Slides
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Q3 FY2025 (63rd Term) Financial Results 12 November 2025 Tokyo Stock Exchange / Code number：9621
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2 CONTENTS ・ Q3 FY2025 (63rd Term) Financial Results ・ Appendix
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3 CONTENTS ・ Q3 FY2025 (63rd Term) Financial Results ・ Appendix
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 4 Highlights from Q3 FY2025 (63 rd Term) Financial Results Q3 FY2025(63rd Term) ◼ Orders received are strong, increased by 15.2% YoY ◼ Sales are on track, at the same level as the same period of last year ◼ Operating income decreased by 12.5% YoY Affected by increased SG&A expenses and deteriorated cost of sales in some subsidiaries ◼ Net Income Attributable to Owners of the Parent decreased by 18.1% YoY Affected by extraordinary losses and decrease in Operating Income announced in Q2 Full-year forecast ◼ Full-year forecast remain unchanged as profitability is expected to improve Improved utilisation rate due to increased Orders Received Controlling SG&A expenses through strict expense management Shareholder returns ◼ Acquisition 1.5 billion（upper limit） yen of Own Shares To enhance capital efficiency based on progress in growth investments, performance and financial condition (Acquisition period: From 13 November 2025 to 30 April 2026)
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 5 Q3 FY2025 (63rd Term)-Financial Highlight（Consolidated） Orders Received JPY 88,964 million FY2024 (62nd) JPY 77,228 million %YoY +15.2％ Net Income Attributable to Owners of the Parent JPY 4,311million FY2024 (62nd) JPY 5,266 million %YoY -18.1 ％ Sales JPY 73,270 million FY2024 (62nd) JPY 72,197 million %YoY +1.5％ Operating Income JPY 6,489 million FY2024 (62nd) JPY 7,419 million %YoY -12.5％ Orders Received increased by 15.2% YoY Trend unchanged from Q2, continued strong performance Orders Received Sales are at the same level as the same period of last year Slightly higher than the previous year due to steady progress in Orders ReceivedSales Operating income decreased by 12.5% YoY Affected by increased SG&A expenses and deteriorated cost of sales in some subsidiaries Operating Income
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 6 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% FY2025(63rd) 3Q Q3 FY2025 (63rd Term) -Financial Highlight （ Actual vs. Forecast ） 100％ Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% 0％ 10.0% 50％ Orders Received and Sales are progressing on track against the FY2025(63rd Term) plan Operating Income and Net Income are slightly behind the FY2025(63rd Term) plan Orders Received Operating Income OI Margin Net Income Attributable to Owners of the Parent Sales Actual vs. Forecast JPY 100,000 million FY2025(63rd) Plan JPY 100,000million JPY 10,000 million JPY 6,300 million JPY 88,964 million JPY 73,270 million JPY 6,489 million JPY 4,311 million Progress Ratio 89.0% Progress Ratio 73.3% Progress Ratio 64.9% Progress Ratio 68.4% 8.9%
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 7 Q3 FY2025 (63rd Term) - Profit and Loss Statement (Consolidated) Q3 FY2024 (62nd Term) Q3 FY2025 (63rd Term) FY2025 (63rd Term) (FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan(%) Orders Received 77,228 88,964 +11,735 +15.2% 100,000 89.0% Sales 72,197 73,270 +1,072 +1.5% 100,000 73.3% Operating Income 7,419 6,489 -929 -12.5% 10,000 64.9% OI Margin 10.3% 8.9% - -1.4pt 10.0% - Ordinary Profit 7,421 6,602 -819 -11.0% 10,000 66.0% Net Income Attributable to Owners of the Parent 5,266 4,311 -955 -18.1% 6,300 68.4% （JPY million）
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 8 Orders Received and Sales exceeded the strong results of the same period of last year, while Operating Income was slightly behind the previous year ・Orders Received have progressed strongly following Q2 due to proactive efforts to transform our Business Portfolio ・Sales are slightly higher than the same period of previous year due to steady progress in Orders Received ・Operating Income has declined year on year due to increased SG&A expenses and deteriorated cost of sales in some subsidiaries Q3 FY2025 (63rd Term) Results Outline by Segment: Domestic Business Q3 FY2025 (63rd Term) Q3 FY2025 (63rd Term) FY2025 (63rd Term) (FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan (%) Orders Received 55,426 61,268 +5,841 +10.5% 67,000 91.4% Sales 49,361 50,333 +972 +2.0% 69,000 72.9% Operating Income 6,934 6,322 -611 -8.8% 9,300 68.0% OI Margin 14.0％ 12.6％ - -1.4pt 13.5% - （JPY million）
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 9 Orders Received increased YoY, while Sales are at the same level as the previous year ・The performance of Warterman Group Plc is in line with theFY2025(63rd Term) plan ・Orders Received are steady due to large-scale Orders Received by CTI Engineering International (CTII), but Operating Income was affected by worsening cost of sales ratio caused by contract delays Q3 FY2025 (63rd Term) Results Outline by Segment: Overseas Business Q3 FY2024 (62nd Term) Q3 FY2025 (63rd Term) FY2025 (63rd Term) (FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan (%) Orders Received 21,802 27,695 +5,893 +27.0% +31.6% 33,000 83.9% Sales 22,836 22,936 +100 +0.4% +0.0% 31,000 74.0% Operating Income 478 170 -308 -64.5% -64.8% 700 24.3% OI Margin 2.1％ 0.7％ - -1.4pt 2.3% - （JPY million） ※Orders Received amount includes amount changes from currency fluctuations associated with the end-of –FY order backlog at our overseas subsidiaries. The figures in blue represent at change percentage excluding the foreign currency adjustment of our overseas subsidiaries.
