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November 14, 2025 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved Briefing on the Financial Results for Q2 of FY2025 (the Six Months Ended September 30, 2025) Note:This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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1 Company Overview1 2 Financial Results Overview Q2 of FY2025 (Consolidated) Financial Results Forecast FY2025 (Consolidated)3 NIPPON DENSETSU Three-year Management Plan 2024 (Topics)4 Table of Contents 5 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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Company Overview1 Net sales composition by segment (¥) (Unit: million yen) Net sales composition by segment (%) 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 * 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 had been included in Buildings (Construction of electrical facilities for buildings) until FY2023 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 . Segment Q2 of FY2025 Net sales Including net sales to JR East Railways 44,370 35,242 Buildings 20,310 198 I&C Systems 9,323 4,552 Environmental Energy* 1,991 44 Associated Business* 2,423 126 Total 78,419 40,165 （51.2%） Associated Business 3.1% I&C Systems 11.9% Buildings 25.9% Railways 56.6% Environmental Energy 2.5% 3Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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4 Financial Results Overview Q2 of FY2025 (Consolidated) 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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2 Q2 of FY2024 Results (A) Q2 of FY2025 Results (B) Year-on-Year Change (B-A) Backlog at beginning of period 173,719 183,075 9,355 5.4% Orders 93,678 96,473 2,795 3.0% Net sales 75,625 78,419 2,793 3.7% Gross profit 7,629 (10.1%) 10,405 (13.3%) 2,775 36.4% SG&A 7,290 (9.6%) 7,683 (9.8%) 392 5.4% Operating profit 338 (0.4%) 2,721 (3.5%) 2,382 703.0% Non-operating income and expenses 699 (0.9%) 885 (1.1%) 186 26.7% Ordinary profit 1,038 (1.4%) 3,607 (4.6%) 2,569 247.5% Extraordinary income and losses -217 (-0.3%) 676 (0.9%) 894 —% Profit attributable to owners of parent 284 (0.4%) 2,831 (3.6%) 2,547 895.2% Backlog carried over to next half 192,772 202,241 9,468 4.9% Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 5 (Figures in parentheses are ratios to net sales. Unit: million yen) Financial Results Overview Q2 of FY2025 (Consolidated) Key Points in the Financial Results ⚫ Capital investment by railway companies showed an increasing trend. With continued private-sector demand, including from data centers, we maintained a high level of orders. ⚫ We posted increases in net sales and operating profit due to abundant construction work in hand. ⚫ Reflecting the expansion of the scope of application of the percentage of completion method, net sales and operating profit increased by ¥2.8 billion and ¥1.6 billion, respectively. ⚫ With backlog carried over to next half setting a new record high, we maintained a high level of construction work in hand.
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71,576 68,644 88,637 93,678 96,473 0 50,000 100,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY 2023 Q2 of FY2024 Q2 of FY2025 63,683 60,889 71,039 75,625 78,419 0 50,000 100,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 -1,539 -1,220 321 338 2,721 -2,000 -1,000 0 1,000 2,000 3,000 4,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (0.5%) (-2.4%) (-2.0%) 152,836 153,063 175,511 192,772 202,241 0 50,000 100,000 150,000 200,000 250,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 2 (0.4%) 6 (3.5%) Financial Results Overview Q2 of FY2025 (Consolidated) (Unit: million yen) Compared to Q2 of FY2024: +¥2.7 bnOrders Operating profit Compared to Q2 of FY2024: +¥2.3 bn Operating profit margin (%) Compared to Q2 of FY2024: +¥2.7 bn Compared to Q2 of FY2024: +¥9.4 bn Net sales Backlog carried over to next half Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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7 Financial Results Overview Q2 of FY2025 (Consolidated) Factors for Changes in Operating Profit (Year on year) (Unit: million yen) 338 2,721 +2,775 -392 Impact of expansion of the scope of application of the percentage of completion method ・ Employees’ salaries and bonuses ・ Advertising expenses ・ Taxes and public charges (pro forma standard taxation） ・ Depreciation, etc. SG&A Increase in