Nichireki Group Co. Ltd. · TSE:5011

Nichireki — Q2 FY3/26 Earnings Presentation

76 slides from Nichireki's earnings presentation, Nov 28, 2025

Slide 1: Financial Results for the 2nd Quarter of FY3/26
Financial Results for the 2nd Quarter of FY3/26 November 28, 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 Q2 FY3/26 Financial Results II. Business Forecasts for FY3/26 III. Future Outlook IV. Capital Policy V. Topics (Appendix) Company Profile Copyright© NICHIREKI GROUP CO., LTD. All rights reserved. 4
Slide 6: Financial Highlights (Business Environment)
Financial Highlights (Business Environment) Business Environment Surrounding Our Group ◆ Against the backdrop of recovery and reconstruction from natural disasters, as well as the promotion of disaster prevention, mitigation, and national resilience, public investment has remained generally resilien
Slide 7: Financial Highlights (Consolidated Business Results/Q2)
Financial Highlights (Consolidated Business Results/Q2) (Million yen) FY3/25 FY3/26 YoY change (%) Q2 Q2 Net sales 32,012 32,211 0.6% ⇧ Gross profit 6,824 7,151 4.8% ⇧ SG&A expenses 5,495 5,926 7.8% ⇧ Operating profit 1,329 1,225 -7.8% ⇩ Ordinary profit 1,438 1,336 -7.1% ⇩ Profit attributable to own
Slide 8: Analysis on Changes in Profit (Q2)
8 Copyright© NICHIREKI GROUP CO., LTD. All rights reserved. (Million yen) Q2 FY3/26 1,030 Profit Increase in profit Decrease in profits: -522 attributable to non- - 5 controlling interests Increases in non- -85 Analysis on Changes in Profit (Q2) operating expenses -431 Increases in SG&A expenses Inc
Slide 9: 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. FY2021 avg. Approx. ¥75 thousand/ t Approx. ¥75 thousand/ t 100,000 FY2025 H1 avg. Approx. ¥55 thousand/ t Approx. ¥62 thousand/ t 80,000 60,000 FY2020 avg. Approx. ¥29
Slide 10: Financial Highlights (Business Activities by Segment)
Financial Highlights (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 red
Slide 11: Financial Highlights (by Segment/Q2)
Financial Highlights (by Segment/Q2) (Million yen) Applied and Processed Asphalt Products Road Paving Business Business FY3/25 FY3/26 FY3/25 FY3/26 YoY change YoY change Q2 Q2 Q2 Q2 Segment sales 12,156 11,706 -3.7% ⇩ 19,689 20,356 3.4% ⇧ Segment profit 2,055 1,559 -24.2% ⇩ 1,056 1,126 6.7% ⇧ Segmen
Slide 12: Ratio of Operating Results by Segment (Q2)
Ratio of Operating Results by Segment (Q2) Operating profit Net sales 0.5% 7.3% Applied and アスファルト processed アスファルト Applied and 応用加工 processed asphalt 応用加工 36.3% products 製品事業 asphalt business 製品事業 products Q2 FY3/26 Q2 FY3/26 business 32,211 million yen 道路舗装 Road 2,897 million yen 道路舗装 Road paving
Slide 13: Financial Highlights (Consolidated Business Results/Q2 Alone)
Financial Highlights (Consolidated Business Results/Q2 Alone) (Million yen) FY3/25 FY3/26 YoY change (%) Q2 Alone Q2 Alone Net sales 18,484 18,510 0.1% ⇧ Gross profit 4,035 4,509 11.8% ⇧ SG&A expenses 2,782 2,967 6.6% ⇧ Operating profit 1,252 1,542 23.1% ⇧ Ordinary profit 1,273 1,451 14.0% ⇧ Profit
Slide 14: Financial Highlights (by Segment/Q2 Alone)
Financial Highlights (by Segment/Q2 Alone) (Million yen) Applied and Processed Asphalt Products Road Paving Business Business FY3/25 FY3/26 FY3/25 FY3/26 YoY change YoY change Q2 Alone Q2 Alone Q2 Alone Q2 Alone Segment sales 6,680 6,446 -3.5% ⇩ 11,718 11,987 2.3% ⇧ Segment profit 1,214 1,176 -3.2%
Slide 15: Balance Sheet (September 30, 2025)
Balance Sheet (September 30, 2025) *: Figures in brackets indicate increase/decrease for end-FY3/25 (Million yen) Current liabilities Liabilities Current assets 14,166 (-1,993) 33,012 48,534 Non-current liabilities (-2,035) (-7,541) 18,846 (-41) Assets 108,852 (-3,515) Net assets Non-current assets
Slide 17: 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 18: 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 19: 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 20: Business Forecasts by Segment (Applied and Processed Asphalt Products Business)
Business Forecasts by Segment (Applied and Processed Asphalt Products Business) (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 15,000 4,000 25,796 27,175 25,937 25,8
Slide 21: Business Forecasts by Segment (Road Paving Business)
Business Forecasts by Segment (Road Paving Business) (Million yen) Net sales 60,000 (Million yen) Operating profit and operating margin (％) 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 49,602 5,212 4,996 5,200 4,630 4,360
Slide 23: Growth Strategy of NICHIREKI Group
Growth Strategy of NICHIREKI Group R&D Expand product lineup and increase added value Capabilitie s Existing product/construction method New product/construction method Existing market Deeper Penetration into Existing Markets Addressing New Needs with High Value-Added Further strengthening trust thr
