Transition to a business structure not excessively reliant on public works

「The company is expanding from the manufacture and sale of physical goods and products to the provision of labor and services, including design and construction and maintenance support, and further to the provision of solutions, including the development of new business models such as cloud services for maintenance and management.」

「• New businesses based on a new business model The company is expanding from the manufacture and sale of physical goods and products to the provision of labor and services, including design and construction and maintenance support, and further to the provision of solutions, including the development of new business models such as cloud services for maintenance and management.」

「Within the government-demand field, the company expanded from civil engineering and construction, roads, and disaster prevention into erosion-control, agriculture and water-management, and other disaster-prevention fields, as well as into the enhancement of facilities outside civil engineering and construction. Beyond government demand, it expanded into railway, power, telecommunications, and other areas of private-sector demand in the transportation, infrastructure, and construction markets.」

「In the architecture and civil engineering markets closely related to our Group, public-sector construction has remained at the high levels seen in recent years, while private-sector capital investment is finally showing signs of recovery and local economic activity in Asia and Africa is gradually resuming.」

「To reduce its dependence on public-sector projects, the company entered the business of selling materials for private-sector demand in the construction market and has further expanded its business scope to sales of steel products, steel-frame construction, and concrete products targeting both public- and private-sector markets.」

「In the architecture and civil engineering markets closely related to the Group, government construction projects remained firm, while demand for private-sector construction projects was affected by sluggish capital investment resulting from the impact of the COVID-19 pandemic.」

「In the architecture and civil engineering markets closely related to the Group, government construction projects remained firm, while demand for private-sector construction projects was affected by sluggish capital investment resulting from the impact of the COVID-19 pandemic.」

「To reduce its dependence on public-sector projects, the company entered the business of selling materials for private-sector demand in the construction market and has further expanded its business scope to sales of steel products, steel-frame construction, and concrete products targeting both public- and private-sector markets.」

「To reduce its dependence on public-sector projects, the company entered the business of selling materials for private-sector demand in the construction market and has further expanded its business scope to sales of steel products, steel-frame construction, and concrete products targeting both public- and private-sector markets.」

「Over the medium to long term, as public investment trends downward, the Company has entered the materials sales business serving private-sector demand in the construction market to reduce its dependence on public works. It has also expanded its scope of activities to sales of steel products and steel-frame construction, as well as concrete products including ESCON, targeting both public- and private-sector markets.」

「Over the medium to long term, as public investment trends downward, the Company has entered the materials sales business serving private-sector demand in the construction market to reduce its dependence on public works. It has also expanded its scope of activities to sales of steel products and steel-frame construction, as well as concrete products including ESCON, targeting both public- and private-sector markets.」

「Over the medium to long term, as public investment trends downward, the Company has entered the materials sales business serving private-sector demand in the construction market to reduce its dependence on public works. It has also expanded its scope of activities to sales of steel products and steel-frame construction, as well as concrete products including ESCON, targeting both public- and private-sector markets.」

「As public investment trends downward over the medium to long term, we entered the business of selling materials for private-sector demand in the architectural market to reduce our dependence on public works. We have also expanded our business scope to include the sale of steel products and steel-frame construction services targeting both public- and private-sector markets, as well as concrete products including ESCON.」

「As public investment trends downward over the medium to long term, we entered the business of selling materials for private-sector demand in the architectural market to reduce our dependence on public works. We have also expanded our business scope to include the sale of steel products and steel-frame construction services targeting both public- and private-sector markets, as well as concrete products including ESCON.」

「As public investment trends downward over the medium to long term, we entered the business of selling materials for private-sector demand in the architectural market to reduce our dependence on public works. We have also expanded our business scope to include the sale of steel products and steel-frame construction services targeting both public- and private-sector markets, as well as concrete products including ESCON.」

「As public investment trends downward over the medium to long term, we entered the business of selling materials for private-sector demand in the architectural market to reduce our dependence on public works. We have also expanded our business scope to include the sale of steel products and steel-frame construction services targeting both public- and private-sector markets, as well as concrete products including ESCON.」

「As public investment trends downward over the medium to long term, we entered the business of selling materials for private-sector demand in the architectural market to reduce our dependence on public works. We have also expanded our business scope to include the sale of steel products and steel-frame construction services targeting both public- and private-sector markets, as well as concrete products including ESCON.」

「In the Tokyo metropolitan market, demand for construction work related to the Tokyo Olympics and central Tokyo redevelopment was taking shape, and shipments of the company's products increased steadily. At エスイー鉄建株式会社, sales from the steel-frame division at the 丸互 site, acquired through a business transfer two years earlier, contributed to this business.」

「In this business, at エスイーＡ＆Ｋ株式会社, the volume of construction work in the Tohoku market continued to decline as reconstruction demand decreased. In the Tokyo metropolitan market, however, demand for construction work related to the Tokyo Olympics and central Tokyo redevelopment was taking shape, and shipments of the company's products increased steadily. At エスイー鉄建株式会社, sales from the steel-frame division at the 丸互 site, acquired through a business transfer the previous year, and the installation of additional equipment to expand production capacity contributed to overall increases in sales and profit. As a result, net sales in this business were ¥4,159 million, up 16.3% year on year, and operating income was ¥199 million, up 9.1%.」

「In this business, sales at エスイーＡ＆Ｋ株式会社 remained sluggish in the Tohoku market due to a decline in the volume of private construction work, while new construction sites gradually began operations in the Tokyo metropolitan market and shipments of the company's products increased steadily. At エスイー鉄建株式会社, sales from the steel-frame division at the 丸互 site, acquired through a company split the previous year, contributed to overall increases in sales and profit.」

「With public investment centered on civil engineering expected to trend downward, we are entering the sales field for interior and formwork materials for construction in order to reduce dependence on public-sector projects, and are also actively pursuing businesses involving steel product manufacturing and steel-frame construction. The aging of civil engineering structures supporting the country, including roads, bridges, tunnels, dams and ports, has become an issue. We are actively working to contribute to social infrastructure and secure profits for the Group over the medium to long term, including by newly entering the repair and reinforcement field to address the growing number of aging structures.」

「To address this issue, we are advancing the transition to a business structure that is not excessively dependent on public-sector projects, including by developing new businesses targeting the private construction market.」