Earnings Capacity, Financial Position and Business Structure Reform under the Three-Year Medium-Term Management Plan

「For fiscal 2026, the final year of the plan, the Group expects revenue and profit to exceed the initial plan targets, taking into account the substantial construction backlog at the beginning of the fiscal year.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” and the current medium-term management plan (fiscal 2024–2026), the Group worked to further strengthen its business foundation and focused on promoting sustainable management that contributes to solving social issues.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” and the first year of the medium-term management plan (fiscal 2024–2026), the Group worked to further strengthen its business foundation and focused on promoting sustainable management that contributes to solving social issues.」

「Under the medium-term management plan (fiscal 2021–2023), the first phase toward the “ideal state in 2030,” the Group pursued various measures under the basic policy of becoming a “truly resilient corporate group,” working to expand stable earnings through further strengthening the competitiveness of its core businesses and achieve sustainable growth and enhanced corporate value over the medium to long term. In fiscal 2023, the final year of the plan, amid increasing uncertainty in the social and economic environment, the Group fell short of its profit targets because it was unable to fully pass on or absorb all cost increases resulting from higher resource and energy prices. However, order intake growth exceeded the initial plan, and ROE recovered to a level above the shareholder capital cost recognised by the Company (5.5–6.5%). The Group therefore considers that efforts to strengthen its earnings base and improve shareholder value are making steady progress. In May this year, the Company formulated a new medium-term management plan (fiscal 2024–2026), the second phase toward realising the long-term vision “ideal state in 2030,” namely, a “truly resilient corporate group that balances the growth of its people with the growth of the company and contributes to the realisation of a sustainable society.”」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” and its first phase, the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Based on the long-term vision setting out the “ideal state in 2030” and the final year of the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” and the final year of the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Based on the long-term vision setting out the “ideal state in 2030” formulated in May 2021 and its first phase, the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” formulated in May 2021 and the second year of the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” formulated in May 2021 and the second year of the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「To address these circumstances, in May 2021 the Group defined its long-term vision of the “ideal state in 2030” as a “truly resilient corporate group that balances the growth of its people with the growth of the company and contributes to the realisation of a sustainable society.” It is currently pursuing the following initiatives, primarily, to realise this vision.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” formulated in May 2021 and the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” formulated in May this year and the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the long-term vision setting out the “ideal state in 2030” formulated in May this year and the medium-term management plan (fiscal 2021–2023), the Group worked to expand stable earnings through further strengthening the competitiveness of its core businesses and pursued various measures to evolve into a “truly resilient corporate group” capable of responding to any future changes in the environment.」

「Under these circumstances, based on the final year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the final year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the final year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Key management indicators under the medium-term management plan (consolidated)」

「Based on the second year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the second year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the second year of the medium-term management plan (fiscal 2018–2020), the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「In the medium-term management plan (fiscal 2018–2020) formulated in May 2018, the Group initially set consolidated key targets for the final year of the plan of revenue of ¥80.5 billion, operating profit of ¥6.5 billion and net income of ¥5.2 billion. After completing the first year of the plan and comprehensively taking into account the business environment surrounding the Company, it decided to revise certain key management indicators for fiscal 2020, the final year of the plan, as follows. (Announced 9 May 2019) Item Fiscal 2020 (Initial plan) Fiscal 2020 (Revised) Revenue ¥80.5 billion ¥80.5 billion Operating profit ¥6.5 billion ¥5.4 billion Net income ¥5.2 billion ¥4.4 billion Equity Approximately ¥40.0 billion Approximately ¥37.5 billion (For reference) Return on equity (ROE) Approximately 13.0% Approximately 11.7%」

「Under these circumstances, based on the medium-term management plan (fiscal 2018–2020) formulated in May 2018, the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the new medium-term management plan (fiscal 2018–2020) formulated in May this year, the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「Under these circumstances, based on the new medium-term management plan (fiscal 2018–2020) formulated in May this year, the Group continued to focus on strengthening the competitiveness of its core businesses and pursued various measures to build a robust management foundation capable of responding quickly, accurately and flexibly to future changes in the business environment.」

