【Materials for Investor Briefing】

FY2020 Results
and Annual Forecasts FY2021

may 24, 2021

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

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Agenda1. FY2020 Results
2. FY2021 Forecast
3. Main Initiatives for FY2021 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. FY2020 ResultsⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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1-1. Summary of FY2020 Results◇Explanation of Business Results[Orders received and Sales amount] Orders received achieved the forecasts, but sales fell slightly short.
・ While orders received in Japan decreased Year on Year (YoY) amid the challenging environment, a certain level oforder volume was secured thanks to robust digital-related investments and continuing investments into large data centersand logistics warehouses, etc.
Sales decreased YoY due to the decrease in the number of short-term projects and delays in the progress of certain works,
as a result of the impact of COVID-19 disaster, in addition to the fact that this year was an off-peak year for sales caused by
the timing of completion of large-scale works.
・ Orders received and sales overseas declined YoY due to the immense impact of COVID-19 disaster.

[Operating profit and Ordinary income] Achieved the forecasts
・ Profit and income (and their margins) secured the second-highest levels as a result of group-wide efforts to improve
profitability in works and reduce expenses, although they did not reach the levels of the previous year.

◇FY2020 Results(¥bn)

FY2019FY2020

Actual①Plan ② Actual ③

Orders Received
Sales AmountOperating Profit
MarginOrdinary Income
MarginNet Income
Margin

167.3
172.9
13.58
7.9%
14.20
8.2%
9.77
5.7%

160.0
155.0
9.40
6.1%
10.00
6.5%
6.20
4.0%

162.1
154.1
11.32
7.3%
11.94
7.7%
8.05
5.2%

Difference
③－②

2.1
△0.9
1.92
1.2%
1.94
1.2%
1.85
1.2%

Growth
③－①

△5.2
△18.8
△2.26
-0.6%
△2.26
-0.5%
△1.72
-0.5%

Percentage△3.1%△10.9%△16.7%△15.9%△17.6%-◇Dividends for FY2020
・ ¥74 per share (up ¥4YoY), up ¥4 from the forecast at the start of the fiscal year.
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1-2. Sales Amount for FY2020 Results by Works TypePower Transmission Works: Declined YoY due to a decrease in FIT- and private sector demand-related
projects, despite an increase in the number of projects for electricity companies.
General Electrical Works: In Japan, declined significantly YoY, due to decreases in the completion oflarge-scale works and orders received for short-term projects.
Overseas, declined YoY, due to the significant impacts of carried over projects resulting
from the COVID-19 disaster, and a decrease in maintenance projects in Thailand andIndonesia.
Information & Communication Works:
Increased YoY, as an increase in the number of mobile communications projects
compensated for decreases resulting from the completion of large-scale
projects such as universities and hospitals in the previous year.
Facility & HVAC Works:
Declined significantly YoY, due to the decrease in plant maintenance works,
in addition to a decrease resulting from the completion of large-scale projects in theprevious year.

Sales amountWorks Type(¥bn)

FY19→20
FY2020Grow th(%) Composition

FY2018FY2019FY2020

19.8

22.0

20.9

△4.9%

13.6%

Non-consolidated + Japanese Subsidiaries

75.1

80.5

68.1

△15.5%

44.2%

Ov erseas Subsidiaries

21.9

23.1

19.0

△17.5%

12.3%

General Electrical Works

97.0

103.6

87.1

△15.9%

56.5%

I nformation & Communications Works

20.7

26.4

27.7

4.8%

18.0%

Facility & HVAC Works

11.0

12.1

10.1

△16.4%

6.5%

Others*

8.5

8.9

8.3

△6.8%

5.4%

TOTAL

157.0

172.9

154.1

△10.9%

100.0%

Pow er Transmission Works*Others
Insurance agency business, HVAC equipment, solar power systems sales, equipment manufacturing
and repairs, 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. FY2021 ForecastⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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2-1. Outlook for FY2021◇ Business Environment and Key Initiatives
In addition to the continuation of redevelopment projects mainly in the large
metropolitan areas and a certain level of renewable energy-related investments
being maintained, further promotion of digital-related investments is also expected.
Meanwhile, despite the uncertainty of when the COVID-19 disaster will becontained and concerns for postponements and scaling back of capital
investment plans mainly in the manufacturing industry, we will strive as one
to achieve the forecast results.
We will resolutely work on various key measures with the goal of“Sustainable development through a new growth strategy andcomprehensive strength!,” which is the theme of VISION 24,
the new Medium-term Management Plan.

