ICHIKEN BUSINESS REPORT2024 Full-year: April 1, 2023 March 31, 2024
CROSS MUKOGAOKA (Kanagawa)Light Motor Vehicle Inspection Organization Fukuoka main office (Fukuoka)

LOISIR HOTEL KYOTO TOJI (Kyoto)

OFFICIAL FERRARI DEALER MID SAPPORO (Hokkaido)

GRAND PALACE OYODOKAHAN (Miyazaki)

Bringing the future to you through innovative living spaces

Stock Exchange Code:1847

June 26, 2024

Top message
Toward the centennial anniversary of foundation

Bringing the future to you
through innovative living spaces
Greetings
Thank you for your continued support and patronage.
First and foremost, ICHIKEN hereby extends our heartfelt condolences tothe victims of the Noto Peninsula Earthquake which occurred in January2024 and our deepest sympathy to those affected by the disaster.
We hereby report on the summary of
our business operations for the 98th fiscal year (April 1, 2023 to March 31,2024).
June 2024

Representative Director & President

Hiroyuki Hasegawa

Summary of business operations
In the social environment surrounding ICHIKEN for thecurrent fiscal year, although the economic recovery
driven by the post COVID-19 market trend is still
underway, an ongoing price transfer to products due tocost increases resulted in a good opportunity toovercome deflation. Amid this business environment, wenewly formulated our long-term business plan “Vision2030” and “Medium-term Business Plan (FY2023-2025).”
In the first year, net sales increased by 9.4% year on year
to 96,373 million yen. Profit also increased by 72.0%
year on year to 2,938 million yen, partly due to arecording of gain on sale of non-current assets.
In our forecasts for the business environment in the
future, our business will be affected by rising construction
material and energy prices while the trend of investment
to promote digitalization, enhance supply chains, copewith workforce shortage, and address other structural
challenges will continue. Starting the second year under
the Medium-term Business Plan, ICHIKEN will strive forachievement of “Vision 2030” along with our basic policy“We strive to stabilize our construction business while
expanding and enhancing our business fields.” We willproactively develop business expansion measures, notonly focusing on the immediate targets, but also keeping
in mind success in the future and beyond.
Restrictions on the upper limit of overtime hours has
been applied in the construction industry starting April
this year. We have been working to reduce overtime byraising awareness through visually representing labor
hours and by supporting IT-enabled operational efficiency
mainly in DX promotion projects. ICHIKEN is moving
forward to create an atmosphere which enables us tofurther promote work-life balance. In April this year, we
introduced a five-day workweek and revised annual paid
holidays, aiming to implement a work schedule in whichconstruction sites are closed for eight days every fourweeks. We also increased the base salary for all
employees, aiming to secure our workforce in the future
and as a proactive human capital investment. ICHIKEN
will continue to strive for working environment
improvement and human resource development forsustainable business and increase each of ouremployees’ satisfaction at work, thereby enhancing ourcorporate value.

Net sales

Ordinary profit

Full-year

88,059Operating profit(Unit: Millions of yen)

96,373Full-year(Unit: Millions of yen)

(Forecast)

4,100

97th fiscal year 98th fiscal year 99th fiscal year
(FY2022)(Current fiscal year) (Next fiscal year)(FY2023)(FY2024)

Full-year(Forecast)

4,100

2,667

Profit(Unit: Millions of yen)

(Forecast)

93,00097th fiscal year 98th fiscal year 99th fiscal year
(FY2022)(Current fiscal year) (Next fiscal year)(FY2023)(FY2024)

Full-year

4,020

2,938

4,000

2,585

97th fiscal year 98th fiscal year 99th fiscal year
(FY2022)(Current fiscal year) (Next fiscal year)(FY2023)(FY2024)(Unit: Millions of yen)
(Forecast)

2,900

1,708

97th fiscal year 98th fiscal year 99th fiscal year
(FY2022)(Current fiscal year) (Next fiscal year)(FY2023)(FY2024)

Vision 2030 and Medium-term Business PlanPICKUP 2023

PurposeManagement Philosophy
By striving to improve quality, ensuring thoroughsafety in construction, and always exercisingcreativity, ICHIKEN aims to materialize a
comfortableand prosperous society through our commercial
space business.

