TSE Prime (Securities Code: 1941)

Financial Results Briefing for theSecond Quarter (Q2) of the Fiscal YearEnding March 31, 2024 (FY2023)
December 6, 2023

Presenter:

Takafumi Shigeto
Representative Director and President

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

Contents

Briefing Topics
1

FY2023 Q2 Performance2

FY2023 Earnings Forecasts

3

Medium-Term Management Plan 2024 [FY2021-2024] Initiatives

4

CHUDENKO Group 2030 Vision5

Reference (Company Profile, etc.)1

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1. FY2023 Q2 Performance2

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FY2023 Q2 Performance (Business Environment and Group Overview)Construction industry
 Public capital investment remained firm and private capital investment is picking up.
 The price of energy and raw materials remains high due to the prolonged situation in
Ukraine and exchange rate fluctuations.

Group Overview
 Transitioned to a company with an audit and supervisory committee with the aim ofenabling swift and decisive decision-making and execution of business execution, as
well as further enhancing corporate governance.
 Withdrew from Taiwan offshore wind power generation business, which posted a large
loss at the end of the previous fiscal year.

3

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FY2023 Q2 Performance (Income statement, consolidated)
Recorded a year-on-year increase in both sales and profit.
 Increase in net sales of ¥3.1 billion (up ¥1.9 billion for Chudenko parent and up ¥1.2 billion for consolidated
subsidiaries).
 Increase in operating profit of ¥0.3 billion (up ¥0.7 billion for Chudenko parent and down ¥0.3 billion forconsolidated subsidiaries).

(Billions of yen)

Consolidated
Performance

FY2022 Q2FY2023 Q2ChangeYear on year

Sales

79.5

82.6

3.1

104%

Cost of sales

70.8

73.2

2.4

103%

8.6 （11.4%）

9.4

0.7

109%

7.5

7.9

0.3

105%

Gross profit（10.9%）

Selling, general andadministrative
expenses
Operating profit（1.4%）

1.0 （1.8%）

1.4

0.3

136%

Ordinary profit（3.0%）（1.6%）

1.4
0.5

-0.9
-0.7

60%

Profit attributable toowners of parent

2.4 (1.8%)
1.3 (0.7%）

44%* Figures in ( ) are profit margins.

4

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FY2023 Q2 Performance (Quarterly period: Consolidated) Business performance continued to decline in FY2023 Q1
 Improvement trend in Q2
Q1 (April-June)

Q2 (July-September)

37.6

35.5

33.9

Gross profit(Profit margin)

6.1

4.2

3.8

(12.4%)
Operating profit(10.9%)

0.2

45.0

43.9

43.1
Net
sales

(Billions of yen)

(14.2%)

3.4

6.0

4.7

(13.4%)(10.8%)(9.0%)

2.3

0.1

2.0

0.9

-0.5

FY2021

FY2022

FY2023

FY2021
5

FY2022

FY2023Copyright©2023 CHUDENKO Corporation. All Rights Reserved

FY2023 Q2 Performance (Main factors for change in year-on-year net sales, consolidated)
Breakdown of year-on-year change in net sales (+3.1 billion)
Consolidated sulbsidiaries(+1.2 billion)

Chudenko parent (+1.9 billion)
IndoorElectrical

AirConditioning
PipingInformation
Communiction
Equipment

Distribution
Line

Underground
Power Line for Chugoku region Urban areas
Overseas
Transmission/D subsidiaries (7) subsidiaries (3) subsidiaries (4)istribution

+3.5
+0.8
79.5

+0.5

+0.5

+0.8

+0.4

82.6

-0

-3.5

1,844億円

FY2023 Q2
net sales

FY2022 Q2
net sales

6

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FY2023 Q2 Performance (Breakd Main factors for change in year-on-year operating profit, consolidated)
Breakdown of year-on-year changes in operating profit (+0.3 billion)
Chudenko parent (+0.7 billion)

Consolidated basis (-0.3 billion)

Operating profit by division
General WorkBusiness+0.7

Operating profit
Electric Power of consolidated
subsidiaries
Business

Amortization of
goodwill, etc.

