nissei build kogyo co., ltd

Nissei Build Kogyo Co., Ltd.Presentation Material ese tat o ate aFor European Institutional Investors

N b 2014November 2014

1

ContentsContents

1 Corporate Profile and Executive Summaryp y

2 What Distinguishes Nissei Buildg

3 How We Create Corporate Valuep

4 Nissei Buildʼs Strategic Advantages

5 Medium-term Business Plan and Financial Trend

sse u d s St ateg c d a tages

5 Medium term Business Plan and Financial Trend

6 FY3/2015 1H Financial Results

COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014. 2

1 Corporate Profile and Executive Summary

1 1 Corporate Profile1.1 Corporate ProfileCorporate

name Nissei Build Kogyo Co., Ltd.

Location 3-16-10 Kanaiwa-kita, Kanazawa City, Ishikawa Prefecture, JapanRepresentati

ve Atsuhiro Morioka, President

Established July 3 1961Established July 3, 1961Capital 7,002 million yen

Employees 478 (as of March 31, 2014)Fiscal term Ends March 31Fiscal term Ends March 31Traded on Tokyo Stock Exchange (First Section)

Sales FY ended March 2014 ¥44,854mn (Consol.): ¥25,903mn (Non-consol.)• Sales of systemized construction (prefabricated facilities and unit facilities); rental of

Business

• Sales of systemized construction (prefabricated facilities, and unit facilities); rental of prefabricated facilities

• Sales, maintenance, and renewal of automated tower parking and multilevel parking• Sales of parking facilities with ramps• Construction and renovation construction of railways, civil engineering, and building

works (by subsidiaries)Business lines

works (by subsidiaries) • Parking management and operation (by a subsidiary)• Trading, brokerage, agency work, rental, and management of real estate (by a

subsidiary)• Comprehensive management and maintenance of commercial facilities, etc. (by a

subsidiary)

COPYRIGHT(C) NISSEI BUILD KOGYO CO.,LTD. All Rights Reserved 2014.

subsidiary)• Planning, design, development, and management of software (by a subsidiary)

3

1 Corporate Profile and Executive Summary

1.2 Summary of Nissei Build Group Companies1.2 Summary of Nissei Build Group CompaniesNisse Build Kogyo Domestic Group Companies

Capital: ¥7,002mnEmployees: 478

Capital: ¥490mnOwned: 100%Employees: 144Business lines:

NB Construction Ozawa Construction NB Parking NB Investment NB Facilities NB Networks





Capital: ¥30mnOwned: 100%Employees: 2Business lines:Business lines:

Railway constructionBuilding constructionCivil engineeringRenovation construction

Business lines: Building constructionCivil engineering

Business lines:Operation and management of car-parking and bicycle-parking facilities

Business lines: Trade, brokerage, agency business, rental, and management of real estate

Business lines: General management and maintenance of commercial facilities, etc.

Business lines: Planning, design, development & management of software

Nissei Build Asia Pte. Ltd.

Country: SingaporeCapital: SGD1.54mnOwned: 100%Employees: 1Nissei Build Group

Overseas Group Companies

Business lines:Sales of parking structuresOperation and management of parking facilities

Space Value (Thailand)Co.,

Ltd

Asia Parking Investment Pte.

Ltd

Shanghai Tiandi Nissei

Parking Management Co ,Ltd

pConsolidated sales: ¥41,854mn (FY3/2014)Group employees: 657 (as of the end of September, 2014)

Country: ChinaOwned: 40%Capital: RMB17mnEmployees: 4Business lines:

Operation,

Ltd.

Country: ThailandCapital: THB10mnOwned: 49%Employees: 9Business lines:

Sales of parking structures

Ltd.

Country: SingaporeCapital: SGD1.3mnOwned: 80%Employees: -Business lines:

Development and i t t f ki

Parking Management Co.,Ltd


p ,management, and maintenance of parking facilities

structuresOperation and management of parking facilitiesSales of systemized construction

investment of parking facilities

1.3 Executive Summary1 Corporate Profile and Executive Summary

1.3 Executive Summary

Space is ValueSl pWe aim at being the pioneer invoking the possibilities of space.

We supply comprehensive systems composed of offsite-made components that are

Slogan

pp y p y p pdesigned for efficient use of space and efficient maintenance.

We provide optimal combinations of value-creating ideas and technological capabilities to maximize use of urban space for landowners and business operators.