Slide 24: Disaster Recovery from the Noto Peninsula Earthquake (STABI-CEMENT RC Construction Method)
Disaster Recovery from the Noto Peninsula Earthquake (STABI-CEMENT RC Construction Method) A video introducing the STABI- CEMENT RC Construction Method is available on the Company’s website Copyright© NICHIREKI GROUP CO., LTD. All rights reserved. 24
Slide 25: 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 26: NICHIREKI Group's Contribution to "National Resilience" Social Challenges
NICHIREKI Group’s Contribution to “National Resilience” Social Challenges Social Challenges Aging infrastructure, including roads and bridges Increasing severity and frequency of natural disasters Growing demand for infrastructure development and resilience enhancement June 2023: Enactment of the re
Slide 27: Regional Infrastructure Group Regeneration Strategy Management
Regional Infrastructure Group Regeneration Strategy Management (“Group Management”) Source: Ministry of Land, Infrastructure, Transport and Tourism Reference material on Group Management https://www.mlit.go.jp/report/press/content/001710579.pdf Copyright© NICHIREKI GROUP CO., LTD. All rights reserve
Slide 28: Demonstration Experiment for Road Surface Inspection in Hirakata City
Demonstration Experiment for Road Surface Inspection in Hirakata City ◆ A demonstration experiment for road surface inspection using “GLOCAL-EYEZ” was conducted in Hirakata City, Osaka Prefecture, through the Hirakata City Public–Private Partnership Platform. Objectives of the Initiative ・DX of road
Slide 29: Participation in the India High-Speed Rail Project
Participation in the India High-Speed Rail Project  In 2015, during the Japan–India Summit Meeting, both governments agreed to adopt the Japanese Shinkansen [Seven Routes Announced in 2009] system for India’s high-speed rail.  The first section selected is the Mumbai–Ahmedabad line (505 km).  To
Slide 30: Establishment of a Joint Research Program at Tohoku University Graduate School
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 31: Materials Supporting Pavement Management for Municipalities
Materials Supporting Pavement Management for Municipalities ◆ A paper summarizing the results of repair materials planned, prototyped, and pilot-applied through a joint research program with the Graduate School of Engineering, Tohoku University received an Award for Excellence at the 36th Japan Road
Slide 32: Awards at the 36th Japan Road Conference
Awards at the 36th Japan Road Conference ◆ At the 36th Japan Road Conference, held on November 6–7, 2025, the Nichireki Group received awards for three papers. Award for Excellence: “Surface Treatment Materials for the Maintenance of Residential Roads with Consideration for Cost Efficiency” Award fo
Slide 33: 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 34: 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 35: STABI-CEMENT RC Construction Method Using Next-Generation Fuel
STABI-CEMENT RC Construction Method Using Next-Generation Fuel ◆ Iwate NICHIREKI Co., Ltd., a Group company, implemented the STABI-CEMENT RC Construction Method using next-generation fuel, renewable diesel (RD fuel). ◆This initiative represents the first nationwide application of RD fuel in road con
Slide 37: Status of Treasury Stock Repurchase
Status of Treasury Stock Repurchase Details Progress Progress Item Ratio (Announced Feb. 27, 2025) (as of Oct. 31, 2025) Number of shares Upper limit 1,000,000 shares 1,000,000 shares Completed Total acquisition Upper limit 2,600,000,000 yen 2,598,467,247 yen cost (2.6 billion yen) (Approx. 2.6 bill
Slide 38: Shareholder Return (Dividend Forecast and Changes)
Shareholder Return (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 期末 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 GROUP C
Slide 39: Shareholder Returns (Trends in Total Payout Amount and Total Payout Ratio)
Shareholder Returns (Trends in Total Payout Amount and Total Payout Ratio) ◆ While continuing to make growth investments for the future, we aim to steadily increase the total payout ratio and enhance shareholder returns. ◆ The total payout ratio for the current fiscal year is expected to be approxim
Slide 40: Cash Allocation (FY2022–FY2025: Four-Year Period)
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 41: Action to Implement Management that is Conscious of Cost of Capital and Stock Price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price Current Assessment [Capital Profitability]  Since FY2020, we have achieved a step-up to a higher level of ROE and net income compared with prior periods.  Shareholder returns have been strengthened in recent years.
