Q2 FY2019 Consolidated Results

(Quarter ended September 30,2019)

RAIZNEXT Corporation

© RAIZNEXT Corporation. All rights reserved.

Security code：6379
 Contents

1. Business Environment for Q2 FY2019

2. Earnings Summary for Q2 FY2019 (Consolidated)
3. Breakdown of New Contracts by Work Types (Consolidated)
4. Breakdown of Net Sales by Work Types (Consolidated)
5. Outstanding Contracts (Consolidated)
6. Gross Profit (Consolidated)
7. Operating Income (Consolidated)
8. Non-operating Profit and Losses / Ordinary Profit
9. Extraordinary Profit and Losses / Profit attributable to owners of parent
10. Balance Sheet (Consolidated)
11. Cash Flow (Consolidated)
12. Earnings Forecast for Full-Year FY2019 (Consolidated)
13. New Contracts and Net Sales by Segment (Consolidated)
14. Financial Highlights (Consolidated)
15. About Dividend

© RAIZNEXT Corporation. All rights reserved. 2

1. Business Environment for Q2 FY2019

The Japanese economy continued to experience protracted weakness, especially in exports. This
also included weakness in production.
Companies continued to remain cautious in their economic assessments, especially in the
manufacturing industry.
Corporate earnings remained stable, and capital investment also demonstrated a gradual upward
trend. Overall, the economy showed signs of a gradual recovery.
In the petroleum industry, the demand for petroleum in Japan is expected to continue its
downward trend as a result of factors including changes to the energy structure, a decreasing
birthrate, and energy-saving measures.
Refining capacity decreased due to compliance with the Act on Sophisticated Methods of Energy
Supply Structures. The rate of operation of refineries remained high.
In the petrochemical industry, the high rate of operation of ethylene plants was maintained, but
this was amid a correction phase to make adjustments for a slump in domestic shipments of
synthetic resins, etc.
In the non-ferrous metal industry as a whole, growth was slowed due to factors such as a drop in
the price of copper and changes in the demand for materials used in electronic components.
In the current term (term ending March, 2020), turnaround maintenance is forecast to continue
remaining strong.
We worked on securing orders for plant fortification works, modification and improvement works,
new plant construction works for the production of highly functional products, etc.
Amid rising subcontract processing costs due to a labor shortage, we endeavored to secure profits
by reducing direct construction costs, cutting expenditure, etc.

© RAIZNEXT Corporation. All rights reserved. 3

2. Earnings Summary for Q2 FY2019 (Consolidated)
(Reference)
(Unit: Millions of Yen) (Unit: Millions of Yen)
Percent
Announced
Q2 FY2019 Comparison of Q2 FY2018 Results
figures (As of announced Change
Sept. 26, 2019) Results figures Difference
Percent
(%) Change (%)

New Contracts 102,500 101,090 -1,409 -1.4% 51,399 +49,691 +96.7%

Net Sales 65,000 58,216 -6,783 -10.4% 43,789 +14,426 +32.9%
Gross Profit 6,000 7,569 +1,569 +26.2% 5,561 +2,008 +36.1%
Percentage (%) 9.2% 13.0% +3.8% - 12.7% +0.3% -
SG&A 3,300 3,367 +67 +2.0% 1,972 +1,394 +70.7%
Percentage (%) 5.1% 5.8% +0.7% - 4.5% +1.3% -
Operating Income 2,700 4,202 +1,502 +55.6% 3,588 +613 +17.1%
Percentage (%) 4.2% 7.2% +3.0% - 8.2% -1.0% -
Ordinary Profit 2,900 4,332 +1,432 +49.4% 3,706 +625 +16.9%
Percentage (%) 4.5% 7.4% +2.9% - 8.5% -1.1% -
Profit attributable to owners
of parent 1,850 8,327 +6,477 +350.2% 2,449 +5,878 +240.0%