Strength

We use alliances with major companies in many industries.We exploit group power and synergies via M&A, and form value-creating chains

that collect information, construct, manage, raise value, and anticipate future needs (renewal).Strategy

Nissei Build provides rare one-stop solutions in systemized construction for structuresof 1,000m2 or less in gross floor space across Japan. It has established strong competitive

advantages.Competitive advantage

The Medium-Term Business Plan targets sales of ¥50bn (up 20% from FY3/2014),net profit of ¥2.25bn (up 30%), ROE of 14%, and payout ratio of 35% in FY3/2016.

Shareholder value


2 What Distinguishes Nissei Build

2 1 Business Outline2.1 Business Outline Systemized construction: Frontage of 10-40m; Use of H-type lightweight steel frame

Building structures with standardized components and via systemized processes in a single process from design to factory fabrication to on-site constructionSystemized

construction business

single process from design to factory fabrication to on-site construction.Nissei Build is the only Japanese company to perform systemized construction by using H-type lightweight steel frame.

Prefabricated facilities: Frontage of less than 10m; use of C-type steel frame.Quick construction low cost and flexible response to customer needs

Parking

Quick construction, low cost, and flexible response to customer needs.Unit facilities: Assemble units from factory-fabricated components.

Automated tower parking: Maximum use of limited space by using an elevator.Multi-stacked parking; A product line-up of two- to six-storied structuresParking

structure business

Multi stacked parking; A product line up of two to six storied structures.Parking with ramps: Safe, convenient, and cost-effective parking.Maintenance service.Coin-operated parking structures.

General construction

business

Construction related to condominiums, large facilities, and railways.Anti-seismic reinforcement, large-scale repair of condominiums.Large-scale home centers, medical and welfare facilities, large-scale commercial buildings, etc.

Property development

business Development of condominiums and road-side buildings.


(FY3/2015)

6


2.2 Construction Examples and Images2.2 Construction Examples and ImagesWe aim at being the pioneer invoking the possibilities of space

Systemized construction business

Prefabricated facilities(large) Prefabricated facilities (standard) Unit facilities (unit)

Parking structure businessParking structure business

Automated tower parking Multilevel parking Parking structure with ramps



2 3 Systemized Construction Product Example: Nissei V Span-S2.3 Systemized Construction Product Example: Nissei V Span SNissei Build is the only company engaged in systemized construction business using H-type lightweight steel frames.

The cost is less than heavyweight frames; the lighter frames are optimal for buildings of 10-40 m frontage and gross floor space of

Nissei V Span-SNissei V Span-SFrame systemFrame system Exterior systemExterior system Roof systemRoof system OptionsOptions

optimal for buildings of 10 40 m frontage and gross floor space of 1,000m2 or less

Building components are selected from among standardized frame systems, exterior systems, and roof systems, enabling use of those that are most suitable

Nissei V Span SNissei V Span SFrame systemFrame system Exterior systemExterior system Roof systemRoof system OptionsOptions

Large spaceLarge space Short construction Short construction StandardizedStandardizedLarge spaceLarge space periodperiod StandardizedStandardized

Factories Warehouses Stores P bli f ilitiFactories Warehouses Stores Public facilities



2 4 Systemized Construction Product Example: Prefabricated Facilities2.4 Systemized Construction Product Example: Prefabricated FacilitiesBuildings of 10m or less in frontageConstruction method: factory fabrication of components (pillars, beams, roofs, walls) for on-site assembly and completion of construction of a building or structureStandardization of components and processes of factory fabrication and on-site constructionhas raised quality.A contribution is made to lowering construction costs by rationalizing processes from design to construction and by shortening the overall construction period.

d b iGroundwork Pillar installation Beam and bracing installation

Exterior wall panel installation

Completion

Short construction i d

Short construction i d StandardizedStandardizedperiodperiod StandardizedStandardized


Office buildings Stores Garages Public facilities

Coin-operated laundries


2 5 Systemized Construction Product Example: Unit Facilities2.5 Systemized Construction Product Example: Unit Facilities

Unit house using the unit method of installing factory-made finished products on siteproducts on siteConstruct a building satisfying set requirements in a short construction period.Functionality, whereby adaptation to future changes, such as

l d f b ld b d drelocation and expansion of a building, can be accommodated.

