Improving Capital Efficiency Through Business Portfolio Restructuring and a Shift to a Construction-Company-Led Structure

「Following the transfer of all shares of 玉紘工業㈱, which had been included in the Equipment and Maintenance Business in the previous consolidated fiscal year, and its removal from the scope of consolidation, the Equipment and Maintenance Business segment has been discontinued from the interim consolidated accounting period.」

「As all shares of 玉紘工業㈱ were transferred effective 31 May 2025, the company was excluded from the scope of consolidation. In addition, Facility Management Co., Ltd. was absorbed into Nissho Inter Life Co., Ltd., the interior construction business, effective 1 June 2025. Accordingly, the business of Facility Management Co., Ltd., previously included in the facilities and maintenance business, has been included in the interior construction business. As a result, as of 31 August 2025, the Group consisted of the Company and 3 construction subsidiaries, for a total of 4 companies.」

「As all shares of 玉紘工業㈱ were transferred effective 31 May 2025, the company was excluded from the scope of consolidation. In addition, Facility Management Co., Ltd. was absorbed into Nissho Inter Life Co., Ltd., the interior construction business, effective 1 June 2025. Accordingly, the business of Facility Management Co., Ltd., previously included in the facilities and maintenance business, has been included in the interior construction business. As a result, as of 31 August 2025, the Group consisted of the Company and 3 construction subsidiaries, for a total of 4 companies.」

「The Group now consists of 3 businesses and 6 companies: the Company; Nissho Inter Life Co., Ltd. (interior construction); System Engineering Co., Ltd.; Sanken System (sound and lighting equipment); Facility Management Co., Ltd.; and 玉紘工業㈱ (facilities and maintenance).」

「Based on the third-year policy of the medium-term management plan, “Action For The Future,” the Group has worked to secure a position that will lead to the next stage of growth through an organisation centred on the construction company, with promoting management that is conscious of the cost of capital and share price, strengthening earnings power, and developing new businesses, including M&A, as its priority issues.」

「As a result, our Group now comprises 6 companies in total: our company and 5 construction companies, namely ㈱日商インターライフ, ㈱システムエンジニアリング, ファシリティーマネジメント㈱, 玉紘工業㈱ and ㈱サンケンシステム.」

「On 30 November 2023, all shares of Avance Agile were transferred and the company was excluded from the scope of consolidation. On the same date, all shares of Sunken System were acquired and the company became a consolidated subsidiary. As a result, as of 30 November 2023, the Group consisted of the Company and its subsidiaries, comprising 5 construction companies, for a total of 6 companies.」

「Following the transfer of all shares in Largo Corporation, N.I.L. Telecom, and Advantage, which had been included in Other in the previous consolidated fiscal year, and their exclusion from the scope of consolidation, the Other category was discontinued from the cumulative first quarter.」

「Because all shares of ㈱ラルゴ・コーポレーション, ㈱エヌ・アイ・エル・テレコム, and ㈱アドバンテージ, which had been included in "Other" in the previous consolidated fiscal year, were transferred and excluded from the scope of consolidation, the "Other" segment was discontinued from the first six months of the fiscal year under review.」

「As a result, as of 30 November 2022, the Group consisted of the Company and 6 subsidiaries. Because the fiscal year ending February 2023 would feature a structure centered on construction companies, the classification of reportable segments was changed from the first quarter of the consolidated fiscal year.」

「As a result, as of 31 August 2022, the Group consisted of the Company and 6 subsidiaries. Because the fiscal year ending February 2023 would feature a structure centered on construction companies, the classification of reportable segments was changed from the first quarter of the consolidated fiscal year.」

「As a result, the Group now consists of the Company, Nissho Inter Life Co., Ltd., System Engineering Co., Ltd., Facility Management Co., Ltd. and 玉紘工業㈱, the four construction companies, Avance Azyle Co., Ltd., which provides staffing services to communications infrastructure companies and others, and Advantage Co., Ltd., which provides shared services and other functions, for a total of 7 companies.」

「As part of efforts to improve capital efficiency through the restructuring of our Group's business portfolio, we transferred all shares of Largo Corporation on 31 March 2022 and all shares of N.I.L. Telecom Co., Ltd. on 1 April 2022. As a result, the Group now consists of the Company, four construction companies, namely Nissho Inter Life Co., Ltd., System Engineering Co., Ltd., Facility Management Co., Ltd. and 玉紘工業㈱, Avance Azyle Co., Ltd., which provides staffing services to communications infrastructure companies and others, and Advantage Co., Ltd., which provides shared services and other functions for the Group, for a total of 7 companies. From the fiscal year ending February 2023, we will adopt a structure centered on construction operating companies in order to achieve new growth.」