Strengthening production capacity, alliances and specialist organizations to support an integrated operating structure

「Material changes in the scope of consolidation during the cumulative period of the current quarter: Yes Newly included: 2 companies (names) 東栄技工株式会社 and 1 other; excluded: 0 companies (names) -」

「We entered into a share transfer agreement aimed at making 東栄技工株式会社, which has advanced welding technology and an extensive track record in repair and maintenance, a wholly owned subsidiary.」

「While implementing the Medium-Term Management Plan launched in FY2023, our Group has worked to further strengthen budgetary control, respond to restart construction at nuclear power plants and expand construction areas, win an EPC order for a woody biomass power plant from Yokote-Yuzawa Forest Cycle Co., Ltd., in which we hold a partial stake, execute construction work for a natural gas-fired power plant, and establish an Overseas Business Division to build an integrated management structure for overseas operations.」

「Strengthening the management structure for construction contracts」

「M&A to strengthen engineering capabilities and mobilization capacity」

「In July, the company launched the Safety and Quality Division to strengthen the safety and quality management that forms the foundation of its construction business.」

「In July, the company launched the Safety and Quality Division to strengthen the safety and quality management that forms the foundation of its construction business.」

「Establishing an equipment management system to create an efficient construction structure, ensure thorough contracting based on responsible construction, and make effective use of equipment and materials throughout the company」

「The Group is advancing its medium-term management plan from fiscal 2020 and, with a view to expanding its business areas, established an engineering-focused subsidiary last August to secure orders for EPC (Engineering, Procurement, Construction) projects.」

「In addition to its existing businesses, the company has been pursuing initiatives targeting the fields of design and materials procurement. In August 2021, it established the engineering-focused subsidiary 太平エンジニアリングサービス株式会社 and is working to establish an order-taking structure to expand its business further.」

「At a meeting of its Board of Directors held on 8 July 2021, the company resolved to establish a subsidiary and established it on 2 August 2021 as follows.」

「In addition to researching trends and pursuing orders in new fields such as fuel conversion, the company worked to strengthen its contracting structure in existing businesses through efficient personnel allocation, training construction managers, and identifying new subcontractors.」

「Launching a new organization to enter the wind power generation sector (formation of the Wind Energy Project)」

「Launching a new organization to enter the wind power generation sector (formation of the Wind Energy Project)」

「During the current consolidated fiscal year, the company introduced a production management system (software) to further improve productivity.」

「The company has established the Hokuriku Branch to build an organizational structure capable of responding flexibly and promptly to changes in the external environment and demand for construction work, secure stable orders, and participate in numerous new construction projects. In addition, it has established the Power Business Division to strengthen its operating and maintenance structure for power plants.」

「The company established the Hokuriku Branch to build an organizational structure capable of responding flexibly and promptly to changes in the external environment and demand for construction work, secure stable orders, and participate in numerous new construction projects. In addition, it established the Power Business Division to strengthen its operating and maintenance structure for power plants.」

「新東洋ロール株式会社, which was a consolidated subsidiary at the end of the previous consolidated fiscal year, was excluded from the scope of consolidation after completing its liquidation during the current consolidated fiscal year.」

「Through the reorganization of its subsidiaries and the organizational restructuring carried out in the previous fiscal year, the Group sought to respond flexibly and promptly to changes in industry and the business environment, secure a stable volume of orders, and establish a robust construction execution structure.」

「Against this business backdrop, our Group sought to respond flexibly and quickly to changes in industry and the business environment through the organizational development and reorganization of subsidiaries carried out in the previous fiscal year, thereby securing stable orders and establishing a robust construction system. We also worked to establish an integrated structure covering design, manufacturing, construction, operation, maintenance, repair and dismantling in order to enhance corporate value and earnings power and achieve sustainable growth, including through effective use of our own factories, whose manufacturing capacity has improved.」

「On 20 March 2018, our company entered into a share transfer agreement with the shareholders of ㈱日本機械製作所, and on 30 March of the same year acquired all of the company's shares and made it a subsidiary.」

「Against this business backdrop, our Group launched in April this year the Medium-Term Management Plan (FY2017–FY2019), centered on the continued development and expansion of the corporate platform and securing the earnings platform and establishing an integrated operating structure. With business development based on the premise that governance systems will function soundly, we worked to comply with relevant laws and regulations, promote work-style reform, strengthen the construction system by expanding the functions and authority of branches, and further expand sales activities through the establishment of the Tokyo Branch and Wakasa Branch. We also worked to win orders for construction of thermal power generation facilities, prepare for the O&M business, prepare for the planned ownership of the Seifu Shinto Biomass Power Plant (Hiroshima, Hiroshima Prefecture), and bring our own factories, whose production capacity has improved, into full operation.」

「With business development based on the premise that governance systems will function soundly, we worked to comply with relevant laws and regulations, promote work-style reform, strengthen the construction system by expanding the functions and authority of branches, and further expand sales activities through the establishment of the Tokyo Branch and Wakasa Branch. We also worked to win orders for construction of thermal power generation facilities, prepare for the O&M business, prepare for the planned ownership of the Seifu Shinto Biomass Power Plant (Hiroshima, Hiroshima Prefecture), and bring our own factories, whose production capacity has improved, into full operation.」

「We will establish a flexible and agile organizational structure, including by responding to the Corporate Governance Code and ensuring thorough compliance with laws and regulations, and will newly establish the Tokyo Branch and Wakasa Branch. We will work to secure and expand recurring orders and establish a construction system that is not affected by changes in the business environment. We will also strengthen alliances with other companies, maintain and improve technical capabilities, develop personnel through planned and appropriate allocation of staff, and further establish and embed autonomous safety and quality systems.」

「We will establish a flexible and agile organizational structure, including by responding to the Corporate Governance Code and ensuring thorough compliance with laws and regulations, and will newly establish the Tokyo Branch and Wakasa Branch. We will work to secure and expand recurring orders and establish a construction system that is not affected by changes in the business environment. We will also strengthen alliances with other companies, maintain and improve technical capabilities, develop personnel through planned and appropriate allocation of staff, and further establish and embed autonomous safety and quality systems. In addition, we will expand overseas construction and the O&M business, acquire methods and technology for decommissioning nuclear power plants, begin planning for ownership of our own power plants, and effectively use our own factories, whose manufacturing capacity has been increased through renovation work.」

「To improve convenience and reduce costs and strengthen the product supply system for products such as prefabricated piping, we will renovate our own factories. We will also continue to improve O&M technology through the Power Promotion Project Department in preparation for entering the power business, and strengthen overseas bases and networks for continued overseas expansion, particularly in Southeast Asia.」

「To improve convenience and reduce costs and strengthen the product supply system for products such as prefabricated piping, we will renovate our own factories. We will also continue to improve O&M technology through the Power Promotion Project Department in preparation for entering the power business, and strengthen overseas bases and networks for continued overseas expansion, particularly in Southeast Asia.」

「We invested to improve the production capacity of our own factories, secured mobilization capacity by strengthening alliances with business partners, and sought to provide technology through the establishment of the Power Promotion Project Department.」