Short construction period

Short construction period StandardizedStandardized Functional

adaptabilityFunctional adaptability

Sheds Shelters Studios Toilets



2.6 Parking Structure Product Example2.6 Parking Structure Product ExampleBy using standardized components and systemized construction know-how, Nissei Build constructs parking structures that satisfy a wide range of specific requirements in a short construction period.Parking structures indicate multilevel facilities as stand-alone structures with, if needed, mechanical devices.Both mechanical and drive-in type facilities are available Mechanical parking can be either as a tower or aBoth mechanical and drive in type facilities are available. Mechanical parking can be either as a tower or a multilevel facility.

Automated tower parking Parking with rampsMulti-stacked parking

タワー式

Short construction period

Short construction period StandardizedStandardized FlexibleFlexible

H t l Offi C d C t H it lC d C t


Hotels Offices Condos Corporate offices

HospitalsCondos Corporate housing


2.7 Sales Breakdown2.7 Sales Breakdown

FY3/2014 Sales FY3/2015(E) SalesFY3/2014 SalesSystemized construction

¥18,946mn, 45%

Comprehensive construction

¥14,811mn, 36％

FY3/2015(E) SalesSystemized construction

¥ 22,400mn, 48%Development

¥1,400mn, 3%

¥44,854million

¥47,000million

Sales

up 12%

Sales

up 12%

Parking structures¥8,097mn, 19%

Parking structures¥9,500mn, 20%


¥13 700 29％


, ,¥13,700mn, 29％

12


2.8 Strengths: Ideas and Technological Capabilities2.8 Strengths: Ideas and Technological Capabilities

Value-creating ideas Technological capabilitiesg g p

C t l S i V lCorporate slogan: Space is Value

Nissei Build provides throughout Japan the optimal combination of technological capabilities with valuecombination of technological capabilities with value-

creating ideas to effectively utilize urban space for both landowners and operators



2.9 Value-creating Ideas2.9 Value creating Ideas

Value-creating ideas based on

Creating new value based on common conceptsSynergies between systemized construction and parking structure

ideas based on common concepts

Synergies between permanent buildings and temporary buildings• Provide a temporary building (for short-term storage, etc.)

– Swiftly construct and remove a temporary building in a short time and reduce overall cost.

Value-creating

Based on information from alliance partners, make proposals to companies with business interests that include parking facilities or stable cash flow businessValue creating

ideas based on collaboration

stable cash flow businessTarget: Convenience stores, hospitals, public facilities, etc.Example: Provide a parking facility in connection with a new or renovated convenience store, improve service and gain more customersEnable flexible ability to realize stable cash flow development projectsEnable flexible ability to realize stable cash flow development projects.

Creating value by supporting the building in a comprehensive way

Value-creating ideas based on comprehensive

supportDesign

Construct

Completi

Operation

managem

Maintenan

Renewa

Operation managem

Dismantlem


supportn tion

on and m

ent

nce

al and m

ent

ment

14


2.10 Technological Capabilities2.10 Technological Capabilities

In houseIn-house total design and manufacturing from steel-frame construction materials, wall panels, roof materials, control equipment In-house

design and manufacturing

, p , , q pand control program for tower parking.Reduce total cost and shorten construction period by standardized mass production and construction techniques that do not require veteran workers

Space

veteran workers

Technological solutions in the form of systemized construction(sales of prefabricated facilities and unit facilities), rental of prefabricated p

utilization solutions

p ), pfacilities, general buildings, and combinations of themTechnological solutions of multi-stacked, mechanical, drive-in, coin-operated parking structures and combinations of them

Nationwide identical

Provide identical-quality technological services of design, manufacturing, and construction by Nissei Buildʼs own factories, partner building contractors and sales offices across Japanidentical-

quality technology

partner building contractors, and sales offices across JapanLess affected by the labor shortage problem, compared to construction companies using conventional methods, as Nissei Build does not require veteran workers


3 How We Create Corporate Value

3 1 Value-creating Chain to Maximal Usage of Space3.1 Value creating Chain to Maximal Usage of Space

Nissei Buildʼs one-stop solution forms Nissei Buildʼs one-stop solution forms pa long-term sustainable value-creating chain

pa long-term sustainable value-creating chain

Through alliance partners, collect nation-wide information on land with development potential inCollect Collect information on land with development potential in connection with business activity

Provide realistic, convincing construction proposals, combined with comprehensive construction expertiseConstructConstruct

informationinformationProvide Provide combined with comprehensive construction expertise

