Slide 1: FY2025 Financial Results
Tokyo Stock Exchange (Prime Market) Securities Code : 7438 FY2025 Financial Results May 14, 2025
Slide 2: Notes on forward-looking statements
Notes on forward-looking statements This document contains forward-looking statements and business plans. These statements were made based on economic environment and business policies at the time of the release. Actual results may differ materially from these forward-looking statements due to vario
Slide 3: Contents
Contents 1. Highlights of FY2025 Financial Results P. 4 2. Company Overview P. 7 3. Main Products and Merchandise P. 18 4. FY2025 Financial Results and Analysis P. 24 5. FY2025 Financial Results and Analysis by Segment P. 30 6. FY2026 Financial Forecast P. 40 7. Sustainability P. 43 8. Growth Strate
Slide 4: 1. Highlights of FY2025 Financial Results
1. Highlights of FY2025 Financial Results
Slide 5: Summary of FY2025 Consolidated Financial Results
Summary of FY2025 Consolidated Financial Results Net sales increased due to capturing demand for large-scale properties. Operating income and ordinary income decreased due to higher personnel expenses and freight costs as well as an increase in SG&A expenses associated with the acquisition of UE
Slide 6: Topics in FY2025
Topics in FY2025 Opening of Hokkaido Office and completion Acquisition of UEDA CONSTRUCTION CO., LTD. of Sapporo Factory No. 3 In April 2024, we have opened the Hokkaido Office to In October 2024,Nippon Scaffolding Holdings Co., Ltd., has further expand our business in the Hokkaido region. acqui
Slide 7: 2. Company Overview
2. Company Overview
Slide 8: Performance Trends
Performance Trends Since establishment in 1953, we have not incurred an ordinary loss as a result of efforts to supply products and merchandise to various industries in response to changes of the times and customer needs. Acquired shares of UEDA （trillion yen） 80,000 Established Nippon Scaffolding H
Slide 9: Company Overview
Company Overview Company name KONDOTEC INC. Sanwa Denzai Co., Ltd. KONDOTEC INTERNATIONAL (THAILAND) CO., LTD. CHUOH GIKEN Co., Ltd. Nippon Scaffolding Holdings Co., Ltd. TECBUILD CO., LTD. Group companies TOKAI STEP CO., LTD. FUKOKU, Ltd. KURIYAMA ALUMINUM Co., Ltd. UEDA CONSTRUCTION CO., LTD. (as
Slide 10: Company History and Business Areas
Company History and Business Areas Company history Business areas January 1953 Established Kondo Shoten Co., Ltd. January 1989 Changed the company name to KONDOTEC INC. Construction industry wholesale Listed on the Second Section of the Osaka Other than April 1995 Stock Exchange Field Categorization
Slide 11: Sales by Segment (FY2025)
Sales by Segment (FY2025) Industrial Materials Structural Steel Materials Net sales Sales weighting Net sales Sales weighting 37,328 million yen 47 % 21,131 million yen 27 % Customers Hardware stores, Wholesalers, Home improvement centers Customers Steel structure fabricators Products/ Products/ Mer
Slide 12: Distribution Channels
Distribution Channels By offering in-house products with added value and sourcing products and merchandise from various suppliers, we have adopted a structure that allows it to meet the diversifying needs of customers. Manufacturer function (in-house production and OEM production) ◆ Suppliers Appr
Slide 13: Segment Overview: Industrial Materials
Segment Overview : Industrial Materials Business The Industrial Materials Segment manufactures, procures, and sells civil engineering and areas construction materials (primarily metal fittings through retail). By selling products and merchandise to a wide range of industries, the segment has built u
Slide 14: Segment Overview: Structural Steel Materials
Segment Overview : Structural Steel Materials Business The Structural Steel Materials Segment manufactures, procures, and sells construction-related areas materials to nationwide steel structure fabricators. High-margin business maintained through supply of high market share products with a high Str
Slide 15: Segment Overview: Electrical Equipment
Segment Overview : Electrical Equipment Business The Electrical Equipment Segment procures and sells electrical equipment to consumer electrical areas appliance stores and electrical construction contractors. The segment generates steady earnings through providing a wide range of merchandise from St