Percentage (%) 2.8% 14.3% +11.5% - 5.6% +8.7% -

EPS 34.15Yen 165.83Yen +131.68Yen +385.6% Note: The above differences
and percentage changes are
Outstanding Contracts 67,593 72,942 +5,349 +7.9% values compared with the
actual Q2 FY2018 results.
Remarks
(1) As a result of a merger which took place on July 1, 2019, the results for the first half of the year include those of the former SHINKO
PLANTECH for this entire period as well as those of the former JX Engineering for the 3-month period from July to September. The
financial results for the full fiscal year include those of the former SHINKO PLANTECH for this entire period and those of the former JX
Engineering for 9 months.

(2) The large increase in new contracts compared with the previous term was due to the receipt of the former JX Engineering’s outstanding
contracts as of the end of June as RAIZNEXT’s new contracts on July 1.
4
(3) ©The
RAIZNEXT Corporation.
large increase All rights
in profit reserved. to owners of parent was due to the calculation of gain on bargain purchase resulting from the
attributable
merger as extraordinary profit.
3. Breakdown of New Contracts by Work Types (Consolidated)
(Unit: Millions of Yen)
Forecast figures
New Contracts
Comparison of
Q2 FY2019 Results
forecast figures
Change (%) Q2 FY2018 Difference Change (%)
(As of Sept. 26, 2019)

Daily Maintenance 14,500 15,281 +781 +5.4% 11,419 +3,861 +33.8%

Turnaround Maintenance 27,000 26,328 -671 -2.5% 22,610 +3,717 +16.4%
Plant Modification 30,200 29,270 -929 -3.1% 13,644 +15,625 +114.5%
Plant Construction 30,800 30,211 -588 -1.9% 3,724 +26,486 +711.1%
Engineering 102,500 101,090 -1,409 -1.4% 51,399 +49,691 +96.7%

5-Year Summary of New Contracts

(Unit: 100 millions of Yen)
New contracts increased 49.6 billion yen YoY due
1,200
to the receipt of the former JX Engineering’s
outstanding contracts as of the end of June 2019.
1,011 A decrease of 1,400 million yen compared with the
1,000 forecast figure as of September 26, 2019.

302 【Daily Maintenance】

800 Plant Construction
(1) Slight increase compared with forecast figure

Plant Modification 【Turnaround Maintenance】

(1) Slight decrease from the forecast figure due to the
600
shifting of turnaround maintenance scheduled for the
497 514 293 Turnaround
481 464 Maintenance first half to the second half
20 37
91 12 Daily Maintenance

400 135 136 【Plant Modification】

150 (1) Acquisition of contracts for medium/small scale
125
263 modification work centering on the petroleum field
200
232 191 226
150 【Plant Construction】
(1) Steady stream of inquiries, especially in general
114 110 110 114 153 chemistry
0
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019
© RAIZNEXT Corporation. All rights reserved. 5
4. Breakdown of Net Sales by Work Types (Consolidated)
(Unit: Millions of Yen)
Q2 FY2019 Comparison of
Net Sales
Announced figures
(As of Sept. 26, 2019)
announced Change (%) Q2 FY2018 Difference Change (%)
Results figures

Daily Maintenance 12,600 13,490 +890 +7.1% 11,029 +2,461 +22.3%

Turnaround Maintenance 23,300 24,573 +1,273 +5.5% 21,190 +3,383 +16.0%
Plant Modification 18,100 15,017 -3,082 -17.0% 8,578 +6,438 +75.1%
Plant Construction 10,900 5,063 -5,836 -53.5% 2,914 +2,148 +73.7%
Engineering 64,900 58,144 -6,755 -10.4% 43,712 +14,432 +33.0%
Other Business 100 71 -28 -28.3% 76 -5 -6.6%
Total 65,000 58,216 -6,783 -10.4% 43,789 +14,426 +32.9%
5-Year Summary of Net Sales Net sales increased 14,400 million yen YOY.
(Unit: 100 millions of Yen) The decrease of 6.7 billion yen from the announced figure as of September
600 582 26, 2019 was due to the unification of account processing methods and a
planned sales projects shifting from Q2 to Q3 and beyond.
51
【Daily Maintenance】
500
465 451 (1) Increased from the announced figure
444 438
34 150
28 【Turnaround Maintenance】
46 29
400 Plant Construction (1) While net sales for some large turnaround maintenance work was shifted
117 106 to the second half, turnaround maintenance increased from the
86
101 Plant Modification announced figure due to factors such as additional work, etc.