ManageManage Operate and manage the constructed property in optimal condition

ways to u

ways to u

Enhance functional and

asset value

Enhance functional and

asset valueEnhance the value of property through good facility management and maintenance

utilize spautilize spa

Anticipate future needs

Anticipate future needs

Perform large-scale repair or renovation work in keeping with changing needs

aceace



3.2 Alliance to Collect Information3.2 Alliance to Collect InformationType of

informationType of

information Alliance partnersAlliance partners DetailsDetails Start timeStart time

GE Capital Japan Business alliance for introduction of lease clientsClients of all

sectors; Clients of all

sectors;

Sep. 2012

ORIX Corporation Business alliance for introduction of lease clients

B i d it l lli f d lBusiness and capital alliance for develop

;financing

;financing

StoreStore

Aug. 2012

ES-CON Japan Ltd ment of condominiums and commercial facilitiesNissei Build owns a 5% stakeB i d it l lli d lBusiness and capital alliance on development of new products and clients

Store openings; planning

and design of

Store openings; planning

and design of

Nov. 2012

Luckland Co., Ltd.

Tosei Revival Investment

ment of new products and clientsCross-shareholding of ¥50 million with Nissei Build

Business alliance on real estate development renewal and property managem

commercial facilities

commercial facilitiesNeed for buildingNeed for building

Nov. 2012

Apr 2013Corporation ment, renewal, and property management

Kawada Industries Inc

B i lli f t i d tBusiness alliance for systemized construction; Nissei Build does small projects (1,000m2 or less in floor space), Kawad

building renewalsbuilding renewals

Need for systemized

t ti

Need for systemized

t ti

Apr. 2013

Sep. 2013


Industries, Inc.gg p j

(1,000m or less in floor space), Kawada does bigger projectsconstructionconstruction

17

3 How We Create Corporate Value3.3 Comprehensive Group Power that Generates

V l C ti Ch ia Value-Creating Chain Collect

informationCollect

information NB Investment *1Land developmentSupport of store openings

ConstructConstructNissei Build Kogyo NB ConstructionNB Construction *2

Ozawa Construction *3

Systemized constructionParking structure constructionComprehensive constructionCivil and infrastructure works

ProPro

ManageManage

Ozawa Construction

NB Parking *4Operation and management of parking

Management of facilities for business NB Investment

opose a wa

opose a wa

Enhance functional Enhance functional NB Facilities *5

for business

Maintenance of parking structures

Maintenance and management of

Nissei Build Kogyo

ay to utilizay to utiliz

and asset value

and asset value

NB Facilities 5commercial facilities, etc.

Railway track improvement NB Construction

ze spaceze space

Anticipate future needsAnticipate

future needs

Renovation of parking structures

Large-scale repair works

Nissei Build Kogyo NB Construction NB Construction

Ozawa ConstructionOzawa Construction


*1: Established in Dec. 2013; *2 Established in Feb. 2013; *3 Became subsidiary in Sep. 2012;*4 Became subsidiary in March 2013; *5 Established in Sep. 2013

18


3 4 New Business Development in Japan and Overseas3.4 New Business Development in Japan and OverseasExpansion of stock business in

JapanExpansion OverseasExpansion OverseasShanghai Tiandi Nissei Parking Management

Co LtdpMaintenance of

parking structures Nissei Build Kogyo

Co., Ltd.

China

Focus on parking operation and management

Operation and management of parking facilities of theme parks and hospitals

NB Parking Operation and management of parking

Management of facilities for b i d l NB Investment

Nissei Build Asia Pte. Ltd.A i P ki I t t Pt Ltd

p p16,000 parking lots managed by the maintenance subsidiary

NB Facilities Maintenance and management of commercial facilities

business development NB Investment

Singapore

Asia Parking Investment Pte. Ltd.Develop parking structure construction business

Capture the projects by Singaporeʼs Housing & Development Board Promote development of the Malaysian

(Millions of yen) FY3/2014 FY3/2015(E)Maintenance of parking structures 1,951 2,100

Space Value (Thailand) Co., Ltd.

