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• Leadership and Company Background: - New President Tomomi Nakayama, appointed April 2025 with a 20+ year sales background focused on asphalt plant operations, confirmed the firm grew revenue approximately 1.5x since its 2019 centennial via aggressive capital investment and M&A, with the prior fiscal year delivering another record high result. - The firm's 2030 vision is 'Building a world of strong, gentle communities,' targeting 70 billion yen in total revenue, 10% operating profit margin, and 50 billion yen market capitalization.

• New 2025-2027 mid-term plan, a growth expansion phase following the prior period's internal investment phase, sets a final 2027 fiscal year target of 60 billion yen consolidated revenue, 8%+ operating profit margin, 8% ROE, and 40 billion yen market capitalization (equivalent to a 1,000 yen share price). • Operating income targets: 3 billion yen for FY2025, rising to 5.2 billion yen by FY2027. • Dividend guidance: Maintains a 60%+ payout ratio, with planned dividends of 34 yen per share FY2025, 40 yen per share FY2026, and 50 yen per share FY2027. At current share prices, the 2027 dividend implies a dividend yield exceeding 7%. • Total projected 3-year cash inflow of 15.9 billion yen, allocated to 6 billion yen in capital expenditure, 5 billion yen for M&A, and 4.9 billion yen for shareholder returns (a 1.4 billion yen increase from the prior mid-term's shareholder return allocation). • Capital structure policy targets maintaining an equity ratio above 50% to support disciplined financial management. • 2030 long-term guidance targets 70 billion yen total revenue, 10% operating margin, 50 billion yen market capitalization, and 1,250 yen share price.

For the previous 2022-2024 mid-term period, aggregate performance achieved record all-time high results even though full period numerical targets were not met, with performance varying widely across segments. Four of the firm's six operating segments already achieve operating profit margins above 10% as of the end of the previous mid-term. Only the AP (Asphalt Plant) Related segment delivered underperformance in the prior period, though management expects it to become a key growth driver in the new 2025-2027 mid-term. Specific segment outlooks for the new period: 1) AP (Asphalt Plant) Related: Positions the segment as a core future growth driver, benefiting from rising capital investment appetite among large paving contractors and strong tailwinds from energy conservation subsidies. It targets V-shaped revenue and profit recovery after hitting a bottom in the prior period. 2) BP (Batcher Plant) Related: A stable, steady segment with a consistent market and stable customer profitability, expected to deliver continued planned capital investment demand. 3) Environment Conveying: Limited large growth is projected, but the market remains steady and the segment has resilient, stable profitability; conservative profit plans are set for the mid-term with no expected large deviations. 4) Crushing Related: Heavily exposed to imported products from Germany, making it sensitive to exchange rate fluctuations. The firm recently added an in-house developed original soil improvement machine to its product line, and will expand in-house product offerings to reduce exchange rate risk and improve profitability. 5) Manufacturing Contracting: Centered on two M&A-acquired firms (Ube Koki and Matsuda Kiko), this is a stable, high-performing segment expected to maintain its current solid performance. 6) Other Businesses: Includes waterproof panels, floodgates, temporary equipment, and agricultural tools; growing demand driven by intensifying natural disasters, with solid performance expected, and M&A is targeted to drive further expansion by 2027. Revenue contribution percentages were not provided in the transcript.

• Global economic slowdowns in overseas markets (China, Thailand) led to the prior mid-term plan missing its overall numerical targets, creating lingering uncertainty for international expansion. • The AP segment has a history of underperformance, though it is now positioned for recovery. • The crushing related segment faces high exposure to exchange rate fluctuations from its large share of German imported products. • PBR has consistently traded below 1x, creating pressure to improve shareholder returns and market valuation. • M&A targets may not materialize as planned over the 3-year mid-term period.

Q: As newly appointed President, what do you see as Nikko's core strengths, key challenges, and your strategic priorities for the firm? / A: Full answers for all Q&A exchanges were not included in the truncated transcript. The question asks for the new leader's perspective on strengths, weaknesses, and direction, which is a core query for this strategic mid-term plan briefing. Explicit answers were cut off in the provided source material.

Q: What is the turnaround plan for Nikko's Thailand business? / A: This exchange focuses on the restructuring of the firm's Thai operations, a key international underperforming asset cited as a drag on prior period results. Full details of the answer were not included in the provided truncated transcript.

Q: What are the specific plans to improve profitability for the AP (Asphalt Plant) segment? / A: This question asks for granular details on the turnaround of Nikko's largest underperforming core segment, which is central to the new mid-term plan's success. Full answer details were not included in the truncated source transcript.

Q: How will expected sewer construction demand impact mid-term plan performance targets? / A: This question addresses a major potential source of new infrastructure demand that could move results above or below current guidance. Full answer details were cut off in the provided transcript.

Q: If no targeted M&A deals are completed over the mid-term period, how will the allocated 5 billion yen in M&A capital be reallocated? What sectors are targeted for M&A? What is your 2027 ROE target? / A: These additional core questions cover capital allocation strategy, M&A priorities, and a key profitability target, but full answers were not included in the truncated provided transcript.