Nichireki Group Co. Ltd. · TSE:5011

Nichireki — FY3/25 Earnings Presentation

94 slides from Nichireki's earnings presentation, May 29, 2025

Slide 1: Financial Results for FY3/25
Financial Results for FY3/25 May 29, 2025 NICHIREKI GROUP CO., LTD. (TSE Prime, Stock Code: 5011) A leading company in creating ‘roads’ which contributes to the society through creating ‘roads’ 1
Slide 2: Sow the Seeds
“Sow the Seeds” “Sow the Seeds” “Let us advance forward by sowing the good seeds”. This is the motto of the Nichireki Group. Let us sow the strong seeds that will not die even if a severe drought strikes. By the sweat of our brow, let us spread fertilizer. Then the plants will grow up to bear good f
Slide 3: Corporate philosophy
Corporate philosophy Corporate philosophy of Nichireki Group Basic philosophy (Spirit of sowing the seeds) Sowing the seeds, giving them water, letting them flower, Continuously creating new business through the accumulation of unceasing effort Management philosophy To ensure the Nichireki Group con
Slide 4: Table of Contents
Table of Contents I. Overview of FY3/25 Financial Results II. Business Forecasts for FY3/26 III. Future Outlook IV. Capital Policy V. Topics (Appendix) Company Profile Copyright© NICHIREKI CO., LTD. All rights reserved. 4
Slide 6: Financial Highlights I (Business Environment)
Financial HighlightsⅠ(Business Environment) Business Environment Surrounding Our Group  Against the backdrop of strong demand for construction stemming from disaster prevention/mitigation and national resilience initiatives, substantial public works budgets have been secured on a nominal basis.  S
Slide 7: Consolidated Business Results/Full Year
Financial HighlightsⅡ (Consolidated Business Results/Full Year) (Million yen) FY3/24 FY3/25 YoY change (%) Net sales 73,832 75,745 2.6% ⇧ Gross profit 16,464 17,338 5.3% ⇧ SG&A expenses 10,444 11,070 6.0% ⇧ Operating profit 6,019 6,268 4.1% ⇧ Ordinary profit 6,390 7,047 10.3% ⇧ Profit attributable t
Slide 8: Consolidated Business Results/Q4 Alone
Financial HighlightsⅡ (Consolidated Business Results/Q4 Alone) (Million yen) FY3/24 FY3/25 YoY change (%) Q4 Alone Q4 Alone Net sales 18,743 19,427 3.6% ⇧ Gross profit 3,821 4,561 19.4% ⇧ SG&A expenses 2,683 2,847 6.1% ⇧ Operating profit 1,137 1,713 50.6% ⇧ Ordinary profit 1,248 2,168 73.7% ⇧ Profit
Slide 9: Analysis on Changes in Profit
Analysis on Changes in Profit (Million yen) Increase in profits: 1,711 Decrease in profits: -1,351 306 121 -626 365 43 -724 874 Increase in non-operating Decrease in corporate extraordinary losses Increase in gross profit operating expenses Increases in SG&A Decrease in non- extraordinary and other
Slide 10: Reference: Dubai Crude Oil Prices (Yen/t)
Reference: Dubai Crude Oil Prices (Yen/t) *159L/barrel (Yen/t) 120,000 FY2022 avg. Approx. ¥80 thousand/ t FY2023 avg. FY2024 avg. Approx. ¥75 thousand/ t FY2021 avg. Approx. ¥75 thousand/ t 100,000 Approx. ¥55 thousand/ t 80,000 FY2019 avg. Approx. ¥41 thousand/ t 60,000 FY2020 avg. Approx. ¥29 tho
Slide 11: Business Activities by Segment
Financial Highlights Ⅲ (Business Activities by Segment) Applied and Processed Asphalt Products Business ◆ Respond to raw material prices that continue to remain high ◆ Further strengthen activities to design and receive orders for high value-added products with longer life, higher performance, and r
Slide 12: Financial Highlights IV (by Segment/Full Year)
Financial Highlights Ⅳ (by Segment/Full Year) (Million yen) Applied and Processed Asphalt Road Paving Business Other Business Products Business FY3/24 FY3/25 YoY change FY3/24 FY3/25 YoY change FY3/24 FY3/25 YoY change Segment sales 25,937 25,826 -0.4% ⇩ 47,580 49,602 4.2% ⇧ 314 316 0.6% ⇧ Segment p
Slide 13: By Segment/Full Year (Excluding management service fees)
Financial Highlights Ⅳ (by Segment/Full Year) * Excluding management service fees (Million yen) Applied and Processed Asphalt Products Road Paving Business Business FY3/24 FY3/25 YoY change FY3/24 FY3/25 YoY change Segment sales 25,937 25,826 -0.4% ⇩ 47,580 49,602 4.2% ⇧ Segment profit 5,140 5,430 5
Slide 14: Financial Highlights IV (by Segment/Q4 Alone)
Financial Highlights Ⅳ (by Segment/Q4 Alone) (Million yen) Applied and Processed Asphalt Road Paving Business Other Business Products Business FY3/24 FY3/25 FY3/24 FY3/25 FY3/24 FY3/25 YoY change YoY change YoY change Q4 Alone Q4 Alone Q4 Alone Q4 Alone Q4 Alone Q4 Alone Segment sales 5,938 5,427 -8
