FY3/24 （Fiscal 2023） Financial Results（April 1, 2023 to March 31, 2024)
May 24, 2024

Disclaimer: This document is an English translation of the Japanese original. The Japanese original will prevail to the extent
that there is any conflict or discrepancy in meaning between the Japanese original and the English translation thereof.

1. FY3/24 Financial Results Outline

Conditions in the FY3/24 (April 1, 2023 to March 31, 2024)
・As far as the construction industry is concerned, trends in both public and private sector construction investment were
firm. In contrast, the surge in material and other prices as well as rising labor costs continued to impact the market
environment.

MarketEnvironment

・In the domestic civil engineering field, continued demand for large-scale comprehensive evaluation projects as well as
expressway, water / sewage facility, and other maintenance and renewal projects.

・From a domestic building construction perspective, continued distribution- and production-related facility demand.
・In countries where the Company operates, recovery in production-related and other facility demand from Japanesecompanies in North America centering on Mexico.

・While earnings declined on an increase in revenue, achieved the initial forecast for profit attributable to owners of parent.
・While factoring in additional costs arising from an incident in construction work underway, and despite a downturn in the

Our Status

profitability of certain large-scale projects, maintained a certain level of profit owing to the strict management of costs inthe civil engineering business.

・In the building construction business, achieved gross profit on completed construction contracts in line with initial
forecasts due to such factors as steady progress in construction and improved profitability.

3Highlights
Consolidated net sales (Billion yen)

394.1

(YoY Change +5.9% / Change from Initial Forecast ▲1.5%)■ The progress of ongoing large-scale construction projects and other factors
contributed to net sales of completed construction contracts

Consolidated
Operating Profit (Billion yen)
Consolidated Operating Profit Margin

18.5

4.7 %

(Consolidated Operating Profit
YoY Change ▲ 6.4% / Change from Initial Forecast ▲ 9.3%)(Consolidated Operating Profit Margin YoY Change ▲ 0.6P / Change from Initial Forecast ▲ 0.4P)■ Increase in gross profit
・Despite a downturn in the profitability of certain civil engineering projects,
YoY increase in gross profit on completed construction contracts owing tosteady progress in ongoing construction projects and improved profitability
both mainly in the building construction business.
■ Increase in selling, general and administrative expenses
・Increase in personnel, operating overhead, and other expenses

Non-consolidated
Orders received (Billion yen)

351.2

(YoY Change +0.9% / Change from Initial Forecast ▲6.3%)■ YoY increase on the back of orders received from comprehensive evaluation
tunnel construction and other projects in the civil engineering business■ Decrease from the previous fiscal year when the Company received multiple
large-scale orders in the building construction business(Billion yen)

500

Trends in Consolidated Net Sales

Consolidated Net Sales

400
300
200
100
0

(Billion yen)

40
30

340.2

372.1

394.1

FY3/22

FY3/23

FY3/24

Trends in Consolidated Operating Profit

0(Billion yen)

5.3%
26.6

FY3/22

200
100
0

19.8
FY3/23

Trends in Non-consolidated Orders received

400
300

10%

7.8%

20
10

Consolidated Operating Profit
Consolidated Operating Profit Margin

309.8
122.5

187.2
FY3/22

4.7%

5%

18.5
FY3/240%

Civil engineering
Buiding construction

348.2

351.2

103.2

115.6

244.9

235.5

FY3/23

FY3/24

4

［Consolidated］ Operating Results

FY3/23

FY3/24(Apr.1,2022‐Mar.31,2023)(Apr.1,2023‐Mar.31,2024)

Initial Forecast

Result(May 2023)

YoY
ChangeResultChange from
Initial Forecast

Net Sales

372.1

400.0

394.1

＋5.9%

▲1.5%

Gross profit

42.0

43.5

43.3

＋3.1%

▲0.4%

(11.3%)(10.9%)(11.0%)(▲0.3P)(＋0.1P)

Selling, general andadministrative expenses

22.1

23.0

24.7

＋11.5%＋7.5%

Operating profit

19.8

20.5

18.5

▲6.4%

▲9.3%

(Operating profit
margin)(5.3%)(5.1%)(4.7%)(▲0.6P)(▲0.4P)

