Interim report
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Disclaimer : This financial information , a digest of Taisei Corporation's " Consolidated Financial Results for the Three Months Ended June 30 , 2026 " ( " Kessan Tanshin ” ) disclosed at the Tokyo Stock Exchange on August 6 , 2026 was translated into English and presented solely for the convenience of non - Japanese speaking users . If there is any discrepancy between Japanese “ Kessan Tanshin " and this document , Japanese “ Kessan Tanshin ” will prevail . August 6 , 2026 Consolidated Financial Results for the Three Months Ended June 30 , 2026 Listed company name : Stock exchange listings : Stock code : Location of headquarters : Website : Representative : Contact : TEL : Scheduled date for dividend payment : Supplementary materials for financial summaries : Financial results briefing : [ Japanese GAAP ] Taisei Corporation Tokyo Stock Exchange , Prime Market Nagoya Stock Exchange , Premier Market 1801 Tokyo , Japan https://www.taisei.co.jp/english/ Yoshiro Aikawa , President and Chief Executive Officer Yuichi Nakano , General Manager of Accounting Department 81-3-3348-1111 ( from overseas ) Yes Yes ( for analysts and institutional investors ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Operating results ( cumulative total ) ( Millions of yen , rounded down ) ( Percentages indicate changes from the same period in the previous fiscal year . ) Net income attributable Net sales Operating income Ordinary income to owners of parent % % % % FY2026 ( First quarter - end ) 521,215 18.4 45,317 15.3 45,863 11.5 30,909 4.8 As of June 30 , 2026 FY2025 ( First quarter - end ) As of June 30 , 2025 ( Note ) Comprehensive income : 440,339 ( 3.7 ) FY2026 ( First quarter - end ) FY2025 ( First quarter - end ) 39,287 109.1 41,145 46.4 29,501 26.3 16,357 million yen 32,991 million yen ( 50.4 % ) - % Net income per share Diluted net income per share yen yen FY2026 ( First quarter - end ) As of June 30 , 2026 FY2025 ( First quarter - end ) As of June 30 , 2025 189.62 173.42 ( 2 ) Financial position As of June 30 , 2026 As of March 31 , 2026 ( Reference ) Shareholders ' equity : Total assets Net assets 2,537,610 2,714,550 974,931 989,931 As of June 30 , 2026 As of March 31 , 2026 933,208 million yen 948,075 million yen 1 ( Millions of yen , rounded down ) Equity ratio % 36.8 34.9
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2 2. Dividends Dividends per share (yen) First quarter-end Interim-end Third quarter-end Year-end Total (Full year) FY2025 - 125.00 - 185.00 310.00 FY2026 - FY2026 (forecast) 190.00 - 190.00 380.00 (Note) Revisions of projected dividends most recently announced: None 3. Consolidated results forecast for the fiscal year ending March 31, 2027 (FY2026) (From April 1, 2026 to March 31, 2027) (Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share % % % % yen Full fiscal year 2,420,000 15.8 188,000 0.0 187,000 (4.5) 151,000 (11.2) 926.33 (Note) Revisions of consolidated forecasts most recently announced: None *Notes (1) Changes in principal subsidiaries during the quarter under review (Changes in specified subsidiaries accompanying changes in scope of consolidation): Yes Newly included: NeoSphere Co., Ltd. Excluded: None (2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: Yes (Note) For details, please refer to page 12 of the Attachments, “2. Quarterly Consolidated Financial Statements and Principal Notes (3) Notes to quarterly consolidated financial statements (Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements).” (3) Changes in accounting principles, changes in accounting estimates and restatements (i) Changes in accounting principles due to revisions to accounting standards, etc.: None (ii) Changes due to accounting principles other than (i): None (iii) Changes in accounting estimates: None (iv) Restatements: None (4) Number of shares outstanding (common stock) i. Number of shares outstanding at the end of period (including treasury stock) As of June 30, 2026 163,185,872 shares As of March 31, 2026 163,185,872 shares ii. Number of treasury shares at the end of period As of June 30, 2026 177,251 shares As of March 31, 2026 176,753 shares iii. Average number of shares during the period (quarterly cumulative period) FY2026 (First quarter-end) 163,008,923 shares FY2025 (First quarter-end) 170,113,184 shares (Note) The number of treasury shares at the end of the period and number of treasury shares excluded for calculating average number of shares during the period include the Company’s shares held by the Board Benefit Trust (BBT-RS). (As of June 30, 2026: 98,400 shares, As of March 31, 2026: 98,400 shares, As of June 30, 2025: 98,400 shares) * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No * Proper use of forecasts of financial results, and other special matters Forward-looking statements in this document, including the forecasts of financial results, etc., are based on information currently available to the Company and on certain assumptions that the Company deems reasonable and do not represent any promise by th e Company. Actual results can be materially different from expectations due to a variety of factors. For matters related to the forecasts of financial results, please refer to “1. Overview of Operating Results, etc. (3) Explan ation of consolidated financial results forecast and other forward-looking information” on page 6 of the Attachments.
