Financial Results Briefing for the Third Quarter of the Fiscal Year Ended March 2026（February 26, 2026）

Q3 Financial Results Briefing for the Fiscal Year Ending March 2026 February 26, 2026

(Total: 18 minutes, Presentation: 18 minutes)

Marika Asanuma Executive Officer, Corporate Strategy and Planning Headquarters, General Manager of Corporate Communications Division

Today, I will explain the details of the financial results for Q3 of FY2025.

This presentation video will be available on demand on our website. If you have any questions or comments, please contact our Corporate Communications Division.

Today, in accordance with the materials, I will present the results and progress for Q3 of FY2025, which were announced on February 10, 2026. I will also discuss the upward revision of the full-year performance and the associated revision of the dividend forecast. In addition, I will explain the progress of the medium-term, three-year business plan that we are currently facilitating, as part of our efforts in Q3 of FY2025.

I will start with our performance and shareholder returns.

Please refer to page four. The consolidated results for Q3 of FY2025.

To summarize, orders received, net sales, and profits at each stage all improved YoY for Q3, resulting in very favorable performance. The volume of construction work carried over to Q4 and beyond is also steadily accumulating, indicating good progress.

The table on the right with areas colored in green indicates FY2025. The first row for orders received was JPY169.791 billion during Q3, while the rightmost column shows the change in percentage YoY. Orders received increased by 26.4% YoY. This was due to the acquisition of large-scale projects in both construction and civil engineering within Japan.

The second line indicates net sales, which totaled JPY128.158 billion during Q3, a 11.2% increase in revenues YoY due in part to the steady progress of the numerous ongoing construction projects.

For profits, in addition to the increase in sales, improvements to the gross profit margin associated with selective orders received that emphasize profitability, also contributed significantly. Our Singaporean subsidiary, Evergreen Engineering & Construction, has also been performing well, which also contributed to our performance.

Although SG&A expenses also increased, we managed to offset this increase, resulting in operating profits of JPY7.179 billion, a 35% increase YoY.

Below that, current net profits attributable to shareholders of the parent company were JPY4.867 billion, a significant profit increase of 38.6% YoY.

Moving two rows below, the volume of carried over construction work was JPY244.03 billion, a 19.7% increase YoY. This represents a multiple of 16.8 times monthly sales, which accumulates well like other major general contractors. This is also attributed to selectively receiving orders, which are good projects that are being carried over.

As we consider these current favorable factors of progress, we have upwardly revised our full-year consolidated earnings forecast for FY2025, as shown on page five. The dark green areas in the table show the

revised full-year consolidated earnings forecast, while the rightmost area shows the comparison with the full-year consolidated earnings forecast at the beginning of the fiscal year in percentage.

The first row's orders received are set to jump to JPY197.5 billion, a 30.4% increase from the initial forecast.

The second row's net sales are revised up to JPY174.6 billion. Although this is a slight increase of 2.5% from the initial forecast, it has increased by 7.4% compared to the original forecast at the operating profit stage, partly due to achievements from selective orders received.

Ordinary profits are now projected to increase by 8.1% and net current profits by 4.8%, which are expected to exceed their respective forecasts at the beginning of the fiscal year.

Please refer to page six. As our policy for shareholders' return in our medium-term three-year business plan is to achieve a consolidated dividend payout ratio of at least 70%, we have revised our dividend forecast upward in line with our updated consolidated full-year earnings forecast.

The year-end dividend forecast has been increased by JPY2 per share from the beginning of the fiscal year. As the annual dividend for the current fiscal year is expected to be JPY43.50, this reflects an increase of JPY2.50 compared to the previous year's payout.

Page seven shows the nine-year trend for the dividend amount and the dividend payout ratio, which spans the three terms of the medium-term three-year business plan.

We expect to increase dividends for eight consecutive fiscal years, including the projected dividend amount for FY2025, the current fiscal year. The dividend plan for the FY2026, which is the upcoming fiscal year, reflects the plan in May 2024, when we disclosed the current medium-term three-year business plan.

Although we obviously do this every year, the dividend plan is carefully reviewed together with the FY2026 earnings plan after closing the account for FY2025. That is when we consider whether to make revisions or not.

Please refer to page eight. This indicates the stock price trends.

Similar to the previous page, the fluctuation rate for our stocks are shown, which starts from April 2018 when we began our medium-term three-year business plan for two terms ago. The price is currently exceeding TOPIX with a 192% increase.

Our P/B ratio is currently 1.9x, which resulted in market recognition to some extent. We will make efforts to further improve corporate value through enhanced capital efficiency and continuous growth.

The breakdown of orders received on a non-consolidated basis during Q3 of the current fiscal year is shown on page nine and thereafter for your reference.

Volume of orders received on a non-consolidated basis increased by 30.5% YoY, which is a significant increase. Particularly, we are strategically focusing on construction for the government sector, which has increased by 129.1% YoY.