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 10 FY2025 (63 rd Term) Plan (Consolidated/Non - Consolidated) ・Full-year forecast remains unchanged due to expected improvement in profitability ・Net Income per share is expected to improve towards the end of the fiscal year due to the Acquisition of Own Shares （JPY million） FY2024 (62nd Term) (Results) FY2025 (63rd Term) (FY Plan) Change %YoY Mid-Term Management Plan 2027 Consolidated Orders Received 97,678 100,000 ＋2.4% 110,000 Operating Income 9,396 10,000 +6.4% 12,000 OI Margin 9.6% 10.0% +0.4% 11% Net Income Attributable to Owners of the Parent 6,746 6,300 -6.6% Net Income per share JPY 243.10 JPY 226.77 -6.7% CAGR2024-2027 10% or more Non-Consolidated Orders Received 59,405 60,000 +1.0% Operating Income 8,499 8,700 +2.4% OI Margin 14.3% 14.5% +0.2% Net Income 6,532 6,000 -8.1% Dividends JPY 75 JPY 75 -
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 11 ( Reference Data ) Full - year forecast 60% 70% 80% 90% 100% 110% 120% 130% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1 Q2 Q3 Q4 62nd Sales 63rd Sales SG&A expenses YoY Sales(billion yen) SG&A expenses YoY ◼ Quarterly Sales are increasing compared to the previous period due to strong Orders Received and the resulting increase in backlog orders ◼ SG&A expenses YoY are gradually declining toward the end of the period Trend of Sales and SG&A expenses YoY FY2024 Sales FY2025 Sales
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 12 (Past Practice) FY Acquisition period Total number of shares to be acquired (upper limit) Total amount of share acquisition costs (upper limit) Method of acquisition From FY2025 to FY2026 From 13 November 2025 to 30 April 2026 700,000 shares 1.5 billion yen market purchase ・Details of related to acquisition Acquisition of Own Shares We have decided to acquire of own shares in accordance with the shareholder returns policy* in the Mid-Term Management Plan 2027 * Aim for a total return ratio of 35-50%, and flexibly implement additional returns while taking into account the progress of growth investment, business performance, and financial conditions FY Acquisition period Total number of shares acquired Total amount of share acquisition costs Method of acquisition FY2023 From 1 March 2023 to 24 March 2023 597,200* shares 999,905,791 yen market purchase *note: We conducted a 2-for-1 stock split of its common shares, effective January 1, 2025. Total number of shares acquired in FY2023 is calculated on the premise that the stock split was conducted at the beginning of FY2023.