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3 Overview of Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2027 (Unit: 100 million yen) The first quarter Full fiscal year Previous fiscal year (From Apr. 1, 2025 to Jun. 30, 2025) Current fiscal year (From Apr. 1, 2026 to Jun. 30, 2026) Previous fiscal year (From Apr. 1, 2025 to Mar. 31, 2026) Current fiscal year (From Apr. 1, 2026 to Mar. 31, 2027) Result Result Result Forecast Over previous fiscal year Over previous fiscal year Amount of orders received 6,305 4,759 (1,545) 24,362 23,300 (1,062) Civil engineering 1,068 1,774 705 7,200 7,000 (200) Building construction 4,799 2,504 (2,295) 15,538 14,600 (938) Real estate development 410 452 41 1,457 1,500 42 Other 26 28 2 165 200 34 Net sales 4,403 5,212 808 20,890 24,200 3,309 Civil engineering 1,416 1,656 240 6,797 7,800 1,002 Building construction 2,545 3,096 550 12,485 14,700 2,214 Real estate development 417 424 7 1,441 1,500 58 Other 24 34 10 165 200 34 Gross profit % 15.4 16.4 1.0 15.8 14.8 (1.0) 678 855 177 3,300 3,570 269 % 23.6 17.1 (6.5) 20.8 18.2 (2.6) Civil engineering 334 283 (50) 1,414 1,420 5 % 9.8 14.4 4.6 12.3 12.2 (0.1) Building construction 250 446 196 1,535 1,790 254 % 20.8 27.0 6.2 22.0 21.3 (0.7) Real estate development 86 114 27 316 320 3 % 25.2 30.2 5.0 20.1 20.0 (0.1) Other 6 10 4 33 40 6 % (6.5) (7.7) (1.2) (6.8) (7.0) (0.2) SG&A expenses (285) (402) (117) (1,420) (1,690) (269) Operating income % 8.9 8.7 (0.2) 9.0 7.8 (1.2) 392 453 60 1,879 1,880 0 Non-operating income (expenses) 18 5 (13) 78 (10) (88) (Net financial revenue) 18 6 (12) 29 (46) (75) Ordinary income % 9.3 8.8 (0.5) 9.4 7.7 (1.7) 411 458 47 1,957 1,870 (87) Extraordinary gains (losses) 41 43 2 506 460 (46) Income before income taxes % 10.3 9.6 (0.7) 11.8 9.6 (2.2) 452 501 49 2,464 2,330 (134) Income taxes (150) (182) (32) (715) (780) (64) Net income % 6.9 6.1 (0.8) 8.4 6.4 (2.0) 302 319 16 1,748 1,550 (198) Net income attributable to non- controlling interests (7) (10) (2) (48) (40) 8 Net income attributable to owners of parent % 6.7 5.9 (0.8) 8.1 6.2 (1.9) 295 309 14 1,700 1,510 (190) * The forecast for the current fiscal year shows the figures in earnings forecasts released on May 14, 2026.
