February 13, 2023 Company name: Nippon Koei Co., Ltd. Stock exchange listing: Tokyo Stock Exchange Code number: 1954 URL: https://www.n-koei.co.jp/english/ Representative: Hiroaki Shinya, Representative Director and President Contact: Yasushi Hirusaki, Director General of Corporate Management Headquarters, Director Phone: +81-3-3238-8040 Scheduled date of filing quarterly securities report: February 13, 2023 Scheduled date of commencing dividend payments: - Availability of supplementary briefing material on quarterly financial results: Yes Schedule of quarterly financial results briefing session: Yes (for investors and analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Six Months Ended December 31, 2022 (from July 1, 2022 to December 31, 2022)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 to June 30, 2023)
1 * Notes: (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes New companies: None Excluded companies: IRONMONT HYDRO PTE. LTD. ACEI SINGAPORE HOLDINGS PRIVATE LTD. (2) Changes in accounting policies and changes in accounting estimates l) Changes in accounting policies required by IFRS: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None (3) Total number of issued shares (ordinary shares) 1) Total number of issued shares at the end of the period (including treasury shares) As of December 31, 2022 15,068,948 shares : As of June 30, 2022 15,060,314 shares : 2) Total number of treasury shares at the end of the period As of December 31, 2022 2,480 shares . As of June 30, 2022 1,811 shares :
* These consolidated financial results are not subject to audit procedures by certified public accountants or the audit firm. *  Explanation of the proper use of financial results forecast and other notes The earnings forecasts and other forward-looking statements disclosed herein are based on information available to the Company as of the publication date of this document and it is not intended to guarantee the Company's future performance. Actual results may significantly differ from the forecasts due to a wide range of factors.
Table of Contents of Attachment

