
area /Kansai area, data centers, logistics warehouses, plants, etc. in a well-balanced manner.
The orders for projects related to Expo 2025 Osaka, Kansai are also expected to be received.
Overseas :We will also focus on receiving orders from non-Japanese customers due to concerns over thepotential impact of the rapid depreciation of the yen on the Japanese companies’ investments
in Southeast Asia.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 13 -

SEM VALUE
3-3. Information & Communications Works

Communication
SystemInformation &Telecommunications

Support the establishment of optimal networks using accumulated
know-how

Sumitomo Densetsu provides total engineering services from consultation, system design,
construction and operation to the maintenance of communication/broadcasting infrastructure.
We will continue supporting the ICT society.
As the IT society develops, information networks, which are the infrastructure of the IT society,become more and more important. Sumitomo Densetsu was the first in our industry to make efforts toestablish information networks, and has introduced them in many companies, universities, hospitals,
data centers, etc. We provide optimal systems ranging from design, establishment, and operation tomaintenance, taking advantage of our accumulated know-how.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 14 -For more details, please refer to the link below
https://www.sem.co.jp/english/business/VALUE
3-3. Information & Communications SEM
Works- Outlook for FY2022
Orders received・Sales amount (¥bn)
35.0
32.1

Orders received
Sales amount

31.0

30.0
27.7

29.0

28.8
27.5

25.0

20.0
FY2020

FY2021

FY2022 (Forecast)（unchanged from the forecast initially announced）

While the shortage of semiconductors and other impacts will still
remain, we will put emphasis on receiving orders for redevelopment
projects in the metropolitan areas and projects related to new social
infrastructure businesses. Both orders received and sales amount areplanned to increase YoY.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 15 -3-4. Facility and HVAC WorksSEM VALUE

FacilityandHVAC

Make the environment of buildings and factories more
comfortable and convenient
Sumitomo Densetsu is involved in the planning, construction and maintenanceof plant machines used in various kinds of manufacturing plants, and of airconditioning and plumbing systems in factories, office buildings and hotels. We
secure a sanitary and comfortable environment and improve convenience forproduction and management in buildings and factories used for variouspurposes.

For more details, please refer to the link below
https://www.sem.co.jp/english/business/Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 16 -SEM
VALUE
3-4. Facility and HVAC Works - Outlook
for FY2022
Orders received・Sales amount (¥bn)
15.0

Orders received
Sales amount

14.0
13.1
12.0

10.0

9.7

10.6

10.1

5.0
FY2020

FY2021

FY2022 (Forecast)(unchanged from the forecast initially announced)

We will continue renewal works within the Sumitomo Electric Group while focusing
on order-receiving activities related to office buildings, warehouses, and large
housing complexes. Both orders received and sales amount are planned to increaseYoY.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 17 -

SEM VALUEAgenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 18 -SEM VALUE

4-1. VISION 24 Initiatives[Ideals of the Sumitomo Densetsu Group]

Aim to become a comprehensive engineering enterprise that truly meets theneeds of society through the growth of people and technology[Theme of V24]

Sustainable development through a new growth strategy
and comprehensive strength!
Sumitomo Densetsu as one, enhancement of SEM brand power (safety and security,high quality, reliability, and enterprise value)[Four key measures]

Safety, quality, andcompliancePursue improved customer satisfaction(proposal-based sales capabilities,
capacity, and technical capabilities)

Secure and develop human resources andEnhance enterprise value inanticipation of the future

implement work style reforms

Corporate Philosophy of the Sumitomo Densetsu GroupThe Sumitomo SpiritⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 19 -

SEM VALUE
4-2. Medium-term Management Plan VISION 24 - Numerical
Targets[Consolidated orders received, sales amount, ordinary income, and ordinary income margin]- Growth investment
FY2020 to FY2024 (five years) total ¥20.0 bn- Capital efficiency benchmark
ROE (return on equity): Target 10%- Financial soundness benchmark
Equity ratio: Maintain 50% level- Shareholder returns policy
Dividend payout ratio: Target 40% (FY2024)Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 20 -4-3. Response to Carbon Neutrality SEM VALUE
Establishment of Carbon neutral Promotion Department
On June 1, 2022, the Carbon neutral Promotion Department was established inEngineering Headquarters. Amid the global warming and climate change issues, theworld is moving toward a carbon neutral society, and customers’ needs anddifficulties have been drastically changing. Centering on ZEB planning, support forpromoting photovoltaics (PV), and proposals of energy-saving renewal (E&M), thedepartment will work on research, study, consulting, etc., aiming at synergy effects
across existing businesses and development of business domains, and push ahead
with changing employees’ awareness as a part of environment contribution activities.

Introduction of renewable energies (private transmission line business)
We will provide a one-stop service for responding to needs from investigation anddesign through acquisition of approvals and licenses and constructions in relation
to power transmission lines of wind power stations and photovoltaic power stations.
【Features of the service】
Wind powerstation

Powertransmission line

Substation/Switching station

Substation

Power collection cable
22～66kVⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

Underground transmission cable
22～154kV- 21 -Electricity company system

SEM VALUEAgenda

1. FY2022 1st Half Results
2. FY2022 Forecast
3. Outlook for FY2022 by Works Type
4. Medium-term Management Plan
VISION 24(FY2020 – FY2024)
5. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 22 -5-1. Policy on the Distribution of Profits SEM
to Shareholders
VALUE
Distribute stable dividends well balanced with internal reserves
taking into consideration business results and future business development.
（unchanged from the forecast initially announced）

FY17

FY18

FY19

FY20

FY21

FY22(Forecast)

Net income
Income margin（¥bn）

6.84
4.7%

5.29
3.4%

9.77
5.7%

8.05
5.2%

9.14
5.5%

9.2
5.3%

Dividends pershare (yen)Interim dividend
Year-end dividend(Increase）

50
2228(+6)60
2535(+10)703040(+10)

74
35
39(+4)

863749(+12)8643
43Profit per share(yen)192.34148.73274.67226.22257.43

259.87

Dividend payout
Ratio

26.0%

40.3%

25.5%

32.7%

33.4%

33.2%

ROE

11.2%

7.9%

13.8%

10.3%

10.6%

Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 23 -SEMPayout
VALUE
5-2.Profit and Dividends per Share, and Dividend
Ratio
Dividends have increased for 11 consecutive fiscal years since FY2011Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 24 -SEM VALUE

Notes on Perspective Information

This presentation material is based on currently
available information. Actual results may differ fromforecasts due to a variety of factors.

Inquiries
Corporate Planning Department,
Sumitomo Densetsu Co., Ltd.
Phone: +81-3-3454-7423Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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