Slide 15: By Segment/Q4 Alone (Excluding management service fees)
Financial Highlights Ⅳ (by Segment/Q4 Alone) * Excluding management service fees (Million yen) Applied and Processed Asphalt Road Paving Business Products Business FY3/24 FY3/25 FY3/24 FY3/25 YoY change YoY change Q4 Alone Q4 Alone Q4 Alone Q4 Alone Segment sales 5,938 5,427 -8.6% ⇩ 12,728 13,927 9.
Slide 16: Ratio of Operating Results by Segment
Ratio of Operating Results by Segment Net sales Operating profit 0.4% アスファルト Applied and processed asphalt 13.7% アスファルト Applied and 応用加工 processed products business 応用加工 asphalt 製品事業 products 製品事業 business 34.1% 道路舗装 Road paving 道路舗装 Road paving business 事業 FY3/25 business 46.2% 事業 FY3/25 10,569 mil
Slide 17: Changes in Operating Margin and Dubai Crude Oil Prices
Changes in Operating Margin and Dubai Crude Oil Prices (Avg.) ◆Considering the impact of exchange rates アスファルト応用加工製品事業 Operating margin of Applied and ドバイ原油価格（円/t） Dubai Crude Oil Prices (Yen/t) (%) processed asphalt products business (Avg. for Apr.-March.) (Yen/t) 営業利益率（4～3月平均） 45.0% 80,000 90,000
Slide 18: Operating Margin and Dubai Crude Oil Prices (Excl. fees)
Changes in Operating Margin and Dubai Crude Oil Prices (Avg.) * Excluding management service fees Operating margin of Applied and アスファルト応用加工製品事業 Dubai Crude Oil Prices (Yen/t) ドバイ原油価格（円/t） (%) processed asphalt products business (Avg. for Apr.-March.) (Yen/t) 営業利益率（4～3月平均） 45.0% 80,000 90,000 75,00
Slide 19: Balance Sheet (March 31, 2025)
Balance Sheet (March 31, 2025) *: Figures in brackets indicate increase/decrease for end-FY3/24 (Million yen) Current liabilities Liabilities Current assets 16,160 (-1,704) 35,047 56,076 Non-current liabilities (+14,789) (+6,511) 18,887 (+16,494) Assets 112,368 (+17,273) Net assets Non-current asset
Slide 21: External Environment Surrounding Our Group
External Environment Surrounding Our Group Policy Economy • Final year of the five-year accelerated • Although the economy shows program for disaster gradual recovery supported by prevention/mitigation and national improvements in employment and resilience income conditions, uncertainty • The succes
Slide 22: Full-Year Business Forecasts (Consolidated)
Full-Year Business Forecasts (Consolidated) (Million yen) FY3/25 FY3/26 YoY change (%) Result Forecast (*) Net sales 75,745 80,000 5.6% ⇧ Operating profit 6,268 7,000 11.7% ⇧ Ordinary profit 7,047 7,300 3.6% ⇧ Profit attributable to owners of parent 4,848 4,900 1.1% ⇧ *Assumed crude oil price: $75 p
Slide 23: Full-Year Business Forecasts (Changes)
Full-Year Business Forecasts (Changes) (Million yen) Net sales (Million yen) Operating profit and operating margin （％） 90,000 10,000 12.8 14.0 80,000 9,000 11.0 12.0 70,000 8,000 9.7 7,000 8.8 10.0 60,000 8.2 8.3 6,000 8.0 50,000 5,000 40,000 78,001 78,397 73,832 75,745 80,000 9,140 8,566 6.0 71,471
Slide 24: Forecasts: Applied and Processed Asphalt Products Business
Business Forecasts by Segment (Applied and Processed Asphalt Products Business) (Million yen) Operating profit and operating margin （％） (Million yen) Net sales 30,000 8,000 31.1 35.0 7,000 30.0 25,000 25.6 6,000 22.1 25.0 20,000 5,000 19.8 18.9 17.1 20.0 15,000 28,000 4,000 25,796 27,175 25,937 25,8
Slide 25: Forecasts: Asphalt Products (Excl. management service fees)
Business Forecasts by Segment (Applied and Processed Asphalt Products Business) * Excluding management service fees (Million yen) Net sales (Million yen) Operating profit and operating margin （％） 30,000 8,000 35.0 31.1 25,000 7,000 30.0 25.6 6,000 22.1 25.0 20,000 19.8 21.0 21.1 5,000 28,000 20.0 15
Slide 26: Forecasts: Road Paving Business
Business Forecasts by Segment (Road Paving Business) Operating profit and operating margin (Million yen) Net sales (Million yen) （％） 60,000 6,000 12.0 10.3 9.6 50,000 5,000 9.1 9.2 10.0 8.5 7.5 40,000 4,000 8.0 30,000 3,000 6.0 52,000 5,212 4,996 50,585 51,901 50,913 47,580 49,602 4,630 4,360 4,232
Slide 27: Forecasts: Road Paving (Excl. management service fees)
Business Forecasts by Segment (Road Paving Business) * Excluding management service fees (Million yen) Net sales (Million yen) Operating profit and operating margin （％） 60,000 6,000 12.0 10.3 9.9 10.0 50,000 9.6 5,000 9.1 9.2 10.0 40,000 4,000 8.0 30,000 52,000 3,000 6.0 50,585 51,901 50,913 47,580
