【Materials for Investor Briefing】
FY2019 Results

June 23, 2020

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

- 1 -住友電設株式会社

Agenda1. FY2019 Results
2. Policy on the Distribution of Profits
to ShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 2 -住友電設株式会社

1. FY2019 ResultsⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 3 -住友電設株式会社

1-1. Summary of FY2019 Results◇Explanation of Business Results[Orders received and Sales amount] Achieved the forecasts, with a significant increase in sales year on year (YoY).
Sales amount reached a record high.
・ Orders received in Japan increased mainly in Information & Communications Works that engage in the installation ofmobile phone base stations for 5G, etc. and network-related works for buildings and education, among others.
Sales in Japan increased YoY due to steady progress with the abundant works on hand.
・ Orders received overseas increased YoY as a result of the Group's united efforts.

[Operating profit and Ordinary income] Achieved the forecasts, with a significant increase YoY.
・ Achieved record-high operating profit and ordinary income in terms of both amount and ratio as a result of increased profit
from completed projects and profitability improvement in works.

◇FY2019 Results(\bn)

FY2018Growth③-①

FY2019Actual①

Plan②

Actual③

Difference
③-②

160.2
157.0
10.95
7.0%
11.56
7.4%
5.29
3.4%

165.0
165.0
11.90
7.2%
12.50
7.6%
8.40
5.1%

167.3
172.9
13.58
7.9%
14.20
8.2%
9.77
5.7%

2.3
7.9
1.68
0.7%
1.70
0.6%
1.37
0.6%

Orders Receiv ed
Sales AmountOperating Profit
MarginOrdinary I ncome
MarginNet I ncome
MarginPercentage

7.1
15.9
2.63
0.9%
2.64
0.8%
4.48
2.3%

4.4%
10.1%
24.0%
22.8%
84.7%
-FY2019
V19165.0

Numerical targets
achieved forMedium-termManagement Plan
Vision 1912.50
7.5% or more

◇Dividends for FY2019
・ ¥70 per share (up ¥10 YoY), up ¥10 from the forecast at the start of the fiscal year.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 4 -住友電設株式会社

1-2. Sales Amount for FY2019 Results by Works TypePower Transmission Works: Increased YoY due to progress with projects for electricity companies and FIT-related projects.
General Electrical Works: In Japan, increased YoY due to progress of works on hand and an increase inthe completion of large-scale works.
Overseas, increased YoY in Thailand, Indonesia, Malaysia, and China.
Information & Communication Works: An increase in the number of mobile communication projects
and an increase in the completion and progress of Information &Communications Works related to universities, hospitals and data
centers contributed to an increase in sales.
Facility & HVAC Works: Strong performance, especially in the Tokyo metropolitan area.

Sales amount(¥bn)

Works TypeFY2017FY2018FY2019FY18→19Grow th(%)

Power Transmission Works19.2

19.8

22.0

11.0%

12.7%

Non-consolidated + Japanese Subsidiaries

68.7

75.1

80.5

7.2%

46.6%

Ov erseas Subsidiaries

20.4

21.9

23.1

5.2%

13.3%

General Electrical Works

89.1

97.0

103.6

6.7%

59.9%

Information & Communications Works

19.9

20.7

26.4

27.6%

15.3%

Facility & HVAC Works

9.8

11.0

12.1

9.9%

7.0%

Others*

8.7

8.5

8.9

4.3%

5.1%

TOTAL

146.8

157.0

172.9

10.1%

100.0%FY2019Composition*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.

