【Materials for Investor Briefing 】
FY2022 Results
and Annual Forecasts FY2023

MAY 29, 2023

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

SEM VALUEAgenda

１．FY2022 Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 2 -SEM VALUEAgenda

１．FY2022 Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 3 -SEM VALUE

1-1.FY2022 Results◇Explanation of Business Results
Orders received, Net sales, ordinary profit, and Backlog of Orders
reached a record high.

［Orders Received・Net Sales］increase year on year (YoY).
Steady growth in large-scale works such as data centers, logistics warehouses, and metropolitan
area redevelopment.
［Operating profit・Ordinary profit］increase year on year (YoY).
An increase in Net sales offset an increase in expenses associated with investments in humanresources and technology, such as work style reforms and IT investments.

◇FY2022(¥bn)

FY2021

FY2022

Actual①

Plan ② Actual ③

GrowthDifference Growth
Percentage③-②③－①

Orders Received

179.0

180.0

188.8

8.8

9.8

5.5%

Net Sales

167.6

175.0

175.1

0.1

7.5

4.5%

Operating profit
Margin

13.01

13.10

13.46

0.36

0.46

3.5%

7.8%

7.5%

7.7%

0.2%

△0.1%

Ordinary profit
Margin

13.90

14.00

14.39

0.39

0.49

8.3%

8.0%

8.2%

0.2%

△0.1%

Profit attributableto owners of parent
Margin9.14

9.209.38

0.18

0.24

5.5%

5.3%

5.4%

0.1%

△0.1%

Backlog of Orders

3.6%
2.7%

108.8
122.4
13.7
12.6%
◇Dividends for FY2022 ¥94 per share (¥51 year-end), up ¥8 per share from most recent
announcement - 4 Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

SEMType
VALUE
1-2.Net Sales for FY2022 Results by Works
Power Transmission

Decreased YoY due to decreases in private sector demand and renewable energy
projects despite steady progress in works for electricity companies.

General ElectricalJapan: Same level as FY2021 with steady progress in large-scale projects such asdata centers and logistics warehouses.
Overseas: Significantly increased YoY due to progress in large-scale works such asdata centers, etc., as well as favorable foreign exchange rates.

Info & Comms

Communication System: Decreased YoY due to a decrease of mobile base station
works (investments), etc.
Information & Telecommunication: Increased YoY due to large-scale redevelopment
projects, etc.

Facility & HVAC

Increased YoY owing to a progress in plant construction.

Net Sales for byWorks Type(¥bn)

FY21→22
FY2022Growth(%) CompositionFY2020

FY2021

FY2022

Power Transmission

20.9

20.3

19.1

△5.6%

10.9%

General Electrical

87.1

100.7

106.0

5.3%

60.5%

68.1

76.8

76.6

△0.3%

43.7%

19.0

23.8

29.3

23.2%

16.8%

Info & Comms

27.7

27.5

28.5

3.8%

16.3%

Facility & HVAC

10.1

10.6

12.1

13.7%

6.9%

Others※

8.3

8.6

9.5

10.2%

5.4%

154.1

167.6

175.1

4.5%

100.0%

Non-consolidated +Japanese Subsidiaries
Overseas Subsidiaries

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

- 5 -SEM VALUEAgenda

１．FY2022 Results

２．FY2023 Forecast
３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 6 -SEM VALUE

2-1. FY2023 Forecast◇Business Environment
Expected demand:Growth areas such as data centers and other digital-related facilities, logistics warehouses,etc., redevelopment projects in the metropolitan areas, carbon-neutral investments including renewable energy,
information & communication-related investments for the creation of ICT environment, investments related to Expo
2025 Osaka, Kansai.

Potential risks:Soaring labor costs, high prices and delays in procurement of materials and equipment, and adecrease in construction volume due to postponement, contraction or freezing of capital investment plans mainly inthe manufacturing industry .

◇Consolidated Forecast for FY2023
Both sales and profits are planned to increase YoY.
(¥bn)

Orders Received

FY2021 FY2022 FY2023
Growth(%)
Actual Actual Forecast

FY2024VISION24

179.0

188.8

190.0

0.6%

200.0

167.6

175.1

185.0

5.6%

200.0

Operating profit

13.01

13.46

13.50

0.3%

Margin

7.8%

7.7%

7.3%

Ordinary profit

13.90

14.39

14.50

Margin

8.3%

8.2%

7.8%

Profit attributableto owners of parent

9.14

9.38

9.50

Margin

5.5%

5.4%

5.1%

Net Sales

0.7%

15.00
7.5%

1.2%

◇Dividends Forecast for FY2023
An annual dividend of 94 per share (interim 47) is forecast, unchanged from FY2022.

