Slides
Page 1
FY2025 (63rd Term) Financial Results and Progress of the Mid-Term Management Plan Feb 13, 2026Tokyo Stock Exchange / Code number： 9621
Page 2
2 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 3
3 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 4
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 4 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Highlights from FY2025 (63rd Term) Financial Results FY2025(63rd Term) : Increase in Sales, decrease in profit • Orders received : Strong, 9.7% up compared with the target • Sales : Steady, 1.0% up compared with the target • Operating income : 8.6% down compared with the target Affected by a decline in utilisation rates and an increase in SG&A expenses in overseas business • Net Income Attributable to Owners of the Parent : 5.5% down compared with the target Impacted by factors such as dormant assets of employee dormitories, losses on waiver of receivables for subsidiaries and loss on valuation of investment securities. Shareholder returns : Total return ratio 45.4% • Dividend : JPY 75 per share (Dividend payout ratio : 35.0%) • Currently conducting acquisition of treasury shares up to JPY 1.5 billion
Page 5
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 5 FY2025 (63rd Term)-Financial Highlight（Consolidated） Orders Received JPY 109,701 million FY2024 (62nd) JPY 94,400 million %YoY +16.2％ Net Income Attributable to Owners of the Parent JPY5,952 million FY2024 (62nd) JPY 6,746 million %YoY -11.8 ％ Sales JPY101,038 million FY2024 (62nd) JPY 97,678 million %YoY +3.4％ Operating Income JPY9,136 million FY2024 (62nd) JPY 9,396 million %YoY -2.8％ Strong performance both in domestic and overseas business, exceeding JPY 100 billion for the first time. Domestic : Driven by local governments, the private sector and strategic growth areas. Overseas : Strong performance by both Waterman Group Plc and CTI Engineering International. Orders Received Reached a record high, exceeding JPY 100 billion for the first time due to strong Orders Received.Sales Decreased due to higher SG&A expenses resulting from lower utilization rates in overseas business.Operating Income
Page 6
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 6 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% • FY2025 (63rd Term) -Financial Highlight （ Achievement vs. Plan ） Orders Received and Sales achieved the target, while Operating Income and Net Income did not reach the target. JPY 100,000 million JPY 100,000 million JPY 10,000 million JPY 6,300 million FY2025(63rd) FY2025(63rd) Plan Actual vs. Plan 10.0% Orders Received 100％ Sales Operating Income OI Margin Net Income Attributable to Owners of the Parent JPY 109,701 million JPY 101,038 million JPY 9,136 million JPY 5,952 million Achievement Rate 109.7% Achievement Rate 101.0% Achievement Rate 91.4% Achievement Rate 94.5% 9.0% 50％
Page 7
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 7 FY2025 (63rd Term) - Profit and Loss Statement (Consolidated) FY2024 (62nd Term) FY2025 (63rd Term) FY2025 (63rd Term) (Updated FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan(%) Orders Received 94,400 109,701 +15,301 +16.2% 100,000 109.7% Sales 97,678 101,038 +3,359 +3.4% 100,000 101.0% Operating Income 9,396 9,136 -260 -2.8% 10,000 91.4% OI Margin 9.6% 9.0% - -0.6pt 10.0% - Ordinary Profit 9,535 9,350 -184 -1.9% 10,000 93.5% Net Income Attributable to Owners of the Parent 6,746 5,952 -794 -11.8% 6,300 94.5% （JPY million）
Page 8
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 8 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Income Statement（Consolidated） - 5 years Trend - 9.4% 9.6% 10.8% 9.6% 9.0% 18.5% 18.5% 18.3% 19.5% 20.2% 5% 10% 15% 20% 25% 2021 2022 2023 2024 2025 営業利益率 販管費率 6.9 8.0 10.0 9.4 9.1 13.7 15.4 17.0 19.0 20.4 53.6 60.0 66.0 69.2 71.4 74.4 83.4 93.0 97.6 0 200 400 600 800 1000 2021 2022 2023 2024 2025 営業利益 販管費 売上原価 101.0 Operating Income SG&A Expenses(JPY billion) Operating Income Margin, etc. - 5 years Trend - ・Cost of Sales Ratio :70.7%(YoY -0.2pt) ・SG&A Ratio : 20.2% (YoY +0.7pt) ・Operating Income Margin: 9.0% (YoY -0.6pt) Sales Composition - 5 years Trend - ・Sales reached a record high due to strong Orders Received, exceeding JPY 100 billion for the first time ・Operating Income slightly decreased due to higher SG&A Expenses 72.1% 71.9% 70.9% 70.9% 70.7% 70% 75% 売上原価率 SG&A RatioOI Margin COS Ratio Cost of Sales
Page 9
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 9 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Analysis of Changes in Operating Income 9,396 Sales cost of sales SG&A Expenses 2024 Operating Income 2025 Operating Income YoY –260 One-time costs ・Decline in utilisation rates in overseas business ・Office relocation and renovation costs ・M&A advisory fees ・Liability insurance fees, etc. Recurring costs ・Personnel-related expenses due to increased headcount ・DX promotion expenses, etc. ・Cost of sales increased in line with higher Sales. Cost of Sales Ratio decreased by 0.2pt YoY ・SG&A Expenses increased in both constant and one-time expenses ・SG&A expenses ratio increased 0.7 pt YoY ・Operating Income decreased due to higher SG&A expenses. ・OI Margin decreased by 0.6pt YoY 3,359 -2,206 -1,413 9,136 （JPY million） Causes of increase in SG&A expenses
Page 10
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 10 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Fixed Assets 30.7 Fixed Assets 33.8 Current Assets 56.9 Current Assets 62.5 Net Assets 61.7 Net Assets 66.8 Fixed Liabilities 3.6 Fixed Liabilities 6.8 Current Liabilities 22.3 Current Liabilities 22.7 Net Worth Ratio 70.1% Net Worth Ratio 69.1% 2024 2025 Total Assets JPY 87.6 billion Total Assets JPY 96.3 billion Balance Sheet ・ Total Assets increased by JPY 8.7 billion YOY to JPY 96.3 billion due to an increase in accounts receivable (+JPY 4.1 billion), and right-of-use assets (+JPY 1.7 billion), etc. ・ Total Liabilities increased by JPY 3.6 billion YOY to JPY 29.5 billion due to decrease in short-term borrowings (-JPY 0.6 billion), increase in long- term lease obligations (+JPY 1.9 billion) and asset retirement obligations (+JPY 0.5 billion), etc. ・Net worth ratio decreased by 1.0pt to 69.1％ Cash Flow ・ Cash & cash equivalents closing balance : JPY 15 billion (+ JPY 0.4 billion YOY) FY2024 FY2025 Main topics in FY2025 Operating CF 2.4 5.7 Profit before income taxes +9.0 Increase in trade receivables -3.6 Investing CF -5.6 -0.6 Acquisition of tangible fixed assets -1.1 Financing CF -2.1 -5.0 Dividend payments -2.0 Acquisition of treasury shares -0.6 （JPY billion） Balance Sheet／Cash Flow（Consolidated） 0 50 100 150 200 250 14.6 5.7 -0.6 -5.0 0.3 15.0 （JPY billion） 5 10 15 20 25
Page 11
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 11 Orders Received and Sales exceeded the target, while Operating Income fell short of the plan ・Orders received and Sales were strong, supported by steady performance in Core Businesses and strong performance in Growth Areas and New Businesses ・Operating Income was affected by some subsidiaries failing to meet their targets ・Due to strong Orders Received, the balance of Orders Received at the end of the period was JPY 41.2 billion (JPY 38.0 billion at the beginning of the period, increased by 8%) FY2025 (63rd Term) Results Outline by Segment: Domestic Business FY2024 (62nd Term) FY2025 (63rd Term) FY2025 (63rd Term) (FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan (%) Orders Received 65,724 72,411 +6,687 +10.2% 67,000 108.1% Sales 66,945 69,724 +2,779 +4.2% 69,000 101.0% Operating Income 8,610 8,611 +1 ＋0.0% 9,300 92.6% OI Margin 12.9％ 12.4％ - -0.5pt 13.5% - （JPY million）
Page 12
