(231A) Cross E Holdings - New Analyst Report 8/30

Cross E Holdings Group consists of Cross E Holdings and its consolidated subsidiaries, Huis Ten Bosch Technology Center and Nishi Nippon Engineering. HIS (9603 Tokyo Prime) holds 70.6% of Cross E Holdings shares and is the parent company of Cross E Holdings.

Cross E Holdings is a pure holding company established in November 2022 as the parent company of Huis Ten Bosch Technology Center. Huis Ten Bosch Technology Center was established in September 1995 as the facility division of Huis Ten Bosch Co., Ltd. (Sasebo City, Nagasaki Prefecture), which operates a theme park replicating the townscape of medieval Europe, and has a history of nearly 30 years.

In addition, in December 2017, the Huis Ten Bosch Technology Center acquired all the shares of Nishi Nippon Engineering and became a subsidiary. However, with the establishment of Cross E Holdings in November 2022, Nishi Nippon Engineering became a subsidiary of Cross E Holdings. The acquisition of Nishi Nippon Engineering as a subsidiary has accelerated the growth pace of the Cross E Holdings Group.

The Cross E Holdings Group's main businesses are construction and machinery installation works and facility management. The construction and machinery installation works account for about 3/4 of the sales revenue for the fiscal year 23/9, while the facility management accounts for about 1/4.

The main sales outlets of Cross E Holdings Group are Huis Ten Bosch, JFE Holdings (5411 Tokyo Stock Exchange Prime), and JFE Engineering, a subsidiary of JFE Holdings. For Huis Ten Bosch, it accounts for 35.9% of the sales revenue in the 23/9 period, and for JFE Engineering, it accounts for 23.0%. The sales revenue for Huis Ten Bosch includes both construction and machinery installation projects and facility management business, while the sales revenue for JFE Engineering is related to construction and machinery installation projects.

In the 23/9 period, the percentage of sales revenue from projects with local governments and public organizations as the final customers accounted for 48.6%, which is almost equal to the sales revenue from private sector, including Huis Ten Bosch.

Huis Ten Bosch used to be a consolidated subsidiary of HIS, but HIS transferred all its shares held to an investment fund at the end of September 22, no longer being a related party to Cross E Holdings.