Management
Philosophy

Management Vision
Management Vision【ICHIKEN's Future Course and Vision and Outlook】

To be a construction
business operator that is
capable of not only
providing buildings thatoffer highcustomer satisfaction interms of both quality andprice but also considering
the global environment
for a sustainable society.

VISION 2030
A company thatsteadily grows
while contributing tosustainable
development ofsociety

VISION 2030
(FY2023 – FY2030)

The medium-term business plan (FY2023-2025)

Basic Policies
Strive for the stability of the construction business and the
expansion and enhancement of business areas
Stability of the construction business that is the coreof our business
Expansion of business areas for sustainable growth
Implementation of ESG (Environmental, Social, andGovernance) management
Net sales
ROE

Investment
Plan

93.0 bn¥

At least

8%

Operating profit
marginGrowth and expansion
Basic Policies
Sharing common understanding across theCompany using the internal portal site

Commercial building

Residential building

Wao City Misato vacant lot under development

AroundDividend payout
ratio
Around5%30%

Investment of approximately
10 billion yen

Business Measures
Strengthen earning capacity from commercial facilities
Promote digital transformation
Continue to consider capital and operational allianceswith operating companies in the construction and construction-adjacent sectors

Images taken by
the Company
using a drone

Opened in 1974 andclosed in 2022
Before demolition

Stabilize and enhance the core construction business, expand the realestate and overseas businesses as strategic businesses, and aim for the
expansion of business operations, including new businesses
Achieve steady growth with the business of construction of commercial
spaces at the corePursue quality, safety, environment, cost, and productivity as a group ofengineers
Strive for the enhancement and stability of our financial basePursue comfortable workplaces and elevate the abilities and sense of
reward in the work of each individual employee
Always respond to society’s needs and become a company that will standup to environmental changes
profitmargin100.0 bn Operating
Around 5%
Number of workforce
Total assets Around ¥90.0 bn (End of FY2030) Around 800 people
Net sales

Management
Targets(FY2030)

Akatonbo-hiroba Shopping Center*From total ¥30.0 billion investment category of VISION 2030

Construction
Business

DX Promotion Project Preparing for building a
specialized organization
Establishing BIM Promotion Dept.
Strengthening
the production BIM structure
Undertaking M&A in the construction businessrelated sector
Considering effective use of drones andpromoting acquisition of qualifications

Completion of the sale of hotel androoms Shin-Osaka
Termination of the master lease agreement for Wao City Misatobuildings
Undertaking planning, designing, and construction work for the vacant
lot use project (scheduled to be completed in July)
Undertaking closure, sale, and demolition of Akatonbo-hiroba Shopping
Center and a project for the use of the vacant lot is under development
Purchase and acquisition of Hakone-Gora property, start planning for
its useStability and enhancement

Long-term Business Plan “VISION 2030”

Construction Business/DX Promotion and M&A

Real Estate Business/Circular Real Estate Investment

The medium-term business plan (FY2023-2025)

Management
Targets

100th anniversary of foundation

Purpose【ICHIKEN's Values】

We aim to be a corporation that
contributes to society through thecreation of richly appointed andcomfortable living spaces.

Vision2030

Progress in First Year

Our Philosophy Structure

After demolition

Overseas Business/Demonstration of the Feasibility of Vietnam Business (IKVC)

Invest a total of ¥30.0 bn

Investment
plan

GrowthInvestments

Real EstateBusiness

Overseas
Business

Use M&A, etc.

Complement income fromconstruction business

Promote roll-out ofVietnam business¥10.0 bn

Started BIM operation work
Outsourcing from Japan, cooperation with
Construction Technology Support Dept.
Continue project management operations for
FujiMart, a Japan-based supermarket
Development of Vietnamese technical engineers,human resources exchange between Vietnam andJapan

Overseas
Business

Increase rental income
Expand sale and purchase transactions

Demonstrate the feasibility of Vietnam business(full-scale business activities, strengthen collaboration with IKVC)IKVC : ICHIKEN Vietnam Construction Co.,Ltd.