300
Turnaround 【Plant Modification】
246 Maintenance (1) Decreased due to such factors as the shifting of net sales to the second
Daily Maintenance half of the fiscal year and sales planned for Q2 being calculated from the
206 210 212 second half onward as part of efforts to unify account processing methods
200 190
based on the percentage of completion method.

【Plant Construction】
100 (1) A portion of large construction project sales to be calculated in Q2 were
135 shifted to the second half of the fiscal year.
107 108 106 110 (2) Decreased due to such factors as the shifting of net sales to the second
half of the fiscal year and sales planned for Q2 being calculated from the
0 second half onward as part of efforts to unify account processing methods
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019
© RAIZNEXT Corporation. All rights reserved.
based on the percentage of completion method. 6
5. Outstanding Contracts (Consolidated)
【5-Year Summary of outstanding Contracts】
(Unit: millions of Yen)
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019

Daily Maintenance 2,007 1,460 1,585 2,373 4,231

Turnaround Maintenance 4,112 12,861 4,730 12,218 13,306
Plant Modification 11,321 10,545 12,087 11,837 24,742
Plant Construction 9,689 4,594 3,453 3,842 30,660
Total 27,130 29,462 21,857 30,273 72,942
(Unit: 100 millions of Yen)

800
729

700

600
307

500

400 Plant Construction

295 303
271 Plant Modification
300 38 247
46 219 Turnaround
97 118
Maintenance
200 105 35 Daily Maintenance

113 121 133

100 122
129
41 47
20 15 16 24 42
0
Q2 Q2 Q2 Q2 Q2
FY2015 FY2016 FY2017 FY2018 FY2019
© RAIZNEXT Corporation. All rights reserved. 7
6. Gross Profit (Consolidated)

(Unit: millions of Yen) Gross Profit Gross Profit Margin

8,000 13.0%
12.7% 7,569 Gross profit was 7,560 million yen, an increase of
12.2% 14.0% 36.1% YOY.
11.6% 5,561
7,000 10.9% 5,490
5,400 An increase of 26.2% over 6.0 billion yen, an
4,842
12.0% announced figure as of September 26, 2019.
6,000
Gross profit margin rose 0.3 points to 13.0% from
10.0% 12.7% YOY, and an increase of 3.8 points from
5,000 margin of 9.2% of announced figure as of September
26, 2019.

8.0%
4,000 Factors:
Boost in gross profit due to merger.
6.0%
3,000 We aimed for continuous cost-reduction and secured
revenue through on-site efforts and optimization,
achieving improvements such as reinforced profit
4.0% management, higher operation efficiency, and
2,000
reduced indirect costs in spite of the concentration
on turnaround maintenance and increased personnel
2.0% expenses resulting from labor shortage conditions.
1,000
The completion of large projects with low profitability
for which sales were expected in the first half has
been shifted to the second half.
0 0.0%
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019

© RAIZNEXT Corporation. All rights reserved. 8

7. Operating Income (Consolidated)

(Unit: millions of Yen)

Operating Income Operating Margin

8.2%
4,500 7.8%
7.2%
7.6% 3,588 4,202
3,527 SG&A increased as a result of the merger,
3,520
4,000 8.0%
6.8% with special costs of 650 million yen
3,012 expended as a result of the merger.
3,500 There was also an increase resulting from
the consolidation of the new subsidiary
companies, 3.36 billion yen.
3,000 6.0%

Operating income was 4.2 billion yen, an

2,500 increase of 17.1% YOY.

