Material on the Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
YAHAGI CONSTRUCTION CO., LTD. Code no.: 1870 (Listed on Prime Market of Tokyo
Stock Exchange and Premier Market of Nagoya Stock Exchange)

May 21, 2024
©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

1

Contents
Ⅰ

Company Overview

P. 3

Ⅱ

Financial Results for the FYEMarch 31, 2024

P. 15

Ⅲ

Financial Forecasts for the FYEMarch 31, 2025

P. 27

Ⅳ

Medium-Term Management Plan

P. 34

Ⅴ

FACT SHEET

P. 49

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

2

Ⅰ
Company Overview©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

3

Company Overview
Company nameYAHAGI CONSTRUCTION CO., LTD.

Headquarters

3-19-7, Aoi, Higashi-ku, Nagoya-shi, Aichi, Japan

Representative

Mitsuhiro Takayanagi, President and Representative Director

FoundedBusiness description
CapitalMarkets listed on
Number of employees
Offices

May 14, 1949

*75th anniversary

General construction business [architectural business, civil engineering business, real estate business]¥6,808 million
Prime Market of Tokyo Stock Exchange and Premier Market of Nagoya Stock Exchange
1,324 (consolidated)Tokyo, Osaka, Tohoku (Sendai), Hiroshima, Kyushu (Fukuoka)

Group companies

YAHAGI REAL ESTATE Co., Ltd.
Techno Support Co., Ltd.
HOKUWA CONSTRUCTION, INC.

Major shareholders

1. Nagoya Railroad Co., Ltd.
2. The Master Trust Bank of Japan, Ltd. (Trust account)
3. Yahagi Construction Business Partner Shareholding Association
4. Resona Bank, Limited.
5. MUFG Bank, Ltd

YAHAGI BUILDING AND LIFE CO., LTD.
YAHAGI ROAD CO., LTD
Minamichita Mirai Partners Co., Ltd.

YAHAGI GREEN Co., Ltd.
Nanshin Takamori Development Co., Ltd.

19.1％
7.7％
6.8％
4.7％
4.7％
（As of March 31, 2024）©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

4

YAHAGI CONSTRUCTION: Who we areThree keywords representing the characteristics of YAHAGI CONSTRUCTION
Design and construction
Design andconstruction

With our design division being one of the largest in the Tokai area, we haveestablished an integrated system that covers steps from design to construction
to propose solutions to customer problems from the planning/design stage.

Real estate business
Real estatebusiness

Tokai area

In addition to the construction business, we also engage in the real estatebusiness such as the development of land for industrial use in cooperation
with administrative authorities and local communities and the sale ofcondominiums under our own brand.

Tokai area
Since our establishment in 1949 in the present-day city of Toyota, wehave been operating mainly in the Tokai area and have become arepresentative general construction company in the Tokai area.

An engineering-oriented, mid-sized general contractor based in the Tokai area with strengths
in design and construction as well as the real estate business©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

5

History
Diversification and expansion ofmanagement

Industrialization of construction

Foundation to 1970
•

•

1949

1967

1960

Received the first order from
Nagoya Railroad for construction
work inside the rail tracks.

Promoted diversification of businesses, including
expansion into condominiums for sale andgreenery businesses.

1971 1972
EstablishedYAHAGI GREEN
Co., Ltd.

2013 and onward• In response to the bursting of the economic bubble, worked on the • Working on business expansion in the economic zone
which will be established through the opening of theselection and concentration of management resources, such as
maglev train line (maglev economic zone) by stepping
moving away from a business structure dependent on public
up efforts for large-scale projects and strengthening
works and focusing on aseismic reinforcement projects centeredreal estate development.
on the PITA Column method.

1982

1989

Listed on the Second
Section of Market at the
Nagoya Stock Exchange.

Expanded into the condominiums forsale business.

1991

1993

Promoted to the First
Section of Market at the
Nagoya Stock Exchange.

1995 1996
Listed on the First
Section of Market at theTokyo Stock Exchange.

2000

2001

2006

Established YAHAGIROAD CO., LTD.

Established Techno Support
Co., Ltd.

Launched the Vent Vert Series of YAHAGIREAL ESTATE.
First VENT VERTThe Company was established in
Koromo-cho, Nishikamo-gun, Aichi(present Takyocho, Toyota-shi).

Re-growth and further leaps

1991 to 2012

1971 to 1990

Aggressively introduced large-sized heavymachinery such as motor scrapers to work
vigorously toward mechanization andindustrialization.

1950

Selection and concentration of management
resources

2014

2023
Made HOKUWACONSTRUCTION, INC.
a subsidiary.

Established Railway Technology
Training Center.

Developed PITA Column
method.

Pavilion Series

Merged with Meitetsu Construction Co., Ltd.

Developed the PAN Wall method.

Established Institute of Earthquake Engineering &Technology (currently Engineering Center).

Introduced two motor scrapers.

Established YAHAGI REAL ESTATE Co., Ltd. and International Development Building Co.,
Ltd. (currently YAHAGI BUILDING AND LIFE CO., LTD.)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

6

Trends in financial results
Foundation to 1970

1971 to 1990

• Aggressively introduced large-sized heavy• Promoted diversification of businesses, including
machinery such as motor scrapers to work vigorously
expansion into condominiums for sale and greenerytoward mechanization and industrialization.
businesses.

Selection and concentration ofmanagement resources

Re-growth and further leaps

1991 to 20122013 and onward• In response to the bursting of the economic bubble,• Working on business expansion in the maglev
worked on the selection and concentration of
economic zone by stepping up efforts for largemanagement resources, such as moving away from ascale projects and strengthening real estatebusiness structure dependent on public works anddevelopment.
focusing on aseismic reinforcement projects centered on
the PITA Column method.

Trends in financial results (in JPY 100 mil.)Net sales (right scale)2011
Great East
Japan Earthquake

Operating profit (left scale)

1991
Bursting of economic bubble

Consolidated©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

FY2025 net sales
target ¥130 billion

2013 and onward
Abenomics

2008
Global financial crisis

Non-consolidated

FY2030 net sales
target ¥200 billion

30(Forecast)Diversification and expansion ofmanagement24(Forecast)
25(Forecast)

Industrialization of construction（Fiscal year)

7

YAHAGI ENGINEERING
A construction engineering company that meets customer needs at every stage of the building life cycle
Beyond merely constructing buildings, we provide new value that only the Yahagi Construction Group can realize, by integrating the specialized know-how
of the Group companies that are well-versed in each field with unique technologies dedicated to their respective fields.

YAHAGI REAL ESTATEYAHAGI ROAD

Condominiums for sale business
Real estate development business
Real estate leasing business
Real estate brokerage business

Paving business
Civil engineering business
Manufacture and sales of asphalt mixture
Recycling business

Utilization of land

Planning/
designConstruction

YAHAGI BUILDING AND LIFE

Techno Support

Apartment and building management businessArchitectural business

PAN Wall (an earth reinforcement method using
panels and “soil nails” for slope protection) business
PITA Column (a seismic retrofitting method using
external reinforcing for existing buildings) businessTechnological development, trial experience
production

Building
management

Maintenanceand building
diagnostics

Renewal/renovation

YAHAGI CONSTRUCTIONHOKUWA CONSTRUCTIONYAHAGI GREEN

Nanshin Takamori Development

Architectural business
Civil engineering business
Real estate businessArchitectural businessGreenery business
Golf course management business

Operation of golf courses(Takamori Country Club)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

8

Architectural business
LOGI'Q Shiraoka II (Shiraoka City, Saitama Pref.)Composition of net sales by use(FYE March 2024)

Factories

PROUD Tower Kasugai (Kasugai City, Aichi Pref.)その他
5%Others

Logistics
facilities
Commercial
facilities

Contributing to the revitalization of the local economy
through participation in land improvement projects

Housingcomplexes

IKEA Nagakute (Nagakute City, Aichi Pref.)Major clients
Nomura Real Estate
Development
Mitsui Fudosan
MITSUBISHI ESTATEDAIKYOSekisui HouseDAIWA HOUSEINDUSTRYGLP Japan
IKEA Japan
Nagoya Railroad

Project to redevelop the area around the station tocreate a new bustle

Contributing to global furniture/interior retailer’s first
store opening in the Tokai region©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

