Preparing for Full Mandatory Compliance with Energy-Efficiency Standards and the Curtailment of the No. 4 Exemption

「(Building confirmation and inspection and housing performance evaluation businesses) Due to an increase in building confirmation and inspection services and energy-efficiency compliance determination services resulting from legal amendments, as well as fee revisions, net sales increased 25.3% year on year to ¥18,792 million, and operating profit increased 169.0% to ¥4,289 million.」

「Nearly one year has passed since the amended law came into force in April 2025, but delays in building confirmation reviews have still not been resolved in the market. As the largest group of designated building confirmation and inspection bodies, we will work to eliminate backlogs in applications to facilitate the smooth start of new construction while also seeking to expand our business.」

「In the Core Business, the number of certificates issued for energy-efficiency compliance assessments and housing performance evaluations increased after compliance with energy-efficiency standards became mandatory for all new buildings, including housing, from April.」

「In April 2025, a major revision of the Building Standards Act took effect, introducing full mandatory compliance with energy efficiency standards and substantially narrowing the scope of the Category 4 exemption, which had generally applied to newly built detached houses. Concerns have been voiced that the increased burden of application procedures and longer review times will lead to a backlog of reviews at designated building confirmation and inspection bodies.」

「In the Core Business, while developing the framework for energy-efficiency-related operations required to implement policies aimed at achieving a decarbonized society, the company acquired the shares of 株式会社福田水文センター and 国土工営コンサルタンツ株式会社 in June 2024 and made them subsidiaries to expand its business domains in the infrastructure and stock fields.」

「In its core business, the Company is developing systems for energy-saving services required to implement policies aimed at achieving a decarbonized society. To expand its business domains in the infrastructure stock sector, it acquired shares in アジアコンサルタント株式会社 in October 2023 and made it a subsidiary.」

「In our core business, we are preparing the structure for energy-efficiency-related services required to implement policies aimed at achieving a decarbonized society, while」

「Against this backdrop, with full mandatory compliance with energy efficiency standards scheduled for fiscal 2025, moves to obtain energy-efficiency performance ratings for housing and buildings, particularly among major operators, are expected to accelerate. The revision of the Building Standards Act will also substantially narrow the scope of the Category 4 exemption, which has previously applied to a very large number of detached houses and exempts them from structural review. We recognize that the technical capabilities to respond reliably to these regulatory reforms are the source of our Group's competitiveness. Given the expected increase in workload associated with this series of regulatory reforms, we believe that our Group must take the lead in preparing its organizational systems.」