INFRONEER Holdings
FY2023 Full-Year Financial Presentation

May 15, 2024

FY2023 Full-Year Financial Presentation Contents
Main Contents
1.

Points

11. Infrastructure Management :（Japan Wind Development）
Performance2.

Transition of Results and Forecast

12. Projects that Japan Wind Development is working on

3.

Summary of Financial Results

13. Full details of governance reform

4.

Segment Net Sales and Gross Profit

5.

Transition of Backlog, Order Intake and Profit Margin on Orders(Building Construction and Civil Engineering)

14. Road Civil Engineering :Orders Received, Net Sales, Gross Profit, andOperating Profit

6.

FY23 Results of Capital Strategy & Return Policies

7.

Main Factors for Increase/Decrease in the Consolidated Balance Sheet

8.

Financing Strategy for Making Japan Wind Development Co., Ltd. a Wholly
Owned Subsidiary

9.

Main reasons for increase/decrease in cash flow

10. Major factor for increase/decrease in SG＆A
11. Capital strategies and Stock price performance

15. Road Civil Engineering :Orders Received, Net Sales Gross Profit, andOperating Profit(Construction business)
16. Road Civil Engineering :Orders Received, Net Sales, Gross Profit, andOperating Profit (Manufacturing and Sales business)
17. Topics “Reduction of CO2 emissions by introducing CO2-freeelectricity”
18. Machinery : Net Sales, Gross Profit, and Operating Profit
19. Machinery : Net Sales, Gross Profit, and Operating Profit
20. Topics :Efforts to expand the Overseas market

Segment Highlights

Appendix1.

Building Construction : Net sales, Gross Profit, and Operating Profit

2.

Building Construction : Orders Received and Profit Margin of Orders Received

3.

Building Construction :Types of Orders received

4.

1.Topics:“ Initiatives for large-scale private-sector projects“”operational PFI projects”
2.Topic：“Challenge to achieve both design and functionality”"Involvement in overseas projects"

•
•
•
•
•

5.

Civil Engineering : Net sales, Gross Profit and Operating Profit

6.

Civil Engineering : Orders Received and Profit Margin of Orders Received

7.

1.Topics : “Received orders for dam realignment projects and new construction”
2.Topics: “Received large projects in urban and mountainous areas with regional
expectations”

8.

Infrastructure Management : Contribution to Consolidated profits

9.

Infrastructure Management : Major our infrastructure operations in Japan

10. 1.Topics: “Kumamoto City Comprehensive Maintenance and Management Worksfor Sewer Pipe Facilities”
2.Topics: “Fuji City Eastern Purification Center Solar Power Generation Equipment
Installation Project (PPA)”

•
•
•
•
•
•
•
•

IFRS Transition Schedule and Major Changes Associated with Transition
Japan Wind Development Co., Ltd.（JWD）Becomes Subsidiary
Capital Financing Methods
Impact on voting rights of existing shareholders and financial indicators[Non-Consolidated] Maeda Corp.
FY23 Results and FY24 Full-Year Forecast[Consolidated] MAEDA ROAD
FY23 Results and FY24 Full-Year Forecast[Consolidated] MAEDA SEISAKUSHOFY23 Results and FY24 Full-Year Forecast
INFRONEER Group’s FY23 Results and FY24 Full-Year Forecast
Business Model of Infrastructure Operations
Difference between with “Contribution to profit” and “Segment profit”
INFRONEER Group Employee Stock Ownership Plan
Growth Strategy: Realization of an integrated infrastructure service
company
Selected as a component of the “MSCI Japan Equity ESG Select Leaders
Index”

1

１.Points(All figures for FY22, 23 and 24 from this document are based on IFRS)① Summary of financial FY23 results（P.6）• FY23 results showed a significant increase in both sales and profit over the previous year. (5/10 Upward revision
disclosed)• Gross Profit, Operating Profit(Business profit in IFRS terms) and EBITDA in FY23 is at its highest level ever.