Develop systemized structure and parking structure construction business

p ymarket

Operation & management of parking 1,000 1,900Development business － 1,400

Total 2,951 5,400

ThailandParking projects for local firmsMultilevel parking at limited-space industrial complexesServices for Japanese companiesʼ plants and warehouses


plants and warehousesPromote development of the Myanmar market

19


3.5 Stock Business Growth Strategy Outlook3.5 Stock Business Growth Strategy Outlook

FY3/2015• Accelerate sales by acquiring parking facility

management companies, as wide-range synergies in Operation and

management of

¥5.4bn (E) in salesuse of space can be expectedparking facilities

Management of • Promotion of increase in management assets to

include visible cash-flow parking facilities adjacent to

Aim over ¥10bn in sales

gbusiness facilities

(Development business)

include visible cash flow parking facilities adjacent to convenience stores, and hospitals

• Focus on less economic sensitive projects with ensured exit strategy

in salesin around FY3/2017

• Accelerate sales by acquiring maintenance management companies, as wide-range synergies in use of space can be expected

Maintenance and management of

commercial facilities

Stock business has a 30 40% gross margin on average and a relatively higher

facilities

Stock business has a 30-40% gross margin on average and a relatively higheroperating margin than other businesses.

Nissei Build aims to further expand stock business and achieve resilient cost structure offsetting SG&A expenses of other divisions by means of the operating profit of stock business.



3.6 Business Segments and Segmentation3.6 Business Segments and Segmentation

FY3/2015 Sales Plan by SegmentFY3/2015 Sales Plan by Segment Business SegmentationBusiness SegmentationSystemized construction

business¥22,400mn,

Development business

¥1,400mn, 3%

Systemized constructionSystemized construction

P kiP ki

Nissei Build KogyoNissei Build Kogyo

Nissei Build Kogyo, ,48%

販売事業

Parking structures Parking

structures

Comprehensivt ti

Comprehensivt ti

Ozawa Construction Ozawa Construction

NB Parking NB Parking Nissei Build Kogyo

12,41430%

¥47,000million

e constructione construction

Development Development

NB Construction

NB Investment Nissei Build KogyoNissei Build Kogyo

Non-consolidated

Non-consolidated

NB Facilities NB Facilities Nissei Build Asia Pte. Ltd.Nissei Build Asia Pte. Ltd.

Parking structure business

¥9,500mn, 20%


business

consolidated subsidiariesconsolidated subsidiaries

Equity incomeEquity income

Space Value (Thailand) Co., Ltd.Space Value (Thailand) Co., Ltd.Asia Parking Investment Pte. Ltd.Asia Parking Investment Pte. Ltd.

Shanghai Tiandi Nissei Parking


¥9,500mn, 20%business¥13,700mn, 29％

Equity income affiliate

Equity income affiliate

Shanghai Tiandi Nissei Parking Management Co.,Ltd

21

3 How We Create Corporate Value3.7 Positioning and Growth Potential of Systemized C iConstruction Total floor space Market size Main players Value chain

Nissei Build’s

strategyNissei Build’s

growth potentialstrategy

Large scale1,000m2 or Approx.

¥5 trillion

Subsidiaries or a business

department of

Most players have an integrated production system from materials to construction Use

Not applicable －

more ¥5 trillion major steel or bridge makers

to construction Use heavyweight steel

frames

Nissei Build; Most players have an integrated production High as major

Middle scaleless

than1,000m2

Approx. ¥500 billion

Subsidiaries or a business

department ofmajor steel or bridge makers

integrated production system from materials

to constructionOnly Nissei Build

uses H-type lightweight t l f

Main target

High as major players cannot pursue scale merit and are not aggressivebridge makers steel frames

Small scaleApprox. ¥200

Many small-scale

Few companies have an integrated production system from materials

Main target

High as Nissei Buildʼs one-

stop solution is billion companies system from materials

to constructiontarget p

highly competitive

Accelerate growth in the middle-scale market, in alliance with Kawada IndustriesAccelerate growth in the middle-scale market, in alliance with Kawada Industries


Alliance with Kawada in the systemized construction business. Based on shared business information, Nissei Build does small projects (1,000m2 or less in floor space) and Kawada, the bigger projects.

