Enhancing Competitiveness and Profitability through Rigorous Cost and Quality Management

「Due to a higher cost ratio caused by costs incurred ahead of contract changes and expenses including grants under a special employee stock ownership plan incentive program, operating profit fell 8.2% year on year to ¥442 million」

「In terms of profit and loss, operating profit was ¥442 million, down 8.2% year on year, due to the increase in the cost ratio resulting from costs being incurred ahead of revenue before the contract change, as well as expenses arising from special incentive payments to the employee stock ownership plan and other factors.」

「The cost of sales ratio was 73.4%, down 0.2 percentage points from the previous consolidated fiscal year.」

「As a result, revenue from the comprehensive construction consulting business for the current first nine months of the consolidated fiscal year was ¥10,070 million, up 3.6% year on year. In terms of earnings, operating profit was ¥829 million, up 11.7% year on year, as the decline in high-cost projects and the increase in rapid disaster-recovery services contributed to higher profit.」

「As a result, revenue from the sports facility operations business for the current first six months of the consolidated fiscal year was ¥391 million, up 16.4% year on year, as summer pool events and other activities at Takebe no Mori Park under a designated-management contract launched in April 2023 contributed to higher revenue. In terms of earnings, operating profit was ¥29 million, compared with an operating loss of ¥8 million in the same period of the previous year, reflecting higher revenue, fewer facility repairs and lower electricity costs following the replacement of equipment with energy-efficient facilities.」

「The overall cost ratio decreased by 0.6 percentage points from the previous consolidated fiscal year to 74.6%. In the comprehensive construction consulting business, although the Group worked to improve operational efficiency through appropriate process management and personnel allocation, the cost ratio increased due to repair costs incurred in response to design defects and the resulting loss-making projects with high cost ratios, after a two-aircraft operation was used for part of the aerial survey work to secure the required survey area by the deadline.」

「Operating profit was ¥742 million, down 9.1% year on year, due mainly to the emergence of loss-making projects with high cost ratios as a result of lower production capacity caused by responses to design defects and the use of less efficient imaging equipment in a two-aircraft operation to secure the imaging area that had not been completed by the deadline for part of the aerial surveying business.」

「Although the road and civil engineering design and environmental planning fields, which have secured substantial carryover work, contributed to higher revenue in the current first six months of the consolidated fiscal year, profit margins declined due to the impact of large-scale projects with high subcontracting ratios and large-scale projects for which change orders had not been completed.」

「The overall cost of sales ratio increased by 2.3 percentage points from the previous consolidated fiscal year to 75.2%. The main factor was the increase in property rents, primarily due to the variable-rent agreement under the fixed-term building lease for atoa in the aquarium operations business.」

「The overall cost of sales ratio decreased by 1.1 percentage points from the previous consolidated fiscal year to 72.9%. The main factors were improved production efficiency resulting from rigorous process management and optimal personnel allocation amid an increase in total workload, as well as a reduction in costs for addressing error-related claims following efforts to prevent quality defects, including reviews of individual projects before construction by each production department, despite increases in personnel costs and depreciation from capital investment in the comprehensive construction consulting business.」

「As a result, revenue from the comprehensive construction consulting business for the current first nine months of the consolidated fiscal year was ¥8,240 million, up 8.2% year on year, supported by secured carryover work from the previous consolidated fiscal year and the completion of 2-year projects such as bridge inspections and large-scale projects such as road design. In terms of earnings, operating profit was ¥1,450 million, up 11.2% year on year, reflecting higher revenue and a lower cost ratio.」

「Despite the increase in total workload, earnings declined mainly because personnel and subcontracting costs increased and depreciation increased due to the introduction of computers and the replacement of measuring equipment as part of the shift to remote operations.」

「The cost of sales ratio decreased by 0.9 percentage points from the previous consolidated fiscal year to 74.0%. The main factors were improved production efficiency resulting from rigorous process management and optimal personnel allocation amid an increase in total workload, as well as a reduction in costs for addressing error-related claims following efforts to prevent quality defects, including reviews of individual projects before construction by each production department.」

「As a result, revenue from the comprehensive construction consulting business for the current first nine months of the consolidated fiscal year was ¥7,617 million, up 17.2% year on year, supported by secured carryover work from the previous consolidated fiscal year and an increase in services supporting project owners. In terms of earnings, operating profit was ¥1,304 million, up 51.6% year on year, reflecting higher revenue and a lower cost ratio.」

「In the Group's main comprehensive construction consulting business, it has actively pursued proposal-based sales rooted in local communities, while rigorously managing quality and costs and working to expand orders by strengthening its market competitiveness.」

「Against this external backdrop, the Group will pursue business development in response to changing customer needs, while rigorously managing costs and quality to strengthen competitiveness and improve profitability.」

「Against this external backdrop, the Group will pursue business development in response to changing customer needs, while rigorously managing costs and quality to strengthen competitiveness and improve profitability.」