②FY24 Full-Year Plan （P.6）• Business profit for FY24 is expected to be 59.0 billion yen. (Figures announced in INFRONEER Medium-term
Vision ）• Shareholder returns are expected to be 60 yen per share (interim 30 yen + year-end 30 yen).
We will continue to actively return profits to shareholders based on business performance.

③Segment Highlight（P.16-46）
Building Construction （P. 16ｰ21）• FY23 revenues increased significantly from the previous year.
Both on-hand construction at the beginning of the period and new orders proceeded smoothly.
• Orders received and profit margin on orders received in FY23 were significantly higher than planned (record highprofitable order backlog in hand at the beginning of the period). Company-wide sales activities and evidence-basednegotiations with customers resulted in the acquisition of design changes.
• Orders and sales for FY24 are expected to reach 300 billion yen, and both gross profit and sales are expected to reachrecord highs.

Civil Engineering Segment （P. 22-26）
•

•
•
•

In FY23, both revenue and profit increased significantly compared to the previous year.
Further design changes were obtained in the fourth quarter, and the benefits of streamlining the design andshortening the construction period led to a significant increase in profits.
Orders received in FY23 recovered significantly in both the public and private sectors, and the profit margin oforders received remained at a high level.
Continue to maximize profit potential and target high profit margin in FY24.
For FY24, we are forecasting an order volume of 165 billion yen and aim to achieve our plan by further raising thefloor for orders from both the public and private sectors.

2１.Points
Infrastructure Management Segment（Maeda Corp.） （P.27-31）• FY23 results were in line with the plan, except for the postponement of the sale of renewable energy projects andsome development facilities to this fiscal year.
• By utilizing the know-how and experience accumulated through the Aichi Prefecture Arena Concession, Miura City
Public Sewerage Concession, Osaka City Industrial Water Concession, etc. Increased number of similar projects andparticipation in multiple bids.
• In FY24, we plan to sell renewable energy projects and some development facilities that were postponed in FY23.

Infrastructure Management Segment（Japan Wind Development） （P.32-37）• Operating profit of Japan Wind Development Group in FY24 is expected to be 1.5 billion yen.
The company plans to sell some projects while making steady progress in developing others.
• We will steadily increase revenues from power sales and O&M, in addition to sales, while increasing the pipelineof new development projects.

Road Civil Engineering Segment （P.38-42）• FY23 results showed an increase in both sales and profit over the previous year.
Although we passed on higher material costs to customers through price increases, it improved services tocustomers and maintained its market share ratio through relationships of trust.
• Further increase in sales and profit is expected in FY24.
In the Construction business, we will work to receive orders with an emphasis on gross profit margins. In the
Manufacturing and sales business, we will maintain appropriate sales prices in line with the external environment.

Machinery Segment （P.43-46）• FY23 results showed an increase in both sales and profit over the previous year.
Demand for construction machinery remained strong both in Japan and overseas due to stable public investment
and private capital investment.
• We expect an increase in sales and profit in FY24.
We will develop business with a focus on environmentally friendly, high value-added products, while expanding
overseas sales network and introduce new models.

１.Points④Capital Strategy
Shareholder Return （P.9）• Increased year-end dividend from 55 yen per share (interim 25 yen + year-end 30 yen) to 60 yen per share (interim
25 yen + year-end 35 yen)（ Disclosed on May 10, 2024 ）• We have completed JPY 10 billion yen share buyback in FY23 and achieved Medium-term Vision 2024 targets one
year ahead of schedule.
• Total return ratio for FY23 is expected to be 78.4%.（Dividend payout ratio 46.0%、Share buyback 30.4%、“Dividends for the Earth” 2%)• Interim dividend was paid from FY23.
• FY24 dividend is planned to be 60 yen per share (interim 30 yen + year-end 30 yen)

Cross-shareholdings（P.9）• We sold 3.9 billion yen in FY23. However, the holding ratio of cross-shareholdings is increased, due to an increase in
the stock price.
• We will continue our efforts to sell in order to achieve the goal of “net asset ratio of 20% or less,” which is the targetof our “Medium-Term Vision 2024.

