■ Medium-term plan

1. Corporate Philosophy and Market Environment Hachimoto Corporation Holdings <7570> aims to contribute to society with the corporate philosophy of 'providing a comfortable life through the distribution and services of environmental equipment products'. It sets a vision of 'pursuing the three bests to contribute to seven stakeholders*' as 'the best coordinator of equipment', 'the best partner in distribution', and 'the best company as a corporation'. For clients and construction companies who directly acquire the products, it proposes optimal products as the 'best coordinator of equipment' through the members-only website 'OPS' and the online catalog 'e設備NET'. For suppliers and sales partners, it aims for coexistence and mutual prosperity as the 'best partner in distribution' by exerting purchasing agent and sales agent functions. For shareholders, it aims to be a 'best company as a corporation' by expanding stock prices and dividends per share through the expansion of workplace environment such as job satisfaction and career development for employees, and by contributing to society through initiatives such as addressing environmental issues. To realize these corporate philosophy and vision, it implements growth strategies such as 'the three full', the network strategy 'Future Association activities', the evolution activities for improving productivity, and the 'HSDGCG activities' unique to the company that contribute to society and local communities.

Hachimoto Corporation Holdings <7570> aims to contribute to society with the corporate philosophy of 'providing a comfortable life through the distribution and services of environmental equipment products'. It sets a vision of 'pursuing the three bests to contribute to seven stakeholders*' as 'the best coordinator of equipment', 'the best partner in distribution', and 'the best company as a corporation'. For clients and construction companies who directly acquire the products, it proposes optimal products as the 'best coordinator of equipment' through the members-only website 'OPS' and the online catalog 'e設備NET'. For suppliers and sales partners, it aims for coexistence and mutual prosperity as the 'best partner in distribution' by exerting purchasing agent and sales agent functions. For shareholders, it aims to be a 'best company as a corporation' by expanding stock prices and dividends per share through the expansion of workplace environment such as job satisfaction and career development for employees, and by contributing to society through initiatives such as addressing environmental issues. To realize these corporate philosophy and vision, it implements growth strategies such as 'the three full', the network strategy 'Future Association activities', the evolution activities for improving productivity, and the 'HSDGCG activities' unique to the company that contribute to society and local communities.

*Seven stakeholders: clients, customers (secondary wholesalers and construction companies), shareholders, contractors, suppliers, employees, and society.

The market environment surrounding Hachimoto Corporation Holdings has undergone significant changes compared to the pre-COVID-19 era, such as changes in the external environment and amendments to various regulations and systems, and it is expected to continue to change further in the future. For this reason, the company is actively implementing measures, but the 'reduction of the 4th category special case of the Building Standards Act' has a significant impact on small-scale construction companies. This is because from April 2025, among the buildings that have been exempted from examination as 'building type 4' under Article 6, Paragraph 1, Item 4 of the Building Standards Act, wooden two-story buildings and single-story wooden buildings (with a total floor area of over 200m2) are no longer exempted from examination, and submission of structural regulations is required. Only house makers and builders with an annual record of over 100 buildings have the ability to perform building structural calculations, and it is expected that smaller construction companies will not be able to perform structural calculations due to physical limitations. In addition, the amendment to the Energy Conservation Act requires all buildings to comply with the 'energy conservation standards', and strict examinations will be conducted on the energy efficiency of buildings. Therefore, it is predicted that the burden on small-scale construction companies, which supply more than one-third of the total housing, will increase. The company has started calculation and design business in Thailand in response to these regulatory changes and plans to act as a proxy for structural calculation tasks for trading partners.

(Author: FISCO guest analyst Nobumitsu Miyata)