2,000 4.0% An increase of 55.6% over 2.7 billion yen, an

announced figure as of September 26, 2019.
1,500
Operating income margin fell 1.0 point to
1,000 2.0% 7.2% from 8.2% YOY, while it was an
increase of 3.0 points from the margin of
4.2% of announced figure as of September
500 26, 2019.

0 0.0%
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019

© RAIZNEXT Corporation. All rights reserved. 9

8. Non-operating Profit and Losses / Ordinary Profit

【 Non-Operating Profit and Losses 】 【Ordinary Profit】

(Unit: millions of Yen)

Ordinary Profit Ordinary Profit Margin

8.5%
8.2%
(Unit: Millions of Yen) 5,000
3,698
3,706 9.0%
7.4%
Q2 FY2018 Q2 FY2019 YOY 4,500
7.2%
4,332 8.0%
6.4% 3,371
【 Non-Operating Income 】 4,000 2,855
7.0%
Interest Income 1 2 +0 3,500
6.0%
Dividends Received 65 69 +4 3,000
Rents Received 45 46 +0 5.0%
2,500
Other 38 61 +22 4.0%
2,000
Total 151 179 +28 3.0%
1,500
【 Non-Operating Expenses 】
2.0%
1,000
Interest Expenses 2 5 +3
500 1.0%
Foreign exchange losses 17 25 +8
Other 13 18 +4 0 0.0%
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019
Total 32 49 +16
Ordinary profit was 4.33 billion yen, an increase
【 Non-Operating Profit and Loss 】 118 130 +11 of 16.9% YOY.

An increase of 49.4% over 2.9 billion yen, an

announced figure as of September 26, 2019.

Ordinary profit margin fell 1.1 points to 7.4%

from 8.5% YOY, while it was an increase of 2.9
points from the margin of 4.5% of announced
figure as of September 26, 2019.

© RAIZNEXT Corporation. All rights reserved. 10

9. Extraordinary Profit and Losses / Net Income

【Extraordinary Profit and Loss】 【Profit attributable to owners of parent】

(Unit: millions of Yen)
Profit attributable to owners of parent

Profit attributable to owners of parent

3,000 Margin 4.8% 7.0%
2,796
(Unit: Millions of Yen) 5.5% 5.6%
2,470 6.0%
Q2 FY2018 Q2 FY2019 YOY 2,500 2,449
4.6%
【 Extraordinary Profit 】 2,143
5.0%
Gain from Sale of Fixed Assets 1 0 -1 2,000
3.6%
Gain on Bargain Purchase 5,531 +5,531 1,613 4.0%

Total 1 5,531 +5,530 1,500

【 Extraordinary Loss 】 3.0%

Loss from Sale of Fixed Assets 0 4 +4 1,000

2.0%
Loss on Retirement of Fixed Assets 0 9 +9
Total 0 13 +13 500
1.0%
【 Extraordinary Profit and Loss 】 1 5,517 +5,516
0 0.0%
Q2 FY2015 Q2 FY2016 Q2 FY2017 Q2 FY2018 Q2 FY2019
● Gain on bargain purchase of 5.53 billion yen
Note: The figures for Q2 FY2019 in the above graph indicate profit
was calculated as extraordinary profit resulting attributable to owners of parent excluding gain on bargain purchase.
from the merger
Profit attributable to owners of parent was 8.32 billion yen, a
increase of 240.0% YoY. Profit attributable to owners of parent
margin was 14.3%.

Profit attributable to owners of parent, excluding gain on bargain

purchase, was 2.79 billion yen, an increase of 14.2% YoY.

