Development of the Medium-Term Management Plan 2026 (Fiscal Year 2026 to 2028)

Overview of the Medium-Term Management Plan

Nittoku Construction Co., Ltd. has formulated the Medium-Term Management Plan 2026 covering three years from fiscal year 2026 (ending March 2027) to fiscal year 2028. In past medium-term plans, the focus was on scale expansion through capital investment and shareholder returns. However, issues such as large fluctuations in performance and human resource acquisition challenges have become apparent. Therefore, this plan places emphasis on ‘investment in human capital’ and aims to establish a structure and capability that can steadily generate profits and continue growth. With increasing demand driven by infrastructure reinforcement for national resilience and large-scale repairs of aging infrastructure, the company will strengthen on-site capabilities to achieve sustainable and stable growth.

Main Goals and Strategies

Financial targets include an average sales of over 81.5 billion yen and operating profit of over 5.7 billion yen over three years, with fiscal year 2028 targets of ROIC and ROE both at 10% or higher, PBR of 1.5 times or higher, and an EBITDA of 6.0 billion yen (average over 3 periods). Business strategy will leverage the company's 80% share of domestic dam construction technology, strengthening areas such as slope work, foundation and ground improvement, and renovation work, while also exploring and establishing new businesses. To enhance human capital, efforts will focus on developing 'autonomous human resources,' promoting DX, and strengthening the management foundation. Shareholder returns will continue with progressive dividends, maintaining current dividend payout ratios (DOE).