+0
+0
-0.3

1.0

1.4
FY2023 Q2operating profit

FY2022 Q2operating profit

7

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FY2023 Q2 Performance (Main factors for change in year-on-year ordinary profit, consolidated)

8

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FY2023 Q2 Performance (Balance sheet, consolidated)
As of March 31, 2023

As of September 2023

(Billions of yen)

ChangeMain factors for change
Accounts receivable from completed
construction contracts and other, -20.5

Current assets

118.9

103.6

-15.3

Non-current assets

153.5

155.7

2.2

272.5

259.4

-13.1

Current liabilities

47.3

39.7

-7.6

Accounts payable for construction contracts
and other, -7.0

Non-current
liabilities

23.0

15.7

-7.3

Liabilities associated with application of theequity method -6.8

Total liabilities

70.4

55.4

-14.9

Total net assets

202.0

203.9

Total liabilities andnet assets

272.5

259.4

-13.1

Equity ratio

73.2％

77.6

4.4

Total assets

9

Investment securities 3.0

earnings -2.2
1.8 Retained
Valuation difference on available-for-sale securities 4.0

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

FY2023 Q2 Performance (Orders received and net sales by sector, parent) Orders received was ¥104.2 billion, a year-on-year increase of ¥ 23.7 billion (mainly for Indoor Electrical Work andAir-Conditioning Piping work) Net sales was ¥6.31 billion, a year-on-year increase of ¥1.9 billion (Air-Conditioning Piping was down while Indoor
Electrical work increased)

Orders received

Net sales(Billions of yen)(Billions of yen)

49.1
40.9
FY22 Q2

FY23 Q2

FY22 Q2

104.2 (+23.7)

80.5

14.6 14.9

13.9
5.9
Air-Conditioning
Piping63.1(+1.9)

27.0

25.6

Indoor Electrical

61.2

30.5

FY23 Q2

8.8

Information
Communication
Equipment

14.7

11.2

5.0 5.6
Distribution
Line

14.414.9

2.9 3.4

2.1 2.9

Underground Power Linefor Transmission/Distribution

10

Indoor Electrical

Air-Conditioning
PipingInformation
Communication
Equipment

Distribution
Line

Underground Power Linefor Transmission/Distribution

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

FY2023 Q2 Performance (Balance carried forward by sector, parent)
 Total balance carried forward was ¥157 billion, an increase of ¥41.3 billion from theprevious year.
 Main factors of the increase: Indoor Electrical Work increased by ¥17.8 billion and AirConditioning Piping Work increased by ¥13.2 billion.
Balance carried forward(Billions of yen)

157.0
All
sectors
91.3
IndoorElectrical

58.3
23.7

AirConditioning
Piping

FY2018

100.2

101.3

66.4

62.2

23.7

24.5

FY2019FY2020

111.7

92.8
61.0
33.0

FY2021

11

115.7
74.9
38.0
24.7

FY2022

FY2023Copyright©2023 CHUDENKO Corporation. All Rights Reserved

2. FY2023 Earnings Forecasts

12

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FY2023 Earnings Forecasts (Income statement, consolidated)
Expecting a year-on-year increase in sales and profits.
 Net sales expected to increase by ¥15.9 billion (¥10.7 billion increase for Chudenko parent, ¥5.2
billion increase for consolidated subsidiaries).
 Operating profit is expected to increase by ¥2.1 billion due mainly to increased gross profit due tohigher sales.
 Ordinary income and ordinary profit expected to improve significantly due to an increase inoperating income and a rebound from equity method investment losses recorded in the previous
fiscal year.
(Billions of yen)

Consolidated
Financial Results

FY2022

FY2023 forecast

189.0

Sales

ChangeYoY percent
change

205.0

15.9

108%

Operating profit（4.4%）

8.3 （5.1%）

10.5

2.1

126%

Ordinary profit（-1.0%）-1.9 （5.9%）

12.1

14.0

－

Profit attributable to owners ofparent（-3.7%）-6.9 （3.7%）

7.6

14.5

－

* Figures in ( ) are profit margins.

