【Materials for Investor Briefing】

FY2021 Results
and Annual Forecasts FY2022

may 25, 2022

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Agenda1. FY2021 Results
2. FY2022 Forecast
3. Main Initiatives 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.

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1. FY2021 ResultsⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-1. Summary of FY2021 Results◇Explanation of Business Results[Orders received and Sales amount] Achieved the forecasts, with an increase year on year (YoY).
Orders received reached a record high.
Japan:General electrical works and facility & HVAC works compensated for the decrease of information & communication
works thanks to the orders received for large-scale works, etc.
Overseas: Increased as in Japan thanks to the orders received for large-scale works, etc.

[Operating profit and Ordinary income] Achieved the forecasts with an increase year on year (YoY).
Ordinary income reached a record high.
An increase in sales amount and improvement of profitability in works and other factors offset an increase in expenses forwork style reforms and improvement of the workplace environment.

◇FY2021 Results(¥bn)

FY2020
Actual①
Orders Receiv ed
Sales AmountOperating Profit
MarginOrdinary I ncome
MarginNet I ncome
MarginFY2021
Plan ② Actual ③

162.1
154.1
11.32
7.3%
11.94
7.7%
8.05
5.2%

165.0
160.0
11.50
7.2%
12.00
7.5%
7.70
4.8%

GrowthDifference
③－②

③－①

14.0
7.6
1.51
0.6%
1.90
0.8%
1.44
0.7%

16.9
13.5
1.690.5%
1.96
0.6%
1.09
0.3%

179.0
167.6
13.01
7.8%
13.90
8.3%
9.14
5.5%

Percentage

10.4%
8.8%
14.9%
16.4%
13.6%
-◇Dividends for FY2021
・ ¥86 per share (up ¥12YoY), up ¥12 from the forecast at the start of the fiscal year.
Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-2. Sales Amount for FY2021 Results by Works TypePower Transmission Works: Declined YoY due to decreases in the number of projects related to renewable energies
and private sector demand, although the number of projects for electricity companiesincreased.
General Electrical Works:

In Japan, significantly increased YoY owing to progress in large-scale works on hand, etc.
Overseas, significantly increased YoY as in Japan owing to progress in large-scale works
on hand, etc.

Information & Communication Works:
Slightly declined YoY as steady progress in mobile base station works ordered in theprevious year in the Communication Works
compensated for a decrease in the number of projects in works for information networks
caused by delay in the delivery of materials and equipment.
Facility & HVAC Works:

Increased YoY owing to progress in large-scale works in the HVAC Works.

Sales amount(¥bn)

Works Type

FY20→21
FY2021
Growth(%) Composition

FY2019FY2020

FY2021

22.0

20.9

20.3

△3.2%

12.1%

Non-consolidated + Japanese Subsidiaries

80.5

68.1

76.8

12.9%

45.8%

Ov erseas Subsidiaries

23.1

19.0

23.8

25.2%

14.2%

General Electrical Works

103.6

87.1

100.7

15.6%

60.1%

I nformation & Communications Works

26.4

27.7

27.5

△0.6%

16.4%

Facility & HVAC Works

12.1

10.1

10.6

5.2%

6.3%

Others*

8.9

8.3

8.6

3.5%

5.1%

TOTAL

172.9154.1

167.6

8.8%

100.0%

Power Transmission Works*Others
Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturing andrepairs, and manufacture and sales of hot water supply systems.
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1-3. Historical Data Since FY2000

Made a loss in FY05
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Shift in focus from quantity to quality- 6 -住友電設株式会社

2. FY2022 ForecastⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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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 caused by the situation in Russia
and Ukraine, supply chain-related risk caused by the shortage of semiconductors and risingresource prices, rapid depreciation of the yen, and the risk of postponement or contraction ofcapital investment plans mainly in the manufacturing industry resulting from the aforementionedrisks.
◇ 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)

FY2020

FY2021

FY2022Grow thFY2024

ActualActualForecast(%)

