TSE Prime (Securities Code: 1941)

Financial Results Briefing for the Fiscal YearEnding March 31, 2024 (FY2023)

May 29, 2024

Presenter:

Takafumi Shigeto
Representative Director and President

Copyright©2024CHUDENKO Corporation.All Rights Reserved

Contents

Briefing Topics
1

FY2023 Performance2

FY2023 Earnings Forecasts

3

Medium-Term Management Plan 2024 [FY2021-2024] Initiatives

4

CHUDENKO Group 2030 Vision

5

Management measures that take into account capital costs and share price6

Reference (Company Profile, etc.)1

Copyright©2024CHUDENKO Corporation.All Rights Reserved

1. FY2023 Performance2

Copyright©2024CHUDENKO Corporation.All Rights Reserved

FY2023 Performance (Business Environment and Group Overview)Construction industry
 Public capital investment remains firm and private capital investment also continues toindicate a recovery trend.
 The price of energy and raw materials remain high due in part to exchange rate
fluctuations, and labor costs continue to rise due to worker shortages.

Group Overview
 Business performance is recovering by undertaking various measures under our MediumTerm Management Plan.
 Efforts to promote greater participation of women and to maintain/improve employee
health have been recognized. In September 2023, Chudenko was granted the “Eruboshi (2star)” certification. And in March 2024, we were certified under the “2024 Certified Health& Productivity Management Outstanding Organizations Recognition Program (large
enterprise category)” for the second consecutive year.

3

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FY2023 Performance (Income statement, consolidated)
Recorded a year-on-year increase in both sales and profit.


Sales increased for the first time in two fiscal years (up ¥8.9 billion for Chudenko parent, up ¥3 billion for consolidated subsidiaries).

Operating profit increased for the first time in two fiscal years (up ¥3.1 billion for Chudenko parent, up ¥0.4 billion for consolidated subsidiaries).
(Billions of yen)

Consolidated
Performance

FY2022

FY2023

ChangeYoY

Net sales

189.0

201.0

11.9

106%

Cost of sales

165.0
23.9 （14.2%）

172.4
28.5

7.4
4.5

105%

15.6

16.5

0.9

106%

Gross profit（12.7%）

Selling, general andadministrative
expenses

119%

Operating profit（4.4%）

8.3 （5.9%）

11.9

3.5

143%

Ordinary profit（-1.0%）-1.9 (6.3%)

12.7

14.6

－

Profit attributableto owners of parent（-3.7%）-6.9 (3.9%）

7.9

14.8

－

* Figures in ( ) are profit margins.

4

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FY2023 Performance (Main factors for change in year-on-year net sales, consolidated）
Breakdown of year-on-year change in Net sales（+11.9 billion）
Chudenko parent （+8.9 billion）

あIndoor Electrical

Air-Conditioning
Piping１０９億円+7.1

Information
Communication
Equipment+1.0

Consolidated companies (+3.0 billion)

Underground
Power Line forDistribution Line
Transmission/Distri
bution+1.2+1.1

Chugoku region
subsidiaries (7)+1.3

Urban area
subsidiaries (3)+0.5Overseassubsidiaries (4)

+1.1

201.0
９６億円
FY2023
Net sales

－1.7

189.0
FY2022
Net sales

5

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FY2023 Performance （ Breakdown of year-on-year change in operating profit , consolidated ）Breakdown of year-on-year change in Operating profit（+3.5 billion）
Chudenko parent （+3.1 billion）

v

Consolidated basis （＋0.4 billion）

Operating profit by division
General WorkBusiness

Operating profit ofconsolidated
subsidiaries

Electric PowerBusiness＋0.3

１０９億円＋3.1

Amortization of
goodwill, etc.