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

- 7 -SEMType
VALUE
2-2. Net Sales for FY2023 by Works
For Net Sales for FY2023, we are planning to increase sales
in all the works types, due to a progress of Backlog of Orders, etc.
Net Sales for byWorks Type(¥bn)

FY2023 FY22→23
FY2023
Forecast Growth(%) Composition

FY2021

FY2022

20.3

19.1

22.5

17.5%

12.2%

General Electrical

100.7

106.0

111.0

4.8%

60.0%

Non-consolidated +Japanese Subsidiaries

76.8

76.6

80.0

4.4%

43.2%

23.8

29.3

31.0

5.7%

16.8%

Info & Comms

27.5

28.530.0

5.2%

16.2%

Facility & HVAC

10.6

12.1

13.0

7.9%

7.0%

Others※

8.6

9.5

8.5

△10.1%

4.6%

167.6

175.1

185.0

5.6%

100.0%

Power Transmission

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 Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 9 -3-1.Power Transmission WorksSEM VALUE

EnergyProvide high-quality, reliable electric transmission technologies
to meet 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
and underground transmission, electrical substations, and electrical power distributionsystems. We are also engaged in the construction of interconnected systems to supply
electricity from new energy facilities, including photovoltaic power stations, wind power
stations and hydroelectric power stations.

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

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

SEM VALUE
3-1.Power Transmission FY2023 Forecast
Orders received
Net Sales

Orders received・Net Sales (¥bn)
26.0

24.5

24.2
24.0

22.5
22.0

20.0

19.8

20.3
19.1

18.0

16.0

FY2021

FY2022

FY2023(Forecast)

We will make efforts for medium-term growth, putting emphasis on projects forelectricity companies, private sector demand mainly for steel manufacturers, andrenewable energy-related investments.
In FY2023, both orders received and Net sales are planned to increase YoY.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 11 -

3-2.General Electrical Works

Environment

Electric

SEM VALUE

Overseas

Electric： Provide speedy and high-quality services for electrical systems that are becoming
increasingly important.
Overseas： 50 years of experience in Southeast Asia. Contributing to the development ofcustomers and regions.
Environment：Contribute to the use of energy for a new age, such as solar, storage cell andbiomass systems.
Engineering : Offer highly satisfactory engineering expertise in control/management systems
such as FMS and BM
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 basedon substantial experience both inside and outside Japan.
For more details, please refer to the link belowⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 12 -

https://www.sem.co.jp/english/business/

SEM
VALUE
3-2.General Electrical Works FY2023
Forecast
Orders received・Net Sales (¥bn)
120.0

108.8

112.2
100.7

106.0

Orders received
Net Sales

112.5

111.0

31.0

31.0

100.0

80.0

60.0

40.0

20.0

26.7

23.8

28.2

29.3

Overseas0.0

FY2021

FY2022

FY2023(Forecast)

Japan: In addition to growth areas such as data centers and logistics warehouses,
we will focus on projects for plants, and projects related to Expo 2025 Osaka,
Kansai. In FY2023, Net sales is planned to increase YoY.
Overseas: In addition to securing Japanese companies’ investments in Southeast
Asia, we will also focus on orders from non-Japanese companies. In FY2023, bothorders received and Net sales are planned to increase YoY.
Ⓒ 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 makeefforts to establish information networks, and has introduced them in many companies,universities, hospitals, data centers, etc. We provide optimal systems ranging from design,
establishment, and operation to maintenance, 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/

SEM
VALUE
3-3.Information & CommunicationsWorks
FY2023 Forecast

Orders received
Net Sales

Orders received・Net Sales (¥bn)
32.0

30.0

31.0
30.0

29.6
28.8

28.5
27.5

28.0

26.0

24.0

22.0

FY2021

FY2022

FY2023(Forecast)

We will focus on acquiring projects for metropolitan area redevelopment, medicaland educational facilities, and social infrastructure businesses, as well as projects
related to Expo 2025 Osaka, Kansai. In FY2023, both orders received and Netsales are planned 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 maintenance of plantmachines used in various kinds of manufacturing plants, and of air-conditioning andplumbing systems in factories, office buildings and hotels. We secure a sanitary andcomfortable environment and improve convenience for production and management inbuildings and factories used for various purposes.
- 16 -Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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

