TOYOKOH (341A) Investor presentation summary

Financial performance and outlook

• Sales achievement rate for FY2026/3 was 104.5%, with a third consecutive year of revenue and profit growth expected in FY2027/3, driven by CoolLaser equipment sales and SOSEI's stable foundation.

• Gross profit margins for both SOSEI and CoolLaser remain near 40%, with SOSEI outperforming the construction industry average.

• Order backlogs for both CoolLaser and SOSEI increased, supporting continued revenue growth into FY2027/3.

• Personnel and commission expenses are rising due to business expansion and increased hiring.

• Assets are being utilized for working capital, capital expenditures, and strategic partnerships, with significant increases in accounts receivable and inventory for CoolLaser.

Business model and growth strategy

• CoolLaser targets preventive maintenance for aging infrastructure, offering a patented, high-output, outdoor-capable laser system that reduces waste and life-cycle costs.

• SOSEI uses a proprietary three-layer resin spray to reinforce and insulate roofs, enabling energy savings and solar panel installation.

• CoolLaser is expanding production capacity, aiming for 120 units per year by FY2030/3, and has begun overseas sales, including its first order in the Middle East.

• SOSEI is leveraging decarbonization trends, expanding its processing system, and targeting leadership in the domestic B2B roof maintenance market.

• Both businesses are scaling through partnerships, standardization efforts, and industry certifications.

Market positioning and competitive advantages

• CoolLaser holds patents in Japan and the US, with unique technology enabling fast, clean rust and paint removal, and minimal environmental impact.

• The company is the only construction industry firm selected for the JPX Start-up Growth 100 Index, reflecting strong growth and investor interest.

• CoolLaser's environmental benefits include a 98% reduction in industrial waste and significant greenhouse gas savings compared to traditional methods.

• SOSEI's method is patented and offers a well-balanced, cost-effective alternative to traditional roof replacement or metal covers.

• The company is actively involved in industry standardization and human resource development, with a growing network of certified operators and member companies.