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May 16, 2025 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Briefing on the Financial Results for FY2024 (the Fiscal Year Ended March 31, 2025)
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Table of Contents Company Overview1 2 3 Financial Results Overview FY2024 (Consolidated) 1 4 Financial Results Forecast FY2025 (Consolidated) 5 Revision of NIPPON DENSETSU Three-year Management Plan 2024 and Future Efforts Implementing Management That Is Conscious of Cost of Capital and Stock Price Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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2 Company Overview1 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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3 Company Overview Associated Business 2.8% I&C Systems 13.0% Buildings 27.7% Segment FY2024 Net sales Including net sales to JR East Railways 117,160 91,451 Buildings 60,092 3,060 I&C Systems 28,156 14,032 Environmental Energy* 5,378 1,433 Associated Business* 6,134 685 Total 216,922 110,662 (51.0%) Net sales composition by segment (¥) (Unit: million yen) Net sales composition by segment (%) Railways 54.0% Leading company in the field of construction of electrified railway equipment (Railways) Nationwide business operations Covers a wide range of construction, including construction of electrical facilities for buildings (Buildings), construction of information and communication systems (I&C Systems), and construction for Environmental Energy 1 Environmental Energy 2.5% Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved * Environmental Energy includes construction for renewable energy, construction of ZEB, construction for projects to improve energy efficiency, and construction for air conditioning and water supply and drainage sanitization equipment . It was previously included in Buildings (Construction of electrical facilities for buildings) but became an independent segment in FY2024 . * Associated Business includes real estate business, total building management, maintenance and inspection of electrical facilities, sale of materials, software development, and design of electrical facilities .
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4 Financial Results Overview of FY2024 (Consolidated) 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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5 Financial Results Overview FY2024 (Consolidated) Business Environment ⚫ Public investment remained solid, and private capital investment was also on a recovery trend. ⚫ Redevelopment of urban areas and measures to address the aging of existing infrastructure progressed. ⚫ Capital investment increased in line with the recovery of passenger revenue at each railway company. FY2024 Results ⚫ Orders, net sales, operating profit, ordinary profit, and profit attributable to owners of parent all reached record highs. ⚫ Due to strong orders, backlog carried over to the next period also reached a record high. Dividends ⚫ Introduced a dividend payout ratio as a metric to clarify our commitment to returning profit (aiming for 40%) ⚫ Increase dividends to ¥90 from the previously forecasted amount of ¥64 Summary of Financial Results Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 2
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6 Financial Results Overview FY2024 (Consolidated)2 FY2023 Results FY2024 Forecast (A) FY2024 Results (B) Comparison with the forecast (B-A) Backlog at beginning of period 156,811 173,719 173,719 — —% Orders 208,036 197,100 223,718 26,618 13.5% Net sales 194,031 205,160 216,922 11,762 5.7% Gross profit 28,509 (14.7%) 31,540 (15.4%) 34,309 (15.8%) 2,769 8.8% SG&A 15,060 (7.8%) 16,870 (8.2%) 16,375 (7.5%) -494 -2.9% Operating profit 13,448 (6.9%) 14,670 (7.2%) 17,934 (8.3%) 3,264 22.3% Non-operating income and expenses 1,452 (0.7%) 1,160 (0.6%) 1,466 (0.7%) 306 26.4% Ordinary profit 14,900 (7.7%) 15,830 (7.7%) 19,400 (8.9%) 3,570 22.6% Extraordinary income and losses 540 (0.3%) 30 (0.0%) 815 (0.4%) 785 —% Profit attributable to owners of parent 10,042 (5.2%) 10,500 (5.1%) 13,192 (6.1%) 2,692 25.6% Backlog carried over to next period 173,719 168,883 183,075 14,192 8.4% (Figures in parentheses are ratios to net sales. Unit: million yen) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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7 Financial Results Overview FY2024 (Consolidated) Orders 172,335 182,693 208,036 197,100 223,718 0 100,000 200,000 300,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (Unit: million yen) Compared to FY2023: +¥15.6 bn Compared to Forecast: +¥26.6 bn Sales 173,569 172,100 194,031 205,160 216,922 0 100,000 200,000 300,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit 7,454 9,658 13,448 14,670 17,934 0 10,000 20,000 30,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (7.2%) (4.3%) (6.9%) (5.6%) Backlog carried over to next period 144,574 156,811 173,719 168,883 183,075 0 100,000 200,000 300,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result 2 Operating profit margin (%) Compared to FY2023: +¥22.8 bn Compared to Forecast: +¥11.7 bn Compared to FY2023: +¥4.4 bn Compared to Forecast: +¥3.2 bn Compared to FY2023: +¥9.3 bn Compared to Forecast: +¥14.1 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (8.3%)
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8 Financial Results Overview FY2024 (Consolidated)2 Factors for Changes in Operating Profit (Year on year) FY2023 Operating profit 13,448 17,934 Increase in fixed expenses (System expenses) Increase in fixed expenses (Personnel expenses) Increase in SG&A (System expenses) Increase in SG&A (Other) FY2024 Operating profitGross profit: ¥5,800 million increase SG&A: ¥1,314 million increase Increase in SG&A (Personnel expenses) -1,072 -385 -609 -1,116 -326 (Unit: million yen) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved -320 Increase in fixed expenses (Other) ・Impact of expansion of the scope of application of the percentage of completion method (non-consolidated): Impact of expansion of the scope of application of over-time revenue recognition method by estimating the progress of satisfying performance obligations from FY2024 ・ Increase in system expenses (non-consolidated): Core systems (Introduction of new systems) ・ Increase in personnel expenses (non-consolidated): Employees’ salaries, provision for bonuses +8,315 Increase in profit on completed construction contracts Impact of expansion of the scope of application of the percentage of completion method 2,579