Also, we have received orders for large-scale projects related to civil engineering for the private sector, with a hefty 353% increase YoY, or a 3.5-fold increase.

Page 10 indicates a breakdown of volume in orders received on a non-consolidated basis by application.

For construction on the left, although warehouses continue to account for a large share at 23%, we are also receiving a well-balance mix of orders across a wide variety of projects, including accommodations, housing, and offices.

For civil engineering on the right, we have received orders for large-scale projects relating to power lines and flood control facilities, or dam construction. These account for the highest shares, followed by land development and roads, with well-balanced shares and steady acquisitions.

We will continue to strategically work to receive orders while accumulating orders evenly by application.

I will now explain major initiatives for Q3 in accordance with the medium-term three-year business plan. As we currently focus on the three years of the medium-term three-year business plan, we have set six themes.

Today, I would like to introduce themes that have made progress in particular, which are: theme 2's strengthening the renovation business; theme 3's acquiring, retaining, and developing talent; theme 5's enhancing governance, compliance, and risk management; and theme 6's contributing to the environment and society.

First, we will strengthen our renewal business, which is one of the pillars of our growth strategy.

We are promoting the GOOD CYCLE PROJECT as an initiative to contribute to environmental friendliness and human health. We combine our proprietary technology for environmental friendliness and human health to provide unique proposals that offer high added value.

As part of this effort, we have developed 'Earth-Returning Bricks' that make effective use of onsite-generated soil, as well as '3D Layered Cray-Wood Wall' that combine soil and wood. We have also obtained patents for these two technologies.

The photos at the bottom of the slide show the actual implementation of these technologies, with the reception room of our Nagoya branch shown on the left, while a store at the commercial facility called Senkaku Banrai is shown on the right. By beautifying onsite-generated soil into components that decorate spaces, we propose renewal options to our customers that we can only achieve.

As these technologies also received recognition from external entities, we have won many awards.

Specifically, the 'Earth-Returning Bricks' won an award in Resource Circulation at the Tsuchi (Soil) Expo 2025 Osaka. For the '3D Layered Cray-Wood Wall', a building that utilized the technology won the Good Design award, while the technology itself was awarded by the Japan Interior Designers' Association. This demonstrates that the design aspect is also highly regarded.

As we leverage these strengths, we will further strengthen our renewal business brand that applies our added value and achieve growth as a pillar of revenues.

Please refer to page 15. Acquiring, retaining, and developing talent that we consider highly essential for sustainable growth.

To acquire, retain, and develop human resources, we are focusing on improving the working environment and strengthening our brand by communicating the attractiveness of construction and our initiatives.

From branding perspective, we were responsible for the construction and the relocation of the Netherlands Pavilion of Expo 2025 Osaka, Kansai, Japan. We still receive interviews by many media firms as a model of circular architecture, which is when we respond accordingly and send strong PR messages. Also, at the Hiroshima Architecture Exhibition 2025 where prominent architects attended, we sponsored architecture projects centered on the theme of circularity. That is how we engage in PR activities.

For the workplace environment, we have devised a new "Wellness Container" that designed to support the physical and mental health of employees working at construction sites, which we will implement sequentially. Rather than the conventional, utilitarian onsite office, Wellness Container incorporates materials and ambient natural sounds in an easily accessible manner, transforming the space into a warm and comfortable environment. This leads to improved productivity and reduced turnover rates.

We will continue to focus on measures that contribute to acquiring, retaining, and developing diverse human resources, such as by creating environments where diverse human resources can strive, reducing overtime, and encouraging them to take a leave.

Please refer to page 16. Strengthening governance, compliance, and risk management as the foundation of management.

For FY2025, we also published our integrated report 2025, which covers our strategies and ESG initiatives. In addition to the top management's message, we are communicating the direction we are heading to all stakeholders through articles that introduce circular architecture of the Netherlands Pavilion at the Expo 2025 Osaka, Kansai, Japan. We also plan to publish an English-language edition, starting with this issue, as we are aware of our global stakeholders.

We are also expanding dialogue with shareholders and investors in terms of both quality and quantity. In addition to individual presentations, we are actively promoting live streaming, radio broadcasts, and participating in events for individual investors. We will make efforts to gain an increase in understanding.

Page 17 indicates our initiatives for contributing to the environment and society.

In a major step forward, our group's greenhouse gas emission reduction targets were accredited with SBT certification, which is an international initiative. This means we have been publicly recognized as a company whose reduction targets are based on scientific evidence that complies with the Paris Agreement.

Our greenhouse gas emission results for FY2024 acquired third-party assurance. We will continue to promote decarbonization throughout the supply chain by strengthening our ZEB and ZEH proposals, as well as by promoting environmentally conscious designs and other activities.

Page 18 summarizes the non-financial KPIs in the medium-term three-year business plan for your reference. We will continue to promote measures and work diligently to achieve our KPIs.

Thank you for watching the video.

We hope you will read about our other initiatives on our website, including our integrated report. Thank you.

[END]

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