9

Civil engineering businessYorii Town Obusuma land readjustment project(YoriiTown, Osato County, Saitama Pref.)Composition of net sales by use(FYE March 2024)Land
development

その他
5%
OthersConstruction of Shin-Tomei Expressway Gotemba
Interchange (Shizuoka Pref.)Road
construction
PAN Wall method

Rezoning projects that contribute to the revitalization of
the local community

Railroadrelated

Nagoya Railroad Inuyama Line Hotei Station
main line track (Konan City, Aichi Pref.)Major clients
Ministry of Land,
TOYOTA HOUSING
Infrastructure,
JGC
Transport and Tourism Toyo Engineering
Central NEXCO
Aichi Prefecture
Nagoya Railroad

Contributing to the development of robust social
capital, including by helping to make the Tomei
Expressway a double-network
Contributing to safe and stable transportation via
railroad©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

10

Real estate businessi Missions Park Kuwana Development Project(Kuwana City, Mie Pref.)Composition of net sales by use(FYE March 2024)
Real estateleasing

Obu Tokai Development Project (Obu City and Tokai
City, Aichi Pref.)OthersCondominiums
for sale

Real estate
sales

Real estate development that rapidly meets
customer needs
VENT VERT Chiryu The MarkReal estate development realized incollaboration with companies, administrative
authorities and local communities

Condominium business completed within our Group
from product planning to sales and management©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

11

YAHAGI CONSTRUCTION in figures
Net Sales (FYE March 2024)

Operating profit (FYE March 2024)

Operating profit margin (FYE March 2024)¥119.8 billion¥9.5 billion

7.9%＊Record high＊Record highPayout ratio (FYE March 2024)

Expected dividend yield

YAHAGIENGINEERING

39.9%
Cumulative construction area using PAN Wall method(as of the end of March 2024)

Design and construction ratio

Number of engineers(FYE March 2024)(as of the end of March 2024)

384,000㎡

92.9%*Equivalent to as large as 8.2 times the size ofPercentage of building construction orders received(excluding demolition and repair)Tokyo Dome(building area)

5.3%＊Calculated based on the annual dividend forecast of ¥80 for
FYE Mar 2025 and the closing price of ¥1,501 on May 10, the day
after the announcement of financial results.

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

158 first-class architects
384158first-class building operation
first-class architects
and management engineers

384first-classfirst-class building operation and338
civil engineering work
operation and management engineer
12Management

President andRepresentative
Director
Mitsuhiro Takayanagi

Vice President andRepresentative Director
Shuji Nawa

Vice President andRepresentative Director
Takashi Yamashita

Director and Senior
Managing Executive Officer
Osamu Goto

General Manager of Civil
Engineering Business
Division

General Manager ofCorporate Division

General Manager of SalesManagement Division

Outside Director
Shinji Ishihara

Outside Director
Yuka Nakagawa

Outside Director
Hideomi Ban

Head of Ishihara Law
OfficeProfessor of School of
Law at Chukyo
University

Chairman and
Representative Directorof Bankaku Co., Ltd.

Full-Time Audit &Supervisory Board
MemberJunichi Kurimoto

Director and Senior Managing
Executive Officer
Kenji Shimizu
General Manager ofArchitectural Business
DivisionFull-Time Audit &Supervisory Board
MemberMasafumi Igaki

Director
Hiroki Takasaki
President, Representative
Director, Chief Executive
officer of Nagoya Railroad
Co., Ltd.

Outside Audit &Supervisory Board
MemberYoshitaka Aichi
Representative partner and
COO of Attax Tax Accountant
OfficeOutside Audit &Supervisory Board Member
Yuzo Okamoto
Representative partner of
MARK Consultants Inc.

（As of March 31, 2024）©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

13

Skills matrix
Name

Position in the Company

Committee membership

Corporate
management

Sales and real estatedevelopment

Technology and IT

Mitsuhiro Takayanagi

President and Representative
Director

CSR/ESG Committee(Chairperson)
Nomination and Remuneration
Committee(Chairperson)

✓

✓

✓

Shuji Nawa

Vice President andRepresentative Director

CSR/ESG Committee(Vice Chairperson)

✓

✓

✓

Takashi Yamashita

Vice President andRepresentative Director

CSR/ESG Committee(Vice Chairperson)✓

Osamu Goto

Director and Senior Managing
Executive Officer

CSR/ESG Committee✓

Kenji Shimizu

Director and Senior Managing
Executive Officer

CSR/ESG Committee✓

Hiroki Takasaki

Director

Shinji Ishihara

Outside Director(Independent officer)

Nomination and Remuneration
Committee✓✓✓

Yuka Nakagawa

Outside Director(Independent officer)

Nomination and Remuneration
Committee✓✓✓

Hideomi Ban

Outside Director(Independent officer)

Nomination and Remuneration
Committee✓✓

Junichi Kurimoto

Full-Time Audit & Supervisory
Board Member

✓

✓

✓

Masafumi Igaki

Full-Time Audit & Supervisory
Board Member

✓

✓

✓

Yoshitaka Aichi

Outside Audit & Supervisory
Board Member(Independent officer)

✓

✓

✓

Yuzo Okamoto

Outside Audit & Supervisory
Board Member(Independent officer)

✓

✓

✓

✓

✓

✓

Personnel and labor
relations

Up to four major skills, etc. possessed by each person are marked with a check mark ”✓.”

©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Finance andaccounting

✓
✓
✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Compliance and risk
management✓(As of March 31, 2024)

14

Ⅱ
Financial Results for the Fiscal
Year Ended March 31, 2024

©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

15

Highlights of consolidated financial results for the fiscal year
ended March 31, 2024
 Net sales
Net sales increased by ¥8.7 billion year on year and reached ¥119.8 billion, setting a new record high.

 Profit
Along with a significant increase in gross profit, operating profit increased by ¥2.3 billion year on year to ¥9.5 billion, while profit attributable toowners of parent increased by ¥1.9 billion year on year to ¥6.4 billion, all of which setting new record highs.

Net sales (JPY mil)Operating profit (JPY mil)YoY ¥8.7 bn. (7.8%)

Profit attributable to owners of parent (JPY mil)YoY ¥2.3 bn. (31.9%)
Operating profit margin

YoY ¥1.9 bn. (43.4%)
7.9%

Return on sales

5.4%

5.2%

Record high

6.6%

6.5%

119,824

4.1%

Record high111,110

Record highRecord
6,462
high

9,514

93,090

4,842

7,212

4,508

6,169

2022.32023.32024.3[Reference] Highest record as of the previous fiscal year:¥111,110 million in FYE March 2023

2022.32023.32024.3[Reference] Highest record as of the previous fiscal year:¥7,764 million in FYE March 2020©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

2022.32023.32024.3[Reference] Highest record as of the previous fiscal year:¥5,158 million in FYE March 202016

Consolidated financial results for the fiscal year ended March 31, 2024
(Millions of Yen)

Net sales
Net sales of completed construction
contracts
Net sales in real estate business and other

Gross profit(Gross profit margin)
Gross profit on completed construction
contracts
Gross profit on real estate business andotherSelling, general, andadministrative expenses
Operating profit(Operating profit margin)

Ordinary profit(Ordinary profit margin)

Profit attributable to owners ofparent(Return on sales)FYE March
2022
ActualFYE March2023
Actual

78,993

94,26596,23014,096

16,84523,594

14,935

16,59019,797(16.0%)
10,379(14.9%)
10,822(16.5%)
9,584

4,555

5,768

10,212

8,765

9,377

6,169
(6.6%)
6,174

93,090111,110FYE March
2024
Actual119,824

Year on year
Increase/
Changedecrease

8,714

7.8%

1,965

2.1%

6,749

40.1%

3,206

19.3%
1.6pt

▲1,237▲11.4%

10,282

905

9.7%

7,212
(6.5%)

9,514(7.9%)

2,301

9,588

2,329

(6.6%)

7,259(6.5%)

31.9%
1.4pt
32.1%

(8.0%)

4,842

4,508

6,462

(5.2%)(4.1%)(5.4%)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

4,443

77.0%

1.5pt
1,954

43.4%
1.3pt
17

Factors for increase or decrease in net sales/operating profit(vs results for the fiscal year ended March 31, 2023)
 Net sales・・・Increased by ¥8.7 billion year on year, setting a new record high.