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13 CONTENTS ・ Q3 FY2025 (63rd Term) Financial Results ・ Appendix
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 14 Corporate Profile Ever since founded in 1945, CTI Engineering has focused on great importance to people and technology We are “Japan’s first consulting engineer company " developed with high technological capabilities Business Philosophy We strive to create a safe, comfortable and enriching society using world-class technology and expertise. 1. Sustainability Contribute to the creation of a sustainable society 2. People First Promote corporate activities with a culture of putting people first 3. Social Commitment Commit to solving social issues Code of Corporate Conduct 4. Trust Build relationships of trust with our stakeholders 5. Integrity and Fairness Act with integrity, fairness, and responsibility 6. Risk Management Ensure risk management at the highest standards Company Name CTI Engineering Co.,Ltd. Creation August 1945 (Foundation) Establishment April 1963 Head Office 3-21-1 Nihombashi Hamacho, Chuo-ku,Tokyo Capital stock 3.025 billion yen Accounting period December 31 Net Sales 97.678 billion yen (FY 2024) Number of employees Consolidated: 3,966 / Non-consolidated: 2,151 (FY 2024) Listing market Tokyo Stock Exchange Prime Market Total number of issued shares 28,318,172 shares
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 15 Infrastructure developments are carried out mainly by three parties: (1) National and Local Governments, (2) Consulting Engineers, and (3) Construction Companies. For “National and Local Governments" that decide projects and make plans, We "Consulting Engineers" provide specific surveys, plans, designs, etc. as a partner. Carried out by three parties Environmental Impact Technical Specialists about Infrastructure For example, let us imagine, “We’ll build a bridge” , we should consider about the type of bridge, the design, its length and width, budget, the geology, environment on the other side of the river, the response to a disaster, and the any other aspect about bridge. Consulting Engineers are professionals in social infrastructure development who coordinate infrastructure projects from start to finish, ensuring that people can live safety and securely. Design Budget Role of the Consulting Engineers
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 16 Define a project Plan Survey Design Construction Work Construction management Maintenance management The role of consulting engineers is to provide consulting services such as surveys, planning, and design, etc. as a partner to national and local governments that make project decisions and planning. We undertake almost all the workflow, but in accordance with the “Principle of Separation of Design and Construction”, the construction company is responsible for the construction part. During rapid economic growth period in Japan after WW2, the Ministry of Construction (now the Ministry of Land, Infrastructure, Transport and Tourism) clarified the principle of separation of design and construction. Consulting Engineers General contractors and manufacturers Workflow of infrastructure development Principle of Separation of Design and ConstructionConsulting engineers are involved from the initial planning stage by national and local governments and act as advisors throughout all stages, including planning, design, construction management, and maintenance after completion. Infrastructure Development Design Construction Consulting Engineers General contractors and manufacturers Clearly separated Business Process of Consulting Engineers Consulting Engineers
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 17 Previous Fiscal Year Current Fiscal Year April March Budget Approved Execute Budget Competition・Nomination Price or technical competition Execute Projects Check to prevent errors - Corporate performance - Qualifications, results, evaluation points and awards of engineers - Technical proposals Orders from Technological Competition - Investigation - Analysis - Design - Reporting etc. Consulting services - Completion inspection - Evaluation by clients - Award for engineers → Accumulated in engineer’s ID Evaluation by Clients Technological Assets Final Products Payment Consulting Engineers Clients ➢ Project size : Mostly tens of millions of yen. In recent years, the number of large-scale projects is increasing by several hundred million. ➢ Number of projects : Thousands per year ➢ Project period : Basically 1 year, but multi-year large-scale projects are increasing in recent years. The ends of projects period tends to concentrate at the end of the fiscal year (March) ➢ Project teams : Consists of 5-6 engineers. Professional Engineer certification is required for the project leader. Project team Basic Workflow of Consultant Engineers Technological Assets
