Hibiya Engineering Group

INTEGRATED

REPORT

2022

A resolute

commitment to technology for today's needs

An Introduction to Hibiya Engineering

Corporate Philosophy - HIBIYA Vision

Brand Message

A resolute commitment to technology for today's needs

This brand message clearly and succinctly expresses the HIBIYA Vision for the purposes of raising awareness of Hibiya Engineering and fostering workforce solidarity.

The message also embodies our responsibility to all stakeholders and our determination to continue making progress. Furthermore, the brand message helps unify the thinking of all employees as a guideline for going back to the basics when unsure about which decision to make.

Our Mission

We are dedicated to the following principles.

Use light, water, air, and information to give life to buildings and create safe, secure and comfortable environments for people and society.

Meet the needs of customers by providing support spanning the entire life cycle of buildings as a building care manager.

Constantly upgrade comprehensive engineering skills to help protect the global environment.

Respect the interests of employees, customers and shareholders.

For more details, please see

HIBIYA Vision "Action Guidelines" and "Standards for Ethical Behavior"

https://www.hibiya-eng.co.jp/ja/company/vision.html(Japanese only)

Contents

Chapter 1 An Introduction to Hibiya Engineering

Chapter 4 Sustainability (ESG)

Corporate Philosophy - HIBIYA Vision ………………………… 01

A Message from the Vice President

Our Business ……………………………………………………………………………… 03

"HIBIYA's Sustainability Management"…………………… 27

Long-term Vision "Create the Future of Hibiya"……… 05

Sustainability Management ……………………………………………… 29

Environmental Initiatives …………………………………………………… 31

Chapter 2 Value Creation Process

Social Initiatives ……………………………………………………………………… 34

HIBIYA's History ……………………………………………………………………… 07

Governance ……………………………………………………………………………… 45

Performance Data ………………………………………………………………… 09

HIBIYA Value Creation ………………………………………………………… 11

Chapter 5 Corporate Data

(1) Value Creation Process

11-year Financial Information…………………………………………… 55

(2) Business Model "One-Stop Service"

Results and Financial Summary (MD&A) ……………………… 57

Stock Information / Company Information ………………… 59

Chapter 3 Growth Strategy

A Message from the President ………………………………………… 15

Medium-term Management Plan …………………………………… 19

Status of Initiatives by Business Segment …………………… 23

Scope of the report

forward-looking statements>

Period: Fiscal year ended March 31, 2022

Forward-looking statements in this integrated report, including planned future figures

(April 1, 2021 - March 31, 2022)

and policies, are calculated based on judgments and assumptions that the Hibiya

Engineering Group considers reasonable at the current time, and based on the

*Some information outside of the above-mentioned period is also available.

information currently available. Therefore, actual results may differ significantly from

Organization: Hibiya Engineering (including Group companies)

these forecasts due to various important factors such as economic status in major

markets in Japan and overseas and fluctuations in foreign exchange rates.

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An Introduction to Hibiya Engineering

Our Business

We use air, water, electricity and information to give life to buildings and support safe, secure and comfortable social environments.

Hibiya Engineering gives "life" to buildings via business activities in our four business segments of "air," "water," "electricity," and "infor- mation," which are indispensable in our daily lives, though "air conditioning equipment," "plumbing and sanitation facilities," "electrical

equipment," and "information and communications equipment." InAir this way, we contribute to the creation of a safe, secure, comfortable,

and sustainable environment for people to live in society.

[Hibiya Engineering's Businesses]

Water

Other

Electrical

equipment

Air conditioning

equipment

Electricity

Plumbing and

sanitation facilities

(Composition of net sales in FY2022)

Information

Other

Related SDGs

Air conditioning equipment

Building spaces are expanding increasingly with high-rise,large-scale, and underground use. Combining the four elements of temperature, humidity, airflow, and air quality based on ergonomics, we provide the optimal environment for any purpose, from office buildings, factories, and research facilities to general high-rise residences. We can provide the highest quality and lowest cost for "health use air-conditioning" and "industrial air-conditioning."

[Main equipment] : Heat source equipment, duct/smoke exhaust equipment, air conditioning equipment, ventilation equipment, automatic control equipment, etc.

Plumbing and sanitation facilities

We provide comprehensive design and construction from basic facilities for daily life, such as water supply, hot water supply, and plumbing to system construction for rainwater utilization and wastewater reuse. We are also actively engaged in the development of water processing technologies and other technologies to create optimal water supply and drainage facilities with consideration given not only to environmental impact but also to initial and running costs.

[Main equipment] : Water supply equipment, plumbing/ventilation, fire extinguishing equipment, kitchen equipment, hot water supply equip- ment, sanitary fixtures, gas equipment, etc.