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 12 Orders Received Amount by Clients Overview of Orders Received (Domestic Business) Orders Received Amount by Contract Method ・ While the business portfolio transformation is progressing, the ratio of highly profitable technical competition (Proposal and Comprehensive Evaluation) remains unchanged YoY 29.5 29.3 29.9 30.4 31.7 6.3 4.8 5.9 4.6 5.0 20.1 19.0 21.6 25.0 29.0 2.7 5.0 4.7 5.7 6.7 0 200 400 600 2021 2022 2023 2024 2025 （JPY billion） 60.0 24.3 22.5 24.7 24.8 27.6 13.5 12.6 12.3 14.1 15.0 9.2 11.3 10.7 11.8 12.3 11.6 11.7 14.4 15.0 17.5 0 200 400 600 2021 2022 2023 2024 2025 （JPY billion） 60.0 40.0 20.0 0.0 44% 7% 39% 10% 38％ 21％ 17％ 24％ 40.0 20.0 0.0 • Steady progress in Business Portfolio Transformation • Slightly increased from Government (＋5％ YoY) • Orders from both local governments and the private sector were strong(＋16％ YoY)
Page 13
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 13 Orders Received Amount by Business Sector ・Water＆Land Business Sector remained strong, driven by strong performance in water ＆ sewage sector (＋35％ YoY) ・Transportation＆Urban Business Sector performed strongly, supported by contributions from group companies ・Construction Management Business Sector have been strong due to an increase in orders for multi-year contracts ・Gross profit margin remained high levels in both Water & Land and Construction Management. 35％ 33% 24％ 8％ （JPY billion） Water & Land Business Sector Rivers / Water Resources / Coasts / Ports / Dams / Erosion Control /Water Supply & Sewerage / Mechanical & Electrical Equipment Transportation & Urban Business Sector Roads & Transportation / Urban Planning / PFIs & PPPs / Architecture Environment & Social Business Sector Information & Telecommunications Technology / Disaster Mitigation / Environment / Geo-environment Construction Management Business Sector Public Procurement Assistance / Construction Management & Execution Management YoY 7.4％ Gross Profit Margin 36.5％ YoY 10.0％ Gross Profit Margin 28.4％ YoY 5.6％ Gross Profit Margin 30.2％ YoY 45.2％ Gross Profit Margin 36.6％ 21.0 21.1 22.3 23.7 25.4 19.9 18.6 19.4 21.4 23.6 12.7 15.1 15.2 16.5 17.45.0 3.3 5.2 4.1 6.0 0 200 400 600 2021 2022 2023 2024 2025 60.0 40.0 20.0 0.0 Overview of Orders Received (Domestic Business)
Page 14
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 14 ・ Orders Received exceeded the target and Sales in line with targets, while Operating Income decreased significantly CTI Engineering International (CTII) : Orders Received exceeded the plan due to large-scale projects, while Operating Income was heavily impacted by a decline in utilisation rates due to resulting from delays in the timing of contracts. Waterman Group Plc (Waterman): Operating Income decreased year-on-year due to prolonged high inflation in the Uk and the impact of fiscal policy by the Labour government, however, Orders Received, Sales, and Operating Income all achieved the target Overview of FY2025 (63rd Term) Results by segment: Overseas Business FY2024 (62nd Term) FY2025 (63rd Term) FY2025 (63rd Term) (FY Plan) Change(¥) (YoY) Change(%) (YoY) Achievement vs. Plan (%) Orders Received 28,676 37,290 8,613 +30.0% (＋31.9%) 33,000 113.0% Sales 30,733 31,313 580 +1.9% (＋0.3%) 31,000 101.0% Operating Income 773 543 -229 -29.7% (-30.8%) 700 77.7% OI Margin 2.5％ 1.7％ - -0.8pt 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.
Page 15
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 15 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Orders Received Amount 11.4 10.1 9.5 7.5 10.6 8.2 8.5 9.3 9.2 10.1 4.9 6.4 7.6 8.7 10.3 0 100 200 300 2021 2022 2023 2024 2025 30.0 20.0 10.0 0.0 （JPY billion） Trend in balance of Orders Received ・CTII increased significantly YoY due to the acquisition of large-scale projects ・Waterman exceeded the previous year in both the public and private sectors 5.6 5.3 4.8 2.3 8.2 10.5 11.5 13.0 12.6 14.1 9.6 10.8 12.5 13.7 14.9 0 100 200 300 400 2021 2022 2023 2024 2025 CTII Waterman民間 Waterman公共 （JPY billion） 10.0 20.0 30.0 40.0 • Overview of Orders Received (Overseas Business)
Page 16
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 16 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Overview of Sales and Profit (Overseas Business) Sales achieved the target, but Operating Income decreased due to a decline in utilisation rate and other factors Trend in Sales 3.0 4.7 5.0 5.4 4.8 9.3 11.2 12.3 12.7 13.2 8.4 9.4 11.2 12.6 13.3 -50 50 150 250 350 2021 2022 2023 2024 2025 15.0 25.0 35.0 Trend in Operating Income and OI Margin 5.0 0.95 1.13 1.07 0.77 0.54 0.26 0.28 0.31 0.34 0.34 4.6% 4.5% 3.8% 2.5% 1.7% 5.6% 5.6% 4.8% 3.6% 2.8% 0% 5% 10% 0 5 10 15 2021 2022 2023 2024 2025 （JPY billion） （JPY billion）
Page 17
17 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 18
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 18 Mid-Term Management Plan 2027: Year 1 Summary & Year 2 Policy ⚫ Sales: Achieved ⚫ Operating Income: Unachieved ⚫ ROE: Declined YoY ⚫ Stable growth in Core Business ⚫ Surgence in Growth Areas ⚫ Rise of New businesses ⚫ Decline of profitability in Overseas Business ⚫ Each measure was implemented on track, but issues remain Financial Targets Priority Themes 2025 Summary Toward 2026 2026 Policy 01 02 03 04 05 06 key issues Business Environment Analysis For more information on business environment analysis, please refer to pages 34-35 Accelerate Business Portfolio Transformation and strengthen the Rebuild of Foundation for Growth to achieve the Mid-Term Management Plan targets Financial Targets Business Portfolio Transformation Rebuild of Foundation for Growth Sales JPY 101 billon JPY 105 billon Operating Income JPY 9.1billon JPY 10.5 billon Operating Income Margin 9.0% 10.0% 01 02 03 04 Accelerate Business Portfolio Transformation Decrease in SG&A ratio 07 Strengthen technological competitiveness Improve profitability in Overseas Business Improve employee engagement Further enhance productivity Strengthen group governance Improve capital efficiency Increase the Employee Engagement Ranking Improve productivity through quality and production system reforms Strengthen group governance for both offensive and defensive perspectives
Page 19
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 19 207.75 271.06 243.10 214.45 256.05 13.1% 14.7% 11.6% 9.3% 12% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 100 200 300 400 500 600 2022 実績 2023 実績 2024 実績 2025 実績 2026 計画 2027 計画 JPY※EPS ROE Sales Operating Income・OI Margin ROE・EPS 83.4 93.0 97.6 101.0 105.0 110.0 400 600 800 1,000 1,200 2022 実績 2023 実績 2024 実績 2025 実績 2026 計画 2027 計画 100 120 8.0 10.0 9.3 9.1 10.5 12.0 9.6% 10.8% 9.6% 9.0% 10.0% 11.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 0 100 200 2022 実績 2023 実績 2024 実績 2025 実績 2026 計画 2027 計画 JPY billion JPY billion Mid-Term Management Plan 2027 Year 1 Summary：Financial Targets ●Sales achieved 2025 target of JPY 100 billion, and on track to reach 2027 target of 110 billion yen ●Operating Income was lower than the previous year, falling short of the 2025 target of 10% ●ROE decreased from the previous year due to lower profit margin and the impact of extraordinary losses, etc., despite capital efficiency improvement through shareholder returns ※The Company has conducted a 2-for-1 stock split of its common shares as of January 1,2025. EPS was calculated on the premise that the stock split was conducted at the beginning of the previous fiscal year. Key issue 01 Key issue 03 Key issue 05 Key issue 07 40 60 80 10 20 Result Result Result Result Plan Plan
Page 20
