Kondotec Inc. · TSE:7438
Kondotec — Q1 FY2027 Earnings Presentation
63 slides from Kondotec's earnings presentation, Aug 7, 2026
Slide 1: FY2027 Q1 Financial Results
Tokyo Stock Exchange (Prime Market) Securities Code : 7438 FY2027 Q1 Financial Results August 7, 2026
Slide 2: Contents
Contents 1. Highlights of Q1 FY2027 Financial Results P. 3 2. Company Overview P. 5 3. Main Products and Merchandise P. 16 4. Q1 FY2027 Financial Results and Analysis P. 22 5. Q1 FY2027 Financial Results and Analysis by Segment P. 28 6. Management Strategies P. 38 7. Shareholder Return P. 51 8. High
Slide 3: 1. Highlights of Q1 FY2027 Financial Results
1. Highlights of Q1 FY2027 Financial Results
Slide 4: Summary of Q1 FY2027 Consolidated Financial Results
Summary of Q1 FY2027 Consolidated Financial Results ⚫ Net sales increased due to the pass-through of higher manufacturing and procurement costs and demand for chemical products amid concern over the procurement of materials following the Middle East conflict as well as a sales contribution from maki
Slide 5: 2. Company Overview
2. Company Overview
Slide 6: 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. ( trillion yen ) 100,000 10,000 90 9,000 60 80,000 8,000 Ordinary profit (mill
Slide 7: 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. SUZU
Slide 8: Company History and Specialized Fields
Company History and Specialized Fields Company history Specialized fields (Comprehensive services based on synergy) January 1953 Established Kondo Shoten Co., Ltd. Under construction January 1989 Changed the company name to KONDOTEC INC. 1. Foundation works/steel frame construction Structural Steel
Slide 9: Sales by Segment
Sales by Segment Scaffolding Construction Industrial Materials Net sales 9,872 million yen Net sales 39,536 million yen Customers Customers building contractors, medium-sized general contractors Hardware stores, Wholesalers, Home improvement centers and more and more Business description Products/Me
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: Market Size for Main Products and Merchandise
Market Size for Main Products and Merchandise Market size for main products, merchandise and corresponding market shares (FY2025) Market overview and initiatives ◼ Estimated volume of steel frame demand ➢ Market overview JIS certification (1000 tons) The robust demand for large low- Turnbuckle brace
Slide 16: 3. Main Products and Merchandise
3. Main Products and Merchandise
Slide 17: 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 18: 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 19: 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 アンカーボルト Anchor bolts Anchor frame (Kon-base Eco
Slide 20: 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). 19
Slide 21: 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 20
Slide 22: 4. Q1 FY2027 Financial Results and Analysis
4. Q1 FY2027 Financial Results and Analysis
Slide 23: Q1 FY2027 Consolidated Financial Results
Q1 FY2027 Consolidated Financial Results (million yen) Q1 Q1 YoY FY2026 FY2027 Amount % Net sales 20,170 22,365 +2,194 +10.9% Gross profit 4,396 5,016 +620 +14.1% SG&A expenses 3,491 3,796 +305 +8.7% Operating profit 904 1,220 +315 +34.9% Ordinary profit 963 1,278 +314 +32.7% Profit attributable to
Slide 24: Operating Profit Analysis (Consolidated)
Operating Profit Analysis (Consolidated) Operating profit analysis (million yen) Quarterly GPM Consolidated Parent 154 △163 35 289 23.7% 23.8% 23.8% 23.3% Impact of acquisition of 23.0% several companies as 1,220 subsidiaries 904 22.6% 22.7% 22.3% 22.4% 21.8% Q1 FY2026 Net Sales Gross Profit SG&A Ot
Slide 25: Progress for FY2027 Forecast
Q1 FY2027 Consolidated Financial Results Progress for FY2027 Forecast Progress for FY2027 forecast (million yen) Net sales and operating Profit (million yen) Net sales ■ Q1 FY2027 ■ Full-year forecast Operating profit 22,365 Net sales Full-year 21,748 21,563 forecast Progress 20,170 20,465 22,365 91
Slide 26: Consolidated Balance Sheet [Assets]
Consolidated Balance Sheet [Assets] (million yen) FY2026 Q1 FY2027 Change Cash and deposits 15,654 12,432 △3,222 Notes and receivable-trade, 11,953 11,390 △563 and contract assets Current assets Electronically recorded 5,976 6,687 +711 monetary claims operating Inventories 8,728 9,020 +291 Other 681
