【Investor Briefing】
FY2019 1st Half Results
and Annual Forecasts

November 25, 2019

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

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Agenda1. FY2019 1st Half Results and Annual Forecasts
2. Main Initiatives for FY2019 by Works Type
3. Policy on the Distribution of Profits toShareholdersⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1. FY2019 1st Half Results and Annual ForecastsⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-1. Summary of FY2019 1st Half Results◇Explanation of Business Results[Orders received and Sales amount] Achieved the forecasts, with an increase year on year (YoY)
・Sales amount in Japan increased as we progressed with abundant works on hand・Overseas, some hope emerged in the harsh environment, with increasing orders for maintenance work fromJapanese companies, and orders from non-Japanese companies[Operating profit and Ordinary income] Achieved the forecasts, with a significant increase YoY
・Achieved record profit (and profit margin) in gross profit and all other profit categories, due to increases in profit
from finally completed projects and profitability improvements for works on hand

◇FY2019 1st Half Results(\bn)

Actual ①
Orders Received
Sales AmountOperating Profit
MarginOrdinary Income
MarginNet Income
Margin

74.8
72.4
5.44
7.5%
5.72
7.9%
3.73
5.2%

Growth③－①

FY2019 1H

FY2018 1HPlan ②

Actual ③

78.0
73.0
4.60
6.3%
5.00
6.8%
3.20
4.4%

84.2
76.6
6.40
8.4%
6.73
8.8%
4.43
5.8%

Difference

Percentage

③－②

6.2
3.6
1.80
2.1%
1.73
2.0%
1.23
1.4%

9.4
4.2
0.96
0.9%
1.01
0.9%
0.70
0.6%

12.6%
5.8%17.6%
17.6%
18.8%
-◇Interim Dividends for FY2019
・¥30 per share (up ¥5 YoY), as forecast at the start of the fiscal year
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1-2. Sales Amount for FY2019 1st Half Results by Works TypePower Transmission Works: Increased YoY due to progress with projects for electricity companies.
General Electrical Works: In Japan, increased YoY due to progress and completion of works onhand. Overseas, decreased slightly YoY due to completion of large works from theprevious fiscal year.
Information & Communications Works: Increased YoY due to solid performances from mobile
works and network renewal works.
Facility & HVAC Works: Strong performance, especially in the Tokyo metropolitan area.
Others*: Sales at the same level as in the same period of the previous fiscal year.

Sales*Others
Insurance agency
business, HVAC
equipment, solar powersystems sales, equipment
manufacturing and repairs,
and manufacture andsales of hot water supply
systems.

(\bn)
Works TypeFY2017 1H FY2018 1H FY2019 1H

FY18→19Grow th(%)

FY2019Composition

7.8

9.4

9.8

4%

13%

33.833.2

35.0

5%

45%

Ov erseas Subsidiaries

9.2

11.0

10.6

(3)%

14%

General Electrical Works

43.0

44.2

45.63%

59%

Information & Communications Works

8.3

9.2

11.0

18%

14%

Facility & HVAC Works

5.0

5.3

5.9

11%

8%

Others*

4.2

4.3

4.4

2%

6%

TOTAL

68.3

72.4

76.6

6%

100%

Power Transmission Works
Non-consolidated + Japanese SubsidiariesⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-3. Ordinary Income Variation Factors from FY2018 to FY2019(0.04)
Ordinaryincome ofJapanesesubsidiaries＋1.44

FY2018 1H
ordinaryincome¥5.72 bn

Nonconsolidated
ordinaryincome↓
operating profit(+¥1.22 bn)(7.9%)

non-operating(0.39)
Ordinaryincomeof overseas
subsidiaries,etc.

Increase of¥1.01 bn
FY2019 1H
ordinaryincome¥6.73 bn

(8.8%)(+¥0.22 bn）

FY2019 1H Actual

FY2018 1H ActualⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-4. Outlook for FY2019◇ Business Environment and Key Initiatives
The Japanese market is lively, with continuing redevelopment of the Tokyo
metropolitan area and business related to the Tokyo Olympics, and conditions are
expected to remain favorable overall, with steady business from the renewableenergy sector and 5G network mobile base station works. This should compensate forthe harsh environment for overseas works, and ensure we achieve the numericaltargets of the medium-term management plan “Vision 19.”

◇ Consolidated Forecast for FY2019

Vision 19 Target

Sales amount:¥165.0 bn

Operating profit:¥11.9 bn

Ordinary income (%):

¥12.5 bn (7.6%)

Net income:¥165.0 bn¥12.5 bn (≥7.5%)¥8.4 bn◇ Dividend Forecast for FY2019
・An annual dividend of ¥60 per share (interim ¥30) is forecast, unchanged
from FY2018.
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1-5. FY2019 Forecast
Momentum from FY2019 1H, supported by our solid performancein Japan, will continue for the rest of FY2019, ensuring we achieve
the forecast results (=V19 numerical targets).
(\bn)

FY2017FY2018FY2019Grow thFY2019

ActualActualForecast(%)

V19Orders Receiv ed

156.9

160.2

165.0

3.0%

Sales Amount

146.8

157.0

165.0

5.1%

Operating Profit

9.87

10.95

11.90

8.6%

Margin

6.7%

7.0%

7.2%

-Ordinary I ncome

10.40

11.56

12.50

8.1%

Margin

7.1%

7.4%

7.6%

-Net I ncome

6.84

5.29

8.40

58.7%

Margin

4.7%

3.4%

5.1%

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165.0

12.50
≥7.5%

住友電設株式会社

1-6. Sales Amount for FY2019 by Works TypeSales(\bn)
Works TypeFY2017FY2018FY2019Forecast