「To address these circumstances, the Group formulated in May this year a new medium-term management plan (fiscal 2018–2020) based on the basic policy of “A Challenge for Sustainable Growth.” Under this plan, in addition to strengthening the competitiveness of its core businesses, the Group will take a more proactive approach to measures looking several years ahead and further into the future, including growth investments that contribute to enhancing corporate value, work-style reforms to secure personnel, and improvements in corporate governance. In the medium-term management plan (fiscal 2018–2020) formulated in May this year, the Group set consolidated key targets for the final year of the plan at revenue of ¥80.5 billion, operating profit of ¥6.5 billion and net income of ¥5.2 billion. The Group also continues to regard strengthening its capital base as an important policy. While taking into account the balance with capital efficiency, it aims to maintain and improve financial soundness, and set equity at approximately ¥40.0 billion for the final year of the plan. Based on the key targets, ROE is expected to be approximately 13%, which is presented as a reference figure.」

「Based on the medium-term management plan (fiscal 2014 to fiscal 2017), the Group continued to make every effort to secure construction orders, a source of earnings, and promote sales of paving materials. It also pursued reform of its business structure to build a foundation for growth and further strengthen its management foundation, with the aim of becoming a company that stakeholders will continue to choose for years to come and into the future.」

「Under these circumstances, based on the medium-term management plan (fiscal 2014 to fiscal 2017), the Group continued to make every effort to secure construction orders, a source of earnings, and promote sales of paving materials. It also pursued reform of its business structure to build a foundation for growth and further strengthen its management foundation, with the aim of becoming a company that stakeholders will continue to choose for years to come and into the future.」

「To address these circumstances, the Group had been implementing a medium-term management plan beginning in April 2014 and ending in the fiscal year ending March 2017. Although business performance progressed steadily during this period, room remained for further efforts in implementing the various measures. In light of this and changes in the business environment surrounding the Company in recent years, the Group decided in April this year to defer the formulation of its next medium-term management plan and extend the period covered by the current plan by one year. Looking beyond the post-Tokyo Olympic and Paralympic Games period and further into the future, the Group will continue under the medium-term management plan to deepen its initiatives to improve earning power and strengthen its financial position, while further specifying and embedding its reforms to the business structure aimed at building a foundation for growth and further strengthening its management foundation, thereby advancing its transformation into a company that stakeholders will continue to choose.」

「To address these circumstances, the Group had been implementing a medium-term management plan beginning in April 2014 and ending in the fiscal year ending March 2017. Although business performance progressed steadily during this period, room remained for further efforts in implementing the various measures. In light of this and changes in the business environment surrounding the Company in recent years, the Group decided in April this year to defer the formulation of its next medium-term management plan and extend the period covered by the current plan by one year.」

「Under these circumstances, based on the final year of the three-year medium-term management plan (1 April 2014 to 31 March 2017), the Group continued to make every effort to secure construction orders, a source of earnings, and promote sales of paving materials. It also pursued reform of its business structure to build a foundation for growth and further strengthen its management foundation, with the aim of becoming a company that stakeholders will continue to choose for years to come and into the future.」

「Under these circumstances, based on the final year of the three-year medium-term management plan (1 April 2014 to 31 March 2017), the Group continued to make every effort to secure construction orders, a source of earnings, and promote sales of paving materials. It also pursued reform of its business structure to build a foundation for growth and further strengthen its management foundation, with the aim of becoming a company that stakeholders will continue to choose for years to come and into the future.」

「Under these circumstances, based on the final year of the three-year medium-term management plan (1 April 2014 to 31 March 2017), the Group continued to make every effort to secure construction orders, a source of earnings, and promote sales of paving materials. It also pursued reform of its business structure to build a foundation for growth and further strengthen its management foundation, with the aim of becoming a company that stakeholders will continue to choose for years to come and into the future.」

「Under these circumstances, based on the second year of the three-year medium-term management plan (1 April 2014 to 31 March 2017), the Group continued to focus on securing construction orders, a source of earnings, and sales of products such as asphalt mixtures. To expand its market share, it also actively worked to strengthen its management foundation for the future by reorganising and relocating branch offices and expanding the Group's business locations.」