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 18 Source: Ministry of Land, Infrastructure, Transport and Tourism Information Portal Site on Aging Social Infrastructure Infrastructure Maintenance Information "Current State and Future of Social Infrastructure > Current State and Future of Aging Social Infrastructure Demand for advanced technology from Consulting Engineers is increasing 0% 50% 100% Mar-23 Mar-30 Mar-40 ＜ Percentage of social infra structure over 50 years old ＞ ・Demand for more efficient and sophisticated infrastructure development itself is increasing ・Possibility of outsourcing to private sector is increasing Importance of Consulting Engineers Infrastructure Development Yashio City road sinkhole accident Define a project Plan Survey Design Construction management Maintenance management Efficient and Effective infrastructure development is required, within limited budget and personnel Importance of inspection, evaluation, and prioritisation of aging infrastructure is increasing Infrastructure Maintenance and Management By 2040, half of structures will be over 50 years old, except for water and sewage systemsFlat/ Slight increase trend in MLIT* budget * Ministry of Land, Infrastructure, Transport and Tourism Declining trend in Local government budget Declining trend in technical public sector personnel
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 19 0 10,000 20,000 30,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 2024 2025 売上高 営業利益 (Reference Data) Quarterly Sales Amounts and Operating Income (Consolidated) （JPY million） Since CTI Engineering Group has a lot of public projects, work progress tends to concentrate at the end of fiscal year, resulting in a tendency for sales and income to be clustered towards 1Q. (after the adoption of Accounting Standard of Revenue Recognition in 2022) The Adoption of Accounting Standard for Revenue Recognition Sales Operating Income
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 20 The history of the Construction Technology Institute (the predecessor of CTI Engineering Co., Ltd.) begins in December 1944, as Japan headed toward its defeat in World War II. The board of directors of the Japan Civil Engineering and Construction Control Association approved a proposal to establish an incorporated foundation on August 1, 1945, for the purpose of developing construction equipment that could compete with those of the United States in airfield construction. From 1950 onward, with the Korean War in full swing, the number of contracts for engineering consulting services multiplied year after year. The Institute quickly and accurately grasped Japan’s agenda for post-war reconstruction and focused on one area: hydropower generation and related dam construction. This has led to our strength in the water sector that continues to this day. In 1964, Japan’s River Act was revised, requiring a basic plan for the implementation of construction work to be formulated for each river system. To keep up with the new requirements, we introduced electronic calculators - which were expensive at the time—before any of our competitors. This was a decisive factor in our development in the field of river planning. We had grown steadily, registered its shares with the Japan Securities Dealers Association as over-the-counter stock in June 1994. Then we listed its shares on the Second Section of the Tokyo Stock Exchange in October 1996, and listed on the First Section of the Tokyo Stock Exchange in June 1999. Office at the time of establishment The History of CTI Engineering Co., Ltd. Transformation in the face of changing times Our Founding: amidst Japan’s defeat in WWII Period of Growth: entered the field of water engineering ◆ August 1, 1945: The Construction Technique Institute is founded ◆ April 4, 1963: Construction Technology Institute Co., Ltd. is incorporated
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 21 「誠実」と「技術」を社是として、戦後復興、高度経済成長、 環境問題など、さまざまな時代の社会的課題に技術で応え、 社会資本整備の一翼を担ってきました。 当社は、最大の経営資源である「人」とともに、成長してきました。 1963 1973 1983 1993 2003 2013 2023 Achieved sustainable growth through human resource enhancement and M&A Yodo River, Yodo River system (Osaka City, Osaka Prefecture) (1971-1980） Onagawa Central District, Onagawa Earthquake Reconstruction Project （2013-2016） The Comprehensive Flood Control Project in Metro Manila（Philippines） (1977） Our first independent overseas business Number of employees (Consolidated) Number of employees (Non-Consolidated) Sales amount(Consolidated) Number of employees: 3,966 Sales : JPY 97.6billion 2017 Waterman joined CTI group The History of CTI Engineering Co., Ltd. Postwar reconstruction Pollution problem Global environmental problemsFrom quantity to quality National Resilience Reconstruction after the earthquake High economic growth Number of employees: 104 Net sales JPY 0.12 billion 1963(Establishment) 1980 2000 2024
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 22 36.7 41.0 44.3 48.5 51.3 57.4 59.4 60.0 1,165 1,215 1,304 1,387 1,461 1,557 1,658 1,940 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 200 400 600 800 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1,750 Transition of Sales/Operating Income/Number of engineers（Non-consolidated） Sales(Non-Consolidated) （JPY billion） Number of Engineers By increasing human resources, we achieved sustainable expand of Sales. ※As of 1 July 2025