13

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FY2023 Earnings Forecasts (Orders received and net sales by sector, parent) Orders received is expected to be ¥168.0 billion (mainly for Air-Conditioning Piping Work) Net sales is expected to be ¥159.0 billion (mainly due to increases in Indoor Electrical Work and Information
Communication Work)

Orders received
84.8

83.9

71.5

FY2023 forecast(Billions of yen)

79.7

(Billions of yen)
FY2022

FY2022

FY2023 forecast

159.0 (+10.7)

167.7

168.0 (+0.2)

148.2

34.3
29.3

30.329.8

31.3 30.6

12.7

Indoor Electrical

Net sales

Air-Conditioning
PipingInformation
Communication
Equipment

10.3
7.7

10.510.0

10.0

Distribution
Line

30.129.8

Underground Power Linefor Transmission/Distribution

14

Indoor Electrical

Air-Conditioning
PipingInformation
Communication
Equipment

7.4 8.6
Distribution
Line

Underground Power Linefor Transmission/Distribution

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FY2023 Earnings Forecasts (Orders received, net sales, and balanced carried forward, parent)
 Both orders received and net sales exceeded the previous year, and the balanced carried forward is
expected to be a record highOrders received, net sales, and balance carried forward
Ordersreceived
Net sales
Balanced
carriedforward

144.9
133.1
91.8

FY2018

153.4

155.6

1,462

148.4

153.0

95.9

96.4

FY2020

FY2021FY2019Balance carried forward to the next FY by sector
74.3(Billions of yen)

78.5
End of FY2022

116.0

Indoor Electrical

Air-Conditioning
PipingFY2022

Information
Communication
Equipment

8.0

0.3 0.3
Distribution
Line

Underground Power Linefor Transmission/Distribution

15

FY2023 forecast

Balance carried forward to the next FY by region(Billions of yen)

82.3

80.7

125.0

9.4

125.0

116.0

Chugokuregion9.7 9.4

159.0

148.2

End of FY2023 forecast

23.5 27.2

168.0

167.7

149.3

88.7

(Billions of yen)

35.2

42.6

Urban
areas
End of FY22

End of FY23 forecast

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

FY2023 Earnings Forecasts (Orders received and net sales by region, parent) Working to expand urban areas while maintaining sales in the Chugoku region.
(Unit: Billions of yen)Ordersreceived

155.6
20.8

167.7

153.4

29.7

31.5

Urban
areas

121.9

138.0

133.0

FY2020FY 2021

FY2022

FY2023 forecast

148.4

153.0

16.1

Urban
areas

35.0

Share of urban
areas in orders
received

134.8
Chugokuregion

Sales

168.0

148.2

20.6

30.4

159.0
27.6

Share of urban
areas in net
sales
FY2020 11%↓
FY2023 17%

132.2

132.3

117.7

131.3

FY2020

FY2021

FY2022

FY2023 forecast

Chugokuregion16

FY2020 13%↓
FY2023 21%

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FY2023 Earnings Forecasts (Changes in key management indicators, consolidated) Net sales are expected to grow, and each profit is expected to increase.
 ROE is expected to improve due to the posting of profit attributable to owners ofparent(Billions of yen)
FY2021

FY2020

FY2022

FY2023 forecast

Sales

190.6

184.4

Operating profit(operating margin)

9.4

Profitattributableto owners ofparent8.1(5.1%)

3.8%

205.0

189.0

10.4
(5.5%)

10.5

8.3

6.6

(5.1%)

7.6(4.4%)

3.8%

3.1%
-3.4%

ROE

-6.9

17

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3. Medium-Term Management Plan 2024
[FY2021-2024]

18

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Medium-Term Management Plan 2024 (Theme and sub-theme)

Theme“Change & Growth For All”
 In order for the Group to continue to grow, it is essential that we continue to transform
ourselves responding more swiftly than ever to changes in the environment.