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•受注高は各鉄道事業者の工事抑制の影響を受け減 少 •売上高は新幹線工事等の大型工事の施工が順調に 推移し微増 •営業利益は効率的な施工により増加 •次期繰越高は受注高減少の影響により減少となるも 高水準を維持 9 Financial Results Overview FY2024 (Consolidated) Construction of Electrified Railway Equipment ⚫ Orders from JR East that had experienced some delays increased in the second half. Orders were robust, supported in part by enhanced sales efforts targeting other private railway companies. ⚫ Net sales significantly increased due to an increase in orders driven by the expansion of investments from JR East and steady progress in carried-over construction work. ⚫ Operating profit also significantly increased, reflecting improving construction efficiency due to an increase in the volume of construction works and higher construction unit prices. ⚫ Backlog carried over to the next period also increased due to strong orders. Construction of Electrical Facilities for Buildings 2 Summary by Business Segment ⚫ We maintained a high level of orders while continuing to take orders selectively taking into account the volume of construction work in hand and profitability. ⚫ Net sales significantly increased, with steady progress in high-level construction work in hand. ⚫ Operating profit also significantly increased due to the contribution of selective order taking to profitability improvement. ⚫ Backlog carried over to the next period remained at a high level. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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10 Financial Results Overview FY2024 (Consolidated) ⚫ Orders significantly increased due in part to a successful bid for a large-scale network project. ⚫ Net sales also increased due in part to order growth for railway communication construction. ⚫ Operating profit increased, led by the passing of costs for base station and network construction. ⚫ Backlog carried over to the next period also increased significantly as orders grew. Construction for Environmental Energy 2 Summary by Business Segment Construction of Information and Communication Systems ⚫ Orders increased due in part to large-scale construction related to a wind power plant project and a station-front redevelopment project that involves electrical, air conditioning, and sanitation work in one. ⚫ We secured net sales on par with the previous fiscal year, exceeding our forecast, due to an increase in orders and changes in contracts for construction work in hand. ⚫ Operating profit significantly increased in part as profitability of large-scale construction improved due to changes in contracts for construction work in hand. ⚫ Backlog carried over to the next period also increased as orders grew. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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11 Financial Results for Construction of Electrified Railway Equipment Segment Orders 101,371 97,936 115,832 111,510 120,114 0 50,000 100,000 150,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Net sales 100,114 101,415 107,643 111,180 117,160 0 50,000 100,000 150,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit 3,429 5,076 6,871 7,590 8,986 0 5,000 10,000 15,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (6.8%) (3.4%) (6.4%) (5.0%) Backlog carried over to next period 79,117 75,638 82,760 83,089 85,714 0 50,000 100,000 150,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit margin (%) 2 (Unit: million yen) Compared to FY2023: +¥4.2 bn Compared to Forecast: +¥8.6 bn Compared to FY2023: +¥9.5 bn Compared to Forecast: +¥5.9 bn Compared to FY2023: +¥2.1 bn Compared to Forecast: +¥1.3 bn Compared to FY2023: +¥2.9 bn Compared to Forecast: +¥2.6 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (7.7%) * We have revised segment classifications effective Q2 of FY2024. Results for FY2023 and later are based on the segment classifications after the revision.
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12 Financial Results for Construction of Electrified Railway Equipment Segment Orders and Net Sales (Disaggregated) 2 FY2021 FY2022 FY2023 FY2024 Orders 54.8 53.9 69.9 69.7 Net sales 57.3 54.4 58.7 66.3 JR 数値未集計 FY2021 FY2022 FY2023 FY2024 Orders 7.3 7.5 8.4 11.4 Net sales 6.8 7.5 8.0 9.7 Other private railway companies FY2021 FY2022 FY2023 FY2024 Orders 11.1 7.6 4.4 2.5 Net sales 7.6 9.6 9.3 5.6 Public railway companies JRTT FY2021 FY2022 FY2023 FY2024 Orders 73.4 69.0 82.8 83.7 Net sales 71.8 71.6 76.1 81.6 Total (Unit: billion yen) * JRTT stands for Japan Railway Construction, Transport and Technology Agency. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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13 Financial Results for Construction of Electrical Facilities for Buildings Segment Orders 47,222 57,797 59,247 49,870 58,808 0 40,000 80,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Net sales 42,668 41,391 47,584 55,540 60,092 0 40,000 80,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit 1,957 2,198 3,188 3,880 4,267 0 4,000 8,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (7.0%) (4.6%) (5.3%) Backlog carried over to next period 47,061 63,467 69,818 64,147 68,534 0 40,000 80,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (Unit: million yen) Compared to FY2023: -¥0.4 bn Compared to Forecast: +¥8.9 bn Compared to FY2023: +¥12.5 bn Compared to Forecast: +¥4.5 bn Compared to FY2023: +¥1.0 bn Compared to Forecast: +¥0.3 bn Compared to FY2023: -¥1.2 bn Compared to Forecast: +¥4.3 bn (6.7%) 2 * Results for FY2021 and FY2022, and backlog for FY2023 include those for the construction for environmental energy segment. * We have revised segment classifications effective Q2 of FY2024. Results for FY2023 and later are based on the segment classifications after the revision. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Operating profit margin (%) (7.1%)
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14 Orders 22,405 25,180 26,697 28,280 33,885 0 20,000 40,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Net sales 27,945 26,032 27,057 28,400 28,156 0 20,000 40,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit 1,387 1,346 1,765 2,090 2,325 0 2,000 4,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (7.4%) (5.0%) (6.5%) (5.2%) Backlog carried over to next period 18,115 17,263 16,666 16,547 22,396 0 20,000 40,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (Unit: million yen) Compared to FY2023: +¥7.1 bn Compared to Forecast: +¥5.6 bn Compared to FY2023: +¥1.0 bn Compared to Forecast: -¥0.2 bn Compared to FY2023: +¥0.5 bn Compared to Forecast: +¥0.2 bn Compared to FY2023: +¥5.7 bn Compared to Forecast: +¥5.8 bn Operating profit margin (%) 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (8.3%) Financial Results for Construction of Information and Communication Systems Segment * We have revised segment classifications effective Q2 of FY2024. Results for FY2023 and later are based on the segment classifications after the revision.
