Notice Regarding Issuance of New Shares and Secondary Offering

Overview of Capital Policy

This announcement is a material disclosure concerning fundraising through issuance of new shares and secondary offering. The company plans to raise up to approximately 14.7 billion yen, with net proceeds to be applied to repayment of short-term borrowings and, if surplus arises, to strategic M&A and strengthening the financial base. The public offering will be conducted concurrently in domestic and international markets, and a third-party allotment is also being considered. Due to the increase in the number of issued shares, the total number of issued shares is assumed to be 349,845,024 shares. Considerations for shareholders' market liquidity, such as setting lock-up periods, are also described.

Outlook and Use of Proceeds

The primary objective of the fundraising is to strengthen the financial base to support medium- to long-term growth and to expand infrastructure businesses, including areas beyond subcontracting and public-private collaboration. The company intends to accelerate strategic investments including M&A such as the acquisitions of Alrosia Construction Co., Ltd. and Mizuing Co., Ltd., aiming to secure orders in domestic and international markets and expand the business portfolio. Together with maintaining and enhancing shareholder return policies, the company plans to implement a stable capital policy.