Improving Construction Efficiency through the Integration and Reorganization of Group Subsidiaries

「The Company is also working to operate the business efficiently through subsidiary restructuring, base consolidation, and integrated access and mobile operations.」

「The Company acquired all shares of 株式会社インタラクティブ・コミュニケーション・デザイン and 共栄電業株式会社 and made them subsidiaries, and they were included in the scope of consolidation. エクシオ・エンジニアリング西日本株式会社, a consolidated subsidiary of the Company, acquired some shares of 共栄テレコム株式会社 and made it a subsidiary, and the company was included in the scope of consolidation.」

「While working to operate the business efficiently by restructuring subsidiaries in the Tokyo metropolitan area and consolidating bases in the Fukuoka area of Kyushu, among other measures,」

「During the nine-month period ended [the third quarter], changes in the scope of consolidation consisted of 9 companies added and 7 companies removed.」

「The group also acquired additional shares in 株式会社サンエツ, which has strengths in automated control equipment for office buildings and plants, sanitary and water supply and drainage equipment, and electrical equipment, making it a group company. Through this, the group will strengthen and expand its urban infrastructure business and continue to provide customers with high-value-added services. During the nine-month period ended [the third quarter], the Company acquired an additional 140,155,925 common shares of its consolidated subsidiary Procurri Corporation Limited.」

「Voting rights ratio after the additional acquisition: 97.34% (as of 1 July 2022)」

「In the system solutions business, the Company established 2 core companies for system development and system maintenance and operations and restructured the business, including its existing subsidiaries, with the aim of achieving sustainable growth. In addition to these initiatives, with the intention of further expanding its business, the Company made 株式会社イセキ開発工機, which has established a strong position in the industry as a long-established manufacturer of tunnelling machinery, a subsidiary.」

「During the fiscal year, the Company made 株式会社リョウセイ, which operates a power transmission line installation business, 機動建設工業株式会社, which has extensive experience and strong technical capabilities in trenchless construction, and 光陽エンジニアリング株式会社, which performs piping work including air-conditioning, water supply and drainage, and sanitary facilities and has high construction quality and a strong customer base, subsidiaries. To maximize synergies, the Company strengthened collaboration within the group and began initiatives for personnel exchanges and development.」

「In the urban infrastructure business, with a view to entering the offshore wind power generation business and other areas, the Company entered into a business alliance with 昭和電線ホールディングス株式会社 and made 株式会社リョウセイ, which operates a power transmission line installation business, a subsidiary. The Company is also working to acquire technologies and develop human resources.」

「シーキューブ株式会社, a consolidated subsidiary of the Company, acquired all shares of 東邦工事株式会社 and made it a subsidiary, and the company was included in the scope of consolidation. 株式会社シーキューブ岐阜, a consolidated subsidiary of the Company, conducted an absorption-type merger with 濃尾電設株式会社, another consolidated subsidiary of the Company, and changed its name to 株式会社CaN-TEC.」

「光プログレス株式会社, which had been an equity-method affiliate of the Company, was included in the scope of consolidation because the voting rights ratio exceeded 50%. EXEO GLOBAL Pte. Ltd., a consolidated subsidiary of the Company, acquired all shares of Winner Engineering Pte. Ltd. and made it a subsidiary, and the company was included in the scope of consolidation.」

「From the second quarter of the fiscal year, 株式会社ケイ・テクノス, a consolidated subsidiary of the Company, acquired all shares of 株式会社永和ビルテック and 株式会社永和メンテナンス and made them subsidiaries, and they were included in the scope of consolidation. The Company's consolidated subsidiary エクシオテック conducted an absorption-type merger with the Company's consolidated subsidiaries エクシオネットワーク and フジ電設株式会社. From the third quarter of the fiscal year, the Company acquired some shares of 株式会社シーピーユー and made it a subsidiary, and it was included in the scope of consolidation.」

「Beginning in the second quarter of the current consolidated fiscal year, 北第百通信電気株式会社 and 株式会社サン・プラニング・システムズ were included in the scope of consolidation after the Company acquired all of their shares and made them subsidiaries. 株式会社エクシオテック, a consolidated subsidiary of the Company, absorbed and merged 株式会社エクシオネットワーク and フジ電設株式会社, also consolidated subsidiaries of the Company.」

「Beginning in the first quarter of the current consolidated fiscal year, 株式会社シーキューブトータルサービス, a consolidated subsidiary of the Company, absorbed and merged 株式会社テクノ, also a consolidated subsidiary of the Company.」

「Beginning in the third quarter of the current consolidated fiscal year, 株式会社アドヴァンスト・インフォーメイション・デザイン, a consolidated subsidiary of the Company, absorbed and merged 株式会社ＡＩＤホールディングス, also a consolidated subsidiary. In addition, 株式会社マルチメディア・エンジニアリング was excluded from the scope of consolidation beginning in the third quarter of the current consolidated fiscal year because its liquidation was completed.」

「In addition to integrating Wako Engineering Co., Ltd. and Ikeno Tsuken Co., Ltd., our principal subsidiaries, we integrated 3 subsidiaries engaged in network construction businesses and worked to improve productivity through the restructuring of Group subsidiaries.」