Sub-theme
Strengthening sales and construction systems, and expanding profits
 Continue to strengthen our foundation in the Chugoku region and expand business in urban areas,
expanding orders and strengthening the construction systems
 Improve organization and strengthen competitiveness to ensure and expand profits even in difficult
environments
Promoting DX and Decarbonization
 Promote the increase in productivity through DX
 Be responsive to SDGs and carbon neutrality•
Work to decarbonize our own company•
Support the decarbonization of our customers through our business (internal-consumption solar
PPA business, etc.).
19

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Medium-Term Management Plan 2024 (Core measures)
Expand orders and strengthen
construction systems

 Strengthen sales to expand orders Strengthen and enhance our design capability through the use of analysis ofactual data and BIM, etc.
 Strengthen and enhancing construction system
 Cooperating more closely with group companies

Secure and expand profits, andimprove competitiveness Use equalization and frontloading of work to raise construction efficiency
 Cost reductions involving cooperation between the company as a whole andgroup companies Improving productivity through the promotion of DX

Enhance human resources
develop and promote work
style reforms

 Nurture human resources with the aim of strengthening construction
management
 Secure and nurture engineers/technicians across the Group as a whole Continue to practice work style reforms, and form fulfilling workplaces

Improve quality

 Reliable contributions to the stable supply of electric power Increase customer satisfaction

Expand the business byinvesting for growth (M&A,
equity stakes, etc.)

 Decarbonize our own company
・install internal-consumption solar power facilities within our company buildings
 Promote environmental businesses to support decarbonization
・Internal-consumption solar power PPA projects, conversion to net zero energy
buildings (ZEB), etc.
 Promote M&As with the aim of strengthening construction systems
 Promote technical research and development
20

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Medium-Term Management Plan 2024 (Numerical targets, consolidated) The unified Group will work as one to achieve the targets of the “Medium-Term
Management Plan 2024”⇒FY2024 target: ¥210.0 billion in net sales, ¥12.0 billion in operating profit
Medium-Term Management Plan 2024
(Net sales)

190.6

189.0

Consolidated
subsidiaries

37.6

407

Chudenkoparent

153.0

1,482

(Billions of yen)

205.0

210.0

460

465

1,590

1,635

(Operating profit)

12.0

10.4

8.3

10.5

5.5%

4.4%

5.1%

5.7%

FY2021 Results

FY2022 Results

FY2023 Forecast

FY2024 Target* Figures in percentage (%) are the ratio of operating margin.

21

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Medium-Term Management Plan 2024 (Human resources strategy)

Training
diary

Brother system

Compliance
Personnel planInternal environment
improvement policy

Construction
management position
system• New graduates, mid-careerhires• Employment of people withdisabilities• Regular personnel transfers

Safety andhealth activities
Healthmanagement

Personnel evaluationand compensation
Bonus system for
acquiring qualifications

Welfare system

Employeeawareness survey

Work stylereforms
Promoting womenin the workplace

22

Sustainable growth• Education of younger employees• Rank-specific training• Professional skill education, etc.