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4 Overview of Non-consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2027 (Unit: 100 million yen) The first quarter Full fiscal year Previous fiscal year (From Apr. 1, 2025 to Jun. 30, 2025) Current fiscal year (From Apr. 1, 2026 to Jun. 30, 2026) Previous fiscal year (From Apr. 1, 2025 to Mar. 31, 2026) Current fiscal year (From Apr. 1, 2026 to Mar. 31, 2027) Result Result Result Forecast Over previous fiscal year Over previous fiscal year Amount of orders received 4,846 2,811 (2,034) 17,832 15,000 (2,832) Civil engineering 424 923 499 4,257 3,600 (657) Domestic 411 909 497 3,926 3,200 (726) Overseas 13 14 1 330 400 69 Building construction 4,366 1,789 (2,576) 13,188 11,100 (2,088) Domestic 4,342 1,776 (2,565) 13,119 11,000 (2,119) Overseas 23 12 (11) 68 100 31 Total 4,790 2,712 (2,077) 17,445 14,700 (2,745) Real estate development 39 83 43 255 200 (55) Other 16 15 (1) 130 100 (30) Net sales 3,096 3,467 371 14,522 16,400 1,877 Civil engineering 894 888 (6) 3,948 4,300 351 Domestic 851 841 (9) 3,717 4,000 282 Overseas 43 46 3 230 300 69 Building construction 2,145 2,499 354 10,214 11,800 1,585 Domestic 2,088 2,395 307 9,835 11,500 1,664 Overseas 56 103 46 378 300 (78) Total 3,040 3,387 347 14,162 16,100 1,937 Real estate development 39 64 24 229 200 (29) Other 16 15 (1) 130 100 (30) Gross profit % 14.6 16.7 2.1 15.8 14.6 (1.2) 453 579 126 2,287 2,400 112 % 26.4 18.8 (7.6) 23.0 18.8 (4.2) Civil engineering 235 166 (69) 908 810 (98) % 9.1 14.3 5.2 11.9 12.2 0.3 Building construction 194 357 162 1,219 1,440 220 % 14.2 15.5 1.3 15.0 14.0 (1.0) Total 430 524 93 2,128 2,250 121 % 45.1 78.2 33.1 58.7 65.0 6.3 Real estate development 17 50 32 134 130 (4) % 27.2 30.8 3.6 18.8 20.0 1.2 Other 4 4 0 24 20 (4) % (6.0) (6.3) (0.3) (5.9) (5.8) 0.1 SG&A expenses (186) (218) (32) (858) (950) (91) Operating income % 8.6 10.4 1.8 9.8 8.8 (1.0) 266 361 94 1,428 1,450 21 Non-operating income (expenses) 31 35 3 61 10 (51) (Net financial revenue) 36 36 (0) 63 16 (47) Ordinary income % 9.7 11.4 1.7 10.3 8.9 (1.4) 298 396 97 1,490 1,460 (30) Extraordinary gains (losses) 40 38 (1) 511 450 (61) Income before income taxes % 11.0 12.6 1.6 13.8 11.6 (2.2) 339 435 96 2,001 1,910 (91) Income taxes (104) (134) (30) (547) (590) (42) Net income % 7.6 8.7 1.1 10.0 8.0 (2.0) 235 301 65 1,454 1,320 (134) * The forecast for the current fiscal year shows the figures in earnings forecasts released on May 14, 2026.
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5 Attachments - Contents 1. Overview of Operating Results, etc. (1) Overview of operating results for the three months ended June 30, 2026 ....................................................................................6 (2) Overview of financial position for the three months ended June 30, 2026 ...................................................................................6 (3) Explanation of consolidated financial results forecast and other forward-looking information ...................................................6 (4) Policy related to cross-shareholdings ...........................................................................................................................................7 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly consolidated balance sheet .........................................................................................................................................8 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income First quarter of FY2026 (April 1, 2026 to June 30, 2026) .......................................................................................................... 10 (3) Notes to quarterly consolidated financial statements .................................................................................................................. 12 3. (Reference) Quarterly Non-consolidated Financial Statements (1) (Summary) Quarterly non-consolidated balance sheet ............................................................................................................. 15 (2) (Summary) Quarterly non-consolidated statement of income First quarter of FY2026 (April 1, 2026 to June 30, 2026) .......................................................................................................... 17 4. Supplementary Information (1) (Non-consolidated) Amount of orders received, net sales and balance carried forward ........................................................... 18