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 23 Chi-ken Sogo Consultants Co., Ltd. Consolidated Group Company (Domestic) Japan Urban Engineering Co., Ltd. Provides professional services related to urban development, urban planning and town planning, land readjustment and urban redevelopment projects, civil engineering design and development permits, compensation surveys, field surveying, disaster reconstruction, estate consulting, etc. HIROKEN CONSULTANTS Co., LTD. NISSOKEN ARCHITECTS & ENGINEERS Co., Ltd. Environmental Research & Solutions Co., Ltd. Provides professional services related to geological surveying and analysis, groundwater and soil contamination surveys, planning and design of roads, rivers, and underground facilities, planning and design of sabo and disaster prevention works, investigation and design of slope disaster prevention works and landslide countermeasures. Provides professional services related to the design and supervision of building and building facility projects, research, planning, project and construction management for all aspects of construction work, investigation and appraisal of buildings, longevity and long- term repair plans of buildings, etc. Environmental consulting (soil contamination control, water treatment, environmental assessment), environmental research and analysis (water quality, waste, exhaust gases, dioxins, PCBs, asbestos, PFAS), working environment measurement, drinking water testing, genetic analysis (environmental DNA). Infrastructure projects (civil engineering design, development design, agricultural engineering, built environment, various inspections, surveys, compensation studies, geological surveys, etc.) and waste-related projects, shops and development projects, soil surveys, ICT projects (3D surveying and 3D design, etc.) Trans- portation Urban Trans- portation Urban Environ- mental Social Environ- mental Social Water Land Trans- portation Urban Environ- mental Social
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 24 Company Name Sales of Consulting Engineers Division Net Income 1 Nippon Koei(ID&E) (Unlisted) *1 64,208 6,329 2 Pacific Consultants (PCKK) (Unlisted) 57,718 3,867 3 CTI Engineering (CTIE) 56,249 6,532 4 Oriental Consultants (OC) 33,447 1,089 5 Oriental Consultants Global(OC Global) 29,995 783 6 Dia Nippon Engineering Consultants *2 28,173 1,656 7 Yachiyo Engineering (Yachiyo) (Unlisted) 25,559 639 8 Eight-Japan Engineering Consultants (Eight JP) 23,402 1,596 9 Pasco 23,037 4,354 10 IDEA Consultants 22,448 2,316 Ranked 3rd in Sales, 1st in Net Income in FY 2024 (JPY Million) Our Position in the Construction Consulting Industry (Non-consolidated) Source: Top 10 companies extracted from "Nikkei Construction" April 2025 Construction Consultant Financial Ranking 2025 (The company’s "Sales of Consulting Engineers Division“ is the amount obtained by subtracting the sales of survey and geological survey services from the total sales.) * 1: In July 2023, the company was reorganised to place Nippon Koei and Nippon Koei Urban Space under the holding company (ID&E). In February 2025, a tender offer (TOB) by Tokio Marine Holdings was successfully completed. ID&E HD became a consolidated subsidiary of Tokio Marine Holdings and was delisted in May 2025. * 2: Established in July 2023 through the merger of Dai Nippon Consultant and Dia Consultant.
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 25 As we receive 90% of orders from the public sector, including national and local government, we have a stable profit structure. Japan’s First Consulting Engineer Leveraging our experiences in river infrastructure development, we have been contributing to the comprehensive management of entire river basins - including the drafting of disaster prevention and mitigation measures for floods, droughts, and other disasters, as well as the conservation and improvement of the water environment and water cycle. We are a group of consulting engineers with more than 1,600 licensed Professional Engineers (P.E.Jp). We believe that human resources are our greatest management capital, and we actively invest in human resource development such as the Professional Engineer Qualification Support Program and graduate schools for working adults. Since the founding of the Construction Technology Institute (our predecessor) in 1945, we have been a leading company in the industry for many years. We are a comprehensive consulting engineers that competes for the top position in sales in domestic market on the strength of our accumulated technologies developed over 80 years since our founding. Our Strength Stable Customer Base Centred on the Public Sector Industry Leader Order Received in the River Sector Professional Engineers with Advanced Technical Skills