Management plan
Achievement of performance targets
Improvement of medium- to long-term corporate value

Human resource
development training planand take on the challenge of making
reforms”

Human resource
development policy

Young employee
development
Program“People who flexibly accept changes in society

Image of humanresources we seek

Human resources strategy &Human capital investment

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

Medium-Term Management Plan 2024 (Secure and nurture human resources)
Number of new hires through periodic recruitment
FY2020

FY2021

FY2022

FY2023

FY2024 plan

138

135

116

135

140

Employee composition by age group(parent)

Number of persons with qualification

As of April 1, 2023
60～
6%
50～59
21%

40～49
21%

Number of qualified personnel

Qualification

19～29
26%

30～39
26%

October 2018

October
2023

ChangeElectrical Construction Management
Engineers (1st and 2nd grade)

1,037

1,212

175

Plumbing Construction Management
Engineers (1st and 2nd grade)

278

306

28

54

67

13

Professional Engineers• Personnel with multiple qualifications as Construction Management Engineers(Electric Works, Piping Works): 66

Just under 30% are under 30

Growth of younger
employees
23

Improve technical andconstruction skills
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Medium-Term Management Plan 2024 (Concrete measures for implementing capital policy)
Concrete measures for implementing capital policy

1. Investing for sustainable growth
We will invest around ¥40 billion for sustainable growth, including business expansion and securing andnurturing human resources.
 M&A in and around our core business Human resource development and work style reform Decarbonizing our own company
 Promotion of environmental business as a means to assist our customers in their decarbonization
efforts
・Internal-consumption solar power PPA projects and energy-saving proposals such as ESCO, etc.
・Invest in renewable energies
 Invest in promising businesses, etc.

2. Shareholder returns
 Focus on paying sustainable and stable dividends, targeting DOE (consolidated dividend on equity)of 2.7%
 Comprehensively review the business environment, etc. and implement share buybacks asnecessary.

24

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Medium-Term Management Plan 2024 (Shareholder returns)
Shareholder returns

Dividend

Share buyback

FY2021

FY2022

FY2023
forecast

Annual dividend per share

¥104

¥104

¥104

DOE

2.75%

2.93%

2.89%

Consolidated payout ratio

86.0%

―

74.6%

Consolidated total returnratio

106.1%—

93.7%

Number of shares

600,000

390,000

600,000

Cost¥1.3 billion¥0.8 billion¥1.4 billion[Reference] Dividend yield: 4.28% (closing price on November 30, 2023 ¥2,431)

25

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Medium-Term Management Plan 2024 (Dividends and payout ratio) We forecast annual dividends per share of ¥104 in FY2023, aiming to achieve the dividendon equity (DOE) ratio of 2.7% as in past years.

Dividends and Payout Ratio
120.7

Payout
ratio

94.4

70.5%

67.3
34.8

38.7

Dividend
per share

FY2012

Dividend
policy

62

86.0

74.6

44.9

13.0

¥20

71.2

72

72

FY2015FY2016

94

104

104

104

104

FY2018FY2019FY2020

FY2021

104

104

FY2022 plan

FY2023
forecast

30
FY2013

FY2014FY2017[FY2012][FY2013][FY2014][FY2017][FY2018]

Stabledividend
20 yenPerformance-linkedpayout ratio
30%

Target DOE
at 2.0%Target DOE at
2.5%

Target DOE at
2.7%

26

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4. CHUDENKO Group 2030 Vision27

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

CHUDENKO Group 2030 Vision (Theme and Group ideal)

Theme

Change & Growth For All―Toward Sustainable Growth―Group ideal
Achieve sustainablegrowth and contribute to
the realization of asustainable society
Ensure all workers areproud and happy totake on the challengeof making reforms

Respond to society’s
diverse needs withadvanced technology
and quality

28

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CHUDENKO Group 2030 Vision (Target) Consolidated performance Net sales: ¥250 billion Operating income: ¥17 billion ROE: 5.0% or more CO2 emission reductions toward carbon neutrality: 46% or more (compared to FY2013)
 Creating an environment that supports diverse personnel to play active roles and diverse ways of working

Medium-Term Management Plan 2024

(Billions of yen)2030 Vision
250.0

Net sales

210.0

205.0

189.0

17.0

Operating profit(ratio of operating
profit to sales )

10.5

8.3

（5.1）

（4.4％）

12.0
（5.7）

（6.8）

5.0%

3.8%
FY2022 Results▲3.4％

FY2023 Forecast

FY2024 Targets

FY2030 Targets

ROE

29

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5. Reference

30

Copyright©2023 CHUDENKO Corporation. All Rights ReservedReference (Outline of CHUDENKO CORPORATION)
Company name

CHUDENKO CORPORATION

Representative

Takafumi Shigeto
Representative Director and President

Established

September 1944 (as Chugoku Electrical Construction Co., Ltd.)