V24

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

11.32

13.01

13.10

0.7%

Margin

7.3%

7.8%

7.5%

-Ordinary Income

11.94

13.90

14.00

0.7%

15.00

Margin

7.7%

8.3%

8.0%

-7.5%

Net Income

8.05

9.14

9.20

0.6%

Margin

5.2%

5.5%

5.3%

-

◇ Dividend Forecast for FY2021
An annual dividend of ¥86 per share (interim ¥43) is forecast, unchanged from FY2021.
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2-2. Sales Amount for FY2022 by Works TypeWe are planning to increase sales due to the potential growth ofgeneral electrical works and overseas subsidiaries.
Sales amount(¥bn)

FY2022GrowthForecastWorks TypeFY2019FY2020

FY2021

Power Transmission Works

22.0
80.5
23.1
103.6
26.4
12.1
8.9
172.9

20.9
68.1
19.0
87.1
27.7
10.1
8.3
154.1

20.3
20.0
76.8
79.0
23.8
27.0
100.7 106.0
27.5
29.0
10.6
12.0
8.6
8.0
167.6
175

Non-consolidated + Japanese Subsidiaries
Ov erseas Subsidiaries

General Electrical Works
Information & Communications Works
Facility & HVAC Works
Others*Total(0.3)
2.2
3.2
5.3
1.5
1.4
(0.6)
7.4

*Others
Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturingand repairs, and manufacture and sales of hot water supply systems.

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3. Main Initiatives for FY2022 by Works TypeⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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3-1. Power Transmission Works

EnergyProvide 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 arealso engaged in the construction of interconnected systems to supply electricity from new energy
facilities, including photovoltaic power stations, wind power stations and hydroelectric powerstations.
For more details, please refer to the link below
https://www.sem.co.jp/english/business/Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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3-1. Power Transmission Works Outlook for FY2022
Orders received・Sales amount(￥bn)
25.0

20.9
20.0

18.6

20.3

19.8

OrdersSales

receivedamount

20.0

20.0

15.0

10.0

5.00.0

FY2020

FY2021

FY2022 (forecast)

We are focusing on orders for renewable energyrelated investments in addition to renewal works
for electricity companies.
Orders received and sales amount are planned
to be at the same level as the previous year.

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3-2. General Electrical Works

Electric

電気Electric

Provide speedy and high-quality services for electrical systems
that are becoming increasingly important
Electrical systems used for buildings are becoming increasingly sophisticated and diversified in pursuing
convenience and comfort. The stable supply of electrical energy has become more important, especiallyfor managing various kinds of risks, dealing with BCPs, fulfilling social responsibilities such as environmental
protection, and achieving a sustainable society.
Sumitomo Densetsu has been implementing speedy and high-quality planning, design, construction andmaintenance, making use of our high technological capabilities for various electrical systems (highvoltage, low-voltage, disaster preventive and security). We will meet any kind of needs based on
For more details, please refer to the link below
substantial experience both inside and outside Japan.
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3-2. General Electrical Works Outlook for FY2022

電気
ElectricOrders
receiv ed
Ov erseas
20.6

Japan:

Sales
amount19.0

Ordersreceiv ed
26.7

Sales
amount23.8

Ordersreceiv ed
27.0

Sales
amount27.0

We will work on receiving orders for redevelopment projects in the Tokyo
metropolitan area / Kansai area, data centers, logistics warehouses, plants, etc. in awell-balanced manner.
The orders for projects related to Expo 電気
2025 Osaka, Kansai are also expected to bereceived.
ElectricOverseas:We will also focus on receiving orders from non-Japanese customers due toconcerns over the potential impact of the rapid depreciation of the yen on theJapanese companies’ investments in Southeast Asia.
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3-3. Information & Communications Works

Communication

System■Communication System
Establish a communication infrastructure, with the motto“Safety and Quality First”
Sumitomo Densetsu provides total engineering services from consultation, system design,construction and operation to the maintenance of communication/broadcasting
infrastructure. With the motto “Safety and Quality First,” we will continue supporting the ICTsociety.
For more details, please refer to the link below
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3-3. Information & Communications Works