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 20 Core Business ⚫ Sales in Domestic Business have been steady ⚫ Ensured stable profitability through cost management ⚫ Number of orders has been on a downward trend, leading to intensified technological competition Growth Areas ⚫ Rapid expansion of CM/PM business ⚫ Information services business showed stable growth, achieving profit margins equivalent to the Core Business ⚫ Energy Business successfully built a track record with large orders related to hydroelectric power generation New Businesses ⚫ PPP/PFI projects performed strongly ⚫ Urban infrastructure and building-related markets have been booming, driving expanded group-wide collaboration in related businesses ⚫ In the environmental sector, we have entered new fields such as PFAS contamination surveys Overseas Business ⚫ Sales achieved the target, but Operating Income decreased due to increased SG&A expenses resulting from lower utilisation ratio ⚫ Orders Received achieved target supported by large infrastructure orders in Asia. While, the number of new projects adopted decreased due to a shrinking ODA budget, leading to lower utilisation rates ●Concerns about the weak UK economy and inflation also persist ● Core Businesses are steady. Growth Areas and New Businesses are expanding and growing on track ● In the Overseas Business, Orders Received and Sales were in line with targets, but improving profitability is an issue for the future Mid-Term Management Plan 2027 Year 1 Summary：Business Portfolio Transformation Please refer to page 26 Please refer to page 27 Please refer to pages 17-19 Improve profitability in Overseas Business Key issue 02 Sales in the previous year JPY 54.7 billion JPY 55.4billion Gross Profit Margin 32% Sales in the previous year JPY 10.5 billion JPY 12.3billion Gross Profit Margin 35% Sales in the previous year JPY 1.9 billion JPY 2.0billion Gross Profit Margin 34% Sales in the previous year JPY 30.7 billion JPY 31.3billion Gross Profit Margin 22% Please refer to page 25 Key issue 01 Strengthen Technological competitiveness
Page 21
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 21 Mid-Term Management Plan 2027 Year 1 Review ： Business Portfolio Transformation - Core Business 30.7 31.3 32.5 1.9 2.0 3.0 10.3 12.3 13.5 54.7 55.4 61.0 0 200 400 600 800 1,000 2024 実績 2025 実績 2026 計画 2027 計画 海外事業 新規探索 成長分野 コア事業 JPY billion 20.0 40.0 ●Sales in Domestic Business have been steady. Ensured stable profitability through cost management ●Number of orders for consulting engineer services has been on a downward trend. Strengthening technological competitiveness is a future challenge MLIT 47% Prefecture 22% Municipalities 14% Former Public Corp./Fdn 9% Private 8% MLIT 43% Prefecture 23% Municipalities 16% Former Public Corp./Fdn 10% Private 8% FY2024 Sales JPY 66.9 billion FY2025 Sales JPY 69.7 billion 34,699 32,946 FY2024 FY2025 5% Down Strengthen technological competitiveness Key issue 01 Business Portfolio and Client Portfolio are being transformed in line with the Mid-Term Management Plan2027 Number of orders (*) decreased ※ Refer to the number of domestic public orders in Jan-Dec R6 and Jan-Dec R7 from "50 Construction Consultants," a survey by the Ministry of Land, Infrastructure, Transport and Tourism of Japan on the dynamics of construction-related industries, etc. Sales Amount Breakdown by Portfolio Sales by Client (%) (Sales Amount figures are for the domestic segment) 80.0 60.0 100.0 Overseas New Growth Core Result Result Plan Plan
Page 22
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 22 Mid-Term Management Plan 2027 Year 1 Summary：Business Portfolio Transformation - Growth Area ・ ICT/DX-related services, such as AI-based dam operation support and flood forecasting, have showed remarkable growth ・ These areas demonstrate steady growth and achieved the same level of profitability as the Core Business Information services CM／PMEnergy ● Sales increased across all three Growth Area businesses, contributing steadily to Business Portfolio Transformation 8 571 1,101 1,786 1,896 2,500 2021年 実績 2022年 実績 2023年 実績 2024年 実績 2025年 実績 2026年 計画 2027年 計画 1,164 1,762 3,548 3,277 4,245 4,500 2021年 実績 2022年 実績 2023年 実績 2024年 実績 2025年 実績 2026年 計画 2027年 計画 ・ Rapid expansion by shifting personnels from Core Businesses and proactive sales development. Significant increase in both the number of projects and sales, with improved profitability ・ Construction Management (CM) services by NISSOKEN ARCHITECTS & ENGINEERS Co., Ltd. and client support services by Japan Urban Engineering Co., Ltd., both group companies, also increased 3,042 4,697 5,349 5,456 6,115 6,500 2021年 実績 2022年 実績 2023年 実績 2024年 実績 2025年 実績 2026年 計画 2027年 計画 ・ Successfully established a track record by winning orders of large-scale project for hydropower generation and regional development work (PPP) ・ Issues include developing new areas other than the assessment work at renewable energy and increasing involvement in policy-related projects such as the Ministry of the Environment and the Ministry of Economy, Trade and Industry Sales results and targets in Growth Area (JPY million) 2021 Result 2022 Result 2023 Result 2024 Result 2025 Result 2026 Plan 2027 Plan 2021 Result 2022 Result 2023 Result 2024 Result 2025 Result 2026 Plan 2027 Plan
Page 23
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 23 Mid-Term Management Plan 2027 Year 1 Summary：Business Portfolio Transformation New Businesses ● PPP/PFI projects performed strongly ● Urban infrastructure and building-related markets were booming, driving expanded group-wide collaboration in related businesses ● In the environmental sector, we have entered new fields such as PFAS contamination surveys Comprehensive Urban and Architectural Business Civil Engineering x Architecture x Urban Planning and Land Readjustment PFAS contamination investigation and remediation Environmental Assessment x Analysis Civil Engineering Consultants Architectural design Urban Planning and Land Readjustment Source investigation and diffusion forecasting Pollution Remediation Measures × PFAS Analysis What is PFAS？（Organofluorine compound ） PFAS is a collective term for organic compounds with carbon-fluorine bonds, which have unique and useful properties such as water and oil repellency and fire resistance. They are extremely difficult to decompose in the environment, and environmental pollution caused by PFAS used in the past has already become apparent across Japan Examples of Group Collaboration：Collaboration among group companies, leveraging their strengths, will enable entry into new fields CTI Engineering Co., Ltd NISSOKEN ARCHITECTS & ENGINEERS Co., Ltd. Japan Urban Engineering Co., Ltd CTI Engineering Co., Ltd Environmental Research＆ Solutions Co., Ltd
Page 24
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 24 Mid-Term Management Plan 2027 Year 1 Summary ：Rebuild of Foundation for Growth 2025 Summary key issue for 2026 Strengthening Investment in Human Capital1 ⚫ Status of achievement of KGIs ※1： Number of engineers (consolidated) is currently being compiled. ※2： As the Life Support Program was newly established this year, targets were re-set in line with the program.(from 20% to 6% when the mid-Term Plan was announced) Improve engagement Key issue 04 Number of engineers (non-consolidated) ※1 Target for 2027: 1,940 people 1,752people Diverse permanent employee system utilisation rate ※2 4.8% Target for 2027: 6.0% BBB(56.3) Target for 2027: A（58.0） Engagement score Target for 2027: 6.0% Ratio of female managers 4.7% Attrition rate 4.0% Target 2027: Less than 3％ • The number of engineers, both on a non-consolidated and group basis, increased steadily toward the 2027 target. The ratio of female managers has also increased. • Attrition rate has slightly increased • While the overall engagement score improved, scores remain low for items related to understanding of company policies, such as the sharing of strategic goals.