¥10.0 bn

Human
Resources
Development¥3.0 bn

Digitalization

Expand human capital Respond to digitalized society¥4.0 bn¥3.0 bn

BIM operation by IKVC

Strategic Business/New Business

Expansion of Human Capital/Human Resource Development and Work-style Reform
Real EstateBusiness¥

Real EstateBusiness

Started the application of the restrictions on theupper limit of overtime hours
Exchanged between new-graduate job applicantsand employees through a volunteer activity
Aiming for establishing comfortable workplaces
Business casual dress code
Hosted an internship BIM experience event

Overseas
Business
Introduced a business casual dress code

New Business

Secure profitable properties (increase real estate leasebusiness)
Create construction subcontracting projects that combine real estate development and sale/purchase
Promote Vietnam business
Consider approaches to construction-adjacent sectors,
including strengthening of existing businesses

WORKS PICKUP!
Our Work for Popular Commercial Establishments

Opening of MINOH Q’s MALL STATION Building

Official website of Q’s MALL ➡ https://qs-mall.jp

MINOH Q’s MALL STATION Building, constructed by ICHIKEN, was opened
on Saturday, March 23, 2024 together with the opening of the new MinohKayano Station of Kita-Osaka Kyuko Railway. The station directly connects to
the Osaka Metro Midosuji Line and features convenient access to central Osaka.

Property Description
Project name: (Tentative name) Minoh-Kayano Station
Front Area Development Project New
Construction
Construction period: From December 1, 2022 toFebruary 29, 2024
Construction site: 1-13-30 Nishijuku, Minoh City, Osaka
Structure: S-Structured, 3 above-ground floors
Use application: Stores/complex commercial facility
Site area: 3,296.14 m2
Total floor space: 6,962.13 m2
Project owner: TOKYU LAND CORPORATION
Design: Tokyu Architects & Engineers INC.
Construction: ICHIKEN Co., Ltd.
Store Building Construction Dept.,
Kansai (Osaka) Branch
Site manager: Shunichiro Mitsuoka

Our Design and Construction Work for Logistics Warehouses

Receiving a New Construction Order for the NITORI
Fukuoka Distribution Center (tentative name)Picture of NITORI Kobe Distribution Center

Orders for logistics warehouses have increased every year due to theincreasing demand for delivery arising from the expansion of the EC market,
the demand for reconstruction of aging buildings, and the rising need forconstruction partly due to logistics warehouses being considered aninvestment option in REITs.
With good evaluation for our design and construction work for the NITORI
Kobe Distribution Center, completed in November 2 0 2 2, we received a new
design and construction order for a distribution center in Fukuoka Prefecture,
Kyushu region, from NITORI Co., Ltd. (scheduled to be completed in 2025)

Actions on SDGs and ESG Materiality

Forest preservation volunteer activities

Sponsorship for Japan Blind Judo Federation

Led by the President, 40 members including employees
working in ICHIKEN’s Tokyo office and their families took part in“Tokyo Greenship Action,” a natural environmental protection
activities project held in the Matsuyama Forest Preservation Areain Kiyose City, a Satoyama area in Tokyo, for the second time.

ICHIKEN is pleased to become an official top partner tosponsor the Japan Blind Judo Federation. This is a part of ourinitiative for “sponsoring para-sports and female athletes,”
defined as one of our ESG materiality issues. We will continue topromote diversity through sponsoring sporting competitions.

We will continue to expand activities such as this to ourbranches all over Japan.

Let’s make a start! ICHIKEN’s SDGs and ESG

Official website: https://judob.or.jp/

Company Information
Company Profile(As of March 31, 2024)

Status of Shares

Trade name:ICHIKEN Co., Ltd.

Total number of authorized shares

Established:

June 1930

Total number of issued shares

Capital:4,329,646,860 yen(Including 25,231 treasury shares)(As of March 31, 2024)

22,240,000
7,284,400
6,643

Number of shareholders

Listed stock exchange: Tokyo Stock Exchange
Account closing month: March (once a year)
General construction; building lease; housing, commercial facilities development; planning, design andmanagement of complex commercial facilities; planning, design and management of specialty stores

Principal operations:

Distribution of shares by shareholder type (As of March 31, 2024)
Foreign corporations, etc.