＋0

11.9

－0

FY2023Operating profit

8.3
FY2022
Operating profit

6

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FY2023 Performance (Balance sheet, consolidated)(Billions of yen)
As of March 31, 2023

As of March 31, 2024

ChangeMain factors for change

Current assets

118.9

122.3

3.3

Cash and deposits 4.3, Accounts receivable fromcompleted construction contracts and other 4.2,
Marketable securities -5.0

Non-current assets

153.5

158.2

4.6

Investment securities 4.9

272.5

280.5

8.0

Current liabilities

47.3

52.5

5.1

Accounts payable for construction contracts andother 2.5, Accrued income taxes 1.5

Non-current
liabilities

23.0

14.0

-9.0

Liabilities associated with retirement benefits -2.4,
Liabilities associated with application of the equity
method -6.8

Total liabilities

70.4

66.6

-3.8

Total assets

Total net assets

202.0

213.9

11.8

Total liabilities andnet assets

272.5

280.5

8.0

Equity ratio

73.2％

75.2

2.0

7

Valuation difference on available-for-salesecurities 7.8,
Accumulated adjustment amount related toretirement benefits 2.8

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FY2023 Performance (Orders received and net sales by sector, parent) Orders received was ¥183.3 billion, a year-on-year increase of ¥15.5 billion (mainly for Indoor
Electrical Work and Air-Conditioning Piping Work) Net sales was ¥157.1 billion, a year-on-year increase of ¥8.9 billion (mainly for an increase in Indoor
Electrical Work)

Net sales

Orders received(Billions of yen)

88.7

84.8

78.7
71.5
FY2022167.7

FY2023

FY2022183.3 （+15.5）

148.2

30.3 31.3

31.329.5

FY2023157.1（+8.9）

40.9
29.3
12.7
9.9
Indoor Electrical

Air-Conditioning
PipingInformation
Communication
Equipment

10.5
Distribution
Line

12.2

30.1 31.3

7.7 8.7

Underground Power Linefor Transmission/Distribution

Indoor Electrical

8

Air-Conditioning
PipingInformation
Communication
Equipment

7.4 8.7
Distribution
Line

Underground Power Linefor Transmission/Distribution

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FY2023 Performance (Orders received and net sales by region, parent) Working to expand urban areas while maintaining sales in the Chugoku region.
(Billions of yen)Orders received
155.6
20.8

167.7

153.4

29.7

31.5

Urban
areas

134.8

121.9

FY2020FY 2021

ChugokuregionNet sales

FY2022

35.0

133.0

Share of urban
areas in orders
received
FY2020 13%↓
FY2023 20%

FY2023(Billions of yen)

148.4

16.1

Urban
areas

138.0

168.0

153.0

148.2

20.6

132.2

132.3

FY2020

FY2021

30.4
117.7

159.0
27.6

Share of urban
areas in net
sales

131.3

FY2020 11%↓
FY2023 16%

ChugokuregionFY20229FY2023Copyright©2024CHUDENKO Corporation.All Rights Reserved

FY2023 Performance (Orders received, net sales, and balanced carried forward, parent) Balance carried forward significantly increased due to substantial rise in orders received.

(Billions of yen)Orders received, net sales, and balance carried forward
167.7

Orders received

149.3
146.2

88.7

Net sales

155.6

153.4

148.4

153.0

148.2

95.9

96.4

116.0

FY2020

FY2021

FY2022

Balance carriedforward

FY2019Balance carried forward to the next FY by type of construction

74.3 84.4(Billions of yen)

End of FY2022

End of FY2023

116.0

142.1

Indoor Electrical

Air-Conditioning
PipingInformation
Communication
Equipment

Distribution
Line

11.5

Underground Power Linefor Transmission/Distribution

10

FY2023

95.8

80.7

8.0

0.3 0.3

142.1(Billions of yen)

Chugokuregion9.7 10.8

157.1

Balance carried forward to the next FY by region+26.1)

23.5 35.0

183.3

35.2

46.3

Urban
areas
End of FY2022

End of FY2023

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2. FY2024 Earnings Forecasts

