2Q/ 62nd Term(2024)

Financial Results

Aug 13, 2024

1. Financial Results 2Q/62nd Term (2024)
2. 62nd Term (2024) End of Fiscal Year Forecasts
3. Challenges and Outlook for 2nd half
Appendix

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2

1. Financial Results 2Q/62nd Term (2024)
2. 62nd Term (2024) End of Fiscal Year Forecasts
3. Challenges and Outlook for 2nd half
4. Appendix

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

3

2 Q / 6 2 n d Te r m - F i n a n c i a l H i g h l i g h t （ C o n s o l i d a t e d ）In the 1st half of the FY2024, Orders Received, Sales and Operating Income exceeded expectations in the 1st half.
In the 2nd half, Orders Received, Sales and Operating Income are expected to progress as previous years, so weannounced the revision to financial results forecast based on the good performance in the 1st half. n the fi

Sales

Orders Received

54,545

JPY million

YoY
58,923JPY million
Rate of change -7.4％

50,746

JPY million

YoY
47,623 JPY million
Rate of change ＋6.6 ％Operating Income

6,789

JPY million

YoY
7,166 JPY million
Rate of change -5.3 ％Net Income Attributable to
Owners of the Parent

4,883

JPY million

YoY
5,289 JPY million
Rate of change -7.7 ％Orders
Received

Exceeded previous full fiscal year forecast in the 1st half, . Regard to the situation in the 2nd half, we plan to take orders
received while considering the workload of engineers as initial policy.

Sales

In the 1st half, we achieved Sales that exceeded those of the same period of the previous FY, thanks to better-thanexpected progress in1Q. Operation of the Water & Land Business Sector especially progressed better than expected.

Operating

IncomeWe achieved better profits than expected for the 1st half of the FY2024. This is because many high-profit, large-scale
projects progressed in1Q.

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4

2 Q / 6 2 n d Te r m - F i n a n c i a l H i g h l i g h t （ P r o g r e s s v s . F o r e c a s t ）OI and NI achieved about 70% of Revised full fiscal year plan.
The situation in the 2nd half is uncertain because of overseas economic trends and uncertain exchange rates, unless we
expected to progress at the same level as the previous year.
62nd2024 2Q
Progress vs.
Forecast

62nd Forecast

0％

50％

Orders
Received

54,545JPY million

Sales

50,746JPY million

Operating
Income6,789JPY million

OI Margin

13.4%

Net Income

4,883JPY million

Attributable to
Owners of the
Parent※Revised

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100％
Progress Rate

94,000JPY million

58.0%

Progress Rate

97,000JPY million

52.3%

Progress Rate

70.7%

9,600JPY million

Progress Rate

6,900JPY million

70.8%

9.9%

5

2 Q / 6 2 n d Te r m - R e s u l t s O u t l i n e （ C o n s o l i d a t e d ）（JPY million）

Item

62nd Term 2024
(FY Forecast)

62nd Term 2024 2Q

61st Term
2023 2Q

Change(¥)(YoY)※ Revised

Change(%)(YoY)

Progress vs.
Forecast (%)

Orders Received

58,92354,545-4,378-7.4%

93,000

58.6%

Sales

47,62350,746+3,122+6.6%

97,00052.3%

Operating Income

7,166

6,789

-376

-5.3%

9,600

70.7%

OI Margin

15.0％

13.4％

-

-1.7pt9.9%-

Ordinary Profit

7,287

6,853

-434

-6.0%

9,700

70.7%

Net Income
Attributable to
Owners of the Parent

5,286

4,883

-405

-7.7%

6,900

70.8%

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（Reference）Changes in Orders Received, Sales, and Operating Incomein the 1st Half (Consolidated)

Orders received decreased slightly YoY due to a decrease in large-scale operations with multi-year contracts
and a reduction in labor load.
Sales increased due to the better progress than expected in the 1Q
Operating income margin decreased due to an increase in the number of employees, wage increases, price increases, etc.
Orders
受注高
Received（ JPY billion ）
800

売上高
Sales

営業利益率
OI Margin

16%

700

14%

600

12%

500

10%

400

8%

300

6%

200

4%

100

2%

0

0%
2020.2Q

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2021.2Q

2022.2Q

2023.2Q

2024.2Q
7

(Reference) Sales and Operating Income for the First Half (Consolidated)

CTI Group has a large number of public projects, leading work progress clustering toward the end of the
fiscal year. This, in turn, leads sales and income to cluster in 1Q. (after the adoption of Accounting Standardof Revenue Recognition in 2022)（JPY million）

売上高
Sales

60,000

営業利益
OI Margin

50,00050,74647,623
41,84440,00030,00020,00010,000

6,789

7,166

5,462

0

1Q

2Q
2022

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1Q+2Q

1Q

2Q
2023

1Q+2Q

1Q

2Q

1Q+2Q

2024
8

Balance Sheet （Consolidated）
・Assets increased 4.6JPY billion due to an increase in accounts receivable(5.7JPY billion), etc.
・Liabilities decreased 2.9JPY billion due to a decrease in contract liabilities (-4.2JPY billion), etc.
・Net Worth Ratio 68.9％（＋5.3pt）
Total Assets 81.2JPY billion