Slide 28: Revision of Numerical Targets in the Medium-Term Management Plan
Revision of Numerical Targets in the Medium-Term Management Plan ◆At the Board of Directors Meeting on May 12, 2025, we resolved to once again revise the numerical targets under the Medium- Term Management Plan “SHINAYAKA 2025.” Reasons for the Revision:  Decline in construction volume on a real ba
Slide 30: Growth Strategy of NICHIREKI Group
Growth Strategy of NICHIREKI Group Aim for further growth by leveraging R&D capabilities to expand markets and develop high value-added products and construction methods. Expand product lineup and increase added value Existing product/construction method New product/construction method Develop high
Slide 31: Earthquake-resistant Pavement
Earthquake-resistant Pavement ◆ Combines highly durable asphalt pavement with earthquake-resistant roadbed. In addition, by designing the joints to prevent water from entering, it is possible to expect a pavement that is more resistant to disasters. Minimize damage caused by the earthquake and secur
Slide 32: Support for the Noto Peninsula Earthquake Disaster
Support for the Noto Peninsula Earthquake Disaster  Following the Noto Peninsula Earthquake, our company took part in emergency works at Noto Airport by conducting asphalt emulsion spraying. We received a letter of appreciation from the Director of the Kanazawa Port and Airport Engineering Office,
Slide 33: Expressway Repair by High-Modulus Asphalt Mixture (HiMA)
Expressway Repair by High-Modulus Asphalt Mixture (HiMA) ◆NEXCO East Japan, Central Japan and West Japan have started to apply a new High-Modulus Asphalt Mixture (HiMA) to the upper layer of the roadbed in their expressway renewal projects. ◆Plan to invest 243 billion yen over the next 15 years to m
Slide 34: MLIT Initiatives for Upgrading Roadbed Quality
MLIT Initiatives for Upgrading Roadbed Quality MLIT: “New Technology Themes to Be Implemented from FY2024” (March 13, 2024) https://www.mlit.go.jp/road/ir/ir-council/dourogijutsu/pdf12/03.pdf Copyright© NICHIREKI CO., LTD. All rights reserved. 34
Slide 35: MLIT Policies Toward Low-Carbon in the Road Sector
MLIT Policies Toward Low-Carbon in the Road Sector Key Policy Pillars: Low-carbon initiatives throughout the entire life cycle of road infrastructure Extending the service life of road infrastructure Planned and intensive efforts to extend service life from a preventive maintenance perspective ↓ Red
Slide 36: MLIT Policies Toward Low-Carbon in the Road Sector
MLIT Policies Toward Low-Carbon in the Road Sector 2030 Priority Projects through Multi-Stakeholder Collaboration (National government + expressway companies + local governments + private sector) Promotion of Low-Carbon Materials Shipment ratio of low-carbon asphalt (warm-mix asphalt): Target of 6%
Slide 37: National Resilience
National Resilience  On April 1, 2025, the government convened the National Resilience Promotion Headquarters  Released a draft of the First National Resilience Medium-Term Implementation Plan to be finalized around June  The project scale is expected to increase from 15 trillion yen under the pr
Slide 38: Participation in the India High-Speed Rail Project
Participation in the India High-Speed Rail Project [Seven Routes Announced in 2009]  In 2015, during the Japan–India Summit Meeting, both governments agreed to adopt the Japanese Shinkansen system for India’s high- speed rail.  The first section selected is the Mumbai–Ahmedabad line (505 km).  To
Slide 39: Overview of the Joint Venture in India
Overview of the Joint Venture in India  To establish the joint venture, we concluded a JV agreement on March 6, 2025 with OG CORPORATION, a chemical trading company. Item Overview Trade Name NICHIREKI OG INTERNATIONAL Private Limited Capital INR 30,000,000- (approx. 53 million yen) NICHIREKI GROUP
Slide 40: About the Tsukuba Big Ship Project
About the Tsukuba Big Ship Project ◆Total planned investment: approximately 30 billion yen ◆Construction schedule: Completion of office buildings and plant facilities by the first half of FY2026, Commencement of operations at the new plant in FY2027 Improve production capacity Manufacture high value
Slide 41: Investment Effects of the Tsukuba Big Ship Project (1)
