Medium-Term Business Plan

“Next Stage 2026”

Year ending September 30, 2024 - Year ending September 30, 2026

Medium-term business plan “Vision 2023” review

1

 Accelerate expansions of M&A focusing on overseas.

1 Advancing research on “Logistics Innovation” and “ThePower of Temporary Construction” to evolve the rental
business with an eye to the future.

“Vision 2023” Targets

 M&A did not proceed, but overseas business remained steady.

2“Vision 2023” Outcome

 “Logistics Innovation” and “The Power of TemporaryConstruction” started demonstration tests.
 Shifted to a holding company structure to speed up
management decision-making in business development.

Vision 2023 Numerical Targets
and Achievements

Net Sales, Operating Income andNet Income of Vision 2023

（billion yen）

Targets（billion yen）

Achievements

Beyond 2020

200.0

14.7

185.6

190.0

Net sales

Vision 2023

15.6
11.3

150.0

9.3

9.7

16.3

19.0

16.3

18.0
15.0

9.1

8.8

100.0

Operatingprofits

13.7

14.8

10.2

12.0
9.0

6.4

6.0
50.0
3.0

53.1

57.0

EBITDA

136.6

153.9

151.2

161.7

170.6

185.6

2018

2019

2020

2021

2022

2023

0.00.0Net Sales (left-hand scale)Operating Sales (right-hand scale)

Net Income（right-hand scale）

1“Next Stage 2026” Outline

2

 Integration of domestic construction machinery rental business andperipheral businesses.

1

2

Evolving theRental Business
into a New
Growth Industry

Promotion ofSustainability
Management

Construction
Logistics
Power of Temporary
Construction

Construction machinery rental business+ transportation and logistics business
Construction machinery rental business+ event business Strengthen competitiveness of domestic construction equipment rental business.
Contribute to productivity improvement in the construction industry by leveraging
 Promote M&A overseas with high growth potential.
 Supporting the establishment of wooden module business and carbon
neutrality at construction sites.

Stock Prices and PBR Trends
（yen）
5,000

Sales Strategy(ratio）
2.50x

4,500
4,000

2.00x

3,500
3,000

1.50x

2,500
2,000

1.00x

1,500
1,000

Construction
Logistics
Domestic construction machinery
rental business
Integration of peripheral businesses

0.50x

500
00.00x
2014

2015

2016

2017

2018

2019

Stock prices

2020

2021

PBR

2022

2023

Power ofTemporary Construction

23

Numerical Targets for Year Ending September 30, 2026

Net Sales

220.0
increase

Operating Profit

19.0

billion yen+34.4 billion yen

EBITDA (Growth Indicator)

Of which, 21.4 billion yen increasein growth strategies (1) to (4)57.3(compared with September 2023)

billion yen

Cost of Capital

ROI (Efficiency Indicators )Maintainbillion yen(Efficiency Indicators)

23.2％

7.09％

Maintain*ROI (return on investment of rental asset) = amount of rental income / acquisition price of rental asset
Example: When a rental asset with an acquisition price of 1,000,000 yen earns 200,000 yen in rental income per year, the return on
investment is 200,000 yen per year / 1,000,000 yen x 100 = 20% per year
*Capital cost is our estimate

43

Towards PBR Improvement
Causes of PBR stagnation
There is an urgent need to restore confidence
in the medium- to long-term growth potential ofour core business (domestic construction
equipment rental business)

Net Sales and Change in EBITDA（billion yen）
57.3

250.0
53.1

60.0

53.7

49.6
47.3

200.0
44.4

50.0

43.7

39.6

150.0

40.0

36.1
220.0

PBR improvement① Evolving the rental business into
a new growth industry

100.0
123.5

50.0

2017

136.6

2018

 Growth potential Emphasis on EBITDA

 Considering M&A and business withdrawal:
Emphasis on Capital cost
* However, when considering efficiency, consider it from a broader
perspective, including the long-term ripple effects of the project.

2019

2020

2021

2022

Net Sales（left-hand scale）② Key indicators
 Efficiency Focus on ROI in daily sales activities

170.6
153.9 151.2 161.7

185.6 195.0

30.0

2023

2024

（Plan）

2026

20.0（Target）

EBITDA (right-hand scale）

Change in ROI（％）
25.0

22.5

22.9

22.9

22.0

21.9

22.7

23.2

23.2

20.0

15.0

2017 2018 2019 2020 2021 2022 2023

2026

（Target）

4

5

Growth Strategy (1) – “Construction Logistics”

1

Aiming to commercialize "last one
mile" transportation of materials forconstruction sites and materialtransportation within construction
sites

2

Increase logistics capacity andexpand orders for large sites such as
semiconductor factories
Utilize rental machinery fortransportation and hauling.