Current
Assets56.3

Current
Liabilities
25.3
Fixed Liabilities 4.1

Total Assets 85.8JPY billion

Current
Assets
58.9

Net Assets
51.8

Net Worth
Ratio

Fixed
Assets
24.9

63.6％

Current
Liabilities
22.9（ JPY billion )Fixed Liabilities 3.5

Net Assets
59.4

Fixed

Net Worth
Ratio

Assets68.9％

26.9
2023.2Q

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2024.2Q
9

2 Q / 6 2 n d Te r m - R e s u l t s O u t l i n e b y S e g m e n t ： D o m e s t i c B u s i n e s sOrders Received are progressing as planned on initial policy.
Orders Receives progressed to 61.0% of the previous full fiscal year forecast. Regard to the situation in the
2nd half, we plan to take orders received while considering the workload of engineers.
Sales progressed to 53.8% of the full fiscal year forecast, and Operating Income progressed to 74.6% of thefull fiscal year forecast.

（JPY million）

Item

61st Term
2023 2Q

62nd Term 2024
(FY Forecast)

62nd Term 2024 2Q
Change(¥)(YoY)※ Revised

Change(%)(YoY)

Progress vs.
Forecast (%)

Orders
Received

40,625

38,123-2,502-6.2%

62,500

61.0%

Sales

34,11335,493+1,379+4.0%

66,00053.8%

Operating
Income

6,800

6,494

-305

-4.5%

8,700

74.6%

OI Margin

19.9％

18.3％

-

-1.6pt13.2%-

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10

O r d e r s R e c e i v e d A m o u n t Tr e n d ( D o m e s t i c )■ Orders Received Amount by Contract Method■Orders Received Amount by Source
8%
49%

36%

・Decrease from Government, Former
22%
Public Corporations and Foundations.
・Slight increase from Local Government andPrivate, etc.
・Trend of Orders Received Amount18%
by Source is usual as previous years.

22%

7%（JPY billion）
400

300

30.3
1.6
10.1

200

35.3
1.4
11.1
3.6

38.2
2.7
11.3
3.3

40.6
2.4

38.1
2.9

12.9
13.6
4.0
2.7

（JPY billion）
400
35.3
300

200

3.6
100

15.0

38%

・Trend of Orders Received Amountby Contract Method unchanged fromprevious years.
Engineering Competitiveness（Proposal &Comprehensive Evaluation）account for alarge share.
・Totally Decrease, especially for Proposal.

30.3
5.6
7.0

6.9
5.8
8.6

38.2
6.9
7.4

8.9

40.6
8.5
7.1
8.7

38.1
8.2
6.8
8.5

6.9
19.2

20.9

21.3

18.9

100
10.8

14.0

15.0

16.3

14.6

2021.2Q

2022.2Q

2023.2Q

2024.2Q

002020.2Q

2021.2Q

2022.2Q

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2023.2Q

2024.2Q

2020.2Q

11

O r d e r s R e c e i v e d Tr e n d ( D o m e s t i c )■ Orders Received Amount by Sector
・Trend of Orders Received Amount by Sector unchanged fromprevious years.
※2023 realized：
Water & Land 36％, Transportation & Urban 31％,
Environment & Social 25％, Construction Management 8％・Large Decrease in the Water & Land Sector.
（JPY billion）
40.6
38.2

400

35.3

300

30.3

2.8

3.5

4.7

Water
& LandSector

38.1
3.6

9.9

9.7

11.8

11.9

12.3

13.7

14.3

12.8

2020.2Q

2021.2Q

2022.2Q

2023.2Q

2024.2Q

流域・国土
Water
& LandTransportation
交通・都市& Urban

2.9

6.9

34%

Transportation& Urban
Sector31%

Rivers / Water Resources / Coasts /Ports / Dams / Erosion Control /Water
Supply & Sewerage / Mechanical &Electrical Equipment

Roads & Transportation / Urban
Planning / PFIs & PPPs / Architecture

Orders Received 12,792JPY million
YoY-10.5％

Orders Received 11,807JPY million
YoY
-1.2％

9.9

6.3
200

12.6

11.8

10.9
100

10.2
0

Environment
環境・社会& Social

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建設マネジメント
Construction
Mgmt.

Environment& Social
Sector26%

Construction
Management
Sector9%

Information & Telecommunications
Technology / Disaster Mitigation /Environment / Geo-environment

Public Procurement Assistance /Construction Management & Execution
Management

Orders Received 9,955JPY million
YoY
+3.0％

Orders Received 3,568JPY million
YoY-24.2％
12

2 Q / 6 2 n d Te r m - R e s u l t s O u t l i n e b y S e g m e n t ： O v e r s e a s B u s i n e s sOrders received, Sales, and Operating Income progressed as planned.