Investment Effects of the “Tsukuba Big Ship” Project (1) Item Description Key Effects Increased production capacity for paving materials, including high-performance asphalt emulsions and high-performance modified asphalt Increase in sales Expansion of production Establishment of a flexible productio
Slide 42: Investment Effects of the Tsukuba Big Ship Project (2)
Investment Effects of the “Tsukuba Big Ship” Project (2) Item Description Key Effects Implementation of advanced environmental initiatives through the use of Reduction in energy-related natural and renewable energy sources, resulting in reduced CO₂ emissions costs Environmentally conscious productio
Slide 43: Received the 26th National Land Development Technology Award
Received the 26th National Land Development Technology Award "Award for Excellence" ◆ July 31, 2024 Metropolitan Expressway Company Limited and Nichireki jointly received the Award for Excellence at the 26th National Land Development Technology Award for the development of high-durability, ultra- lo
Slide 44: Received the Infrastructure Maintenance Award: Minister of Defense Award
Received the Infrastructure Maintenance Award: Minister of Defense Award ◆At the 8th Infrastructure Maintenance Award, the Company’s high rutting-resistance pavement technology (applied in apron repair projects) received the Minister of Defense Award in the Activities Supporting Maintenance category
Slide 45: Received the Pavement Engineering Paper Award
Received the Pavement Engineering Paper Award ◆A paper jointly submitted with East Nippon Expressway Company Limited Tohoku Regional Office and Hokkaido University of Science to the Journal of JSCE – Special Issue on Pavement Engineering, titled: “Development of Asphalt Mixtures for Crack Prevention
Slide 46: Establishment of a Joint Research Program at Tohoku University
Establishment of a Joint Research Program at Tohoku University Graduate School ◆ In April 2023, we jointly established the Infrastructure Management “Tastainability” Joint Research Program with the Infrastructure Management Research Center (IMC), Graduate School of Engineering, Tohoku University. Co
Slide 47: Launch of Demonstration Project in Ushiku City
Launch of Demonstration Project in Ushiku City ◆As part of the Strategic Innovation Creation Program (SIP) led by the Infrastructure Management Research Center (IMC), Graduate School of Engineering, Tohoku University—“Technology for Building Regional Infrastructure Group Management through EBPM”—a d
Slide 48: Romen Catcher Super MWD
Romen Catcher Super MWD Mobile Deflection Measurement Device (MWD) “Romen Catcher Super MWD”  Commercialized based on joint research with the Public Works Research Institute (PWRI) and other institutions  Service launch: March 2025  Enables measurement while vehicles are in motion, without the ne
Slide 49: Smart Stabilizer Monitoring System
Smart Stabilizer Monitoring System ◆The STABI-CEMENT RC Construction Method using ICT stabilizers contributes to the further longevity of pavements by increasing construction accuracy and enabling the construction of higher quality roadbeds. ◆ December 2024: Registered with the Ministry of Land, Inf
Slide 50: Response to Construction and Logistics 2024 Problems
Response to Construction and Logistics 2024 Problems [Construction site] [Production and logistics sites]  Use of construction robots  Automation of plant equipment  Various DX measures for logistics  Remote on-site inspection system, etc. Construction and Logistics 2024  Data sharing and work
Slide 51: Nichireki Group's Response to Climate Change
Nichireki Group’s Response to Climate Change ◆The NICHIREKI Group regards the impact of climate change on its business as an important management issue and actively implements measures to address climate change. <CO2 emission reduction targets>  Endorsement of the Task Force on Climate Related Fina
Slide 53: Status of Treasury Stock Repurchase
Status of Treasury Stock Repurchase Details Progress Progress Item Ratio (Announced Feb. 27, 2025) (as of Apr. 30, 2025) Number of shares Upper limit 1,000,000 shares 259,700 shares 26.0％ Total acquisition Upper limit 2,600,000,000 yen 596,883,185 yen 23.0％ cost (2.6 billion yen) (Approx. 0.6 billio
Slide 54: Dividend Forecast and Changes