Electrical equipment

Electricity is the power source of building spaces. In addition to providing electrical equipment that is indispensable for advanced information communication systems and computer systems, we also provide lighting, security and disaster prevention equipment, network LAN construction, and other high-quality electrical systems that pursue reliability and safety while taking energy conservation and environmental preservation into consideration.

[Main equipment] : Power receiving and transforming equipment, electric light main lines, lightning conductor equipment, power equipment, lighting/outlet equipment, trunk line equipment, disaster prevention equipment, private power generation equipment, central monitoring equipment, etc.

Promotion of Digital Transformation (DX)

We are aiming to expand our solutions business through the provision of new DX-related services and the proposal and construction of high-value-added systems. The Company is promoting initiatives to position DX as a new core value, such as energy conservation and comfort based on information obtained from sensors, and support for streamlining operations through integrated management of buildings and facilities.

We are engaged in the realization of LC Total Solutions by pursuing group synergies as a

Hibiya Tsushou Co., Ltd.

comprehensive engineering service company that provides a one-stop solution to our

Nikkey Co., Ltd.

customers' requirements.

L

C

T S

Life Cycle Total Solutions

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An Introduction to Hibiya Engineering Long-term Vision "Create the Future of Hibiya"

We aim to be a green engineering company based on the concept of "creating new added value by envisioning the cities and buildings of the future."

Hibiya Engineering has formed a project team led by next-generation leaders to formulate a long-term vision of "Create the Future of Hibiya." With a view that "ZEB renovation" will become an important solution technology in the future, when it will be indispensable to respond to climate change, we, as a green engineering company, are taking on the challenge of creating new added value while envisioning the cities and buildings of the future.

[Roadmap for the establishment of green engineering]

Next 3 years Model construction

3 to 7 years Trials and implementation

and trials

ZEB* renovation needs

ZEB needs expand to

mainly for local governments

the private sector

*Abbreviation for Net Zero Energy Building

A building that aims to attain a comfortable indoor environment while reducing the annual primary energy balance consumed by the building to zero.

[What needs to be addressed]

Stronger management foundation

  • Systematization of the Hibiya Method and future investment in long-term human resource issues
  • Establishment of a flexible organization capable of systematically developing and activating highly skilled professionals who can realize "Create the Future of Hibiya"

Expand business domains

  • Establish an innovation laboratory for developing technologies in order to create the future of cities and buildings
  • Become a company capable of devising solutions for entire buildings
  • Promote environment-friendly projects

Reinforce equipment installation skills

  • Further increase comprehensive skills involving equipment and facilities by strengthening and enlarging the group's value chain with actions that may include alliances and M&A
  • Establish the digital transformation as the group's new core value

7 to 10 years Implementation and establishment

Emergence of self-sufficient, dispersed cities with

local production and consumption

Become a green engineering company

Stronger management

foundation

Expand

Create the Future of HIBIYA

business domains

Reinforce equipment

installation skills

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Value Creation Process

HIBIYA's History

Based on our more than 50 years of history,

Hibiya Engineering will continue to build on the trust of

Further Growth through "Create the Future of Hibiya"

our customers and our reliable technology and services, leading to further future creation.

Net sales trends

1995

50th anniversary

Company is listed on

the Tokyo Stock Exchange Prime Market

(Millions of yen)

80,000

60,000

Company is listed on First Section of

Tokyo Stock Exchange

Hibiya Engineering, Ltd. is established

1977

Company is listed on

Second Section of

Tokyo Stock Exchange

1966

1970

1980

1990

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

During the Seventh

Medium-term40,000

Management Plan period

Adopted the theme of

"Create the Future of Hibiya"

20,000

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0

(plan)

Group History

1966

Company is registered as a construction business under the Construction Industry Law (Ministry of Construction permit: (RU) No. 7614)

Company takes over Tokyo Setsubi Co., Ltd. and Taikei Koji Co., Ltd.

1967

Company publishes first issue of "Hibiya company newsletter"

1968

Hibiya Maintenance Co., Ltd. is established (In June 1972 Hibiya Maintenance is taken over by Nihon Sogo Maintenance (now Nihon Meccs Corporation))

1972

Mebuki Seisakujo Co., Ltd. is established (In July 1975 Mebuki Seisakujo merges with Nikkei Kizai Co., Ltd. (now Nikkey Co., Ltd.))