Orders Received progressed according to full fiscal year forecast. Orders received progressed to 52.1% of
the full fiscal year forecast, Sales progressed to 49.2%, and Operating Income progressed to 33.0%.
（JPY million）

Item

61st Term

62nd Term 2024
(FY Forecast)

62nd Term 2024 2Q

2023 2Q

Change(¥)(YoY)※ Revised

Change(%)(YoY)

Orders
Received

18,297

16,421-1,876

Sales

13,51015,253+1,742

Operating
Income377

296

OI Margin

2.8％

1.9％

-10.3%

Progress vs.
Forecast (%)

31,50052.1%+12.9%(+0.1%)

31,00049.2%-80-21.4%

900

33.0%

-

-0.9pt2.9%-(-22.0%)※Orders Received amount includes amount changes from currency fluctuations associated with the end-of –FY order backlog at our overseas subsidiaries.
The figures in parenthesis represent at change percentage excluding the foreign currency adjustment of our overseas subsidiaries.
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13

O r d e r s R e c e i v e d A m o u n t Tr e n d ( O v e r s e a s )- Orders Received for Waterman are progressing as planned both in the private and public sectors.
Expected to be tight in the 2nd half of the FY2024 as the economic recovery in Britain and Australia slows.
- CTI International will continue to face a difficult situation due to the delay in winning orders for large-scale projects in thePhilippines.

■Trend in Order Balance■Orders Received Amount（JPY billion）（JPY billion）
200

18.2

30.5
16.4

28.3

300

14.5

24.7
8.5

12.5

8.3

5.5
100

22.6
200

4.9

3.3

7.1
2.7

5.5

6.8

6.6

100

0

2020.2Q

2.1

2.4

2021.2Q

2022.2Q

CTII

9.5

8.0

9.4

10.2

9.3

2021.2Q

2022.2Q

10.0

6.4

7.1

3.1
1.3

9.7

6.0

4.4

17.5

9.7

Waterman民間

2.9
2023.2Q

Waterman公共

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7.8
1.0
2024.2Q

11.3

8.6

0
2020.2Q

CTII

Waterman民間

2023.2Q

2024.2Q

Waterman公共14

1. Financial Results 2Q/62nd Term (2024)
2. 62nd Term (2024) End of Fiscal Year Forecasts
3. Challenges and Outlook for 2nd half
4. Appendix

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15

6 2 n d d Te r m ( 2 0 2 4 ) E o F Y F o r e c a s t s （ C o n s o l i d a t e d / N o n - C o n s o l i d a t e d ）Raised full fiscal year guidance on both consolidated and non-consolidated basis
In the 1st half of the FY2024, Orders Received, Sales and Operating Income exceeded expectations in the 1st half.
In the 2nd half, Orders Received, Sales and Operating Income are expected to progress as usual, so we announced the revision tofinancial results forecast based on the good performance in the 1st half. n the fi（JPY million）
61st （2023）

62nd Term（2024）

Items

Previous
Forecast(A)

Revised
Forecast（B）

Change（B – A）

Percentage
Change（％）

LFY Realized

Consolidated
Sales

89,00097,000

8,000

9.0%

93,057

Operating Income

8,400

9,600

1,200

14.3%

10,011OI Margin

9.4%

9.9%

＋0.5pt-10.8％

Net Income Attributable to
Owners of the Parent

6,100

6,900

800

13.1%

7,534

Sales

56,00059,000

3,000

5.4%

57,439Operating Income

7,500

8,400

900

12.0%

8,563

OI Margin

13.4%

14.2%

+0.8pt-14.9％

Net Income Attributable to
Owners of the Parent

5,700

6,500

800

14.0%

6,652

Non-Consolidated

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16

6 2 n d Te r m ( 2 0 2 4 ) E o F Y F o r e c a s t s （ S e g m e n t ）Raised full fiscal year guidance on both domestic and overseas（JPY million）
61st （2023）

62nd Term（2024）

Items

Previous
Forecast(A)

Revised
Forecast（B）

Change（B – A）

Percentage
Change（％）

LFY Realized

Domestic Segment
Sales

63,00066,000

3,000

4.8％

64,473Operating Income

7,700

8,700

1,000

13.0％

8,943

OI Margin

63,00066,000

3,000

4.8％

64,473

Sales

63,00066,000

3,000

4.8％

64,473Operating Income

7,700

8,700

1,000

13.0％

8,943

OI Margin

63,00066,000

3,000

4.8％

64,473

Sales

89,00097,000

8,000

9.0％

93,057

Operating Income

8,400

9,600

1,200

14.3％

10,011OI Margin

9.4%

9.9%

+0.5pt-10.8％

Overseas Segment

Total

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171. Financial Results 2Q/62nd Term (2024)
2. 62nd Term (2024) End of Fiscal Year Forecasts
3. Challenges and Outlook for the 2nd half
4. Appendix

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18

（ R e f e r e n c e ） 6 2 nd（ 2 0 2 4 ） M a n a g e m e n t P l a n : S a l i e n t P o i n t（ 6 1 st Te r m F i n a n c i a l R e s u l t s ）Point ①: Advance structural transformation and prevent errors
Advance structural transformation
 Maintain share of orders from MLIT.
 Expand orders from local Government and theprivate sector.
 Expand range of services & domains.
Prevent errors
 Deploy dedicated, full-time inspectors.

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Point ②: Enhance Investment
 Enhance investment in human capital, strengthening talentacquisition/training, and revamping employee benefits.
 Enhance investment in development to improve engineering
competitiveness.
 Enhance investment in R&D toward business expansion andgreater productivity.
 Enhance investment to prevent errors.