11

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FY2024 Earnings Forecasts (consolidated)
Expecting a year-on-year increase in sales and profits.
 Net sales expected to increase (¥6.8 billion increase for Chudenko parent, ¥2.1 billion increase forconsolidated subsidiaries).
 Operating profit is expected to increase due to increased gross profit made possible by higher sales.
(Billions of yen)

Consolidated

FY2023

Net sales

FY2024 forecast

Change

YoY

201.0

210.0

8.9

104%

Operating profit(5.9%)

11.9 （6.0%）

12.5

0.5

105%

Ordinary profit(6.3%)

12.7 （6.8%）

14.3

1.5

112%

Profit attributable to owners ofparent

(3.9%)

7.9 （4.2%）

8.8

0.8

111%

* Figures in ( ) are sales margins.

12

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FY2024 Earnings Forecasts (Orders received and net sales by type of construction, parent) Orders received is expected to decrease by ¥22.3 billion (lower construction overall, including Air-Conditioning
Piping Work) Net sales is expected to increase by ¥6.8 billion (mainly due to increases in Indoor Electrical Work and AirConditioning Piping Work)

Net sales

Orders received(Billions of yen)(Billions of yen)

88.7

85.3
78.7

FY2023

183.3

82.0

FY2024161.0

FY2023157.1（-22.3）

FY2024164.0（+6.8）

40.9

12.2

9.9 8.9
Indoor Electrical

Air-Conditioning
Piping32.6
29.5

31.328.6

29.7

Information
Communication
Equipment

DistributionLine

31.3 28.6
8.710.8

8.5

Underground Power Linefor Transmission/Distribution

13

Indoor Electrical

Air-Conditioning
PipingInformation
Communication
Equipment

8.7 10.0
Distribution
Line

Underground Power Linefor Transmission/Distribution

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3. Medium-Term Management Plan 2024
[FY2021-2024] Actions

14

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Medium-Term Management Plan 2024 (Theme and sub-theme)

Theme“Change & Growth For All”
 In order for the Group to continue to grow, it is essential that we continue to transform ourselves
responding more swiftly than ever to changes in the environment.

Sub-theme
Strengthening sales and construction systems, and expanding profits

 Continue to strengthen our foundation in the Chugoku region and expand business in urban areas, toexpand orders and strengthen construction systems.
 By improving construction efficiency and reducing costs, etc., we aim to secure and increase profitsand strengthen competitiveness.
Promoting DX and Decarbonization
 Promote the increase in productivity through DX
 Towards carbon neutrality, we support our customers' decarbonization such as through our internalconsumption solar PPA business, along with our own decarbonization.

15

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Medium-Term Management Plan 2024 (Core measures)
Expand orders and strengthen
construction systems

 Strengthen sales capabilities
 Strengthen and enhance our design capability through the use of analysis ofactual data and BIM, etc.
 Strengthen and enhancing construction system
 Cooperating more closely with group companies

Secure and expand profits, andimprove competitiveness Use equalization and frontloading of work to raise construction efficiency
 Cost reductions involving cooperation between the company as a whole andgroup companies Improving productivity through the promotion of DX

Secure human resources andEnhance development of
human resources Nurture human resources with the aim of strengthening construction
management
 Secure engineers/technicians across the Group as a whole Create a fulfilling workplace

Improve quality

 Reliable contributions to the stable supply of electric power Increase customer satisfaction

Expand the business byinvesting for growth (M&A,
equity stakes, etc.)

