Overview of Operating Results, etc.
1． Overview of Operating Results for the Six Months Ended September 30, 2025
The Japanese economy has maintained a gradual recovery trend and, with improved business sentiment, stock prices remain strong, and business confidence shows signs of rebounding. However, risks such as increasing interest rates exist, alongside rising demand for labor and price increases, and the outlook for the Japanese economy remains uncertain.

The business environment in which the Group operates remained challenging. This was due to the cost impact of rising prices of materials and equipment, and soaring labor costs, as well as chronic labor shortages, despite the expectations of brisk capital investment in decarbonized related markets amid the growing need for investment in decarbonization, and in power supply infrastructure to meet growing electricity demand, particularly from new data centers resulting from expanded use of generative AI.

In these circumstances, the Group drew up the FY2024 mid-term management plan (FY2024-FY2026) last year and is addressing key issues based on the basic policy of “creating a strong and flexible Q’d with people at the core.” In the six months ended September 30, 2025, a virtuous investment cycle with people at the core began to generate steady results, achieving a substantial increase in total orders received year-on-year. We will continue working to further expand the order flow and achieve our profit targets.

Especially, in the nuclear power market, as preparations for the implementation of safety measures have progressed toward the resumption of operations at various nuclear power plants, we will work to steadily expand the order flow centered on our specialized organization for wide-area safety measures, which was newly established in April this year. Furthermore, the Substation Construction Department, which was also newly set up, is driving an increase in our share in the market for the installation of new and additional facilities for substations in response to electricity demand at data centers. Moreover, in the general industry market, orders have steadily increased through sales development, leveraging our branches nationwide.

In addition, in order to launch a biogas power generation business in Koshi City, Kumamoto Prefecture, which was announced in June this year, we newly established its construction site office in September and commenced land development and other work. Through this business, we will make efforts to utilize industrial waste as renewable energy and contribute to the solution of regional issues.

As a result, total orders received were ¥51,543 million (up 36.3% year-on-year), owing mainly to the receiving of orders concerning implementation of safety measures at nuclear facilities, tasks related to the decommissioning of the Fukushima Daiichi Nuclear Power Plant, installation of new and additional facilities for substations, projects related to electric furnaces at steel plants toward decarbonization, electrical facility work at public utilities, solar power facilities for on-site power purchase agreements (PPA), and replacement work of public hydroelectric power plants.

Net sales were ¥34,283 million (up 12.3% year-on-year), owing mainly to progress of tasks related to the decommissioning of the Fukushima Daiichi Nuclear Power Plant, installation of new and additional facilities for substations, construction of storage battery-related plants, maintenance and repair work for oil refineries, and installation of new power generation facilities for chemical plants, among others.

The amount carried forward to the next period was ¥138,681 million (up 32.1% year-on-year).

As for profits, operating profit was ¥1,180 million (compared to operating loss of ¥249 million for the same period of the previous fiscal year), as a result of our continued initiative of selective order taking that emphasizes profitability—an effort we have been working on from the previous period—as well as improved profit margins due to a decline in nonconforming or unprofitable work, in addition to an increase in net sales. Ordinary profit was ¥1,391 million (up 470.7% year-on-year). Profit attributable to owners of parent amounted to ¥1,489 million
(up 136.3% year-on-year), due to the recording of extraordinary income from the sale of real estate for rent aimed at improving asset efficiency and the sale of cross-shareholdings.

Business results by segment were as follows.

(Facilities Construction)
Total orders received were ¥48,519 million (up 40.2% year-on-year) due to increases in the Green Energy Business Division, Energy Division, and Nuclear Power Division.
Net sales were ¥31,327 million (up 14.3% year-on-year) due to increases in the Energy Division and the Nuclear Power Division.

(Other Businesses)
Total orders received were ¥3,024 million (down 5.3% year-on-year).
Net sales were ¥2,956 million (down 5.0% year-on-year).

2． Overview of Financial Position for the Six Months Ended September 30, 2025
Total assets amounted to ¥102,686 million as of September 30, 2025, a decrease of ¥5,394 million from the end of the previous fiscal year. This was mainly due to a decrease in notes receivable, accounts receivable from completed construction contracts and contract assets.

Total liabilities amounted to ¥32,413 million as of September 30, 2025, a decrease of ¥7,240 million from the end of the previous fiscal year. This was mainly due to a decrease in short-term borrowings.

Net assets amounted to ¥70,272 million as of September 30, 2025, an increase of ¥1,845 million from the end of the previous fiscal year. This was mainly due to an increase in valuation difference on available-for-sale securities.

3． Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated financial results forecast for the fiscal year ending March 31, 2026, announced on May 12,2025, remains unchanged.