Yahagi Construction : Material on the Consolidated Financial Results for the Six Months Ended September 30, 2023

Material on the Consolidated Financial Results for the Six Months Ended September 30, 2023

YAHAGI CONSTRUCTION CO., LTD. Code no.: 1870 ( Listed on Prime Section of Tokyo

Stock Exchange and Premiere Section of Nagoya Stock Exchange )

©2023 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Contents

I

II

Company overview

P. 3

Financial Results for the Six Months P. 18 Ended September 30, 2023

III	Financial Forecasts for the FYE	P. 30
March 31, 2024

IV

Medium-Term Management Plan

P. 35

V

FACT SHEET

P. 51

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2

I

Company overview

©2023 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

Company overview

Company name	YAHAGI CONSTRUCTION CO., LTD.
Headquarters	3-19-7, Aoi, Higashi-ku,Nagoya-shi, Aichi, Japan
Representative	Mitsuhiro Takayanagi, President and Representative Director
Founded	May 14, 1949
Capital	¥6,808 million
Markets listed on	Prime Section of Tokyo Stock Exchange and Premiere Section of Nagoya Stock Exchange
Business description	General construction business [building construction, civil engineering, and real estate businesses]
Number of employees	1,288 (consolidated)
Offices	Tokyo, Osaka, Tohoku (Sendai), Hiroshima, Kyushu (Fukuoka)
	YAHAGI REAL ESTATE Co., Ltd.	YAHAGI BUILDING AND LIFE CO., LTD.	YAHAGI GREEN Co., Ltd.
	YAHAGI ROAD CO., LTD.		Nanshin Takamori Development Co., Ltd.
Group companies	Techno Support Co., Ltd.
	HOKUWA CONSTRUCTION, INC.
	1.	Nagoya Railroad Co., Ltd.		19.1%
	2.	The Master Trust Bank of Japan, Ltd. (Trust account)	7.6%
Major shareholders	3.	Yahagi Construction Business Partner Shareholding Association	6.5%
	4.	Resona Bank, Limited.		4.7%
	5.	MUFG Bank, Ltd.		4.7%

(As of March 31, 2023)

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4

Origin of the company name

In 1949, the Company was established in Koromo-cho,Nishikamo-gun, Aichi (present

Takyocho, Toyota-shi).

The company name embodies the founder Katsuo Yamada's philosophy.

YAHAGI CONSTRUCTION

He expressed his desire

to make a leap from the	Construction
company aiming at
Yahagi River, which flows
through his hometown to	modern construction
the Pacific Ocean, to all	through
over Japan	mechanization.

©2023 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

5

YAHAGI CONSTRUCTION: Who we are

Three keywords representing the characteristics of YAHAGI CONSTRUCTION

Design and construction

Design and

construction

Real estate

With our design division being one of the largest in the Tokai area, we have established an integrated system that covers steps from design to construction to propose solutions to customer problems from the planning/design stage.

Real estate business

In addition to the construction business, we also engage in the real estate business such as the development of land for industrial use in cooperation

business

Tokai area

with administrative authorities and local communities and the sale of condominiums under our own brand.

Tokai area

Since the establishment in 1949 in the present-day city of Toyota, we have been operating mainly in the Tokai area and have become a representative general construction company in the Tokai area.

An engineering-oriented,mid-sized general contractor based in the Tokai area with strengths

in design and construction as well as the real estate business

©2023 All rights reserved., YAHAGI CONSTRUCTION CO., LTD.

6

Listed on the Second Section of Market at the Nagoya Stock Exchange.

History

Industrialization of construction

Foundation to 1970

• Aggressively introduced large-sized heavy machinery such as motor scrapers to work vigorously toward mechanization and industrialization.

Diversification and expansion of

management

1971 to 1990

• Promoted diversification of businesses, including expansion into condominiums for sale and greenery businesses.

Selection and concentration of management	Re-growth and further
resources	leaps

1991 to 2012	2013 and onward
• In response to the bursting of the economic bubble, worked on the	• Working on business expansion in the economic
selection and concentration of management resources, such as	zone which will be established through the opening of
moving away from a business structure dependent on public works	the maglev train line (maglev economic zone) by
stepping up efforts for large-scale projects and
and focusing on aseismic reinforcement projects centered on the
strengthening real estate development.
PITA Column method.

