Business Status Report for FY2025 (March 2026)

Impact of Middle East Situation on Our Business and Response Measures

Although geopolitical risks in the Middle East and increasing uncertainty due to sanctions and diplomatic developments have heightened, there has been no physical damage to ongoing projects (Qatar NFE, Middle Eastern oil and petrochemical projects), and material and equipment deliveries via air and land continues, with work resuming sequentially. The impact on FY2026 results is minimal, and it is difficult to quantify a reasonable impact amount on the forecast for March 2027. As a risk management measure, an emergency response headquarters was established on March 2 to monitor local conditions daily and respond accordingly.

Progress of Management Plan 2025 and Order Status

The FY2025 target of the Mid-term Management Plan 'Management Plan 2025' includes steady execution of existing large overseas projects, reform of the overseas project order acquisition system, expansion of domestic project profitability, enhancement of business co-creation, and development of core personnel. The order intake for FY2025 reached 298 billion yen, meeting the initial forecast, with an outlook of 300 billion yen for FY2026. Although the order backlog at the end of March 2026 decreased to 613.1 billion yen from the previous period, it has been progressing in line with the average order backlog target over the plan period.