Page 25
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 25 Mid-Term Management Plan 2027 Year 1 Summary ：Rebuild of Foundation for Growth 2025 Summary • The number of managing engineers serving as project leaders increased steadily • Annual working hours were on a downward trend, while the 2027 target has not yet been met • HC-ROI (Human Capital Return on Investment) improved from the previous year. Initiatives to enhance productivity progressed steadily • The number of business awards decreased, and two serious errors occurred. Ensuring and improving quality remained a key issue key issue for 2026 DX / Production System Reform２ Further enhance productivity 5.7% increase Number of management engineers Target for 2027: 5% increase/year ⚫ Status of achievement of KGIs 2,105 hours Annual working hours Target for 2027: 2,000 hours 2.6 % Target for 2027: 10% improvement 2 Serious accident/mistake Target for 2027: 0 Key issue 05 8.1% reduction Non-productive work hours Target for 2027: 30％ reduction IT Environment Satisfaction Target for 2027: 3.5pt or more 3.4pt Number of business awards 68 Target for 2027: 80/year ※ KGI to measure the effect of productivity improvement switched from internal output per hour to HC-ROI as a more appropriate indicator of the efficiency of human resource investment and productivity improvement HC-ROI improvement
Page 26
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 26 Mid-Term Management Plan 2027 Year 1 Summary ：Rebuild of Foundation for Growth 2025 Summary • Sales from climate change related business have reached both 2025 target and the Mid-Term Management Plan 2027 target • Measures to achieve net zero are being taken by the entire group Challenges for Sustainability3 ⚫ Status of achievement of KGIs ※ GHG emissions are currently being compiled Strengthening Group Governance4 JPY 36.4billion Target for 2027: Over JPY 28 billion Received a "B" score in CDP Climate Change 2025 Business Sales related to climate change 2025 Summary ・ Strengthen investment governance, including clarifying investment decision criteria for M&A and business investments, as well as monitoring and exiting criteria ・ Organisational reform implemented. Audit Office and Legal & Compliance department moved to under direct supervision of the President ・ Established Corporate Governance Committee chaired by External Director to improve the effectiveness of the Board of Directors. key issue for 2026 Strengthen group governance Key issue 06 ０ Target for 2027:０ ⚫ Status of achievement of KGIs Serious Fraud
Page 27
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 27 Mid-Term Management Plan 2027 Year 1 Summary ： Management that is Conscious of Cost of Capital and Stock Price - Analysis of the current situation ● Cost of Capital: We estimate the Cost of Equity to be approximately 8% ● ROE: ROE exceeded the Cost of Capital, but it declined from the previous year due to a decrease in profits and the impact of extraordinary losses ● PER: PER increased to 13.9 in the end of FY2025. We consider that this is the result of growth expectations following the announcement of the Mid-Term Management Plan and upward revision of the Mid- to Long- Term Vision, as well as shareholder returns and improved communication with shareholders and investors. However, it continues to be inferior to the Tokyo Stock Exchange Prime Market average ● PBR: PBR currently stands at approximately 1.2 times. We think that Capital Efficiency and steady implementation of growth strategies are important to further enhance corporate value ※ P E R「 東 証 プ ラ イ ム平 均」 は、 東証 統計 資料 「プ ライ ム市 場・ 非製 造業 （単 純） 」各 年12月値 を参 照 11.3 12.3 13.1 14.7 11.6 9.3 0.0 5.0 10.0 15.0 20.0 2020 2021 2022 2023 2024 2025 ROE(％） 株主資本コスト ROE Transition We consider the Cost of equity to be 8% PER Transition 9.2 7.9 7.7 9.7 10.1 13.9 21.2 27.6 15.6 16.1 16.4 17.3 0.0 10.0 20.0 30.0 2020 2021 2022 2023 2024 2025 当社PER(倍) 東証プライム 非製造業平均(倍) Please refer to Appendix Page 69-71 for details on Management that is Conscious of Cost of Capital and Stock Price Kei issue 07 the Cost of equity Our PER(times) the TSE Prime average(times) PBR・株価の推移 1,191 1,249 1,605 2,630 2,460 2,972 1.0 0.9 1.0 1.3 1.1 1.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 2020 2021 2022 2023 2024 2025 期末株価(円） PBR(倍）Stock Price(Yen) PBR(times)
Page 28
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 28 ￥17.5 ￥22.5 ￥30.0 ￥50.0 ￥75.0 ￥75.0 ￥75.0 ￥78.0 19/12 20/12 21/12 22/12 23/12 24/12 25/12 26/12 27/12 ● Dividends per share : Maintained the dividend at JPY 75, the same as the previous period, resulting in a consolidated dividend payout ratio of 35.0% ● DOE (Dividend on Equity): Achieved our policy of 3% (2025 Result : 3.2%) ● Implemented acquisition of treasury shares up to JPY 1.5 billion and 700,000 shares, achieving a total return ratio of 45.4% ● EPS (Earnings Per Share) : EPS growth was negative this fiscal year due to a decline in profit margins Shareholder Returns (Dividends and Total Return Ratio) ROE 9.6% 11.3% 12.3% 13.1% 14.7% 11.6% 9.3% 12％or more EPS（Yen）※ 99.30 129.08 158.13 207.75 271.06 243.10 214.45 growth rate -11.8% CAGR2024-2027 Average growth rate 10% or more Return ratio 17.6% 17.4% 19.0% 24.1% 27.7% 30.9% 35.0% 30％or more Total Return Ratio 17.6% 17.4% 19.0% 24.1% 40.9% 30.9% 45.4% around35～50% ※We conducted two for-one stock splits of common stock on January 1, 2025. Each dividends and EPS are calculated as if the stock split had occurred at the beginning of year. Dividends per share ※ Mid-Term Management Plan 2027 Year 1 Summary ： Shareholder Returns
Page 29
29 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 30
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 30 PEST axis Key structural changes P: Politics Continuation of national resilience, disaster prevention, and mitigation policies Reinforcement of infrastructure longevity policies Shortage of engineers on the client side and shortage of public financial resources Expansion of security policies (Defense and Economy) E: Economy Growing demand for energy Expansion of inbound tourism and the tourism market Rapid growth of logistics and data economy S: Society Declining population, aging population, urban concentration Increasing awareness of disaster prevention and resilience Growing environmental awareness Technical succession problem due to labour shortage T: Technology Technological innovation through Generative AI and other tools Digitalization of social infrastructure Market Segments Infrastructure for national resilience and disaster prevention Maintenance and renewal CM/PM, PPP/PFI Defense Infrastructure Energy Infrastructure Urban redevelopment and regional management support DX and AI support/ Information Services Mid-Term Management Plan 2027 Toward Year 2: Business Environment Analysis (Domestic Business) ● With the major structural changes in society in mind, the PEST framework analyzed the areas that should be the core of future Business Portfolio Transformation core core core core ・Expansion of survey, planning and design services related to the resilience of defense facilities ・Continuity of national policy for renewable energy and decarbonisation ・Expansion of long-term infrastructure investment in offshore wind, ZEB, and regional net zero, etc. ・Increasing demand for more efficient in maintenance management, including inspection, testing and management ・Rapidly growing demand for technical skill transfer, human resource development and knowledge management ・Applicable to the fields of construction, disaster prevention and community education Growth Potential ・Growing needs due to shortages of staff in local government ・Increase in private sector utilisation through PPP, ECI, DB, etc. ・Comprehensive management needs for private- sector projects
Page 31
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 31 Mid-Term Management Plan 2027 Toward Year 2: Business Environment Analysis (Overseas Business) Ireland and Australia Ireland : Under the "Housing for All" initiative, pre-planning activities are increasing. Despite there are land supply restrictions, the medium-term outlook for residential sector is positive, with the economy expected to grow by 2-3%. Australia : While residential market is partially recovering, the outlook for the healthcare sector remains uncertain as government funds are flowing to infrastructure. United Kingdom The macro environment is favorable with declining interest rates and inflation; however, the overall industry remains challenging with shrinking commercial and residential markets and competitors implementing restructuring. Commercial activity has dropped approximately one-third from pre- pandemic levels, and the residential sector was affected by increased costs due to tightened regulations Meanwhile, investment in the infrastructure sector is growing due to increased government spending Asia and Africa While budget of JICA has been decreasing, there is a shift toward funding through multilateral organisations, such as ADB and World Bank Group, and private-sector co-financing. Demand for various types of infrastructure, such as transportation, energy and water infrastructure, is further increasing. In addition, there is a strong need to address climate change. ● Overview of market outlooks and growth opportunities by sector in key regions of our overseas business
