Seikitokyu Kogyo : Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2022

Financial Results Presentation for the First Half of the Fiscal Year Ending March 31, 2022

November 30, 2021

Becoming a truly strong corporate group

Contents

Overview of Financial Results

1 for the First Half of the Fiscal Year Ending March 31, 2022

2 Outlook for the Fiscal Year Ending March 31, 2022

Reference:

1. Long-termVision and Medium- term Management Plan
2. Reference Information

Impact of the COVID-19 Pandemic	4
Business Environment During the First Half of FY2021	5
Financial Results (Consolidated and Non-consolidated)	6
Orders Received, Net Sales and Construction Contracts
Brought Forward (Consolidated)	7
Construction Work Orders Received (Non-consolidated)	8
Product Manufacturing and Sales Results (Non-consolidated)	9
Net Sales and Profit (Loss) Results by Segment (Consolidated)	10
SG&A, Operating Income, Ordinary Income and Net Income (Consolidated)	11
Analysis of Factors Affecting Changes in Net Income (Consolidated)	12
Changes in Accounting Policies (Consolidated)	13
Consolidated Financial Position and Cash Flows	14
Major Construction Works in Progress
(Those We Received Orders for and Those Brought Forward)	15
Major Completed Construction Works	16
Compliance	17
Topics	18
Financial Results Forecast for FY2021
(Consolidated and Non-consolidated)	20
Net Sales and Profit (Loss) Forecast by Segment (Consolidated)	21
Forecast of Construction Work Orders to be Received	22
(Consolidated and Non-consolidated)
Where We Should Be in 2030 (Vision)	24
Where We Should Be in 2030 (Quantitative Targets)	25
Basic Policies for Realizing Our Where We Should Be in 2030 Strategy	26
Cash Flow Allocations	27
Overview of the Medium-term Management Plan (FY2021-2023)	28
Key Performance Indicators (consolidated)(final year of the plan)	29
Individual Strategies / Key Strategies	30
Capital Policy (Investment Plans, Financial Plans and Shareholder Returns)	32
Corporate Philosophy / Company Profile	35
Main Offices, Laboratories, Consolidated Subsidiaries, etc.	36
Our Technology	37
Consolidated Performance Indicators, etc.	38

Overview of Financial

1 Results for the First Half of the Fiscal Year Ending March 31, 2022

1 Impact of the COVID-19 Pandemic

Preventive measures

Impact on our business

Financial conditions

We take thorough measures to prevent the spread of COVID-19 and continue construction works and plant operations to stably and constantly operate our business and provide our services while ensuring the safety and health of executives, employees, suppliers, and other relevant parties.

We suspended some of construction works, but both trends of public work orders and product delivery status remained steady. We had no significant impact on our performance until the end of the second quarter.

We ensure a necessary cash position. We observe no impact on our business activities in terms of working capital. We will continue to maintain financial soundness while paying close attention to changes in trends of construction work orders that may be influenced by COVID-19 preventive measures.

Becoming a truly strong corporate group 4

1 Business Environment During the First Half of FY2021

Economic activities remained stagnant due to the COVID-19 pandemic.

In the road construction market, public investment remained strong in relation to disaster prevention and mitigation and general measures to boost national resilience.

Crude oil price continued to rise, causing raw material prices to soar. This forced us to operate in a challenging business environment and made it difficult for us to make a significant profit.

We promote strategies in the Medium-term Management Plan (FY2021-FY2023)

1. Expand stable earnings by further strengthening the competitiveness of our core businesses
2. Rise to the challenge of expanding business areas and developing new business fields
3. Create a virtuous cycle in the recruitment, retention, and development of human resources
4. Establish new ways of working that help improve productivity
5. Build a strong and sound management and financial base

Becoming a truly strong corporate group that can respond to any future environmental changes

Becoming a truly strong corporate group 5