19Challenges and Outlook for the 2nd half
Challenges

Progress and Future Actions

１ Advance structuraltransformationand prevent errors[Business Structure Reform]
・ Market expansion: Municipalities and the private sector are growing slightly, but we will continue to expand orders
through cooperation between the technology and sales departments.
・ Expansion of services and fields: Energy, PPP, green infrastructure, etc. have increased compared to the previous
fiscal year, but they are not enough. Aim for further business expansion[Error Prevention]- The number of complaints caused by mistakes decreased by about 50% from the same period of the previous year due
to the utilization of a dedicated organization for checking and the promotion of the use of tools to support checking
and self-checking.
In the future, we will continue to ensure checks by thoroughly project management with sufficient time for checks
and by increasing the number of personnel.

２ Enhance
Investment[Active recruitment]
・ Increase the number of engineers to reduce working hours through business expansion and worksharing(There are about 100 new graduates scheduled to be hired in FY 2025, and mid-career recruits will be hired at a fasterpace than the previous fiscal year and the year before)[Planned training]- Basic technology trainings for new employees were conducted from this term. At the same time, young engineers will
be systematically trained through the IPD system.
[Promotion of diverse ways of working]・ Review of the treatment system for senior engineers, diversification of working styles, improvement of motivation,and securing of labor force[Productivity improvement]
・ CTI version generative AI, design work error automatic detection system is scheduled to be completed at the end of
this term, and productivity improvement is expected from the next term onwards[Improvement of competitiveness]
・ Expand research areas such as the development of digital technologies such as AI and IoT, and actively invest in fields
with future potential[Sustainable investment]
・ Invested 350 million yen out of a total of 1.3 billion yen, and developed an energy management system (AI-EMS)
using AI as a carbon neutral contribution technology (announced externally in April)

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20

（ R e f e r e n c e ） A i m o f 6 2 nd F Y F o r e c a s t （ N o n - C o n s o l i d a t e d ）（ P a r t l y r e v i s e d 1 Q / 6 2 nd F i n a n c i a l R e s u l t s ）Increased workload due to exceeding Sales until the previous FY.
We reduced Sales per employee even though we raised full fiscal year guidance. We would like to make it the first step insecuring human capital over the medium to long term.
Sales per Employee

Sales（JPY billion）（JPY 10 thousands）

700

3,800

Gap計画との乖離
from Forecast→Increased
workload→技術者の負荷増大

600

2030 Vision

2024 Revised Forecast

60JPY billion

59JPY billion

Reduce Sales
per employee→Reduce workload

3,700

Aiming virtuous cycle
by reducing workload
as investment to human capital

3,600
3,500

500

3,400

Greater

Reduceproductivity

workload

Securing
human
resource

Improvement

3,300
400

3,200
売上高実績
Sales

3,100

1人当たり売上高
Sales per employee300

engagement

3,000

2019

2020

2021

2022

2023

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2024

2025

2026

2027

2028

2029

2030

21

A i m o f 6 2 nd F Y F o r e c a s t a n d P r o g r e s s （ N o n - C o n s o l i d a t e d ）We made a management plan to reduce both Sales and Profits from the previous FY,
focusing on the following two points:(1) Advance structural transformation and prevent errors(2) Enhanc Investment
Now We revised to financial results forecast based on the good performance in the first half →Sales ↑Prevent errors

By utilizing a dedicated checking organization and promoting the use of tools to
support checking and self-checking.
The number of complaints caused by errors decreased by about 50% compared tothe same period of the previous fiscal year.
Graterproductivity

Reduce Sales per employee
after revision forecast
YoY -4.2％2024 Forecast
No. of engineer 1,670

Working hours↓

Successful
Recruitment→Achieved 1,669 by June
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Greater

Reduceproductivity

workload

Securing
human
resource

Improvement
engagement

Reduce working
hours
Average working hours（From Jan to Jun）
YoY -3.1％

Engagement score
To be scheduled formeasurement in winter22

Measure to prevent recurrence of inappropriate cost management
On June 27, 2024, we disclosed “Notice of Measures to Prevent Recurrence of Inappropriate Cost Management” after specifying the preventive
measures proposed in the ”Investigation Report on Inappropriate Cost Management (reported by Internal Investigation Committee: April 16,2024)“ . We will strive to ensure that all employees are fully aware of these preventive measures.

Measure to prevent recurrence
１

Concrete measure

Measures to prevent recurrence for strengthening

・Thorough daily input of work hours into the monthly report system

the approval process for the Monthly Report

・Thorough daily input of work hours for each job into the monthly reportsystemAll
measurestared tooperate・Visualization of the process for approval and return of monthly report「不適切な原価管理に関する調査報告書（社内調査委員会：2024年4月16日）」において提言された再・Establishment of a system in which the manager can confirm the status of
発防止策について具体化し、2024年6月27日に「不適切な原価管理に関する再発防止策への取り組み」
business execution of all members of the departmentを開示いたしました。これら再発防止策の周知・徹底に努めてまいります。

・Thorough management of work hours of temporary employees for each business

２

３

Strengthening the Approval and Monitoring Process

・Monitoring of cost occurrence status for each businessfor the Execution Budget

・Improvement of the statement of reasons for exceeding the cost control standard

Reinforcing Compliance Education

・Compliance training targeted all employees at each base office and group・Improvement of the statement of reasons for exceeding the cost control standard

company (9 companies)

４

Fostering a Corporate Culture that Avoids

・Notice in the name of the CEO（April 16）

Inappropriate Cost Management

・Notice in the name of the Director, Managing Executive Officer（May 30）

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・Continuous dissemination of the importance of cost management23

Business Philosophy
We strive to create a safe,
Comfortable and enriching society
Using world-class technology and expertise.

