【Materials for Investor Briefing 】
FY2023 Results
and Annual Forecasts FY2024

MAY 24, 2024

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

CORPORATE PHILOSOPHY

SEM VALUE

Recognizing its social mission and responsibility, the Sumitomo Densetsu Group:-Aims to develop a favorable environment to support a prosperous and secure society.
-Values its technical prowess and the customer's confidence in it and provides high quality
engineering service that gives a high level of customer satisfaction.
-Practices fair and transparent management based on compliance in keeping with a high standardof corporate ethics.
-Seeks to create a vibrant and pleasant business environment while fostering employees rich increativity.

SEM VALUE

Sincerity
Meet the needs of society in a cordial attitude.
Meet the needs of customer and society, place yourself in the other person's position, andperform tasks properly and actively with sincerity and passion.

Teamwork
Recognize diversity and show a team effort.
Show our integrated strengths and recognize diversity and values, thereby strengthening unityand enabling further growth.

Creation
Create a sustainable future with advancedtechnologies.
Develop our established technologies and continue to challenge creation of a sustainablesociety.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

2

AgendaSEM VALUE

１．FY2023 Results
２．FY2024 Forecast

３. FY2024 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.

3

1.FY2023 Results

SEM VALUE■ 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 projects such as Power Transmission works for private sector andelectricity companies as well as General Electrical works for data centers.
［Operating profit・Ordinary profit］decrease year on year (YoY).
There were individual unprofitable projects and an increase in expenses associated withinvestments in human resources and technologies, such as work style reforms and IT investment.
■ FY2023
FY2022 FY2023（¥bn）

Actual① Plan ②

GrowthActual ③

Difference③-②

GrowthPercentage③－①

Orders Received188.8

190.0

225.9

35.9

37.1

19.6%

Net Sales

175.1

185.0

185.5

0.5

10.4

5.9%

Operating profit
Margin

13.46

13.50

12.55

△0.95

△0.91

△6.8%

7.7%

7.3%

6.8%

△0.5% △0.9%

Ordinary profit
Margin

14.39

14.50

13.50

△1.00

8.2%

7.8%

7.3%

△0.5% △0.9%

Profit attributable toowners of parent
Margin

9.38

9.50

10.06

0.56

0.68

5.4%

5.1%

5.4%

0.3%

0.1%

Backlog of Orders

122.4

△0.89

162.8

■ Year-end dividend for FY2023 was ¥59 per share(up ¥12 per share from the forecast at the start of the fiscal year),annual dividend of ¥106 per shareⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

40.3

△6.2%
7.2%

33.0%

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2.FY2024 Forecast

SEM VALUE■ Business Environment Overall steady growth
Expected demand：Growth areas such as data centers, redevelopment projects in the metropolitan areas,carbon-neutral investments including renewable energy, information &communication-related investments for thecreation of ICT environment, investments related to Expo 2025 Osaka, Kansai.
Potential risks：Increased costs due to progression of the weak yen, high prices of materials, equipment, andcables, soaring labor costs, and rush construction due to delays in the progress of our construction work associatedwith delays in general contractor's processes.

■ Consolidated Forecast for FY2024:
Our forecast for FY2024 is in line with the numerical targets set forth in VISION 24
VISION24

FY2024
Forecast

Growth(%)

225.9

220.0

△2.6%

175.1

185.5

200.0

7.8%

13.01

13.46

12.55

14.50

15.6%

7.3%

7.8%

7.7%

6.8%

7.3%

Ordinary profit

11.94

13.90

14.39

13.50

15.00

Margin

7.7%

8.3%

8.2%

7.3%

7.5%

Profit attributableto owners ofparent

8.05

9.14

9.38

10.06

10.00

Margin

5.2%

5.5%

5.4%

5.4%5.0%(¥bn)

2020

2021

2022

2023

Orders Received

162.1

179.0

188.8

Net Sales

154.1

167.6

Operating profit

11.32

Margin

11.1%

△0.6%

■ Dividends Forecast for FY2024
An annual dividend of ¥114 per share (interim ¥57) is planned, up¥8 per share from FY2023.

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

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3.Net Sales for FY2024 by WorksSEM
TypeVALUE■ Net Sales for FY2023 Results by Works Type（Our forecast for FY2024 are explained on the following pages by Works Type）

Power Transmission

Significant increase YoY due to progress on large-scale Backlog of Orders inprojects for electricity companies, electric furnace projects for private sector, andrenewable energy projects.

General Electrical

J a p a n :Increased YoY due to progress of large-scale projects such as data
centers and redevelopment projects in the metropolitan areas
Overseas :Decreased YoY due to a decline in projects for Japanese companies
mainly following the rapid depreciation of the yen.

Info & Comms

Communication System: Secured the same level as FY2022 mainly due toprojects of digital radio communication system for fire and ambulance service
offsetting the decrease of mobile base station projects
Information & Telecommunication: Increased YoY due to plant, medical, andeducational facility-related projects.

Facility & HVAC

Increased YoY due to a progress of Backlog of Orders in HVAC division.

Net Sales for by WorksType(¥bn)

2020

2021

2022

2023

FY22→23
Growth2024
Forecast

FY23→24
GrowthPower Transmission

20.9

20.3

19.1

24.5

5.4

30.0

5.5

General ElectricalNon-consolidated +Japanese SubsidiariesOverseas Subsidiaries

87.1

100.7

106.0

111.1

5.2

116.0

4.9

68.1

76.8

76.6

83.2

6.6

85.0

1.8

19.0

23.8

29.3

27.9

△ 1.4

31.0

3.1

Info & Comms

27.7

27.5

28.5

29.6

1.1

32.0

2.4

Facility & HVAC

10.1

10.6

12.1

12.4

0.4

14.0

1.6

Others

8.3

8.6

9.5

7.8

△ 1.6

8.0

0.2

154.1

167.6

175.1

185.5

10.4

200.0

14.5

TOTAL

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

6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 distribution
systems. 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.