Slide 27: Consolidated Balance Sheet [Liabilities and Net Assets]
Consolidated Balance Sheet [Liabilities and Net Assets] (million yen) FY2026 Q1 FY2027 Change Notes and accounts payable-trade 5,503 5,657 +153 Electronically recorded obligations-operations 7,863 4,828 △3,034 Current liabilities Breakdown Electronically recorded obligations–operations 8,697 5,071 △
Slide 28: 5. Q1 FY2027 Financial Results and Analysis by Segment
5. Q1 FY2027 Financial Results and Analysis by Segment
Slide 29: Q1 FY2027 Financial Results by Segment
Q1 FY2027 Financial Results by Segment (million yen) Change Full-year Q1 FY2026 Q1 FY2027 Progress (%) forecast Net sales 9,441 11,096 +17.5% 44,416 25.0% Industrial Materials Segment profit or loss 606 850 +40.3% 3,119 27.3% EBITDA 693 980 +41.4% － － Net sales 5,418 5,609 +3.5% 23,371 24.0% Structu
Slide 30: Industrial Materials
Industrial Materials Net sales and segment profit or loss (million yen) ◼ YoY ◼ Quarterly Net sales Segment profit or loss 11,096 11,096 YoY 9,441 10,198 10,461 +17.5% 9,441 9,434 850 YoY 850 606 749 729 +40.3% 606 640 Q1 FY2026 Q1 FY2027 Q1 Q2 Q3 Q4 Q1 FY2026 FY2026 FY2026 FY2026 FY2027 Factors aff
Slide 31: Industrial Materials: Segment Profit Analysis
Industrial Materials Segment profit or loss analysis (million yen) Quarterly GPM 33.8% 30.0% 29.8% 28.9% manufactured 26.8% 11 in-house Products 130 △90 205 △12 Major increase/decrease 30.7% 30.8% 30.4% merchandise factors 29.5% 29.3% 850 Imported Operating profit +16 million yen 606 Goodwill amorti
Slide 32: Structural Steel Materials
Structural Steel Materials Net sales and segment profit or loss (million yen) ◼ YoY ◼ Quarterly Net sales Segment profit or loss 5,609 5,548 5,597 YoY 5,418 5,418 5,609 5,040 +3.5% 306 298 YoY 394 306 333 △2.5% 298 220 Q1 FY2026 Q1 FY2027 Q1 Q2 Q3 Q4 Q1 FY2026 FY2026 FY2026 FY2026 FY2027 Factors aff
Slide 33: Structural Steel Materials: Segment Profit Analysis
Structural Steel Materials Segment profit or loss analysis (million yen) Quarterly GPM manufactured 26.9% 28.0% 26.4% 26.3% in-house Products 24.2% △3 △46 86 △44 36.5% 36.8% 35.7% merchandise 35.0% Imported 34.4% 306 298 19.1% merchandise Domestically 18.9% sourced 18.3% 18.3% Q1 FY2026 Sales Volume
Slide 34: Electrical Equipment
Electrical Equipment Net sales and segment profit or loss (million yen) ◼ YoY ◼ Quarterly Net sales Segment profit or loss 3,433 3,412 3,412 YoY 3,267 3,164 3,164 3,068 +7.8% 134 176 127 YoY 127 129 126 134 +5.7% Q1 FY2026 Q1 FY2027 Q1 Q2 Q3 Q4 Q1 FY2026 FY2026 FY2026 FY2026 FY2027 Factors affecting
Slide 35: Electrical Equipment: Segment Profit Analysis
Electrical Equipment Segment profit or loss analysis (million yen) Quarterly GPM and the number of projects 17.0% Gross Profit Margin △1 40 △31 16.2% 16.9% 16.2% 15.7% Q1 Q2 Q3 Q4 Q1 FY2026 FY2026 FY2026 FY2026 FY2027 127 134 38 The number of projects※ 25 22 21 Q1 FY2026 Net Sales Gross Profit SG&A
Slide 36: Scaffolding Construction
Scaffolding Construction Net sales and segment profit or loss (million yen) ◼ YoY ◼ Quarterly Net sales Segment profit or loss 2,684 2,627 YoY 2,414 2,145 2,246 2,145 2,246 +4.7% 124 123 6 △70 △70 △123 △123 Q1 Q2 Q3 Q4 Q1 Q1 FY2026 Q1 FY2027 FY2026 FY2026 FY2026 FY2026 FY2027 Factors affecting net s
Slide 37: Scaffolding Construction: Segment Profit Analysis
Scaffolding Construction Segment profit or loss analysis (million yen) Sales fluctuations by service type (million yen) Q1 FY2026 Q1 FY2027 Construction sales 1,043 1,051 679 681 △70 187 184 135 165 99 163 △ 123 Detached Large properties Bridges/ Rental sales Material sales houses/renovations civil
Slide 38: 6. Management Strategies
6. Management Strategies
Slide 39: 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 40: 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. 100 billion yen Medium-term management M&A strategies plan (FY2027–FY202
Slide 41: 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 42: Offer of New Products and Merchandise/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 43: 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 44: Response to Natural Disasters
Organic Growth 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 respon