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15 5,006 3,850 5,378 0 4,000 8,000 FY2023 Result FY2024 Forecast FY2024 Result 3,146 3,566 4,539 0 4,000 8,000 FY2023 Result FY2024 Forecast FY2024 Result 2,983 4,270 6,771 0 4,000 8,000 FY2023 Result FY2024 Forecast FY2024 Result 219 230 684 0 400 800 FY2023 Result FY2024 Forecast FY2024 Result 2 (Unit: million yen) * Results for FY2021 and FY2022 are not presented as they are included in the results of the construction of electrical facilities for buildings segment. Orders Net sales Operating profit (4.4%) (6.0%) Financial Results for Construction for Environmental Energy Segment Backlog carried over to next period * We have revised segment classifications effective Q2 of FY2024. Results for FY2023 and later are based on the segment classifications after the revision. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Compared to FY2023: +¥3.7 bn Compared to Forecast: +¥2.5 bn Compared to FY2023: +¥0.3 bn Compared to Forecast: +¥1.5 bn Compared to FY2023: +¥0.4 bn Compared to Forecast: +¥0.4 bn Compared to FY2023: +¥1.3 bn Compared to Forecast: +¥0.9 bn (12.7%) Operating profit margin (%)
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16 Financial Results for Associated Business Segment Orders 1,336 1,779 3,274 3,170 4,137 0 4,000 8,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Net sales 2,841 3,261 6,740 6,190 6,134 0 4,000 8,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result Operating profit 680 1,036 1,402 880 1,670 0 1,000 2,000 3,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (14.2%) (23.9%) (20.8%) (31.8%) Backlog carried over to next period 280 443 1,327 1,534 1,890 0 1,000 2,000 3,000 FY2021 Result FY2022 Result FY2023 Result FY2024 Forecast FY2024 Result (Unit: million yen) Compared to FY2023: +¥0.8 bn Compared to Forecast: ¥0.9 bn Compared to FY2023: -¥0.6 bn Compared to Forecast: -¥0.0 bn Compared to FY2023: +¥0.2 bn Compared to Forecast: +¥0.7 bn Compared to FY2023: +¥0.5 bn Compared to Forecast: +¥0.3 bn 2 * We have revised segment classifications effective Q2 of FY2024. Results for FY2023 and later are based on the segment classifications after the revision. Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (27.2%) Operating profit margin (%)
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Name of the construction Haneda Airport Access Lines (East Yamanote Route and New Access Lines) Wireless Train Control System (Advanced Train Administration and Communications System [ATACS]) Replacement of Shinkansen Overhead Contact Lines due to Aging and for Speed Enhancement New Line Extensions (Tokyo Metro: Extensions of Yurakucho Line and Namboku Line) New Suica Gate System (Networks and Monitoring and Maintenance) Start Business with New Customers and in New Industries Projects by JR Major Railway-Related Construction Projects2 FY2027 FY2028 FY2029FY2026FY2025FY2024 Seismic Reinforcement of Shinkansen’s Overhead Line Mast (Replacement of Steel Pipe Mast) Measures for Aging Railway Electrical Facilities (Maintenance and Renewal) Projects by other public and private railways Renewal Work of Substation Facilities New Line Extensions (Utsunomiya LRT: Extension to the West) New Line Extensions (Hokkaido Shinkansen: Extension to Sapporo) Collecting information: Scheduled to start operation in the mid-2030s Collecting information: Scheduled to start construction in or after FY2027 and start operation in the early 2030s Collecting information: Scheduled for completion in or after FY2038 Collecting information Construction to Improve Poor Mobile Phone Reception at TAKANAWA GATEWAY 17 Tokyo Metropolitan Area, Sendai Area, and Niigata Area The system planned to be introduced gradually from the summer of FY2023 (JR East) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Tohoku Shinkansen: between Ueno and Omiya, and Furukawa and Morioka Works to relocate obstructions Scheduled to start operation in FY2031 (JR East) Plan to replace approx. 4,000 masts from FY2021 to 2027 and approx. 4,000 masts from FY2028 to 2033 (JR East) Construction planned for Joetsu Shinkansen: between Omiya and Honjo-waseda (JR East) Renovation and Other Works for Various Facilities Due to Aging of Railway Electrical Facilities Keihin Tohoku Line: between Kawaguchi and Omiya, Yurakucho and Kamata, Nippori and Oji, etc. Yamanote Line :between Shinagawa and Harajuku, Shibuya and Mejiro, etc. Tohoku Shinkansen: between Omiya and Oyama, Fukushima and Ichinoseki, etc. Station-front Redevelopment Projects (Tokyo Metropolitan Area, Hokkaido, etc.)