Slide 16: Segment Overview: Scaffolding Construction
Segment Overview : Scaffolding Construction Business The Scaffolding Construction Segment provides scaffolding construction services and procures, areas sells and rents out temporary scaffolding materials to building contractors and medium-sized general contractors Strengths The segment provides a w
Slide 17: Market Size for Main Products and Merchandise
Market Size for Main Products and Merchandise Market size for main products, merchandise and corresponding market shares (FY2024) Market overview and initiatives Estimated volume of steel frame demand Market overview JIS certification (1000 tons) The demand is gradually Turnbuckle braces 5,000 r
Slide 18: 3. Main Products and Merchandise
3. Main Products and Merchandise
Slide 19: Sales Fields
Sales Fields We supply roughly 50,000 products and merchandise to various industries in response to changes of the times and customer needs. Railroads and railroad bridges Agriculture and forestry Slope Prefabricated protection work Agriculture and construction Wind power horticulture Wooden Constru
Slide 20: Turnbuckle Braces
Turnbuckle Braces Turnbuckle braces are connected cornerwise to prevent the collapse of buildings exposed to lateral pressure. Turnbuckle braces are used as seismic bracing products in prefabricated steel-frame houses and steel constructions such as shopping centers, factories and warehouses. Th
Slide 21: Anchor Bolts
Anchor Bolts Anchor bolts are important materials used to connect a building structure to a concrete foundation. Their main purpose is to prevent the building connected to the concrete foundation from tilting and falling over. After construction work Anchor bolts Anchor frame (Kon-base Eco) 20
Slide 22: Container Bags
Container Bags Container bags are used in a wide range of settings such as 1) transportation and storage of feedstuff, fertilizer, plastic pellets, and industrial waste; 2) rubble disposal and decontamination work; and 3) post-disaster reconstruction work (used as large sandbags). 21
Slide 23: Scaffolding Installation
Scaffolding Installation Our group provide scaffolding services for various projects – from houses to medium-rise buildings and civil- engineering works such as bridges. Overpass repair Condominium construction 22
Slide 24: 4. FY2025 Financial Results and Analysis
4. FY2025 Financial Results and Analysis
Slide 25: FY2025 Consolidated Financial Results
FY2025 Consolidated Financial Results Vs. FY2024 (million yen) YoY FY2024 FY2025 Amount % Net sales 76,873 79,175 +2,302 +3.0% Gross profit 17,035 17,517 +481 +2.8% SG&A expenses 12,362 13,051 +689 +5.6% Operating income 4,673 4,465 △207 △4.4% Ordinary income 4,872 4,679 △193 △4.0% Profit attributab
Slide 26: Operating Income Analysis (Consolidated)
Operating Income Analysis (Consolidated) Operating income analysis (million yen) Quarterly GPM Consolidated Parent 421 △38 △589 △1 Impact of acquisition of UEDA CONSTRUCTION 23.1% 4,673 22.9% 23.0% 4,465 22.7% 22.8% 22.8% 22.1% 22.9% 22.1% 22.6% 22.2% 22.0% 22.0%21.9% 21.8% FY2024 Net Sales Gross Pr
Slide 27: FY2025 Consolidated Financial Results vs. Forecast
FY2025 Consolidated Financial Results Vs. Forecast (million yen) Operating income analysis (million yen) FY2025 FY2025 Change Forecast Actual Amount % Net sales 81,500 79,175 △2,324 △2.9% △521 Gross profit 18,300 17,517 △782 △4.3% 498 △260 SG&A 13,550 13,051 △498 △3.7% 4,750 expenses 4,465 Operating
Slide 28: Consolidated Balance Sheet [Assets]
Consolidated Balance Sheet [Assets] (million yen) FY2024 FY2025 Change Cash and deposits 11,836 15,476 +3,639 Notes and receivable-trade, 13,642 11,578 △2,064 and contract assets Current assets Electronically recorded 4,993 4,828 △164 monetary claims operating Inventories 7,758 8,227 +469 Other 534
Slide 29: Consolidated Balance Sheet [Liabilities and Net Assets]
Consolidated Balance Sheet [Liabilities and Net Assets] (million yen) FY2024 FY2025 Change Notes and accounts payable-trade 4,769 4,685 △83 Electronically recorded obligations-operations 9,618 9,648 +30 Current liabilities Breakdown Electronically recorded obligations–operations 11,053 10,933 △120 R
Slide 30: 5. FY2025 Financial Results and Analysis by Segment
5. FY2025 Financial Results and Analysis by Segment
Slide 31: FY2025 Financial Results by Segment