Information &Telecommunicaiton■Information & Telecommunication
Support the establishment of optimal networks using
accumulated know-how
As the IT society develops, information networks, which are the infrastructure of the ITsociety, become more and more important. Sumitomo Densetsu was the first in our industry
to make efforts 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 ourFor more details, please refer to the link below
accumulated know-how.
https://www.sem.co.jp/english/business/Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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3-3. Information & Communications Works
Outlook for FY2022

In FY2022, we will focus on projects that were delayed due tothe shortage of semiconductors, etc. and also on receiving
orders for new large-scale works related to investments inICT, including the IoT platform. Both orders received andsales amount are planned to increase YoY.

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3-4. Facility and HVAC Works

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.
For more details, please refer to the link below
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3-4. Facility and HVAC Works Outlook for FY2022

We will continue renewal works within the Sumitomo ElectricGroup while focusing on order-receiving activities related tooffice buildings, warehouses, and large housing complexes.
Both orders received and sales amount are planned to increaseYoY.

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4. Medium-term Management Plan
VISION 24 (FY2020 – FY2024)Ⓒ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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

Aim to become a comprehensive engineering enterprise that truly meetsthe needs of society through the growth of people and technology[Theme of V24]
Sustainable development through a new growth strategy andcomprehensive strength!
Sumitomo Densetsu as one, enhancement of SEM brand power (safety and security,high quality, reliability, and enterprise value)[Four key measures]

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

Securing and developing humanresources and implementing
work style reforms

Enhancing enterprise value inanticipation of the future

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

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4-2. VISION 24 Numerical Targets[Consolidated orders received, sales amount, ordinary income, and ordinary income margin]

VISION 24
FY2024 target
Orders received¥200.0 bn

Sales amount¥200.0 bn

Ordinary income¥15.0 bn

Ordinary income
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.

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4-3. VISION 24

Human resources development for the foundation for our future growth

October 29, 2021 News Release: Establishment of SEM Training Center (tentative name)
Sumitomo Densetsu (Nishi-ku, Osaka; President: MakotoTani) decided to establish a new training center withaccommodation facilities (tentative name: SEM Training
Center) in Kawasaki, Kanagawa Prefecture.
We celebrated the 70th anniversary of our foundation inApril 2020. As one of our commemoration projects, thetraining center will be established to further enhance thelevel of staff education. This is also part of our initiatives for“Securing and developing human resources andimplementing work style reforms,” one of the key measuresof the Medium-term Management Plan VISION 24, which
was formulated in the same year.

At the training center, staff members will be able to learn
various technologies, including electricity equipment aswell as power equipment, information & communicationequipment, and air-conditioning and plumbing
equipment, using real equipment, not to mentionattending classroom lectures. The training center will also
have a safety and danger sensory experience room
equipped with VR sensory equipment designed toexperience danger, etc. This will be a hub for staff training
to learn practical technological skills and expertise, and will
also serve as a site for the development of various newtechnologies, which is planned to have functions as ashowroom as well.
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Location
Site Area
Total Floor Area
Structural Scale
Construction PeriodOpening- 23 -3-878-1 Shimonoge Takatsu-ku, Kawasaki, Kanagawa
about 3,000 ㎡
about 5,000 ㎡
Steel Construction,４ story building
December 2021 to December 2022
April 2023 (planned)

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

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5-1. 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)

FY17

FY18FY19FY20FY21FY22Net income

6.84

5.29

9.77

8.05

9.14

9.20

Income margin

4.7%

3.4%

5.7%

5.2%

5.5%

5.3%

Dividends pershare (yen)5060707486

86

Interim dividend2228(6)2535(10)3040(10)3539(4)3749(12)4343

192.34148.73274.67226.22257.43259.10

26.0%

40.3%

25.5%

32.7%

33.4%

33.2%

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

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5-2. Profit and Dividends per Share, and Dividend Payout Ratio
・Dividends have increased for 11 consecutive fiscal years since FY2011.

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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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