Securities companies
257,130 (3.54%)

831,357 (11.45%)

Number of employees: 652
Hamamatsucho Bldg. 6F, 1-1-1, Shibaura, Minato-ku, Tokyo 105-0023

Headquarters:

Office Network(As of April 1, 2024)

Headquarters and Tokyo Branch
Kansai Branch
Kyushu Branch
Sapporo Branch
Nagoya Branch
Hiroshima Sales Office
Okinawa Sales Office

Overseas subsidiary: Hanoi, Vietnam
ICHIKEN Vietnam Construction
Co.,Ltd.

Director:

Hiroyuki Hasegawa
Hiroaki Masakiyo

Director:

Keiji Isono

Director:

Mitsuru Kotani

Other corporations

Individuals and other
2,946,566 (40.59%)

2,626,916（36.19%）

Major Shareholders

Company Officers
Representative Director& President:

Financial institutions
597,200 (8.23%)

Name Number(As of June 26, 2024)
President and Operating
Officer:Managing Executive
Officer:Managing Executive
Officer:Managing Executive
Officer:(As of March 31, 2024)
Number of shares held Shareholding ratio(shares)(%)

2,342,800

32.27

Zenkoku Ichieikai Shareholding Association

248,700

3.42

Keiji Isono

The Master Trust Bank of Japan, Ltd. (Trust account)

247,100

3.40

Mitsuru Kotani

Custody Bank of Japan, Ltd. (Trust account)

228,200

3.14

BBH LUX/BROWN BROTHERS HARRIMAN (LUXEMBOURG) SCA CUSTODIANFOR SMD-AM FUNDS - DSBI JAPAN EQUITY SMALL CAP ABSOLUTE VALUE

150,000

2.06

Hiroyuki Hasegawa

MARUHAN Corporation

Hiroaki Masakiyo

Outside Director:

Hideaki Takeuchi

Senior Operating Officer

Shingo Maeda(Promotion)

Outside Director:

Shunji Ichiji

Senior Operating Officer

Akira Nakamura

Hisami Hara

90,9001.25

Outside Director:

Hirotake Kubota

Senior Operating Officer

Akiyoshi Toyoshima

Masato Takeuchi

84,5001.16

Operating Officer

Nobutaka Ohta
(New election)

Hideki Utou

80,4001.10

Operating Officer

Ikuhisa Okuda

DFA INTL SMALL CAP VALUE PORTFOLIO

76,103

1.04

Operating Officer

Kouichi Narikawa

Sumitomo Realty & Development Co., Ltd.

74,1001.02

Operating Officer

Katsumi Aoi

Director (Audit and SuperviShiro Yuasa
sory Committee Member):Outside Director (Audit and SuTakashi Hatsuse
pervisory Committee Member):Outside Director (Audit and SuAkiko Inoue
pervisory Committee Member):Outside Director (Audit and SuSumihito Kido
pervisory Committee Member):Operating Officer

Kan Akashi

Operating Officer

Naruki Seo(New election)(Notes)1. The top 10 shareholders are listed.
2. The shareholding ratios were calculated as the ratio of the number of shares held to the total
number of shares outstanding, excluding treasury shares. Percentage figures are rounded
to the second decimal place.
3. Zenkoku Ichieikai Shareholding Association is a shareholding association consisting of theCompany’s business partner companies.

Make changes together
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SDGs Lessons for the Future
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SDGs MIRAI KAIGIICHIKEN was featured in a book published by
the SDGs MIRAI KAIGI project as “a company
committed to accomplishing the SDGs” with“ICHIKEN’s ZEB.”
SDGs and Discovering
Life Career BOOK
SDGs Lessons for the Future
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Hamamatsucho Bldg. 6F, 1-1-1, Shibaura, Minato-ku, Tokyo 105-0023
Telephone: +81 3 5931 5610
(9:00 a.m. to 6:00 p.m., excluding Saturdays, Sundays, national holidays and year-end and New Year holidays)