Construction business: Net sales increased by ¥1.9 billion year on year mainly due to the inclusion of HOKUWA CONSTRUCTION, INC., as a consolidated subsidiary at the end of the previous fiscal year.
Real estate business:
Net sales increased significantly by ¥6.7 billion year on year due to the sale of large-scale self-developed land for industrial use (lot No. 1 of the Obu Tokai Development Project).

 Profit

・・・Operating profit increased by ¥2.3 billion year on year, setting a new record high.

Construction business: Profit decreased by ¥1.2 billion year on year due to the large number of construction projects with low profitability compared to the previous fiscal year.
Real estate business:
Profit increased significantly by ¥4.4 billion year on year due to the sale of self-developed land for industrial use with high profit margins.
SG&A :
Expenses increased by ¥0.9 billion year on year due to increased investment in human resources such as raises in employee salaries and bonuses as well as stronger
recruitment, and higher expenses associated with increased business activities and other factors.

Net sales (JPY mil)YoY ¥8,714 mil.

Operating profit (JPY mil)YoY ¥2,301 mil.

Gross profit on completed building construction ▲1,723
Revenue from
Revenue fromcompletedcompleted
construction contracts
construction contracts(previous fiscal year)(current fiscal year)
64,32965,464➡
Gross profit margin on
completed construction
contracts(previous fiscal year)
7.9%➡

+4,443Gross profit margin on
completed construction
contracts(current fiscal year)

9,514

5.1%

7,212

Revenue from
Revenue fromcompletedcompleted
construction contracts construction contracts(previous fiscal year) (current fiscal year)
29,93630,766➡
Gross profit margin on
Gross profit margin on
completed construction completed construction
contracts
contracts(current fiscal year)(previous fiscal year)
19.2%
➡
20.3%
Gross profit on completed civil engineering +486

FYE March2023
ActualBuilding
construction

Civilengineering

Real estatebusiness©2024

FYE March
2024
ActualFYE March2023
ActualEffect of increase in revenue Effect of deterioration in Effect of increase infrom completed construction gross profit margin on revenue from completed
contracts
completed construction construction contracts(building construction)
contracts(civil engineering)(building construction)

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Effect of improvementin gross profit margin
on completed
construction contracts(civil engineering)

Real estatebusiness

Increase in
SG&A

FYE March
2024
Actual18

Comparison with financial forecasts(Millions of Yen)

Net sales
Net sales of completed construction
contracts
Net sales in real estate business and other

Gross profit(Gross profit margin)
Gross profit on completed construction
contracts
Gross profit on real estate business andotherSelling, general, andadministrative expenses
Operating profit(Operating profit margin)

Ordinary profit(Ordinary profit margin)

Profit attributable to ownersof parent(Return on sales)FYE March 2024

FYE March 2024

Forecast

Actualvs forecasts
Increase/decrease

Achievement rate

122,000

119,824▲2,17598.2%

98,70023,30096,23023,594▲2,469294

97.5%
101.3%

19,70019,79797100.5%(16.1%)
9,400(16.5%)
9,584

184

0.4pt
102.0%

10,30010,212▲87

99.1%

10,20010,28282

100.8%

9,500

9,514

14

100.2%(7.8%)(7.9%)

9,500

88(7.8%)

9,588(8.0%)

100.9%
0.2pt

6,300

6,462

162

102.6%(5.2%)(5.4%)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

0.1pt

0.2pt
19

Factors for increase or decrease in net sales/operating profit(vs financial forecasts)
 Net sales・・・Fell short of the forecast by approximately ¥2.1 billion.

Construction business: Fell short of the forecast mainly due to delays in works of some large building construction projects as a result of process reviews.
Real estate business: Generally in line with the forecast due to the completion of the planned sale of large-scale self-developed land for industrial use.

 Profit

・・・Operating profit was in line with the forecast at ¥9.5 billion.

Construction business: Generally in line with the forecast due to factors such as the improved profit margin of civil engineering projects despite the decreased profit margin of building construction projects.
Real estate business:
Generally in line with the forecast due to the completed sale of large-scale self-developed land for industrial use.
SG&A:
Generally in line with the forecast.

Net sales (JPY mil)vs forecast ¥2,175 mil.

Operating profit (JPY mil)vs forecast ¥14 mil.

Gross profit on completed building construction ▲1,061
Revenue from
Revenue fromcompleted construction completed construction
contracts (actual)contracts (forecast)
65,46468,000➡

+294

Gross profit margin Gross profit margin
on completed
on completed
construction
construction
contracts (forecast) contracts (actual)
➡
6.5%
5.1%

119,824

+66

9,514

+10
Revenue from
Revenue fromcompletedcompleted
construction
construction
contracts
contracts(forecast)(actual)37,00030,766➡
Gross profit margin on Gross profit margin on
completed construction completed construction
contracts (actual)contracts (forecast)
16.3%
20.3%
➡
Gross profit on completed civil engineering +1,245

FYE March
2024
Forecast

Building
construction

Civilengineering

Real estatebusiness©2024

FYE March
2024
ActualFYE March
2024
Forecast

Effect of decrease inrevenue from completed
construction contracts(building construction)

Effect of deterioration ingross profit margin on
completed construction
contracts(building construction)

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Effect of increase inrevenue from completed
construction contracts(civil engineering)

Effect of improvementin gross profit margin
on completed
construction contracts(civil engineering)

Real estatebusiness

Increase in
SG&A

FYE March
2024
Actual20

<Overall status by segment> Architectural business Orders received
Increased significantly by ¥37.9 billion year on year due to the record-high orders for construction of large logistics facilities received.

 Net sales
Increased by ¥1.1 billion year on year due to an increase in condominium construction works, mainly as a result of the inclusion of HOKUWACONSTRUCTION, INC., as a consolidated subsidiary at the end of the previous fiscal year.

 Gross profit
Decreased by ¥1.7 billion year on year due to the large number of projects with low profitability compared to the previous fiscal year.

Orders received by use (JPY mil)Net sales by use (JPY mil)Gross profit (JPY mil)YoY ¥37.9 bn. (59.3%)

YoY ¥1.1 bn. (1.8%)

YoY ¥1.7 bn. (34.0%)■Condominium construction works■General construction works

60,07213,806■Condominium construction works■General construction works

102,006

64,32913,343

11,444

Consolidated gross profit margin

65,4649.3%
7.9%50,30064,034

16,623
4,669

16,430

5,062

5.1%

14,326
88,663

46,21649,7082022.32023.3

3,339

52,885

48,8402023.32024.333,8702024.32022.3©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

2022.32023.32024.321

<Overall status by segment> Civil engineering business Orders received
Decreased by ¥1.5 billion year on year, mainly due to a decrease in orders for private-sector works despite an increase in orders for large governmental
projects received.

 Net sales
Increased by ¥0.8 billion year on year due to steady progress in private-sector works.

 Gross profit
Increased by ¥0.4 billion year on year due to increased profit from the acquisition of changes corresponding to an increase in amount for some large
projects that have been completed.

Orders received by use (JPY mil)YoY ¥1.5 bn. (4.4%)■Governmental projects■Private-sector works ■PW works
34,48532,95832,567

12,88615,083

15,481

15,190

4,200

4,212

2022.32023.3

Net sales by use (JPY mil)Gross profit (JPY mil)YoY ¥0.8 bn. (2.8%)

YoY ¥0.4 bn. (8.4%)■Governmental projects■Private-sector works ■PW works
30,76629,936
28,693
8,946

12,15812,24915,41013,452

14,853

4,031

4,336

4,325

3,662

2024.32022.32023.32024.3

17,531

11,396

Consolidated gross profit margin

19.9%

19.2%

5,710

5,759

2022.32023.3

20.3%
6,245

2024.3*PW works: Works performed by “PAN WALL method,” a reinforced earth method for natural grounds which is the Company’s unique technology©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

22

<Overall status by segment> Real estate business Net sales
Increased significantly by ¥6.7 billion year on year due to the sale of large-scale self-developed land for industrial use (lot No. 1 of the Obu Tokai
Development Project).