Slide 45: 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 46: 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 47: Business Activities Paying Attention to the Environment
Business Activities Paying Attention to the Environment Provision of optimal products and merchandise for Initiatives for reducing environmental burdens environment measures ◼ Box wall ◼ Acquisition of ISO14001 This is a cost-effective flood prevention system that can We obtained ISO14001 certificat
Slide 48: Enhancement of human capital
Enhancement of human capital ⚫ We view that developing and securing diverse human resources as the core pillar of our management policy to pursue human capital management. Diversity indicators and targets Support for athletes ⚫ Based on our recognition of the need to ensure diversity, We have been s
Slide 49: 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 50: 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 51: 7. Shareholder Return
7. Shareholder Return
Slide 52: 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 53: Transition of Stock Price
Transition of Stock Price Transition of stock price (as of July 31, 2026) Ranking among listed companies Stock price (after stock split) Nikkei average stock price Among 3,999 listed companies … KONDOTEC stock price (yen) Nikkei average stock price (yen) 1,800 72,000 Highest stock price 1,743 yen (a
Slide 54: 8. Highlights of Results
8. Highlights of Results
Slide 55: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 22,365 1,220 Progress Progress Net sales Operating profit (million yen) million yen 24.6% (million yen) million yen 24.7% 4,950 91,000 4,673 4,644 83,949 4,465 4,355 79,175 4,085 75,447 76,873 3,907 3,516 3,537 3,594 66,139 3,354 60,599 59,562 57,828 52,8
Slide 56: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 40,726 Net assets (million yen) million yen ROE (%) Target 10 % or more 40,566 40,726 38,350 11.4 10% or 35,920 10.7 10.7 10.4 more 33,285 10.0 32,066 9.3 28,387 29,022 8.8 26,756 7.9 7.7 24,745 22,719 5.4 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3
Slide 57: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 27/3 Q1 27/3 (forecast) Result of Operations (million yen) Net sales 50,410 52,811 57,828 60,599 59,562 66,139 75,447 76,873 79,175 83,949 22,365 91,000 Operating profit 3,516 3,537 3,907 4,085 3,354 3,594
Slide 58: Quarterly Highlights
Quarterly Highlights Consolidated Net sales (million yen) 21,748 22,365 21,235 21,563 20,137 20,042 20,170 20,465 19,193 19,080 19,102 18,965 19,134 19,505 19,300 18,762 17,036 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 23/3 24/3 25/3 26/3 27/3 Operating profit (million yen) 1,408 1
Slide 59: Quarterly Highlights: Industrial Materials
Quarterly Highlights Industrial Materials Net sales (million yen) 11,096 10,198 10,461 10,075 9,822 9,655 9,732 9,441 9,434 9,288 9,256 8,965 9,234 9,235 9,105 9,165 8,591 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 23/3 24/3 25/3 26/3 27/3 Segment profit or loss (million yen) 850 78
Slide 60: Quarterly Highlights: Structural Steel Materials
Quarterly Highlights Structural Steel Materials Net sales (million yen) 5,760 5,597 5,609 5,396 5,453 5,517 5,432 5,418 5,548 5,244 5,280 5,019 4,876 5,040 4,847 4,658 4,475 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 23/3 24/3 25/3 26/3 27/3 Segment profit or loss (million yen) 507
Slide 61: Quarterly Highlights: Electrical Equipment
Quarterly Highlights Electrical Equipment Net sales (million yen) 3,433 3,412 3,164 3,267 3,068 2,845 2,864 2,919 2,716 2,706 2,467 2,441 2,478 2,512 2,370 2,401 2,223 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 23/3 24/3 25/3 26/3 27/3 Segment profit or loss (million yen) 176 130 12
Slide 62: Quarterly Highlights: Scaffolding Construction
Quarterly Highlights Scaffolding Construction Net sales (million yen) 2,788 2,684 2,627 2,504 2,557 2,414 2,205 2,280 2,246 2,198 2,138 2,122 2,145 2,085 1,923 1,912 1,746 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 23/3 24/3 25/3 26/3 27/3 Segment profit or loss (million yen) 209 12
Slide 63: 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 2-2-1 Sakaigawa, Nishi-ku, Osaka URL：https://www.instagram.com/kondotec_official/ 550-0024 Japan Telepho