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6 1. Overview of Operating Results, etc. (1) Overview of operating results for the three months ended June 30, 2026 The Japanese economy has maintained a moderate recovery trend, with personal consumption and capital investment continuing to rebound, supported by improvements in the employment and income environment. The outlook, however, remains uncertain due to the situation in the Middle East and U.S. trade policies. In the construction market, overall construction investment has been steady due to a recovery in private investment and solid public investment. However, construction material prices and labor costs are expected to continue rising, and the situation requires close monitoring of corporate capital investment trends. Under these circumstances, the Group’s operating results for the three months ended June 30, 2026 showed that net sales increased 18.4% year on year to ¥521.2 billion due to increases in all segments, resulting in a progress rate of 21.5% for the full-year forecast. In terms of profits, gross profit increased 26.2% year on year to ¥ 85.5 billion (progress rate of 24.0%) due not only to larger revenue but to a turnaround in profit margins in the building construction and real estate development businesses. Although selling, general and administrative expenses increased 41.2% year on year to ¥ 40.2 billion (progress rate of 23.8%), operating income increased 15.3% year on year to ¥45.3 billion (progress rate of 24.1%). Ordinary income increased 11.5% year on year to ¥45.8 billion (progress rate of 24.5%) due to an increase in operating income, despite a deterioration in non -operating income (expenses) due in part to an increase in financing expenses. Net income attributable to owners of parent increased 4.8% year on year to ¥ 30.9 billion (progress rate of 20.5%) due to a turnaround in extraordinary gains (losses) mainly because of an increase in gain on sales of investment securities. Results by reportable segment are as follows (results by reportable segment include internal transactions between segments). Civil engineering Although net sales increased 19.5% year on year to ¥ 177.2 billion due to an increase in sales by the consolidated subsidiaries, operating income decreased 37.9% year on year to ¥15.3 billion due to a decrease in gross profit from construction business reflecting the deterioration in profit margins for the Company and its consolidated subsidiaries. Building construction Net sales increased 21.0% year on year to ¥315.5 billion due to increases in sales by the Company and its consolidated subsidiaries. Operating income increased 199.1% year on year to ¥25.0 billion due not only to larger revenue but to an increase in gross profit from construction business reflecting the turnaround in profit margins for the Company and its consolidated subsidiaries. Real estate development Net sales increased 6.5% year on year to ¥46.1 billion due to increases in sales by the Company and its consolidated subsidiaries. Operating income increased 46.2% year on year to ¥9.3 billion due not only to larger revenue but to an increase in gross profit from development projects reflecting the turnaround in profit margins for the Company and its consolidated subsidiaries. Others Net sales increased 32.2% year on year to ¥4.5 billion, and operating income increased 69.6% to ¥0.7 billion. (2) Overview of financial position for the three months ended June 30, 2026 Total assets decreased by 6.5% or ¥176.9 billion from the end of the previous fiscal year to ¥2,537.6 billion due in part to a decrease in accounts receivable trade. Total liabilities decreased by 9.4% or ¥161.9 billion from the end of the previous fiscal year to ¥1,562.6 billion due in part to a decrease in advances received and progress billings on uncompleted contracts . The balance of interest-bearing debt for fund-raising purposes decreased by 3.5% or ¥16.4 billion from the end of the previous fiscal year to ¥447.0 billion (of which non -recourse debt was ¥49.2 billion). Net assets decreased by 1.5% or ¥14.9 billion from the end of the previous fiscal year to ¥974.9 billion due in part to a decrease in unrealized gains on available -for-sale securities, net of taxes due to a decline in the stock market and the sale of investment securities. The equity ratio increased by 1.9 points from the end of the previous fiscal year to 36.8%. (3) Explanation of consolidated financial results forecast and other forward-looking information There are no changes to the full year consolidated results forecast announced on May 14, 2026.
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7 (4) Policy related to cross-shareholdings Moving forward, we will consider and implement additional sale, etc. in order to steadily achieve the reduction target, even in the event of fluctuations in stock prices and our consolidated net assets.
