A Message from the President

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I would like to take this opportunity to thank our shareholders and investors for their continued support and consideration.
        The Japanese economy is benefiting from measures by the Japanese government as the labor market and personal income improve. However, caution is needed concerning the economic outlook due to the impact of trade problems on the world economy, the future of China’s economy, overseas economic trends, policy-related uncertainties, and financial market volatility.
        In Japan’s construction industry we have seen abatement of Olympics-related demand and weakening of public works spending. Foreign exchange rate movements may raise the cost of building materials and Japan’s shortage of workers is likely to raise the cost of labor. As a result, the operating environment remains severe.
        The Group’s Sixth Medium-term Management Plan started in FY 2017. The plan’s fundamental strategies were changing how people work by making investments in human resources and ICT and providing customers with even more advanced life cycle total solutions.
        The use of cloud services has enabled a system whereby work can be performed anywhere at any time, and information sharing applications used at construction sites have led to greater efficiency. We also improved communications with cooperating companies and promoted the active participation of women. These measures accomplished favorable results. In consequence, we obtained “Two-star” certification under the “Act on Promotion of Achievement in Women’s Professional Life.”
        In “Enhancement of LC total solutions,” we strengthened post-construction follow-up systems, sought out renovation business for renewal of ageing building facilities, made use of subsidies for CO2 reduction at local governments, and reinforced capture of a variety of other projects.
        In this final fiscal year of the Sixth Medium-term Management Plan, we will continue working on the many initiatives based on the two fundamental strategies while improving capital efficiency and assuring steady returns to shareholders. And as measures to secure orders and profit on completed contracts, we will further stress expansion of renovation work for optimum repair proposals corresponding to the condition of building facilities we have completed, as well as working to strengthen risk management at the construction stage.
        Thank you for your support as we continue to take the actions needed to accomplish our goals.

Yoshiharu Nishimura
President and Representative Director
Hibiya Engineering, Ltd.

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