3 How We Create Corporate Value3.8 Groupings and Other Systemized Construction M kMakers

SteelmakersSteelmakers

Lightweight steel frames

Lightweight steel frames Heavyweight steel framesHeavyweight steel framesframesframes

Bridge-related systemized construction

Bridge-related systemized construction

Steelmaking-related systemized construction

Steelmaking-related systemized construction

Only Nissei Build is insystemized construction Only Nissei Build is in

systemized construction systemized construction makers

systemized construction makers



ybusiness, using

lightweight steel frames

ybusiness, using

lightweight steel frames

Frontage of 10-40mFloor space of

1,000m2 or less

Frontage of 40m or moreFloor space of 1,000m2 or more

Due to different background, Nissei Build is differentiated from other makers, and has established a value chain optimal to its business characteristics, that acts to deter entrants from other groupings.

Due to different background, Nissei Build is differentiated from other makers, and has established a value chain optimal to its business characteristics, that acts to deter entrants from other groupings.


, g p gThis has provided stability for the company.

, g p gThis has provided stability for the company.

4 Nissei Build’s Strategic Advantages

4 1 Nissei Build’s Advantages from Five Force AnalysisStrong and solid relations with clients

4.1 Nissei Build s Advantages from Five Force Analysis

Clients such as convenience store chains highly regard Nissei Build’s capability to provide solutions b d d t di f th li t’ b ibased on understanding of the client’s business.Clients are highly satisfied with Nissei Build’s systemized construction (for 1,000m2 or less) and parking structures.Nissei Build has established strong relationships of trust with intermediate companies or agencies,

who in turn are trusted by clients.

Competitive rivalryThreat of new entrants Threat of substitutesFew companies offer one-t l ti i Ni i

It is not easy to provide a comp ehensi e se ice ith

Nissei Build’s products l ti l

The life cycle maintenance enables to last long-term relationship.

stop solutions in Nissei Build’s targeted middle- and small-scale markets.

comprehensive service with a nationwide production network such as that of Nissei Build.

replace conventional methods.

Relationship with partners

Limited competitionLow risk Low substitution risk

Information providing partners: Alliances with Nissei Build invigorates their businessBuilding contractors in partnership: Profit from handling Nissei Build’s differentiated productsSteelmakers: Nissei Build established a strong relationships of trust as a large client to purchase lightweight steel frames


purchase lightweight steel framesStrong and solid relations

4 Nissei Build’s Strategic Advantages

4.2 Nissei Build’s Advantages from VRIO Analysissse u d s d a ages o O a ys s

Value RarityValue Rarity

Nissei Buildʼs total solutions to maximize space value and satisfy client needs, which are available nationwide, have

hi hl l bl f


hi hl l bl f

Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less in

Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less in


hi hl l bl f

Nissei Build is the only company in Japan to do systemized construction by using H-type lightweight steel frame for structures of 10-40 m in frontage and 1 000m2 or less inproven highly valuable to operators of

chain stores.proven highly valuable to operators of chain stores.

40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction and

40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction and

proven highly valuable to operators of chain stores.

40 m in frontage and 1,000m2 or less in gross floor space in Japan.Very few companies provide one-stop solution for small-scale structures, from component fabrication to construction andcomponent fabrication to construction and maintenance.component fabrication to construction and maintenance.

Imitability Organization

component fabrication to construction and maintenance.

Imitability Organization

It is difficult to imitate systemized construction starting with component fabrication.Nissei B ildʼs h man eso ces ho


Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized construction

Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized construction


Nissei Build is organized to provide one-stop solutions from component fabrication to construction and maintenance for systemized constructionNissei Buildʼs human resources who

market total solutions and respond to client needs are difficult to replicate.

Nissei Buildʼs human resources who market total solutions and respond to client needs are difficult to replicate.

maintenance for systemized construction of 1,000m2 or less.Nissei Build is capable of proposing use of space of the target businesses and do actual construction as one stop


Nissei Buildʼs human resources who market total solutions and respond to client needs are difficult to replicate.



actual construction as one-stop.actual construction as one-stop.actual construction as one-stop.


5.1 Medium-Term Business Plan5.1 Medium Term Business Plan

Indicator FY3/2014 FY3/2015 FY3/2016Indicator(millions of yen)

FY3/2014 (Actual)

FY3/2015 (Plan)

FY3/2016 (Plan)

Net sales 41,854 47,000 50,000, , ,

Operating income 2,324 3,250 3,500

Ordinary income 2 490 3 250 3 500Ordinary income 2,490 3,250 3,500

Net income 1,753 2,050 2,250

Earnings per share (yen) 26.5 31.0 34.0

Operating margin 6% 7% 7%

ROE 13% 14% 14%

Payout ratio 26% 29% 35%



5.2 Income Statement5.2 Income Statement

60,000

Net Sales2,500

Operating Income7,000

Net Income(Millions of yen)

