as of June 7, 2024

On June 7, 2024, Nippon Air Conditioning Services Co., Ltd. established a new five-year business plan (referred to below as “the Plan”) which will begin in fiscal year 2025. An overview of the Plan is given below.

The Group recognizes its purpose as contributing to the sustainability of customer businesses and enhancing the value of society as a whole.

Our long-term vision is to improve the happiness of all stakeholders in a sustainable manner.

To realize this long-term vision, we are striving to create social value by undertaking business activities in line with our mission and management philosophy: bringing together the technological capabilities and human resources to maintain optimal environments and give our clients peace of mind through top quality service.

Our basic management policy is to create economic value through these efforts.

This plan is intended to serve as a set of values for the Group to realize its long-term vision, and we will pursue expanding corporate value through its steady implementation

To realize this long-term vision, we are striving to create social value by undertaking business activities in line with our mission and management philosophy: bringing together the technological capabilities and human resources to maintain optimal environments and give our clients peace of mind through top quality service.

Our basic management policy is to create economic value through these efforts.

This plan is intended to serve as a set of values for the Group to realize its long-term vision, and we will pursue expanding corporate value through its steady implementation.

To achieve our goal of contributing to the sustainability of its customer businesses, the Group believes it must steadily expand our building facilities maintenance and building facilities construction business, which plays an important complementary role, and to build stronger management foundations.

In addition to addressing the issues that must be addressed, we will focus on a growth strategy (strengthening competitive advantages) that strengthens corporate value without mistaking the means for the ends. We will enhance our corporate governance to undertake management with the medium-to-long-term perspective in mind.

We believe the basic Group policy stance—demonstrating integrity in all we do, sparing no effort to achieve better results, engaging in good-faith dialogue with all stakeholders until all are satisfied, and achieving our goals with the conviction to see them through—is the right one. We will enhance compliance to further promote our corporate culture of doing things fairly.

To realize this long-term vision, we are striving to create social value by undertaking business activities in line with our mission and management philosophy: bringing together the technological capabilities and human resources to maintain optimal environments and give our clients peace of mind through top quality service.

Our basic management policy is to create economic value through these efforts.

This plan is intended to serve as a set of values for the Group to realize its long-term vision, and we will pursue expanding corporate value through its steady implementation.

* Employee Engagement Score…A KPI that measures employee engagement (whether they possess a sense of contribution to the organization and its work and are actively engaged) as opposed to the conventional measure of employee satisfaction (with work, promotions, pay, etc.)

* Core Technical Capability Index…A KPI reconstructed from the previous Technical Capability Index (number of official technical qualifications obtained × qualification points ÷ number of technical employees) that uses official qualifications considered to better correlate with the growth of our core business

* Facilities with special environments…Hospitals and research facilities, manufacturing plants, etc., and other special facilities

* Cost of equity…Assumed based on dialogue with investors, etc.

The Group will intensify its focus on a growth strategy (strengthening competitive advantages) that expands corporate value and moves us toward our long-term vision.

We believe we can maintain and improve capital productivity by accelerating the enhancement of human capital capable of providing quality services and achieving sustainable growth through our core businesses.

As an indicator for tracking sustainable growth through our core businesses, we will strive to maintain an operating profit margin of about 6% (average for the period) based on the assumption of sustainable net sales growth.

In addition, as an indicator of management based on an awareness of capital efficiency, we will strive to create a sustainable positive equity spread achieved by targeting profits, aiming to maintain a return on equity of around 10% (average for the period), which exceeds the assumed cost of equity of around 8%, based on dialogue with investors and other factors.

The Group emphasizes the importance of returning profits to shareholders, based on the premise that the sustained growth of our core businesses will increase profits.

We also see the stable return of profits as a key management issue. We will determine the distribution of profits while accounting for the need to enhance internal reserves to strengthen our management foundations.

The minimum annual dividend per share will be set to 40 yen with the goal in mind of realizing stable return of profits to shareholders.

At the same time, we have established a basic policy of striving to achieve a consolidated dividend payout ratio of around 50%. Alongside our target for return on equity, this will lead to sustainable returns to shareholders, with a target dividend on equity ratio of approximately 5%.

* This page's content is based on various conditions. We are unable to completely guarantee the plan's implementation and projected value.