Ordinary profit

19.6

19.7

18.5

▲5.4%

▲5.9%

Profit attributable toowners of parent

15.1

13.6

13.8

▲8.6%

＋2.0%

(Gross profit margin)(Unit: Billion yen. Rounded down to the unit) (Ratios are rounded off)5

［Consolidated］ Balance Sheets
FY3/23(Apr.1,2022‐Mar.31,2023)

Result ①

Result ②

245.3

Current assets

72.6

Non-current assets

318.0

Total assets

164.2

Current liabilities

12.4

Non-current liabilities

176.6

Total liabilities
Total net assets

141.3

Total liabilities andnet assets

318.0Interest-bearing debt

(Billion yen)

Debt/Equity ratio *Equity ratio (%)

FY3/24(Apr.1,2023‐Mar.31,2024)(times)

249.9
84.2

334.1
166.5
13.1

179.6

Change
②－①

＋4.5
＋11.5
＋16.1
＋2.2
＋0.6
＋2.9

154.4

＋13.1

334.1

＋16.1

24.1

23.6

▲0.4

0.17

0.15

▲0.02

44.2

46.0

＋1.8P

* Debt/Equity ratio: Interest - bearing debt／ Equity（Net assets - Non controlling interests）

・Cash and deposits (▲25.3)
・Notes receivable, accounts receivablefrom completed construction contracts
and other (+36.4)
・Buildings and structures (+3.9)
・Machinery, vehicles, tools, furnitureand fixtures (+1.2)
・Investment securities (+3.2)
・Other (▲3.4)
・Accounts payable for construction
contracts and other (+0.8)
・Advances received on construction
contracts in progress (+0.2)
・Deposits received (+4.1)
・Provision for warranties forcompleted construction (▲0.6)
・Long-term borrowings (▲0.2)
・Provision for employee stock
ownership plan trust (+0.4)
・Other (▲1.8)
・Capital surplus (+5.9)
・Treasury shares (▲0.4)
・Valuation difference on available-forsale securities (+2.7)
・Deferred gains or losses on hedges(+1.7)
・Remeasurements of defined benefit
plans (+2.3)
・Other (+0.7)(Unit: Billion yen. Rounded down to the unit) (Ratios are rounded off)6

［Consolidated］ Statements of Cash Flows
FY3/23(Apr. 1, 2022- Mar. 31, 2023)

Cash flows from operating activities

FY3/24

FY3/24(Apr. 1, 2023- Mar. 31, 2024)

Movements in Principal AccountingLine Items▲11.1

・Profit before income taxes (+18.9)
・Depreciation (+2.4)
・increase in retirement benefit liability (+1.9)
・increase in trade receivables (▲36.4)
・increase in costs on construction contracts inprogress (▲1.3)
・decrease in other inventories (+2.9)
・decrease in consumption taxes refund receivable(+3.0)
・increase in deposits received (+4.1)
・income taxes paid (▲6.9)

32.2

Cash flows from investing activities

▲4.7

▲6.0

・Purchase of short-term and long-term investment
securities (+1.4)
・Purchase of property, plant and equipment (▲7.0)

Cash flows from financing activities

▲18.4

▲9.0

・Increase/repayment of long-term borrowings (▲0.3)
・Dividends paid (▲7.9) *Effect of exchange rate change on cash
and cash equivalents

0.4

0.7

Net increase (decrease) in cash and cash
equivalents

9.5

▲25.4

Cash and cash equivalents at end of period

74.3

48.8

* Dividends paid comprise the period-end dividend for FY3/23 and interim dividend for FY3/24(Unit: Billion yen. Rounded down to the unit)7

2. Details of Non-Consolidated Financial Results

［Non-consolidated］ Orders Received

FY3/23

FY3/24(Apr.1,2022‐Mar.31,2023)

Result(Apr.1,2023‐Mar.31,2024)