SEM VALUE
3-4.Facility and HVAC FY2023 Forecast
Orders received
Net Sales

Orders received・Net Sales (¥bn)
15.0

13.5

13.3

13.1

13.0

12.1
10.6
10.0

5.0

FY2021

FY2022

FY2023(Forecast)

We will focus on capital investment in the Sumitomo Electric Group as well as
projects related Expo 2025 Osaka, Kansai, and on receiving direct orders frommajor general contractors and plant operators. In FY2023, both orders received
and Net sales are planned to increase YoY.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 17 -SEM VALUEAgenda

１．FY2022 Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profitsto ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 18 -SEM VALUE
4-1.Medium-term Management Plan VISION 24 (FY2020-FY2024)[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 -VALUE
4-2.Medium-term Management Plan VISIONSEM
24 Targets<Consolidated orders received, Net Sales, ordinary profit, andordinary profit margin>
VISION24
FY2024 target

Orders Received￥200.0 bn

Net Sales￥200.0 bn

Ordinary profit￥15.0 bn

Ordinary profit
Margin7.5%- 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 -VALUE
4-3.Progress of Medium-term Management PlanSEM
VISION
24◇Progress
Since FY2022 is the interim year of VISION 24, we confirmed the progress of numericaltargets and key measures, and confirmed that the Group as a whole is generally making
steady progress toward the final goal of VISION 24.

◇Progress by Works TypePower Transmission

Delays in progress, including delays in renewable energy-related works

General ElectricalJapan：Expansion of data center and logistics warehouse projects against
the backdrop of e-commerce and telework, and strong demand forredevelopment projects in metropolitan areas resulted in progress beyond
expectations.
Overseas：Investment by non-Japanese companies offset the weak
investment by Japanese companies due to the weak yen, and results weregenerally in line with the plan.

Info & Comms

Information & communications works orders received ahead of schedulefor 5G-related investments and shifted to social infrastructure projects
thereafter, while works for information networks were sluggish due todelays in equipment deliveries, etc.

Facility & HVAC

Steady growth in large-scale projects, etc.

◇Progress in Growth Investments
We are generally executing in line with plans, focusing on investments in people and technology,
including the opening of the Kawasaki Technical Center and the Ibaraki Transmission LineConstruction Center, IT investments for on-site support, and investments to improve theworkplace environment, and will focus on further expanding our earnings power. As for remaining
issues, we will continue to work on M&A and alliances for business expansion.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 21 -

SEM VALUEAgenda

１．FY2022 Results
２．FY2023 Forecast

３. FY2023 Forecast by Works Type
４．Medium term Management Plan
VISION 24(FY2020－FY2024)
５．Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 22 -

SEM VALUE
5-1.Policy on the Distribution of Profits to Shareholders
Distribute stable dividends well balanced with internal reserves taking
into consideration business results and future business development.
FY23FY19

FY20

FY21

FY22Profit attributableto owners of parent
Margin（¥bn）

9.77
5.7%

8.05
5.2%

9.14
5.5%

9.38
5.3%

9.50
5.1%

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

70
3040(+10)743539(+4)863749(+12)944351(+8)

94
47
47

Profit per share(yen)274.67226.22257.43265.05268.33

Dividend payout
Ratio

25.5%

32.7%

33.4%

35.5%

35.0%

ROE

13.8%

10.3%

10.6%

10.2%

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

- 23 -(Forecast)VALUE
5-2.Profit and Dividends per Share, and DividendSEM
Payout
Ratio
Dividends have increased for 11 consecutive fiscal years since FY2011
Yen

300.0050.0%
Profit per share

Divdends

274.67
Dividend payout ratio

257.43265.05268.3340.3%

250.0040.0%226.22
35.5%
192.34200.0032.7%

144.69150.00100.00133.84142.85
26.6%

155.18
27.1%

26.0%

20.0%
86

13.4%

50.00
18

30.0%

25.5%

125.26
22.4%

16.6%

12

33.4%

148.73

94.85

12.7%

2428

FY2013

FY2014

35.0%

3842

FY2015FY2016506070949474
10.0%

0.00

0.0%
FY2011FY2012Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

FY2017- 24 -FY2018

FY2019FY2020

FY2021

FY2022

FY2023(forecast)SEM VALUE

Notes on Perspective Information
This presentation material is based on
currently available information. Actual results

may differ from forecasts due to a variety offactors.

Inquiries
Corporate Planning Department,
Sumitomo Densetsu Co., Ltd.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 25 -