(Millions of yen)

(Millions of yen)

30,000

40,000

50,000

1 000

1,500

2,000

3,000

4,000

5,000

6,000

0

10,000

20,000

0

500

1,000

0

1,000

2,000

Indicators( illi f ) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015

(Pl )FY3/2016

(Pl )(millions of yen) 3/ 0 0 3/ 0 3/ 0 3/ 0 3 3/ 0 (Plan) (Plan)Net sales 18,367 17,204 41,879 25,487 41,854 47,000 50,000

Gross profit 3,305 3,148 9,591 5,271 6,356 7,650 8,300

SG&A expenses 2,911 2,596 3,258 3,423 4,031 4,400 4,800

Operating income 394 552 6,333 1,847 2,324 3,250 3,500

Ordinary income 477 545 6,436 1,979 2,490 3,250 3,500


Net income 242 249 2,196 1,747 1,753 2,050 2,250

27


5 3 Margins5.3 Margins

25%

Gross Margin8%

Net Margin16%

Operating Margin

10%

15%

20%

4%

5%

6%

7%

8%

10%

12%

14%

0%

5%

10%

0%

1%

2%

3%

0%

2%

4%

6%

Ratios FY3/2015 FY3/2016Ratios (millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015

(Plan)FY3/2016

(Plan)Gross margin 18.0% 18.3% 22.9% 20.7% 15.2% 16.3% 16.6%

SG&A expenses to 15 8% 15 1% 7 8% 13 4% 9 6% 9 4% 9 6%G& p osales 15.8% 15.1% 7.8% 13.4% 9.6% 9.4% 9.6%

Operating margin 2.1% 3.2% 15.1% 7.3% 5.6% 6.9% 7.0%

Ordinary margin 2.6% 3.2% 15.4% 7.8% 5.9% 6.9% 7.0%


Net margin 1.3% 1.4% 5.2% 6.9% 4.2% 4.4% 4.5%

28


5.4 ROE, EPS, and Payout Ratio

40%

5.4 ROE, EPS, and Payout Ratio

20%

ROE35

EPS Payout Ratio(Yen)

20%

25%

30%

35%

10%

12%

14%

16%

18%

20

25

30

0%

5%

10%

15%

0%

2%

4%

6%

8%

0

5

10

15

FY3/2015 FY3/2016

0

Ratios FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014 FY3/2015 (Plan)

FY3/2016 (Plan)

ROE 2.6% 2.6% 20.6% 14.2% 13.0% 14.0% 14.0%

EPS (yen) 2 4 31 26 27 31 34EPS (yen) 2 4 31 26 27 31 34

Payout ratio 46.6% 28.1% 22.3% 19.2% 26.4% 29.0% 35.0%



5.5 Balance Sheet: Assets5.5 Balance Sheet: Assets

Items(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014(millions of yen) / / / / /

Current assets 11,657 10,581 21,685 23,308 25,064Cash and deposits 3,421 2,458 11,387 6,678 4,879

Notes and accounts receivable 6,610 6,191 7,629 13,012 11,737

Inventories 1,466 1,687 2,619 2,578 7,731Deferred tax assets 195 318Deferred tax assets - - - 195 318

Fixed assets 12,603 12,365 8,649 11,843 12,889Tangible fixed assets 9,962 10,307 7,249 8,399 9,205Depreciable assets 4 389 4 694 3 035 3 547 4 718Depreciable assets 4,389 4,694 3,035 3,547 4,718Land 5,569 5,610 4,213 4,246 4,486Intangible fixed assets 93 72 80 189 254Goodwill - - - 47 35

Investment and other assets 2,546 1,985 1,320 3,254 3,429Investment securities 1,526 976 122 2,025 2,323

Total assets 24,260 22,946 30,335 35,152 37,954



5 6 Balance Sheet: Liabilities and Net Assets5.6 Balance Sheet: Liabilities and Net AssetsItems

(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014

Current liabilities 11,621 10,115 14,800 18,628 19,815Notes and accounts payable 3,984 3,992 7,742 11,410 10,354Short-term borrowings, bonds,etc. 4,999 3,717 1,666 2,359 4,394