Initial Forecast（May 2023）

ResultYoY
ChangeChange From
Initial Forecast

Orders Received

348,220

375,000

351,204

＋0.9%

▲6.3%

Civil engineering

103,274

125,000

115,624＋12.0%▲7.5%

Domestic

99,322120,000

111,951＋12.7%▲6.7%

Overseas

3,952

5,000

3,672

▲7.1%

▲26.5%

244,946

250,000

235,579

▲3.8%

▲5.8%

Domestic

221,519230,000

204,986▲7.5%▲10.9%

Overseas

23,42620,00030,593＋30.6%＋53.0%

Building construction(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)9

［Non-consolidated］ Net Sales of Completed Construction Contracts/

Gross Profit on Completed Construction Contracts
FY3/23

FY3/24(Apr.1,2022‐Mar.31,2023)

Result(Apr.1,2023‐Mar.31,2024)

Initial Forecast（May 2023）

ResultYoY
ChangeChange From
Forecast

Net sales of completed
construction contracts

339,634

363,000

357,473

＋5.3%

▲1.5%

Civil engineering

133,430

133,000

133,223

▲0.2%

＋0.2%

Building construction

206,203

230,000

224,249

＋8.8%

▲2.5%

Gross profit on completed
construction contracts

38,474

40,10039,620

＋3.0%

▲1.2%

（Construction gross profit margin）(11.3%)(11.0%)(11.1%)(▲0.2P)(＋0.0P)

21,246

21,50020,225

▲4.8%

▲5.9%

(15.9%)(16.2%)(15.2%)(▲0.7P)(▲1.0P)

17,227

18,60019,394＋12.6%＋4.3%(8.4%)(8.1%)(8.6%)(＋0.3P)(＋0.6P)

Civil engineering

Building construction(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)10

［Non-consolidated］ Year-end Backlog

FY3/23(Apr.1,2022‐Mar.31,2023)

ResultFY3/24

Change(Apr.1,2023‐Mar.31,2024)

ResultYoY
ChangeYear-end Backlog

528,070

522,985▲5,084▲1.0%

Civil engineering

290,138

272,819▲17,318▲6.0%

Domestic

282,598

268,673▲13,925▲4.9%

Overseas

7,539

4,146

▲3,393▲45.0%

237,931

250,166＋12,234＋5.1%

Domestic

223,361

226,864＋3,502＋1.6%

Overseas

14,56923,301＋8,731＋59.9%

Building Construction(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)11

3. Forecast of Earnings FY3/25 Full Fiscal YearOur Understanding of FY3/25 Earnings Forecasts• While the market in Japan continues to recover, conditions warrant continued close monitoring of a variety of factors,
including rising geopolitical risks, soaring raw material prices due to the weak yen, and the impact of fluctuations infinancial and capital markets.
• As far as the construction industry is concerned, while both public and private sector investment remain firm, need tomaintain a close eye on material and other price hikes, upswings in unit labor costs, and procurement.
【Initiatives】• Continuously improve quality management systems and pursue high quality through business activities that are basedon safe, secure, high-quality good building operations.
• In continuing to adhere to a policy that focuses on profitability at the time orders are received and keeping in mind theneed to secure total profit, engage in the strategic selection of projects while maintaining a balance between the need tosecure a construction work structure and systems, business volumes and profitability.
• Accurately reflect material prices and the portion of anticipated increase in labor costs in estimates.
• Share project information with partners companies to secure labor at an early stage and ensure systematic allocation
with a view to the future.

13

［Consolidated］ Forecast for Full Fiscal Year
FY3/24(Apr.1,2023‐Mar.31,2024)

ResultNet sales
Gross profit

394,128
43,313

FY3/25(Apr.1,2024‐Mar.31,2025)

Full-year
forecast

406,200
48,800Trends in Consolidated Net Sales（Million yen）

YoY
Change+3.1%+12.7%(Gross profit margin)(11.0%)(12.0%)(+1.0P)

Selling , general andadministrative expenses

24,721

25,900+4.8%

Operating profit

18,591

22,900+23.2%(Operating profit margin)(4.7%)(5.6%)(+0.9P)

Ordinary profit

18,545

22,100+19.2%

Profit attributable toowners of parent

13,87815,200(+9.5%)(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)

500,000
400,000
300,000
200,000

340,293372,146

394,128

406,200

FY3/23（Result）

FY3/24（Result）

FY3/25（Forecast）

100,000
0

FY3/22（Result）

Trends in Consolidated Operating Profit and Consolidated
Operating Profit Margin（Million yen）
30,0007.8%