An increase of 51.1% over 1.85 billion yen, an announced figure as

of September 26, 2019. Profit attributable to owners of parent
margin was 4.8%.
Rose by 2.0 points from profit margin of 2.8%, an announced figure
as of September 26, 2019.
© RAIZNEXT Corporation. All rights reserved. 11
10. Consolidated Balance Sheet (Consolidated)

(Unit: Millions of Yen)

Q2 FY2018 FY2018 Q2 FY2019 Change Q2 FY2018 FY2018 Q2 FY2019 Change
Results Percentage Results Percentage Results Percentage Results Percentage Results Percentage Results Percentage

【 Current Assets 】 62,576 77.8% 63,007 78.6% 79,284 77.8% +16,276 【 Current Liabilities 】 32,075 39.9% 29,845 37.2% 33,528 32.9% +3,682

Cash Deposit 8,820 11.0% 16,954 21.2% 5,605 5.5% -11,348 Trade Payables 26,657 33.2% 23,719 29.6% 24,751 24.3% +1,031

Trade Receivable 41,510 51.6% 39,850 49.7% 52,798 51.8% +12,948 Short-Term Debt 233 0.3% 205 0.3% 243 0.2% +38
Disbursement of Advances Received
12,045 15.0% 6,020 7.5% 17,893 17.6% +11,872
on Uncompleted Contracts 1,445 1.8% 535 0.7% 1,043 1.0% +508
Uncompleted

Other 199 0.2% 182 0.2% 2,987 2.9% +2,804 Other 3,740 4.6% 5,385 6.6% 7,489 7.4% +2,103

【 Fixed Assets 】 17,815 22.2% 17,147 21.4% 22,660 22.2% +5,512 【 Fixed Liabilities 】 2,202 2.7% 2,321 2.9% 3,984 3.9% +1,662
Tangible Fixed
10,955 13.6% 11,069 13.8% 12,844 12.6% +1,775 Long-Term Debt 72 0.1% 53 0.1% 35 0.0% -17
Assets
Intangible Fixed Net Defined Benefit
232 0.3% 271 0.3% 1,094 1.1% +823 Liability
1,842 2.3% 1,984 2.5% 3,638 3.6% +1,654
Assets

Other Assets 6,626 8.2% 5,807 7.2% 8,720 8.6% +2,913 Other 287 0.3% 283 0.3% 309 0.3% +26

【Total Liabilities】 34,278 42.6% 32,167 40.1% 37,512 36.8% +5,344

【Total Net Assets】 46,113 57.4% 47,988 59.9% 64,433 63.2% +16,444

"Non-controlling
interests"
(819) (1.0%) (865) (1.1%) (933) (0.9%) +68

【 Total Assets 】 80,391 100.0% 80,155 100.0% 101,945 100.0% +21,789 【Total liabilities and Assets】 80,391 100.0% 80,155 100.0% 101,945 100.0% +21,789

※ Shareholder's Equity Ratio(Consolidates) 62.3%

Note:

© RAIZNEXT Corporation. All rights reserved. 12

11. Cash Flow (Consolidated)
(Unit: Millions of Yen)

FY2017 Q2 FY2018 FY2018 Q2 FY2019

Operating Cash Flow +1,856 +1,198 +9,842 -3,202

Investment Cash Flow -944 -227 -681 -7,463

Financial Cash Flow -1,991 -1,842 -1,893 -2,121

Effect of Exchange Rate Changes on
Cash and Cash Equivalents -4 -17 -23 -3
Change in Cash
and Cash Equivalents
-1,083 -888 +7,243 -12,790
Remarks
(1) There was an increase in cash and cash equivalents resulting from changes to the scope
of consolidation and the merger of 1.44 billion yen. The balance of cash and cash
equivalents at the end of September was 5.47 billion yen.
(Unit: Millions of Yen)
+12,000