profit on completed construction contracts +1,684 Q2 of FY2024 Operating profit Q2 of FY2025 Operating profitGross profit: ¥2,775 million increase SG&A: ¥392 million increase Impact of expansion of the scope of application of over-time revenue recognition method by estimating the progress of satisfying performance obligations from Q4 of FY2024 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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27,781 63,683 105,263 173,569 25,506 60,889 101,722 172,100 28,577 71,039 117,511 194,031 33,011 75,625 125,013 216,922 30,234 78,419 230,480 -1,712 -1,539 795 7,454 -1,798 -1,220 64 9,658 -1,274 321 3,163 13,448 -774 338 3,709 17,934 -858 2,721 17,660 -2,000 2,000 6,000 10,000 14,000 18,000 22,000 0 50,000 100,000 150,000 200,000 250,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Forecast 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved FY2021 FY2022 FY2023 FY2024 FY2025 (34.8%) (36.6%) (35.3%) (36.6%) 8 (34.0%) Trends in Quarterly Financial Results Financial Results Overview Q2 of FY2025 (Consolidated) Net sales Operating profit (Net sales) (Unit: million yen) Ratio of Q2 sales to Q4 sales (%) (Operating profit)
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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 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 9 Summary by Business Segment Construction of Electrified Railway Equipment Construction of Electrical Facilities for Buildings Financial Results Overview Q2 of FY2025 (Consolidated) ⚫ Orders from JR East and other JR companies remained strong. ⚫ Orders from other private railway companies also maintained an upward trend. ⚫ Both net sales and operating profit increased, with steady progress in construction work in hand, which was on an increasing trend. ⚫ Operating profit margin failed to recover to the pre- COVID level, excluding the impact of expansion of the scope of application of the percentage of completion method. ⚫ Backlog carried over to the next half continued to increase. ⚫ We continued to take orders strategically, taking into account the volume of construction work in hand and profitability. ⚫ We actively took orders in growth areas such as data centers. ⚫ Net sales declined after the completion of large- scale construction projects in Q2 of FY2024, as well as due to delays in the progress of some large-scale construction projects. ⚫ Operating profit increased due to the absence of unprofitable projects, which had occurred in Q2 of FY2024. ⚫ Backlog carried over to the next half continued to increase.
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⚫ Orders decreased due to a reactionary decline following receiving an order for a large-scale network project in Q2 of FY2024. ⚫ Both net sales and operating profit increased, with steady progress in construction work in hand along with contributions from large-scale construction. ⚫ Backlog carried over to the next half remained at the same level as in Q2 of FY2024. 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved ⚫ Orders and backlog carried over to the next half decreased due to a reactionary decline following receiving an order for construction related to a large-scale wind power plant project in Q2 of FY2024. ⚫ Although orders declined, the volume of construction work in hand remained at a high level. ⚫ Projects received in Q2 of FY2024 advanced from the planning stage, leading to increases in both net sales and operating profit. 10 Financial Results Overview Q2 of FY2025 (Consolidated) Summary by Business Segment Construction for Environmental EnergyConstruction of Information and Communication Systems
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37,765 34,282 45,764 44,134 52,630 0 20,000 40,000 60,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 38,886 37,659 41,024 39,768 44,370 0 20,000 40,000 60,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 -1,015 -820 -331 269 762 -1,200 -600 0 600 1,200 1,800 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (-0.8%) (-2.6%) (-2.2%) 76,739 75,740 79,310 87,126 93,974 0 30,000 60,000 90,000 120,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (0.7%) (1.7%) Orders Net sales Operating profit Backlog carried over to next half Compared to Q2 of FY2024: +¥8.4 bn Compared to Q2 of FY2024: +¥4.6 bn Compared to Q2 of FY2024: +¥0.4 bn Compared to Q2 of FY2024: +¥6.8 bnOperating profit margin (%) * We have revised segment classifications effective Q2 of FY2024. Results for Q2 of FY2023 and later are based on the segment classifications after the revision. (Unit: million yen) Financial Results for Construction of Electrified Railway Equipment Segment 11