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8 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and time deposits 278,336 207,325 Notes and accounts receivable trade 961,838 807,090 Securities - 35,000 Cost on uncompleted contracts 89,410 94,996 Real estate for sale and development projects in progress 218,781 217,024 Other inventories 10,900 11,961 Other current assets 78,955 76,760 Allowance for doubtful accounts (511) (360) Total current assets 1,637,711 1,449,798 Fixed assets Tangible fixed assets 347,811 372,752 Intangible fixed assets Goodwill 75,945 74,696 Other intangible fixed assets 40,255 41,920 Total intangible fixed assets 116,200 116,617 Investments and other assets Investment securities 466,292 444,103 Net defined benefit asset 94,801 94,438 Other fixed assets 54,064 62,261 Allowance for doubtful accounts (2,332) (2,361) Total investments and other assets 612,826 598,442 Total fixed assets 1,076,838 1,087,812 Total assets 2,714,550 2,537,610
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9 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable trade 501,553 460,786 Short-term borrowings 161,986 138,866 Short-term non-recourse loans payable 15 15 Straight bonds due within one year 10,000 10,000 Advances received and progress billings on uncompleted contracts 283,340 240,838 Provision for warranties on completed contracts 3,525 4,122 Provision for losses on construction contracts 76,400 68,824 Provision for performance-based remuneration for directors - 1,835 Other current liabilities 342,926 289,624 Total current liabilities 1,379,747 1,214,912 Long-term liabilities Straight bonds 40,000 40,000 Non-recourse bonds payable 200 300 Long-term borrowings 205,428 208,914 Long-term non-recourse loans payable 45,851 48,934 Retirement benefits for directors and corporate auditors 938 748 Provision for share-based remuneration for directors 371 - Allowance for losses on business in subsidiaries and affiliates 1,154 649 Net defined benefit liability 19,875 19,779 Other long-term liabilities 31,051 28,440 Total long-term liabilities 344,871 347,766 Total liabilities 1,724,619 1,562,679 Net assets Shareholders’ equity Common stock 122,742 122,742 Capital surplus 30,439 30,439 Retained earnings 625,553 626,571 Treasury stock (927) (930) Total shareholders’ equity 777,806 778,822 Accumulated other comprehensive income Unrealized gains on available-for-sale securities, net of taxes 100,604 85,854 Unrealized gains (losses) on hedging derivatives, net of taxes 409 (324) Revaluation reserve for land 1,079 1,079 Foreign currency translation adjustments 7,452 8,926 Remeasurements of defined benefit plans 60,722 58,849 Total accumulated other comprehensive income 170,268 154,385 Non-controlling interests 41,855 41,723 Total net assets 989,931 974,931 Total liabilities and net assets 2,714,550 2,537,610
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10 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income First quarter of FY2026 (April 1, 2026 to June 30, 2026) (Millions of yen) From April 1, 2025 to June 30, 2025 From April 1, 2026 to June 30, 2026 Net sales Construction business 390,388 469,053 Development projects 49,951 52,161 Total net sales 440,339 521,215 Cost of sales Construction business 332,538 396,200 Development projects 39,988 39,424 Total cost of sales 372,526 435,624 Gross profit Construction business 57,850 72,853 Development projects 9,962 12,736 Total gross profit 67,813 85,590 Selling, general and administrative expenses 28,526 40,273 Operating income 39,287 45,317 Non-operating income Interest income 344 447 Dividend income 2,204 1,701 Other non-operating income 688 998 Total non-operating income 3,238 3,147 Non-operating expenses Interest expenses 658 1,469 Foreign exchange losses 348 - Financing expenses 41 933 Other non-operating expenses 331 199 Total non-operating expenses 1,379 2,602 Ordinary income 41,145 45,863 Extraordinary gains Gain on sales of investment securities 4,227 4,391 Other extraordinary gains 12 32 Total extraordinary gains 4,239 4,423 Extraordinary losses Impairment losses on fixed assets - 24 Loss on retirement of fixed assets 42 77 Loss on sales of investment securities 67 - Other extraordinary losses 23 12 Total extraordinary losses 133 114 Income before income taxes 45,251 50,172 Income taxes 15,004 18,225 Net income 30,246 31,946 Net income attributable to non-controlling interests 745 1,037 Net income attributable to owners of parent 29,501 30,909
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11 Quarterly consolidated statement of comprehensive income First quarter of FY2026 (April 1, 2026 to June 30, 2026) (Millions of yen) From April 1, 2025 to June 30, 2025 From April 1, 2026 to June 30, 2026 Net income 30,246 31,946 Other comprehensive income Unrealized gains on available-for-sale securities, net of taxes 8,363 (14,539) Unrealized gains (losses) on hedging derivatives, net of taxes - (907) Foreign currency translation adjustments (1,964) 596 Remeasurements of defined benefit plans (1,266) (1,900) Share of other comprehensive income of entities accounted for using equity method (2,388) 1,161 Total other comprehensive income 2,744 (15,588) Comprehensive income 32,991 16,357 Comprehensive income attributable to Owners of parent 32,322 15,026 Non-controlling interests 668 1,331
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12 (3) Notes to quarterly consolidated financial statements (Notes regarding going concern assumption) Not applicable. (Notes regarding substantial changes in the amount of shareholders’ equity) Not applicable. (Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements) (Calculation of tax expenses) Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax -effect accounting to income before income taxes for the fiscal year, including the first quarter of the fiscal year ending March 31, 202 7, and multiplying income before income taxes by said estimated effective tax rate. However, in cases where the Company records loss before income taxes, the amount is multiplied by the statutory effective tax rate.
