Medium-Term Management Plan

NKG Building Resilience 2024(2021.7-2024.6)

Goals of Nippon Koei Group

The vision of our Nippon Koei Group is ‘To be group of consultants and engineering companies that are overwhelmingly No.1 in Japan and top class worldwide’.
In the Medium Management Goals NKG Building Resilience 2024, we will use 3 years to solidify the foundation of 100-year-old company aim, follow the 3 resilience policies and develop sustainable growth to grow into a ‘Global corporate company with cooperation and resilience as one team ’.

3 resilience policies

Resilience policy 1: Boosting business through three independent domains(Consulting, Urban & Spatial, Energy)

In order to reinforce business axis, the previous five business segments changed to three business segments (Consulting, Urban & Spatial, Energy)

Consulting Business
  • Evolve into an organization that can compete in the world by integrating the domestic and international consulting operations and R&D Center.
Urban & Spatial Development Business
  • By integrating architecture and civil engineering and comprehensively produce urban and regional revitalization projects in Japan and abroad.
Energy Business
  • Construct foundations for power generation and energy management businesses, such as battery storage and aggregation through internal and external collaboration.

Resilience policy 2: Group management structure that realizes matrix management across businesses and regions

Transitioning to a holding company and ensuring comprehensive management for each region that realize matrix management.

Organizational Strategy
  • Based on a group of operating companies centered on a holding company and transitioning comprehensive management for each region that realize matrix management, autonomy and collaboration of group company, faster decision-making for coexistence of diversity.
Sales Strategy
  • “Think Globally, Act Locally” to accommodate the needs of regions with world-class technologies, realization of one-stop services and support for autonomous management of the region.

Resilience policy 3: Manifesting the NKG brand and NKG quality

As a technology strategy, we will increase investment in technology development with digital transformation as the core and strive to create new customer value for the evolution of digital technology.
In addition, for human resource strategy, launching NKG Global Academy to develop world-class human resources.
Additionally, promote well-being management by developing health management, work-style transformation & work-place transformation etc.

Human Resource/Technology Strategy
  • Increasing investment in technology development with DX(digital transformation) as the core and strive to create new customer value for the evolution of digital technology (NKG brand).
  • Launching NKG Global Academy to develop world-class human resources (NKG quality).
  • Promoting well-being management by developing health management, work-style transformation & work-place transformation (employees’ physical, emotional well-being, motivation for work and management that enhances commitment to initiatives).

Numerical Targets (IFRS)

FYE June 2024
Numerical Targets
(IFRS)
Revenue
155 billion yen
Operating profit
11.5 billion yen
Operating profit margin
7%
ROE
9%

Numerical Targets (IFRS)

FYE 2021/6
Results
FYE 2024/6
Plan
Amount %
Orders 133,304 150,000 16,695 112.5%
Revenue 117,859 155,000 37,140 131.5%
Operating profit 7,128 11,500 4,371 161.3%
Operating profit margin 6.0% 7.4% 1.4pt
Profit before tax 7,176 11,000 3,823 153.3%
Profit attributable to owners of parent 4,531 7,100 2,569 156.7%
ROE 6.7% 9.0% 2.3pt

Numerical Targets by Segment (IFRS)

FYE 2021/6
Results
FYE 2024/6
Plan
Amount %
Orders 133,304 150,000 16,695 112.5%
Consulting Business 97,769 92,000 -5,769 94.1%
Urban & Spatial Development Business 21,457 39,000 17,542 181.8%
Energy business 13,991 19,000 5,008 135.8%
Revenue 117,859 155,000 37,140 131.5%
Consulting Business 80,098 88,000 7,901 109.9%
Urban & Spatial Development Business 20,274 40,000 19,725 197.3%
Energy business 16,621 26,000 9,378 156.4%
Real Estate Leasing and Other 865 1,000 134 115.6%
Operating profit 7,128 11,500 4,371 161.3%
Consulting Business 7,981 8,200 218 102.7%
Urban & Spatial Development Business 2,266 3,200 933 141.2%
Energy business -1,061 3,300 4,361 -
Real Estate Leasing and Other -2,058 -3,200 -1,141 -

*Figures in three segments for FYE 21/6 are simple aggregations before intercompany eliminations.

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