Review of the medium-term management plan "RISE ITOKI 2023"

The Itoki Group has positioned the period from 2021 to 2023 as a phase for improving its structure in order to break away from low profitability and establish a foundation for sustainable growth into the future. In order to build a profitable structure, the Group has set the catchphrase "RISE ITOKI 2023" and set its goals as "becoming a highly profitable company with a resilient structure" and "leading the creation of a post-COVID “Work Environment”," and has established a medium-term management plan to evolve into a company that continues to create and provide high value.

As a result of the response to COVID-19, “Work Environment” is undergoing a major turning point, and office environment and office design are recognized as management issues as human capital investments. As a result, we have been able to capture strong demand for office space, including new construction and relocations, secondary relocations, and renovation projects.
We also implemented seven restructuring projects, which produced notable results in terms of business performance and financial foundation.
As a result, sales and profits at each stage reached new record highs, and we were able to significantly exceed the profit targets set out in our initial medium-term management plan.

Since the project began in 2020, the effects of these efforts have been steadily apparent, with operating profit and operating profit margins improving significantly from 1.7 billion yen (1.5%) in 2020 to 8.5 billion yen (6.4%) in 2023. ROE has also improved significantly from -0.5% in 2020 to 11.3% in 2023. Furthermore, based on this project, we have been able to achieve a PBR of over 1 by early disclosure of our efforts to "achieve management that is conscious of capital costs and stock prices" and working steadily on this.