 Promote M&As with the aim of strengthening construction systems, etc.
 Promote technical research and development Decarbonize our own company
 Promote environmental businesses to support decarbonization

16

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Medium-Term Management Plan 2024 (Numerical targets, consolidated)
Initial targets

Net sales: ¥210 billion

Revised targets¥210 billion

Operating profit: ¥12 billion ROE: unspecified¥12.5 billion

4.2%

Medium-Term Management Plan 2024
Net sales

190.6
Subsidiaries

Chudenko

153.0

3.8
10.4
OperatingprofitFY2021

ROE

4.2

3.9
148.2

6.6

46.0

43.8

40.7

37.6

210.0

201.0

189.0

(Billions of yen)

8.3

157.1

11.9

164.0
7.9

- 3.4

12.5

12.0

8.8

Net profit

FY2022

FY2023

FY2024 forecast（Final FY of Medium-Term Plan）

- 6.9

17

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Medium-Term Management Plan 2024 (Secure and nurture human resources)
Number of new hires through periodic recruitment
FY2021

FY2022

FY2023

FY2024FY2025 plan

135

116

135

132

170

Employee composition by age group(parent)

Number of persons with qualification

As of April 1, 2024
60～
6%
50～59
24%

40～49
18%

19～29
26%

30～39
26%

Number of qualified personnel

Qualification

October 2018

April 2024

ChangeElectrical Construction Management
Engineers (1st and 2nd grade)

1,037

1,237

200

Plumbing Construction Management
Engineers (1st and 2nd grade)

278

321

43

54

68

14

Professional Engineers• Personnel with multiple qualifications as Construction Management Engineers(Electric Works, Piping Works): 68

Just under 30% are under 30

Growth of younger
employees
18

Improve technical andconstruction skills
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Medium-Term Management Plan 2024 (Concrete measures for implementing capital policy)
Concrete measures for implementing capital policy

1. Investing for sustainable growth
We will invest around ¥40 billion for sustainable growth, including business expansion and securing andnurturing human resources.
 M&A in and around our core business Human resource development and work style reform Decarbonizing our own company
 Promotion of environmental business as a means to assist our customers in their decarbonization
efforts
・Internal-consumption solar power PPA projects and energy-saving proposals such as ESCO, etc.
・Invest in renewable energies
 Invest in promising businesses, etc.

2. Shareholder returns
 Focus on paying sustainable and stable dividends, targeting DOE (consolidated dividend on equity)of 2.7%
 Comprehensively review the business environment, etc. and implement share buybacks asnecessary.

19

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Medium-Term Management Plan 2024 (Shareholder returns)
Shareholder return trends

Dividend

Share buyback

FY2021

FY2022

FY2023

Annual dividend per share

¥104

¥104

¥104

DOE

2.75%

2.93%

2.89%

Consolidated payout ratio

86.0%― (note)71.5％

Consolidated total return ratio

106.1%— (note)89.8％

Number of shares

600,000

390,000

600,000

Cost¥1.3 billion¥0.8 billion¥1.4 billion

Note: Not reported for FY2022 due to a net loss

[Reference] Dividend yield: 3.39% (closing price at end of March 2024: ¥3,065)

20

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Dividends and payout ratio Forecast for FY2024: Annual dividend of 120 yen, payout ratio of 73.9%, dividend yield of 3.86% (*)

【Dividends and Payout Ratio】
120.7

70.5%

67.3

Payout ratio

34.8

38.7

94.4
71.2

86.0

71.5

73.9

44.9

13.0

Dividend per share

62¥20
FY201272

72

FY2015FY2016

104

104

104

104

104

104

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023
plan

94

120

30
FY2013

FY2014FY2024
forecast

Dividend policy[FY2012][FY2013][FY2014][FY2017][FY2018]

Stabledividend
20 yenPerformancelinked
payout ratio 30%

Target
DOE at2.0%

Target
DOE at2.5%

Target
DOE at2.7%(*) Calculated based on closing share price of 3,105 yen on May 8, 2024
21

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4. CHUDENKO Group 2030 Vision22

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CHUDENKO Group 2030 Vision (Theme and Group ideal)

Theme

Change & Growth For All ―Toward Sustainable Growth―Group ideal
Achieve sustainablegrowth and contribute to
the realization of asustainable society
Ensure all workers areproud and happy totake on the challengeof making reforms