Page 32
32 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 33
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 33 （JPY million） 項 目 第63期 （2025年）Results 第64期 （2026年）Plan Change(%) (YoY) MTMP 2027 Target Consolidated Orders Received 109,701 105,000 -4.3％ - Sales 101,038 105,000 ＋3.9％ 110,000 Operating Income 9,136 10,500 ＋14.9％ 12,000 Operating Income Margin 9.0% 10.0% ＋1.0pt 11% Ordinary Profit 9,350 10,500 ＋12.3％ - Net Income Attributable to Owners of the Parent 5,952 7,000 +17.6% - Net Income per Share JPY 214.45 JPY 256.05 - - Annual Dividends (Dividends Payout Ratio) JPY 75(35.0%) JPY 78(30.5%) - - (Over 30%) Non- Consolidated Orders Received 62,760 62,000 -1.2％ - Sales 60,969 62,000 +1.7% Ordinary Profit 8,947 9,600 +7.3% - Net Income 5,908 6,700 +13.4% - 64th Term（2026）Management Plan ● Increase both non-consolidated and consolidated sales and profits to secure achieving the Mid -Term Management Plan 2027
Page 34
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 34 （JPY million） FY2025 (63rd Term) Results FY2026 (64th Term) Plan Change(%) (YoY) Orders Received 72,411 72,000 -0.6% Sales 69,724 72,000 +3.3% Operating Income 8,611 9,800 +13.8% OI Margin 12.4％ 13.6％ +1.2pt 64th Term（2026）Management Plan： By Segment 項 目 FY2025 (63rd Term) Results FY2026 (64th Term) Plan Change(%) (YoY) Orders Received 37,290 33,000 -11.5% Sales 31,313 33,000 +5.4% Operating Income 543 700 +28.7% OI Margin 1.7％ 2.1％ +0.4pt Overseas Business • Aim to increase Sales by ensuring management of the order backlog from large Orders Received in the previous period • Aim to increase Operating Income by reducing cost ratio and SG&A expenses ratio Domestic Business ・Aim to increase Sales by increasing the number of employees and improving productivity ・Aim to increase Operating Income by reducing cost of sales ratio and SG&A expenses ratio （ JPY million ） For more information on our efforts to increase Operating Income, please contact Please refer to page 41 ● Increase both Domestic Business and Overseas Business sales and profits to secure achieving the Mid-Term Management Plan 2027
Page 35
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 35 64th Term（2026）Management Plan：Basic Policy Priority Themes１ Accelerate Business Portfolio Transformation Ensure that the significant progress made in portfolio transformation in 2025 translates into tangible results, and clearly advance selection and concentrate of business. ・ Strengthen competitiveness of Core Businesses In response to an increasingly competitive environment, develop proposals that ensure a high win rate and develop and assign engineers capable of winning projects strategically in the market. ・Strengthen the foundations of Growth Areas We will secure clients trust and solidify market position to ensure this year’s high growth is not merely a passing phase. ・Accelerate growth in New Business Areas Leverage CTIE’s sales capabilities and group collaboration to plan growth on an accelerated trajectory. ・Improve profitability of Overseas Business CTII: Improve utilisation rate by securing internal orders. Waterman: Promote integration of UK operations and strengthen PM and financial management Key issue 02 Key issue 03 Slogan for 2026 “Accelerate Transformation, Drive Growth” Accelerate the transformation realised in 2025 and evolve it into sustainable growth Priority Theme２ Key issue 02 ・Achieve both reduced workloads and qualitative growth ・ Strengthen strategic communication ・ Enhance human resource development Increase the Employee Engagement Ranking Priority Themes3 Priority Themes 4 Key issue 01 Key issue 06 ・ Strengthen profitability by improving productivity through technical excellence, enhanced PM, and operational efficiency ・ Integrate AI as a core tool into daily technical and administrative operations to achieve both process innovation and quality improvement Improve productivity through quality and production system reforms ・ Strengthen internal control and monitoring systems ・ Develop an organisational structure to maximize group synergies ・ Enhance monitoring of SG&A expenses ・ Establish investment discipline for domestic and international projects based on the cost of capital Enhance group governance for both offensive and defensive strategies Key issue 01 Kei issue 05 Key issue 07 Key issue 04
Page 36
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 36 ● ROE for FY2025 was 9.3%, exceeding the Cost of Equity and resulting in a positive equity spread. However, it declined YoY dueto lower profit margins and the impact of extraordinary losses. ● Achieved steady improvement in profitability through growth investments. While maintaining a balance between growth investment and shareholder returns based on capital efficiency and financial soundness, we aim to further enhance ROE. ROE and the Cost of Equity 64th Term（2026）Management Plan： Toward achieving ROE of 12% or more risk-free rate Beta (β) sensitivity risk premium The Cost of Equity (%) in FY25/12 ＋ × 8%= the Cost of equity Calculated by CAPM 0.0 5.0 10.0 15.0 20.0 2020 2021 2022 2023 2024 2025 2026 2027 ROE(％） 株主資本コスト Mid-Term Management Plan 2027 Targets 12% or more Toward achieving ROE of 12% or more Investment for growth ・ Accelerate Business Portfolio Transformation and shift resources to Growth Areas ・ Leverage internal investments (human resources, R&D, DX) and external investments (M&A, alliances) Profitability improvement ・ Expand high-margin business focused on Growth Areas ・ Improve operational efficiency and productivity through DX promotion ・ Reduce SG&A expenses ratio similar to 2024 Capital efficiency improvement ・ Consider the flexible use of debt financing depending on investment projects and cash position ・ Improve capital efficiency through the flexible use of dividends and share buybacks the Cost of Equity
Page 37
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 37 Domestic Business Reduction of cost of sales ratio ⇩ ・ Strengthen technical expertise and PM capabilities ・ Business Portfolio Transformation (Shifting to high-margin areas) ・ Automation and productivity improvement through DX ・ Accelerate Group PMI Reduction of SG&A expenses ratio ⇩ ・ Reduction of non-productive work ・ Automation and productivity improvement through DX ・ Strengthen internal investment governance 9,136 10,500 +13% more +157 +28% more 64th Term（2026）Management Plan： Roadmap to higher Operating Income 2025 Operating Income results 2026 Operating Income results Overseas Business Reduction of cost of sales ratio and SG&A expenses ratio ⇩ • Improve utilisation rates CTII ・Strict cost management ・Collaboration and technical cooperation with CTIE ・Expand orders from multilateral institutions (ADB, World Bank, etc.) Waterman ・Integration of consulting businesses in the UK ・Enhance contract and project management • Streamline administrative operations （JPY billion） Operating Income+1,364 ● Domestic Business：Aim to increase profit by reducing cost of sales and SG&A expenses ratio ● Overseas Business : Reduce cost of sales and SG&A ratios by improving utilisation rates and streamlining administrative operations
Page 38
38 CONTENTS ・FY2025 (63rd Term) Financial Results ・Progress of the Mid-Term Management Plan 2027 ・FY2026 (64th Term) Management Plan ・Appendix - Summary of Year 1 of the Mid-Term Management Plan - Analysis of the Business Environment for Year 2
Page 39
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 39 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) Number of subsidiaries 36 companies Listing market Tokyo Stock Exchange Prime Market Total number of issued shares 28,318,172 shares
Page 40
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 40 Infrastructure developments are carried out mainly by three parties: (1) national and local governments, (2) construction consultants, and (3) construction companies. For "national and local governments" that decide projects and make plans, We " Civil Engineering Consultants " provide specific surveys, plans, designs, etc. as a partner. Carried out by three parties Environmenta l 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. Civil Engineering Consultants are a vital part of social infrastructure development. We coordinate the entire infrastructure development project from start to finish. Design Budget Role of Civil Engineering Consultants