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 26 Orders Received from National government １ Strength in technical competition ２ Half of all orders received are from the national government. While national projects are stable and highly profitable, it requires advanced technology. As we receive a lot of orders from the government, we ensure profitability and build up a track record of engineers through the implementation of projects, which will lead to orders in the next year. This cycle has resulted in our technological superiority. In the future, we will maintain MLIT sales while expanding sales to prefectures, municipalities, and primary government agencies, aiming to expand our profit and transform our customer structure into well-balanced. Government Former Public Corp /Fdn. 7％ Local Gov. 38％ Private, etc. 9％ 46% Order Received Amount by Source (2024) Proposal Comprehensive Evaluation Government Negotiated Contracts 18％ Price Competition 23% 38% Order Received Amount by Contract Method (2024) 21% Orders received under “Proposal” and “Comprehensive Evaluation” ,in which technical capabilities are evaluated, accounted for 60% of total orders received, indicating the high level of our technical competitiveness Proposal ：Competition based on technical proposal capability only Comprehensive Evaluation ：Competition based on both technical proposal capability and price Price Competition ：Competition based on price only Government Negotiated Contracts ：Specific contractor is selected without a competitive bidding process due to the client’s circumstances Our Strengths
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 27 The Company's (non-consolidated) business fields consist of the following four business divisions. ▮62nd (2024) Period Orders Composition Ratio (Domestic) Business fields of Domestic Segment 36% 33％ 25％ ６％ Construction Management Business Sector Water and Land Business Sector Environmental and social Business Sector Transportation and Urban Business Sector Rivers / Water Resources / Coasts / Ports / Dams / Erosion Control /Water Supply & Sewerage / Mechanical & Electrical Equipment Roads & Transportation / Urban Planning / PFIs & PPPs / Architecture Information & TelecommunicationsTechnology / Disaster Mitigation / Environment / Geo-environment Public Procurement Assistance / Construction Management & Execution Management
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 28 Ranked 1st in Sales of River Sector Our Position in the Industry (Results in 2024) Our company Business Unit Water and Land Business Sector Transportation and Urban Business Sector Sales Rank Rivers, Coasts and Sabo Sewerage Mechanical Road Urban planning and Regional planning Steel structure and concrete Tunnel １ CTIE 21,866 NJS 13,781 PCKK 790 PCKK 8,829 Oba 7,965 Dia Nippon Engineering 10,631 PCKK 2,610 ２ ID&E 13,229 Nihon Suido Consultants 11,588 CTIE 651 OC 7, 917 NK Urban Space 6,577 PCKK 7, 101 OC 2,395 ３ PCKK 8,281 NIHON SUIKO SEKKEI 6,905 JR East Consultant 572 CTIE 7,508 NIKKEN 6,093 Chodai 7,003 OYO Corporatin 1,697 ４ Yachiyo OEC TOKEN CEE Consultant ID&E Pasco OC Dia Nippon Engineering ５ Tokyo Construction Consultant TEC Group Yachiyo Dia Nippon Engineering PCKK CTIE 5,016 Nippon Civic Consultant ６ Nihon Shinko SANSUI CONSULTANT Nihon Shinko OC Eight Japan Engineering Eight Japan Engineering ７ Dorkon Nakanihon Consultant Chodai ID&E TEPSCO TEPSCO ８ OC PCKK Pasco International shipping Chiyoda Consultant CTIE 1,057 ９ Mitsui Joint Construction Consultant ID&E OC Global Showa ID&E Suncoh Consultant 10 IDEA CTIE 1,804 Fukuyama Consultant CTIE 2,690 Chuo Consultant Chuo Fukken Consultant (JPY Million) 13 Source: T op 10 companies extracted from "Nikkei Construction" April 2024 Construction Consultant Financial Ranking 2024 ("NikkeiConstruction")
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 29 Source: Top 10 companies ex tracted from "Nikkei Constr uction" April 2024 Construction Consultant Financial Ranking 2024 ("NikkeiConstruction") (JPY Million)Sales of Construction Management Business Sector increased by 50%YoY Our Position in the Industry (Results in 2024) Our company Business Unit Environmental and Social Business Sector Construction Management Business Sector Sales Rank Construction environment Electricity and electronics Environment Geo-environment Construction plan and construction equipment １ IDEA 12,719 CTIE 3,938 PCKK 2,549 Dia Nippon Engineering 3,047 Tenet Japan 4,759 ２ Kenkan Consultants 5,402 ID&E 2,153 Eight Japan Engineering 2,203 OYO Corporatin 2,754 CTIE 3,880 ３ ID&E 4,672 Chuden Technology Consultant 1,640 OYO Corporatin 1,876 ID&E 2,424 Taisei Engineering 3,193 ４ PCKK Electrical technology development Yachiyo CTIE 1,732 Yokohama Consulting Center ５ CTIE 3,520 Applied geology CTIE 1,029 Kisojiban Consultants OC ６ NS Environment Chuo Kaihatsu Corporation Planned engineering ７ Asia Air Survey Kawasaki Geological Engineering Nihon Shinko ８ Applied geology Japan Conservation Engineering Asia Co-Design Consuitant ９ OC WEST JEC PCKK 10 Chodai Docon PCKK technical management
