[Obayashi] Value Creation Process — Six Capitals, Five Business Domains

Note: This article is a factual summary based on Obayashi Corporation’s published IR material (Investors’ Guide, June 2026 edition). It is not a recommendation to buy or sell any security. Figures are as of the publication of the source material. Investment decisions are your own responsibility.

Page 8 of the Investors’ Guide 2026 is Obayashi’s own value-creation model — a single diagram that takes six capitals as inputs, runs them through five business areas, and shows what comes out the other end for each stakeholder group. It follows directly from the philosophy and strengths set out one page earlier, and it’s a useful map for the rest of the guide too, since the same five-business split and the same stakeholder list both reappear in later sections. The diagram is arranged left to right as Input, then the five business areas under the heading “Strengths Across Five Business Areas,” then Output — a straightforward flow that is easy to lose sight of once the guide moves into segment-by-segment detail, which is exactly why it is useful to state plainly here.

Input: six capitals behind the business

The guide frames Obayashi’s solid business foundation as six forms of capital, a structure common to integrated corporate reporting, applied here to the group’s specific businesses.

Capital	Description
Financial Capital	Solid financial position
Manufactured Capital	Domestic and global group network
Intellectual Capital	A high degree of technological prowess based on honest craftsmanship
Human Capital	Over 8,000 world-class construction engineers
Social and Relationship Capital	Approx. 1,250 Obayashi Rin-yu-kai member companies
Natural Capital	Environmentally responsible business activities

Two of these six line up directly with claims made on the preceding Strengths page: the 8,000-plus engineers under Human Capital, and the roughly 1,250-company Obayashi Rin-yu-kai partner network under Social and Relationship Capital. Intellectual Capital, too, is described using the same “honest craftsmanship” language as the group’s stated pledge, tying the six capitals explicitly back to that founding philosophy rather than presenting them as a separate framework.

Strengths across five business areas

Those six capitals feed into the same five businesses used throughout the guide, each with its own stated competitive strength.

Business	Stated strength
Domestic Construction (Building Construction and Civil Engineering)	Competitive advantage supported by a high degree of technological prowess and a robust supply chain
Overseas Construction	Accounts for approx. 30% of consolidated net sales, with high capital efficiency
Real Estate Development	Development of properties for lease, leveraging synergies with the building construction business
Green Energy	Diverse power generation assets and extensive project experience
New Business Initiatives	Exploration and launch of new businesses

This is the same five-way split behind the segment sales and profit figures in the company overview — that page lays out the numbers behind each business, this page states the qualitative case for each one. Read side by side, the two overseas-facing lines are worth noting: overseas construction is described here mainly in terms of scale and capital efficiency, while real estate development’s stated strength is synergy with building construction rather than independent scale, consistent with development being the smaller but higher-margin of the two.

Output: value delivered to stakeholders

On the output side, the guide names five stakeholder groups and what the business is meant to deliver to each — the same count as the five business areas feeding into it, which looks like a deliberate parallel rather than a coincidence.

Stakeholder	Value delivered
Clients	Safe, secure, and comfortable buildings and infrastructure
Shareholders and Investors	Profit growth; stable, long-term dividends
Employees	A rewarding work environment
Suppliers	Building strong partnerships
Environment and Local Communities	Contributing to society; reducing environmental impact

The line for shareholders and investors — profit growth plus stable, long-term dividends — is not just a slogan here. It is the stated operating principle behind the group’s dividend-on-equity approach to capital policy and shareholder returns, covered later in the guide. The environment and local communities line also connects forward: reducing environmental impact is the stated output most directly tied to the green energy business among the five inputs above it, even though the diagram itself does not draw a direct line between any single capital or business and any single stakeholder outcome.

Seen as a whole, the diagram is a compact promise: the six capitals on the input side, and the five business strengths in the middle, exist in this framework specifically to produce the five outcomes on the output side — including the one that matters most directly to readers of this guide. Every numbered chapter that follows, from the segment breakdowns to the capital policy pages, is effectively an expansion of one box in this single diagram.

This article is part of our complete breakdown of the Obayashi Investors’ Guide 2026. See the hub article for the full series.

Note: This article is a factual summary based on Obayashi Corporation’s published IR material (Investors’ Guide, June 2026 edition). It is not a recommendation to buy or sell any security. Figures are as of the publication of the source material. Investment decisions are your own responsibility.