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2 Name of the construction 大阪メトロ JR East JR East FY2024 FY2025 FY2026 18 Large-scale project Networks CCTV Facilities Work at the Meishin Expressway and Others (Orders Received In Fist Half of FY2024) Energy creation JR East JR East Major Orders Received (Second Half of FY2024) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Scheduled for completion in FY2029 Scheduled for completion in FY2029 New Panelboard Installation and Other Works outside Shin Sendai Substation Hebikubo and Meguro River Interlocking Device Replacement and Signal Facility Upgrade and Other Works Freight Line Switching and Railway Track Upgrades for Muraoka New Station between Ofuna and Fujisawa on Tokaido Line Railway Track Repairs between Shimbashi and Tamachi Lighting Upgrades and Other Works for Tunnel between Shin- ochanomizu Station and Kokkai-gijidomae StationTokyo Metro Yakult’s New Chiba Plant Construction Work JR Ebisu Building Extra-High-Voltage Substation Facility Renewal Work Misawa Air Base (6) New Hangar Electrical and Other Works Hiroshima University (Higashi-hiroshima) New SKCM2 Building Electrical Facility Work Scheduled for completion in FY2029 Large-scale project Large-scale project Governmental agency Governmental agency Electric, air conditioning, and sanitation JRE Tomikawa and Ogifushi Solar Power Generation Plant Construction Work Scheduled for completion in FY2027 Scheduled for completion in FY2028 (Tentative Name) Sannomiya New Station Building Development Project Harajuku Station Old Station Building Site Development
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19 Major Orders Received (Second Half of FY2024)2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Freight Line Switching and Railway Track Upgrades for Muraoka New Station between Ofuna and Fujisawa on Tokaido Line Harajuku Station Old Station Building Site Development (Electric, air conditioning, and sanitation) Photo provided by East Japan Railway Company (Tentative Name) Sannomiya New Station Building Development Project Photo provided by West Japan Railway Company * This is just an image and may change depending on future design and discussions with relevant authorities. Photo provided by East Japan Railway Company
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20 Financial Results Forecast FY2025 (Consolidated)3 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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21 Financial Results Forecast FY2025 (Consolidated)3 FY2024 Result FY2025 Forecast Year on year FY2026 Plan Backlog at beginning of period 173,719 183,075 9,355 5.4% 182,069 Orders 223,718 226,170 2,451 1.1% 234,100 Net sales 216,922 230,480 13,557 6.2% 238,000 Gross profit 34,309 (15.8%) 34,480 (15.0%) 170 0.5% 36,000 (15.1%) SG&A 16,375 (7.5%) 16,820 (7.3%) 444 2.7% 17,600 (7.4%) Operating profit 17,934 (8.3%) 17,660 (7.7%) -274 -1.5% 18,400 (7.7%) Non-operating income and expenses 1,466 (0.7%) 1,240 (0.5%) -226 -15.4% 1,200 (0.5%) Ordinary profit 19,400 (8.9%) 18,900 (8.2%) -500 -2.6% 19,600 (8.2%) Extraordinary income and losses 815 (0.4%) 1,900 (0.8%) 1,084 132.9% 2,300 (1.0%) Profit attributable to owners of parent 13,192 (6.1%) 13,380 (5.8%) 187 1.4% 14,100 (5.9%) Backlog carried over to next period 183,075 182,069 -1,006 -0.5% 180,800 (Figures in parentheses are ratios to net sales. Unit: million yen) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Key Points in the Financial Results Forecast ⚫ Net sales are expected to greatly exceed the record high set in FY2024 against a backdrop of record-high backlog at the beginning of the period and orders. ⚫ Profit attributable to owners of parent is also expected to surpass the record high set in FY2024. ➢ Operating profit would actually grow, excluding a one-off profit growth factor,* due to a sharp increase in net sales. ➢ Strategically-held shares would be reduced ahead of schedule and an expansion in scale is planned. * A one-off profit growth factor is the impact of ¥2,579 million by expansion of the scope of application of over-time revenue recognition method by estimating the progress of satisfying performance obligations from FY2024. [Refer to Factors for Changes in Operating Profit on page 8.] Achieved ¥15.3 billion planned for the final year of the medium- term management plan Expected to achieve ¥221.5 billion planned for the final year of the medium-term management plan Revised since the formulation of the medium- term management plan
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22 Financial Results Forecast FY2025 (Consolidated) Orders 208,036 223,718 226,170 234,100 0 100,000 200,000 300,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 13,448 17,934 17,660 18,400 0 10,000 20,000 30,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan (6.9%) (7.7%) Operating profit margin (%) Backlog Compared to FY2024: +¥9.3 bn Net sales 194,031 216,922 230,480 238,000 0 100,000 200,000 300,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Operating profit Compared to FY2024: +¥2.4 bn Compared to FY2024: +¥13.5 bn Compared to FY2024: -¥0.2 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (8.3%) (7.7%) 156,811 173,719 183,075 182,069 0 100,000 200,000 300,000 FY2023 FY2024 FY2025 FY2026 Plan
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23 Financial Results Forecast for Construction of Electrified Railway Equipment Segment 115,832 120,114 119,730 123,600 0 50,000 100,000 150,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 6,871 8,986 9,190 9,700 0 5,000 10,000 15,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan (6.4%) (7.7%) 75,638 82,760 85,714 83,784 0 50,000 100,000 150,000 FY2023 FY2024 FY2025 FY2026 Plan 107,643 117,160 121,660 126,400 0 50,000 100,000 150,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Operating profit margin (%) Compared to FY2024: +¥2.9 bnBacklog Orders Net sales Operating profit Compared to FY2024: -¥0.3 bn Compared to FY2024: +¥4.4 bn Compared to FY2024: +¥0.2 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (7.7%) (7.6%) • Efforts toward expansion of orders are steadily underway and increasingly reflected in sales and profits. • We will request railway companies, including JR East, to raise order unit prices for improving profitability.