1974

The company registers as a special construction business (Ministry of Land, Infrastructure, and Transport permit (Toku-49) No. 3931) and as a general construction business (Ministry of Land, Infrastructure, and Transport permit (Han-49) No. 3931) (These permits are subsequently renewed every five years)

1976

Company establishes an Employee Shareholders Association

1981

Company publishes first issue of "Hibiya Technical Report"

1989

Noda Plant (Chiba Prefecture) is remodeled and opens as technical research facility

1991

Company establishes Hibiya Labor Union

1995

Company makes Hibiya Tsushou Co., Ltd. a subsidiary

1999

Head Office (present Tokyo Main Office) obtains ISO 9001 certification (Certification is extended to all branches in July 2002)

Company launches its website

2001

Opening of Tokyo Main Office (Corporate Business Division separates from Head Office organization)

2003

Nikkey Co., Ltd. becomes a subsidiary

2004

Tokyo Main Office obtains ISO 14001 certification (ISO 14001 certification is extended to entire company in September 2009)

2008

Company signs an agreement to form a capital and business alliance with O-ENCE Co., Ltd.

2010

Company acquires all shares of HIT Engineering Co., Ltd. (formerly Toyama Koei Co., Ltd.), making it a wholly owned subsidiary

2014

Company obtains ISO 27001 certification

2016

Opening of Haneda Safety Training Center

2018

Opening of Hibiya Information Plaza

2019

Company obtains Eruboshi certification (Second-Tier)

2021

Company takes over HIT Engineering Co., Ltd.

Technical Achievements and

1976

1988

1993

2004

2012

Construction Properties

Launched the HGT500 gas turbine

Jointly developed the "NBIS" coaxial cable

WAKENET system introduced in the Tokyo

Officer Candidate School Office Bldg. In Etajima

Developed the "Smart Lighting Controller" lighting

generator

communication system using bidirectional CATV

metropolitan area

(air-conditioning and sanitation)

control system, which contributes to power savings

1966

After receiving type approval from the Nippon

with NTT and two other companies

The system is an access control alarm management system for

The Japan Maritime Self Defense Force the First Service School

2013

Engine Generator Association as a power

1990

maintaining building disaster prevention and security, and became

(Imperial Japanese Naval Academy) was transferred from Tsukiji in

No. 2 Marunouchi Telephone

Developed "HA-BEMS" that automates operations,

generator for disaster prevention, the Company

the first of its kind in the Tokyo metropolitan area.

Tokyo to Etajima in August of 1888. The restoration of this

Station Building (air-conditioning

Urbannet Otemachi Building (air-conditioning and electricity)

reduces costs, and efficiently conserves energy

boldly conducted sales activities to promote a

1999

historical building, which is also referred to as the "Western

and heating)

This is the first building in Japan where tenants are exclusively

2015

completely new total energy system in an era

Yokozuna" of red brick architecture, demanded meticulous

First commemorative property after

financial companies. Perfect for an international business hub, the

Kikkoman Noda Head Office Building

when diesel power was at its peak, which

attention to detail and technical expertise.

Started full-scale operations to improve business

founding of the Company. Hibiya

building's electrical facilities were designed to accommodate

(air-conditioning)

resulted in strong sales for emergency and

activities through the use of 3D scanners

Engineering was in charge of the

24-hour dealing and other needs.

Construction of a head office building for Japan's largest soy sauce

disaster prevention use.

2019

air-conditioning and heating work for the

manufacturer. This construction won the Encouragement Award at

1983

newly built No. 2 Marunouchi Telephone

the IBEC 9th Sustainable Building Award.

Shibuya Scramble Square (sanitation)

Station Building.

Launched the "Viviyon Z" electrostatic

charge remover and "Hit Bond" duct

insulation adhesive method

1969

1984

2007

Kinki Denden Building

Launched an electromagnetic

Developed the "NASCA," Nikkey Advanced Security

(air-conditioning, sanitation,

shielding antistatic Elemac sheet

Control Appliance, an access control management

electricity)

1986

system, using contactless IC cards

We successfully completed the construction

2012

of three air-conditioning, sanitation, and

"Deslant," a refrigerant natural

electrical facilities, which in those days was

circulation PAC installation, received

Marunouchi Station Building, Tokyo Station (sanitation)

an academic award

1990

still considered "impossible for the

Company to accomplish alone." This was a

Developed and introduced BAS "BEAT-M21"

2003

monumental property that firmly

Jointly developed by NTT Facilities Inc., Nikkei Kizai Co., Ltd. (now

established Hibiya Engineering as a total

Nikkey Co., Ltd.) and Hibiya Engineering Co., Ltd., this is a

Developed "3E. SUPPORT"

engineering company.

distributed optical network system that monitors and centrally

A system that manages and supports environmental improvement,

manages information on various types of facilities. It has been

energy conservation, and reduction of maintenance and

introduced in major buildings in Kyushu, as well as in Okinawa.

management costs.

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Hibiya Engineering Ltd. published this content on 23 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 December 2022 07:03:01 UTC.