Consolidated Operating Profit

9.0%
5.3%

4.7%

20,00010,0000Consolidated Operating Profit Margin

26,600FY3/22（Result）

19,853

18,591

FY3/23（Result）

FY3/24（Result）

5.6%
6.0%

22,900FY3/25（Forecast）

3.0%

0.0%

14

［Non-consolidated］ New Orders (Full-year forecast)（Million yen）

FY3/24(Apr.1,2023‐Mar.31,2024)

Orders Received
Civil
engineering
Domestic
Overseas
Building
Construction
Domestic
Overseas(Apr.1,2024‐Mar.31,2025)

Full-year
forecast

Result351,204
115,624
111,951
3,672

600,000

FY3/25375,000
125,000
115,000
10,000

YoY
Change

+6.8%
+8.1%
+2.7%
+172.3%

235,579

250,000+6.1%

204,986

230,000+12.2%

30,59320,000▲34.6%(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)

400,000
200,000
0[Non-consolidated] Changes in Orders Received/
Changes in Year-end Backlog
518,683

528,070

522,985

522,985※
309,843

FY3/22（Result）

348,220351,204

375,000

FY3/23（Result）

FY3/24（Result）

FY3/25（Forecast）

Year-end Backlog

Orders Received※Figures are calculated for convenience using the following formula:Year-end backlog as of March 31, 2024 + Forecast orders for the fiscal year ending March 31, 2025
– Forecast net sales of completed construction contracts for the fiscal year ending March 31, 2025
（Million yen）

[Non-consolidated] Changes in Civil engineering orders received

250,000
200,000
150,000

122,593160

100,000
50,0000（Million yen）

122,432

FY3/22（Result）

200,000

125,000

3,672

10,00099,322111,951

115,000

FY3/23（Result）

FY3/24（Result）

3,952

FY3/25（Forecast）
Domestic
Overseas[Non-consolidated] Changes in Building construction orders received

300,000
250,000

115,624

103,274

187,250

244,946
23,426

235,579
30,593250,000
20,00012,773150,000
100,000
50,0000174,476

FY3/22（Result）

221,519

204,986

FY3/23（Result）

FY3/24（Result）

230,000

FY3/25（Forecast）
Domestic
Overseas15

［Non-consolidated］ Net Sales of Completed Construction Contracts/

Gross Profit on Completed Construction Contracts (Full-year forecast)
FY3/24(Apr.1,2023‐Mar.31,2024)

ResultTrends in Net Sales of Completed Construction Contracts

FY3/25(Apr.1,2024‐Mar.31,2025)

Full-year
forecast

YoY
ChangeNet sales of completed
construction contracts

357,473375,000+4.9%

Civil engineering

133,223

125,000▲6.2%

Building construction

224,249

250,000+11.5%

Gross profit on completed
construction contracts

39,620(Construction gross profit
margin)(11.1％)(12.1%)(+1.0P)

20,225

19,100▲5.6%

Civil engineering+14.6%

300,000
200,000
100,000
0(15.3%)(+0.1P)

132,264

178,526

FY3/22（Result）

339,634
133,430

357,473
133,223

375,000
125,000

206,203

224,249

250,000

FY3/23（Result）

FY3/24（Result）

FY3/25（Forecast）

Civil engineering gross profit on completed construction contracts

Building construction gross profit on completed construction contracts
Civil engineering construction gross profit margin（Million yen）

Building construction gross profit margin
Construction gross profit margin

42,09016.2%
40,00038,47415.9%

21,467
21,24630,00019,39426,300+35.6%(8.6％)(10.5%)(+1.9P)

10,000039,62020,622

FY3/22（Result）

45,400

15.2%

15.3%

20,225

19,100

13.5%
11.6%

20,000(Unit: Million yen. Rounded down to the unit) (Ratios are rounded off)

310,790

Civil engineering

Trends in Gross Profit on Completed Construction Contracts andConstruction Gross Profit Margin

