Financial Highlights

Analysis of Operating Performance and Financial Position

Summary of Business Results for FY2023

In FY2023, the Japanese economy showed a moderate recovery due to the normalization of social and economic activities and the resumption of inbound demand. On the other hand, the global high prices of commodities and monetary tightening in various countries, as well as the prolonged crisis in Ukraine and other instability in the international situation, had a broad impact on business activities and people's lives.
In the construction industry, public investment remained firm and private capital investment showed signs of picking up. On the supply side, however, the business environment remained challenging due to the impact of high prices for construction materials and energy and rising labor costs.
Under these circumstances, the Group's net sales increased 3.7% from the previous fiscal year to 2,005.5 billion yen due to an increase in completed construction contracts and development business and other sales.
As for profits, operating income was a loss of 24.6 billion yen (a gain of 54.6 billion yen in the previous year) and ordinary income was a loss of 19.8 billion yen (a gain of 56.5 billion yen in the previous year), mainly due to a decrease in gross profit on completed construction contracts as a result of the provision for loss on construction contracts due to a significant deterioration in profitability of several large-scale construction projects in Japan and overseas. Net income attributable to shareholders of the parent company decreased 65.0% from the previous period to 17.1 billion yen due to the recording of extraordinary gains, including a gain on sales of fixed assets resulting from the sale of stock holdings.

Forecast for FY2024 (Revised on 11/12/2024)

The forecast for net sales has been revised to 1,860.0 billion yen (up 60.0 billion yen from the previous forecast), mainly due to an expected increase in the completed construction contracts as a result of steady progress in domestic building construction projects.Operating income is estimated to be 56.0 billion yen (an increase of 15.0 billion yen from the previous forecast) due to an expected increase in gross profit on completed construction contracts, mainly due to improved profitability of on going construction projects in the domestic building construction and civil engineering works. Ordinary income has been revised to 54.0 billion yen (up 13.0 billion yen from the previous forecast).
In addition, based on the new reduction target announced today, we expect an increase in special gains (gain on sales of investment securities) as a result of more aggressive sales activities of security holdings, resulting in net income of 60.0 billion yen (a 20.0 billion yen increase from the previous forecast).