+10,000

+8,000

+6,000 Operating Cash Flow

+4,000

+2,000 Investment Cash Flow

+0

-2,000 Financial Cash Flow

-4,000

-6,000

-8,000

-10,000
FY2017 Q2 FY2018 FY2018 Q2 FY2019
© RAIZNEXT Corporation. All rights reserved. 13
12. Earnings Forecast for Full-Year FY2019 (Consolidated)
(Reference)
(Unit: Millions of Yen) (Unit: Millions of Yen)
Full-Year FY2018 Results
Announced Full-Year FY2019 Forecast Comparison
(Full-Year)
figures of Percent
Percent
(As of Sept. 1st Half Full-Year announced Change(%)
Difference Change
26, 2019) figures
Results Forecast
(%)

New Contracts 162,500 101,090 166,000 +3,500 +2.2% 104,588 +61,412 +58.7%

Net Sales 140,000 58,216 140,000 +0 +0.0% 97,331 +42,669 +43.8%

Gross Profit 12,700 7,569 14,000 +1,300 +10.2% 11,984 +2,016 +16.8%

Percentage　(%) 9.1% 13.0% 10.0% +0.9% - 12.3% -2.3% -

SG&A 6,400 3,367 6,500 +100 +1.6% 4,300 +2,200 +51.2%

Percentage　(%) 4.6% 5.8% 4.6% +0.0% - 4.4% +0.2% -

Operating Income 6,300 4,202 7,500 +1,200 +19.0% 7,683 -183 -2.4%

Percentage　(%) 4.5% 7.2% 5.4% +0.9% - 7.9% -2.5% -

Ordinary Profit 6,550 4,332 7,650 +1,100 +16.8% 7,939 -289 -3.6%

Percentage　(%) 4.7% 7.4% 5.5% +0.7% - 8.2% -2.7% -

Profit attributable to
owners of parent
4,200 8,327 10,250 +6,050 +144.0% 5,225 +5,025 +96.2%

Percentage　(%) 3.0% 14.3% 7.3% +4.2% - 5.4% +1.9% -

※Note: The above differences

EPS 77.53Yen 165.83Yen 189.23Yen 111.70Yen +144.1%
and percentage changes are
values in comparison with the
Outstanding Contracts 52,693 72,942 56,193 +3,500 +6.6% full-year forecast on the left table.

© RAIZNEXT Corporation. All rights reserved. 14

13. New Contracts and Net Sales by Segment (Consolidated)
New Contracts (Unit: Millions of Yen)
Forecast figures Full-Year FY2019 Forecast Comparison FY2018 Results
(As of Sept. 26, of forecast
2019) 1st Half Full-Year figures Full-Year Difference

Daily Maintenance 29,200 15,281 30,000 +800 26,050 +3,950

Turnaround Maintenance 44,800 26,328 49,000 +4,200 44,567 +4,433
Plant Modification 46,200 29,270 45,300 -900 26,178 +19,122
Plant Construction 42,300 30,211 41,700 -600 7,791 +33,909

Engineering 162,500 101,090 166,000 +3,500 104,588 +61,412

Net Sales (Unit: Millions of Yen)

Announced Full-Year FY2019 Forecast Comparison of FY2018 Results
figures (As of announced
Sept. 26, 2019) 1st Half Full-Year figures Full-Year Difference

Daily Maintenance 28,100 13,490 29,200 +1,100 25,571 +3,629

Turnaround Maintenance 38,300 24,573 40,200 +1,900 43,813 -3,613
Plant Modification 45,100 15,017 43,100 -2,000 22,476 +20,624
Plant Construction 28,300 5,063 27,300 -1,000 5,333 +21,967

Engineering 139,800 58,144 139,800 0 97,195 +42,605

Other Business 200 71 200 0 136 +64

Total 140,000 58,216 140,000 0 97,331 +42,669

© RAIZNEXT Corporation. All rights reserved. 15

14. Financial Highlights (Consolidated)

【 New Contracts 】 (Unit: 100 millions of Yen)

