ICHIKEN Co., Ltd.

In FY2026 (ending March 2026), the ratio of negotiated orders in the construction business stood at 58.6% (up 12.6 points year on year). The company has received continuous orders from major clients such as AEON Retail, Mitsui Fudosan, and Sumitomo Corporation, with its long track record of construction performance and planning/proposal capabilities underpinning customer trust.

As of the end of March 2026, the non-consolidated backlog of construction orders to be carried forward to the next fiscal year stood at ¥101,328 million (construction business), roughly on par with the current fiscal year's net sales of ¥101,548 million. This backlog includes large-scale projects such as two APA Hotel properties, a Mitsui Fudosan project, and renovation work at a U.S. military base, providing high visibility for revenue recognition in the following fiscal year and beyond.

At the end of FY2026 (ending March 2026), the equity ratio stood at 53.7% (up from 50.4% in the previous fiscal year), with total net assets of ¥400,021 million. The company has set a mid-term target of maintaining a D/E ratio of 0.3x or below, and possesses a financial foundation capable of executing growth investments while preserving financial soundness.

Continued aggressive order intake for core commercial facility construction and renovation work. Maintaining a high level of order backlog to be carried forward of ¥101,328 million (up 16.5% year on year), targeting net sales of ¥108,000 million for FY2027 (ending March 2027). In parallel with promoting work-style reform through a four-week, eight-day-off system, the company is investing ¥1.5 billion in developing and hiring construction site managers.

Investing ¥4.0 billion over three years in the value-up of owned real estate, etc., to strengthen the function of complementing earnings from the construction business. Real estate for sale of ¥5,317 million and real estate for sale in process of ¥2,221 million (totaling ¥7,538 million) serve as sources of future sales recognition. Real estate sales gains are already incorporated into the earnings forecast for FY2027 (ending March 2027).

Investing ¥3.5 billion over three years in M&A and other initiatives to expand the business. Following the July 2024 consolidation of Kataoka Kogyo Co., Ltd. (goodwill balance of ¥815 million) to expand into the civil engineering field, the company is also exploring securing earnings from new businesses such as the environmental field and franchising. It is also promoting the strengthening of its overseas business structure, including a partnership with its local subsidiary in Vietnam.

Investing ¥1.0 billion over three years in business transformation and other initiatives leveraging digital technology. Promoting business reform utilizing AI, reallocation of human resources, and rebuilding of the internal IT system environment. The acquisition of building fixtures and other assets associated with the relocation of the head office (fixed asset increase adjustment amount of ¥619 million) has also been completed, advancing infrastructure development.

Achieved an annual dividend of ¥230 (pre-split), payout ratio of 26.1%, and DOE of 4.5% for FY2026 (ending March 2026). The forecast for FY2027 (ending March 2027) is an annual dividend of ¥125 (post-split) with a payout ratio of 32.4%, continuing the trend of dividend increases. Dividends are being raised in stages toward the medium-term plan targets of a payout ratio of approximately 40% or DOE of approximately 4%. A 1-for-2 stock split was implemented effective April 1, 2026, aiming to broaden the investor base.