1.
Qualitative Information on Quarterly Financial Results
(1) Explanation of Operating Results
During the six months ended December 31, 2022 (July 1, 2022 to December 31, 2022), the Japanese economy is expected to recover due to the effects of various policies as the transition to a new stage of life with COVID-19 progresses. However, while global monetary tightening, etc. continues, we need to pay close attention to the effects of price increases, supply-side constraints, and fluctuations in the financial and capital markets in addition to the risk that the downside in overseas economies would hold down the Japanese economy. With regard to the business environment surrounding NIPPON KOEI CO., LTD. (the "Company") and its subsidiaries (together, the "Group"), we recognize that the situation is unpredictable. There is an increasing risk of uncertainty in the international situation such as global inflation and a weak yen triggered by the COVID-19 pandemic and Russia's invasion of Ukraine while we are facing global issues that require immediate action, such as climate change and income disparities. In the Consulting Business, the domestic market is expected to continue to secure public work budgets for national resilience and regional revitalization and the market is expected to expand especially in the field of disaster prevention and mitigation. In the overseas market, the Japanese government is aiming to strengthen budgets with "Infrastructure System Overseas Promotion Strategy 2025" as an axis, but business operations are expected to be difficult due to the delay in formation of some projects caused by the impact of COVID- 19 and review of the business in association with inflation and yen depreciation. In the Urban & Spatial Development Business, the need for sustainable urban restructuring, which attracts ESG investment, is increasing in Japan, Europe and the United States. Also, the need for the urban development business including preparation and maintenance of transportation-related facilities and peripheral infrastructures is strong in developing countries. In the Energy Business, new opportunities are expected to be created leading to competition toward the target of carbon neutrality in 2050 in addition to the demand for updating the aging existing equipment in Japan. However, it is necessary to agilely cope with policy change due to the rising global energy cost although the trend of shifting to renewable energy remains unchanged. The Group is taking steps to prevent COVID-19 with an active defense system. In addition, to achieve work-life balance and improve productivity, we are promoting telework and other work style reforms. Under such a market environment, we have drawn up the medium-term management plan "Building Resilience 2024" to implement three resilience policies, and positioned the period from July 2021 to June 2024, which is first step of the "NKG Global Strategy 2030," as a transformation period to make the Group resilient. As the first resilience policy, we reorganized the conventional five business operations into three domains (Consulting, Urban & Spatial Development, and Energy) to strengthen the business axis. As the second resilience policy, we will aim to realize matrix management by transitioning to a holding company structure and preparing and maintaining a regional management system. As the third resilience policy, we aim to strengthen technological development and human resource development toward the establishment of "NKG brand" and "NKG quality." Also, we will promote "well-being management" as a basis for that. As a result, the Group ended the six months of the current fiscal year with orders received increased 17.4% year on year to ¥59,016 million, mainly due to steady progress in the Energy Business. Revenue increased 10.3% year on year to ¥58,451 million, mainly due to steady progress in the Consulting Business. Operating profit decreased 2.6% year on year to ¥1,235 million due to increased expenses in the Consulting Business and the Urban & Spatial Development Business. Loss attributable to owners of parent amounted to ¥1,054 million due to foreign exchange losses (same period of the previous fiscal year :profit of ¥615 million). Revenue for the six months ended December 31, 2022 were ¥58,451 million, an achievement rate of 40.3% against the revenue forecast of ¥145,000 million for the current fiscal year (same period of previous fiscal year: 40.4%). This is due to the fact that, as the Group's business structure, a large proportion of operations is progressing in the second half of the fiscal year and there are seasonal fluctuations in the recording of revenue. On the other hand, expenses such as selling, general and administrative expenses were generated evenly throughout the year, the Group recorded loss attributable to owners of parent for the six months ended December 31, 2022. Business results for each segment are as follows: As some of our subsidiaries have changed their reportable segments, effective from the first quarter of the current fiscal year, comparisons with the six months of the previous fiscal year are based on the figures that have been reclassified into the new segments. For details of this change in reporting segments, please refer to "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (5) Primary Notes to Condensed Quarterly Consolidated Financial Statements (Segment Information) 2. Changes in reportable segments."
[Consulting]
In the Consulting Business, we worked to utilize new technologies, assure quality and safety and increase productivity. We also promoted cross-sectional co-creation projects such as those related to river basin flood control, climate change, SDGs, renewable energy and multi-hazards. As a result, orders received increased 1.4% year on year to ¥29,708 million and revenue increased 16.0% year on year to ¥33,042 million due to steady progress in the domestic projects and operating loss was ¥219 million (same period of previous fiscal year: operating profit of ¥647 million) due to an increase in business travelers by easing of entry restrictions in various countries and increase in travel costs caused by inflation.
[Urban & Spatial Development]
In the Urban & Spatial Development Business, we worked to form urban (re-)development projects centering on NIPPON KOEI URBAN SPACE CO., LTD., which was established by consolidating the Urban & Spatial Development Business of the Company and our group company TAMANO CONSULTANTS CO., LTD. (on July 1, 2022). We also worked to expand business in the U.K. and North American markets and to establish a business foundation in the Asian market through group-wide collaboration. As a result, orders received increased 34.6% year on year to ¥19,770 million due to orders for large-scale projects at BDP HOLDINGS LIMITED and its subsidiaries ("BDP"). Revenue increased 5.5% year on year to ¥16,399 million and operating profit decreased 64.2% year on year to ¥198 million due to increase of selling, general and administrative expenses related to the organizational integration of NIPPON KOEI URBAN SPACE CO., LTD., and prior investments in building a foundation for BDP's business expansion.
[Energy]
In the Energy Business, we worked to strengthen the structure of the existing energy-related consulting and engineering projects, build a foundation for energy management projects such as battery storage and aggregation and stabilize the manufacturing projects by strengthening core products and developing new ones. As a result, orders received increased 50.7% year on year to ¥9,418 million due to orders for a large-scale project such as EPC project for construction of next-generation energy supply base, revenue increased 0.1% year on year to ¥8,577 million, and operating profit increased 118.7% year on year to ¥2,047 million by gain on sale of shares of PT. ARKORA HYDRO, a former associated company of the Group, and gain on investments in securities.
(2)  Explanation of Financial Position
Total assets at the end of the first six months of the fiscal year, amounted to ¥190,758 million, an increase of ¥16,832 million from the end of the previous fiscal year. This was mainly due to a ¥15,135 million increase in contract assets. Total liabilities were ¥114,213 million, an increase of ¥22,256 million from the end of the previous fiscal year. This was mainly due to a ¥28,090 million increase in borrowings. Total equity was ¥76,545 million, a decrease of ¥5,423 million from the end of the previous fiscal year. This was mainly due to a ¥2,931 million decrease in retained earnings. As a result, ratio of equity attributable to owners of parent to total assets decreased 6.2 percentage points from the end of the previous fiscal year to 38.7%. (3)  Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements The full-year forecasts remain unchanged from those announced on August 12, 2022 since the performance of Group for the first six months of the current fiscal year is generally progressing within the range of the forecast of Group at the beginning of the fiscal year in each segment.
(1) Condensed Quarterly Consolidated Statement of Financial Position
(Millions of yen)
(2)  Condensed Quarterly Consolidated Statements of Profit or Loss and Comprehensive Income
(Condensed Quarterly Consolidated Statement of Profit or Loss)