Dividend Forecast and Changes (Yen) Dividend per share 80 75 70 50 中間 Interim 期末 Year-end 中間 Interim 期末 Year-end 中間 Year-end Interim Interim期末 Year-end FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/26 FY3/24 FY3/25 (Forecast) Ordinary Commemorative dividend dividend Copyright© NICHIREKI CO., LTD. Al
Slide 55: Shareholder Returns: Illustration of Total Payout Trend
Shareholder Returns: Illustration of Total Payout Trend ◆ While continuing to make growth investments for the future, we aim to steadily increase the total payout ratio and enhance shareholder returns. Projected Trend of Shareholder Returns and Total Payout Ratio (Million yen) 5,000 120% 4,500 100%
Slide 56: Cash Allocation (FY2022–FY2025)
Cash Allocation (FY2022–FY2025: Four-Year Period) ◆ By utilizing cash flows generated from business growth, we will invest in growth for the next generation while also providing more substantial shareholder returns. Cash Inflows Cash Outflows  Investment in the Tsukuba Big Ship Project (approx. 30.
Slide 57: Action to Implement Management Conscious of Cost of Capital and Stock Price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price (Summary) Current Assessment [Capital Profitability]  Since FY2020, we have achieved a higher level of ROE and net income compared with prior periods.  Shareholder returns have been strengthened in recent years. Di
Slide 58: Analysis of Current Conditions (Trends in Profit, ROE and PER)
Analysis of Current Conditions (Trends in Profit, ROE and PER) (Million yen) Changes in ROE/Profit (Yen) Changes in PER/EPS (Times) (%) 8,000 11.1 12.0 250 25.0 10.5 7,000 20.5 8.9 10.0 200 20.0 6,000 16.2 8.0 5,000 6.4 150 13.2 15.0 6.1 219.72 222.91 205.73 4,000 6.0 3.4 6,811 100 10.0 3,000 6,357
Slide 59: Analysis of Current Situation (Stock Price and PBR Trends)
Analysis of Current Situation (Stock Price and PBR Trends) Changes in Market Evaluation (Times) NICHIREKI stock price vs. TOPIX (Yen) (Stock price/PBR) (From FY2023) 200 3,000 1.20 180 0.97 0.98 2,500 1.00 0.83 160 0.77 2,000 0.80 140 0.62 0.55 1,500 0.60 120 2,471 2,578 1,000 2,180 0.40 100 1,580 1
Slide 60: Initiatives to Enhance Corporate Value (Summary)
Initiatives to Enhance Corporate Value (Summary) Aim to improve ROE by strengthening profitability and appropriately controlling capital, while at the same time improving PER by reducing capital costs Strengthening Reducing profitability business risk PBR ROE PER 𝐌𝐚𝐫𝐤𝐞𝐭 𝐜𝐚𝐩 𝐏𝐫𝐨𝐟𝐢𝐭…
Slide 61: Initiatives to Enhance Corporate Value (I) [Improve ROE]
Initiatives to Enhance Corporate Value (I) [Improve ROE]  Improving ROE Issues Response Specific measures Strengthening profitability Development and introduction of high- Strengthen R&D/Joint research with universities and external partners value-added products and construction methods Development
Slide 62: Initiatives to Enhance Corporate Value (II) [Improve PER]
Initiatives to Enhance Corporate Value (II) [Improve PER]  Improving PER (reducing capital-cost) Issues Response Specific measures Minimize business risk Developing products / methods that can reduce CO2 emissions Response to environmental and social Provide solutions to social issues such as stren
Slide 63: Status of Dialogue with Shareholders and Investors
Status of Dialogue with Shareholders and Investors Details of Engagement Frequency: Held quarterly for institutional investors and analysts Financial results briefing for Participants: Representative Director and President institutional investors and analysts Format: Online Frequency: Held once a ye
Slide 65: Topics (1) [FY2024 H1]
Topics (1) [FY2024 H1] May 45th 2024 Japan BtoB Advertising Awards Sep. Issue of Integrated Report (Japanese version) Received the Minister of Economy, Trade and Industry Award Exhibited at Highway Techno Fair 2024 Jul. Received the Excellence Award at the 26th National Land Technology Development A
Slide 66: Topics (2) [FY2024 H2-FY2025]
Topics (2) [FY2024 H2-FY2025] Nov. Issue of Integrated Report (English version) Mar. Launch of the “Romen Catcher Super MWD” service Dec. Exhibited at Social Infrastructure Tech 2024 Received a letter of appreciation for disaster relief Apr. Establishment of a joint venture in India support followin
Slide 67: Newspaper Advertisement
Newspaper Advertisement ◆July 30 and August 7, 2024 Ran a series of advertisements in the morning edition of The Nikkei newspaper for 2 consecutive weeks ◆Received the Gold Award in the Newspaper Advertising category at the 46th Japan BtoB Advertising Awards (2025). Copyright© NICHIREKI CO., LTD. Al