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13 (Segment information, etc.) 1. Reportable segment information (net sales and income (loss)) First quarter of FY2025 (April 1, 2025 – June 30, 2025) (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Book value in quarterly consolidated statement of income (Note 3) Civil engineering Building construction Real estate development Subtotal Net sales Sales on third party customers 141,649 254,516 41,754 437,919 2,420 440,339 - 440,339 Intersegment transactions or transfers 6,759 6,355 1,582 14,696 1,009 15,705 (15,705) - Total 148,408 260,871 43,336 452,616 3,429 456,045 (15,705) 440,339 Segment operating income 24,710 8,366 6,387 39,464 418 39,883 (595) 39,287 Notes 1. Businesses that cannot be classified into the Company’s reporting segments are shown as “Others.” This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and logistics business, and also, leisure-related business and other service business. 2. The adjustments of segment operating income of ¥(595) million includes elimination of intersegment transaction amounting to ¥(463) million and amortization of goodwill amounting to ¥(132) million. 3. Segment operating income is adjusted in accordance with operating income of the quarterly consolidated statement of income. 1. Reportable segment information (net sales and income (loss)) First quarter of FY2026 (April 1, 2026 – June 30, 2026) (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Book value in quarterly consolidated statement of income (Note 3) Civil engineering Building construction Real estate development Subtotal Net sales Sales on third party customers 165,656 309,607 42,462 517,725 3,489 521,215 - 521,215 Intersegment transactions or transfers 11,631 5,968 3,684 21,284 1,045 22,329 (22,329) - Total 177,288 315,575 46,146 539,010 4,534 543,545 (22,329) 521,215 Segment operating income 15,335 25,023 9,336 49,694 710 50,405 (5,087) 45,317 Notes 1. Businesses that cannot be classified into the Company’s reporting segments are shown as “Others.” This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and logistics business, and also, leisure-related business and other service business. 2. The adjustments of segment operating income of ¥(5,087) million includes elimination of intersegment transaction amounting to ¥(2,106) million and amortization of goodwill amounting to ¥(2,980) million. 3. Segment operating income is adjusted in accordance with operating income of the quarterly consolidated statement of income. 2. Reportable segment information (impairment losses on fixed assets or goodwill, etc.) (Significant change in amount of goodwill) The Company has acquired shares of NeoSphere Co., Ltd. in the Others segment, making it a consolidated subsidiary. The increase in goodwill resulting from such transaction amounted to ¥1,732 million for the three months ended June 30, 2026.
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14 (Notes on the statement of cash flows) The Company does not prepare quarterly consolidated statement of cash flows for the three months ended June 30, 202 6. Depreciation and amortization (including amortization of intangible assets aside from goodwill and customer-related intangible assets) and amortization of goodwill and customer-related intangible assets for the three months ended June 30, 2026 are as follows. (Millions of yen) From April 1, 2025 to June 30, 2025 From April 1, 2026 to June 30, 2026 Depreciation and amortization 3,812 4,573 Amortization of goodwill 132 2,980 Amortization of customer-related intangible assets – 795
