Selective Acceptance of High-Quality Orders and a Profitability-Focused Execution Structure

「We will focus on reducing construction costs and shortening construction periods in order to further increase gross profit on completed construction contracts, while also」

「Against this backdrop, the Group's core construction business actively pursued orders in new civil engineering fields in addition to its specialty of water supply and sewerage works to improve profitability, while working to shorten construction days and reduce construction costs to further increase gross profit on completed construction contracts. In the construction business, order intake was ¥912.473 million, down 63.5% year on year, net sales were ¥2,292.086 million, up 17.0%, and segment profit (operating profit) was ¥284.175 million, up 24.7%.」

「To further increase gross profit on completed construction, we focused on thoroughly reducing construction costs and shortening construction periods, while actively pursuing orders in new civil-engineering fields in addition to the water and sewerage projects in which we specialise. In the construction business, orders were ¥4,931.202 billion, up 37.8% year on year; revenue was ¥3,181.359 billion, up 0.3%; and segment profit (operating profit) was ¥330.478 million, up 106.8%.」

「Against this backdrop, the Group's core construction business focused on further reducing construction costs and shortening construction periods to increase gross profit on completed construction contracts. It also pursued new orders for water supply and sewerage works commissioned by the Tokyo Metropolitan Government to offset the decline in construction volume resulting from the concentration of project completions in the consolidated fiscal year. In the construction business, order intake was ¥2,498.020 million, down 20.6% year on year, net sales were ¥1,959.716 million, up 5.0%, and segment profit (operating profit) was ¥227.890 million, up 63.3%.」

「Against this backdrop, in the construction business we worked even harder to reduce construction costs and enforce construction management in order to improve gross profit on completed construction. To expand our business base and increase order volume, we also actively pursued river works, road improvement works and other projects in addition to our core water and sewerage business.」

「We will focus on securing orders for highly profitable mechanised pipe-jacking work while actively pursuing orders in new civil-engineering fields outside water and sewerage construction.」

「Against this backdrop, the Group's core construction business worked to shorten construction periods and reduce costs to improve productivity, while actively pursuing orders for port and river works, paving works and other projects in addition to its core water supply and sewerage works. In the construction business, order intake was ¥3,578.696 million, down 19.6% year on year, net sales were ¥3,171.540 million, up 23.6%, and segment profit (operating profit) was ¥159.814 million, up 71.1%.」

「We worked to secure water and sewerage projects centred on highly profitable mechanised special pipe-jacking work, while actively pursuing orders in new fields such as port and river works. In the construction business, orders were ¥3,147.289 billion, up 45.6% year on year; revenue was ¥1,866.652 billion, up 15.6%; and segment profit (operating profit) was ¥139.549 million, up 334.7%.」

「In our group’s core construction business, we actively pursued orders for port and river works and other projects outside our core water and sewerage business, with the aim of developing the civil-engineering field and expanding the scale of the business,」

「In addition to the water and sewerage projects in which we specialise, we actively pursued orders in new fields such as river works. In the construction business, orders were ¥4,450.652 billion, up 211.2% year on year.」

「To secure and expand the volume of orders for projects commissioned by the Tokyo Metropolitan Government, we actively pursued orders in new fields, including projects commissioned by the Finance Bureau and Construction Bureau, in addition to the water and sewerage projects commissioned by the Bureau of Waterworks and Sewerage, our area of expertise. In the construction business, orders were ¥2,161.232 billion, up 266.3% year on year, and revenue was ¥1,615.380 billion, up 9.4%.」

「In addition, effective 1 October, we carried out an absorption-type merger in which the consolidated subsidiary 港シビル株式会社 was the surviving company and the former consolidated subsidiary 山栄テクノ株式会社 was the absorbed company.」

「In the construction business, our group will seek orders for mechanised pipe-jacking work using the Do-Jet method, in which we specialise, while also actively pursuing orders in new fields such as port and river works, which can be completed in a shorter period than water and sewerage projects, in an effort to increase revenue and operating profit.」

「Against this backdrop, the Group's core construction business continued efforts to increase gross profit on completed construction contracts by shortening construction periods and reducing construction costs. To develop new business fields and expand the scale of its operations, it also proceeded with making Minato Civil Co., Ltd., a construction company with strong technical capabilities and a track record in port and river works commissioned by the Tokyo Metropolitan Government, a subsidiary.」

「In the construction business, we worked to strengthen our structure for increasing the volume of construction work, with the aim of consistently recognising and steadily increasing completed-construction revenue and gross profit on completed construction. Orders were ¥5,490 million, up 41.0% year on year; revenue was ¥3,974 million, down 11.7%; and segment profit (operating profit) was ¥449 million, up 34.9%.」

「We selectively accepted highly profitable water and sewerage projects and worked to strengthen the order-taking and construction structures of our subsidiaries. In the construction business, orders were ¥3,893 million, up 70.5% year on year; revenue was ¥4,503 million, up 45.0%; and segment profit (operating profit) was ¥333 million, up 6.7%.」

「Against this backdrop, in its core construction business the company actively recruited construction managers, pursued orders for water supply and sewerage projects in Tokyo and focused on strengthening the order intake and construction capabilities of its subsidiaries, with the aim of increasing revenue from completed construction contracts and gross profit on completed construction contracts.」

「Against this backdrop, in its core construction business the company continued to selectively accept water supply and sewerage projects in the Tokyo area and focused on strengthening the order intake and construction capabilities of its subsidiaries, Iguchi Construction Co., Ltd. and Sanei Techno Co., Ltd., in order to increase revenue from completed construction contracts and gross profit on completed construction contracts.」

「In addition to selectively accepting water and sewerage projects in the Tokyo area, we acquired the shares of 井口建設株式会社, which conducts a civil-engineering business in Yamanashi Prefecture, and made it a subsidiary, with the aim of expanding our business base, increasing completed-construction revenue and gross profit on completed construction, and securing excellent construction-management engineers.」

「Accordingly, while continuing to selectively secure high-quality orders, we will actively consider acquiring and making subsidiaries of reputable construction companies with excellent technical and construction-management personnel, in order to expand the scale of our civil-engineering business, increase civil-engineering income and add construction-management engineers.」

「Against this backdrop, in our core construction business, we continued to selectively accept highly profitable water and sewerage projects in the Tokyo area. At 山栄テクノ, a subsidiary that performs small-diameter pipe-jacking work, we also pursued orders mainly in the areas surrounding Tokyo, while the group worked to further reduce construction costs and improve construction income.」

「Against this backdrop, in our core water and sewerage construction business, we have worked to secure stable recognition of completed-construction revenue and construction income by selectively accepting high-quality projects, while improving our technical capabilities and reducing construction costs.」

「While continuing to selectively secure high-quality orders, we will continue to actively recruit construction management personnel, strengthen our construction structure and gradually increase the volume of construction projects undertaken.」

「For the time being, we will selectively secure high-quality orders and conduct operations based on a construction structure that places even greater emphasis on profitability than before.」