CTI Engineering Co., Ltd. has faced social issues with integrity throughout its history as a pioneering
consulting engineer. It has worked to solve a variety of infrastructure development issues by constantly
improving its engineering capabilities.
As technological innovation accelerates, we will serve as a group of professionals who will ambitiously takeon new technologies and always provide the best infrastructure services. We will work tirelessly to create asociety where people can live safely and securely with an eye on the future.

24

Disclaimer

 Any forward-looking statements as part of information disclosed by the Company, such as (but not
restricted to) information pertaining to future plans, outlooks, management strategy, etc., are based on
the information available at the time of disclosure and/or on certain assumptions deemed reasonable.
 As such, these contain risks and uncertainties related to changes in the state of the economy,
government policies impacting the Company’s businesses, changes to the tax code and/or otherregulatory changes and/or in the International status quo.
 Realized results may differ materially from the aforementioned forward-looking statements, due to avariety of factors and causes.

Nihombashi Hamacho F Tower, 3-21-1 Nihombashi Hamacho, Chuo-ku, Tokyo, Japan(TSE Prime 9621)

Tatsuya Nishimura, Representative Director and President, CEOContact: Toshikazu Matsuoka, Managing Executive Officer
TEL: 03-3668-4125

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25

25

1. Financial Results 2Q/62nd Term (2024)
2. 62nd Term (2024) End of Fiscal Year Forecasts
3. Challenges and Outlook for 2nd half
4. Appendix

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

26

▮ Corporate Profile
Company NameCTI Engineering Co.,Ltd.

Creation

August 1945 (Foundation)

Establishment

Number of employees: 3,830
Net sales of ¥ 93 billion

April 1963

Head Office

3-21-1 Nihombashi Hamacho, Chuo-ku,Tokyo

Capital stock

3.025 billion yen

Accounting
periodDecember 31

Net Sales

93.057 billion yen (FY 2023)

Number of
employees

Consolidated: 3,830 /Non-consolidated: 2,023 (FY 2023)

Number ofsubsidiaries

34 companies

Listing market

Business Philosophy
We strive to create asafe, Comfortable andenriching society
Using world-classtechnology andexpertise.

Consolidated

Tokyo Stock Exchange Prime Market

Securities Code9621

Total number ofissued shares

14,159,086 sharespartner
Sole member
Consolidated

Number of employees: 104
Net sales 120 million

Net Sales

1963(Establishment)
1963

1973

1980

Postwar
Pollution problem
reconstruction High economic growth

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

1983

1993

From quantity to quality

2000

2003

Global environmental
problems

2013

2023

2023

Reconstruction after the earthquake
National Resilience▮Transition of Sales/Operating Income/Number of engineers（Non-consolidated）
Sales・OI（JPY Million）

By increasing
human
resources, weachievedsustainable
expand ofSales and OI.

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

Number of Engineers（Person）

▮ Roles of Civil Engineering Consultants
Infrastructure developments are carried out mainly by three parties: (1) national and local governments, (2) construction consultants, and (3)construction companies.
For "national and local governments" that decide projects and make plans,
We " Civil Engineering Consultants " provide specific surveys, plans, designs, etc. as a partner.

Carried out by three parties

Specialists about Infrastructure
For example, let us imagine, “We’ll Build a bridge" , we should consider
about the type of bridge, the design, its length and width, budget, thegeology,environment on the other side of the river,the response to adisaster, and the any other aspect about bridge.
Civil Engineering Consultants are a vital part of social infrastructuredevelopment. We coordinate the entire infrastructure development projectfrom start to finish.

BudgetDesignEnvironmenta
l Impact

Technical
Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

▮ Business process of Civil Engineering Consultants
The role of civil engineering consultants is to provide consulting on specific surveys, plans, designs, etc. to national and local governments, whichmake decisions on projects and make plans.
We undertake almost all the work flow, but in accordance with the "principle of separation of design and construction," theconstruction company is responsible for the construction part.

Flow of infrastructure development
Construction consultants are involved in all stages of a project, from the initial planning by
the national and local governments to planning, design, construction management, andmaintenance and management after completion.

Principle of separation ofdesign and construction
During the postwar period, the Ministry ofConstruction (now the Ministry of Land,
Infrastructure, Transport and Tourism) clarified theprinciple of separation of design and construction.
Infrastructure Development

Define aproject

Plan

SurveyConstruction
consultant

DesignConstruction
Work

Generalcontractors andmanufacturers

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Construction
management

Maintenancemanagement

Construction
consultant

Clearly separated
DesignConstruction

Civil
Engineering
Consultants

Generalcontractors
andmanufacturers

▮ Business fields of the Company (non-consolidated)
The Company's (non-consolidated) business fields consist of the following four business divisions.