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15 3. (Reference) Quarterly Non-consolidated Financial Statements (1) (Summary) Quarterly non-consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and time deposits 166,080 102,436 Notes and accounts receivable trade 675,603 560,607 Securities - 35,000 Real estate for sale 34,325 34,300 Cost on uncompleted contracts 70,778 82,698 Cost on development projects in progress 12,145 12,743 Other current assets 59,146 58,299 Allowance for doubtful accounts (185) (85) Total current assets 1,017,893 886,000 Fixed assets Tangible fixed assets 184,632 189,086 Intangible fixed assets 14,559 14,941 Investments and other assets Investment securities 727,088 706,955 Other fixed assets 99,913 113,696 Allowance for doubtful accounts (7,919) (8,037) Total investments and other assets 819,082 812,614 Total fixed assets 1,018,274 1,016,642 Total assets 2,036,168 1,902,642
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16 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable trade 382,596 362,446 Short-term borrowings 98,696 97,446 Straight bonds due within one year 10,000 10,000 Advances received and progress billings on uncompleted contracts 232,691 201,258 Deposit received 316,767 301,876 Provision for warranties on completed contracts 2,121 2,891 Provision for losses on construction contracts 75,362 68,208 Provision for performance-based remuneration for directors - 1,578 Other current liabilities 87,146 43,545 Total current liabilities 1,205,381 1,089,251 Long-term liabilities Straight bonds 40,000 40,000 Long-term borrowings 148,668 147,818 Provision for retirement benefits 8,007 5,879 Provision for share-based remuneration for directors 128 - Allowance for losses on business in subsidiaries and affiliates 437 314 Other long-term liabilities 4,953 5,564 Total long-term liabilities 202,194 199,576 Total liabilities 1,407,576 1,288,827 Net assets Shareholders’ equity Common stock 122,742 122,742 Capital surplus 30,686 30,686 Additional paid-in-capital 30,686 30,686 Retained earnings 379,778 379,706 Other retained earnings 379,778 379,706 Reserve for tax deferment on replacement of fixed assets 1,395 1,395 Reserve for purchase of specified shares 250 - Other reserve 226,500 275,500 Retained earnings carried forward 151,632 102,810 Treasury stock (724) (727) Total shareholders’ equity 532,482 532,408 Accumulated gains from valuation Unrealized gains on available-for-sale securities, net of taxes 96,109 81,407 Total accumulated gains from valuation 96,109 81,407 Total net assets 628,592 613,815 Total liabilities and net assets 2,036,168 1,902,642
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17 (2) (Summary) Quarterly non-consolidated statement of income First quarter of FY2026 (April 1, 2026 to June 30, 2026) (Millions of yen) From April 1, 2025 to June 30, 2025 From April 1, 2026 to June 30, 2026 Net sales Construction business 304,003 338,777 Development projects 5,604 7,932 Total net sales 309,607 346,709 Cost of sales Construction business 260,909 286,301 Development projects 3,369 2,456 Total cost of sales 264,279 288,758 Gross profit Construction business 43,093 52,475 Development projects 2,234 5,475 Total gross profit 45,327 57,951 Selling, general and administrative expenses 18,638 21,842 Operating income 26,689 36,108 Non-operating income 4,393 5,143 Non-operating expenses 1,204 1,576 Ordinary income 29,877 39,674 Extraordinary gains 4,207 3,898 Extraordinary losses 124 7 Income before income taxes 33,961 43,566 Income taxes 10,449 13,457 Net income 23,511 30,108 (Reference) Net income per share FY2026 (First quarter-end): 184.67 yen FY2025 (First quarter-end): 138.19 yen (Notes) 1. The Company’s quarterly non-consolidated financial statements are prepared in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Financial Statements, etc.” and the “Construction Industry Law’s enforcement regulations.” 2. Classifications of categories are noted in summary.
