ICHIKEN BUSINESS REPORT
2022

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Ace Japan Headquarters and Plant (Soraku District, Kyoto)
Denmark Inn Tsutsujigaoka (Tokyo)(Assisted living apartment building)

Ice no ie (Yubari District, Hokkaido)

Bringing the future to you through innovative living spaces

Stock Exchange Code: 1847

November 29, 2022

Top message
To ward the c e nte nnia l a nnive r s a r y of f ound a tion

Bringing the future to you through innovative living spaces
Greetings
Thank you for your continued support and patronage.
We hereby report on the summary of our business operations for the first half of the 97th fiscal year (April 1,2022 to September 30, 2022).
September 2022

Hiroyuki Hasegawa

Representative Director & President

Summary of business operations
The state of the economy surrounding Japan remains
uncertain due to factors such as the global increase inenergy costs caused by the Ukraine situation and fluctuations in financial markets resulting from the sharp fall inthe yen.
Although we cannot predict how COVID-19 will unfold
going forward, the Japanese government is accelerating
measures for living with the disease, such as encouraging travel throughout Japan, lifting the ban on visiting Japan as individuals, and removing limits on the number ofinternational arrivals, in an effort to facilitate economic recovery from the pandemic.
Amidst this business environment, we set a goal togrow into a company that exceeds 100 billion yen in net
sales by our 100th anniversary in 2030 and are driving business activities to achieve it.
As we work toward this long-term goal, orders in thefirst half of the fiscal year — the last year of our current
medium-term business plan — came to 39,520 million yen,
a 10% decrease from the previous fiscal year, due to factors such as intensified competition and an increase inconstruction costs resulting from the surge in materials
prices. Net sales increased to 44,534 million yen, but profit
decreased to 1,106 million yen due to a slowdown in grossprofit and posting of provisions.

Net sales■ First half ■Full-year (Unit: Millions of yen)

(Full-year forecast)

88,62444,32595th fiscal year
(FY2020)

83,77637,91190,00044,53496th fiscal year 97th fiscal year
(FY2021)(Current fiscal year)(FY2022)

We aim to recover in the second half to achieve ourfull-year performance target, but in order to enhance opportunities to return profit to shareholders this fiscal year,
we have decided to pay dividends from surplus twice per
year — one interim dividend and one year-end dividend— instead of paying one year-end dividend per year.
Currently there is a pressing need for the constructionindustry to engage in efforts to comply with the overtime
limits that will go into effect in April 2024.
We have been working to reduce overtime by improving awareness through visualizing work hours and facilitating the improvement of operational efficiency with IT. In
June, we launched the DX Promotion Project to drive
digital transformation in anticipation of the coming digitized society. Focusing first on the construction site, weare bringing initiatives into full swing to increase productivity and rectify overtime by improving work efficiency.
Furthermore, as a company listed on the Tokyo Stock
Exchange Prime Market, we have declared our endorsement of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), an organizationthat aims to actively promote the disclosure of financial
information on climate change. As part of our efforts torealize a sustainable society, we will carry out ESG management which will in turn lead to enhancing our corporate value.

Operating profit

Ordinary profit

Profit■ First half ■■ First half ■■ First half ■

4,758

2,265

Full-year (Unit: Millions of yen)

4,674

(Full-year forecast)

4,440

2,292

4,6734,636

2,230

2,285

96th fiscal year 97th fiscal year
(FY2021)(Current fiscal year)(FY2022)(Full-year forecast)

3,161

4,340

1,539

95th fiscal year
(FY2020)96th fiscal year 97th fiscal year
(FY2021)(Current fiscal year)(FY2022)Full-year (Unit: Millions of yen)

(Full-year forecast)

2,985

3,000

1,697
1,106

1,642

1,666

95th fiscal year
(FY2020)

Full-year (Unit: Millions of yen)

95th fiscal year
(FY2020)96th fiscal year 97th fiscal year
(FY2021)(Current fiscal year)(FY2022)

WORKS PICKUP!
Discovering ICHIKEN’s ZEBs (Net-Zero Energy Buildings)

Acquired BELS and ZEB-Ready certification for the Former Yokohama
Minami Ward General Government Building Site Development Plan
*1

*2

What is ZEB?
A Net-Zero Energy Building (ZEB) is a building designed in pursuit of cutting energy consumed inbuilding operations to nearly zero by conserving energy and using renewables while maintaining thequality of the indoor environment.

VIERRA Maita opened on October 20, 2022. JR West Real Estate & Development
Company was selected as the contractor in an open call for bids for a problem-solving
project using the site of the former Yokohama Minami Ward General Government Building in August 2019 and the project started.
In response to needs for sustainable buildings toward a decarbonized society as ameasure against global warming, we proposed to convert the property into a ZEB as a
ZEB Planner, in accordance with Yokohama’s Zero Carbon Yokohama declaration whichaims to realize a decarbonized society and JR West Real Estate & Development Company’s environmental guidelines which state to “contribute to the advancement of communities and society as a whole through environmentally-friendly urban development.”
This will be the fourth complex commercial facility to be converted into a ZEB in Japan (at the time of the June 2020 plan). Unlike other properties like office buildings,
making a commercial facility a ZEB is a concerted effort requiring the participation ofboth the building owner and tenants. Therefore, our first task was to gain the tenants’
understanding on ZEB and convince them. Meeting conditions such as insulation, highly efficient equipment, and solar power, three companies jointly applied for ZEB certification: building framework and common area owner JR West Real Estate &Development Company as the head applicant, along with the main tenants Life Corporation of the supermarket area and Nissei Real Estate Co., Ltd. (RENNAISSANCE) ofthe sports club area. The building obtained the highest possible ranking in BELS (5stars) and acquired ZEB-Ready certification.
Going forward, the state of energy consumption will be able to be ascertained with aBEMS*3. Aiming to conserve energy further in the future, we will consider ZEB projects
that incorporate new ZEB technology based on the results of this project and continueto drive environmental initiatives even more.