Slide 68: Awarded Work
Awarded Work ◆NICHIREKI ROAD CO., LTD. received an award for excellence from the Director-General of the Tokyo Port Bureau for paving work carried out on the Oi vertical line (container car lane). Copyright© NICHIREKI CO., LTD. All rights reserved. 68
Slide 69: Exhibition at Highway Techno Fair 2024
Exhibition at Highway Techno Fair 2024 ◆September 26 to 27, 2024 Jointly exhibited with Heat Rock Industry Co., LTD. at an exhibition sponsored by the Express Highway Research Foundation of Japan. We introduced the pavement technology on the life extension of the expressway. Copyright© NICHIREKI CO.
Slide 70: Exhibition at Social Infrastructure Tech 2024
Exhibition at Social Infrastructure Tech 2024 ◆ Dates: December 4–6, 2024 An exhibition focusing on countermeasures for aging social infrastructure and maintenance, viewed from an SDGs perspective. Our company showcased its cutting-edge technologies, with a particular emphasis on DX-driven inspectio
Slide 72: Corporate Profile
Corporate Profile No. of Name NICHIREKI GROUP CO., LTD. employee 1,386 employees (Consolidated, as of March 31, 2025) s Head office 4-3-29 Kudan-kita, Chiyoda-ku, Tokyo Business Planning and drafting of group management strategies, location descriptio business management and supervision of group com
Slide 73: History of Our Group
History of Our Group 1943 Eiichi Ikeda founded Nihon Rekisei Kagaku Kogyosho to engage in construction waterproofing works using asphalt. 1949 Founded a company 1950 Established a Tokyo Plant and Laboratory in Arakawa-ku, Tokyo; started production of asphalt emulsion 1954 Changed the corporate name
Slide 74: Business Overview
Business Overview The Nichireki Group develops business activities that offer a wide variety of products, technologies, works, and so forth mainly related to road paving. ● Applied and Processed Asphalt Products Business ● Road Paving Business Manufacturing and sales of applied and processed asphalt
Slide 75: Business Domain
Business Domain Tunnel Harbor Airport Highway/Local roads Viaduct Railroad/ Station Bridge Joints Traffic signs Overpass Parking lot Parks/Walkway Manhole Sidewalk/ Bicycle path Copyright© NICHIREKI CO., LTD. All rights reserved. 75
Slide 76: Consistent Pavement Solutions
Consistent Pavement Solutions Strengths in the Business Model Survey and diagnosis Construction Design and and R&D proposal management Manufacture and sales Copyright© NICHIREKI CO., LTD. All rights reserved. 76
Slide 77: R&D Capability
R&D Capability ◆ About 10 percent (about 40 employees) of the NICHIREKI employees belong to the technical research center and about JPY 1 billion is being invested in research and development ◆ Equipping performance evaluation testing devices for pavement, and promoting the research and development
Slide 78: Expanding Network throughout Japan
Expanding Network throughout Japan ◆ Offices ◆ Group companies 104 sites in Japan (44 out of 47 prefectures), (Consolidated subsidiaries) 4 sites overseas (NICHIREKI: 66) 38 companies including Branches: 11 site NICHIREKI CO., LTD. Sales Branches: 39 sites HOKKAIDO NICHIREKI CONSTRUCTION CO., LTD. S
Slide 79: NICHIREKI Group: Source of Competitive Advantage
NICHIREKI Group: Source of Competitive Advantage Consistent pavement solutions R&D capabilities Build an integrated solution system for pavement, from R&D capabilities that leverage creativity and survey and diagnosis of pavement to design and uniqueness to create new products and methods in proposa
Slide 80: What is Asphalt?
What is Asphalt? ◆ Petroleum asphalt (straight asphalt) is mainly used in road paving, as is the case with gasoline, naphtha, kerosene, diesel oil, and heavy oil. ◆ Asphalt is dissolved by adding solid and heat at normal temperature, and has the property of becoming liquid. Heating Become liquid at
Slide 81: What is Asphalt Pavement?
What is Asphalt Pavement? Composition of asphalt Paving with asphalt mix pavement 95% 5% Asphalt mixture Surface layer Asphalt emulsion (Tack coat) Aggregate (Crushed stone, sand) Asphalt Asphalt mixture Base layer Mixed Asphalt emulsion (Prime coat) Upper subbase Crushed Construction Sequence stone
Slide 82: What is Asphalt Emulsion?
