Supplementary Explanation Materials for Q3 Fiscal Year Ending March 2026

Business Performance Overview

Consolidated order intake for Q3 of the fiscal year ending March 2026 was JPY 41,623 million, down 20.9% YoY due to restrained orders for large-scale projects despite a favorable order environment. On the other hand, net sales increased 10.7% YoY to JPY 40,931 million driven by progress in large projects, while operating income rose 24.9% YoY to JPY 3,697 million thanks to a profitability-focused policy. Net income attributable to owners of the parent increased 36.5% YoY to JPY 3,185 million, and ordinary income also grew 26.6% YoY to JPY 4,342 million.

Segment Order and Sales Trends

Order intake in the construction business decreased 21.2% YoY to JPY 41,169 million, while net sales in the commercial facility operations segment increased 18.7% YoY to JPY 454 million. Though order intake in the HVAC and sanitary sectors fell 32.9% YoY to JPY 24,522 million, the electrical and telecommunications sector saw a 19.3% increase to JPY 7,735 million. Net sales in the construction business rose 10.6% YoY to JPY 40,476 million, and commercial facility operations sales were up 18.7% YoY to JPY 454 million.

Financial Position and Shareholder Returns

Assets increased to JPY 60,208 million with a decrease in cash and deposits due to new plant construction, offset by growth in tangible fixed assets and investment securities. Current liabilities grew to JPY 19,497 million, and net assets stood at JPY 40,782 million. Regarding shareholder returns, the company continued dividend increases targeting a consolidated payout ratio of 30% or higher, implemented a treasury stock acquisition of approximately JPY 4.4 billion in July 2025, and revised the dividend forecast upward from JPY 47 to JPY 56 per share.