Property Description
Project name: 	(Tentative name) Development of Siteof Former Yokohama Minami Ward
General Government Building
Facility name: 	VIERRA Maita
Construction period: 	From August 17, 2020 to September 30, 2022
Opened on: 	October 20, 2022
Construction site: 	48-1 Hananoki-cho 3-chome, Minami-ku,
Yokohama
Structure: 	RC-structured basement floors,
S-structured above-ground2 basement floors, 4 above-ground
Use application: 	Complex commercial facility with retailstores, restaurants, sports club, andmore
Site area: 	4,399.83 m2
Building area: 	3,504.30 m2
Total floor space: 	16,549.23 m2
Client: 	JR West Real Estate & Development
CompanyDesign/management: 	ICHIKEN Co., Ltd.
Constructor: 	ICHIKEN/Ootani Kensetsu Joint Venture
Site manager: 	Akihito Takeuchi, Store Construction &Interior Dept. 1, Tokyo Branch
ReduceEnergyconservation
CreateEnergy neededin conventionalbuildings

Energy usedin ZEBs

Energycreation

Energy createdin ZEBs
Net zero energy
consumption!

*1 BELS: Building-Housing Energy-efficiency Labeling System. A system in which a third-party rating agency assesses and certifies abuilding’s energy conservation performance.
*2 ZEB-Ready: A building that consumes at least 50% less primary energy than the standard primary energy consumption rate byconserving energy.
*3 BEMS: Building and Energy Management SystemICHIKEN

PurposeContentofInitiatives

Goals

TOPICS

Launched DX Promotion Project

Take the lead in utilizing IT and digital technologies
with a focus on digital transformation (DX) to facilitate operational efficiency, a priority ESG materiality.
⃝Implement function to promote IT measures company-wide⃝Ensure implementation and use of equipment thatimproves the productivity of worksite operations⃝Decide official company-wide standardized apps
and equipment to implement and use in the DXprocess⃝Rectify overtime hours⃝Formulate DX vision

DX:Digital transformation

DX

Expected effects of DX

Work style reforms⃝Implement “8 days off in a 4-weekperiod” at worksites⃝Improve retention rate of worksite
employees⃝Reduce overtime⃝Changing lifestyles
(Improve awareness and satisfaction of workers)

Securing future talent⃝Pass on know-how through digitalization

Company Information(As of September 30, 2022)

Company Profile

Status of Shares

Trade name:ICHIKEN Co., Ltd.

Total number of authorized shares

Established:

June 1930

Total number of issued shares

Capital:4,329,644,860 yen(Including 24,831 treasury shares)

22,240,000
7,282,400
5,154

Number of shareholders

Stock exchange listing: Tokyo Stock Exchange Prime Market
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:

Number of employees: 657

Foreign corporations, etc.

Individuals and other454,753 (6.26%)

2,830,976 (39.01%)

Securities companies

Hamamatsucho Bldg. 6F, 1-1-1, Shibaura, Minato-ku, Tokyo 105-0023

Headquarters:

Distribution of shares by shareholder type141,024 (1.94%)

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

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

Financial institutions
1,153,700 (15.90%)

Other corporations
2,677,116 (36.89%)

Major Shareholders
Number of shares held Shareholding ratio(shares)(%)

Name

2,342,800

32.28

The Master Trust Bank of Japan, Ltd. (Trust account)531,700

7.32

Custody Bank of Japan, Ltd. (Trust account)

316,900

4.36

Zenkoku Ichieikai Shareholding Association

228,300

3.14

BBH LUX/DAIWA SBI LUX FUNDS SICAV - DSBIJAPAN EQUITY SMALL CAP ABSOLUTE VALUE

150,000

2.06

Trustee of specified securities trusts: SMBC Trust
Bank Ltd.

142,800

1.96

Hisami Hara

99,9001.37

Masato Takeuchi

84,5001.16

Sumitomo Realty & Development Co., Ltd.

78,0001.07

Hiromi Hara

62,0000.85

MARUHAN CorporationCompany Officers
Representative Director& President:

Hiroyuki Hasegawa

President and Operating
Officer:

Hiroyuki Hasegawa

Director:

Tomoharu Yunokuchi

Managing Operating
Officer:

Tomoharu Yunokuchi

Director:

Keiji Isono

Managing Operating
Officer:

Keiji Isono

Director:

Mitsuru Kotani

Managing Operating
Officer:

Hiroaki Masakiyo

Outside Director:

Hideaki Takeuchi

Operating Officer:

Mitsuru Kotani

Outside Director:

Shunji Ichiji

Operating Officer:

Minoru Tanaka

Outside Director:

Hirotake Kubota

Operating Officer:

Akira Hamano

Operating Officer:

Akiyoshi Toyoshima

Operating Officer:

Ikuhisa Okuda

Operating Officer:

Akira Nakamura

Operating Officer:

Kan Akashi

Operating Officer:

Shingo Maeda

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:(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 tothe second decimal place.
3. Z enkoku Ichieikai Shareholding Association is a shareholding association consisting of theCompany’s business partner companies.

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