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18 4. Supplementary Information (1) (Non-consolidated) Amount of orders received, net sales and balance carried forward (i) Amount of orders received (Millions of yen) First quarter of FY2025 April 1, 2025 to June 30, 2025 First quarter of FY2026 April 1, 2026 to June 30, 2026 Change over previous year Rate of change FY2025 (Full year) April 1, 2025 to March 31, 2026 (Note) % (Note) % % (Note) % Civil engineering (1) Domestic public sector 14,558 3.0 37,966 13.5 23,407 160.8 258,242 14.5 Domestic private sector 26,575 5.5 52,936 18.8 26,361 99.2 134,440 7.5 Overseas 1,302 0.3 1,445 0.5 142 11.0 33,091 1.8 Total 42,436 8.8 92,348 32.8 49,912 117.6 425,774 23.8 Building construction (2) Domestic public sector 42,765 8.8 12,742 4.5 (30,023) (70.2) 179,863 10.1 Domestic private sector 391,464 80.8 164,926 58.7 (226,537) (57.9) 1,132,127 63.5 Overseas 2,380 0.5 1,264 0.5 (1,115) (46.9) 6,828 0.4 Total 436,610 90.1 178,933 63.7 (257,676) (59.0) 1,318,818 74.0 Total (1) + (2) Domestic public sector 57,324 11.8 50,708 18.0 (6,615) (11.5) 438,105 24.6 Domestic private sector 418,039 86.3 217,863 77.5 (200,176) (47.9) 1,266,567 71.0 Overseas 3,682 0.8 2,710 1.0 (972) (26.4) 39,919 2.2 Subtotal 479,047 98.9 271,282 96.5 (207,764) (43.4) 1,744,593 97.8 Real estate development 3,972 0.8 8,339 3.0 4,367 109.9 25,574 1.4 Other 1,631 0.3 1,530 0.5 (101) (6.2) 13,042 0.8 Total 484,651 100.0 281,152 100.0 (203,498) (42.0) 1,783,210 100.0 Note: The percentages indicate the proportion. (ii) Net sales (Millions of yen) First quarter of FY2025 April 1, 2025 to June 30, 2025 First quarter of FY2026 April 1, 2026 to June 30, 2026 Change over previous year Rate of change FY2025 (Full year) April 1, 2025 to March 31, 2026 (Note) % (Note) % % (Note) % Civil engineering (1) Domestic public sector 61,879 20.0 52,037 15.0 (9,841) (15.9) 251,098 17.3 Domestic private sector 23,237 7.5 32,120 9.3 8,883 38.2 120,690 8.3 Overseas 4,356 1.4 4,677 1.3 321 7.4 23,038 1.6 Total 89,473 28.9 88,835 25.6 (637) (0.7) 394,827 27.2 Building construction (2) Domestic public sector 24,445 7.9 30,456 8.8 6,010 24.6 123,291 8.5 Domestic private sector 184,422 59.6 209,138 60.3 24,716 13.4 860,284 59.2 Overseas 5,661 1.8 10,346 3.0 4,685 82.7 37,867 2.6 Total 214,529 69.3 249,941 72.1 35,411 16.5 1,021,443 70.3 Total (1) + (2) 6 . 1 Domestic public sector 86,325 27.9 82,494 23.8 (3,831) (4.4) 374,389 25.8 3 . 2 Domestic private sector 207,659 67.1 241,258 69.6 33,599 16.2 980,974 67.5 Overseas 10,017 3.2 15,024 4.3 5,006 50.0 60,906 4.2 Subtotal 304,003 98.2 338,777 97.7 34,774 11.4 1,416,270 97.5 Real estate development 3,972 1.3 6,402 1.9 2,430 61.2 22,980 1.6 Other 1,631 0.5 1,530 0.4 (101) (6.2) 13,042 0.9 Total 309,607 100.0 346,709 100.0 37,102 12.0 1,452,294 100.0 Note: The percentages indicate the proportion.
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19 (iii) Balance carried forward (Millions of yen) First quarter of FY2025 As of June 30, 2025 First quarter of FY2026 As of June 30, 2026 Change over previous year Rate of change FY2025 (Full year) As of March 31, 2026 (Note) % (Note) % % (Note) % Civil engineering (1) Domestic public sector 588,035 18.4 628,429 19.0 40,393 6.9 642,500 19.1 Domestic private sector 329,485 10.3 360,714 11.0 31,228 9.5 339,897 10.2 Overseas 58,744 1.8 68,618 2.1 9,874 16.8 71,850 2.1 Total 976,265 30.5 1,057,761 32.1 81,496 8.3 1,054,248 31.4 Building construction (2) Domestic public sector 303,030 9.5 323,568 9.9 20,537 6.8 341,282 10.2 Domestic private sector 1,840,212 57.5 1,860,801 56.5 20,589 1.1 1,905,013 56.7 Overseas 68,030 2.1 31,190 0.9 (36,840) (54.2) 40,272 1.2 Total 2,211,273 69.1 2,215,560 67.3 4,286 0.2 2,286,568 68.1 Total (1) + (2) Domestic public sector 891,066 27.9 951,997 28.9 60,931 6.8 983,783 29.3 Domestic private sector 2,169,697 67.8 2,221,515 67.5 51,818 2.4 2,244,910 66.9 Overseas 126,775 3.9 99,808 3.0 (26,966) (21.3) 112,122 3.3 Subtotal 3,187,538 99.6 3,273,322 99.4 85,783 2.7 3,340,816 99.5 Real estate development 14,536 0.4 19,067 0.6 4,530 31.2 17,130 0.5 Other - - - - - - - - Total 3,202,075 100.0 3,292,389 100.0 90,314 2.8 3,357,947 100.0 Note: The percentages indicate the proportion.