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24 Financial Results Forecast for Construction of Electrical Facilities for Buildings Segment Orders 59,247 58,808 68,730 68,800 0 40,000 80,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3,188 4,267 4,580 4,700 0 4,000 8,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan (6.7%) (7.1%) 63,467 69,818 68,534 72,854 0 40,000 80,000 FY2023 FY2024 FY2025 FY2026 Plan 47,584 60,092 64,410 65,800 0 40,000 80,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Operating profit margin (%) Compared to FY2024: -¥1.2 bnBacklog Net sales Operating profit Compared to FY2024: +¥9.9 bn Compared to FY2024: +¥4.3 bn Compared to FY2024: +¥0.3 bn * Backlog for FY2023 includes that for the construction for environmental energy segment . Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (7.1%) (7.1%) • Construction investments in sectors, such as large-scale redevelopment around stations and data centers, would remain robust, leading to a significant increase in orders. • Following the completion of large-scale construction, net sales would increase, and operating profit is also expected to exceed that in FY2024, which saw a one-off increase.
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25 Financial Results Forecast for Construction of Information and Communication Systems Segment Orders 26,697 33,885 30,710 31,600 0 20,000 40,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 1,765 2,325 2,490 2,600 0 2,000 4,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan (8.3%) (6.5%) (7.6%) 17,263 16,666 22,396 19,806 0 20,000 40,000 FY2023 FY2024 FY2025 FY2026 Plan 27,057 28,156 33,300 34,100 0 20,000 40,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Operating profit margin (%) Compared to FY2024: +¥5.7 bnBacklog Net sales Operating profit Compared to FY2024: -¥3.1 bn Compared to FY2024: +¥5.1 bn Compared to FY2024: +¥0.1 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (7.5%) • Orders would decrease after large-scale network construction projects. • We expect increases in net sales and operating profit following progress in large-scale construction and an increase in railway communication construction.
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26 Financial Results Forecast for Construction for Environmental Energy Segment Orders 2,983 6,771 3,160 6,000 0 4,000 8,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 219 684 250 300 0 400 800 FY2023 FY2024 FY2025 Forecast FY2026 Plan (6.4%) (4.4%) 3,146 4,539 3,059 0 4,000 8,000 FY2024 FY2025 FY2026 Plan 5,006 5,378 4,640 4,700 0 4,000 8,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Operating profit margin (%) Backlog Net sales Operating profit Compared to FY2024: -¥3.6 bn Compared to FY2024: -¥0.7 bn Compared to FY2024: -¥0.4 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Compared to FY2024: +¥1.3 bn (12.7%) (5.4%) • Orders would decrease as we will focus on large-scale carried-over construction projects. • Net sales and operating profit are expected to decline after the completion of highly profitable large-scale construction projects. * Backlog for FY2023 is not presented as it is included in that for the construction of electrical facilities for buildings segment.
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27 Financial Results Forecast for Associated Business Segment Orders 3,274 4,137 3,840 4,100 0 4,000 8,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 1,402 1,670 1,150 1,100 0 1,000 2,000 3,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan (20.8%) (15.7%) 443 1,327 1,890 2,566 0 1,000 2,000 3,000 FY2023 FY2024 FY2025 FY2026 Plan 6,740 6,134 6,470 7,000 0 4,000 8,000 FY2023 FY2024 FY2025 Forecast FY2026 Plan 3 (Unit: million yen) Compared to FY2024: +¥0.5 bnBacklog Net sales Operating profit Compared to FY2024: -¥0.2 bn Compared to FY2024: +¥0.3 bn Compared to FY2024: -¥0.5 bn Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (27.2%) (17.8%) Operating profit margin (%) • Net sales would increase due to revenue contributions from two rental apartment buildings opened in FY2024. • Operating profit is expected to decline due to the termination of software development by group companies.
