To Our Shareholders and Investors

We would like to thank all of our shareholders and investors for your continued support.
In FY2024, the Japanese economy continued its gradual recovery, supported by a recovery in external demand and inbound consumption, as well as strong corporate earnings. As for construction demand, in addition to firm public investment, a high level of capital investment in large-scale redevelopment projects, production facilities, and data centers is robust, while on the supply side, construction costs, including construction materials, energy prices, and labor costs, continue to rise.

Under these circumstances, the Group's net sales of the previous fiscal year was 1,944.3 billion yen due to a decrease in completed construction and real estate and other. Operating income was 71.0 billion yen, and ordinary income was 71.6 billion yen, mainly due to an increase in gross profit on completed construction, reflecting a recovery in the profitability of domestic construction projects, despite a decrease in gross profit on real estate and other. Net income attributable to shareholders of the corporation was 66.0 billion yen as a result of extraordinary gains, including a gain on sales of fixed assets resulting from the sale of security holdings.
While we continue to make strict decisions on order, we are also taking thorough measures such as negotiating with customers in advance to obtain their approval for price pass-on or contract modification in the event of price or construction schedule changes, which has led to a steady improvement in the profitability of orders received and construction in progress.

Although we have experienced great hardship over the past several years, we are now making steady progress in strengthening our management foundation under our Mid-Term Business Plan〈2024－2026〉, which was launched in fiscal 2024. Our business performance continues to recover, and I have been appointed to take the leadership in the management of our company in the midst of this trend.
The core principles of our company's management will not change just because we have a new president. My first task is to further strengthen the management foundation based on our Mid-Term Business Plan〈2024－2026〉, and to ensure the sustainable growth of the Group toward the realization of our long-term vision, SHIMZ VISION 2030. And we believe that the starting point is to establish the Shimizu brand by returning to our origins.
The mainstay of our business is the construction business, and we will go back to our origin once again to establish the Shimizu brand by thoroughly focusing on safety, quality, cost and process to strengthen our competitive edge.

Although our current business performance is recovering, it has not yet reached the level it was before the Covid-19 pandemic, and we are still halfway to a full-fledged recovery of our business performance. Going forward, we will continue to mobilize the power of the Shimizu Group to achieve sustainable growth and enhance our corporate value.