▮ 61st Period Orders Composition Ratio (Domestic)
Water and Land
Business Sector

Transportation and Urban
Business Sector

Environmental and social
Business Sector

Construction Management
Business Sector

36%

31%

25%

8

Rivers / Water Resources /Coasts / Ports / Dams / Erosion
Control /Water Supply &Sewerage / Mechanical &Electrical Equipment

Roads & Transportation / Urban
Planning / PFIs & PPPs /Architecture

Information &Telecommunications Technology/ Disaster Mitigation /Environment / Geo-environment

Public Procurement Assistance /Construction Management &Execution Management

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

%▮ Our Position in the Construction Consulting Industry (Non-consolidated)
Ranked 2nd in Sales and Net Income in FY 2023

Company Name

JPY Million
Construction
Consulting Division
Net Sales

Current term
Profit1

Integrated Design & Engineering Holdings(ID&E) * 1

63,895

7,538

2

CTI Engineering (CTIE)

54,003

6,652

3

Pacific Consultants (PCKK) (Unlisted)

51,292

2,224

4

Oriental Consultants (OC)30,856815

5

Dia Nippon Engineering Consultants * 2

28,1491,823

6Oriental Consultants Global(OC Global)

27,358

1,209

7

Yachiyo Engineering (Yachiyo) (Unlisted)

26,186

1,109

8

Eight-Japan Engineering Consultants (Eight JP)

23,837

1,944

9

Pasco

22,0693,744

10

IDEA Consultants

20,995

1,925

Source: Top 10 companies extracted from "Nikkei Construction" April 2024 Construction Consultant Financial Ranking 2024
(The Company's "Construction Consulting Division Sales" is the amount obtained by subtracting the sales of survey and geological survey services other than the "Construction Consulting Division" from thetotal sales.)* 1: In July 2023, the company was reorganized under the holding company (ID & E) into a system in which Nippon Koei and Nippon Koei Urban Space are located.
* 2: Established in July 2023 through the merger of Dai Nippon Consultant and Dia Consultant.
Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

▮ Strength of the Company
Order Received Amount by Contract Method (FY2023)

Order Received Amount by Source (FY2023)

1

2

Private,etc.
8%

Our Main
Clients

Government
Local Gov.
35%

48%

Former Public Corp.
/Fdn.
9%

Price Competition
23

Technological

Proposal

40%

Competition

Government Negotiated Contracts
17%

20%

Comprehensive Evaluation

Approximately half of all orders received are from the Japanese
government.

Orders received under the proposal method and the total evaluation method, inwhich technical capabilities are evaluated, accounted for approximately 60% of totalorders received, indicating the high level of our technological competitiveness

While national projects are stable and highly profitable
It requires advanced technology.

・Proposal : Competition based on ability

As we receive a large number of orders from the government, we areable to secure profitability and build up a track record of engineers
through the implementation of projects, which will lead to orders in thenext fiscal year.
This cycle has resulted in our technological superiority

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

・Comprehensive Evaluation : Ability to propose technology + Price competition
・Price Competition : Full Price Competition
・Government Negotiated Contracts : A contract is concluded by designating a
specific business operator for theconvenience of the ordering party.

▮ International Operations- We are expanding globally with two subsidiaries, Waterman and CTI International.
61stterm
CompositionofOverseas
SegmentSales

61stterm
CompositionofOverseas
SegmentSales

Waterman Group Plc

18%
82%

Creeping

June 2017 Joined the Group (holding
company)
Business Outline

Mainly for private companies
Architecture Structural design,
Equipment design
Mainly for public works
Civil Engineering Field
・ Construction consultant
・ Dispatch of engineers

81%

CTI International
Creeping

1999 March Established as a wholly owned
subsidiary of the Company, following theseparation of the Company's overseas
operations.
Business Outline
Construction consulting business mainly through ODA
in semi-developed and developing countries
Major Business Partners
Japan International Cooperation Agency (JICA)
World Bank, Asian Development Bank, governments,
etc.
Business Area

Business Area

United Kingdom, Ireland, Australia

Copyright © 2022 CTI Engineering Co., Ltd. All Right Reserved.

Bases in Japan, the Philippines, and Myanmar
Business targets: Asia, Africa, Middle East,
South America, etc.

▮ Consolidated Group Operations (Domestic Segment)
Japan Urban Engineering Co., Ltd.

Transpo.

&Urban

Business Outline

Business Outline

・Survey, planning, design,
supervision of architectural
construction and architectural
construction equipment.
・All-purpose PM & CM inarchitectural construction.
・Survey/appraisal of structures.
・Increasing lifespan of structures.
・Formulation of long-term
maintenance plans, etc.

Copyright © 2024 CTI Engineering Co., Ltd. All Rights Reserved.

Env&

SocialBusiness Outline

・Urban planning &community development.
・Land re-zoning.
・Urban re-development.
・Civil engineering design/development permits.
・Assess damages andcompensation.
・Post disaster reconstruction, etc.

NISSOKEN ARCHITECTS /ENGINEERS

Chi-ken Sogo Consultants Co., Ltd.
・Geological surveys/analysis.
・Groundwater/soil pollution
surveys.
・Planning/design of roads,
rivers, underground facilities.
・Planning and design for erosion control
disaster prevention.
・Disaster prevention: volcanos, slope failures, landslides.
Survey and formulation of countermeasures.

Transpo.

&
Urban

Environmental Research & Solution Co., Ltd.

Env&

SocialBusiness Outline

・Environmental surveys /analysis.
(Soil, groundwater, waste, exhaustgases, water quality, sediments,
bad odors, dioxins, PCB, asbestos,radiation)・Work environment measurements.
・Genetic analysis (environmental DNA, etc.)
・Consulting on soil pollution, wastewater
discharge, environmental assessments, etc.