50,000(15.2％)
Building construction

45,400

Building construction（Million yen）
400,000

11.3%

11.1%

8.4%

8.6%

12.1%
10.5%

26,30017,227

FY3/23（Result）

19,394

FY3/24（Result）

FY3/25（Forecast）

20.0%

16.0%

12.0%

8.0%

4.0%

0.0%

16

Shareholder Returns
Medium-Term Management Plan 2025 Key KPI /Total Return Ratio of 70% or More in the Final Fiscal Year of the Medium-Term Management Plan (FY3/26)■ Dividends

Dividend Policy
HAZAMA ANDO’s basic policy is to pay consistently stabledividends, taking into consideration business performance,
consolidated financial results, future earnings, and other factors.
Interimdividend

Period-end
dividend

Total

Dividend
Payout ratio(consolidated)

FY3/24（Result）

¥30

¥30

¥60

67.7%

FY3/25（Forecasts）

¥30

¥30

¥60

61.8%

■ Purchase of Own Shares

HAZAMA ANDO considers the purchase of its own shares as one
important means through which the Company can return profits
to shareholders. The Company will consider and undertake thepurchase of its own shares in a flexible manner while
comprehensively keeping in mind a variety of factors, including
investments for growth, the Group’s business performance andfinancial condition as well as the need to improve capitalefficiency and further return profit to shareholders.

Trends and Forecasts for Annual Dividends,
Dividend Payout Ratio, and Total Return Ratio

(Yen)
140

124.9%

130
120
110
100

FY3/25 forecast
Basic earnings per share¥97.05

64.9%

60

30
10
0

61.9%

5.2%
5

8

FY3/14

FY3/1512
FY3/1640.5%

20
FY3/17

FY3/18

50%
60

30

30

30

FY3/19FY3/20FY3/21

Annual Dividend/ShareDividend Payout Ratio

70%

40%

14.1%

25

80%
60%

42.5%

33.4%

19.4%

14.8%

90%

67.7%
61.8%

35.5%

50

20.4%

120%
100%

66.4%

40

130%
110%

80
70

140%

108.1%

90

20

150%

40

60

40

30%
20%
10%

FY3/22

FY3/23

FY3/24

Share Buyback/ShareTotal Return Ratio

FY3/25
Forecast

0%17

Action to Implement Management that is Conscious of Cost of Capital andStock Price
FY/3/23

PBR

0.95 times

≒

ROE

×

10.8%

Ratio of profit to net sales ： 4.1％

Total asset turnover ratio : 1.21 times： ¥372.1 billion↑

Profit attributable toowners of parent： ¥315.1 billion↓

Equity： ¥140.4 billion↑

Total assets： ¥318.0 billion↑(Equity ratio 44.2％)

1.21 times↑

9.4% ↓

Ratio of profit to net sales ： 3.5％

Total asset turnover ratio : 1.21 times
Financial leverage : 2.18 times(Equity ratio 46.0％)

9.10 times

13.38 times↑

Net sales： ¥394.1 billion↑

Profit attributable toowners of parent： ¥313.8 billion↓

Equity： ¥153.5 billion↑

Total assets： ¥334.1 billion↑＜Status of Equity and ROE＞

• Despite achieving forecasts at the beginning of the period, profit attributable to owner of parent declined YoY.
• Against the recent backdrop of depreciation in the value of the yen and rising stock prices, shareholders' equity(accumulated other comprehensive income) increased.
→ROE declined YoY, falling short of the 10% target set under Medium-Term Management Plan 2025.
• While total assets also increased due to the growth investment progress under the Medium-Term Management
Plan (new Tohoku Branch office building and Technical Research Institute facilities), the equity ratio
climbed from 44.2% to 46.0%.

<Initiatives Aimed at Increasing Corporate Value>

Trends in PBR（Times）

Net sales

Financial leverage : 2.26 times

FY3/24

PER• Continue to engage in BS management that targets an equity ratio of around 40% (announced in 2021).
• Steady progress in measures outlined in our Medium-Term Management Plan.
• Continue to promote IR and SR activities in a bid to deepen shareholders’ and investors’ understanding of ourbusiness and to increase the equity spread.