What is Asphalt Emulsion? ◆ Asphalt emulsions are prepared so that asphalt can be handled in a liquid form even at normal temperature. Asphalt ◆ Composed of petroleum asphalt (straight asphalt) and an emulsified liquid containing a surfactant, which is dispersed in water with fine particles. Water S
Slide 83: What is Modified Asphalt?
What is Modified Asphalt? ◆ Modified asphalt has improved performance by adding various modifiers such as polymers to petroleum asphalt (straight asphalt) Water permeability and Long life Load carrying capacity low noise SUPER SHINAYAKAPHALT SUPER CONTAINERPHALT TOUGHPHALT SUPER Copyright© NICHIREKI
Slide 84: NICHIREKI's "Tastainability"
NICHIREKI's "Tastainability" The NICHIREKI Group responds to the CO2 emissions reduction needs of our stakeholders with environmentally friendly products and construction methods. Recycling Asphalt emulsion Modified asphalt Warm mix Long life Bridge deck slab Pavement for Low carbon waterproofing la
Slide 85: Image of CO2 Reduction through Products and Construction Methods
Image of CO2 Reduction through NICHIREKI's Products and Construction Methods NICHIREKI Customer Modified asphalt (Asphalt mixture manufacturing plant)  Reform of manufacturing methods  Reduction of production temperature  Purchase of low-carbon fuels and green electricity  Installation of solar
Slide 86: SUPER CONTAINERPHALT
SUPER CONTAINERPHALT Reduce CO2 emissions from asphalt mixture production by approx. 13%  A special modified asphalt with extremely high plastic deformation resistance, suitable for heavy-duty applications such as airports and harbors.  Compared to the conventional our product, Containerphalt S, t
Slide 87: SUPER SHINAYAKAPHALT
SUPER SHINAYAKAPHALT Reduce CO2 emissions from asphalt mixture production by approx. 22%  Specially modified asphalt that is flexible enough to be bent by hand and tough enough to withstand traffic loads.  Compared to the former SHINAYAKAPHALT, the mixture manufacturing temperature is reduced by 5
Slide 88: SUPER CONTAINERPHALT SUPER SHINAYAKAPHALT
SUPER CONTAINERPHALT SUPER SHINAYAKAPHALTLT Reduce CO2 emissions by approximately 48% by combining long-life and warm mix asphalt products ◆ SUPER CONTAINERPHALT and the SUPER SHINAYAKAPHALT, long-life asphalt mixtures, provides unprecedented long-life pavement. ◆ This reduces CO2 emissions by about
Slide 89: STABI-CEMENT RC Construction Method
STABI-CEMENT RC Construction Method Reduce CO2 emissions by approx. 22% through reusing existing pavement materials  Recycling damaged existing pavement in place and constructing new pavement reduces pavement waste generated from the site by approximately 80%. Contributes to further reduction of CO
Slide 90: SUPER SHINAYAKAPHALT STABI-CEMENT RC Construction Method
SUPER SHINAYAKAPHALT STABI-CEMENT RC Construction Method Reduce CO2 emissions by approx. 49% through long-life products and recycling  Paving with Super SHINAYAKAPHALT on foundations constructed using the STABI-CEMENT RC Construction Method achieves an unprecedented extension of pavement lifespan.
Slide 91: High-durability Waterproof Methods for Bridge Decks
High-durability Waterproof Methods for Bridge Decks Reduces CO2 emissions by approx. 50-75% over the 50- year life cycle of the pavement through long-life products ◆ Bridges are important lifelines that connect people, traffic, and the economy, and need to last long. Therefore, highly durable floor
Slide 92: ASWOOD Paving
ASWOOD Paving Reduce CO2 emissions by approx. 34% compared to conventional heated pavement  Woodchip pavement constructed by cold-laid paving  Excellent water permeability and soft texture, blend with the natural surroundings, and consider the landscape By using thinned wood without burning it, CO
Slide 93: Consideration for Roadside Conditions
Consideration for Roadside Conditions We provide stakeholders with safety and peace of mind by improving roadside conditions through the use of “Tastainability” products/construction methods. SUPER ROMENPATCH CHEMIPHALT MX SEAMLESS JOINT Reduction of noise Traffic safety/ Noise Reduction of noise an
Slide 94: Precautions / Contact Information
 Precautions Forward-looking statements, including business forecasts, contained in this material is based on information available at the time of preparation of the material and on our Company’s judgement and assumption. Actual results may deviate from current forecasts due to future changes in ec