Respond to society’s
diverse needs withadvanced technology
and quality

23

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CHUDENKO Group 2030 Vision (Target) Consolidated performance Net sales: ¥250 billion Operating income: ¥17 billion ROE: 5.0% or more CO2 emission reductions toward carbon neutrality: 46% or more (compared to FY2013)
 Creating an environment that supports diverse personnel to play active roles and diverse ways of working

Medium-Term Management Plan 2024

2030 Vision(Billions of yen)

190.6

5.5%

189.0

Subsidiary Netsales

37.6

201.0
4.4 Consolidated

operatingprofit margin

40.7

3.8％

210.0

5.9

46.0

43.8

6.0

250.0

(Billions of yen)

6.8%+

4.2
5.0%+

3.9

ROE

17.0
Chudenko Net sales

153.0

10.4
148.2

83

157.1

11.9

164.0

12.5

Operatingprofit-3.4
FY2021

FY2022

FY2023

FY2024 forecast

24

FY2030 target

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5．Management measures taking into
account capital costs and share price25

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Recognition of Current Situation“Medium-Term Management Plan 2024” Actions■ Strengthening foundation in the Chugoku region■ Expanding business in urban areas■ Business expansion through growth investments■ Enhancing shareholder returns(Billions of yen)

184.4

Net sales

168.8
4.9

5.1

Operating profit

8.3

Net profit

9.4
8.1

190.6

201.0

189.0

5.5

10.4
6.6

4.4

8.3

■ Improving productivity

3.8

2.3

3.9

3.1
-3.4

5.9

11.9
7.9

2019

2020

2021

2022

2023



ROE improved to around 4%



Cost of shareholders’ equity (4.5%) has not been reached

4.7

0.59

0.61

0.53

0.59

0.79

2019

2020

2021

2022

2023

-6.9
2019


2020

2021

2022

2023

Increase in net sales and operating profit, improvement in operating profit margin26



PBR is below 1x

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Initiatives (for FY2024, FY2025 and Beyond)

Improve profitability

Strengthen IR activities••

Net sales: ¥210 billion
ROE: 4.2% or higher

operating profit: ¥12.5 billion

ＰＢＲ
Boost

Strengthen andenhance capital policy• Achieve financial targets of the "Medium-term Management Plan 2024“• Expand business investments in human capital and growth• Enhance shareholder returns• Reduce cross-shareholdings with diminished holding significance• Enhance investor meetings and dialogue with shareholders andinvestors• Implement further timely and appropriate information disclosures

 The initiatives for FY2025 and beyond will be outlined in the next medium-term management plan to be
formulated within FY2024, with emphasis on achieving ROE of 5% or higher at the earliest opportunity
27

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6. Reference Information

28

Copyright©2024CHUDENKO Corporation.All Rights ReservedReference (Outline of CHUDENKO CORPORATION)
Company name

CHUDENKO CORPORATION

Representative

Takafumi Shigeto
Representative Director and President

Established

September 1944 (as Chugoku Electrical Construction Co., Ltd.)

Capital¥3,481.9 million

Stock exchange listing

Prime Market, Tokyo Stock Exchange

Head Office location

Hiroshima City
Head Office(Chudenko Peace Boulevard Bldg.)

Consolidated
subsidiaries

14

Business activities

General equipment engineering services, sales of electrical materials, insurance agency,
leasing

Number of employees

4,519 (Consolidated)

3,368 (Chudenko parent)(End of FY2023)

Sales¥201.0 billion (Consolidated)¥157.1 billion (Chudenko parent)(FY2023)

Total assets¥280.5 billion (Consolidated)¥255.1 billion (Chudenko parent)(End of FY2023)

29

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Network (Chugoku region)

67 offices, with the core consisting of nine branch companies in the Chugoku region
Building an efficient construction system and improving emergency readiness

67 business offices in Chugoku region

Tottori Supervising Branch

Shimane Supervising
Branch(as of March 2024)

Okayama Supervising
BranchHead OfficeCentral Hiroshima Branch
Eastern Hiroshima Branch