 Gross profit
Increased significantly by ¥4.4 billion year on year due to the sale of self-developed land for industrial use with high profit margins.

 Condominiums for sale business
Number of units sold did not reach the level of the previous fiscal year and decreased by 63 year on year despite the completion and delivery of
new buildings.

Breakdown of net sales (JPY mil)Gross profit (JPY mil)YoY ¥4.4 bn. (77.0%)

YoY ¥6.7 bn. (40.1%)■Condominiums for sale business■Real estate sales ■Others

Number of condominium units soldYoY 63 units (28.3%)

Consolidated gross profit margin

223
units
223⼾

43.3%

23,594
34.2%

7,258

32.3%

11,933

4,555

16,845

10,212

180
units
180⼾
160
units
160⼾

14,096
5,768

9,315
7,292
2,991

3,448

3,813

4,082

4,403

2022.32023.32024.32022.3©2024

2023.32024.3All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

2022.32023.32024.323

Consolidated financial position
 Total assets: Total assets decreased by ¥3.9 billion, mainly due to a decrease of ¥3.0 billion in trade receivables as a result ofprogress in the collection of construction payments primarily for large building construction projects.
 Liabilities: Total liabilities decreased by ¥10.0 billion mainly due to a reduction of ¥9.5 billion in interest-bearing debt in addition
to a decrease of ¥7.5 billion in trade payables as a result of the discontinuation of notes payable for partnercompanies.
 Net assets: Net assets increased by ¥6.1 billion mainly due to the recording of retained earnings.
❏Consolidated balance sheets
As of March 31,
2024 Actual

22,821

19,987▲2,833

Trade receivables

42,75339,657▲3,095

2,074

3,251

1,177

20,23921,016776

Others

4,334

3,997

▲337

Total

92,22387,910▲4,313

Property, plant and equipment

28,497

27,148▲1,349

805

728

▲77

8,460

10,213

1,752

Total

37,76338,090326

Total assets

129,987

126,000▲3,987

Non-current
assetsCurrent assets

Cash and deposits

Costs on construction contracts
in progress
Real estate for sale

Intangible assets
Investments and other assets©2024

Liabilities

Changes

As of March 31,
2023 Actual

As of March 31,
2024 Actual

Changes

Trade payables

18,697

11,112▲7,584

Short-term borrowings

28,10014,100▲14,000

4,604

8,853

4,248

Others

5,442

9,642

4,200

Total

56,84343,708▲13,135

Long-term borrowings

3,800

8,300

4,500

Others

8,912

7,453

▲1,458

Total

12,712

15,753

3,041

Total liabilities

69,556

59,461▲10,094

Net assets

60,431

66,5386,107

129,987

126,000▲3,987

Current liabilities

As of March 31,
2023 Actual

Non-current
liabilities

Assets(Millions of Yen)

Advances received on construction
contracts in progress

Total liabilities and net assets

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

24

Consolidated financial position❏Key management indicatorsFYE March 2020
ActualFYE March 2021
ActualFYE March 2022
ActualFYE March 2023
Actual(Millions of Yen)FYE March 2024
ActualReturn on assets (ROA)

7.3%

6.3%

5.0%

5.9%

7.5%

Return on equity (ROE)

10.2%

6.2%

8.6%

7.6%

10.2%

Earnings per share (EPS)¥118.85¥75.86¥112.18¥104.83¥150.23

Equity ratio

48.6%

42.1%

49.4%

46.5%

52.8%

Interest-bearing debt

26,05742,94030,40031,90022,400Net interest-bearing debt (*)

12,281

20,848

8,388

9,078

2,413

(*) Net interest-bearing debt = interest-bearing debt - cash and deposits❏Consolidated statements of cash flows(Millions of Yen)FYE March 2020
ActualFYE March 2021
ActualFYE March 2022
ActualFYE March 2023
ActualFYE March 2024
ActualCash flows from operating activities

631▲6,757

15,841

4,152

10,235

Cash flows from investing activities▲1,640▲220▲1,549▲3,069▲1,181

Cash flows from financing activities

918

15,326▲14,351▲253▲11,857©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

25

Summary of orders received and carry forward to the next fiscal year Orders received
Increased significantly by ¥36.4 billion year on year due to the record-high orders forconstruction of large logistics facilities received, etc.

 Carry forward to the next fiscal year

Orders received (JPY mil)YoY ¥36.4 bn. (37.0%)

Carry forward to the next fiscal year also grew significantly by ¥38.7 billion year on year due
to the large increase in orders received.

134,965❏Orders received
FYE March 2022 FYE March 2023 FYE March 2024
ActualActualActual(Millions of Yen)
Year on year
Increase/
Changedecrease

Building
construction

60,072

Civil engineering

32,56734,48532,958▲1,526

▲4.4%

Total

92,63998,520134,965

36,44537.0%

64,034

102,006❏Carry forward to the next fiscal year
FYE March 2022 FYE March 2023 FYE March 2024
ActualRecord highActualActual

37,971

59.3%

92,63998,5202022.32023.3Carry forward to the next fiscal year (JPY mil)YoY ¥38.7 bn. (39.0%)(Millions of Yen)
Year on year
Increase/
Changedecrease

Building
construction

62,064

66,629103,171

36,541

54.8%

Civil engineering

28,26332,81235,005

2,192

6.7%

Total

90,32799,442

138,177

38,73439.0%

2024.3[Reference] Highest record as of the previous fiscal year:¥98,520 million in FYE March 2023

Record high138,177
90,3272022.399,4422023.32024.3[Reference] Highest record as of the previous fiscal year:¥99,442 million in FYE March 2023

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

26

Ⅲ
Financial Forecasts for the Fiscal
Year Ending March 31, 2025

©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

27

Forecasts for the next fiscal year
Full-year forecasts for the fiscal year ending March 31, 2025, are net sales of ¥140.0 billion (up ¥20.0 billion
year on year) [record high], operating profit of ¥8.2 billion (down ¥1.3 billion year on year), and profit
attributable to owners of parent of ¥5.4 billion (down ¥1.0 billion year on year).

 Net sales
Overall net sales are expected to reach a record high, as in the previous fiscal year, due to an increase in sales in the construction business.
 Profit
Profit is expected to fall below the result of the previous fiscal year at each profit level due to the large impact of the expected decrease inprofit in the real estate business, although profit in the construction business is expected to increase.
❏ Consolidated financial forecasts for the fiscal year ending March 31, 2025

Net sales
Net sales of completed
construction contracts
Net sales in real estatebusiness and other
Gross profit(Gross profit margin)
Gross profit on completed
construction contracts
Gross profit on real estatebusiness and other
Selling, general, and administrative
expenses
Operating profit(Operating profit margin)

Six months ending
Sept. 30, 2024
Forecast

Increase/decrease

16.8%

52,15857,000

4,842

9.3%

22,77023.7%

45,72848,600

2,872

6.3%

21,000▲2,594▲11.0%

6,429

8,400

1,971

30.7%

▲897

▲4.5%

6,377

6,000

▲377

▲5.9%

▲3.0pt(12.2%)(10.5%)FYE March 2025

ActualFull-year forecasts

Increase/decrease

119,824140,000

20,17596,230119,000

23,594

Year on year (full year)
ChangeYear on year (interim)
Change19,797

18,900(16.5%)(13.5%)

9,584

10,600

1,016

10.6%

4,558

3,400

▲1,158▲25.4%

10,2128,300▲1,912▲18.7%

1,819

2,600

781

42.9%

10,282

10,700

418

4.1%

4,889

5,100

211

4.3%

9,514

8,200

▲1,314▲13.8%

1,487

900

▲587

▲39.5%(7.9%)(5.9%)▲2.0pt

(2.9%)(1.6%)

Ordinary profit

9,588

8,200

(Ordinary profit margin)
Profit attributable to owners ofparent

(8.0%)(5.9%)(Return on sales)(Millions of Yen)

Six months ended
Sept. 30, 2023
ActualFYE March 2024

6,462

5,400

(5.4%)(3.9%)©2024▲1,388▲1,062▲14.5%

1,564

900▲2.1pt

(3.0%)(1.6%)▲16.4%

1,017

600▲1.5pt

(2.0%)(1.1%)All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

▲1.7pt▲1.3pt▲664▲42.5%▲1.4pt▲417▲41.0%▲0.9pt28

Consolidated financial forecasts for the fiscal year ending
March 31, 2025 (by segment)(Millions of Yen)FYE March 2024