Slide 42: 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 43: Analysis of Current Situation (Stock Price and PBR Trends)
Analysis of Current Situation (Stock Price and PBR Trends) Changes in Market Evaluation NICHIREKI stock price vs. TOPIX (Yen) (Stock price/PBR) (倍) (From FY2023) 220 3,000 1.20 0.99 200 0.97 2,500 1.00 0.83 180 0.77 2,000 0.80 160 0.62 2,471 0.55 2,180 2,644 140 1,500 0.60 120 1,000 1,580 1,488 0.40
Slide 44: Initiatives to Enhance Corporate Value
Initiatives to Enhance Corporate Value ◆ 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 45: Initiatives to Enhance Corporate Value [Improve ROE]
Initiatives to Enhance Corporate Value [Improve ROE]  Improving ROE Issues Response Strengthening profitability Development and introduction of high-value-added products and construction methods Improving returns Appropriate cost pass-through Promotion of DX Efficiency improvement Optimizing logist
Slide 46: Initiatives to Enhance Corporate Value [Improve PER]
Initiatives to Enhance Corporate Value [Improve PER]  Improving PER (reducing capital-cost) Issues Response Minimize business risk Response to environmental and social issues and governance Thorough implementation (Developing products / methods that can reduce CO2 emissions, Transition to a holding
Slide 47: Status of Dialogue with Shareholders and Investors
Status of Dialogue with Shareholders and Investors Details of Engagement Financial results briefing for institutional investors and analysts IR seminars for individual investors, Participation in Nikkei–TSE IR Fair One-on-One meetings with shareholders and investors Key Topics and Areas of Sharehold
Slide 49: Topics
Topics May Received Awards the 46th 2025 Japan BtoB Advertising Sep Attended seminars for individual investors Gold Award in the Newspaper Advertising category Exhibited at Nikkei–TSE IR Fair 2025 Jul Advertisement in The Nikkei newspaper (1) (2) Issue of Integrated Report (Japanese version) Aug Adv
Slide 52: Nikkei Advertising Awards
Nikkei Advertising Awards A series of advertisements published in the morning edition of The Nikkei on July 28 and August 4, 2025 received the Grand Prize (Industrial Category) at the 74th Nikkei Advertising Awards. Copyright© NICHIREKI GROUP CO., LTD. All rights reserved. 52
Slide 54: 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 55: 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 56: 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 57: 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 GROUP CO., LTD. All rights reserved. 57
Slide 58: 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 GROUP CO., LTD. All rights reserved. 58
Slide 59: R&D Capability
R&D Capability ◆ More than 50 employees—approximately 10% of Nichireki’s workforce—are assigned to the R&D division. ◆ Equipping performance evaluation testing devices for pavement, and promoting the research and development of environmentally friendly products and methods in response to the era of
Slide 60: Expanding Network throughout Japan
Expanding Network throughout Japan ◆ Offices ◆ Group companies (Consolidated subsidiaries) 106 sites in Japan (44 out of 47 prefectures), 6 sites overseas 39 companies including NICHIREKI CO., LTD. HOKKAIDO NICHIREKI CONSTRUCTION CO., LTD. TOHOKU NICHIREKI CONSTRUCTION CO., LTD. NICHIREKI ROAD CO.,
Slide 61: NICHIREKI Group: Source of Competitive Advantage
NICHIREKI Group: Source of Competitive Advantage Consistent pavement solutions R&D capabilities We provide end-to-end pavement solutions, covering the R&D capabilities that leverage creativity and entire value chain—from inspection and diagnosis, uniqueness to create new products and methods in desi
Slide 62: 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 63: 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 64: 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 65: 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 66: 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 67: Image of CO2 Reduction through NICHIREKI's 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 68: 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 69: 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 70: 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 71: STABI-CEMENT RC Construction Method
STABI-CEMENT RC Construction Method Reduce CO2 emissions by approx. 20% 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%. 詳しくはこちらから (NICHIREKIHP内⼯法紹介ページ ) Cont
Slide 72: 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 73: 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 74: 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 75: 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 76: 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 — Q2 FY3/26 Earnings Presentation on 6ix