- 5 -住友電設株式会社

1-3. Ordinary Income Variation Factors from FY2018 to FY2019
Increase of¥2.64 bn

Ordinary Income Variation Factors
＋0.10
＋0.02

＋2.52

FY2018
ordinary
income¥11.56bn

Ordinary
incomeofJapanesesubsidiaries

Ordinary
income ofoverseas
subsidiaries

Nonconsolidated
ordinary
incomeFY2019ordinary
income¥14.20bn(8.2%)(7.4%)FY2019 Actual

FY2018 ActualⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 6 -住友電設株式会社

1-4. Historical Data Since FY2000

Made a loss in FY05
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

Shift in focus from quantity to quality- 7 -住友電設株式会社

1-5. Proportion of Sales Amount from Overseas
V19 was formulated to target 20% of sales from overseas. However, the current
proportion is only around 15%, due to greatly reduced Japanese investment overseas.
Robust sales in Japan have compensated for this drop in overseas sales.
¥bn153.3

Non-consolidated + Japanese subsidiaries
Overseas subsidiaries
Overseas proportion

161.4
37.2

144.3

40.435.5

172.9

146.8

146.9

137.2

28.3

17.7

157.0

23.1

21.9

20.4

Overseas

Japan

112.9

26%

124.2

108.8

118.6

119.5

19%
13%

Vision15
FY2012FY2013

FY2014Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

149.9

135.1

Formulated to target 20% of sales from overseas

Overseas
proportion
25%

23%

126.4

14%

14%

13%

Vision19
FY2015FY2016- 8 -FY2017

FY2018FY2019住友電設株式会社

1-6. Results of Vision 19 Initiatives
Based on the theme of “Evolving into a High-Quality Engineering
Enterprise!,” steadily moved forward to become a high-quality
engineering enterprise by improving proposal-based sales capabilities
and on-site capacity, as well as interdivisional collaboration for joint
on-site construction, through improved individual abilities andharnessing of comprehensive strength.
Response to the Market
Environment＜Structural Change＞

PursuitofQuality→further market transformation

SE Asia markets
Economic cycle bringing changes
in the market env ironment

Environment/energy policy
Electricity system reform

Enhancing individual ability

Olympics, Tokyo redev elopment

個人力の向上Personnel training andrevitalization
Secure and strengthen
capacityStrengthen salesStrengthen overseasbusinesses

Technological innovation

Environmental andnew fields responseⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 9 -Response ＜V15 Continuing Challenges＞
toChange
Harnessing comprehensive strength

Safety, Quality,
ComplianceAging society
Japanese market＜V19 Key Measures＞

総合
力の発
揮

Creating an evolving
enterprise, targeting
Quality No.1!

・Strengthen business base・Key measures andcontinuing challenges
in response tomarket change

住友電設株式会社

2. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 10 -

住友電設株式会社2-1. Policy on the Distribution of Profits to Shareholders
Policy on the Distribution of Profits to Shareholders
・ Distribute stable dividends well balanced with internal reserves
taking into consideration business results and future businessdevelopment.
Trend in Net Income and Div idends

(¥bn)

FY14

FY15

FY16

FY17

FY18

FY19Net income

4.46

5.08

5.52

6.84

5.29

9.77

Income margin

3.1%

3.5%

4.0%

4.7%

3.4%

5.7%

Dividends pershare (yen)

2838

42

50

6070

1216(4)1424(10)2022(2)2228(6)2535(10)3040(10)125.26

142.85155.18192.34148.73274.67

22.4%

26.6%

27.1%

26.0%

40.3%

25.5%

Interim dividend
Year-end dividend(Increase)
Profit per share(yen)Dividend payoutratioⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 11 -

住友電設株式会社

2-2. Profit and Dividends per Share, and Dividend Payout Ratio
・Dividends have increased for 9 consecutive fiscal years since FY2011.

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

- 12 -

住友電設株式会社

Notes on Perspective Information
The forecast of consolidated financial results forthe fiscal year ending March 31, 2021 has been
undetermined as it is difficult to make areasonable performance forecast calculation at
this stage due to the impact of COVID-19. The
Company will carefully assess the impact of thedisease on its business in the future and disclose its
forecasts as soon as they become available.
Inquiries

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

- 13 -

住友電設株式会社