FY2025 Financial Results by Segment (million yen) Change Full-year FY2024 FY2025 Progress (%) forecast Net sales 37,188 37,328 +0.4% 39,578 △5.7% Industrial Materials Segment 2,681 2,454 △8.5% 2,939 △16.5% profit or loss EBITDA 2,960 2,819 △4.8% － － Net sales 20,867 21,131 +1.3% 22,347 △5.4% Structu
Slide 32: Industrial Materials
Industrial Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 9,732 9,822 YoY 9,256 9,234 9,235 9,105 9,165 37,188 37,328 8,965 +0.4% 2,681 781 2,454 YoY 672 651 656 576 590 611 595 △8.5% FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2024 FY2024
Slide 33: Industrial Materials: Profit Analysis
Industrial Materials Segment profit or loss analysis (million yen) Quarterly GPM 18 30.1% 29.0% manufactured 27.0% 27.7% 26.7% 26.0% 57 24.0% in-house Products △147 △45 17.2% △110 29.6% 28.4% 28.6% 28.3% 28.7% 28.8% 2,681 merchandise 27.5% 27.7% Imported 2,454 20.6% 20.4% merchandise Domestically 20
Slide 34: Structural Steel Materials
Structural Steel Materials Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 5,760 5,453 5,517 5,432 20,867 21,131 YoY 5,280 5,019 4,876 +1.3% 4,658 YoY 450 427 1,526 380 409 414 1,394 342 △8.7% 285 209 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2024
Slide 35: Structural Steel Materials: Profit Analysis
Structural Steel Materials Segment profit or loss analysis (million yen) Quarterly GPM 27.7% 26.3% 26.8% 27.8% 27.8% 27.7% 24.4% 20 23.0% manufactured in-house Products △240 399 △312 35.7% 34.8% 34.9% merchandise 34.6% Imported 34.3% 1,526 33.6% 33.7% 33.7% 1,394 19.2% merchandise Domestically 18.3%
Slide 36: Electrical Equipment
Electrical Equipment Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss YoY 2,845 2,864 2,919 11,335 2,716 2,706 +12.1% 2,512 10,107 2,401 2,478 413 130 YoY 104 108 111 322 86 +28.4% 78 53 62 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2024 FY2024 FY202
Slide 37: Electrical Equipment: Profit Analysis
Electrical Equipment Segment profit or loss analysis (million yen) Quarterly GPM and the number of projects 17.3% 16.8% Gross Profit Margin △1 16.6% 16.7% 16.6% 16.7% △103 16.2% 16.1% 195 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2024 FY2024 FY2024 FY2024 FY2025 FY2025 FY2025 FY2025 413 322 28 28 The number of proj
Slide 38: Scaffolding Construction
Scaffolding Construction Net sales and segment profit or loss (million yen) YoY Quarterly Net sales Segment profit or loss 2,788 YoY 2,557 9,380 2,205 2,280 8,709 +7.7% 2,085 2,138 2,122 1,912 209 248 YoY 122 100 197 +25.7% 52 42 11 △20 △73 FY2024 FY2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2024 FY2024 FY2
Slide 39: Scaffolding Construction: Profit Analysis
Scaffolding Construction Segment profit or loss analysis (million yen) Sales fluctuations by service type (million yen) FY2024 FY2025 Construction sales 4,782 4,185 37 △59 2,675 2,689 73 △1 696 786 851 733 301 389 Impact of acquisition of UEDA CONSTRUCTION Detached Large properties Bridges/ Rental s
Slide 40: 6. FY2026 Financial Forecast
6. FY2026 Financial Forecast
Slide 41: FY2026 Consolidated Financial Forecast
FY2026 Consolidated Financial Forecast (million yen) FY2025 FY2026 Change Actual Forecast Amount % Net sales 79,175 85,000 +5,824 +7.4% Gross profit 17,517 19,400 +1,882 +10.7% SG&A expenses 13,051 14,800 +1,748 +13.4% Operating income 4,465 4,600 +134 +3.0% Ordinary income 4,679 4,800 +120 +2.6% Pr
Slide 42: FY2026 Financial Forecast by Segment
FY2026 Financial Forecast by Segment (million yen) FY2025 FY2026 Change Actual Forecast Amount % Industrial 37,328 40,200 +2,871 +7.7% Materials Net sales Segment profit or loss 2,454 2,629 +175 +7.1% Structural 21,131 23,270 +2,138 +10.1% Materials Net sales Steel Segment profit or loss 1,394 1,406
Slide 43: 7. Sustainability
7. Sustainability
Slide 44: Materiality
Materiality In engaging in corporate activities, we recognize that management that takes social sustainability into consideration leads to the sustainable growth. We have identified our materiality and link it to sustainable corporate growth by incorporating it in the management strategy. Materi
Slide 45: Business Activities Paying Attention to the Environment
Initiatives Business Activities Paying Attention to the Environment Provision of optimal products and merchandise for Initiatives for reducing environmental burdens environment measures Oil hunter Acquisition of ISO14001 This is an eco-mark certified oil absorption mat using We obtained ISO14001
