I would like to express my sincere gratitude for your continued support.

Although the construction market has maintained an increasing trend through solid capital investment by private companies and solid public investment such as measures for national resilience, the construction industry as a whole is under harsh business conditions where we are actually affected by the construction material costs which are remaining high and upward pressure on construction costs due to tight labor supply and demand.

Despite such conditions, with regard to the rebuilding our domestic building construction business, which is the key to achieving the Medium-Term Business Plan (2024-2026), the Group has focused on passing the price of construction materials on to the contract prices, strengthening the workforces for the performance of the works, and ensuring appropriate construction period, and these efforts are gradually showing results. As a result, our Group's financial results for the current interim consolidated accounting period were net sales of 952.2 billion yen (an increase of 214.1 billion yen <by 29.0%> compared to the same period of the previous year), operating income of 40.5 billion yen (an increase of 27.4 billion yen <by 210.2%> compared to the same period of the previous year), ordinary income of 49.7 billion yen (an increase of 31.4 billion yen <by 171.8%> compared to the same period of the previous year), and net income attributable to owners of parent of 44.8 billion yen (an increase of 29.9 billion yen <by 201.5%> compared to the same period of the previous year).

At the Board of Directors meeting held on November 7, 2024, the Company resolved to repurchase its own shares up to 150.0 billion yen (30.0 million shares). Based on the financial policy of the “TAISEI VISION 2030” Achievement Plan, the Company will accelerate its plan to acquire treasury stock during the period to be covered by the Medium-Term Business Plan (2024-2026), with an upper limit of 150.0 billion yen in additional funds it expects to generate through the implementation of the cross-shareholdings reduction plan (to less than 20% of our consolidated net assets by the end of FY 2026). In addition, comprehensively taking account of business environment in the future, etc., it was resolved to pay the interim cash dividend for the fiscal year of 65.00 yen per share.

With regard to the full-year consolidated business forecast, due to the steady progress in reducing cross-shareholdings, the Company has partially revised the forecast for net sales of 1.99 trillion yen (unchanged), operating income of 87 billion yen (unchanged), ordinary income of 97 billion yen (an increase of 7 billion yen <by 7.8%> from the previous forecast), and net income attributable to owners of parent of 83 billion yen (an increase of 18 billion yen <by 27.7%> from the previous forecast).

Furthermore, with a view to expanding human capital, which is a source of our Group's enhancement of corporate value, our Group will promote various measures such as human capital system reform, strengthening of human capital development plan, and improvement in remuneration. In addition, along with the corporate culture reform activities that started last fiscal year, I will take the lead in efforts to enhance the job satisfaction and well-being of each employee.

In overcoming these challenges, our Group will continue to push forward as a corporate group that continues to gain our stakeholders’ trust through realizing “TAISEI VISION 2030” and enhancing our Group’s corporate value over the medium to long term.

I sincerely appreciate your continued and invaluable cooperation and support.

December 2024
President and Chief Executive Officer,
Representative Director
Yoshiro AIKAWA