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2 FY2022 FY2023 FY2024 FY2025 Orders 20.7 56.0 29.2 69.9 26.4 69.7 32.7 (forecast) 69.0 Net sales 19.6 54.4 21.1 58.7 20.9 66.3 24.5 (forecast) 70.3 数値未集計 FY2022 FY2023 FY2024 FY2025 Orders 4.4 8.0 4.6 8.4 5.8 11.4 6.1 (forecast) 10.1 Net sales 2.7 7.5 2.6 8.0 2.5 9.7 3.6 (forecast) 11.1 FY2022 FY2023 FY2024 FY2025 Orders 1.4 3.4 1.0 4.4 0.4 2.5 1.7 (forecast) 4.1 Net sales 3.4 9.6 4.8 9.3 2.0 5.6 1.4 (forecast) 3.7 FY2022 FY2023 FY2024 FY2025 Orders 26.6 67.5 34.9 82.8 32.6 83.7 40.6 (forecast) 83.3 Net sales 25.8 71.6 28.6 76.1 25.5 81.6 29.6 (forecast) 85.2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved 12 JR Other private railway companies Public railway companies JRTT Total Orders and Net Sales (Disaggregated) (Unit: billion yen) * Figures at the top: Q2 results; figures at the bottom: full-year results (forecasts for FY2025) Financial Results for Construction of Electrified Railway Equipment Segment * JRTT stands for Japan Railway Construction, Transport and Technology Agency.
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22,906 22,532 28,351 27,195 28,939 0 20,000 40,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 14,764 13,486 16,495 23,391 20,310 0 20,000 40,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 -420 -408 261 -173 1,107 ▲ 600 ▲ 300 0 300 600 900 1,200 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (1.6%) (-2.8%) (-3.0%) 50,649 56,108 70,009 73,622 77,163 0 20,000 40,000 60,000 80,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 2 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved (-0.7%) (5.5%) * We have revised segment classifications effective Q2 of FY2024. Results for Q2 of FY2023 and later are based on the segment classifications after the revision. * Results for Q2 of FY2021 and FY2022, and backlog for Q2 of FY2023 include those for the construction for environmental energy segment. Financial Results for Construction of Electrical Facilities for Buildings Segment Orders Net sales Operating profit Backlog carried over to next half Compared to Q2 of FY2024: +¥1.7 bn Compared to Q2 of FY2024: -¥3.0 bn Compared to Q2 of FY2024: +¥1.2 bn Compared to Q2 of FY2024: +¥3.5 bnOperating profit margin (%) (Unit: million yen) 13
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10,155 10,685 11,679 16,879 11,699 0 10,000 20,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 8,880 8,425 8,791 8,499 9,323 0 10,000 20,000 Q2 FY2021 Q2 FY2022 Q2 FY2023 Q2 FY2024 Q2 FY2025 -358 -295 -147 -219 147 -500 -300 -100 100 300 500 700 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (1.6%) (-1.7%) (-4.0%) (-3.5%) 24,930 20,375 19,914 25,046 24,772 0 20,000 40,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 2 (-2.6%) Financial Results for Construction of Information and Communication Systems Segment Orders Net sales Operating profit Backlog carried over to next half Compared to Q2 of FY2024: -¥5.1 bn Compared to Q2 of FY2024: +¥0.8 bn Compared to Q2 of FY2024: +¥0.3 bn Compared to Q2 of FY2024: -¥0.2 bnOperating profit margin (%) (Unit: million yen) * We have revised segment classifications effective Q2 of FY2024. Results for Q2 of FY2023 and later are based on the segment classifications after the revision. 14Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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2,190 1,735 1,991 0 2,000 4,000 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 3,893 4,873 3,788 0 2,000 4,000 6,000 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 914 3,462 1,240 0 2,000 4,000 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 30 -24 55 -100 0 100 200 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (2.8%) 2 (1.4%) (-1.4%) Financial Results for Construction for Environmental Energy Segment Orders Net sales Operating profit Backlog carried over to next half Compared to Q2 of FY2024: -¥2.2 bn Compared to Q2 of FY2024: +¥0.2 bn Compared to Q2 of FY2024: +¥0.0 bn (Unit: million yen) Compared to Q2 of FY2024: -¥1.0 bnOperating profit margin (%) * We have revised segment classifications effective Q2 of FY2024. Results for Q2 of FY2023 and later are based on the segment classifications after the revision. * Results for Q2 of FY2021 and FY2022 are not presented as they are included in the results of the construction of electrical facilities for buildings segment. 15Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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748 1,143 1,927 2,006 1,962 0 1,000 2,000 3,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 1,152 1,318 2,536 2,231 2,423 0 1,000 2,000 3,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 254 304 508 485 649 0 200 400 600 800 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 (20.0%) (22.1%) (23.1%) 516 840 2,382 2,103 2,541 0 1,000 2,000 3,000 Q2 of FY2021 Q2 of FY2022 Q2 of FY2023 Q2 of FY2024 Q2 of FY2025 2 (21.8%) (26.8%) * We have revised segment classifications effective Q2 of FY2024. Results for Q2 of FY2023 and later are based on the segment classifications after the revision. Financial Results for Associated Business Segment * 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. Figures for real estate leasing, management, etc. are not included in Orders as they do not involve order-based production. Orders Net sales Operating profit Backlog carried over to next half Compared to Q2 of FY2024: -¥0.0 bn Compared to Q2 of FY2024: +¥0.1 bn Compared to Q2 of FY2024: +¥0.1 bn Compared to Q2 of FY2024: +¥0.4 bnOperating profit margin (%) (Unit: million yen) 16Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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Name of the construction Major Railway-Related Construction Projects FY2028 FY2029 FY2030FY2027FY2026FY2025 2 Projects by JR Projects by other public and private railways 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) Seismic Reinforcement of Shinkansen’s Overhead Line Mast (Replacement of Steel Pipe Mast) Measures for Aging Railway Electrical Facilities (Maintenance and Renewal) Renewal Work of Substation Facilities New Line Extensions (Utsunomiya LRT: Extension to the West) New Line Extensions (Hokkaido Shinkansen: Extension to Sapporo) Construction to Improve Poor Mobile Phone Reception at TAKANAWA GATEWAY Station-front Redevelopment Projects (Tokyo Metropolitan Area, Hokkaido) New Suica Gate System (Networks and Monitoring and Maintenance) Start Business with New Customers and in New Industries 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 Tokyo Metropolitan Area, Sendai Area, and Niigata Area The system planned to be introduced gradually (JR East) Tohoku Shinkansen: between Ueno and Omiya, and Furukawa and Morioka Works to relocate obstructions, New Electrical Facilities for Substation Facilities at Oi Wharf 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 Ueno and Oyama, Fukushima and Ichinoseki, etc. 17Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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大阪メトロ FY2025 FY2026 FY2027 Major Orders Received (First Half of FY2025) Scheduled for completion in FY2032 Scheduled for completion in FY2030 Replacement of the Underground Transmission Lines between Tamagawa and Shinagawa Tsurumi Station (Train) Interlocking Device Replacement and Signal Facility Upgrade and Other Works Development of Haneda Airport Access Line and New Construction of Substation Facility at Oi Wharf, etc. Rebuilding of Seismic Support Fixtures on Tohoku Shinkansen between Ueno and Oyama Renewal Work of High-Voltage Distribution Line Equipment on Subway Namboku Line (between Nagamachi Station and Tomizawa Station) Transportation Bureau City of Sendai Private entity Private entity Private entity Scheduled for completion in FY2028 2 Electrical Facility Work associated with Large-scale Renewal of Senzoku Health and Welfare Center and Hozuki no Ie in Taito-ku Data Center Electrical Facility Work atré KAMEIDO Substation Facility Renewal Work Noborito Shopping Center Renewal and Renovation Works Installation Works of Solar Power Generation Facilities, etc., at Marugame Community Centers Electrical Facility Work associated with New Construction of Hiroshima KS Building B (Tentative Name) JR East JR East JR East JR East Governmental agency Electric, air conditioning, and sanitation Energy creation Name of the construction Private entity Renewal Work of Emergency Power Generator for Bldg. 18 at Setagaya Campus of Tokyo University of Agriculture Information and communication systems ITV Installation Work at Ikuta Campus of Meiji University (Phase I) 18Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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19 