Page 41
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 41 Define a project Plan Survey Design Construction Work Construction management Maintenance management The role of civil engineering consultants is to provide consulting on specific surveys, plans, designs, etc. to national and local governments, which make decisions on projects and make plans. We undertake almost all the work flow, but in accordance with the "principle of separation of design and construction," the construction company is responsible for the construction part. During the postwar period, the Ministry of Construction (now the Ministry of Land, Infrastructure, Transport and Tourism) clarified the principle of separation of design and construction. Construction consultant Construction consultant General contractors and manufacturers Flow of infrastructure development Principle of separation of design and constructionConstruction consultants are involved in all stages of a project, from the initial planning by the national and local governments to planning, design, construction management, and maintenance and management after completion. Infrastructure Development Design Construction Civil Engineering Consultants General contractors and manufacturers Clearly separated Business process of Civil Engineering Consultants
Page 42
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 42 Previous year Current 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 - Evaluated by clients - Award for engineers → Accumulated in technician ID Evaluation by clients Technological assets Final products Payment Civil Engineering Consultants 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. The ends of projects period tends to concentrate at the end of the fiscal year (March) ➢ Project teams: Consists of 5-6 engineers. As a team leader, Professional Engineer certification is required Project team Basic flow of Civil Engineering Consultants Technological assets
Page 43
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 43 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 systems Flat/ 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
Page 44
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 44 (JPY million） (Reference Data) Quarterly Sales Amounts and Operating Income (Consolidated) 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 4Q 2021 2022 2023 2024 2025 売上高 営業利益 The Adoption of Accounting Standard for Revenue Recognition Sales Operating Income 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)
Page 45
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 45 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. Transformatio n 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
Page 46
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 46 「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: 4,087 Sales : JPY 101.0billion 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 2025
Page 47
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 47 36.7 41.0 44.3 48.5 51.3 57.4 59.4 60.9 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 1,752 Transition of Sales/Operating Income/Number of engineers（Non-consolidated） Sales(Non-Consolidated) （JPY billion） Number of Engineers (people) By increasing human resources, we achieved sustainable expand of Sales.
Page 48
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 48 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. Environment al 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
Page 49
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 49 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.
Page 50
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 50 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 Based on the Public Sector Industry Leader Order Received in the River Sector Professional Engineers with Advanced Technical Skills 44% 7% 40% 9% Former Public Corp/Fdn. Local Gov. Private Government Order Received Amount by Source(FY 2025)
Page 51
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 51 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. 40％ Private, etc. 9％ 44% Order Received Amount by Source (2025) Proposal Comprehensive Evaluation Government Negotiated Contracts 17％ Price Competition 24% 38% Order Received Amount by Contract Method (2025) 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
Page 52
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 52 The Company's (non-consolidated) business fields consist of the following four business divisions. ▮63rd (2025) Period Orders Composition Ratio (Domestic) Business fields of Domestic Segment 35％ 33％ 24％ 8％ 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 & Telecommunications Technology / Disaster Mitigation / Environment / Geo-environment Public Procurement Assistance / Construction Management & Execution Management
Page 53
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 53 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: Top 10 companies extracted from "Nikkei Construction" April 2024 Construction Consultant Financial Ranking 2024 ("NikkeiConstruction")
Page 54
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 54Source: Top 10 companies extracted from "Nikkei Construction" April 2024 Construct ion Consult ant Financial Ranking 2024 ("NikkeiConst ruct ion") (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
Page 55
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 55 We are expanding globally with two subsidiaries, Waterman and CTI International Consolidated Group Company (Overseas) 85% 63rd Term (2025) Composition of Overseas Segment Sales United Kingdom, Ireland, Australia History Business Outline Business Area 15% 81% 63rd Term (2025) 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
Page 56
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 56 Achievement Rate 100.7% Achievement Rate 97.9% Achievement Rate 97.8% Sales Trends (GBP) 85% 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 • 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 (Unit: ％) 96.4 102.0 97.1 117.2 127.1 134.6 130.9 134.6 29.9 34.3 43.9 47.6 45.6 47.8 49.8 50.3 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2018年 2019年 2020年 2021年 2022年 2023年 2024年 2025年 民間・公共合計 全体に占める公共の比率
Page 57
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 57 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.
Page 58
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 58 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. 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
Page 59
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 59 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.
Page 60
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 60 (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 FY2025Background: - 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 FY2025 Supplementary Budget ： Ministry of Land, Infrastructure, Transport and Tourism Allocation: JPY 2.1 trillion（ 9.1% increase from the previous year ） Of which, the first-year allocation for the First Medium-Term Plan for National Resilience : JPY 1.2 trillion (Cabinet Decision: November 28, 2025) Source: First Medium-Term Plan for the Implementation of National Land Toughening Measures, Cabinet Secretariat
Page 61
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 61 ● Unit rate for consulting engineers: Uniform nationwide rates used for estimating costs in design, surveying, and geological consulting services commissioned by the Ministry of Land, Infrastructure, Transport and Tourism. These rates are established based on annual salary surveys ● FY2025 Figures : The simple average across all job categories was JPY 49,570, 5.7% increased from the previous fiscal year ▮Source by MLIT Mid-Term Management Plan 2027 Appendix : External Environment (Consulting engineer unit rate) 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 rate for consulting engineers JPY
Page 62