1949

1950

1960

1967

1971

1972

1982

1989

1991

1993

1995

1996

2000

2001

2006

2014

2023

Received the first order from

Established

Promoted to the First Section of Market at the

Listed on the First

Established YAHAGI

Section of the Tokyo

Made HOKUWA

Nagoya Railroad for construction
work inside the rail tracks.	YAHAGI GREEN

Nagoya Stock Exchange.

Stock Exchange.

ROAD CO., LTD.

CONSTRUCTION, INC. a subsidiary.

Co., Ltd.

Expanded into the condominiums for sale business.

The Company was established in
Koromo-cho,Nishikamo-gun, Aichi
(present Takyocho, Toyota-shi).	Pavilion Series
	Merged with Meitetsu Construction Co., Ltd.

Launched the VENT VERT Series of YAHAGI REAL ESTATE.

First VENT VERT

Established Techno Support

Co., Ltd.

Developed PITA Column method.

Established Railway Technology Training Center.

Developed the PAN WALL method.	Established Institute of Earthquake Engineering &
Technology (currently Engineering Center).

Introduced two motor scrapers.

Established YAHAGI REAL ESTATE Co., Ltd. and International Development

Building Co., Ltd. (currently YAHAGI BUILDING AND LIFE CO., LTD.)

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7

Trends in financial results

Industrialization of construction	Diversification and expansion of	Selection and concentration of	Re-growth and further leaps
management	management resources
Foundation to 1970	1971 to 1990	1991 to 2012	2013 and onward

• Aggressively introduced large-sized heavy machinery such as motor scrapers to work vigorously toward mechanization and industrialization.

• Promoted diversification of businesses, including expansion into condominiums for sale and greenery businesses.

• In response to the bursting of the economic bubble, worked on the selection and concentration of management resources, such as moving away from a business structure dependent on public works and focusing on aseismic reinforcement projects centered on the PITA Column method.

• Working on business expansion in the maglev economic zone by stepping up efforts for large-scale projects and strengthening real estate development.

160

	Trends in financial results (in JPY 100 mil.)		FY2030 net sales target
		¥200 billion
			Net sales (right scale)		Operating profit (left scale)		2011
120							Great East Japan Earthquake
				1991	2008	2013 and onward
				Abenomics
					Bursting of economic bubble	Global financial crisis
80

40

0

1948 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71	72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22	23(Forecast)	25 (Forecast)
					予23	25予
	Non-consolidated		Consolidated

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2,000

1,500

1,000

500

0

予30
30	(Forecast)	(Fiscal year)

8

YAHAGI ENGINEERING

A construction engineering company that meets customer needs at every stage of the building life cycle

Beyond merely constructing buildings, we provide new value that only the Yahagi Construction Group can realize, by integrating specialized know-how of the Group companies that are well-versed in each field with unique technologies that are dedicated to respective fields.

YAHAGI REAL ESTATE		YAHAGI ROAD		YAHAGI BUILDING AND LIFE		Techno Support
Condominiums for sale business		Paving business				PAN WALL (an earth reinforcement method using panels
Real estate development business		Civil engineering business		Apartment and building management business	and "soil nails" for slope protection) business
		PITA Column (a seismic retrofitting method using external
Real estate leasing business		Manufacture and sales of asphalt mixture		Building construction business
		reinforcing for existing buildings) business
Real estate brokerage business		Recycling business				Technological development, trial experience production

Planning/

Building

Maintenance

Renewal/

Utilization of land

Construction

and building

design

management

renovation

diagnostics

YAHAGI CONSTRUCTION		HOKUWA CONSTRUCTION		YAHAGI GREEN		Nanshin Takamori Development
Building construction business				Greenery business		Operation of golf courses
Civil engineering business		Building construction business
		Golf course management business		(Takamori Country Club)
Real estate business

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9

Corporate philosophy and management philosophy

Corporate philosophy

"Sincere, enterprising and creative"

We shall create on our own with a sincere and enterprising spirit and engage

in business that always meets the needs of society.

Management philosophy

We aim for self-fulfillment of our employees and sustainable corporate growth, by creating value through construction engineering.

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