(407A) Stock Price

UNICON Holdings is a pure holding company that strategically links regional leading construction firms through capital investment. The company formulates overall group management strategy and provides guidance and oversight of its subsidiaries. Through its subsidiaries, the company primarily operates construction-related businesses, including public civil engineering and building works, disaster recovery, and maintenance of social infrastructure.

The company's primary customers are public sector entities such as national and local governments, with revenue centered on prime contractor projects funded by public investment. Construction-related operations account for the majority of the company's sales and profits, while secondary operations including private construction projects, real estate leasing, gas station operations, and solar power generation contribute a smaller portion.

Operations are divided into two segments: construction-related and other. The construction-related segment encompasses infrastructure maintenance areas such as "infrastructure development," "disaster response," and "environmental protection," as well as private construction and secondary operations. The company has established a framework capable of handling large-scale and complex projects by leveraging construction management expertise—covering quality control, scheduling, material procurement, and safety management—while sharing group-wide strengths such as snow removal, tunnel construction, and mountain trail maintenance capabilities across regional subsidiaries.

UNICON Holdings is pursuing a growth strategy to capture demand for maintenance and renewal of public infrastructure under its "Medium-Term Management Plan (fiscal year ending June 2026 through fiscal year ending June 2028)." Against the backdrop of expanded public investment accompanying national resilience initiatives, the company aims to maximize orders across the entire group, with order value and order backlog serving as key management metrics. The company has recorded operating profit in the fiscal years ending June 2024 and June 2025, and is pursuing medium to long-term growth while maintaining a stable revenue base.

The company's priority investment areas are infrastructure maintenance sectors including social infrastructure development, disaster response, and environmental protection. With approximately 75% of Japan's roughly 730,000 road bridges expected to reach 50 years or older by 2040, substantial renewal demand is anticipated. The company leverages its strong reputation from public works projects and recognition through Ministry of Land, Infrastructure, Transport and Tourism excellence awards as competitive differentiators, aiming to strengthen competitiveness through enhanced quality, scheduling, and safety management. Recognition under the enterprise group system also serves as a strength, enabling efficient allocation of personnel and expertise across the group.

For new market development and business expansion, the company is pursuing a cross-group strategy to win large projects from its primary customers—national and local government entities. The company has established a headquarters organization aligned with the enterprise group system and aims to increase utilization rates and minimize missed opportunities through seconded employee deployment and group-wide recruitment, thereby pursuing entry into larger-scale, higher-value-added projects. Ancillary businesses including private construction, solar power generation, and rental operations are positioned as revenue supplements to stabilize the business portfolio. On the financial front, the company will continue strengthening capital procurement and financial foundations to address working capital needs inherent to construction projects.

Technological innovation and business standardization directly address the company's pressing challenge of engineer shortage. Specifically, the company is strengthening mid-career recruitment of talented engineers, employee referral programs, and group-wide hiring, while promoting knowledge sharing through engineer transfers and reassignments within the group and standardizing specialized construction methods. Through these initiatives, the company targets increased numbers of qualified personnel such as construction management engineers and expanded order backlog as key performance indicators, aiming to strengthen on-site capabilities and improve productivity.