Oriental Consultants Holdings Company Limited

Oriental Consultants Holdings provides services primarily focused on infrastructure development, preservation and management in the domestic and overseas markets. In the domestic market, business has remained solid, centered on the execution of public works focused on disaster prevention, disaster risk reduction and national resilience, as well as the maintenance and management of roads, rivers and ports. The order environment is expected to remain solid, supported by acceleration measures through fiscal 2025 and the medium-term plan being implemented from fiscal 2026. In overseas markets, demand for infrastructure development in developing countries remains strong, and the order environment is improving, including through the signing of additional contracts for large-scale rail projects. As a result, orders received during the interim consolidated accounting period totaled ¥46.446 billion, up 7.0% year on year; net sales were ¥49.046 billion, up 5.9%; operating profit was ¥4.620 billion, up 15.6%; ordinary profit was ¥5.121 billion, up 21.4%; and interim net income attributable to owners of the parent was ¥3.5 billion, up 22.1%. By segment, results were as follows. - Infrastructure and Management Services Business - Net sales (sales to external customers): ¥40.208 billion, up 4.8% year on year - Operating profit: ¥3.526 billion, up 4.1% - Environmental Management Business - Net sales (sales to external customers): ¥7.975 billion, up 13.3% year on year - Operating profit: ¥924 million, up 100.1% - Other Businesses - Net sales (sales to external customers): ¥1.542 billion, up 4.2% year on year - Operating profit: ¥168 million, up 28.8% Orders received in the domestic and overseas markets were as follows. - Orders received in the domestic market: ¥24.9 billion, down 10.0% year on year - Orders received in overseas markets: ¥21.545 billion, up 36.9% - Total orders received during the interim consolidated accounting period: ¥46.446 billion, up 7.0% The key points of the analysis of financial position and cash flows for the interim consolidated accounting period were as follows. - Total assets: ¥95.260 billion, up from the end of the previous consolidated fiscal year, mainly due to increases in cash and deposits, revenue recognized under the percentage-of-completion method, and notes and accounts receivable and contract assets - Liabilities: ¥64.487 billion, up from the end of the previous consolidated fiscal year, mainly due to an increase in short-term borrowings used to fund working capital - Net assets: ¥30.772 billion, up from the end of the previous consolidated fiscal year, due to an increase in retained earnings and a decrease in year-end dividends - Cash and cash equivalents at period-end: approximately ¥1.28 billion - Research and development activities: Total R&D expenses were ¥234 million, comprising ¥240? million for the Infrastructure and Management Services Business and ¥11 million for the Environmental Management Business, among others (Note) The main R&D activities during the interim consolidated accounting period were as follows. - Domestic business - R&D related to infrastructure development and preservation, water management and preservation, disaster prevention, transportation and regional revitalization - Overseas business - R&D related to private-sector businesses, smart city development, O&M businesses, DX businesses and business investment The disclosure of material contracts states that there are no applicable matters. Subsequent events include moves such as the reintroduction of the employee stock ownership plan trust-type ESOP. No applicable disclosure