Capital¥3,481.9 million

Stock exchange listing

Prime Market, Tokyo Stock Exchange

Head Office location

Hiroshima City
Head Office(Chudenko Peace Boulevard Bldg.)

Consolidated
subsidiaries

14

Business activities

General equipment engineering services, sales of electrical materials, insurance agency,
leasing

Number of employees

4,556 (Consolidated)

3,364 (Chudenko parent)

Sales¥189 billion (Consolidated)¥148.2 billion (Chudenko parent) (FY2022)

Total assets¥272.5 billion (Consolidated) ¥248.7 billion (Chudenko parent) (End of FY2022)
31(End of FY2022)

Copyright©2023 CHUDENKO Corporation. All Rights ReservedReference (Network: Chugoku region)

67 offices, with the core consisting of nine branch companies in the Chugoku region
Building an efficient construction system and improving emergency readiness

67 business offices in Chugoku region

Tottori Supervising Branch

Shimane Supervising
Branch(as of October 2023)

Okayama Supervising
BranchHead OfficeCentral Hiroshima Branch
Eastern Hiroshima Branch

Yamaguchi Supervising
BranchEastern Yamaguchi
BranchKurashiki Branch

Hiroshima Supervising
Branch32

Copyright©2023CHUDENKO Corporation. All Rights ReservedReference (Business Bases: Urban areas and overseas) Expand business by establishing headquarters and branches inurban areas and overseas subsidiaries in Southeast Asia
[Urban areas]

KyushuBranch[Overseas]

Osaka
Headquarters

CHUDENKO(Malaysia) Sdn. Bhd.

Tokyo
Headquarters

RYB Engineering(Singapore)

Nagoya Branch

33

Copyright©2023CHUDENKO Corporation. All Rights ReservedReference (Net sales and ratio of operating margin—comparison with other companies in the power industry, consolidated) Ratio of operating profit to sales is forecast to be 5.1% for FY2023, below the average ofother firms in the same industry
Net sales and ratio of operating margin (FY2022 & FY2023 forecast)
12.0

Operating margin (%)

FY2022

FY2023 forecast* Weighted average for eightcompanies in the same industry

Company A

8.0
Company D

Company C

Company G

CHUDENKO

4.0

Company B

FY2023 forecast
6.0%
FY2022 5.9%

Company E
Company F

Company H

0.0
0

1,000

2,000

3,000

4,000

5,000

6,000

Net sales (billions of yen)34

Copyright©2023 CHUDENKO Corporation. All Rights ReservedReference (Overview of CHUDENKO Group)<Consolidated subsidiaries>
Location

Voting rights
held byChudenko

Sanshin Electric Materials Co., Ltd.

Hiroshima City

50.03％

Sales of electrical equipment and electrical works materials, telecommunications
equipment work

CHUKO KAIHATU Corporation

Hiroshima City

100.0％

Insurance agency, leasing

Eapec Hiroshima Co., Ltd.

Hiroshima City

100.0％

Design and estimation of electrical/air-conditioning piping works, etc.

Chudenko Techno Co., Ltd.

Hiroshima City

100.0％

Installation of distribution line work

Chudenko Eletech
Hiroshima/Shimane Co., Ltd.

Hiroshima City

100.0％

Design and implementation of electrical works, etc.

Chudenko Eletech Okayama/TottoriCo., Ltd.

Okayama City

100.0％

Design and implementation of electrical works, etc.