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28 Revision of NIPPON DENSETSU Three-year Management Plan 2024 and Future Efforts 4 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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29 Direction toward Sustainable Growth4 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 29 I&C systems Buildings Associated business Environ- mental energy Railways I&C systems Buildings Associated business Environ- mental energy Railways Strengthening of the revenue base Investment for growth Return to shareholders Contribution to local communities Reduction of environmental impact Securing and developing human resources Increase in capital efficiency DX and development of technologies Strengthening Infrastructure Major station-front redevelopment Increase in demand related to the environment New railway track projects Increase in demand for data centers and semiconductors Increase in corporate value Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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30 NDK Vision90 Vision for FY2031 (the 90th Term) 4 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Increase orders from regular customers, including station buildings and schools Secure orders from the mobile field and increase orders from the network field NDK Vision90 With pride and responsibility as a leading company in the field of construction of electrified railway equipment, we aim to become a comprehensive infrastructure facilities construction company by expanding our business in construction segments of electrical facilities for buildings, information and communication systems, and environmental energy. Strengthen the revenue base by further solidifying relationships with regular customers Participate in large-scale development projects nationwide Nationwide expansion of the infrastructure sharing business Increase business with public and private railways nationwide to expand the market presence Expand business nationwide in the fields of air conditioning and sanitation, ZEB, and energy creation Enter new businesses (metal recycling business and local communities-related business) Creation of New Businesses Expansion of Business Areas Balance the proportions of business segments Expand construction segments of electrical facilities for buildings, information and communication systems, and environmental energy Secure orders from JR East and other JR companies Increase orders from regular customers, including station buildings and schools Secure orders from the mobile field and increase orders from the network field
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31 Process of Growth toward the NDK Vision90 Expand the existing revenue base and monetize new domains NDK Vision90 FY2031 (90th term) Net sales Operating profit ROE Market capitalization ¥260.0 bn ¥20.0 bn 10% or more ¥230.0 bn NIPPON DENSETSU Three-year Management Plan 2021 FY2021–2023 (80th to 82nd terms) FY2023 Net sales Operating profit ROE Market capitalization ¥194.0 bn ¥13.4 bn 5.5% ¥125.7 bn Medium-term management plan that will provide a toehold for NDK Vision90 NIPPON DENSETSU Three-year Management Plan 2024 FY2024–2026 (83rd to 85th terms) Net sales Operating profit ROE Market capitalization ¥238.0 bn ¥18.4 bn 8% ¥200.0 bn Sow the seeds for revenue expansion FY2026 FY2031 * Before revision: Net sales ¥221.5 bn, Operating profit ¥15.3 bn * * Expected to achieve one year ahead of schedule (plan revised) 4 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Railways 56% Buildings 25% I&C Systems 14% Environmental Energy 3% Associated Business 2% Railways 53%Buildings 28% I&C Systems 14% Environmental Energy 2% Associated Business 3% Railways 47% Buildings 28% I&C Systems 16% Environmental Energy 5% Associated Business 4%
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32 Business Strategies4 Construction of Electrified Railway Equipment Construction of Electrical Facilities for Buildings ・ Exceed expectations for project and maintenance Construction orders due to the expansion of capital investment of JR East Expect this environment to consist in near term ・ Leverage past achievements in existing industries to expand entry into other industries in private railway construction Increase orders with high volume of inquiries ・ Continue to request JR East to raise order unit prices and railway companies to smooth out the timing of construction orders ・ Build construction systems to further increase orders and secure human resources in partner companies ・ Improve profit margins by encouraging clients’ understanding of pricing and by strengthening selective order taking focusing on profitability ・ Receive multiple large-scale renewal works by proposing aging equipment renewal focusing on past projects ・ Secure orders from regular customers, etc. and ensure selective order taking ・ Strategically develop new customers for strengthening the revenue base in a highly competitive environment ・ Strengthen proposal-based sales for facilities diagnostics and equipment renewal focusing on past projects Assessment of the current status Future efforts Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (Billion yen) FY2026 Plan (after revision) Orders Net sales Operating profit 120.1 117.1 8.98 FY2024 Results FY2026 Plan (after revision) (Billion yen)FY2024 Results Assessment of the current status Future efforts Orders Net sales Operating profit 123.6 126.4 9.7 Orders Net sales Operating profit 58.8 60.0 4.26 Orders Net sales Operating profit 68.8 65.8 4.7 Increase orders from JR East and other JR companies Strengthen relationships with regular customers in the public and private railway sector, start business with new customers and in new industries Strengthen the revenue base Expand the business domain Expand the revenue base by strengthening relationships with regular customers Participate in large-scale projects nationwide and enter fields that will serve as a future revenue base Strengthen the revenue base Expand the business domain
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33 Business Strategies4 Increase orders for network and mobile construction Increase revenue from infrastructure sharing business and monitoring and operation services Construction of Information and Communication Systems ・ Infrastructure sharing (network sharing by mobile telecommunications carriers) ・ Optical fiber leasing (leasing high-quality optical fiber lines along railway tracks) * Infrastructure sharing business Construction for environmental energy ・ Receive large-scale highway network projects valued at over ¥2.0 billion ・ Expand the infrastructure sharing business to other areas in town. ・ Receive orders for TAKAMATSU ORUNE (infrastructure sharing) and IR Ishikawa Railway (network) under the monitoring and operating services ・ Focus on securing orders for large-scale network projects ・ Secure orders for infrastructure sharing business and optical fiber leasing business ・ Nationwide expansion of monitoring and operation services ・ Expand sales with expertise in renovating our buildings into ZEB and know-how of ZEB planners ・ Undertake survey and design for construction of wind power