Building a stable profit structure and managing country risk in the international construction business

「③国際事業 当セグメントは主に海外土木工事及び海外建築工事の売上により構成されております。当セグメントの売上高 は、工事が概ね順調に進捗したことから、前年同四半期比48.7％増の9,159百万円となりましたが、主に建築子会 社の損益悪化によりセグメント損失は401百万円（前年同四半期は95百万円のセグメント損失）となりました。」

「Segment revenue decreased 22.0% year on year to ¥36,290 million, owing to delays in commencing civil engineering projects, the deferral of orders and lost orders at an architectural construction subsidiary, while the segment loss widened to ¥2,363 million, compared with a segment loss of ¥802 million in the previous year, owing to lower revenue and a decline in expected design-change awards, among other factors.」

「Segment revenue decreased 3.2% year on year to ¥14,592 million, while the segment loss was ¥356 million, compared with a segment loss of ¥693 million in the previous year. The Company's standalone order intake for overseas construction decreased by ¥12,950 million year on year, or 91.5%, to ¥1,204 million, reflecting the reaction to the award of a large-scale civil engineering project in Singapore in the previous year.」

「Segment revenue decreased 4.2% year on year to ¥15,079 million, while the segment loss was ¥693 million, compared with a segment loss of ¥163 million in the previous year. The Company's standalone order intake for overseas civil engineering and building construction increased by ¥7,270 million year on year, or 105.6%, to ¥14,155 million, owing in part to the award of a large-scale civil engineering project in Singapore. During the current interim consolidated accounting period, IN Infra Australia Pty Ltd was included in the scope of application of the equity method following the acquisition of its shares.」

「Segment revenue increased 35.8% year on year to ¥33,120 million, owing to progress on a large-scale civil engineering project, while the segment loss was ¥553 million, compared with a segment loss of ¥3,849 million in the previous year.」

「③ International Business This segment primarily comprises revenue from overseas civil engineering and building construction. Segment revenue increased 55.1% year on year to ¥23,655 million, owing to progress on a large-scale civil engineering project, while the segment loss was ¥508 million, compared with a segment loss of ¥3,603 million in the same quarter of the previous year. The Company's standalone order intake for overseas civil engineering and building construction decreased by ¥33,781 million year on year, or 86.0%, to ¥5,485 million, reflecting the reaction to the award of a large-scale civil engineering project in the same quarter of the previous year.」

「③ International Business This segment primarily comprises revenue from overseas civil engineering and building construction. Segment revenue increased 41.8% year on year to ¥15,732 million, while the segment loss was ¥163 million, compared with a segment loss of ¥794 million in the same quarter of the previous year. The Company's standalone order intake for overseas civil engineering and building construction decreased by ¥34,122 million year on year, or 83.2%, to ¥6,884 million.」

「③ International Business This segment primarily comprises revenue from overseas civil engineering and building construction. Segment revenue increased 49.8% year on year to ¥7,699 million, while the segment loss was ¥104 million, compared with a segment loss of ¥43 million in the same quarter of the previous year.」

「• International business: Strengthen the framework for undertaking ODA projects in civil engineering and projects for foreign-affiliated companies in building construction」

「① Civil engineering business Revenue in this segment increased 1.7% year on year to ¥91,291 million, while segment profit decreased 31.6% year on year to ¥7,605 million, mainly because the gross profit margin on completed overseas construction contracts declined.」

「Standalone civil engineering orders increased by ¥33,987 million, or 117.0%, year on year to ¥63,045 million. Domestic construction orders declined, but overseas construction orders increased.」

「Standalone civil engineering orders increased by ¥45,592 million, or 79.0%, year on year to ¥103,268 million, as both domestic and overseas construction orders increased.」

「Overseas civil engineering business: Focus on ODA projects in transport infrastructure, mainly tunnels, drawing on the company's extensive construction track record and technical expertise. • Overseas building construction business: Build a track record in building projects and expand transactions with local and foreign-affiliated customers.」

「Operating profit decreased by ¥4,363 million, or 24.5%, year on year to ¥13,461 million, as gross profit on completed construction contracts declined in domestic civil engineering and overseas construction.」

「Operating profit decreased by ¥2,089 million, or 21.4%, year on year to ¥7,683 million, as gross profit on completed construction contracts declined in domestic civil engineering and overseas construction.」

「In the overseas business, we are carrying out organizational restructuring to create a more competitive organization, including establishing the International Business Division's base in Singapore in April this year. Going forward, we will seek to shift to a business that provides valuable services tailored to the needs of each country of operation in a timely manner.」

「Standalone civil engineering orders increased by ¥5,970 million, or 13.8%, year on year to ¥49,231 million, due to an increase in domestic private-sector construction orders. Standalone building construction orders decreased by ¥36,414 million, or 28.3%, year on year to ¥92,379 million, as both domestic and overseas construction orders declined.」

「Standalone civil engineering orders decreased by ¥8,461 million, or 26.9%, year on year to ¥23,050 million, due to declines in domestic government and overseas construction orders. Standalone building construction orders decreased by ¥25,459 million, or 23.1%, year on year to ¥84,698 million, as both domestic and overseas construction orders declined.」

「Standalone civil engineering orders decreased by ¥3,204 million, or 39.9%, year on year to ¥4,830 million, as both domestic and overseas construction orders declined.」

「In the overseas business, we will seek to shift from an expansion strategy centered on large civil engineering projects to a business that provides valuable services tailored to the needs of each country of operation, in coordination with the domestic business.」

「Standalone civil engineering orders decreased by ¥55,342 million, or 56.1%, year on year to ¥43,260 million. Although domestic private-sector orders increased, overseas construction and domestic government orders declined. Standalone building construction orders increased by ¥3,451 million, or 2.8%, year on year to ¥128,793 million. Although domestic private-sector orders declined, overseas construction orders increased.」

「Standalone civil engineering orders increased by ¥396 million, or 1.3%, year on year to ¥31,512 million. Although overseas construction orders declined, domestic government and private-sector orders increased. Standalone building construction orders increased by ¥24,376 million, or 28.4%, year on year to ¥110,157 million, as domestic private-sector and overseas construction orders increased.」

「Standalone civil engineering orders decreased by ¥432 million, or 5.1%, year on year to ¥8,034 million, due to a decline in overseas construction.」

「Overseas construction accounted for 5.2% of orders received during the 80th fiscal year and 10.3% during the 81st fiscal year.」

「Standalone civil engineering orders increased by ¥25,636 million, or 35.1%, year on year to ¥98,603 million, as overseas construction orders increased despite declines in domestic government and private-sector projects.」

「Standalone civil engineering orders increased by ¥17,474 million, or 31.5%, year on year to ¥72,966 million. This was despite a decline in overseas construction orders, as the company won large road tunnel and other projects in the Tokyo metropolitan area.」

「Standalone civil engineering orders increased by ¥30,215 million, or 192.6%, year on year to ¥45,903 million. This was despite a decline in overseas construction orders, as the company won large infrastructure-related projects in Japan.」

「In the overseas construction business, we are further strengthening country-risk management, including the impact of differences in business practices, and working to establish a structure that secures stable profits.」