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 30 We are expanding globally with two subsidiaries, Waterman and CTI International Consolidated Group Company (Overseas) 82% 62nd Term (2024) Composition of Overseas Segment Sales United Kingdom, Ireland, Australia History Business Outline Business Area 18% 81% 62nd Term (2024) Composition of Overseas Segment Sales CTI Engineering International March 1999, spun off as wholly owned subsidiary from our overseas business division Consulting engineer business mainly through ODA in semi-developed and developing countries Japan International Cooperation Agency (JICA) World Bank, Asian Development Bank, other governments, etc. Based in Japan, the Philippines, and Myanmar Business target area: Asia, Africa, Middle East, South America, etc. History Business Outline Business Area Major Business Partners Waterman Group Plc Joined CTI Group in June 2017 Private sector Structure, Building service, Civil Engineering Public sector Civil Engineering, Secondment of engineers
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Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 31 Sales of Waterman Group Plc after the Acquisition ・ Sales of Waterman Group Plc have progressed steadily since 2017 ・ After our acquisition, public sector Sales have increased Sales Trends (GBP) (Unit ：Millions of GBP) (Unit: ％) 96 102 97 117 127 135 131 30.0 34.3 43.9 47.7 45.7 47.7 49.8 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 0 20 40 60 80 100 120 140 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Total Private/Public Public as a percentage of total 82% FY2024(62nd Term) Composition of Overseas Segment Sales Waterman Group Plc Joined CTI Group in June 2017 United Kingdom, Ireland, Australia Private sector Structure, Building service, Civil Engineering Public sector Civil Engineering, Secondment of engineers History Business Outline Business Area
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 32 Mid-Term Management Plan 2027 Appendix : Five Key Factors to Express “How we should be" Developing, Strengthening, and Activating Autonomous Human Resources ・High engagement ・Teamwork by diverse HR ・Abundant global HR Contribute to Sustainable Society ・Contributing to a sustainable society through operations ・Efforts to reduce environmental impact Raise the level of expertise ・Provide high-quality services ・Development of specialised skills ・Development and acquisition of new technologies Increase the value of company ・ Management focused on capital efficiency ・ Achieve steady profit growth ・ Offensive and defensive corporate governance Challenge for transformation ・ Adoption of innovative technologies ・ Challenge for new businesses ・ Challenge to expand into private and overseas markets Improvement of Customer Satisfaction & Engineering Competitiveness Improvement of Employee Engagement Growth of Engineers Improvement of Profitability Giving Back to employees Improvement of Corporate Value Acquisition of Human Resources ① Human Resources ② Engineering ③ Enviroment ④ Corporate value ⑤ Trans formation Based on the five key factors that express ideal state of CTI Engineering Group, the measures to be implemented in the Mid - Term Management Plan 2027 are consolidated into two pillars.
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 33 Mid-Term Management Plan 2027 Appendix : Rationale for Numerical Targets ● Important management figures in 2027 Continue to strengthen our workforce at an annual growth rate of around 5% and aim for net sales of JPY 110 billion or more (achieve SPRONG2030, our mid- to long-term vision, ahead of schedule)Sales Aiming for sustainable profit growth over mid- to long-term and operating income of JPY 12 billion or moreOperating income Secure at least 12% ROE by business development, improvement of productivity and appropriate returning profits to shareholdersROE Increase labour productivity by 10% or more from the current level by improving efficiency through promotion of DX and upgrading project management. (10% improvement in internal output per hour) Labour productivity • Achieve a balanced customer structure with local governments and the private sector while keeping orders from the Ministry of Land, Infrastructure, Transport and Tourism • Achieve targets through sustainable growth in core business areas, expansion of growth areas, and external growth such as M&A Orders Received Plan ● Key points in setting the plan • Improve ROE and EPS by combining steady growth in operating income, flexible shareholder returns such as dividends, and external growth such as M&A Financial Plan • Continue to strengthen workforce and raise wages • Improve or maintain gross margins through DX and work efficiency • Reduce operational reworks and errors by upgrading PM. Improve performance quality and reduce working hours through the advancement of PM. • Decrease SG&A Expenses by DX and improving efficiency Profit Plan