GrowthPower Transmission Works

19.2
68.7
20.4
89.1
19.9
9.8
8.7
146.8

19.8
75.1
21.9
97.0
20.7
11.0
8.5
157.0

21.5
79.0
21.0
100.0
24.5
11.0
8.0
165.0

1.7
3.9(0.9)
3.0
3.8
0.0
(0.5)
8.0

Non-consolidated + Japanese Subsidiaries
Ov erseas Subsidiaries

General Electrical Works
Information & Communications Works
Facility & HVAC Works
Others*TOTAL*Others
Insurance agency business, HVAC equipment,
solar power systems sales, equipment
manufacturing and repairs, and manufactureand sales of hot water supply systems.

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

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1-7. 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.

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

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1-8. Historical Data Since FY2000

Made a loss in FY05
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Shift in focus from quantity to quality- 11 -

住友電設株式会社

1-9. Vision 19 Initiatives

Evolving into a High-Quality Engineering Enterprise!

～ Enhancing individual ability and harnessing comprehensive strength ～Response to the MarketEnvironment＜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

Personnel training andrevitalization
Secure and strengthen
capacityStrengthen sales
Strengthen overseas
businesses

Technological innovation

Response ＜V15 Continuing Challenges＞
toChange
Harnessing comprehensive strength

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

Creating an evolving
enterprise, targeting
Quality No.1!

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

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

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2. Main Initiatives for FY2019 by Works TypeⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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住友電設株式会社

2-1. Power Transmission Works【Orders Received】【Sales Amount】

25.0

25.0
¥bn¥bn

20.0

20.0

15.0

15.0

10.0

10.0

5.0

5.00.0Ordersreceived

FY2017FY2018FY2019(forecast)

24.6

20.0

23.00.0
FY2017FY2018FY2019(forecast)

19.2

19.8

21.5

Salesamount【Outlook for FY2019】
・ Sales of ¥21.5 bn are forecast,an increase year-on-year due
to private and FIT-related
demand, and increased
progress with large-scale
projects for electricity
companies.
Interconnectedtransmission linesⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

Specialhigh-voltage transformers- 14 -

Interconnected ~Intermediaryintermediary

substation

PCS

Solar panels

住友電設株式会社

2-2. General Electrical Works【Orders Received】
120.0
¥bn

120.0

億円

100.0
80.0

91.9
Overseas,
949
920
18.4

98.3

96.0

Overseas,
Overseas,992991950900 21.0
22.6

60.0
40.0

【Sales Amount】¥bn100.0

億円

89.1

97.0

100.0
Overseas,80.0

Overseas,992991950900 21.0
21.9920 949
Overseas,
20.4

60.0Japan,
73.5

Japan,
75.7

Japan,
75.0

20.0

40.0

Japan,
68.7

Japan,
75.1

Japan,
79.0

FY2018FY2019(forecast)

20.0

0.0

0.0
FY2017FY2018FY2019(forecast)

FY2017【Outlook for FY2019】
・ Japan:

Focus on orders related to redevelopment of the Tokyo metropolitan area,large-scale logistics warehouses, and renovation of aging offices and factories.
Sales from large-scale projects nearing final completion will be concentrated inthe second half. Temporary works related to the Olympics will take place at thesame time, making it vital to secure sufficient capacity.

・ Overseas: A recovery in capital investment by Japanese companies is expected. Also
focus on orders from non-Japanese companies.

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住友電設株式会社

2-3. Information & Communications Works【Orders Received】【Sales Amount】
30.0
30.0

30.0 30.0
Billion yen¥bnBillion yen¥bn25.0 25.0

25.0
25.0

20.0 20.0

20.0
20.0

15.0 15.0

15.0
15.0

10.0 10.010.0
10.0

5.0

5.0

5.05.00.00.0FY2017FY2017 FY2018
FY2018OrdersOrders received20.7 20.7
received

21.4
21.4

FY2019FY2019(forecast(forecast))
26.0
26.0

0.00.0FY2019FY2017 FY2018
FY2018 FY2019
FY2017(forecast)(forecast)

Sales
Sales
19.9
19.9
amountamount

20.7
20.7

24.5
24.5

【Outlook for FY2019】
・Sales of ¥24.5 bn are forecast, with the construction of indoor
networks for office buildings, educational facilities, hotels etc.,
as well as IoT for health-care and manufacturing, LTE andpre-5G mobile communications.

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

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

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住友電設株式会社

3-1. 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)

FY19

FY14

FY15

FY16

FY17FY18Net income

4.46

5.08

5.52

6.84

5.29

8.40

Income margin3.1%

3.5%

4.0%

4.7%

3.4%

5.1%

Dividends per share
(yen)

2838

42506060

Interim dividend

121420222530

Year-end dividend

162422283530

125.26142.85155.18192.34148.73236.09

22.4%

26.6%

27.1%

26.0%

40.3%

25.4%

Profit per share(yen)
Dividend payoutratioⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

- 18 -Forecast

住友電設株式会社

3-2. Profit and Dividends per Share, and Dividend Payout Ratio
・Dividends have increased for 8 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
from forecasts 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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