For more details, please refer to the link below
https://www.sem.co.jp/english/business/
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SEM VALUE
3-1.Power Transmission FY2024 Forecast■ Summary of the FY2024
Both Orders received and Net sales are planned to increase YoY
Orders received・Net Sales（bn）

Orders received
Net Sales

60.0

50.0
50.0

40.0

34.2
30.0

30.0

20.0

20.9

19.8 20.3

FY2020

FY2021

18.6

24.5

24.2
19.1

10.00.0

FY2022

FY2023

FY2024Forecast

We will make it our highest priority to acquire large-scale private transmission
line projects related to renewable energy. We will also continue to focus on
acquiring projects for electricity companies and projects for private sector suchas those for steel manufacturers.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

8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.

https://www.sem.co.jp/english/business/93-2.General Electrical Works FY2023
Forecast
SEM
VALUE■ Summary of the FY2024
Orders received are planned to decrease YoY, Net sales are planned to increase YoY
Orders received・Net Sales（bn）

Orders received
Net Sales

160

138.4

140

108.8

120
100

93.4

100.7

112.0

112.2
111.1

106.0

116.0

87.1

80
60
4020

20.6 19.0

26.7 23.8

28.2 29.3

FY2020

FY2021

FY202234.7

27.9

31.0 31.0

FY2023

FY2024overseas0Japan

Forecast: In addition to growth areas such as data centers, we will focus on acquiring
projects expecting continued orders into the future such as plants.

Overseas: We will focus on semiconductor-related and data center projects forJapanese companies. It is vital that we expand projects for non-Japanesecompanies.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

103-3.Information & Communications
SEMWorks
VALUE

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.

For more details, please refer to the link below
https://www.sem.co.jp/english/business/
113-3.Information & Communications
SEMWorksVALUE
FY2024 Forecast■ Summary of the FY2024
Both Orders received and Net sales are planned to increase YoY
Orders received・Net Sales（bn）

Orders received
Net Sales

35.0

36.0
34.0

32.1

32.0

32.0
30.0
28.0

30.5

29.6

28.8

29.6

28.5

27.7

27.5

FY2020

FY2021

26.0
24.0
22.0

FY2022

FY2023

FY2024
Forecast

Following FY2023, we will continue to focus on securing communications
infrastructure projects (fire and ambulance commands, wide area wirelessnetworks, subways, etc.) and information infrastructure projects for large facilities(hotels, medical and nursing care, educational facilities, etc.)Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

12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.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

For more details, please refer to the link below
13
https://www.sem.co.jp/english/business/

3-4.Facility and HVAC FY2023 Forecast
SEM VALUE■ Summary of the FY2024
Orders received is planned to remain flat YoY and Net sales is planned toincrease YoY
Orders received・Net Sales （bn）

14.0

13.3

13.1

12.1

10

15.0

14.9

159.7

10.1

Orders received
Net Sales

12.4

10.6

5

FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

Following FY2023, we will focus on projects of capital investment inthe Sumitomo Electric Group as well as projects related to Expo 2025
Osaka, Kansai, and expanding direct orders from major generalcontractors and plant operators.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

144-1.Medium-term Management Plan VISION 24 (FY2020-FY2024)
SEM VALUE[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.

15

4-2.Medium-term Management Plan VISION
24 Targets
SEM
VALUE
<Consolidated orders received, Net Sales, ordinary profit, andordinary profit margin>
VISION24
FY2024 targetOrders 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.

16

5-1.Policy on the Distribution of Profits to Shareholders
SEM VALUEIn FY2024, we plan to achieve our Medium-term Management Plan
VISION 24 target of a dividend payout ratio of 40%

Profit attributable toowners of parentMargin（¥bn）
Dividends per
share[yen]Interim dividend[yen]

FY20

FY21

FY22

FY23

8.05
5.2%

9.14
5.5%

9.38
5.4%

10.06
5.4%

FY24（forecast)

9.50
5.1%

7486

94106

114

3537434757

Year-end dividend[yen]

3949

51

5957

(Increase) [yen]

(+4)

(+12)

(+8)

(+12)

(+8)

Profit per share(yen)Dividend payout
Ratio

226.22257.43265.05284.09282.37

ROE

32.7%
10.3%

33.4%
10.6%

35.5%
10.2%

37.3%

40.4%

10.0%

V24 target
10%

V24 target
40%

Distribute stable dividends well balanced with internal reserves taking
into consideration business results and future business development.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

175-2.Profit and Dividends per Share, and Dividend
PayoutRatio
SEM
VALUE
Dividends have increased for 13 consecutive fiscal years since FY2011
yen300
Profit per share

Divdends

284.09 282.37

274.67
Dividend payout ratio

257.43265.05
40.4%

250

37.3%

226.22

40%

35.5%

40.3%
192.34

200

33.4%
30%

32.7%
155.18144.69150

133.84125.26148.73142.85
26.6% 27.1% 26.0%

25.5%
114
106

22.4%
10050%

94.85
12.7%

86

16.6%

13.4%
501218242838

4250

60

70

20%

9474

10%

00%
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
forecast

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

18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.

19