Financing Strategy for Making Japan Wind Development a Wholly Owned Subsidiary （P.11-12）• On March 21, 2024, the Board of Directors resolved to issue 60 billion yen of Euro-Yen Convertible Bonds (GreenCBs), and payment was completed on April 8, 2024. By setting conversion restriction clause, the company takes into
consideration the dilution of voting rights of existing shareholders.
Conversion Price: 2,845 yen(Initial 4 years)、2,466yen(4 years 1 month - 9 months)、1,897yen (4years10months –12months ）• In FY24, we will consider financing that does not dilute the voting rights of existing shareholders, including theissuance of bond-type class shares.
4２.Transition of Results and Forecast• Operating profit in FY23 is at its highest level ever.
• Added value is expected to exceed the previous year (expected to reach a record high) .
Operating profit/Business profit(Billions of Yen)

Operating profit/IFRS Business Profit

Operating margin60.0

Record high

37.5

40.0

59.0

51.5

46.4

46.3

Net income

7.0%

6.5%

Net income

Net income margin

33.5

30

23.3

FY20

FY21

FY22

FY23

FY24

Record high

26.7

4.1%

FY20

77.5

84.5

69.1

FY21

FY22

FY23

Added ※
value

92.1 (Billions of Yen)
200.0

Record high

150.0

50.0

FY24

(Forecast)＝ Operating profit + Total labor costs + Depreciation + R&D costs＝ Business profit + Total labor costs + Depreciation + R&D costs＝ Operating profit + Depreciation＝ Business profit ＋ Depreciation（IFRS）
80.5

4.6%

0

(Forecast)

EBITDA

38.4

32.5

10

0.0

100.0

40

20

20.0

(Billions of Yen)

(Billions of Yen)

145.1

140.2

159.8

174.2

184.3

Record high

100.0
50.0

0.0

FY20

FY21

FY22

※1

See p.48 for key changes resulting from the transition to IFRS

※2

From FY22 onward, Business profit under IFRS is used.

FY23

FY24

(Forecast)

0.0

FY20

FY21

FY22

FY23

FY24 (Forecast)5

3. Summary of Financial Results• FY23 results showed an increase in both sales and profit over the previous year. This growth was
due to the acquisition of projects design changes and emphasizing on order intake activities thatvalue gross profit margin.
• For the FY24 full-year plan, we expect higher sales and profits compared to FY23 due to the
expansion of the renewable energy business.
（Billions of Yen）

FY22(IFRS)FY23(IFRS)FY24(IFRS)Results

RevisedResults

Forecast

Net sales

712

768

793

840

Gross profit

98(13.7%)

109(14.2%)

112(14.1%)

125(14.9%)

SG&A

52(7.4%)

63(8.1%)

62(7.8%)

68(8.1%)EBITDA80(11.3%)-

85(10.7%)

92(11.0%)

Business profit

46(6.5%)

51(6.5%)

59(7.0%)

48(6.3%)

Other revenues

1

-

2

1

Other expenses

3

-

2

1

Operating profit

44

-

51

(6.2%)(6.4%)

59(7.0%)

Financial income

3

-

3

0

Financial expenses

3

-

5

2

Net Income

33(4.7%)

32(4.1%)

33(4.1%)

38(4.6%)

Equity

362

-

400

-

ROE

9.4%

-

8.6%

-

ROIC

5.3%

-

4.0%

-

WACC

5.2%

-

3.7%

-

EPS

129.4JPY

126.3JPY

130.5JPY

153.9JPY

64. Segment Net Sales and Gross Profit
FY22(IFRS)①Results（Billions of Yen）
FY24(IFRS)FY23(IFRS)②Revised③Results

711.8

770.2

Building Construction

214.4

Civil Engineering④Forecast+/-(③−①)+/-(③-②)

793.3

81.5

23.1

839.9

46.6

242.0

273.7

59.3

31.7

293.3

19.6

152.1

163.8

162.4

10.4

-1.4

150.3

-12.1

Road Paving

244.1

244.8

251.8

7.7

7.0

257.0

5.2

Machinery

37.3

39.3

39.8

2.4

0.5

40.9

1.1

※

Net sales+/-(④-③)