Financial Results Forecast FY2025 (Consolidated)3 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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3 FY2024 Result FY2025 Forecast Year on year Backlog at beginning of period 173,719 183,075 9,355 5.4% Orders 223,718 226,170 2,451 1.1% Net sales 216,922 230,480 13,557 6.2% Gross profit 34,309 (15.8%) 34,480 (15.0%) 170 0.5% SG&A 16,375 (7.5%) 16,820 (7.3%) 444 2.7% Operating profit 17,934 (8.3%) 17,660 (7.7%) -274 -1.5% Non-operating income and expenses 1,466 (0.7%) 1,240 (0.5%) -226 -15.4% Ordinary profit 19,400 (8.9%) 18,900 (8.2%) -500 -2.6% Extraordinary income and losses 815 (0.4%) 1,900 (0.8%) 1,084 132.9% Profit attributable to owners of parent 13,192 (6.1%) 13,380 (5.8%) 187 1.4% Backlog carried over to next period 183,075 182,069 -1,006 -0.5% Financial Results Forecast FY2025 (Consolidated) 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. (Figures in parentheses are ratios to net sales. Unit: million yen) * 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. 20Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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182,693 208,036 223,718 226,170 68,664 88,637 93,678 96,473 0 50,000 100,000 150,000 200,000 250,000 FY2022 FY2023 FY2024 FY2025 Forecast 9,658 13,448 17,934 17,660 -1,220 321 338 2,721 -2,000 4,000 10,000 16,000 22,000 FY2022 FY2023 FY2024 FY2025 Forecast (5.6%) (8.3%) 144,574 156,811 173,719 183,075 0 50,000 100,000 150,000 200,000 250,000 FY2022 FY2023 FY2024 FY2025 172,100 194,031 216,922 230,480 60,889 71,039 75,625 78,419 0 50,000 100,000 150,000 200,000 250,000 FY2022 FY2023 FY2024 FY2025 Forecast 3 (6.9%) (7.7%) (Unit: million yen) Financial Results Forecast FY2025 (Consolidated) OrdersBacklog Net sales Operating profit Compared to FY2024: +¥9.3 bn Compared to FY2024: +¥2.4 bn Compared to FY2024: +¥13.5 bn Compared to FY2024: -¥0.2 bn Operating profit margin (%) * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. 21Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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97,936 115,832 120,114 119,730 34,282 45,764 44,134 52,630 0 50,000 100,000 150,000 FY2022 FY2023 FY2024 FY2025 Forecast 5,076 6,871 8,986 9,190 -820 -331 269 762 -2,000 2,000 6,000 10,000 14,000 FY2022 FY2023 FY2024 FY2025 Forecast (6.4%) (7.7%) (5.0%) 79,117 75,638 82,760 85,714 0 50,000 100,000 150,000 FY2022 FY2023 FY2024 FY2025 101,415 107,643 117,160 121,660 37,659 41,024 39,768 44,370 0 50,000 100,000 150,000 FY2022 FY2023 FY2024 FY2025 Forecast 3 (7.6%) Financial Results Forecast for Construction of Electrified Railway Equipment Segment (Unit: million yen) * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. Operating profit margin (%) Backlog Orders Net sales Operating profit Compared to FY2024: +¥2.9 bn Compared to FY2024: -¥0.3 bn Compared to FY2024: +¥4.4bn Compared to FY2024: +¥0.2 bn • Efforts toward expansion of orders are steadily underway and increasingly reflected in sales and profits. • With profit margin on an improving trend, we will work to firmly secure orders, thereby ensuring net sales and profits. 22Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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57,797 59,247 58,808 68,730 22,532 28,351 27,195 28,939 0 40,000 80,000 FY2022 FY2023 FY2024 FY2025 Forecast 2,198 3,188 4,267 4,580 -408 261 -173 1,107 -1,000 1,000 3,000 5,000 FY2022 FY2023 FY2024 FY2025 Forecast (6.7%) (7.1%) (5.3%) 47,061 63,467 69,818 68,534 0 40,000 80,000 FY2022 FY2023 FY2024 FY2025 41,391 47,584 60,092 64,410 13,486 16,495 23,391 20,310 0 40,000 80,000 FY2022 FY2023 FY2024 FY2025 Forecast 3 (7.1%) Financial Results Forecast for Construction of Electrical Facilities for Buildings Segment (Unit: million yen) • 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. * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. * Results for FY2022 and backlog for FY2023 include those for the construction for environmental energy segment . OrdersBacklog Net sales Operating profit Compared to FY2024: -¥1.2 bn Compared to FY2024: +¥9.9 bn Compared to FY2024: +¥4.3 bn Compared to FY2024: +¥0.3 bn Operating profit margin (%) 23Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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25,180 26,697 33,885 30,710 10,685 11,679 16,879 11,699 0 20,000 40,000 FY2022 FY2023 FY2024 FY2025 Forecast 1,346 