Nichireki — Q2 FY3/26 Earnings Presentation

Slide 1: Financial Results for the 2nd Quarter of FY3/26

Slide 2: "Sow the Seeds"

Slide 3: Corporate philosophy

Slide 4: Table of Contents

Slide 5: I. Overview of Q2 FY3/26 Financial Results

Slide 6: Financial Highlights (Business Environment)

Slide 7: Financial Highlights (Consolidated Business Results/Q2)

Slide 8: Analysis on Changes in Profit (Q2)

Slide 9: Reference: Dubai Crude Oil Prices (Yen/t)

Slide 10: Financial Highlights (Business Activities by Segment)

Slide 11: Financial Highlights (by Segment/Q2)

Slide 12: Ratio of Operating Results by Segment (Q2)

Slide 13: Financial Highlights (Consolidated Business Results/Q2 Alone)

Slide 14: Financial Highlights (by Segment/Q2 Alone)

Slide 15: Balance Sheet (September 30, 2025)

Slide 16: II. Business Forecasts for FY3/26

Slide 17: External Environment Surrounding Our Group

Slide 18: Full-Year Business Forecasts (Consolidated)

Slide 19: Full-Year Business Forecasts (Changes)

Slide 20: Business Forecasts by Segment (Applied and Processed Asphalt Products Business)

Slide 21: Business Forecasts by Segment (Road Paving Business)

Slide 22: III. Future Outlook

Slide 23: Growth Strategy of NICHIREKI Group

Slide 24: Disaster Recovery from the Noto Peninsula Earthquake (STABI-CEMENT RC Construction Method)

Slide 25: Smart Stabilizer Monitoring System

Slide 26: NICHIREKI Group's Contribution to "National Resilience" Social Challenges

Slide 27: Regional Infrastructure Group Regeneration Strategy Management

Slide 28: Demonstration Experiment for Road Surface Inspection in Hirakata City

Slide 29: Participation in the India High-Speed Rail Project

Slide 30: Establishment of a Joint Research Program at Tohoku University Graduate School

Slide 31: Materials Supporting Pavement Management for Municipalities

Slide 32: Awards at the 36th Japan Road Conference

Slide 33: Nichireki Group's Response to Climate Change

Slide 34: About the Tsukuba Big Ship Project

Slide 35: STABI-CEMENT RC Construction Method Using Next-Generation Fuel

Slide 36: IV. Capital Policy

Slide 37: Status of Treasury Stock Repurchase

Slide 38: Shareholder Return (Dividend Forecast and Changes)

Slide 39: Shareholder Returns (Trends in Total Payout Amount and Total Payout Ratio)

Slide 40: Cash Allocation (FY2022–FY2025: Four-Year Period)

Slide 41: Action to Implement Management that is Conscious of Cost of Capital and Stock Price

Slide 42: Analysis of Current Conditions (Trends in Profit, ROE and PER)

Slide 43: Analysis of Current Situation (Stock Price and PBR Trends)

Slide 44: Initiatives to Enhance Corporate Value

Slide 45: Initiatives to Enhance Corporate Value [Improve ROE]

Slide 46: Initiatives to Enhance Corporate Value [Improve PER]

Slide 47: Status of Dialogue with Shareholders and Investors

Slide 48: V. Topics

Slide 49: Topics

Slide 50: Nikkei–TSE IR Fair 2025

Slide 51: Highway Techno Fair 2025

Slide 52: Nikkei Advertising Awards

Slide 53: (Reference Materials) Corporate Profile

Slide 54: Corporate Profile

Slide 55: History of Our Group

Slide 56: Business Overview

Slide 57: Business Domain

Slide 58: Consistent Pavement Solutions

Slide 59: R&D Capability

Slide 60: Expanding Network throughout Japan

Slide 61: NICHIREKI Group: Source of Competitive Advantage

Slide 62: What is Asphalt?

Slide 63: What is Asphalt Pavement?

Slide 64: What is Asphalt Emulsion?

Slide 65: What is Modified Asphalt?

Slide 66: NICHIREKI's "Tastainability"

Slide 67: Image of CO2 Reduction through NICHIREKI's Products and Construction Methods

Slide 68: SUPER CONTAINERPHALT

Slide 69: SUPER SHINAYAKAPHALT

Slide 70: SUPER CONTAINERPHALT SUPER SHINAYAKAPHALT

Slide 71: STABI-CEMENT RC Construction Method

Slide 72: SUPER SHINAYAKAPHALT STABI-CEMENT RC Construction Method

Slide 73: High-durability Waterproof Methods for Bridge Decks

Slide 74: ASWOOD Paving

Slide 75: Consideration for Roadside Conditions

Slide 76: Precautions / Contact Information