N t li biliti 3 161 3 341 3 715 3 648 3 988Non-current liabilities 3,161 3,341 3,715 3,648 3,988Long-term borrowings, bonds, etc. 2,251 2,247 2,705 2,091 2,298Deferred tax liabilities - 7 2 144 77

Total liabilities 14,782 13,456 18,515 22,276 23,803ota ab t es , 8 3, 56 8,5 5 , 6 3,803Net assets 9,478 9,490 11,819 12,875 14,151

Common stock 7,002 7,002 7,002 7,002 7,002Capital surplus 1,913 1,913 1,913 1,913 1,913Retained earnings 715 894 3,020 4,279 5,701Treasury stock -123 -123 -126 -624 -625Total shareholdersʼ equity 9,507 9,686 11,810 12,570 13,992Net unrealized valuation gain, etc. -29 -196 - 289 120

Subscription rights to shares - - 8 16 37Subscription rights to shares - - 8 16 37Total liabilities and net assets 24,260 22,946 30,335 35,152 37,954Own capital 9,478 9,490 11,810 12,859 14,113Interest-bearing debt 7,250 5,964 4,371 4,450 6,692



5 7 Cash Flow Statement5.7 Cash Flow StatementItems

(millions of yen) FY3/2010 FY3/2011 FY3/2012 FY3/2013 FY3/2014

Operating cash flow 1,364 1,061 10,368 -50 -1,633Pre-tax income 294 306 3,211 1,885 1,764Depreciation 720 700 553 347 504Amortization of goodwill - - - 76 18Increase in accounts payable 1,248 419 -1,437 767 1,278Decrease in inventories 1,500 -221 -932 155 -5,141Decrease in accounts payable -1,574 7 3,749 -1,084 -1,064

Subtotal 1,645 1,212 10,678 1,549 -1,658Interest and dividends received 36 26 27 7 27Interest and dividends received 36 26 27 7 27Interest expenses paid -163 -140 -96 -77 -75Income taxes paid -153 -37 -50 -1,529 73

Investing cash flow -94 -646 235 -2,266 -2,248Increase in tangible and 71 1 035 296 841 1 397gintangible fixed assets -71 -1,035 -296 -841 -1,397Increase in investment securities -63 5 740 -1,258 -972

Financing cash flow -564 -1,367 -1,678 -2,364 1,744Inc e e in bo o ing ndIncrease in borrowings and corporate bonds -553 -1,283 -1,593 -1,346 2,117

Increase in treasury stock -1 0 -2 -498 -1Dividends paid 0 -70 -68 -483 -329

Cash and cash equivalents 3,387 2,434 11,359 6,678 4,679


Cash and cash equivalents 3,387 2,434 11,359 6,678 4,679


6 1 Summary6.1 Summary

(Millions of yen)

FY3/2014 1H FY3/2015 1H Increase

Amount % to l Amount % to

l Amount Y-O-( )Amount sales Amount sales Amount Y(%)

Net sales 19,256 100.0 19,086 100.0 △170 △0.9

Gross income 2,892 15.0 3,060 16.0 168 5.8

SG&A expenses 1,971 10.2 1,991 10.4 19 1.0

Operating income 920 4.8 1,069 5.6 148 16.2

Ordinary income 943 4 9 1 106 5 8 163 17 3Ordinary income 943 4.9 1,106 5.8 163 17.3

Net income 509 2.6 709 3.7 199 39.3



6 2 Sales by Business Segment6.2 Sales by Business Segment(Millions of yen)

FY3/2014 1H FY3/2015 1H Increase

Amount % to sales Amount % to sales Amount Y-O-Y(%)

Sales 5,496 28.5 7,164 37.5 1,668 30.4

Rental 2 827 14 7 3 310 17 4 483 17 1Rental 2,827 14.7 3,310 17.4 483 17.1

Systemized construction business 8,323 43.2 10,474 54.9 2,151 25.8

Sales 2 859 14 9 1 958 10 3 △901 △31 5Sales 2,859 14.9 1,958 10.3 △901 △31.5

Maintenance 865 4.5 779 4.1 △86 △9.9

Parking operation & management 278 1.4 602 3.1 324 116.7management

Parking structure business 4,003 20.8 3,341 17.5 △662 △16.5

Comprehensive construction business 6,929 36.0 5,260 27.5 △1,668 △24.1construction business , , ,

Development business - - 9 0.1 9 -

Total 19,256 100.0 19,086 100.0 △170 △0.9


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