【 Net Sales】 (Unit: 100 millions of Yen)
1,400
1,660 1,400

1,600
273
417 1,200
1,400
1,019
973
1,200 Plant 1,000
1,046 Construction 895
67
896 53
431
922 960 Plant Construction
1,000 916 78 453 Plant Modification 98
256
65
800 225
58
44 Plant Modification
106 Turnaround
262 270
800 Maintenance 246
246
261 600 Turnaround
245 Daily
Maintenance
Maintenance
600 402
461 438
490 Daily Maintenance
446 400 312 318
424 360
400 334

200
200
300 292
261 237 234 242 256
237 232 251

0 0
FY2015 FY2016 FY2017 FY2018 FY2019(est.) FY2015 FY2016 FY2017 FY2018 FY2019(est.)

【 Ordinary Profit 】 【Net Income 】

(Unit: millions of Yen) Ordinary Profit
Net Income
Ordinary Profit Margin (Unit: millions of Yen) Net Income Margin
9,000
7.8% 8.2% 6,000 5.4% 6.0%
5.5%
7,934 7,939 10.0% 5.0% 5,255
8,000 7,650 4.7%
4,452 3.4%
7.4% 7.4% 4.4% 4,746 4,719
5,000 5.0%
7,000 6,591 6,634
3,897
8.0%
6,000
4,000 4.0%

5,000 6.0% Note: The figures for

3,000 3.0% FY2019 (est.) in
4,000 the left graph
4.0%
indicate net
3,000 2,000 2.0% income excluding
gain on bargain
2,000 purchase.
2.0%
1,000 1.0%
1,000

0 0.0% 0 0.0%
FY2015 FY2016 FY2017 FY2018 FY2019(est.) FY2015 FY2016 FY2017 FY2018 FY2019(est.)

© RAIZNEXT Corporation. All rights reserved. 16

15. About Dividend

Basic Understanding Regarding Dividend

Our group’s businesses provide maintenance and engineering services for plants in petroleum,
petrochemical, non-ferrous metal, and industries. As such, we belong to a sector that is easily affected by
changes in private sector capital expenditure. Therefore, we believe that can increase our corporate value by
strengthening our business structure to adapt to changes in the business environment and future business
expansion, and by building a stable business base. This will help ensure future profits for our shareholders,
clients, business partners, employees, and other related parties, which shall be our basic policy.

Dividend Policy
Based on our dividend policy, we consider profit sharing with shareholders via dividends to be our highest
priority issue in management, and vow to implement a dividend policy that corresponds with our earnings,
with consideration for a constant and stable dividend payout. Therefore, after having secured internal
reserves required for strong business foundation and future business expansion, we have set a target
dividend payout ratio (consolidated) of above 40%.

Dividend Forecast for FY2019

● Year-end dividend: 35 yen (Consolidated dividend payout ratio: 40.2%)

As shown in the published materials, the company is performing well. As a result, we have revised the
forecasted dividend payout at the end of the term from 32 yen to 35 yen per share. Note that the dividend
forecast is calculated excluding gain on bargain purchase, profit and loss pertaining to the merger.
The consolidated dividend payout ratio was calculated as 40.2% as follows:
Consolidated dividend payout ratio = ｛Total dividend amount ÷ forecasted consolidated net income
(excluding gain on bargain purchase ) } × 100

© RAIZNEXT Corporation. All rights reserved. 17

This material includes projections based on future forecast and plans that was
available on Nov 15, 2019.
There is a possibility that these projections may be different from actual results,
affected by risks such as fluctuations in economic conditions and other uncertain
factors.

【Contact】
RAIZNEXT Corporation
27-5 Shin-Isogocho, Isogo-Ku, Yokohama-Shi, Kanagawa, 235-0017, Japan
Budget Control & IR Group Corporate Planning Department
Phone. +81-45-758-1953 Facsimile. +81-45-758-1999
E-Mail：[email protected] / URL：https://www.raiznext.co.jp

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