Yamaguchi Supervising
BranchEastern Yamaguchi
BranchKurashiki Branch

Hiroshima Supervising
Branch30

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Business Bases (Urban areas and overseas) Expand business by establishing headquarters and branches in urban areas
 Establish overseas subsidiaries in Malaysia, Singapore, Vietnam[Urban areas][Overseas]

SHOWA VIETNAM（VIETNAM）

Kyushu Branch

Osaka Headquarters

CHUDENKO Sdn. Bhd.
(Malaysia)

Tokyo Headquarters

RYB Engineering(Singapore)

Nagoya Branch

31

Copyright©2024CHUDENKO Corporation.All Rights ReservedReference (Net sales and ratio of operating margin—comparison with other companies in the power industry, consolidated) Operating profit margin for FY2023 was 5.9%, below the average of other firms in thesame industry
Net sales and ratio of operating margin (FY2022 & FY2023)
12.0

Operating margin (%)

FY2022

FY2023• Weighted average for eight companies
in the same industry

Company A

8.0

Company C
Company G
Company D

CHUDENKO
5.9％

4.0

Company B

Company E

FY2023

6.6％

FY2022

5.9％

Company F
Company H

0.0
0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Net sales (billions of yen)32

Copyright©2024CHUDENKO Corporation.All Rights ReservedReference (Overview of CHUDENKO Group)<Consolidated subsidiaries>
Location

Voting rights
held byChudenko

Sanshin Electric Materials Co., Ltd.

Hiroshima City

50.03%

Sales of electrical equipment and electrical works materials, telecommunications
equipment work

CHUKO KAIHATU Corporation

Hiroshima City

100.0%

Insurance agency, leasing, etc.

Eapec Hiroshima Co., Ltd.

Hiroshima City

100.0%

Design and estimation of electrical/air-conditioning piping works, etc.

Chudenko Techno Co., Ltd.

Hiroshima City

100.0%

Installation of distribution line work

Chudenko Eletech
Hiroshima/Shimane Co., Ltd.

Hiroshima City

100.0%

Design and implementation of electrical works, etc.

Chudenko Eletech Okayama/TottoriCo., Ltd.

Okayama City

100.0%

Design and implementation of electrical works, etc.

Chudenko Eletech Yamaguchi Co., Ltd.

Yamaguchi City

100.0%

Design and implementation of electrical works, etc.

Sugiyamakankousetubi Co., Ltd.

Yokohama City

100.0%

Design and installation of air-conditioning piping works, etc.

Hayamizudenki Co., Ltd.

Kobe City

100.0%

Design and implementation of electrical works, etc.

Showa Corporation

Tokyo

100.0%

Design, installation and supervision of heat insulation works, manufacture and sales ofheat insulated pipe supports

SHOWA VIETNAM CO., LTD.

Vietnam

100.0%

Import/export, wholesale and retail sales of air conditioning piping materials, design,
construction and supervision of heat insulation work

CHUDENKO(MALAYSIA)SDN. BHD.

Malaysia

100.0%

Design and implementation of electrical works, etc.

RYB ENGINEERING PTE LTD

Singapore

100.0%

Design and implementation of electrical works, etc.

ELEVATE ENGINEERING SOLUTION
PTE. LTD.

Singapore

100.0%

Design and implementation of electrical works, etc.

Company nameMain business

33

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Cautionary Note on Forward-looking Statements
Various data, forward-looking statements pertaining to earnings forecasts and other matters in thisreport are based on information available to and certain assumptions judged reasonable by theCompany. As such, actual earnings and other outcomes may differ materially from the content of
this report due to a variety of factors.

[For inquiries on this material]

6-12 Koamicho, Naka-ku, Hiroshima-shi 730-0855 Japan
TEL: 082-233-9034
FAX: 082-234-8075
E-mail: kikaku@chudenko.co.jp
Investor Relations, Corporate Planning Department, Planning Division34

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