Infrastructure

MK

22.6

32.5

17.3

-5.3

-15.2

32.2

14.9

Operations

JWD

ー

ー

1.1

ー

ー

8.7

7.6

Others

41.4

47.8

47.2

5.9

-0.6

57.5

10.3

Gross profit

97.7(13.7%)

109.4 (14.2%)

111.9(14.1%)

14.1

2.5

125.1 (14.9%)

13.2

Building Construction

22.8(10.6%)

22.2(9.2%)

22.4(8.2%)-0.3

0.2

31.3 (10.7%)

8.9

Civil Engineering

28.4(18.7%)

40.8 (24.9%)

42.4(26.1%)

14.0

1.6

28.0 (18.6%)-14.4

Road Paving

24.8(10.2%)

30.1 (12.3%)

31.1(12.3%)

6.3

1.0

36.3 (14.1%)

5.2

Machinery

7.6(20.4%)

8.6 (21.9%)

8.5(21.4%)

0.9-0.1

9.3 (22.7%)

0.8(45.4%)

3.1

2.9(16.6%)

-7.4

-0.2

11.4 (35.4%)

8.5

0.6

(55.3%)ーー

4.1 (47.1%)

3.5

Infrastructure

MK

10.2

Operations

JWD

ー(9.5%)ー

3.9(9.5%)

4.6(9.6%)

4.0(8.5%)

0.1

-0.6

4.7

(8.2%)

0.7

46.4(6.5%)

48.1(6.2%)

51.5(6.5%)

5.1

3.4

59.0

(7.0%)

7.5

Building Construction

8.0(3.7%)

4.0(1.7%)

4.3(1.6%)

-3.7

0.3

13.6

(4.6%)

9.3

Civil Engineering

16.8(11.0%)

27.1 (16.5%)

29.6(18.2%)

12.8

2.5

15.2 (10.1%)-14.4

Road Paving

10.9(4.5%)

13.9(5.7%)

14.8(5.9%)

3.9

0.9

19.7

(7.7%)

4.9

Machinery

1.6(4.2%)

1.9(4.8%)

1.9(4.7%)

0.3

0.0

2.2

(5.4%)

0.3(34.4%)-0.8(-2.5%)-0.2(-1.2%)-8.0

0.6

6.9 (21.4%)

7.1

-0.2

(-19.7%)

ー

ー

0.1

(1.1%)

0.3

1.3(2.6%)

-0.1

-0.8

1.3

(2.3%)

0.1

OthersBusiness profit

Infrastructure

MK

7.8

Operations

JWD

ーOthers1.4

ー(3.3%)

2.0(4.2%)※ MK… Maeda Corp. ,JWD… Japan Wind Development Co., Ltd.
※ The Pavement segment includes amortization of PPA.
※ JWD in the Infrastructure Operations segment includes
amortization of goodwill and PPA.

※ Previous Segment：See p.49 for details on segments.
※ See p.48 for key changes resulting from the transition to IFRS.

75.Transition of Backlog, Order Intake and Profit Margin on Orders (Building Construction and
Civil Engineering)• Expect record-high contract backlogs in the building construction segment, and high profit margin of orders
received.
• Decreased contract backlogs in the civil engineering segment but secured high profit margin of orders received.
• In addition to maximizing potential profits, profit margin of orders received is thoroughly controlled due tosecure profit at early phase of the projects (ex. stable customers, securing design-build ratio and information oflarge projects) and negotiation for price increases.
Transition of orders and proﬁt margin ※Transition of contract backlogs※（Billions of Yen）

（Billions of Yen）

Building Construction

500

400

439.6
394.6

465.2

465.2

300.0

262.2

8.0%

7.7%

7.2%

6.5%

7.0%

7.0%

7.0%

FY20

FY21

FY22

163.6

160.4

6.9%

100.0

200

FY22

FY23

FY24

FY25
(Forecast)

