CHUDENKO CORPORATION

The Chudenko Group is an integrated facilities engineering company centered on electrical installation work, comprising the Company, 19 subsidiaries, 9 affiliated companies and 1 other affiliated company. Its principal business is facilities construction, including indoor electrical work, air-conditioning and plumbing work, information and communications work, distribution line work, and underground transmission and substation line work. 三親電材株式会社 and 10 other domestic companies undertake construction work, ㈱イーペック広島 handles design and cost estimation, and 三親電材株式会社 supplies materials. Overseas, the Group has subsidiaries and consolidated affiliated companies engaged in facilities construction, including CHUDENKO(MALAYSIA) SDN. BHD., RYB ENGINEERING PTE LTD and RYBE ENGINEERING（M） SDN. BHD. It also has operations in Vietnam, including SHOWA VIETNAM CO., LTD and SHOWA TECH VIETNAM CO., LTD. In Malaysia and Singapore, these include IAQ TECHNOLOGY INTERNATIONAL SDN. BHD. and R&L ENGINEERING SDN. BHD., while in Singapore they include ELEVATE ENGINEERING SOLUTION PTE. LTD. According to the business organization chart, the Group has a cooperative relationship with the Chugoku Electric Power Group (中国電力株式会社) and undertakes and performs electrical and other construction work for that group. Its principal customer is the Chugoku Electric Power Group, and sales by customer were as follows. Sales to the Chugoku Electric Power Group were ¥41,146 million, or 18.5%, in the prior consolidated fiscal year and ¥44,840 million, or 19.7%, in the current consolidated fiscal year. Total assets were ¥317,819 million at the end of the prior consolidated fiscal year and ¥317,819 million at the end of the current consolidated fiscal year, rather than the equivalent ¥317.819 billion figure. In line with its corporate history, the Company revised its market segment classification in April 2022, moving from the First Section of the Tokyo Stock Exchange to the Prime Market. The Company is implementing Medium-Term Management Plan 2027 for fiscal 2025 through fiscal 2027. Its medium-term targets for fiscal 2027 are consolidated net sales of ¥260 billion, operating income of ¥28 billion and ROE of at least 8.5%. Under its 2030 Vision, it aims for net sales of ¥300 billion, operating income of ¥30 billion and ROE of at least 9.0%. Its medium- to long-term growth drivers include strengthening sales and construction capabilities, promoting DX and improving operational efficiency, advancing environment-related businesses, including the PPA business and grid-scale battery storage business, and expanding its operations through M&A. Key business-environment uncertainties include persistently high raw material prices, labor shortages and the impact of the situation in the Middle East.