Sales Target
Transportation
business

Equipment construction for
semiconductor plants, etc.

FY2023

FY20230.6

21.4

FY2026FY2026billion yen

3.0

billion yen

Transportation of materials for construction sites

billion yen

27.0

billion yen

8.0 billion yen sales increase in 3 years
TargetTransportation of materials within the construction site

FY202322.0

billion yen

FY202630.0

billion yen

5Growth Strategy (2) – “Power of Temporary Construction”

6

support for provisional land use and1 Temporarycommunity liveliness

2

Strengthen working relationships with major
construction companies and developers through early
involvement in urban redevelopment

Sales Target
Power of TemporaryConstruction
FY2023

0.55

billion yen

FY2026

4.55

billion yen

Creating Festivity(Umekita Exterior Garden Square）

4.0 billion yen
sales increasein 3 years

Wooden Module (Kibaco)

Creating Festivity(Sannomiya ＆ 3PARK)

Creating Festivity(FULALIKYOBASHI)

6

7Growth Strategy (3) – “Construction DX”

1

PicoCELA, a wireless mesh LAN system, is positioned as
an infrastructure for construction sites and various
solutions are provided based on it

Sales Target

Example: Contributing to on-site digitalization through the developmentof a Wi-Fi environment

Construction DX
FY2023

8.6Improvementof Wi-Fi
environment

billion yen

FY2026

Deepening DX utilization in specific fields such as offshore

engineering, ground improvement, and tunnel
2 civilexcavation

12.0

billion yen

Example: GeoScan survey of the ground3.4 billion yen
sales increasein 3 years

7

Growth Strategy (4) – “Overseas”

8

cultivating areas of expertise such as forklifts, AWP
1 Deeply(aerial work platform), large generators, etc.

2

Existing Companies’ Sales+ M&A Companies’ Sales

To conduct about two M&A overseas.

Leveraging “market differentiation”

Vision2023

Japan

Next Stage2026

30.0SoutheastAsia

Australia

JP
Longer period of useof elevating equipment
than in Australia.

11.2
9.5

12.2

AU

Laws and regulations
strictly limit the number ofyears elevating machines
can be used together.

10.0

28.6

billion yen

28.6
22.6

23.0

5.0

19.0
14.5

15.3

5.0

2020 2021 2022 2023 2024
（Plan）

Utilizing a global logistics network spanning Japan, Southeast
Asia, and Oceania, determine the most efficient deployment
and management of rental assets based on "differences.“billion yen

FY20269.5

10.00.0

22.6

15.0

11.8

15.0
Aerial Work
Platform（％）

13.0

25.0
20.0

Large Generator

FY2023

Overseas sales（billion yen）

Forklift

Sales Target

2026

0.0（Target）

Overseas Net Sales (left-hand scale) Overseas Sales Ratio(right-hand scale)
Overseas Sales Ratio (right-hand scale)

6.0 billion yensales increasein 3 years

8Investment Strategy

91 Cash Allocation（FY2024 to FY2026）
 Prioritize growth investment to revitalize as a new growth industry.
 For investment in growth, emphasis will be placed on capital cost and otherefficiency factors. Long-term ripple effects will also be considered.
 Emphasize stability in shareholder returns. Dialogue with shareholders
and investors will also be emphasized.
 Investment in rental assets
124.9 billion yen

Free
Cash Flow

GrowthInvestment

146.2

 M&A investment and business land andbuildings (large projects) 30.9 billion yen

billion yen

 Investment in human resources, etc.
Shareholder
Returns

LoanCapacity

 Continuous dividend payout ratio of 30%
910

Financial Strategy and Shareholder Returns

1 Financial Strategy “3 Indicators” continued
Indicator

As of 2023 September

At least
50％

44.8％

Interest-bearing debt tomonthly sales ratio(*1)

No more than
6.5 months

6.0 months

Cash and deposits tomonthly sales ratio(*2)

At least
1.5 months

2.8 months

Equity ratio

About the three “Indicators”