FYE March 2025

ActualYear on year (full year)

Six months ended
Sept. 30, 2023

Six months ending
Sept. 30, 2024

Full-year forecasts

Increase/decrease

ChangeActual119,824140,000

20,175

16.8%

Net sales of completed construction
contracts

96,230119,000

22,770

Building construction

65,46485,000Civil engineering

30,766

Year on year (interim)

Forecast

Increase/decrease

Change52,15857,000

4,842

9.3%

23.7%

45,72848,600

2,872

6.3%

19,53629.8%

31,911

32,700789

2.5%

34,000

3,234

10.5%

13,817

15,900

2,083

15.1%

23,59421,000▲2,594▲11.0%

6,429

8,400

1,971

30.7%

19,797

18,900

▲897

▲4.5%

6,377

6,000

▲377

▲5.9%

9,584

10,600

1,016

10.6%

4,558

3,400

▲1,158▲25.4%(10.0%)(8.9%)▲1.1pt(10.0%)(7.0%)

Building construction

3,339

4,600

37.8%

1,721

1,100

(Profit margin on building
construction works)(5.1%)(5.4%)

0.3pt(5.4%)(3.4%)

Civil engineering

6,245

6,000

▲3.9%

2,836

2,300

(Profit margin on civilengineering works)(20.3%)(17.6%)▲2.7pt(20.5%)(14.5%)

Gross profit on real estate business andother

10,2128,300▲18.7%

1,819

2,600

(Gross profit margin on real estatebusiness, etc.)(43.3%)(39.5%)▲3.8pt(28.3%)(31.0%)Net sales

Net sales in real estate business and other
Gross profit
Gross profit on completed construction
contracts(Gross profit margin on completed
construction contracts)

©2024

1,261

▲245

▲1,912All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

▲3.0pt▲621▲36.1%▲2.0pt▲536▲18.9%▲6.1pt

781

42.9%
2.7pt

29

Factors for increase or decrease in net sales/operating profit(vs results for the fiscal year ended March 31, 2024)
 Net sales
Construction business: Expected to exceed the result of the previous fiscal year mainly due to progress in the largest-ever building construction project
received in the previous fiscal year.
Real estate business: Expected to fall below the result of the previous fiscal year despite the planned sale of large-scale self-developed land forindustrial use in the current fiscal year as it is not as large as lot No. 1 of the Obu Tokai Development Project sold in the previous
fiscal year.

 Profit
Construction business: Expected to exceed the result of the previous fiscal year due to an increase in sales.
Real estate business: Expected to fall below the result of the previous fiscal year due to a decrease in sales.

Net sales (JPY mil)Operating profit (JPY mil)YoY ¥20,175 mil.

FYE March
2024
ActualBuilding
construction

Civilengineering

YoY ¥1,314 mil.

Real estatebusiness©2024

FYE March
2025
Forecast

FYE March
2024
ActualBuilding
construction

Civilengineering

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Real estatebusiness

Increase in
SG&A

FYE March
2025
Forecast

30Factors for increase in profit for the second half of FYE March 2025
(from the first half of FYE March 2025)
 Operating profit for FYE March 2025 is expected to increase significantly in the second half from ¥0.9 billion in the first half
to ¥7.3 billion in the second half due to the planned sale of large-scale self-developed land for industrial use in the second half,in addition to progress in construction works.
 Full-year operating profit is expected to be ¥8.2 billion.

(Millions of Yen)

+3,100▲500

7,300(1st half) (2nd half)
5,100 ➡ 5,600+1,400(1st half) (2nd half)
2,600 ➡ 5,700+2,400(1st half) (2nd half)
2,300 ➡ 3,700

900(1st half) (2nd half)
1,100 ➡ 3,500

Operating profit in 1st
half of FYE Mar. 2025

Building
construction

Civilengineering©2024

Real estatebusiness

Increase in
SG&A

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Operating profit in 2nd
half of FYE Mar. 202531Real Estate Business Topics: Obu Tokai Development Project
Largest development project ever undertaken by the Company as a business owner
A project to develop two industrial parks of about 70,000 tsubo (230,000 m2) in Obu City and Tokai City, Aichi Prefecture. For lot No. 1, we expect to record
approximately ¥60.0 billion in total for net sales of completed construction contracts and net sales in real estate business and other over the three periods fromFYE March 2024 to FYE March 2026.
(For details, please refer to “Notice Concerning Sale, etc. (Plan) of Real Estate for Sale” disclosed on October 20, 2023.)

 Project schedule: April 2016 to March 2027 (plan)
2016

2017

2018

2019

2020

2021

2022

2023

2024

 Project outline
2025

2026

Completion of sale of lot No. 1

Land arrangement

Acquisition ofdevelopment permission
Change to urbanization
promotion areaLand
formation
work

Lot No.1

Building construction (lot No. 1)
Lot No. 2 currently on sale

Administrative preference

Local preference Integrated development in theareaLot No. 2

Realization of area plan inaccordance with the city planningmaster plan

Lot No. 1

Our Solution
Promoting development as a business owner in consideration of preferences of both parties

Lot No. 2

Accumulated know-how
Landowner
negotiation

Administrative
consultationLanddevelopment

Attracting
companies

Constructionwork©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Aerial photo of the site
(as of March 31, 2024)

32

Dividends
 Year-end dividend for FYE March 2024 will be ¥30 as announced, and together with the interim dividend of ¥30, the annual
dividend will be ¥60.
 For FYE March 2025, an ordinary dividend of ¥60 (the same amount as the annual dividend for FYE March 2024) and acommemorative dividend of ¥20 to celebrate the Company’s 75th anniversary will be paid, bringing the annual dividend to ¥80.
 The Company plans to increase dividends for four consecutive periods (no dividend reduction for 12 consecutive periods).

Interimdividend
Year-end
dividend

FYE
March
2020

FYE
March
2021

FYE
March
2022

FYE
March
2023

FYE
March
2024

¥16

¥17

¥17

¥19

¥30

¥18

¥17

¥21

¥24

¥30

Trends in annual dividend per share

FYE
March
2025

Ordinary dividend¥40(Forecast)Commemorative
dividend

63.7%

41.0%

Payout ratio(Consolidated)¥40(Forecast)

39.9%

44.8%

¥80

33.9%
¥60

28.6%
27.1%

Annualdividend
Payout ratio(Consolidated)

(*2)

(*1)

¥34

28.6%

¥34

44.8%

¥38

33.9%

¥43

41.0%

¥60

39.9%

¥80
(Forecast)

¥22

¥24

¥24

16.3

17.3

18.3

¥28

¥34

¥34

20.3

21.3

¥38

¥43

63.7%
(Forecast)(*1) Including commemorative dividend of ¥4 for the 70th anniversary of founding(*2) Including commemorative dividend of ¥20 for the 75th anniversary of founding©2024

20.5% 20.4% 20.5%

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

19.3

22.3

23.3

24.3

25.3
(Forecast)33

Ⅳ
Medium-Term Management
Plan

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

34

The Company’s position
We aim to make a leap from a mid-sized player to a second-tier major player with net sales of ¥200 billion or more.
Profit has already been comparable to that of second-tier major players.
Hierarchical classification of construction companies based on average
consolidated net sales over the past three years

Rank

Company name

Net sales

Operating profit

1

Kajima Corporation¥2,665.1 billion¥136.2 billion

2

Obayashi Corporation¥2,325.1 billion¥79.3 billion

5 super-general contractors

3

Shimizu Corporation¥2,005.5 billion(¥24.6 billion)

4

Taisei Corporation¥1,765.0 billion¥26.4 billion

Net sales of ¥1
trillion or more

5

Takenaka Corporation¥1,612.4 billion¥45.6 billion

6

Haseko Corporation¥1,094.4 billion¥85.7 billion

16

Tokyu Construction¥285.6 billion¥8.1 billion

17

Toa Corporation¥283.8 billion¥17.2 billion

18

Toyo Construction¥186.7 billion¥10.8 billion

28

YAHAGI CONSTRUCTIONーー¥13.7 billion

ーー¥288.1 billionーー

Okumura Corporation

ー

ー

15

¥119.8 billion¥9.5 billion

Ranking figures are based on data for the fiscal year ended March 2024 or December 2023.
Source) Compiled by the Company with reference to the 40 companies for which financial analysis and hierarchicalclassification were performed by the Research Institute of Construction and Economy.