Slide 46: Initiatives for Maintaining Rapid-Delivery System
Initiatives Initiatives for Maintaining Rapid-Delivery System The 2024 problem in the logistics industry Response to the 2024 problem in the logistics industry Logistics function is as an important element to maintain our In response to the 2024 problem in the logistics industry, rapid-delivery
Slide 47: Human Resource Development and Diversity
Initiatives Human Resource Development and Diversity We aim to create a working environment in which employees with diverse backgrounds fully demonstrate their respective abilities and are motivated to work. Diversity indicators and targets Support for athletes Based on our recognition of the ne
Slide 48: Shareholding: Initiatives for Enhancing Employees' Motivation
Initiatives Initiatives for Enhancing Employees’ Motivation We have introduced an employee restricted stock program. By issuing shares as an incentive to employees, we encourage employees to boost their motivation and morale toward enhancing performance. We target DOE of at least 4.0% and looks
Slide 49: Strengthening of Corporate Governance
Initiatives Strengthening of Corporate Governance KONDOTEC recognizes that strengthening and enhancing corporate governance through increasing soundness, transparency and efficiency of management and maximizing corporate value is one of the most important management objectives. KONDOTEC has introd
Slide 50: 8. Growth Strategies
8. Growth Strategies
Slide 51: Towards Achieving Billion Yen Sales Target
Towards Achieving 100 Billion Yen Sales Target We target consolidated sales of 100 billion yen in the 2020s by strengthening the earnings capability of existing core businesses and expanding into fields with growth prospects. M&A strategies 100 billion yen Accelerate growth with current KONDOTEC (
Slide 52: Cultivation of New Customers
Organic Growth Cultivation of New Customers We achieve a monthly average of one new customer per sales representative. In addition, we exploit a yearly average of 10 dormant customers per sales representative. These activities from the source for 20,000 sales customers. We are working to expand
Slide 53: Offer of New Products and Diversifying Sales Methods
Organic Growth Offer of New Products and Merchandise/Diversifying Sales Methods and Services Offer of new products and merchandise Diversifying sales methods and services For the purpose of developing new merchandise, joint New Launch of website, “Tsurikata” for lifting Products and Merchandise
Slide 54: Expansion of Operating Sites
Organic Growth Expansion of Operating Sites We strive for expansion of operating sites which maintained a local-community-oriented sales structures in order to respond quickly to customer needs. Recently, we have opened the Hokuriku Office and established Environment & Energy Group in April 2025.
Slide 55: Response to Natural Disasters
Organic Growth ③ Response to Natural Disasters Response to “New stage” published by Response to natural disasters Ministry of Land, Infrastructure, Transport and Tourism We have established a structure that allows it to rapidly The Ministry of Land, Infrastructure, Transport and Tourism has resp
Slide 56: Increasing Presence in Foreign Markets
Periphery-Strengthening Growth Increasing Presence in Foreign Markets Based on our view that increasing presence in foreign markets where growth is expected will contribute to enhancing our earning capability, we established a subsidiary in Thailand in November 2012. We executed a capital increase
Slide 57: M&A Strategy
Toward Accelerating Organic Growth Strategies and Periphery-Strengthening Growth Strategies M&A Strategy (Corporate Acquisitions and Capital/Business Tie-Ups ) We view that pursuing corporate acquisitions and capital/business tie-ups is an important strategy to strengthen our business platform. Fo
Slide 58: Acquisition of UEDA CONSTRUCTION CO., LTD. in October 2024
M&A Strategy Latest Acquisition Acquisition of UEDA CONSTRUCTION CO., LTD. in October 2024 The KONDOTEC Group will strive for sustainable growth and mid- to long-term corporate value enhancement by expanding scaffolding installation business through collaboration with scaffolding group companies.