generation and grid-scale storage battery stations, as well as receive two power plant construction works ・ Receive the order for combined electric, air conditioning, and sanitation work for Harajuku Station Old Station Building Site Development ・ Increase orders for construction of wind power generation and grid-scale storage battery stations through early entry from the design stage ・ Aim for increasing orders in Tohoku and Western Japan areas towards nationwide expansion of air conditioning and sanitation construction Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (Billion yen)FY2024 Results (Billion yen)FY2024 Results Orders Net sales Operating profit 33.8 28.1 2.32 Orders Net sales Operating profit 31.6 34.1 2.6 Orders Net sales Operating profit 6.7 5.3 0.68 Orders Net sales Operating profit 6.0 4.7 0.3 Strengthen the revenue base Expand the business domain Expand the business domain Increase orders for new and renovated ZEBs, increase orders for construction for energy generation projects Strengthen toward nationwide business expansion in the fields of construction for air conditioning and sanitation Assessment of the current status Future efforts Assessment of the current status Future efforts FY2026 Plan (after revision) FY2026 Plan (after revision)
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34 Business Strategies4 Associated business ・ Completion of rental apartments, Lotus Ueno Ikenohata and Lotus Shizuoka ・ Proceed with demolition to rebuild Lotus Shimokitazawa as the Company’s first ZEH rental apartment (scheduled for completion in May 2026) ・ Gather information on real estate investment projects and consider use of owned land for monetization (Okayama Business Office, etc.) ・ Enter into the metal recycling business closely aligned with our core businesses Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (Billion yen)FY2024 Results Orders Net sales Operating profit 4.1 6.1 1.67 Orders Net sales Operating profit 4.1 7.0 1.1 Reduce environmental impact and contribute to local communities Develop new businesses and strengthen the real estate business Expand the business domain Assessment of the current status Future efforts FY2026 Plan (after revision)
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35 4 Strategies to Solidify the Management Foundation Expand the target for new graduates and mid-career recruitment Targets for FY2031: Increase the number of construction workers by 20% compared to FY2023 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Number of construction workers (*) ・ Resulted in the hiring of 93 new graduates (among them, 11 were liberal arts students for technical positions) through initiatives, such as the active recruitment of liberal arts students for technical positions and the increased number of site tours ・ Reached 13 mid-career hires (among them, three were inexperienced) by expanding mid-career recruitment methods and hiring inexperienced individuals ・ Enhance the hiring of liberal arts students for technical positions and mid-career recruitment of inexperienced individuals ・ Conduct recruitment for high school graduates ・ Strengthen relationships with schools through the use of recruiters and build an applicant pool Assessment of the current status Future efforts FY2023 FY2024 % Change 1,325 1,333 +0.6% Secure Human Resources * Construction workers refer to those directly involved in supervising construction works on-site Number of new graduate hires (to be joined the Company in April 2026) Plan: 120 Number of mid-career hires (plan for FY2025) Plan: 26 Number of new graduate hires (joined the Company in April 2025) Plan: 110 Results: 93 (compared to the previous fiscal year: ±0) Number or mid-career hires (results for FY2024) Plan: 20 Results: 13 (compared to the previous fiscal year: +7)
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36 4 Strategies to Solidify the Management Foundation Improve construction capabilities by strengthening the systems of partner companies ⚫ Support recruitment activities, including creating websites and hiring foreign workers ⚫ Strengthen safety training at the practical training facilities of Chuo Gakuen Support in recruitment Increase the number of workers Support in training Improve safety and quality Business succession Solve successor issues Pass on skills Strengthen construction systems Strengthen Construction Systems Increase productivity through the increased efficiency of on-site operations ⚫ Strengthen the systems to support construction sites by the back office Construction sites Back office ● Prepare documents and drawings ● Examine issues ● Supervise the sites Collaboration and sharing in a cloud environment ‣ Streamline and smooth out operations ‣ Reduce the burden on on-site operations and increase productivity ・ Expand operations that can be outsourced to the back office ・ Expand back-office operations nationwide and implement remote support from the Tokyo area to across the country Assessment of the current status Future efforts ・ Providing educational support aimed at enhancing construction capabilities of partner companies and recruitment support to secure human resources ・ Providing support in recruitment of foreign nationals under the Specified Skilled Worker program for partner companies (plan to hire two at a group company in FY2025) ・ Consider new support services tailored to meet needs of partner companies ・ Newly create websites to support recruitment for partner companies (scheduled for first half of FY2025) ・ Continue to support hiring foreign workers at partner companies Assessment of the current status Future efforts Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved ・ Well-established support from the back office, contributing to smoothing out operations for on-site personnel and increasing productivity Net sales per construction worker increased year on year (non- consolidated) FY2024: ¥131 million FY2023: ¥118 million
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37Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Total ¥75.0 bn FY2024–FY2031 Planned investment for growth Business 31% Productivity improvement 52% Human resources ¥2.3 bn ・ Develop human resources, including Chuo Gakuen ・ Improve performance-based remuneration stemming from an increase in base pay ・ Establish facilities rooted in local environments Productivity improvement ¥7.0 bn ・ Renew core business systems ・ R&D of patented new methods and related technologies for railway electrification works (patent registered) ・ Enhance safety and save labor through renewing construction vehicles and machinery Business ¥4.2 bn ・ Provide support to partner companies in enhancing systems, including securing of human resources and business succession ・ Construct two rental apartment buildings for income FY2024 Result Total investment for growth ¥13.5 bn Human resources ・ Secure human resources through attractive performance-based remuneration ・ Strengthen human resource development by various measures, including renewing and adding practical training facilities ・ Improve the workplace environment Productivity improvement ・ Develop and introduce new technologies ・ Strengthen DX education and utilize generative AI ・ Enhance safety and save labor through renewing construction vehicles and machinery Business ・ Conduct M&As aimed at strengthening the construction systems and entering new businesses ・ New businesses, such as metal recycling and infrastructure sharing ・ Enhance support for partner companies in recruitment and business succession Human resources 17% Investment for Growth 4