2.0
1.5

＜Period-end share price(yen)＞
→
904
→
856
→

849

1.08

1.09
1.0

1,186
1.21

0.95

0.5
0.0

FY/3/21

FY3/22

FY3/23

FY3/24

Trends in ROE and PER
20.0
15.0

12.2

10.0
5.0
0.0

9.45

FY/3/21

12.3

9.15

10.8
9.10

FY3/22

FY3/23

ROE(%)PER(Times)

13.38

9.4

FY3/2418

Additional Costs Arising for Construction Work Underway (Disclosed on May 14, 2024)■ Outline of construction work
Name of construction
work

Installation of a seawall (seawater pump room area section) and other construction work at Tokai No. 2 Power Plant

Constructor

Joint venture between HAZAMA ANDO CORPORATION, PENTA-OCEAN CONSTRCTUION CO., LTD., and WAKACHIKU CONSTRUCTION
CO., LTD.

Contractee

Construction site

The Japan Atomic Power Company

Tokai-mura, Naka-gun, Ibaraki Prefecture■ Incidence of additional costs

・In cooperation with concerned parties to foundation work for a steel guard wall, including the contractee, the Company undertook an investigation of the south
and north side foundations to determine the cause of an incident; after considering repair and reinforcement plans based on the results of this investigation,
preparations are presently underway to commence the necessary work.
・Based on the progress of studies undertaken to date and a reasonable assessment of the impact on profit and loss, we are projecting the incidence of additional
cost of approximately ¥6.2 billion for repairs and other work. (Additional costs will be recognized over a certain period of time based on progress in theperformance of obligations under the construction work contract)■ Impact on the Company’s business results・Consolidated financial results for FY3/24, which factor in the incidence of additional costs, are as outlined in the Company’s Consolidated Financial Results for
the Fiscal Year Ended March 31, 2024 disclosed on May 14.
・After determining such matters as repair and reinforcement plans, the Company will disclose details in a timely and appropriate manner should it become clearthat there will be a significant impact on the Company’s consolidated financial results forecast for FY3/25.

■ Countermeasures

・For large and difficult construction projects, the Company has long taken all appropriate measures to put in place a support system from its head office. In
response to this incident, HAZAMA ANDO has established the Thoroughly Committed to Quality. Project under the direct control of the president and vicepresident, and strengthened its on-site support system.
・In addressing this incident, HAZAMA ANDO will assign more experienced experts from its construction and technical departments as support personnel foreach construction project. In conjunction with efforts to ensure thorough risk management, the Company will endeavor to prevent risks by strengthening
systematic monitoring and support systems, while also placing the highest priority on quality.

19

4. Progress of Medium-Term Management Plan 2025
(Fiscal 2023 (FY3/24) to Fiscal 2025 (FY3/26))

Overview of the First Fiscal Year of Medium-Term Management Plan 2025
・ Although consolidated ordinary profit and ROE fell short of first fiscal year plans, profit levels are

forecast to improve substantially from FY3/25 on the back of a firm order environment and an increase inprofitability in construction business.

・ Certain level of results in non-financial KPIs owing to the implementation of various priority measures,

including efforts to upgrade and expand investment in human capital.

Progress of Medium-Term Management Plan 2025 KPIs
Fiscal 2023
Results

Fiscal 2024
Forecast(The final fiscal year of the MediumTerm Management Plan)¥18.5 billion¥22.1 billion¥26.5 billion

ROE

9.4％

11%

12% or more

Total return ratio

69.2％

ー*

70％ or more

Employee engagement score

75％

78%

80％ or more

Under calculation

26.8％
18.0％

34% or more
21% or more

Consolidated ordinary profit

GHG emissions
reduction rate
Scope 1+2
Scope 3
* Forecast dividend payout ratio: 61.8%

Fiscal 2025

21

Progress of Medium-Term Management Plan 2025
（Enhancing Business Growth）
Progress

Construction
Business

・HAZAMA ANDO continues to maintain a high level of profit in each of the civil engineering and building construction businesses. In the civilengineering business, steps are being taken to leverage the Group’s technological capabilities in such areas of strength as urban civil engineering,
mountain tunnel civil engineering, and power civil engineering. In the building construction business, the Company continues to secure orders
with a focus on profitability, particularly for distribution- and production-related facilities.
・The Company continues to develop and promote a life cycle assessment (LCA) method for buildings.
・HAZAMA ANDO acquired BELS certification with respect to its ZEB renewal work.
・Acquired BIM BSI Kitemark certification.