Slide 59: 9. Shareholder Return
9. Shareholder Return
Slide 60: Dividends and Shareholder Incentive Plan
Dividends and Shareholder Incentive Plan We target ROE of 10% or more and DOE of 4.0% or more with the aim of continuing to increase dividends. Transition in dividends Shareholder incentive plan Since initial listing: No decrease in dividends Shareholders can redeem reward points for over 4,000
Slide 61: Transition of Stock Price
Transition of Stock Price Transition of stock price Ranking among listed companies Stock price (after stock split) Nikkei average stock price Among 4,060 listed companies … KONDOTEC stock price (yen) Nikkei average stock price (yen) 1,800 42,000 1,459 1,500 35,000 ROE 1,549th 1,200 28,000 Profit 900
Slide 62: 10. Highlights of Results
10.Highlights of Results
Slide 63: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results Net sales (million yen) 79,175 million yen Operating income (million yen) 4,465 million yen 85,000 4,673 4,600 79,175 4,465 75,447 76,873 4,355 4,085 3,907 66,139 3,516 3,537 3,594 60,599 59,562 3,441 3,354 57,828 3,303 52,811 50,211 50,410 49,168 15/3 16
Slide 64: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 38,350 Net assets (million yen) million yen ROE (%) Target 10 % or more 38,350 35,920 33,285 32,066 11.4 10.8 10.9 10.7 10.7 28,387 29,022 10.4 26,756 10.0 10% or more 9.3 24,745 22,719 21,102 7.7 7.9 20,231 5.4 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/
Slide 65: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 (forecast) Result of Operations (million yen) Net sales 49,168 50,211 50,410 52,811 57,828 60,599 59,562 66,139 75,447 76,873 79,175 85,000 Operating income 3,303 3,441 3,516 3,537 3,907 4,085 3,
Slide 66: Quarterly Highlights
Quarterly Highlights Consolidated Net sales (million yen) 21,235 20,137 20,042 19,193 19,080 19,102 18,965 19,134 19,505 19,300 18,762 17,862 16,971 17,036 16,326 15,117 15,492 14,978 14,839 14,112 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/3 22/3 23/3 24/3 25/3 Operating income
Slide 67: Quarterly Highlights: Industrial Materials
Quarterly Highlights Industrial Materials Net sales (million yen) 9,961 10,075 9,822 9,536 9,655 9,732 9,025 9,237 9,288 9,256 9,234 9,235 9,105 9,165 8,758 8,692 8,965 8,591 7,826 8,104 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/3 22/3 23/3 24/3 25/3 Segment profit or loss (mill
Slide 68: Quarterly Highlights: Structural Steel Materials
Quarterly Highlights Structural Steel Materials Net sales (million yen) 5,760 5,396 5,453 5,517 5,432 5,244 5,280 5,019 4,876 4,847 4,658 4,328 4,475 4,299 3,954 3,658 3,616 3,516 3,467 3,293 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/3 22/3 23/3 24/3 25/3 Segment profit or loss
Slide 69: Quarterly Highlights: Electrical Equipment
Quarterly Highlights Electrical Equipment Net sales (million yen) 2,845 2,864 2,919 2,716 2,706 2,467 2,441 2,478 2,512 2,323 2,370 2,401 2,155 2,237 2,226 2,223 2,126 1,886 1,963 1,933 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/3 22/3 23/3 24/3 25/3 Segment profit or loss (milli
Slide 70: Quarterly Highlights: Scaffolding Construction
Quarterly Highlights Scaffolding Construction Net sales (million yen) 2,788 2,504 2,557 2,280 2,198 2,205 2,138 2,070 2,085 2,122 2,001 1,923 1,912 1,795 1,746 1,702 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21/3 22/3 23/3 24/3 25/3 Segment profit or loss (million yen) 209 122 107
Slide 71: Official SNS accounts and contact
Official SNS accounts KONDTEC opened official Instagram and Facebook accounts. Please follow us to get to know us better and for information and updates on our products and merchandise. Instagram 2-2-90 Sakaigawa, Nishi-ku, Osaka URL：https://www.instagram.com/kondotec_official/ 550-0024 Japan Teleph