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155.2 153.7 150.8 162.5 170.1 174.4 174.2 172.1 178.9 182.4 198.2 195.6 173.5 172.1 194.0 216.9 230.4 238.0 10.88 10.76 9.66 10.9 11.2 13.84 14.33 13.81 14.87 14.85 16.49 14.18 7.45 9.65 13.44 17.93 17.66 18.4 0.0 50.0 100.0 150.0 200.0 250.0 68th term FY2009 69th term FY2010 70th term FY2011 71st term FY2012 72nd term FY2013 73rd term FY2014 74th term FY2015 75th term FY2016 76th term FY2017 77th term FY2018 78th term FY2019 79th term FY2020 80th term FY2021 81st term FY2022 82nd term FY2023 0 5 10 15 20 25 NIPPON DENSETSU Three-year Management Plans 38 Expand net sales and secure operating profit To grow sustainably Operating profit in yenNet sales 83rd term FY2024 Net sales (billion yen) Operating profit (billion yen) Three-year management plan 2009 Three-year management plan 2012 Three-year management plan 2015 Three-year management plan 2018 Three-year management plan 2024 84th term FY2025 Forecast 85th term FY2026 Plan Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Three-year management plan 2021 4
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39 Implementing Management That is Conscious of Cost of Capital and Stock Price5 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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40 11,274 9,546 5,222 7,171 10,042 13,192 7.12 5.73 3.04 4.10 5.53 6.92 0.0 1.5 3.0 4.5 6.0 7.5 0 5,000 10,000 15,000 20,000 25,000 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 ROE and Profit Profit ROE (million yen) (%) ■ ROE has exceeded the estimated capital cost, reaching the pre-COVID levels, driven by improvements in profitability and efficiency along with revenue expansion and increased profits. Efforts toward enhancing capital efficiency 5 Implementing Management That Is Conscious of Cost of Capital and Stock Price Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 5.69 4.88 3.01 4.17 5.18 6.08 3.0 5.0 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Profitability (profit margin) 1.60 1.55 1.50 1.47 1.52 1.51 1.4 1.5 1.6 1.7 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Stability (Financial leverage) 0.77 0.74 0.67 0.66 0.69 0.73 100,000 250,000 400,000 0.6 0.7 0.8 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Efficiency (Asset turnover ratio) Net sales Total assets Asset turnover ratio (%) (Times) (Times) (million yen) Note: Cost of capital for FY2024 was approx. 6.8%
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41 Three years from FY2021 Total dividends ¥7.0 bn Three years from FY2018 Total dividends ¥6.7 bn Aiming for a dividend payout ratio of 40% Total special dividends Three years from FY2009 Total dividends ¥2.2 bn Three years from FY2015 Total dividends ¥5.2 bn Three years from FY2012 Total dividends ¥3.0 bn (¥12) ¥0.8 bn (¥12) ¥0.7 bn (¥12) ¥0.7 bn Toward Further Enhancing Capital Efficiency Acquisition of treasury shares ⚫ We have acquired treasury shares with the aim of improving capital efficiency and enhancing return to shareholders. (Announced on February 12, 2025: Upper limit for share acquisition: 600,000 shares ( ¥1.4 billion), Ratio to total number of shares issued and outstanding (excluding treasury shares): 1.02%) ✓ Results of the acquisition as of FY2024: 300,000 shares (approx. ¥0.6 billion) ⚫ We consider and implement additional acquisition of treasury shares. Dividend policy ⚫ We have introduced a dividend payout ratio as a new metric to clarify our commitment to returning profit (aiming for 40%). ⚫ We expect the total amount of dividends to be ¥16.0 billion or more during the period of the Three-year Management Plan (FY2024ｰFY2026). (Revised from ¥10 billion at the time of the formulation of the Three-year Management Plan) (¥14) ¥0.9 bn (¥15) ¥0.9 bn (¥20) ¥1.2 bn (¥25) ¥1.5 bn (¥27) ¥1.7 bn (¥33) ¥2.0 bn (¥35) ¥2.1 bn (¥37) ¥2.3 bn (¥37) ¥2.3 bn (¥31) ¥1.9 bn (¥37) ¥2.3 bn (¥47) ¥2.8 bn (¥90) ¥5.4 bn (¥92) ¥5.5 bn Acquisition of treasury shares for ¥5.2 bn Acquisition of treasury shares for ¥0.6 bn Planned Forecast Implementing Management That Is Conscious of Cost of Capital and Stock Price5 Three years from FY2024 Total dividends ¥16.0 bn or more 11.7 11.9 15.7 13.6 13.8 14.3 16.3 18.2 18.8 21.9 20.2 23.8 36.5 31.7 28.6 40.2 40.3 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Total regular dividends Treasury share acquisition results Dividend payout ratio Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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32 10 FY2023 FY2024 FY2029 Strategically-held shares ⚫ Accelerate reduction of strategically-held shares and strengthen balance sheet streamlining 5 Implementing Management That Is Conscious of Cost of Capital and Stock Price stocks Toward Further Enhancing Profitability ■ Based on the solid revenue base we have established, we will make growth investments in areas of human resources, productivity improvement, and business. ■ We balance the proportions of business segments by capturing business opportunities in growth areas. ■ We aim to strengthen our corporate structure by increasing the scales of our businesses and diversifying risks. ⚫ Expect to achieve the medium-term management plan ahead of schedule, thanks to abundant construction work in hand due to strong orders and improved profitability ⚫ Increase productivity through support for construction sites by the back office and enhancement of relationships with partner companies and further improve profitability ⚫ Enter the metal recycling business as a new business area, and expand telecommunications business (infrastructure sharing business, optical fiber leasing business) ⚫ Conduct strategic M&As aimed at strengthening the construction systems and entering new businesses ✓ 70% reduction by FY2029 (compared to FY2023) (Initial plan) 50% reduction by FY2031 (compared to FY2023) ⚫ Cash generated from the sale is allocated to growth investments, shareholder returns, and other initiatives. stocks 42 Reduce strategically-held shares Toward Further Enhancing Capital Efficiency Strengthen the revenue base and expand business areas Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Approx.
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Please direct inquiries to: 03-3822-8825 03-3822-8960 TEL FAX URL https://www.densetsuko.co.jp/ Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Please note that the forecast figures presented in this document were prepared based on the information available to the Company at the time they were prepared, and actual results may differ from the forecasts in the document due to fluctuation of the levels of various risks and uncertainties and changes in economic conditions, among other factors, in future. Public Relations Department NIPPON DENSETSU KOGYO CO., LTD. 1-2-23 Ikenohata, Taito-ku, Tokyo 110-8706