Nichireki Group — FY3/25 Earnings Presentation on 6ix

Nichireki — FY3/25 Earnings Presentation

Slide 1: Financial Results for FY3/25

Slide 2: Sow the Seeds

Slide 3: Corporate philosophy

Slide 4: Table of Contents

Slide 5: I. Overview of FY3/25 Financial Results

Slide 6: Financial Highlights I (Business Environment)

Slide 7: Consolidated Business Results/Full Year

Slide 8: Consolidated Business Results/Q4 Alone

Slide 9: Analysis on Changes in Profit

Slide 10: Reference: Dubai Crude Oil Prices (Yen/t)

Slide 11: Business Activities by Segment

Slide 12: Financial Highlights IV (by Segment/Full Year)

Slide 13: By Segment/Full Year (Excluding management service fees)

Slide 14: Financial Highlights IV (by Segment/Q4 Alone)

Slide 15: By Segment/Q4 Alone (Excluding management service fees)

Slide 16: Ratio of Operating Results by Segment

Slide 17: Changes in Operating Margin and Dubai Crude Oil Prices

Slide 18: Operating Margin and Dubai Crude Oil Prices (Excl. fees)

Slide 19: Balance Sheet (March 31, 2025)

Slide 20: II. Business Forecasts for FY3/26

Slide 21: External Environment Surrounding Our Group

Slide 22: Full-Year Business Forecasts (Consolidated)

Slide 23: Full-Year Business Forecasts (Changes)

Slide 24: Forecasts: Applied and Processed Asphalt Products Business

Slide 25: Forecasts: Asphalt Products (Excl. management service fees)

Slide 26: Forecasts: Road Paving Business

Slide 27: Forecasts: Road Paving (Excl. management service fees)

Slide 28: Revision of Numerical Targets in the Medium-Term Management Plan

Slide 29: III. Future Outlook

Slide 30: Growth Strategy of NICHIREKI Group

Slide 31: Earthquake-resistant Pavement

Slide 32: Support for the Noto Peninsula Earthquake Disaster

Slide 33: Expressway Repair by High-Modulus Asphalt Mixture (HiMA)

Slide 34: MLIT Initiatives for Upgrading Roadbed Quality

Slide 35: MLIT Policies Toward Low-Carbon in the Road Sector

Slide 36: MLIT Policies Toward Low-Carbon in the Road Sector

Slide 37: National Resilience

Slide 38: Participation in the India High-Speed Rail Project

Slide 39: Overview of the Joint Venture in India

Slide 40: About the Tsukuba Big Ship Project

Slide 41: Investment Effects of the Tsukuba Big Ship Project (1)

Slide 42: Investment Effects of the Tsukuba Big Ship Project (2)

Slide 43: Received the 26th National Land Development Technology Award

Slide 44: Received the Infrastructure Maintenance Award: Minister of Defense Award

Slide 45: Received the Pavement Engineering Paper Award

Slide 46: Establishment of a Joint Research Program at Tohoku University

Slide 47: Launch of Demonstration Project in Ushiku City

Slide 48: Romen Catcher Super MWD

Slide 49: Smart Stabilizer Monitoring System

Slide 50: Response to Construction and Logistics 2024 Problems

Slide 51: Nichireki Group's Response to Climate Change

Slide 52: IV. Capital Policy

Slide 53: Status of Treasury Stock Repurchase

Slide 54: Dividend Forecast and Changes

Slide 55: Shareholder Returns: Illustration of Total Payout Trend

Slide 56: Cash Allocation (FY2022–FY2025)

Slide 57: Action to Implement Management Conscious of Cost of Capital and Stock Price

Slide 58: Analysis of Current Conditions (Trends in Profit, ROE and PER)

Slide 59: Analysis of Current Situation (Stock Price and PBR Trends)

Slide 60: Initiatives to Enhance Corporate Value (Summary)

Slide 61: Initiatives to Enhance Corporate Value (I) [Improve ROE]

Slide 62: Initiatives to Enhance Corporate Value (II) [Improve PER]

Slide 63: Status of Dialogue with Shareholders and Investors

Slide 64: V. Topics

Slide 65: Topics (1) [FY2024 H1]

Slide 66: Topics (2) [FY2024 H2-FY2025]

Slide 67: Newspaper Advertisement

Slide 68: Awarded Work

Slide 69: Exhibition at Highway Techno Fair 2024

Slide 70: Exhibition at Social Infrastructure Tech 2024

Slide 71: (Reference Materials) Corporate Profile

Slide 72: Corporate Profile

Slide 73: History of Our Group

Slide 74: Business Overview

Slide 75: Business Domain

Slide 76: Consistent Pavement Solutions

Slide 77: R&D Capability

Slide 78: Expanding Network throughout Japan

Slide 79: NICHIREKI Group: Source of Competitive Advantage