1,765 2,325 2,490 -295 -147 -219 147 -1,000 1,000 3,000 FY2022 FY2023 FY2024 FY2025 Forecast (6.5%) (8.3 %) (5.2%) 18,115 17,263 16,666 22,396 0 20,000 40,000 FY2022 FY2023 FY2024 FY2025 26,032 27,057 28,156 33,300 8,425 8,791 8,499 9,323 0 20,000 40,000 FY2022 FY2023 FY2024 FY2025 Forecast 3 (7.5%) Financial Results Forecast for Construction of Information and Communication Systems Segment (Unit: million yen) * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. Operating profit margin (%) OrdersBacklog Net sales Operating profit Compared to FY2024: +¥5.7 bn Compared to FY2024: -¥3.1 bn Compared to FY2024: +¥5.1 bn Compared to FY2024: +¥0.1 bn • Orders would concentrate in the second half with the expectation of receiving large-scale network construction projects. • We expect increases in net sales and operating profit following progress in large-scale construction work in hand and an increase in railway communication construction. 24Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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2,983 6,771 3,160 914 3,462 1,240 0 2,000 4,000 6,000 8,000 FY2023 FY2024 FY2025 Forecast 3,146 4,539 0 2,000 4,000 6,000 FY2024 FY2025 5,006 5,378 4,640 2,190 1,735 1,991 0 2,000 4,000 6,000 FY2023 FY2024 FY2025 Forecast 3 219 684 250 30 -24 55 -100 200 500 800 FY2023 FY2024 FY2025 Forecast (4.4%) (12.7%) (5.4%) Financial Results Forecast for Construction for Environmental Energy Segment (Unit: million yen) * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. * Results for FY2022 and backlog for FY2023 are not presented as they are included in those for the construction of electrical facilities for buildings segment. OrdersBacklog Net sales Operating profit Compared to FY2024: -¥3.6 bn Compared to FY2024: -¥0.7 bn Compared to FY2024: -¥0.4 bn Compared to FY2024: +¥1.3 bn Operating profit margin (%) • Orders would decrease as we will focus on large-scale carried-over construction projects. • Although net sales and operating profit are expected to decline after the completion of highly profitable large-scale construction projects, they are steadily progressing against the full-year forecast. 25Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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1,779 3,274 4,137 3,840 1,143 1,927 2,006 1,962 0 2,000 4,000 6,000 8,000 FY2022 FY2023 FY2024 FY2025 Forecast 1,036 1,402 1,670 1,150 304 508 485 649 0 500 1,000 1,500 2,000 FY2022 FY2023 FY2024 FY2025 Forecast (20.8%) (27.2%) (31.8%) 280 443 1,327 1,890 0 500 1,000 1,500 2,000 FY2022 FY2023 FY2024 FY2025 3,261 6,740 6,134 6,470 1,318 2,536 2,231 2,423 0 2,000 4,000 6,000 8,000 FY2022 FY2023 FY2024 FY2025 Forecast 3 (17.8%) Financial Results Forecast for Associated Business Segment * 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. Figures for real estate leasing, management, etc. are not included in Orders as they do not involve order-based production. (Unit: million yen) • 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. * The figures in the bottom part of the graph represent results for Q2 of the respective fiscal years. OrdersBacklog Net sales Operating profit Compared to FY2024: +¥0.5 bn Compared to FY2024: -¥0.2 bn Compared to FY2024: +¥0.3 bn Compared to FY2024: -¥0.5 bn Operating profit margin (%) 26Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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4 NIPPON DENSETSU Three-year Management Plan 2024 (Topics) 27Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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28 NIPPON DENSETSU Three-year Management Plan 2024 (Topics) Infrastructure sharing business 4 Local communities related business <Established a company specialized in the telecommunications business was established> Company name: JCroc Co., Ltd. Overview of business: Telecommunications Offering infrastructure sharing and other related services ・September 2023: The Company was registered as a telecommunications carrier. ・October 2024: Telecommunications Business Promotion Office was established in Information & Communications Headquarters to consider the business expansion. ・October 2025: JCroc Co., Ltd., a subsidiary, was established. <Providing new NDK Nagano Building as a temporary evacuation site for local residents in case of disaster> ⚫ Upon completion of the new NDK Nagano Building, an agreement was signed with Nakagosho ward, Nagano City, on October 1, 2025, to use