Capturing Domestic Demand and Expanding Overseas Operations

「Centered on Japan, Thailand through タイ丸建㈱, and China through 瑞馬丸建(安徽)工程支護科技有限公司, where the Group has bases, we aim to expand transactions with East Asian countries, optimize steel materials held at each base, and expand earnings, with the goal of increasing earnings related to overseas operations to at least 20% of consolidated earnings.」

「There were also signs of a partial recovery in the overseas business.」

「Domestic operations remained generally firm, and signs of recovery were observed at the overseas operating companies in Thailand and China.」

「In the overseas business, the Company recognized an allowance for doubtful accounts on certain receivables after comprehensively considering the prolonged downturn in the business environment and the collectibility of receivables.」

「Domestic operations remained generally firm, but the overseas operating companies in Thailand and China are taking time to recover their performance.」

「Centered on Japan, Thailand through タイ丸建㈱, and China through 瑞馬丸建(安徽)工程支護科技有限公司, where the Group has bases, we aim to expand transactions with East Asian countries, optimize steel materials held at each base, and expand earnings, with the goal of increasing earnings related to overseas operations to at least 20% of consolidated earnings.」

「Under these conditions, the overseas operating companies in Thailand and China experienced delayed earnings recovery, while domestic operations remained generally firm.」

「Under these conditions, the Group's performance remained generally firm in Japan, while the overseas operating companies in Thailand and China showed delays in their recovery.」

「Under these conditions, the overseas operating companies in Thailand and China were on a recovery trend from the COVID-19 pandemic but continued to be affected by delays in construction progress. In Japan, however, the heavy temporary steel material business generally remained firm, partly owing to progress on delayed projects.」

「Under these conditions, the Group's core heavy temporary steel material business in Japan progressed smoothly, while the operating companies in Thailand and China were on a recovery trend from the COVID-19 pandemic but continued to be affected by delays in construction progress and postponed construction starts.」

「Although the overseas operating companies, タイ丸建㈱ in Thailand and 瑞馬丸建（安徽）工程支護科技有限公司 in China, were on a recovery trend from the COVID-19 pandemic, they continued to be affected by postponed construction starts and delays in construction progress, resulting in difficult profitability conditions.」

「Specifically, タイ丸建㈱ was subject to strict restrictions due to the COVID-19 pandemic during the fiscal year under review, which delayed the start and progress of construction. However, we will maintain and strengthen our cooperative relationship with our partner Italian-Thai Development Public Co.,Ltd. and seek to improve earnings by responding to development demand accompanying the resumption of economic activity in Thailand.」

「Under these conditions, the Group's business performance progressed smoothly in Japan, although demand differed by region. Overseas, タイ丸建㈱ in Thailand, where restrictions including COVID-19 lockdowns were imposed, was affected by delays in construction progress and postponed construction starts.」

「Overseas, 瑞馬丸建（安徽）工程支護科技有限公司 in China performed smoothly, while タイ丸建㈱ in Thailand continued to face difficult conditions due to the COVID-19 pandemic.」

「As its third overseas project, following タイ丸建㈱ in Thailand and 中鉄伊紅鋼矢板有限公司 in China, the Company jointly with 伊藤忠丸紅鉄鋼㈱ subscribed in August 2020 to a third-party allotment by the joint venture 瑞馬丸建(安徽)工程支護科技有限公司, established to conduct a heavy temporary steel material joint venture business in China using an environmentally considerate steel earth-retaining construction method, and launched the business. The Company will work to expand its heavy temporary steel material business in China.」

「On 7 August 2020, the Company established 丸建投資合同会社 through a joint investment with 伊藤忠丸紅鉄鋼株式会社, holding a 60% equity interest, and made it a consolidated subsidiary. On 14 August of the same year, through that company, it subscribed to a third-party allotment by 瑞馬丸建(安徽)工程支護科技有限公司 that resulted in a 40% equity interest, making it an equity-method affiliate.」

「On 14 August of the same year, through the company, the Company subscribed to a third-party allotment by 瑞馬丸建(安徽)工程支護科技有限公司 that resulted in a 40% equity interest, making it an equity-method affiliate.」

「Over the medium to long term, funds will be needed in Japan for M&A, capital participation and the development of new products under the medium-term management plan, and overseas for additional purchases of heavy temporary steel materials by タイ丸建㈱ and investment in a Chinese heavy temporary steel material joint venture. We will prepare for these funding needs.」

「For existing overseas projects, we will strengthen our cooperative relationships with partners, further increase our steel material holdings and make capital investments to meet demand from large-scale development and infrastructure projects, and seek to improve earnings through quantitative expansion. For new projects, we are assessing demand for heavy temporary steel materials in neighboring countries and promoting the adoption of the construction method, and have begun work on a third overseas project.」

「In addition, with the aim of conducting a heavy temporary steel material business in China, the Company is proceeding with the establishment of a new company, 瑞馬丸建（安徽）工程支護科技有限公司, targeted for around March 2020.」

「② Developing the domestic earnings base and actively expanding overseas. As one of the specific measures described above, namely “active overseas expansion,” the Company agreed with Shwe Taung Development Co.,Ltd., a leading Myanmar conglomerate, to begin investigation and research into a heavy temporary steel material leasing business in Myanmar, and signed a memorandum of understanding.」

「In the construction industry to which the Group belongs, construction demand remained firm, centered on large-scale projects in the Tokyo metropolitan area, but the effects of labor shortages and rising costs, including steel material prices and transportation expenses, continued.」

「Accordingly, the rental utilization and sales volumes of the heavy temporary steel materials handled by the Company also increased year on year.」

「Accordingly, the rental utilization and sales volumes of the heavy temporary steel materials handled by the Company also increased year on year.」

「As in the previous fiscal year, construction demand remained firm, centered on redevelopment in the Tokyo metropolitan area, Olympic and Paralympic-related projects, and infrastructure development. Accordingly, both the rental utilization and sales volumes of the heavy temporary steel materials handled by the Company increased.」

「Ordinary income increased ¥123 million, or 6.5%, to ¥1,231 million, and net income attributable to owners of the parent increased ¥53 million, or 5.8%, to ¥983 million, owing to higher equity-method investment gains from タイ丸建㈱ in Thailand, where public infrastructure development is progressing, and 協友リース㈱, which handles large-scale temporary steel materials.」

「In Thailand, large-scale projects, including airport expansion work, have begun to move forward in earnest, and タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「In Thailand, where large-scale projects, particularly public construction investment, have begun to move forward in earnest, タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「In Thailand, where large-scale projects, particularly public construction investment, have begun to move forward in earnest, タイ丸建㈱ responded by making additional purchases of heavy temporary steel materials.」

「Increased sales and construction work on large-scale projects in the Tokyo metropolitan area and earthquake-reconstruction-related projects in Tohoku resulted in revenue of ¥21,627 million, up ¥1,171 million, or 5.7%, from the previous fiscal year.」

「We will work to further strengthen our earnings base by reliably capturing domestic demand, expanding our overseas operations, and broadening our business scope, including through new strategic investments.」