In order to maintainfinancial safety andsoundness, we haveestablished certain
voluntary rules for the“three indicators.”*1 Interest-bearing debt to monthly sales ratio ＝ Interest-bearing debt ÷ （Monthly sales ÷ 12 months）*2 Cash and deposits to monthly sales ratio ＝ （Cash＋Deposit＋Short-term investment securities） ÷ （Annual Sales ÷ 12 months）

2 Payout ratio of 30% continued
Beyond 2020

（yen）
150Vision 2023

100

30.3

30.2

30.2

30.0

30.0

26.7
20.7

20.2

30.0

20.2
20.0

75
5025（%）
40.0

33.2

125

Next Stage 2026

57

70

70

7785

2018

2019

2020

2021

100

112

113
10.0

0.00
2017

Dividend per share（left-side scale）

2022

2023

2024

（Plan）

2025（Target）

Dividend payout ratio（right-side scale）

2026（Target）

1011

Sustainability Management

Promotion of Sustainability Management As stated in our corporate policy, “Our group works to improve society as a pioneer ofrental services for all fields”, we will continue to fulfill our mission to contribute to solvingsocial issues through a sustainable rental business.
 Consideration of TCFD-based disclosure during the term of this mid-term management.

Further evolution of the rental business to promote a transition to decarbonization
Specific Efforts ➀－ Power of Temporary Construction

Specific Efforts ②－ Electrification of construction equipment

 Contributing to the reduction of CO₂ emissions throughwooden modules, a sustainable and convertible temporary
construction

 Further promote the transition to a decarbonizedeconomy by electrifying construction equipment (target
250 pieces of equipment in 3 years)

 Full use of Nishio's comprehensive strengths to win orders forthe 2025 Osaka/Kansai Expo, which will focus on achieving
the SDGs

 Focus on infrastructure development to promote thespread of electric construction equipment, such asincreasing on-site recharging facilities (target of 100
pieces of equipment in 3 years) Assumed to be reused as structural material after useLocation B

Location A1112

Expo 2025, Osaka, Kansai: Our approach and legacy ①① Construction machines

Sales Target

1.2 billion yen③ Wooden Pavilion

1.7 billion yen

Pavilion BC

２ points

Corporate Pavilion
Auxiliary Facilities

１ point

Pavilion A（target）

３to４points

6.0billion yen② Events 3.1 billion yen
Mobility HubTrain

Equipment for onsite eventsBus

Private Automobile

Bus

Private Automobile

Flying Car

Creating liveliness at transfer points such as above

Establishment of “R&D International Exchange Center” in Sakishima
Demonstration of new technology that will serve as a legacy for the Expo.
“CLT Wood Reuse Technology” “Practical Hydrogen EV Technology”

R&D International Exchange Center Building A

R&D International Exchange Center Building B

R&D International Exchange Center Building B
Wood Logistics Center12

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Expo 2025, Osaka, Kansai: Our approach and legacy ②

Point

1

Construction
Machines
Building a "company-to-company"
relationship with generalcontractors, interior decoratingcompanies, and major local
construction companies by taking
the opportunity of participating inconstructing the wooden pavilion.

Point2

Point

3

EventsWooden Pavilions

Acquiring knowledge on how tocreate liveliness in provisional land
use and park use.

Wooden Modules established as anew business field Business support for CLT lumber
secondary processing plant Development of reuse technology
for CLT lumber

MIDORI office（Umekita Exterior Garden Square）
Wooden Module“Kibaco”＆3PARK JR Sannomiya Station Square

To gain a reputation as a“company that takes risks and takes on new business challenges”

Cautionary Statement Regarding Forward-Looking Statements

This material was not prepared for the purpose of soliciting investments.
Forward-looking statements in this document, such as forecasts, plans, and prospects, arebased on information available to the Company at the time this document was prepared andon the Company's judgment that such statements are reasonable.
Such statements are not guarantees of future performance and involve risks and uncertainties
that are difficult to predict, including changes in economic conditions, market and competitiveenvironments, domestic and international regulations, and accounting standards andpractices. Actual results may differ materially from those discussed in the forward-looking
statements due to these factors.
November 10, 2023

President’s Office ［IR］
https://nishio-grp.co.jp/
TEL06-6251-7302
FAX
06-6252-0285
E-MAIL ir@nishio-grp.co.jp

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