Secured operating profit
comparable to second-tiermajor players©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

11 second-tier major generalcontractors
Net sales of ¥200 billion or more

Mid-sized general contractors
Net sales of less than¥200 billion
35

Vision for FY2030 and the positioning of the medium-term
management plan
Vision for FY2030: “Problem-solving and value-creating company”
 A company that contributes to the sustainable development of customers, communities, and society by creating andproviding new value through construction engineering in order to realize a better society, not just by solving problems
faced by customers and communities.
 A company that expands business beyond the Tokai area to the maglev economic zone, and has strong
competitiveness in specific customers and fields within the areas.
 We are aiming for net sales of around ¥200 billion.
Recognition of the future market environment
In addition to the shift in industrial structure and business models causedby the COVID-19 pandemic, society’s values have shifted from economyfocused to sustainability-focused. In the future, it will be necessary to
evolve the business model to a sustainable one while creating both socialand corporate value.

¥106.6billion1,066億円

FYE
March 2021
2021年3月期

Period to develop thefoundation
for accelerated growth
FY2021 to FY2025

Period foraccelerated growth
FY2026 to FY2030

Net sales
target2,000億円¥200 billion¥130 billion
1,300億円

FYE
March 2026
2026年3月期©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

FYE
March 2031
2031年3月期

36

Business policy
Transformation into a problem-solving and value-creating company“Enhancement of capabilities to build and create” and the “development of the foundation for sustainable growth”
toward accelerated growth
Deepening and evolving existing businesses

Exploring and developing new areas andfieldsConstruction business
Building construction segment

Real estate business
Real estate segment

Civil engineering segment

•
•
•
•

Strengthening of production systems to scale up business
Expansion of business areas/target fields
Reform of the construction production process to improve productivity
Development of new technologies and services/acquisition oftechnologies and know-how• Improvement of safety and quality levels and strengthening ofmanagement systems• Development and sales of land for industrial and residential use based onmarket needs, mainly in the Tokai area
• Expansion of development areas in the maglev economic zone
• Expansion of development solutions such as government-owned land
utilization projects• Expansion of fields through maintenance, stock- and fee-based businesses

Company-wide• Strengthening of planning and proposal
capabilities/strengthening of capability to drive projects• Value co-creation with various partners• Development of an attractive and rewarding work environment• Promotion of SDGs initiatives (SDGs Declaration)

Establishing a management foundation to support growth©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

37

Numerical targets in the medium-term management plan (FY2021 to FY2025)(Millions of Yen)FYE March 2022

FYE March 2023

FYE March 2024

FYE March 2025
Forecast

FYE March 2026
TargetNet sales

93,090111,110

119,824140,000

130,000

Operating profit

6,169

7,212

9,514

8,200

10,000(Millions of Yen)

Ta r g e t s f o r t h e f i n a l f i s c a l y e a r o f
the medium-term management plan
(FYE March 2026)❏Cosolidated
net sales:❏Consolidated
operatingprofit:¥10.0 billion©2024■Net sales■Operating profit

119,824

111,110¥130.0 billion

130,000

140,000

93,090

6,169

7,212

9,514

8,200

10,000FYE March 2022

FYE March 2023

FYE March 2024

FYE March 2025

FYE March 2026

(Actual)(Actual)(Actual)(Forecast)(Target)All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

38

Cash allocation
Allocate cash appropriately to future growth investments and shareholder returns, by utilizing interestbearing debt to the extent that financial soundness can be maintained, in addition to earned profit.
Cash allocation policy
FYE March 2022 to FYE March 2026
Utilization of interestbearing debt
DE ratio of 1.0× or below

Increase in interestbearing debt

Income taxes

Growth investment:
Approx. ¥30 billion or more
Real estate investment
Human resource investment

Equity ratio of over 40%

Growth investment
Operating cash flows(Before deduction of
investment in humanresources and R&D)*¥50 billion or
more

R&D investment(in net investment
amount)Investment in informationequipment
Ｍ＆Ａ¥30 billion or
more

etc.

Shareholder returns
Continuing and stableshareholder returns

Shareholder
returns

Payout ratio of 30% or more
Flexible purchase of treasury
shares*Operating income + Investment in human resources + Investment in R&D + Amortization expenses©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

39

Analysis of current status of capital cost and return on equity
The Company’s return on equity (ROE) exceeds its cost of shareholders’ equity.
Equity spread widened in FYE March 2024 as ROE improved, but the spread has been low in recent years.

As of the end of FYE March 2024, PBR reached 1× due to improvement of ROE.
Continued efforts to widen the spread are crucial.
Trends in PBR and ROE

Trends in equity spread (ROE − cost of shareholders’ equity)14%
12%

12.9% 12.8%

1.1倍
1.1×

14%
1.01×

1.02×

11.0%
9.5%

10%

10.2%

10.2%
8.6%

0.9倍
0.9×

7.6%

9.4%

8%

1.0倍
1.0×

0.99×

12%
10%

0.91×

8%
0.8×
0.8倍

6.2%

6%

0.75×

6%
0.68×

0.7×
0.7倍

4%

4%

0.65×

0.6×
0.6倍

2%

0.67×

0.60×

0.59×

0.5×
0.5倍

0%
15.3

16.3

17.3

18.3

Equity spread
エクイティスプレッド

19.3

20.3

21.3

22.3

Cost of shareholders’
株主資本コストequity

23.3

ROE

24.3

2%
0%

15.316.3期
16.317.3期
17.318.3期
18.3 19.3期
19.3 20.3期
20.3 21.3期
21.3 22.3期
22.3 23.3期
23.3 24.3期
24.3
15.3期

PBR (left axis)
PBR（左軸）©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

ROE
(right axis)
ROE（右軸）40

Efforts to maximize corporate value
We will continue to step up our efforts to widen the spread and improve PER to maximize corporate
value (i.e., PBR in excess of 1×).

Maximizing corporate value
Drivers to improve corporate value

Details of main initiatives

Widening the spread
Profit growth

Improvement in capital efficiency

Shareholder returns
Optimization of financial leverage

Improving PER

Growthstrategy

Financial
andcapitalstrategyIRstrategy• Steady achievement of themedium-term management plan

FY2025 financial results
targets
Net sales: ¥130 billion
Operating profit: ¥10 billion• Utilization of cash and deposits - optimal allocation to
growth investment and shareholder returns• Review of assets held
• Utilization of borrowings• Strengthening of shareholder returns• Strengthening of IR and SR activities• Expansion and increased sophistication of information
disclosure©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

41

Strengthening of IR
We will expand opportunities for dialogue with shareholders and investors, and enhance thedissemination of information for deeper understanding of the Company’s growth strategy.
Expansion and increased sophistication of
information disclosure

Strengthening IR activities
1

Financial results and company briefing
sessions

3

Disclose materials on quarterly financial
results

4

Disclose financial results summary andmaterials on financial results in English

5

Enhance online dissemination of financial andnon-financial information

For institutional investors
November 16, 2023
May 21, 2024

Mid-term financial results briefing(Tokyo and online) *Held for the first time
Financial results briefing(Tokyo and online) *Today's briefing

For individual investors
December 16, 2023

2

Briefing for individual investors (Nagoya)*Held for the first time

Conducting and enhancing SR interviews andstrengthening participation in IR events

March-April, 2023

SR interviews conducted (7 companies) *Conducted for the first time

September 1-2, 2023

Nikkei IR & Individual Investor Fair 2023 (Tokyo) *Exhibited for the first time

September 8-9, 2023

Nagoya Stock Exchange IR Expo 2023 (Nagoya)March-April, 2024

SR interviews conducted (9 companies)

Nikkei IR and Individual Investor Fair 2023

©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

NSE IR Expo 2023 Booth Briefing Session

42

Investment plan and progress
We plan to make growth investment to build the foundation for realizing the vision for FY2030, in the amount ofapprox. ¥30 billion over 5 years (¥6 billion per year on average).
We have invested ¥27.5 billion over the past three years, an average of ¥9.2 billion per year, far exceeding our plan.