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 62 Improve ROE PBR improvement ● By steadily implementing the Mid-Term Management Plan, which focuses on business portfolio reform and reconstruction of the foundation for growth, and by conducting management aimed at improving capital efficiency . Aim to achieve ROE target + improve PER → improve PBR Increase in PER Realization of Profit Growth ・ Aim for EPS growth of 10% or more through business portfolio transformation and growth investment Improving Capital Efficiency ・ Reduction of cross-shareholdings (aim 1/2 by 2027 and zero by 2030) ・ Investment management applying hurdle rates based on the cost of capital ・ Use of financial liabilities with financial discipline in mind Return to Shareholders ・ Consolidated dividend payout ratio of 30% or more ・ Stable dividend (basic policy of 3% DOE for mid-term plan 2027) ・ Based on the progress of growth investment, aim for a total return ratio of around 35-50% Sustainability Management Governance ・ Build a strong corporate governance structure that is both proactive and defensive ・ Strengthen human capital initiatives and enhance disclosure ・ Promoting the CTI Engineering Group Challenges for Sustainability Plan Communication With Shareholders and Other Investors ・ Enhance disclosure of financial and non-financial information to highlight the features and appeal of the Company ・ Analyze the content of dialogues, grasp the market evaluation, and give feedback to management ● ● ● ● ● ● ● ● ● ROE target of 12% or more Increase in expected growth rate Cost of capital reduction → Reduce the cost of equity Action for management that is Conscious of Cost of Capital and Stock Price （ Mid-Term Management Plan 2027 ： Announced on February 14, 2025）
Page 63
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 63 Action for management that is Conscious of Cost of Equity and Stock Price ： Progress in 2025 ● Specific results and future strategies for improving ROE and PER are as follows ● Further accelerating our initiatives toward driving PBR growth by achieving ROE targets and improving PER Action Items and Directions Progress in 2025 Future Actions ・ Aim for EPS growth of 10% or more through business portfolio transformation and growth investment ・ Achieved Business Portfolio Transformation and Sales growth under the Mid-Term Management Plan 2027 ・ No execution of M&A deals following investment criteria review ・ Negative EPS growth ・ Deliver steady profit growth through the execution of our growth strategies ・ Conduct a further scrutiny of the business environment to improve profitability by accelerating Business Portfolio Transformation and DX promotion ・Reduce the SG&A expenses ratio ・Reduction of cross-shareholdings (Aiming to reduce by half by 2027 and zero by 2030) ・ Reduced by approximately 20% in accordance with the plan ・ Aiming to reduce cross- shareholdings by half by 2027, we will continue to further decrease our positions ・ Investment management applying hurdle rates based on the cost of equity ・ Established basic policies for investment decision criteria and management rules for M&A and business investments ・ Set target returns for each investment objective ・ Decided to acquire treasury stock as there were no growth investment implementation ・ Implement and monitor investment activities in accordance with the basic policy ・ Utilisation of financial debt with a focus on financial discipline ・ Close communication with financial institutions ・ Consider flexible utilisation of financial debt depending on investment opportunities and cash positions Realisation of profit growth Improvement of capital efficiency
Page 64
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 64 Action Items and Directions Progress in 2025 Future Actions ・ Consolidated dividend payout ratio of 30% or more ・ Dividend per share : JPY 75 ・ Dividend payout ratio : 35.0% ・ Continue to implement shareholder returns with a dividend payout ratio of 30% or more as minimum ・ Flexibly implement additional returns to aim for a target CAGR 2024-2027 of 10% or more ・ Stable dividends (Basic policy: DOE of 3% during the Mid-Term Management Plan 2027 period) ・ DOE：3.2% ・ Implement shareholder returns with a target total payout ratio of approximately 30-35%, based on the progress of growth investment ・ Total payout ratio：45.4% ・ Currently executing acquisition of treasury shares up to JPY 1.5 billion or 700,000 shares (Acquisition period: From November 2025 to April 2026) ・ Establish a strong group governance for both offensive and defensive perspectives ・ Organisational reform implemented. Audit Office and Legal & Compliance department moved to under direct supervision of the President ・ Established Corporate Governance Committee to improve the effectiveness of the Board of Directors ・ Foster a thorough risk and compliance awareness, aiming for zero incidents of serious misconduct ・ Strengthen and enforce internal control systems across the group companies ・ Strengthen human capital initiatives and enhance disclosures ・ Enhanced disclosure in the Integrated Report 2025 ・ Further enhance disclosure by referencing best practices from other companies ・ Promote the CTI Engineering Group Challenges for Sustainability Plan ・ Achieved JPY 36.4 billion in Sales for climate change-related services ・ GHG emissions are currently being calculated ・ Achieve 45% reduction by 2027 ・ Enhance disclosure of both financial and non-financial information to promote our company strengths ・Strengthen IR and SR activities ・ Enhance opportunities for dialogue with investors ・ Provide continuous feedback to management・ Analyse the content of dialogues to understand market perceptions and provide feedback to management Shareholder returns Sustainability Governance Communication with Shareholders and Investors Refer to next page for details of initiatives Action for management that is Conscious of Cost of Equity and Stock Price ： Progress in 2025
Page 65
Copyright © 2025 CTI Engineering Co., Ltd. All Right Reserved. 65 ● Actively approaching institutional and individual investors as outlined below ● Opinions obtained through dialogue with investors are regularly reported to the Board of Directors to discuss actions and reflect future IR activities Action for management that is Conscious of Cost of Equity and Stock Price ： Communication with shareholders and Investors ・ Selected as a constituent of the JPX-NIKKEI Mid and Small Index (for one year from August 2025) Status of Dialogue with investors and shareholders (Annual Total) Main Representatives from the Company Institutional investor interviews CEO・Director in charge of IR Financial Results Briefing CEO Briefing for individual investors Director in charge of IR IR event CEO・Director in charge of IR Key topics and shareholders interests • Details of Mid-Term Management Plan 2027 • Constructing engineer industry, market environment • Our business model, strengths and business portfolio • Overseas Business Strategy • M&A Policy • Capital allocation • Dividends policy • Orders received for work related to water supply and sewage and the Ministry of Defense Feedback to management ・ Report the results of IR and SR activities to the Board of Directors 2-4 times a year ・ Discussing and considering countermeasures for feedback from investors and shareholders and implementing them to the greatest extent possible. Examples of results of dialogue with institutional investors and shareholders ・ Disclosure of financial results briefing transcripts and Q&A summaries (Japanese/English) ・ Publication of the Integrated Report (Japanese/English) ・ Same-day English disclosure for all key filing documents ・ Information dissemination utilising the PR tools of TSE TDnet ・ Disclosure of Capital Allocation ・ Disclosure of Investment Policy ・ Execution of a stock split （Common stock split from 1 share to 2 shares ） Inclusion in Index structure Internal Financial Results Briefing CEO Disclosure Capital Policy stock SR Interview Director in charge of IR・IR/SR staff Institutional investors and analysts: 57 times (58 times in the previous year) Opportunities for dialogue with individual investors (excluding the General Meeting of Shareholders) : March: Individual investor information session September: Nikkei & TSE IR Fair
Page 66
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 . 66
Page 67
Copyright © 2025 CTI Engineering Co., Ltd. All Rights Reserved. 6767 Disclaimer • Any forward-looking statements as part of information disclosed by the Company, such as (but not restricted to) information pertaining to future plans, outlooks, management strategy, etc., are based on the information available at the time of disclosure and/or on certain assumptions deemed reasonable. • As such, these contain risks and uncertainties related to changes in the state of the economy, government policies impacting the Company’s businesses, changes to the tax code and/or other regulatory changes and/or in the International status quo. • Realized results may differ materially from the aforementioned forward-looking statements, due to a variety of factors and causes. Nihombashi Hamacho F Tower, 3-21-1 Nihombashi Hamacho, Chuo-ku, Tokyo, Japan(TSE Prime 9621) Tatsuya Nishimura, Representative Director and President, CEO Contact: Toshikazu Matsuoka, Managing Executive Officer TEL : 03-3668-4125
Page 68
63rd term (2025) Financial Results 〔Supplementary Data〕 CTI Engineering Co.,Ltd..