NonConstruction
Business

Group
Business

・Plans to introduce BIM model maintenance management that contributes to the advancement of building services under consideration.

・The Tohoku Branch Building (Sendai ANDO HAZAMA Building) completed as a first step in the Company’s efforts to promote the Facility
Management (FM) business.
・Continued to improve the utilization rate of PCa plants owned by the Company and to promote PCa use.
・Continued to strengthen cost competitiveness through centralized purchasing.

・Initiated steps to establish a medium-scale building complex development project through Group companies; commenced construction in
August.
・Commenced in-house operation of generative AI focusing on the construction field.

DX・Developed a scaling-point detection system as a part of the integrated mountain tunneling management systems (i-NATM®).

・Undertook a joint verification trial to realize a wide-area high-speed wireless environment utilizing local 5G and other technologies atconstruction sites.
22

Progress of Medium-Term Management Plan 2025
（Increasing the Value of Human Capital/Promoting ESG Management）
Quantitative Indicators (FY3/26 Final
Fiscal Year of the Medium-Term
Management Plan)E

GHG emissions
Contribute(compared with FY3/18)
to theScope 1+2 Reduce by at least 34%*
realization
Scope 3
Reduce by at least 21%*of adecarbonized Scale of renewable energy 80 MW
society(HAZAMA ANDO equity conversion)

Increase thevalue ofhuman
capital

S Address theissue ofhuman rights
Promoteregional
development

Human resources investment(compared with FY3/23)¥5.5 billion increase
Employee engagement score at least
80%*
Number of certified employees Increase byat least 10%
Number of female managers 60 persons
Rate of education and training attendance
100%

FY3/24
ResultUnder calculation

45MW¥3.1 billion
75%
Up approx.2%
38 persons
100%

3 cases or more (three-year cumulative total) 2 cases ongoing

Progress of Priority Measures
・Undertook a review of the 1.5°C scenario SBT; steps underway withrecertification imminent.

・In the renewable energy business, while solar power generation plant projects
progressed generally as planned, continued to adopt a cautious approach
toward the selection and operation of development projects, with an emphasis
on profitability.
・Undertook a review of compensation levels and steps to upgrade and expand
training content in line with plans.
・Employee engagement score came in at 75%, up three percentage points
compared with FY3/23.

・Conducted examination preparation training to help employees acquire firstclass architect and other qualifications.

・Number of female managers as of the end of March 2024: 38 (up nine from 29
as of the end of March 2023).
・Conducted human rights and LGBTQ education and training (Rate ofattendance: 100%).
・Currently considering regional decarbonization based on a regional
comprehensive partnership agreement with Buzen City.

・Took steps to support health promotion events based on a partnershipagreement with Kuki City and startups.

* Medium-Term Management Plan 2025 KPI
23

Progress of Medium-Term Management Plan 2025
（Increasing the Value of Human Capital/Promoting ESG Management）
Quantitative Indicators (FY3/26 Final
Fiscal Year of the Medium-Term
Management Plan)

FY3/24
ResultTransition to
a company
with an audit
Ratio of external Board directors A majority 60%
andRatio of female Board directors 30% or more 30%
supervisorycommittee,
etc.
Establish the
Sustainability
G Committee,
etc.

Promote ESG management at four annual
meetings

Held three times

Progress of Priority Measures
・Transitioned to a company with an audit and supervisory committee in June
2023; achieved a ratio of external directors of 60% and a ratio of female Board
directors of 30%.

・The ratio of external directors and ratio of female Board directors projected tocome in at 67% and 33%, respectively, following the FY3/24 Annual General
Meeting of Shareholders.
・Established the Sustainability Committee in June 2023; held meetings in August,November, and March.
・Administered a human rights due diligence survey to partner companies that
employ foreign technical interns.

