Investor Relations

Message from The President

[Top Interview] OCHD Ltd.　Hidenori Nozaki, President

Boosting Earnings for 12th Straight Year

Driving steady operational progress to create social value that is central to our vision for 2030 and position ourselves for sustainable growth

Message to Shareholders

I am delighted to present our 18th Business Report, for fiscal 2023, ended September 30, 2023. I wish to take this opportunity to thank our shareholders for their ongoing support and encouragement for our efforts over the past year. As we stated in a notice upon obtaining a Special Investigation Committee report dated October 10, 2023, we received a report detailing cost reallocations and other inappropriate accounting practices at consolidated subsidiary Oriental Consultants Co., Ltd. and other subsidiaries. We apologize to shareholders and other investors and other stakeholders for the inconvenience and concerns resulting from these practices. We acknowledge the committee’s root cause findings and recommended preventive measures. After thorough consideration at a meeting on October 20, our Board of Directors resolved to implement these measures at the parent company and consolidated subsidiaries. We will do our utmost to prevent such an issue from recurring to regain the trust of all internal and external stakeholders, and would appreciate your understanding and cooperation for our efforts.

Achieving 12th Consecutive Year of Earnings Growth on Solid Orders in Domestic and Overseas Markets

In Japan, the implementation of public works projects under the government’s five-year plan to make the nation more disaster-resilient continued to underpin orders for tangible and intangible measures to prevent and mitigate disasters and maintain and manage roads, rivers, ports, and other infrastructure. Domestic orders in the year under review were ¥51,385 million, up 6.6% from the previous corresponding period.
In overseas markets, demand was again solid for infrastructure development in developing countries. This favorable environment resulted in orders rising 10.5%, to ¥31,041 million.
Total orders for the year accordingly increased 8.0%, to ¥82,426 million. With domestic and overseas markets remaining firm, net sales advanced 1.1%, to ¥78,154 million. Operating income increased 4.6%, to ¥3,883 million. Ordinary income declined 1.8%, to ¥4,258 million. Net income attributable to owners of parent climbed 4.1%, to ¥2,831 million. Net income attributable to owners of the parent was ¥2,831 million (up 4.1%).

Creating New Social Value by Integrating and Managing Businesses and Digitizing Processes to Become a Social Value Creator

Creating social value is a central goal of our vision for 2030. We accordingly formulated basic strategies to drive change, pursue innovations, and meet new challenges. We will create social value by integrating and managing our businesses and digitizing, processes.
Priority business areas in the domestic market are infrastructure development and maintenance, water management and maintenance, disaster prevention, transportation, and regional revitalization. In keeping with our business strategy, we will endeavor to build a unique and dominant corporate group by creating social value, cultivating sustainable area management around Japan, and transforming our business model.
In infrastructure development and maintenance, we helped organize a bridge maintenance and management workshop in the town of Tawaramoto, Nara Prefecture, to help improve the skills of local builders. We surveyed participants to gather feedback and gauge their interest in participating in bridge maintenance and management projects. We will use the findings to enhance future initiatives.
In water management and maintenance, we developed a system to visualize constantly changing risks of landslides by employing a numerical elevation model and short-time precipitation forecasts from the Japan Meteorological Agency. We started assessing this system in Hachijo, Tokyo.
In transportation, we collaborated with the town of Kohoku in Saga Prefecture, to demonstrate new traffic safety measures that link smart cameras and LED billboards to verify speed reductions. We will keep developing technologies and conducting demonstrations to further enhance the effectiveness of such reductions with a view to implementations that would enhance road safety.
As part of regional revitalization, we set up the Hibikinada Camp Base in Hibikinada Green Park in Kitakyushu. The facility allows people to play in the park and stay overnight. We will draw on that initiative as an opportunity to attract more residents and visitors to the area as part of community revitalization efforts.
Internationally, we will keep expanding comprehensive overseas businesses. We have prioritized five business areas to become more competitive abroad. These are the Private Sector, Smart City Development, Operations and Maintenance, Digital Transformation, and Business Investment businesses.
In the Private Sector business, we started building a land-based Atlantic salmon farming and processing facility in a design and construction collaboration jointly with Yüksel Proje A.S. of Turkey. This facility aims to help overcome possible food shortages by stabilizing supplies of fresh, nutritious, and safe fish while reducing the impact of aquaculture on the sea.
In Digital Transformation business, we concluded a memorandum of understanding with Silverdab Corporation in the Philippines to collaborate further in building and construction information modeling. We will step up this partnership to keep driving progress in developing countries by creating high-quality, reliable, sustainable, and resilient infrastructure with strengthening our collaboration.

Steadily Deploy the 2030 Vision and Medium-Term Management Strategy and Contribute More to Creating Affluent Lives and Dreams for People All Over the World

I would like to reiterate our apologies for the inappropriate accounting practices mentioned at the start of this message. We will do our utmost to prevent a recurrence.
We will push forward with our 2030 Vision and Medium-Term Management Strategy. We aim to pursue sustainable growth to become a social value creator, stepping up efforts to fulfill our mission of creating affluent lives and dreams for people all over the world.