Chudenko Eletech Yamaguchi Co., Ltd.

Yamaguchi City

100.0％

Design and implementation of electrical works, etc.

Sugiyamakankousetubi Co., Ltd.

Yokohama City

100.0％

Design and installation of air-conditioning piping works, etc.

Kobe City

100.0％

Design and implementation of electrical works, etc.

Showa Corporation

Tokyo

100.0％

Design, installation and supervision of heat insulation works, manufacture and sales ofheat insulated pipe supports

SHOWA VIETNAM CO., LTD.

Vietnam

100.0％

Import/export, wholesale and retail sales of air conditioning piping materials, design,
construction and supervision of heat insulation work

CHUDENKO (Malaysia) Sdn. Bhd.

Malaysia

100.0％

Design and implementation of electrical works, etc.

CHUDENKO ASIA Pte. Ltd.

Singapore

100.0％

Administration of subsidiaries’ operations

RYB Engineering Pte. Ltd.

Singapore

100.0％

Design and implementation of electrical works, etc.

Company nameHayamizudenki Co., Ltd.

Main business35

Copyright©2023 CHUDENKO Corporation. All Rights ReservedReference (CHUDENKO Group Fundamental Sustainability Policy)
Creation of richer
environment

Sound business
management

CHUDENKO Group
Fundamental
Sustainability Policy

Development of a
dynamic company

Enhancement oftechnology
and quality

36

Copyright©2023 CHUDENKO Corporation. All Rights ReservedReference (Engagement in SDGs)
Established four challenges in reference to the 17 Sustainable Development Goals (SDGs)
Aiming to meet the expectations of our stakeholders through our business activities and also achieve SDGs.
Challenges

Efforts under the Medium-term Management PlanThoroughly ensure safety and compliance▶ Check the state of implementation of measures to prevent the recurrence of serious
accidents and ensure thorough observance of standards and rules▶ Implement risk mitigation measures adapted to the site and eliminate unsafe behavior▶ Conduct continuous training to enhance compliance consciousness▶ Upgrade the “management of mental and physical well-being”▶ Implement preventive measures against COVID-19 and other infectious diseases

Provide safe and high-quality facilities▶ Conduct high-quality power facilities works and prompt response to disaster recovery▶ Increase efforts in underground power line and private distribution line works▶ Improve and strengthen quality control systems such as in-process inspections▶ Prompt and thorough customer service enabled by enhancing communication withcustomers▶ Improve productivity by executing digital transformation (DX)
▶ Promote technical research and development

Realize decarbonized society▶ Engage in environmental business centering on solar power generation and otherrenewable energy projects▶ Internal-consumption solar power purchase agreement (PPA) project▶ Increase proposals for energy conservation, such as net-zero energy building (ZEB),
energy service company (ESCO)▶Decarbonization efforts of our owncompany

Nurture human resources and promote diversity in society▶ Secure and nurture engineers and technicians across the Group as a whole and promote
human resources development▶ Cooperate more closely with CHUDENKO Association (suppliers’ association) and Group
companies▶ Offer technical training and other assistance to Chudenko Association members▶ Continue to practice work style reforms and form fulfilling workplaces▶ Promote work-life balance and diversity in the workplace

37

Copyright©2023 CHUDENKO Corporation. All Rights Reserved

Cautionary Note on Forward-looking Statements
Various data, forward-looking statements pertaining to earnings forecasts and other matters in thisreport are based on information available to and certain assumptions judged reasonable by theCompany. As such, actual earnings and other outcomes may differ materially from the content of
this report due to a variety of factors.

[For inquiries on this material]

6-12 Koamicho, Naka-ku, Hiroshima-shi 730-0855 Japan
TEL: 082-233-9034
FAX: 082-234-8075
E-mail: kikaku@chudenko.co.jp
Investor Relations, Corporate Planning Department, Planning Division38

Copyright©2023 CHUDENKO Corporation. All Rights Reserved