Reduce policy* See P. 25
shareholdings

24

[Reference] Progress in Reducing Strategic Shareholdings
PolicyWork to reduce the ratio of the market value balance sheet amount of stock holdings (the net asset amount for unlistedcompanies) to less than 10% of the consolidated net asset amount as of the end of March 2026 (the final fiscal year of theMedium-Term Management Plan)

Objective

Strengthen efforts to promote capital efficient management and enhance corporate value through the effective use of
cash generated from the sale of strategic shareholdings

Reduction
StatusDespite progress in reducing the number of stocks by 15 (six listed and nine unlisted company stocks) the ratio toconsolidated net assets climbed from 18.6% to 19.2% owing to such factors as the upswing in valuation of listed shares.

* Policy to reduce strategic shareholdings: Details announced in November 2023. Data in the graphs that runs across the bottom of the page outline the status of reduction, including shares deemed
to be held (shares contributed to retirement benefit trust).
(Billion yen)

(Number)25

Growth Investments ー progress ーPrevious MediumTerm Management
Plan Results

Medium-Term
Management Plan Period
FY3/24 – FY3/26

FY3/24
Results

Energy business・Selected as the best proposal in connection with the “Selection of Project
Candidates for the Installation and Operation of the Yoshinosegawa Dam
Hydroelectric Power Plant (tentative name).
・Secured six new solar power generation power purchase agreement projectcontracts.
・Power generation facility construction underway following the completion of
investment in the Sakaide Biomass Power Generation and other projects.

4.5

10.0

0.22

Real estate business/
Infrastructure
management business・The Tohoku Branch Building (Sendai ANDO HAZAMA Building) completed and put
into operation as a first step in the Company’s efforts to promote the Facility
Management (FM) business.
・Steps taken to plan and promote the effective use of other owned facilities in the
FM business.
・Initiated steps to establish a medium-scale building complex development projectthrough Group companies; commenced construction in August.
・Took an equity interest in temporary employment agency and BIM development
companies; incorporate into the scope of consolidation as affiliated companies.

2.9

10.0

3.45

Partner strategic
investment

・Took an equity interest in temporary employment agency and BIM development
companies; incorporate into the scope of consolidation as affiliated companies.
・Ongoing review of multiple projects.

0.1

10.0

0.11

Innovation investment,
Technology
development
investment, Other

・Centrifugal loading test apparatus completed at the Company’s Technical ResearchInstitute; steps taken to promote active use and accelerate technology development
in conjunction with the thermal environment facilities that were newly established in
the previous fiscal year.
・Installation of a large shaking table at the Technical Research Institute underconstruction; scheduled for completion in FY3/25.
・Commenced phase two of the Hazama Ando Next-Generation Energy Project witha view toward the use of CO2-free hydrogen.

11.6

10.0

3.47

19.1

40.0

7.25

Field

Progress

Total amount(Unit: Billion yen)26

Performance Targets in the Medium-Term Management Plan 2025 (Consolidated)
Consolidated Financial Results
FY3/23Plan

FY3/24

FY3/25Results

Plan

Forecast

Plan

Forecast

Net sales¥400.0 billion¥394.1 billion¥422.2 billion¥406.2 billion¥438.2 billion¥441.0 billion

Gross profit¥43.5 billion¥43.3 billion¥47.7 billion¥48.8 billion¥50.3 billion¥53.4 billion

Selling, general andadministrative expenses¥23.0 billion¥24.7 billion¥23.9 billion¥25.9 billion¥23.2 billion¥26.3 billion

Operating profit¥20.5 billion¥18.5 billion¥23.8 billion¥22.9 billion¥27.1 billion¥27.1 billion

Ordinary profit¥19.7 billion¥18.5 billion¥23.0 billion¥22.1 billion¥26.5 billion¥26.5 billion

10%

9.4%

11%

ー

69.2%

ー

ROE
Total return ratio* FY3/24 dividend payout ratio: 67.7%

Medium-Term Management Plan 2025 KPI

12%Medium-Term Management Plan 2025 KPI

70% or more

Medium-Term Management Plan 2025 KPI

27

Presentation materials are a collection of slides prepared for IR purposes and not intended
to solicit investment in the securities issued by the Company.
This document also contains information on future prospects based on current plans,estimates, forecasts, and projections by Hazama Ando Corporation with respect to
the Company’s business and industry trends.
These forward-looking statements are therefore subject to various risks and uncertainties.