Growth investment areas
Real estate
investment

Human resource
R&D investment
investment

Investment in
informationequipment

Ｍ＆Ａ

Previous medium-term management
plan period (Actual)

Current medium-term
management plan period (Plan)

Progress up to FYE March 2024
(Actual)

3 years

5 years

3 years• Total amount:¥16 billion• Total amount: Approx. ¥30 billion• Annual average:¥5.3 billion• Annual average:¥6 billion(13%up)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

• Made investment worth¥27.5 billion in total
FYE March 2022:
FYE March 2023:
FYE March 2024:¥9.5 billion¥10.4 billion¥7.6 billion• Annual average: ¥9.2 billion
43

Shareholder returns
 Dividend policy• Provide continuing and stable shareholder returns, while taking into account consolidated financial
results and financial conditions.
• Target payout ratio of 30% or more.
• Consider purchasing treasury shares flexibly as needed, in light of growth investment conditions andmarket trends.
Previous medium-term management
plan period
FYE March
2019

FYE March
2020

ActualActualCurrent medium-term
management plan period

Dividend per share andpayout ratio

FYE March
FYE March 2022 to FYE March 2026
2021

Average dividend yield

Ordinary dividend
Commemorative dividend
Payout ratio (consolidated)

Annualdividends
Payout
ratio

¥28
27.1%

¥34*
28.6%

TargetActual

¥34
44.8%

5.5%
5.0%

¥80* ※

5.5%
4.7%

4.1%
¥60

Payout ratio

30% or more

*Including commemorative dividend of ¥4 for the 70th anniversary of foundation

¥34

¥38

¥43

2021.3 2022.3 2023.3

2024.3 2025.3(Forecast)*Including commemorative dividend of ¥20 for
the 75th anniversary of foundation©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

2021.321.3 2022.3
22.3 2023.3
23.3

2025.32024.324.3 25.3
予(Forecast)*Average dividend yield = Average annual
share price (closing price) ÷ Annual dividends
per share

44

Efforts to achieve the medium-term management plan (PFI Project)
Participation in the Aichi Prefecture Ichinomiya City No. 1 Community Kitchen Development and Operation Project (PFI project)A PFI project was awarded to Ichinomiya School Lunch Co., Ltd.*, a special-purpose company consisting of eight companies including ourCompany, to develop and operate a communal kitchen in order to consolidate aging kitchens and improve business efficiency.

Exploration and development of
new fields and domains

Establishment of management baseto support growth• Contribute to solving issues related to school lunches in the community, such as aging facilities and conversion tocommunity kitchens due to declining birthrates.
• Create new partnerships with members of different industries, such as private food companies, and government
agencies
Development of new technologies
and services/acquisition oftechnologies and know-how

Expansion ofbusiness/target areas

Value co-creation withvarious partners*Constituent companies: MEFOS Ltd., YAHAGI CONSTRUCTION CO., LTD., Nakamura Industry Co., Ltd., TOENEC CORPORATION,AIHO CORPORATION, CHODAI CO., LTD., Mitsubishi Electric Building Solutions Corporation, KIBOU UNYU LOGISTICS CO., LTD.
Project name

Aichi Prefecture Ichinomiya City No. 1 Community Kitchen Development and Operation Project (PFI Project)

Project method

BTO* method based on PFI projects *Private sector operator constructs the facility, transfers ownership to the public entity, and the private sector
operator maintains, manages, and operates the facility.
Design, construction, opening preparations, maintenance, and operation of a community kitchen (number of meals prepared: approx. 8,500
meals/day) for approx. 16 years

Operations
Planned location

Ichinomiya City, Aichi Prefecture

Building scale

Steel-framed, two-story structure, total floor area:
approx. 1,250 tsubo (4,132 m2)

Project schedule
Discussion to design
March 2022

April 2023

Construction period
July 2024©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Opening
preparations
September 2024

Maintenance and operation
March 2040

45

ESG/SDGs Acquisition of CDP rating
Received a “B” score rating in CDP (Climate Change)
We received a “B” score in the field of climate change (climate change initiatives and information
disclosure) from CDP, a British non-governmental organization (NGO) with an international
commitment to disclosure of information in environmental assessments.
A score of "B" indicates that the Company is at the level of Management and is “aware of andacting on its environmental risks and impacts,” which is the third highest of the eight levels.
A Leadership
リーダーシップ
AB
BC
CD
D-

Stage
of showing leadership in solving environmental problems
トップランナーとして環境問題を解決しようとする段階

マネジメントManagementStageof managing environmental risks and their impacts.
環境によるリスクやその影響の管理を実施している段階

Awareness
認識Stage of awareness of how environmental issues impact on own
環境問題が自社にもたらす影響を認識している段階
company

情報開示
Disclosure
Stage of identifying own company’s current status concerning
自社の現状を把握している段階
environmental
issues©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

46

ESG/SDGs

Promotion of environmentally conscious design (ZEB/ZEH)

Contributing to solving social issues with environmentally conscious technologies
To achieve carbon neutrality, we are promoting environmentally conscious design utilizing energy
conservation and creation.
❑ Acquired “Nearly ZEB” certification (see figure below right) for Tokai Obu Construction Works temporary office.

In addition to energy savings through the use of LED lighting fixtures, more efficient air conditioning equipment, and highthermal insulation, the installation of a solar power generation system has created energy and reduced energy
consumption by approximately 80%.
ReduceEnergysaving

Basic Concept of ZEB/ZEH

Create=Net Zero Energy of Building (Non-residential)=Net Zero Energy of House (Residential)

Energycreating

EnergyEnergyEnergyrequired inused with - createdconventional ZEB
with ZEB Net zerobuildings
energyFour levels of ZEB certification based on achievement
consumption!

of zero energy (same for ZEH)

Standard buildings(Energy required inconventional buildings)

100%
energyconsumption

ZEB30-40%or moreenergysavings

60-70%or less
energyconsumption*Depends on
use and scale©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

50% ormoreenergysavings50%
or less
energyconsumption

50% ormoreenergysavings

50% ormoreenergysavings

Energycreating
25% or lessenergyconsumption

Energycreating

0% energy
consumption

47ESG/SDGs Elimination of bill payments and conversion to full cash payments
Arranged social loan to finance the change to full cash payment
In January 2024, we implemented the abolition of bill payment and change to full cash payment for all cooperating companies, and raised thenecessary funds for the change with a social loan.
Full cash payment leads to the stabilization of subcontractors' operations and the creation of jobs, contributing to the coexistence and coprosperity of the entire supply chain and the development of the industry.
This initiative has received the highest rating of "Social 1(F)" from Japan Credit Rating Agency, Ltd. (JCR) for conformance with the Social
Loan Principles and Social Bond Guidelines.
This is the first time a general construction company in Japan has raised funds through social loans.
Outline of social loan
Borrowing date

Friday, January 19, 2024

Amount borrowed¥5 billion

Borrowing period

3 years

Arranger/AgentMUFG Bank

Borrowers (in Japanesealphabetical order)

Aichi Bank, Ogaki Kyoritsu Bank, San ju San Bank, The Bank of Nagoya, The Hyakugo
Bank, The Hyakujushi Bank, Sumitomo Mitsui Banking Corporation, MUFG Bank, The
Bank of Yokohama, Resona Bank

Use of funds

Increased working capital due to the elimination of bill payments to all subcontractors
and the change to full cash payments

Third-party evaluation

Received the highest rating of "Social 1(F)" from Japan Credit Rating Agency, Ltd. (JCR)©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

48

Ⅴ
FACT SHEET©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

49

Consolidated financial results (for the last 5 years) and forecasts
FYE March
2020
Net salesFYE March
2021

FYE March
2022

FYE March
2023

FYE March2024(Millions of Yen)FYE March2025 Forecast

90,129106,615

93,090111,110

119,824140,000(▲2.8%)(18.3%)(▲12.7%)(19.4%)(7.8%)(16.8%)

Operating profit

7,764

7,362

6,169

7,212

9,514

8,200

(Year-on-year percentage change)(0.8%)(▲5.2%)(▲16.2%)(16.9%)(31.9%)(▲13.8%)