35

2Q / 62th term (2024)
Financial Results[Supple men t ary Data]

CTI Engineering Co.,Ltd..

1. Order Status (Non-consolidated)(1) Orders received by month(JPY million, rounded down to the nearest million, %)Our company
Consulting Engineering (50 companies) (Note)
2022
2023
2024
2022
2023
2024
Amount Change Amount Change Amount Change Amount Change Amount Change Amount Change
(YoY)
(YoY)
(YoY)
(YoY)
(YoY)
(YoY)
Month
Jan.
48.5
(5.1)
10.4
22,956(0.7) 22,746(0.9) 26,720
17.5
2,601
2,468
2,725
Feb.
(9.3)
(0.9)
14.8
(6.0)
32,633
3.0 38,771
18.8 38,410
3,489
3,166
2,977
Mar.
17.7 11,106
14.8
75,636
2.7 81,481
7.7 94,586
16.1
9,676
9,046 (18.5)
Apr.
4.8
10.3
(6.3)
86,832(17.9) 89,173
2.7 95,812
7.4
8,931
9,851
9,230
May
(1.1)
(7.2)
9.1
49,6407.7 54,842
10.5 56,577
3.2
4,927
4,571
4,985
Jun.
(17.2)(9.9)
8.7
74,485(6.1) 77,547
4.1 81,440
5.0
5,118
5,562
5,010
Jul.
(20.5)(0.2)
63,407
0.2 70,025
10.4
4,287
4,279
Aug.
(4.5) 62,736
(4.0)
4.0
51,127
22.7
3,476
3,615
Sept.
(30.0)
24.6
52,8602.7 54,777
3.6
2,892
3,603
Oct.
(23.2)
74.1
40,218
7.7 46,626
15.9
1,970
3,431
Nov.
(14.2)
11.7
31,772
2.9 33,962
6.9
1,631
1,823
Dec.
2,222
1,451
(28.8)(34.7)
35,675
5.2 36,562
2.5(Note) Source: "Dynamic Survey of Construction-Related Industries, etc. (50 consulting engineering companies)"
published Ministry of Land, Infrastructure, Transport and Tourism, July 2024
Item(2) Cumulative Orders Received
Item

Our company
2022
2023
Amount Change Amount Change
(YoY)
(YoY)
Month
Jan.
(5.1)
48.5
2,601
2,468
Feb.
(7.5)
27.1
6,091
5,635
Mar.
21.2 16,741
6.2
15,767Apr.
14.7 26,592
7.7
24,699May
11.8 31,164
5.2
29,627Jun.
6.3 36,726
5.7
34,745Jul.
2.5 41,005
5.1
39,032Aug.
1.9 44,621
5.0
42,509Sept. 45,401(1.0) 48,224
6.2
Oct.
(2.1) 51,656
9.0
47,372
Nov. 49,003(2.6) 53,479
9.1
Dec. 51,226(4.1) 54,930
7.2(JPY million, rounded down to the nearest million, %)Consulting Engineering (50 companies)
2024
2022
2023
2024
Amount Change Amount Change Amount Change Amount Change
(YoY)
(YoY)
(YoY)
(YoY)
(0.9) 26,720
10.4
22,956(0.7) 22,746
17.5
2,725
1.2
55,5891.5
61,51710.7
65,1305.9
5,702(11.9) 131,225
2.2 142,998
9.0 159,716
11.7
14,749(9.8) 218,057(6.9) 232,171
6.5 255,528
10.1
23,980(7.1)
267,697(4.5) 287,013
7.2 312,105
8.7
28,965(7.5) 342,182(4.8) 364,560
6.5 343,545
8.0
33,975405,589(4.1) 434,585

7.1

456,716(4.1) 497,321

8.9

509,576(3.5) 552,098

8.3

549,794(2.7) 598,724

8.9

581,566(2.4) 632,686

8.8

617,241(2.0) 669,248

8.4* Reference data: Consolidated Orders Received(JPY million, rounded down to the nearest million, %)
2022
2023
2024
Amount Change Amount Change Amount Change
(YoY)
(YoY)
(YoY)
Six Months (January to June)
52,78510.1 58,923
11.6 54,545(7.4)
Full Year (January to December) 85,887
1.7 92,473
7.7

(JPY million)
60,000

Cumulative Orders Received
当社受注累計額（個別）(Non-Consolidated)

2024年
2023年
2022年

50,00040,00030,00020,00010,0000Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

Cumulative Orders Received(JPY million)
800,000

Consulting
Engineering (50 companies)
建設コンサルタント50社受注累計額

2024年
2023年
2022年

700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Jan. Feb. Mar. Apr.

May

Jun. Jul. Aug. Sept. Oct. Nov. Dec.

