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Corporate Purpose and Core Business

• The company's purpose is "As an evolving comprehensive equipment company, we connect people, society, and the future", with two core business segments: architectural equipment construction and power transmission and distribution equipment construction, plus additional related businesses including renewable energy, leasing, CAD development, and PPP projects.
• Architectural equipment construction designs and constructs indoor electrical wiring and plumbing equipment for various buildings; power transmission and distribution equipment construction designs, constructs, and maintains power companies' transmission and distribution infrastructure. The two segments operate in distinct business environments with different required skillsets.

Review of Medium-Term Management Guidelines 2025

• All consolidated numerical targets (100 billion yen net sales, 6 billion yen operating profit, 8% ROE) were achieved one year ahead of schedule in 2024 fiscal year, driven by favorable external tailwinds, improved order profitability, and strict cost management.
• ROE has improved steadily thanks to efforts to expand profit and enhance shareholder returns aligned with the August 2023 basic policy; both share price and PBR have risen sharply since fiscal 2023, with share price hitting a new all-time high above 1,900 yen and PBR exceeding 1.3x as of February 2026.

Key Strategic Themes for Medium-Term Management Guidelines 2030

• The seven core priority themes are: 1) Secure medium- to long-term construction capacity for sustained growth; 2) Expand construction capacity in large metropolitan areas; 3) Respond to increased transmission and distribution equipment needs driven by growing power demand; 4) Mitigate risks including rising material and subcontractor costs and procurement difficulties; 5) Contribute to a carbon-neutral society through equipment construction; 6) Generate added value and improve productivity through DX and AI utilization; 7) Implement ESG-focused management.

Growth Strategy by Region and Segment

• The core strategic approach is to maintain stable profitability in the Shikoku region while significantly expanding the profit base for architectural equipment construction in the Tokyo metropolitan area and Kansai region, with sustained investment in human capital as the foundational driver of growth.
• In the Tokyo metropolitan area and Kansai region, where construction demand is strong, the company will expand construction capacity to support order growth and strengthen the air conditioning and piping construction segments.
• In the company's home base of Shikoku, the company will improve construction profitability for architectural equipment construction while accurately responding to growing renewal demand for transmission and distribution equipment.

Cash Allocation Policy

• Over the 5-year mid-term plan period, the company expects to generate approximately 55 billion yen in cash flow, with allocation as follows: 20 billion yen to human capital investment, 15 billion yen to business investment, and 20 billion yen to shareholder returns. This allocation represents priority ranking for cash used in business activities, and does not fully align with accounting profit/cash flow as many investments (including most human capital spending) are recorded as accounting expenses.
• 20 billion yen in human capital investment will fund planned hiring, training infrastructure improvements to raise construction capacity and productivity, plus salary increases and performance-linked bonuses to improve employee engagement.
• 15 billion yen in business investment will be allocated to M&A, decarbonization-related projects, and DX initiatives.

Human Capital Management

• The company will maintain a structured talent management cycle of hiring, training, and result reinvestment/return: Hiring will target approximately 100 new hires annually (focused on new graduates) while pursuing diversity through increased hiring of women, mid-career professionals, and foreign engineers.
• Training will combine planned development placements and on-the-job training to raise overall technical capability; a new training facility is scheduled to open in spring 2028 as part of improved training infrastructure.
• The company will set KPIs to track progress on human capital investment over the medium to long term, as returns on this investment are not realized in the short term, with the goal of making human capital status transparent to drive long-term profit growth and enterprise value improvement.

Business Investment Priorities

• The company will continue to actively pursue M&A opportunities, expand new profit bases in the decarbonization sector by leveraging its core equipment construction strengths, and explore all opportunities to implement DX (including AI utilization) to mitigate the impact of population aging and declining birthrates on the labor-intensive construction industry.

Updated Shareholder Return Policy

• The company has added a new 5.0% target for DOE (dividend on equity) alongside its existing target of approximately 60% consolidated payout ratio, and will maintain dividend levels that meet both targets.
• The existing policy of not cutting dividends even in cases of temporary profit decline will be maintained under the new DOE framework. This policy is designed to return profit growth to shareholders appropriately while limiting accumulation of net assets to improve long-term capital efficiency and optimize capital structure.

• The Medium-Term Management Guidelines 2030 covers the 5-year period from fiscal 2026 to fiscal 2030, with a consolidated net sales target of 120 billion yen (an increase of 20 billion yen from the projected fiscal 2025 result) and a consolidated operating profit target of 11 billion yen (an increase of 3 billion yen from the projected fiscal 2025 result).
• The company targets a 10% ROE by the end of the mid-term plan, achieved through both profit growth and expanded shareholder returns.
• Annual hiring is targeted at approximately 100 new hires, focused on new graduates with additional efforts to increase workforce diversity.

The provided transcript only discloses consolidated performance for the previous mid-term plan (Medium-Term Management Guidelines 2025) and does not provide separate financial data or revenue contribution percentages for individual product segments. Consolidated performance for 2024 fiscal year: net sales of 105.8 billion yen, operating profit of 8 billion yen, ROE of 8.2%, which achieved all original 2025 fiscal year targets one year ahead of schedule. The company expects to broadly meet all 2025 fiscal year targets in the final year of the current mid-term plan.

• The company identifies the following key industry and operational risks: ongoing structural changes in Japan including overconcentration of population and economic activity in Tokyo, rising prices and labor costs, and aging population/declining birthrates, which will impact the construction industry over the medium to long term.
• Rising material and equipment prices, rising subcontractor costs, and increasing procurement difficulties are recognized as key risks to be mitigated over the plan period.
• Labor shortages driven by aging population and declining birthrates create material headwinds for the labor-intensive construction industry, which the company will address through DX and AI-driven productivity improvements.

No question and answer section is included in the provided transcript.