Ordinary profit

7,829

7,445

6,174

7,259

9,588

8,200

(Year-on-year percentage change)(1.1%)(▲4.9%)(▲17.1%)(17.6%)(32.1%)(▲14.5%)

Profit attributable to owners ofparent

5,158

3,292

4,842

4,508

6,462

5,400

(Year-on-year percentage change)(15.2%)(▲36.2%)(47.1%)(▲6.9%)(43.4%)(▲16.4%)(Year-on-year percentage change)❏New record highs for net sales and all profit levels❏<Reference>First year for which consolidated
financial statements were prepared
Highest records as of the previous fiscal year
◉Net sales◉Operating profit◉Ordinary profit◉Profit attributable to owners of parent©2024

FYE March 1991
FYE March 2023
FYE March 2020
FYE March 2020
FYE March 2020

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

¥ 111 , 11 0 m i l l i o n¥7,764 million¥7,829 million¥5,158 million
50

<Overall status by segment> Architectural business＜(Millions of yen)2020.32021.32022.32023.32024.3

ActualActualActualActualActualConsolidated orders received

59,72152,51560,07264,034

102,006

Condominium
construction works

13,591

10,13113,806

14,326

13,343General construction
works

46,13042,384

46,21649,70888,66344,26358,63550,30064,32965,464

Condominium
construction works

14,58419,067

16,43011,444

16,623General construction
works

29,67839,56733,87052,885

48,840Consolidated gross profit

6,360

5,929

4,669

5,062

3,339

Consolidated grossprofit margin

14.4％

10.1%

9.3%

7.9%

5.1%

Consolidated net sales©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

51

<Overall status by segment> Civil engineering business＜(Millions of yen)2020.32021.32022.32023.32024.3

ActualActualActualActualActualConsolidated orders received

25,21828,831

32,56734,48532,958Governmental projects

9,291

12,11912,88615,083

17,531

Private-sector works

10,13012,980

15,481

15,190

11,396

PW works

5,797

3,732

4,200

4,212

4,031

Consolidated net sales

29,61833,771

28,69329,93630,766

Governmental projects

12,54814,877

8,946

12,15812,249

Private-sector works

12,341

14,52015,41013,452

14,853

PW works

4,729

4,372

4,336

4,325

3,662

Consolidated gross profit

5,097

5,760

5,710

5,759

6,245

Consolidated gross profit
margin

17.2％

17.1%

19.9%

19.2%

20.3%

©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

52

<Overall status by segment> Real estate business(Millions of yen)2020.32021.32022.32023.32024.3

ActualActualActualActualActual16,247

14,20814,096

16,84523,594

Condominiums for salebusiness

8,856

10,039

7,292

9,315

7,258

Real estate sales

4,023

621

2,991

3,448

11,933

Others

3,368

3,547

3,813

4,082

4,403

Consolidated gross profit

4,842

4,009

4,555

5,768

10,212

Consolidated gross profit
margin

29.8％

28.2%

32.3%

34.2%

43.3%

Number of delivered units

198

199

180

223

160

Number of contracted units

184

130

194

224

205

Consolidated net sales❏ Results of condominiums for sale©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

53

Orders received, net sales, and carry forward to the next fiscal year
(consolidated)(Millions of Yen)

Orders received

CategoryFYE March 2023 FYE March 2024

ActualActualNet salesYear on year
Increase/decrease

FYE March 2023 FYE March 2024

ChangeActualCarry forward to the next fiscal year

Year on year
Increase/decrease

ActualFYE March 2023 FYE March 2024

ChangeActualActualYear on year
Increase/decrease

ChangePublic

28

1,717

1,689

－

－

113

113

－

28

1,632

1,603

－

Private64,006100,288

36,28256.7%

64,32965,350

1,021

1.6%

66,601

101,539

34,93852.5%

64,034

102,006

37,971

59.3%

64,32965,464

1,135

1.8%

66,629103,171

36,541

54.8%

Public15,083

17,531

2,447

16.2%

12,15812,24990

0.7%

12,865

18,147

5,282

41.1%

Private19,402

15,427▲3,974▲20.5%

17,777

18,516739

4.2%

19,947

16,858▲3,089▲15.5%

34,48532,958▲1,526▲4.4%

29,93630,766829

2.8%

32,81235,005

2,192

6.7%

Public15,111

19,249

4,137

27.4%

12,15812,363204

1.7%

12,893

19,779

6,885

53.4%

Private83,408

115,716

32,30738.7%

82,106

83,867

1,760

2.1%

86,549118,397

31,84836.8%

98,520134,965

36,44537.0%

94,26596,230

1,965

2.1%

99,442

138,177

38,734

39.0%

Real estate business and other

16,84523,594

6,749

40.1%

Total

111,110

119,824

8,714

7.8%

Building
construction

Construction

Total

Civil
engineering

Total

Total

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

54

Status of consolidated subsidiaries (as of March 31, 2024)
Name

Capital(Millions of yen)

Address

Fiscal year
end

Business description

Net sales for thecurrent fiscal year
(Millions of yen)

YAHAGI REAL ESTATE Co., Ltd.

Higashi-ku, Nagoya

800

March

Condominiums for sale business, real estate development business,real estate leasing business, real estate brokerage business

9,971

YAHAGI BUILDING AND LIFE CO., LTD.

Higashi-ku, Nagoya

400

March

Apartment and building management business, architectural business

4,601

YAHAGI GREEN Co., Ltd.

Higashi-ku, Nagoya

100

March

Greenery business, golf course management business

3,482

1,311

6,798

Techno Support Co., Ltd.

Higashi-ku, Nagoya

50

March

PAN WALL (an earth reinforcement method using panels and “soilnails” for slope protection) business, PITA Column (a seismic
retrofitting method using external reinforcing for existing buildings)
business, construction work, technological development, test piece
production

YAHAGI ROAD CO., LTD.

Toyota, Aichi

300

March

Paving business, civil engineering business, manufacture and sales ofasphalt mixture, recycling business

Nanshin Takamori Development Co., Ltd.

Takamori-machi,
Shimoina-gun, Nagano

50

March

Operation of golf courses (Takamori Country Club)HOKUWA CONSTRUCTION, INC.

Shimogyo-ku, Kyoto

85

March

Architectural business

Minamichita Mirai Partners Co., Ltd.

Minamichita-cho,
Chita-gun, Aichi

30

March

Development and operation business for the surroundings ofMorozaki Port Tourism Center

292

6,255

11

(Notes) 1. YAHAGI REAL ESTATE Co., Ltd., YAHAGI BUILDING AND LIFE CO., LTD., YAHAGI GREEN Co., Ltd., Techno Support Co., Ltd., YAHAGI ROAD CO., LTD., Nanshin Takamori Development Co., Ltd., andHOKUWA CONSTRUCTION, INC., are all wholly-owned subsidiaries of YAHAGI CONSTRUCTION CO., LTD.
(For Nanshin Takamori Development Co., Ltd., there are indirect holdings of 69%).
2. Minamichita Mirai Partners Co., Ltd., is a special purpose company established on July 20, 2023, to engage in the development and operation business for the surroundings of Morozaki Port Tourism
Center in Minamichita-cho, Chita-gun, Aichi Prefecture, and is a subsidiary of YAHAGI CONSTRUCTION CO., LTD.,which indirectly holds 66.7% of the voting rights of the company.

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

55

Share price and trading volume trends (January 4, 2018 to May 10, 2024)
Share price
(Yen)

1600

Closing price as of May 10 : ¥1,501
PER: 11.96x
PBR: 0.97x

1400
Trading volume(1,000 shares)

1200

3000
1000
2500

800
600

2000

400

1500

200
1000
0
500

0
Jan-19Jul-19Jan-20Jul-20Jan-21

Jul-21

Jan-22

Jul-22©2024 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Jan-23

Jul-23Jan-2456

Disclaimer* Forward-looking statements such as earnings forecasts contained in this document include
projections for the future, assumptions underlying plans, and predictions as of the date of the releaseof this document. These statements are not guarantees of future performance by the Company. Actual
results may differ significantly depending on various factors in the future. This document contains
estimates that have not been audited, and the figures are subject to change.
* This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original
shall prevail.

©2024

All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

57