(Note) Source: "Dynamic Survey of Construction-Related Industries, etc. (50 consulting engineering
companies)" published Ministry of Land, Infrastructure, Transport and Tourism, July 2024

(3) Orders Received of Proposals and Comprehensive Evaluation bid (Non-Consolidated)(Items,%)2022
2023
2024 (2Q)
FY(2022.1 to 12)(2023.1 to 12)(2024.1 to 6)
Number of cases audited
Number of selected
Selected orders received rate

Orders received
in engineering competition

Items

2,500

2,000

1,966
943
48.0%

1,446
603
41.7%

Number of cases audited
審査済件数
Number of selected
特定件数（％）
Selected orders received rate
特定率

60.0%

2,243

50.0%

1,966

48.0%

44.4%
1,446

1,500

1,000

2,243
996
44.4%

943

41.7%

40.0%
30.0%

996
603

500

20.0%
10.0%

2022

2023

(2Q)
2024(中間）0.0%

2. Results by Business Sector (Consolidated)(2Q)
FY(JPY million, rounded down to the nearest million, %)Business Sector

Beginningbalance oforderscarriedforwardOrdersreceivedchange(YoY)

SalesAmountComposition change
ratio
(YoY)

Gross
profitGross
ProfitMargin%Balance oforderscarriedforward

Water & Land12,744
13,721 11.1
10,5994,120
38.9
15,86625.2
19.8
Transportation&
Urban
12,93011,772
10,192
3,038
29.8
14,510
(6.7)
24.4
14.3
.
2022 Environmental & Social
8,361
9,946 44.3
7,383
2,409
32.6
10,92417.7
13.7
Construction Mgmt.
3,058
2,821 (19.7)
1,836
624
34.0
4,043
4.3
19.8
Overseas
22,043
14,523 15.4
11,832
2,592
21.9
24,734
28.4
25.4
Total
59,13852,785 10.1
41,844
12,78530.6
70,080100.0
18.8
Water & Land
15,16914,30012,388
5,180
41.8
16,749
4.2
25.9
16.9
Transportation & Urban
13,675
11,94910,483
3,090
29.5
14,8721.5
22.0
2.92023 Environmental & Social
8,608
9,669 (2.8)
8,671
3,093
35.7
9,550
18.3
17.4
Construction Mgmt.
2,274
4,706 66.8
2,570
1,190
46.3
4,512
5.4
40.0
Overseas
25,034
18,297 26.0
13,5102,833
21.0
30,545
28.4
14.2
Total
64,761
58,923 11.6
47,623
15,38832.3
76,231
100.0
13.8
Water & Land
14,644
12,792 (10.5)
14,008
5,930
42.3
13,726
27.7
13.1
Transportation & Urban
13,56811,807 (1.2)
11,117
3,332
30.0
13,60821.9
6.02024 Environmental & Social
7,689
9,955
7,943
2,570
32.4
9,186
3.0
15.6
(8.4)
Construction Mgmt.
2,953
3,568 (24.2)
2,424
969
40.0
4,108
4.7
(5.7)
Overseas
26,497
16,421 (10.3)
15,253
3,183
20.9
28,299
30.1
12.9
Total
65,35354,545 (7.4)
50,746
15,98531.5
68,929100.0
6.6(Note 1) Due to the application of ASBJ Statement No. 29 Accounting Standard for Revenue Recognition starting in FY 2022, with theexclusion of orders received, the Year-on-Year change percentages shown here are for reference purposes.
(Note 2) Environmental Research & Solutions Co.,Ltd., which entered the scope of consolidation in FY 2022, is classified under theEnvironmental & Social Business Sector.

(Results [FY2023], Forecast [FY2024])
FY

Business Sector

Water & Land
Results

2023

Transportation & Urban
Environmental & Social
Construction Mgmt.
Overseas
Total
Water & Land

Forecast

2024 Transportation & Urban
Environmental & Social

2024

Construction Mgmt.
Overseas
Total

Beginningbalance oforderscarriedforward15,16913,6758,608
2,274
25,03464,761
14,644
13,568
7,689
2,953
26,49765,353(JPY million, rounded down to the nearest million, %)Ordersreceivedchange(YoY)

22,323
19,427
15,2445,165
30,312
92,473
22,20020,60015,8003,900
31,50094,000

5.8
4.2
1.0
54.1
9.4
7.7
(0.6)
6.0
3.6
(24.5)
3.9
1.7

Sales
Amount23,544
19,976
16,2294,723
28,58393,05724,00021,10016,3004,600
31,00097,000Composition
ratio

change
(YoY)

25.3
21.6
17.4
5.0
30.7
100.0
24.7
21.7
16.9
4.7
32.0
100.0

16.4
4.4
11.3
12.2
12.9
11.5
1.9
5.6
0.4
(2.6)
8.5
4.2

Gross
profit

8,995
5,297
4,932
1,855
5,979
27,060
9,410
5,900
4,910
1,580
6,600
28,400Gross
ProfitMargin

38.2
26.5
30.4
39.3
20.9
29.1
39.2
28.0
30.1
34.3
21.3
29.3

Balance oforderscarriedforward14,644
13,568
7,689
2,953
26,49765,353
12,844
13,0687,189
2,253
26,99762,353[Disclaimer]
These presentation materials contain forward-looking statements concerning plans, forecasts, corporate strategies, etc., and reflect information
available to the company at the time this results presentation was published and are based on assumptions deemed reasonable by management.
In light of the uncertainties inherent in these judgements and assumptions – resulting from possible changes in the overall economic climate,government policies affecting our business, changes to the tax code and in other policy areas, changes in the geopolitical climate, etc. – theCompany’s actual financial results could differ materially from these forward-looking statements.