Page 69
1. Order Status (Non-consolidated) (1) Orders received by month （単位：百万円未満切捨、％） (JPY million, rounded down to the nearest million, %) Item Our company 2023 2024 2025 Month Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Jan. 2,468 -5.1 2,725 10.4 2,281 -16.3 22,746 -0.9 26,720 17.5 25,926 -3.0 Feb. 3,166 -9.3 2,977 -6.0 2,645 -11.2 38,771 18.8 38,410 -0.9 37,297 -2.9 Mar. 11,106 14.8 9,046 -18.5 10,156 12.3 81,481 7.7 94,586 16.1 90,119 -4.7 Apr. 9,851 10.3 9,230 -6.3 10,888 18.0 89,173 2.7 95,812 7.4 108,100 12.8 May. 4,571 -7.2 4,985 9.1 4,812 -3.5 54,842 10.5 56,577 3.2 58,288 3.0 Jun. 5,562 8.7 5,010 -9.9 6,242 24.6 77,547 4.1 81,440 5.0 86,964 6.8 Jul. 4,279 -0.2 6,170 44.2 7,310 18.5 70,025 10.4 81,564 16.5 86,235 5.7 Aug. 3,615 4.0 4,795 32.6 3,716 -22.5 62,736 22.7 59,303 -5.5 50,175 -15.4 Sept. 3,603 24.6 4,567 26.7 5,317 16.4 54,777 3.6 60,394 10.3 62,378 3.3 Oct. 3,431 74.1 4,143 20.7 3,534 -14.7 46,626 15.9 48,248 3.5 46,760 -3.1 Nov. 1,823 11.7 1,986 9.0 3,174 59.8 33,962 6.9 33,303 -1.9 37,855 13.7 Dec. 1,451 -34.7 2,310 59.2 2,680 16.0 36,562 2.5 34,013 -7.0 35,018 3.0 (Note) Source: "Dynamic Survey of Construction-Related Industries, etc. (50 consulting engineering companies)" published Ministry of Land, Infrastructure, Transport and Tourism, December 2025 (2) Cumulative Orders Received （単位：百万円未満切捨、％） (JPY million, rounded down to the nearest million, %) Item Our company 2023 2024 2025 Month Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) Jan. 2,468 -5.1 2,725 10.4 2,281 -16.3 22,746 -0.9 26,720 17.5 25,926 -3.0 Feb. 5,635 -7.5 5,702 1.2 4,926 -13.6 61,517 10.7 65,130 5.9 63,223 -2.9 Mar. 16,741 6.2 14,749 -11.9 15,083 2.3 142,998 9.0 159,716 11.7 153,342 -4.0 Apr. 26,592 7.7 23,980 -9.8 25,971 8.3 232,171 6.5 255,528 10.1 261,442 2.3 May. 31,164 5.2 28,965 -7.1 30,783 6.3 287,013 7.2 312,105 8.7 319,730 2.4 Jun. 36,726 5.7 33,975 -7.5 37,026 9.0 364,560 6.5 393,545 8.0 406,694 3.3 Jul. 41,005 5.1 40,146 -2.1 44,336 10.4 434,585 7.1 475,109 9.3 492,929 3.8 Aug. 44,621 5.0 44,942 0.7 48,052 6.9 497,321 8.9 534,412 7.5 543,104 1.6 Sept. 48,224 6.2 49,509 2.7 53,370 7.8 552,098 8.3 594,806 7.7 605,482 1.8 Oct. 51,656 9.0 53,652 3.9 56,905 6.1 598,724 8.9 643,054 7.4 652,242 1.4 Nov. 53,479 9.1 55,639 4.0 60,079 8.0 632,686 8.8 676,357 6.9 690,097 2.0 Dec. 54,930 7.2 57,949 5.5 62,760 8.3 669,248 8.4 710,370 6.1 725,115 2.1 * Reference data: Consolidated Orders Received (JPY million, rounded down to the nearest million, %) 2023 2024 2025 Amount Change (YoY) Amount Change (YoY) Amount Change (YoY) 92,473 7.7 94,400 2.1 109,701 16.2Full Year (January to December) 2023 2024 2025 Consulting Engineering (50 companies) (Note) 2023 2024 2025 Consulting Engineering (50 companies) (Note) - 1 -
Page 70
(Note) Source: "Dynamic Survey of Construction-Related Industries, etc. (50 consulting engineering companies)" published Ministry of Land, Infrastructure, Transport and Tourism, December 2025 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2025 2024 2023(JPY million) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2025 2024 2023(JPY million) Cumulative Orders Received Consulting Engineering (50 companies) Cumulative Orders Received (Non-Consolidated) - 2 -
Page 71
(3) Orders Received of Proposals and Comprehensive Evaluation bid (Non-Consolidated) (Items,%) FY 2023 2024 2025 (2023.1 to 12) (2024.1 to 12) (2025.1 to 12) Number of cases audited 2,243 2,391 2,764 Number of selected 996 1,011 1,037 Selected orders received rate 44.4% 42.3% 37.5% 2,243 2,391 2,764 996 1,011 1,037 44.4% 42.3% 37.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 0 500 1,000 1,500 2,000 2,500 3,000 2023 2024 2025 （％） Number of cases audited Number of selected Selected orders received rate Orders received in engineering competitionItems - 3 -
Page 72
2. Results by Business Sector (Consolidated) (JPY million, rounded down to the nearest million, %) FY Business Sector Beginning balance of orders carried forward Orders received change (YoY) Sales Amount Composi tion ratio change (YoY) Gross profit Gross Profit Margin% Balance of orders carried forward Water & Land 15,169 22,323 5.8 23,544 25.3 16.4 8,995 38.2 14,644 Transportation & Urban 13,675 19,427 4.2 19,976 21.6 4.4 5,297 26.5 13,568 2023 Environmental & Social 8,608 15,244 1.0 16,229 17.4 11.3 4,932 30.4 7,689 Construction Mgmt. 2,274 5,165 54.1 4,723 5.0 12.2 1,855 39.3 2,953 Overseas 25,034 30,312 9.4 28,583 30.7 12.9 5,979 20.9 26,497 Total 64,761 92,473 7.7 93,057 100.0 11.5 27,060 29.1 65,353 Water & Land 14,644 23,691 6.1 24,919 25.6 5.8 9,598 38.5 13,579 Transportation & Urban 13,568 21,417 10.2 21,001 21.5 5.1 5,586 26.6 13,614 2024 Environmental & Social 7,689 16,472 8.1 16,361 16.7 0.8 4,941 30.2 7,672 Construction Mgmt. 2,953 4,142 (19.8) 4,662 4.7 (1.3) 1,645 35.3 2,341 Overseas 26,497 28,676 (5.4) 30,733 31.5 7.5 6,656 21.7 25,419 Total 65,353 94,400 2.1 97,678 100.0 5.0 28,427 29.1 62,626 Water & Land 13,905 25,441 7.4 25,542 25.3 2.5 9,312 36.5 13,979 Transportation & Urban 13,940 23,561 10.0 22,158 21.9 5.5 6,295 28.4 15,554 2025 Environmental & Social 7,835 17,391 5.6 16,850 16.7 3.0 5,081 30.2 8,562 Construction Mgmt. 2,341 6,015 45.2 5,173 5.1 10.9 1,891 36.6 3,104 Overseas 25,419 37,290 30.0 31,313 31.0 1.9 7,000 22.4 31,031 Total 63,442 109,701 16.2 101,038 100.0 3.4 29,580 29.3 72,231 (Forecast [FY2026]) (JPY million, rounded down to the nearest million, %) FY Business Sector Beginning balance of orders carried forward Orders received change (YoY) Sales Amount Composi tion ratio change (YoY) Gross profit Gross Profit Margin% Balance of orders carried forward Water & Land 13,979 25,600 0.6 25,100 24.0 (1.7) 9,200 36.7 14,479 Forecast Transportation & Urban 15,554 23,600 0.2 23,500 22.4 6.1 7,200 30.6 15,654 2026 Environmental & Social 8,562 18,100 4.1 17,900 17.0 6.2 5,600 31.3 8,762 Construction Mgmt. 3,104 4,700 (21.9) 5,500 5.2 6.3 2,000 36.4 2,304 Overseas 31,031 33,000 (11.5) 33,000 31.4 5.4 7,000 21.2 31,031 Total 72,231 105,000 (4.3) 105,000 100.0 3.9 31,000 29.5 72,231 [Disclaimer] These presentation materials contain forward-looking statements concerning plans, forecasts, corporate strategies, etc., and reflect information available to the company at the time this results presentation was published and are based on assumptions deemed reasonable by management. In light of the uncertainties inherent in these judgements and assumptions – resulting from possible changes in the overall economic climate, government policies affecting our business, changes to the tax code and in other policy areas, changes in the geopolitical climate, etc. – the Company’s actual financial results could differ materially from these forward-looking statements. - 4 -