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During the fiscal year 2024 (April 1, 2024 to March 31, 2025), the domestic economy continued to recover, supported by improvements in employment and income conditions, as well as the expansion of inbound demand. Looking ahead, the recovery trend remains gradual. However, toward the end of the fiscal year, risks that could negatively impact the economy have heightened, including leadership transitions in Western countries and fluctuations in domestic and international financial markets.

In the construction industry, challenges persist due to rising costs of construction materials and labor shortages, leading to increased construction expenses and a difficult business environment. Meanwhile, regarding order conditions, although public sector construction orders have declined, orders for private sector construction projects, across both manufacturing and non-manufacturing industries, have increased. Consequently, the total amount of orders has risen compared to the previous fiscal year, indicating steady construction demand.

In May 2022, the Group announced the “Medium-Term Management Plan 2024 - Rolling Plan” to promote the evolution of value provided to customers in the core businesses of architectural construction, civil engineering, and strategy. In addition, the Company has identified the construction of new TODA BUILDING, overseas business, and renewable energy business such as floating offshore wind power generation as key management priorities and has been making growth investments in these businesses and strengthening its business portfolio. During the period under review, the Company continued to invest in growth under the active involvement of top management in order to achieve medium- to long-term growth. To achieve ROE (return on equity) target of 8% or higher in the medium- to long-term while promoting growth investments, the Company has also set ROIC (return on invested capital) of 5% or higher as a management indicator of profitability, and has been working to strengthen its investment process.

Under these circumstances, the Group’s consolidated results were as follows:
Consolidated net sales reached ¥586.6 billion, marking a 12.3% increase from the previous consolidated fiscal year. This growth was driven by higher sales in the Architectural Construction Business, supported by progress in large-scale projects. Additionally, the Domestic Investment and Development Business experienced increased sales, driven by higher real estate transactions.

egarding operating income/loss, gross profit increased to ¥76.7 billion, reflecting a 21.7% rise compared to the previous consolidated fiscal year. This growth was primarily driven by improved profitability in the Company's Architectural Construction Business and higher gross profit from real estate sales in the Domestic Investment and Development Business. Selling, general, and administrative expenses increased to ¥50.1 billion, primarily due to higher personnel costs, marking a 11.0% rise compared to the previous consolidated fiscal year. Despite this increase, operating income reached ¥26.6 billion, reflecting a 48.8% increase y-o-y.

Regarding ordinary income, dividend income from investment securities held by the Company was recorded as non-operating income, contributing to a total of ¥29.0 billion, a 14.1% increase compared to the previous consolidated fiscal year.

Net income attributable to owners of the parent was ¥25.1 billion, a 56.4% increase from the previous consolidated fiscal year. The Environment and Energy Business recognized impairment losses, along with anticipated future losses, while a gain on sales of investment securities was recorded from the proceeds generated by the sales of cross-shareholdings.