(3) Condensed Quarterly Consolidated Statements of Changes in Equity

For the Six Months Ended December 31, 2022 (From July 1, 2022 to December 31, 2022)

(5) Primary Notes to Condensed Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) There is no relevant information. (Notes on Significant Changes in Shareholders' Equity) 1. Issuance of restricted stock compensation In accordance with the resolution of the Extraordinary Board of Directors Meeting held on September 29, 2022, we issued new shares as restricted stock compensation for Directors on October 28, 2022. As a result, share capital and capital surplus increased by ¥15 million, respectively, during the six months ended December 31, 2022. Subsequently, share capital and capital surplus as of December 31, 2022 were ¥7,517 million and ¥6,470 million, respectively.
(Segment Information)
1. Outline of reportable segments (1) Method of determination of reportable segments Reportable segments of the Group are determined as segments whose separate financial information is accessible from among the constituent units of the Group and are periodically used by the Board of Directors to determine the allocation of management resources and to evaluate achievements. The Group has business management divisions separated by type of products and services at the head office. Each business management division formulates a comprehensive strategy based on the products and services and engages in conducting business activities. In line with the above, the Group is composed of segments divided by products and services, with each business management division serving as the foundation, and the three reportable segments are "Consulting", "Urban & Spatial Development" and "Energy."
(2) Types of products and services by reportable segment
The "Consulting" engages in business within and outside Japan such as site surveying, planning, evaluation/assessment, designing, and construction management. It operates in the fields of rivers and water resources, water and sewage, agricultural and rural development, dams and power generation, transportation (roads, railroads, ports and airports), urban and regional development, geology, disaster prevention, sand control, environment, information systems, etc. "Urban & Spatial Development" engages in the structuring, planning, design, and operation of urban and spatial development business. The "Energy" engages in manufacturing and sale of electric power equipment and control devices, planning, design, construction and construction management of mechanical, electrical and communication facilities as well as the energy management business utilizing distributed energy resources.
2. Changes in reportable segments
On July 1, 2022, the Urban & Spatial Development Business of the Company was transferred by succession to our consolidated subsidiary TAMANO CONSULTANTS CO., LTD. through a company split (simplified absorption-type split), and the trade name of the said company was changed to NIPPON KOEI URBAN SPACE CO., LTD. (“NIPPON KOEI URBAN SPACE”). In association with the organizational restructuring due to the relevant company split, NIPPON KOEI URBAN SPACE and its subsidiary TAMANO ECOST CO., LTD. and our consolidated subsidiary NAKAZE KAMP CO., LTD. have had their segment classification changed from the "Consulting Business" to the "Urban & Spatial Development Business." Please note that segment information for the second quarter of the previous fiscal year is provided based on the new reporting segments. 3. Information about reportable segments The internal intersegment revenue or transfers are based on the transaction price determined after price negotiations taking into consideration the market price, etc.
For the six months ended December 31, 2021 (from July 1, 2021 to December 31, 2021) Notes: 1. The category of "Others" includes revenues from constituent units that have not earned revenues or earn only incidental revenues. 2. "Adjustments" is mainly elimination of transaction between segments. For the six months ended December 31, 2022 (from July 1, 2022 to December 31, 2022)
Notes: 1. The category of "Others" includes revenues from constituent units that have not earned revenues or earn only incidental revenues. (Significant Subsequent Events) There is no relevant information.
3. Other Information
(1) Status of Orders and Revenue

consolidated from the first quarter of the current fiscal year. 2. The above amounts are for external customers, and do not include inter-segment transactions or transfers. 3. Revenue 1 is by segment which received orders. Revenue 2 is by segment which provided services. 4. Foreign exchange and other adjustments include those related to exchange differences and outstanding order revisions. 5. As disclosed in "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (5) Primary Notes to Condensed Quarterly Consolidated Financial Statements (Segment information)," the Group has changed its reportable segments since the first quarter of the current fiscal year. The figures for the six months ended December 31, 2021 and for the fiscal year ended June 30, 2022 have been provided based on the new reporting segments.