Komori
Management planning1904TAISEI ONCHO CO.,LTD.Construction and Materials

Notice Regarding the Formulation of the Medium-Term Management Plan “LIVZON DREAM 2030 2nd half!”

The Company formulated the five-year “2nd half!” plan for fiscal 2026 through fiscal 2030 as the successor to “LIVZON DREAM 2030 1st half!”, which concluded in fiscal 2025. Centered on advanced engineering, recurring revenue and productivity improvement, the plan targets consolidated operating profit of ¥7 billion or more for the fiscal year ending March 2031, among other objectives.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
70
¥100 million (consolidated operating profit target for the fiscal year ending March 2031)
Wording
Conditional
How definitive the wording is.

Items stated in the management plan

Formulated
Medium-Term Management Plan “LIVZON DREAM 2030 2nd half!”Plan period FY2026～FY2030
Date of board resolution 13 May 2026 · Publication date 13 May 2026
Operating profit+0.2%
基準 2,026Target2,031Hundreds of millions of yen
ROE+5.0pt
基準 2,026Target2,031%

Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.

Operating profit margin5.0% or higher (the “1st half!” target) → Not disclosed
Only the target level is shown because the current level for comparison was not provided.
What happened to the previous planOperating margin of 5.0% or higher, ROE of 8.0% or higher, EPS of ¥250 or higher, and DOE of 2.5% or higher → Operating margin of 6.4%, ROE of 12.2%, EPS of ¥573, and DOE of 3.8% (fiscal year ending March 2026)+710.4%Calculated from the two disclosed figures
Total investment plan¥19–23 billion (fiscal years ending March 2026 through March 2031)
Investment amount by sectorField Growth Investment / Amount ¥19–23 billion / Details Growth investment in technology, talent, AI/DX and M&A, together with stable investment in real estate, Field Stable investment in real estate / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDOE of 4.0% or higher (fiscal year ending March 2031, excluding share repurchases)The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01Expansion of advanced engineering
02Maximization of recurring revenue
03Productivity Improvement
04Concentration of Management Resources
05Strengthening Technological Capabilities
06Utilization of external partnerships and M&A
07Starting point (customer acquisition and data platform)
08Continuity (recurring revenue × data utilization)
09Expansion (data-driven proposals)
10Division of labor and use of external resources (offshore operations and on-site support)
11Implementation of data integration and promotion of AI utilization
12Standardization of design and construction (BIM and modularization)
13Strengthen recruitment
14Training and reskilling
15Improving employee treatment and engagement
16Strengthening Collaboration with Partner Companies
17Strategic alliances and utilization of M&A
18Strengthening the company-wide risk management framework
19Strengthening crisis response
20Managing and reducing supply chain risk
21Strengthening Corporate Governance
22Decarbonization and energy conservation initiatives
23Expansion of business opportunities
24Clarifying the strategies of group companies
Plan assumptionsExpansion of high-value-added markets centered on data centers and semiconductors, Growing demand for recurring services against a backdrop of higher construction and energy costs, Growing constraints on construction capacity due to labor shortages and the entrenchment of overtime regulations
Non-financial targetsIndicator Order ratio in advanced engineering / Target value 20% or higher / Timing Not disclosed, Indicator Order ratio in maintenance and renovation / Target value 50% or higher / Timing Not disclosed, Indicator Off-site construction adoption rate for medium-sized and larger projects / Target value 80% / Timing Not disclosed, Indicator Revenue per employee on a domestic non-consolidated basis / Target value 30% increase from the fiscal year ending March 2026 / Timing Not disclosed
Risks identified by the company
Natural disasters, accidents and other events
Cybersecurity
Cost, quality, delivery schedules and safety
Environmental, human rights and legal compliance risks
Reason for revision or withdrawal

Updating the growth strategy based on changes in the assumptions that occurred while promoting “1st half!”

Items stated in the management plan
ItemDetails
Plan nameMedium-Term Management Plan “LIVZON DREAM 2030 2nd half!”
Plan periodFY2026～FY2030
Progress against the planFormulated
Operating profit target¥3.9 billion (actual for the fiscal year ending March 2026) → ¥7 billion or more (fiscal year ending March 2031)
Operating profit margin target5.0% or higher (the “1st half!” target) → Not disclosed
ROE target12.2% (actual for the fiscal year ended March 2026) → 12.0% or higher (fiscal year ending March 2031)
Payout ratio / DOE policyDOE of 4.0% or higher (fiscal year ending March 2031, excluding share repurchases)
Total investment plan¥19–23 billion (fiscal years ending March 2026 through March 2031)
Investment amount by sectorField Growth Investment / Amount ¥19–23 billion / Details Growth investment in technology, talent, AI/DX and M&A, together with stable investment in real estate, Field Stable investment in real estate / Amount Not disclosed
Non-financial targetsIndicator Order ratio in advanced engineering / Target value 20% or higher / Timing Not disclosed, Indicator Order ratio in maintenance and renovation / Target value 50% or higher / Timing Not disclosed, Indicator Off-site construction adoption rate for medium-sized and larger projects / Target value 80% / Timing Not disclosed, Indicator Revenue per employee on a domestic non-consolidated basis / Target value 30% increase from the fiscal year ending March 2026 / Timing Not disclosed
Plan assumptionsExpansion of high-value-added markets centered on data centers and semiconductors, Growing demand for recurring services against a backdrop of higher construction and energy costs, Growing constraints on construction capacity due to labor shortages and the entrenchment of overtime regulations
Key initiativesExpansion of advanced engineering, Maximization of recurring revenue, Productivity Improvement, Concentration of Management Resources, Strengthening Technological Capabilities, Utilization of external partnerships and M&A, Starting point (customer acquisition and data platform), Continuity (recurring revenue × data utilization), Expansion (data-driven proposals), Division of labor and use of external resources (offshore operations and on-site support), Implementation of data integration and promotion of AI utilization, Standardization of design and construction (BIM and modularization), Strengthen recruitment, Training and reskilling, Improving employee treatment and engagement, Strengthening Collaboration with Partner Companies, Strategic alliances and utilization of M&A, Strengthening the company-wide risk management framework, Strengthening crisis response, Managing and reducing supply chain risk, Strengthening Corporate Governance, Decarbonization and energy conservation initiatives, Expansion of business opportunities, Clarifying the strategies of group companies
Results under the previous planOperating margin of 5.0% or higher, ROE of 8.0% or higher, EPS of ¥250 or higher, and DOE of 2.5% or higher → Operating margin of 6.4%, ROE of 12.2%, EPS of ¥573, and DOE of 3.8% (fiscal year ending March 2026)
Reason for revision or withdrawalUpdating the growth strategy based on changes in the assumptions that occurred while promoting “1st half!”
Risks identifiedNatural disasters, accidents and other events, Cybersecurity, Cost, quality, delivery schedules and safety, Environmental, human rights and legal compliance risks
Date of board resolution13 May 2026
Publication date13 May 2026
Items this document does not state (8)
Sales TargetNet income targetROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceSegment targetSize of the Target Market

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

To update the growth strategy based on changes in the assumptions that occurred while promoting “1st half!”, with the aim of achieving the long-term management vision “LIVZON DREAM 2030” formulated in 2021. The Company identifies the expansion of high-value-added markets, increasing demand for recurring services and growing constraints on construction capacity as changes in the external environment.

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