the building as a temporary evacuation site in case of disaster. ⚫ The new office building is designed as a Zero-Energy Building (ZEB) with excellent environmental performance, combining energy-saving features and disaster prevention functions. <Entering metal recycling business closely aligned with our core operations> ⚫ A preparatory committee has been established to launch a new business that collects and recycles removed materials and other items from construction sites. ⚫ We are selecting a site and formulating a business plan, aiming to establish a corporation within FY2025. <Tour to provide exciting experience at Chuo Gakuen> ⚫ A tour was held at our training facility, Chuo Gakuen, to provide local residents with an opportunity to become familiar with railways and electricity. ⚫ We plan to hold another tour on November 30, 2025. New businesses Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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29 NIPPON DENSETSU Three-year Management Plan 2024 (Topics)4 <Improving construction capabilities by strengthening the systems of partner companies＞ <Number of new graduate hires (to join the Company in April 2026)> This fiscal year Plan: 120 Offers: 121 (as of October 31, 2025) Previous fiscal year Plan: 110 Results: 93 (joined the Company in 2025) <Number of mid-career hires (plan for FY2025)> This fiscal year Plan: 26 Results: 11 (as of October 31, 2025) Previous fiscal year Plan: 20 Results: 13 (for FY2024) ⚫ Enhance the hiring of liberal arts students for technical positions and mid- career recruitment of inexperienced individuals ⚫ Conduct recruitment for high school graduates (offers made to 6) ⚫ Strengthen relationships with schools through the use of recruiters and build an applicant pool ⚫ Enhance targeted recruitment advertising to reach students at priority universities and in focus regions ⚫ Recruit foreign nationals under the Specified Skilled Worker program (two hired at a group company) ⚫ Support recruitment activities, including creating websites ⚫ Strengthen safety training at the practical training facilities of Chuo Gakuen ⚫ As a new support measure to meet the needs of partner companies, “Be Together”—a website introducing partner companies was newly established on NDK’s website in July 2025. Brand video Secure human resources Strengthen construction systems Business succession Solve successor issues Pass on skills Support in training Improve safety and quality Support in recruitment Increase the number of workers Strengthen construction systems Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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30 NIPPON DENSETSU Three-year Management Plan 2024 (Topics)4 Increase productivity <Strengthening the back office> ⚫ Centralize the preparation of documents, drawings, and related tasks during peak business periods including construction site setup, completion, and various inspections ⚫ Ensure consistent business quality through cloud-based collaboration and sharing, regardless of site remoteness or the experience level of a construction site manager ⚫ Start preparing a roadmap and rolling it out nationwide <Promoting DX> ⚫ Establish the DX Promotion Department to initiate support for internal operation reforms ⚫ A team formed through internal job postings is scheduled to provide on-site support at each office ⚫ Consider methods for utilizing the internal database by piloting two generative AI platforms: Microsoft Copilot and Lightblue <Research on the utilization of versatile robots> ⚫ Envision utilizing quadruped robots for light transport and other tasks within railway tracks, expanding from previously studied small models to include medium-sized models ⚫ Advance research on robotic arms aimed at applying them to overhead electrification work on railway tracks <Enhancing technical capabilities and passing them on to successors> ⚫ Expand presentations at NDK Technology Development and Construction Technology Results Conference to include more examples of problem-solving through innovations in construction techniques, in addition to technology development Cloud-based collaboration and sharing Construction sites Back office ● Supervise the sites ● Prepare documents and drawings ● Examine issues Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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5 31 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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8.0 