◇ Consolidated Forecast for FY2021
Sales amount:
Operating profit:
Ordinary income (%):
Net income:¥160.0 bn¥11.5 bn¥12.0 bn（7.5%）¥7.7 bn◇ Dividend Forecast for FY2020
An annual dividend of ¥74 per share (interim ¥37) is forecast, unchanged fromFY2020.
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2-2. FY2021 Forecast
We will focus on quality with the motto of Sumitomo Densetsu
as one, and strive for further growth and expansion based on thebusiness foundations that we have built so far.
(¥bn)

FY2019FY2020

FY2021Grow thFY2024

ActualActualForecast

(%)

V24

Orders Received

167.3

162.1

165.0

-

200.0

Sales Amount

172.9

154.1

160.0

3.9%

200.0

Operating Profit

13.58

11.32

11.50

1.6%

Margin

7.9%

7.3%

7.2%

-Ordinary Income

14.20

11.94

12.00

0.5%

15.00

Margin

8.2%

7.7%

7.5%

-

7.5%

Net Income

9.77

8.05

7.70

△4.3%

Margin

5.7%

5.2%

4.8%

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2-3. Sales Amount for FY2021 by Works TypeSales amount(¥bn)

Works TypeFY2019FY2020Power 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

Non-consolidated + Japanese Subsidiaries
Ov erseas Subsidiaries

General Electrical Works
Information & Communications Works
Facility & HVAC Works
Others*Total

FY2021
GrowthForecast

22.0
73.0
18.0
91.0
28.0
10.0
9.0
160

1.1
4.9(1.0)
3.90.3(0.1)
0.7
5.9*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.

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3. Main Initiatives for FY2021 by Works TypeⒸ SUMITOMO DENSETSU CO.,LTD. All Rights Reserved.

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3-1. 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

5.0

0.0
Ordersreceived

FY2019FY2020

FY2021(forecast)

22.1

18.6

23.00.0
Salesamount

FY2019FY2020

FY2021(forecast)

22.0

20.9

22.0

【Outlook for FY2021】
・ There are steady renewal works forelectricity companies, andincreased orders received related
to renewable energy aiming forcarbon neutrality are expected.
YoY increases in both orders
received and sales are expected.

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3-2. General Electrical Works【Orders Received】
120.0
¥bn

【Sales Amount】
120.0億円

¥bn

95.3

93.4

100.0

91.0

80.0

Overseas,
20.6

Overseas,
23.1

Overseas,900 18.0

60.0

40.0

103.6100.0949 992991 950Overseas,
23.3
920

億円

80.0

87.1

91.0

949 992991 950 Overseas,
920
Overseas, 900 18.0
19.0

60.0Japan,
71.9Japan,
72.8

Japan,
73.0

20.0

40.0

Japan,
80.5

Japan,
68.1

Japan,
73.0

20.0

0.0

0.0
FY2019FY2020

FY2021(forecast)

FY2019FY2020

FY2021(forecast)【Outlook for FY2021】
・Japan:We will focus on orders related to redevelopment in theTokyo metropolitan area / Kansai area, logistics warehouses,
data centers, etc. We expect the recovery of renewal /maintenance projects for the manufacturing sector thatstagnated due to the COVID-19 disaster.
・Overseas: In light of the continuing impact of the COVID-19 disaster,we will focus on orders related to the renewal / maintenanceof existing customers and orders from non-Japanesecustomers.
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3-3. Information & Communications Works【Orders Received】【Sales Amount】

35.0

35.0

¥bn

¥bn

30.0

30.0

25.0

25.0

20.0

20.0

15.0

15.0

10.0

10.0

5.0

5.00.0Ordersreceived

FY2019FY2020

FY2021(forecast)

29.4

32.1

30.00.0
Salesamount

FY2019FY2020

FY2021(forecast)

26.4

27.7

28.0

【Outlook for FY2021】
・ For works for indoor networks, we will continue order-receiving
activities in robust markets such as data centers, logistics warehouses
and GIGA schools, and we expect full-scale corporate investments
into DX.
For outdoor communications works, we will continue to proactively
respond to the robust 5G infrastructure investment market.

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3-4. Facility and HVAC Works【Orders Received】¥bn【Sales Amount】

15.0

¥bn

15.0

10.0

10.0

5.0

5.00.0Ordersreceived

FY2019FY2020

FY2021(forecast)

11.7

9.7

12.0

0.0
Sales
amount

FY2019FY2020

FY2021(forecast)

12.1

10.1

10.0

【Outlook for FY2021】
・We will continue renewal works for the Sumitomo Electric Group while
focusing on order-receiving activities related to other office buildings
and large housing complexes.

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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.Medium-term Management Plan 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 incomemargin

7.5%- 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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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)

FY15

FY16

FY17

FY18

FY19

FY20

Net income

5.08

5.52

6.84

5.29

9.77

8.05

Income margin

3.5%

4.0%

4.7%

3.4%

5.7%

5.2%

Dividends pershare (yen)

38

42

50

60

7074

Interim dividend1424(10)2022(2)2228(6)2535(10)3040(10)3539(4)142.85155.18192.34148.73274.67226.22

26.6%

27.1%

26.0%

40.3%

25.5%

32.7%

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 10 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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