350

0.0

（Billions of Yen）
200.0

323.5
309.5

150.0

Civil Engineering

300

278.5

269.2

0.0

200

FY23

※ Maeda Corporation (Non-consolidated)

FY24

FY25
(Forecast)

106.5

9.7%

100.0
50.0

FY22

12.6%

284.0

250

FY21

299.9

300.0

Record high

200.0

300

FY21
（Billions of Yen）

Profit margine_forecast

261.9

246.8

Record high352.5

OrdersProfit margine_results

9.0%

9.1%

FY20

FY21

FY23

152.1

11.8%

11.2%

9.5%

10.0%

FY22

FY23

7.5%

FY24

(Forecast)
165.0

10.0%

FY24

(Forecast)

8

6.FY23 Results of Capital Strategy & Return Policies
Shareholder returns• We have completed JPY 10 billion yen share buyback in FY23(as announced on Dec 28, 2023) and achieved Medium-term Vision 2024
targets one year ahead of schedule.

Cross-shareholdings• We sold 3.9 billion yen in FY23. However, the holding ratio of cross-shareholdings is increased, due to an increase in the stock price.
• We will continue our efforts to sell in order to achieve the goal of “net asset ratio of 20% or less,” which is the target of our “MediumTerm Vision 2024.

Medium-term Vision 2024
Capitalefficiency

Optimalcapitalstructure

Shareholder
returns

FY23 Result

Notes
Although ROE temporarily declined due
to an increase in equity capital, we willcontinue to invest aggressively in growth
to improve business profits.

ROE

9.5％

10.3%

8.6%

Equity ratio

More than 30％

38.1%

28.4%

D/E ratio

Less than 0.6
times

0.4 times

1.1 times

Dividend
payout ratio

More than 30％

42.5%

46.0%

Share buyback

More than
40.0 billion JPY

JPY 30 billion yen
completed in
FY21・22

JPY 10 billion yen in FY23

Total payout
ratio

Asset
efficiency

FY22 Year End

Crossshareholdings/
Net assets rate
Sales of assetsーLess than 20％

69.5%

19.8%

40 billion yen in total

Interest-bearing debt increased due tofundraising related to the acquisition ofJapan Wind Development as a subsidiary,
but in FY24 we aim to maintain the rating
by improving the capital adequacy ratio
and DE ratio through bond-type classshares, etc.

FY23 Full-Year
Dividends per share: JPY 60 yen
Achieved targets in the mediumterm business plan in FY23.

78.4%

FY23 Full-Year
Dividend payout ratio 46.0％+Share buybacks 30.4%+“Dividends for the Earth” 2.0%

25.8%

Sold 3.9 billion yen in FY23, but theownership rate increased due to the risein the stock price of cross-shareholdings
FY23 3Q 24.1% ➡ FY23 4Q 25.8%

Consider sale or integration of inefficient assets by examining the usage status of group-owned assets.

9

7.Main Factors for Increase/Decrease in the Consolidated Balance Sheet
AssetsLiabilities and Capital（Billions of Yen）

（Billions of Yen）

1410.6(1311.5)※1

978.1(872.9)※1

Contract asset +58.6【progressive-basevolume of MK※4】

Right tooperate thepublicfacility
105.2

Borrowings(current)+284.6
Borrowings(fix) +29.9【JWD M&A】

551.0

481.6

978.1
Liabilities with interest
166.9

Current Assets
468.0

1410.6217.6
Construction in progress
account +32.7【JWD※5 M&A】

Fixed Assets
173.3
Intangible Assets

420.2

Goodwill ＋139.1
PPA +96.0【JWD M&A】

Contract liabilities+21.9【Increase in advances
received on uncompleted
contracts of
Other Liabilitiesconstruction
MK 】
Deferred tax
Right to437.1
liabilities+42.8
operate the【JWD M&A
public・ Increase in stock price offacility
listed stocks 】

99.1

193.1

Investment
Fixed Assets(Investment) securities ＋59.3【Increase in stock
143.6
price of listed
stocks】
FY22