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 34 51.6 51.3 47.6 48.1 42.9 41.9 42.1 42.4 48.3 47.5 56.6 58.8 61.3 61.8 62.3 63.0 65.6 68.5 71.1 73.0 0 10 20 30 40 50 60 70 80 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Construction investment(Government) Construction investment(Private sector) ▮Source by MLIT Increase in construction investment 5.9 5.6 5.4 5.3 5.7 4.9 4.3 3.9 4.5 5.2 5.2 5.2 5.2 5.2 5.3 5.3 5.2 5.2 5.3 5.3 5.3 0.4 0.4 0.4 0.5 1.6 0.5 0.2 1.8 0.7 0.3 0.4 1.2 0.7 0.5 1.2 0.6 0.5 0.6 0.7 0.8 0.6 0.7 0.7 1.4 1.0 1.0 1.1 1.1 6.3 6.0 5.8 5.8 7.3 5.3 4.5 5.7 5.2 5.5 5.6 6.4 5.9 6.3 7.2 7.9 6.8 6.9 7.1 7.2 5.3 0 5 10 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Supplementary budget Initial budget Three-Year Emergency Response Plan for Disaster Prevention, Disaster Mitigation, and Building National Five-Year Accelerated Plan for Disaster Prevention, Disaster Mitigation and Building National Resilience JPY trillion Mid-Term Management Plan 2027 Appendix : External Environment (Trend of Public Works Expenditures and Construction Investments) Steady growth in public works-related expenditures ▮Source by MLIT JPY trillion The market for consulting engineering business, our core business, is strongly influenced by government budget allocations and construction investment. Public works expenditures (Ministry of Land, Infrastructure, Transport and Tourism) have remained steady due to the “Five-Year Acceleration Plan for Disaster Prevention, Disaster Mitigation and Building National Resilience" through 2025. Overall construction investment (public and private) has been increasing continuously since 2014. Construction investment by the government and the private sector is expected to stabilise to a certain extent in the future, and the potential market is also large due to the state of undeveloped infrastructure.
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 35 (Reference Data) External Environment (Disaster prevention and mitigation, national resilience policy) • Government approved the “The First Medium-Term National Resilience Implementation Plan” in June 2025 • The plan covers the five-year period from FY2026 to FY2030 with an estimated total budget of approximately JPY 20 trillion * JPY 15.6 trillion secured for the previous five-year accelerated measures through by FY2025 Background: - Assumed damage from Nankai Trough megathrust earthquake - Increasing severity and frequency of heavy rain disasters due to climate change - Road sinkhole accidents caused by aging infrastructure Major Plans: - Disaster prevention infrastructure: Enhancement/utilisation of flood risk information, basin flood control measures - Lifeline resilience: Measures against the aging road/water facilities, reinforce seismic resilience of bridges and other structures - Digital & new technology: Labour-saving measures at construction sites utilising automated construction technology - Public-private partnership: Seismic reinforcement of housing/buildings, measures for disaster-resilient urban development - Strengthening regional disaster: Improvement of evacuation shelter environments, enhancement of disaster equipments Project Scale: - Disaster prevention infrastructure: 5.8 trillion yen - Lifeline resilience: 10.6 trillion yen - Digital & new technology: 0.3 trillion yen - Public-private partnership: 1.8 trillion yen - Regional disaster preparedness: 1.8 trillion yen Source: First Medium-Term Plan for the Implementation of National Land Toughening Measures, Cabinet Secretariat
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Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 36 ● Unit price for design engineers: A unit price used for the estimation of design outsourcing (design, survey, geology, etc.) ordered by the Ministry of Land, Infrastructure, Transport and Tourism. Set unit prices based on annual salary surveys ● In FY 2025, the average of all job categories was 49,570 yen, up 5.7% ▮Source by MLIT Mid-Term Management Plan 2027 Appendix : External Environment (Public works expenses and construction investment) 39,033 38,943 37,890 35,133 34,505 33,119 31,652 31,000 30,690 30,386 30,919 31,13331,510 31,681 31,671 31,24831,633 32,640 34,175 35,470 36,580 37,665 39,055 40,260 40,890 42,195 44,455 46,880 20,000 25,000 30,000 35,000 40,000 45,000 50,000 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 49,570Increase in unit price for design engineers JPY
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B u s i n e s s P h i l o s o p h y W e s t r i v e t o c r e a t e a s a f e , CTI Engineering Co., Ltd. has faced social issues with integrity throughout its history as a pioneering consulting engineer. It has worked to solve a variety of infrastructure development issues by constantly improving its engineering capabilities. As technological innovation accelerates, we will serve as a group of professionals who will ambitiously take on new technologies and always provide the best infrastructure services. We will work tirelessly to create a society where people can live safely and securely with an eye on the future. Comfortable and enriching society U s i n g w o r l d- c l a s s t e c h n o l o g y a n d e x p e r t i s e . 37