10.0 12.0 14.0 16.0 18.0 20.0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Price earnings ratio (PER) PER 0.00 2.00 4.00 6.00 8.00 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Return on equity (ROE) ROE 32 5 80 100 120 140 0.40 0.60 0.80 1.00 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Price book-value ratio (PBR) PBR Market capitalization at end of period ＝ × ✓ Although the PBR has remained below 1, it has been on a recovery trend since FY2022. ✓ Our stock price is on an upward trend, supported not only by recent improvements in financial performance, dividend increases, and acquisitions of treasury shares, but also by the overall strength of the stock market. ✓ As the PER has remained below 16, the average for companies listed on the Tokyo Stock Exchange Prime Market, we recognize that our shares continue to be undervalued. (Times) (billion yen) (%)(Times) Implementing Management That Is Conscious of Cost of Capital and Stock Price Toward further enhancing capital efficiency Analysis of price book-value ratio (PBR) (Reference) Market capitalization: 171.2 billion yen PBR: 0.85 As of September 30, 2025 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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33 5 ⚫ There is an issue with the balance between total assets and business scale. ⚫ The cash conversion cycle (CCC) tends to lengthen due to shorter payment terms and other factors. Efforts ✓ Steadily reduce strategically-held shares and allocate the cash generated to growth investments and shareholder returns. A 70% reduction compared to FY2023, aiming for 5% of total assets ✓ Continue to optimize the timing of redevelopment and monetization of business properties, while periodically assessing the performance of income-generating properties ✓ To shorten the CCC, appropriately make progress payment claims during construction, considering the progress of high- volume of construction work in hand ✓ Plan to determine within FY2025 whether or not to conduct the acquisition of treasury shares Analysis ✓ Recognize that profitability is the most important indicator for improving ROE ✓ Actively engage in growth areas while ensuring selective order taking ✓ Continue growth investments and strengthen the revenue base of existing businesses ✓ Create new businesses and expand the scale of our business while considering M&As ✓ Aim to build a risk-resilient corporate structure by balancing the business portfolio across segments ⚫ We have continued our efforts to enhance profitability under a favorable management environment. ⚫ While profitability temporarily declined due to the COVID-19 pandemic, it is on a recovery trend. Efforts Analysis ⚫ As a company supporting infrastructure, we have strengthened internal reserves, ensuring a high level of stability. ⚫ We are advancing shareholder return strategies, and as a result, the pace of increase in shareholders’ equity has been curbed. Efforts ✓ Pursue optimization of the capital structure while preserving the soundness of shareholders’ equity ✓ Flexibly conduct growth investments and shareholder returns by utilizing accumulated shareholders’ equity ✓ Appropriately utilize financial leverage to meet capital needs, thereby enhancing capital efficiency Analysis 6.08 2.0 4.0 6.0 8.0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Profitability (profit margin)(%) 0.73 0.6 0.7 0.8 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Efficiency (Asset turnover ratio)(Times) 1.51 1.4 1.5 1.6 1.7 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Stability (Financial leverage)(Times) × × Implementing Management That Is Conscious of Cost of Capital and Stock Price Toward further enhancing capital efficiency Analysis of return on equity (ROE) Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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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 34 Expand net sales and secure operating profit To grow sustainably Operating profitNet 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 Three-year management plan 2021 4 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved
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Please direct inquiries to: 03-3822-8825 03-3822-8960 TEL FAX URL https://www.densetsuko.co.jp/ 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 Copyright(C)2025 NIPPON DENSETSU KOGYO CO.,LTD. All Rights Reserved