3.4%

ROA (3.8%)※1

Capital

221.8

374.1

FY23

FY22

ROA

2.7%
(3.0%) ※1

Net unrealized gains
on securities +26.9【Increase in stock priceof listed stocks】
Retained earnings
+12.8

509.8

419.2

FY23

※1（ ）・・・Figures exclude Right to operate the public facility※2 Liabilities with interest= short-term debt, long-term debt, non-recourse loan (including
current portion) and bonds.
※３Right to operate the public facility
Consideration paid for the transfer of rights to operate public facilities such as concession
projects over a period of years※4 MK :Maeda Corporation※5 JWD: Japan Wind Development

10８.Financing Strategy for Making Japan Wind Development Co., Ltd. a Wholly Owned Subsidiary
Emphasize balance between securing a financial base that contributes to growth and shareholder returns
Maintain the rating with consideration for dilution
Resolved to issue 60-billion-yen Zero Coupon Convertible Bonds (Green CBs) in March 2024
For FY24, we will consider financing methods including bond-type class shares.（For bond-type class shares,
depending on the market environment, there is a possibility that the issuance resolution will be adopted at
the earliest on the date of approval of the proposed amendment to the Articles of Incorporation at theGeneral Meeting of Shareholders ）

•
•
•
•

Financing Methods
・ Green CBs 60-billion-yen（Issued in March 2024）

D
Goodwill

Short-term
loan

218.4

A

D
E

Shortterm loan

218.4

E

※Conversion control type, taking
dilution into consideration（See P.13）

Other Methods
・Long-term loan
・Corporate Bond・Subordinated debt
・Subordinated loan
・Bond-type class sharesetc.

Consider the optimal
capital structure from thefollowing perspectives
Dilution
Considerations
Maintaining Credit
Ratings
Diversification offunding sources
Capital Efficiency

11

Reference Zero Coupon Convertible Bonds (Green CBs)••

Resolved to issue 60-billion-yen Zero Coupon Convertible Bonds (Green CBs) in March 2024
Consideration for dilution of voting rights of existing shareholders by minimizing conversions through the
granting of a conversion restriction clause
Term／Issue size

5 years／JPY 60 billion yen

Date of resolution to issue, date of determinationof terms and conditions

Thursday, March 21, 2024
Monday, April 8, 2024

Payment dateConversion restriction clause
Trigger level for Stock Priceconversion
limitation clauses
Conversion
Price ×150％

Last 20 consecutive trading
days of the quarter

Restrictedconversion
zone
End ofquarterConvertible
zone
Convertible in the next quarter

Conversion
Price ×130％
InitialConversion Price
1,897 yenrate of increase
Stock price at thetime ofdetermination ofterms andconditions
1649.5yen

1 year before maturity※The stock price trend is an image only and is not a prediction or guarantee of the Company's stock price movement.
※Calculated based on the initial conversion price, which will be adjusted accordingly if the conversion price is adjusted.

3 months
Exercise Maturity
before maturity Period

12９.Main reasons for increase/decrease in cash flow
• In FY23, investment cash flow and financial cash flow fluctuated significantly due to large M&As.
• Fluctuations in FCF (free cash flow) are affected by advances for construction work, but FCF fluctuations
will be mitigated by improving payment terms and expanding infrastructure operation business（Billions of Yen）

Operating Cash Flow

300.0

Investment Cash Flow
Financial Cash Flow
200.0

261

FCF※（Free Cash Flow）

100.0

104

82

46

60

-16

0.0
-14
-76

15

-23
-39

39
-22
-68

-100.0-279-200.0-240-300.0

FY20

FY21

FY22

FY23

※FCF（Free Cash Flow）= Operating Cash Flow ＋ Investment Cash Flow
13

10.Main Factors for Increase/Decrease in G&A
Personnel expenses• Personnel expenses increased due to wage hikes and approximately 600 million yen in expenses related to the JESOP, which was introduced in FY24.
R&D costs• Increase in R&D expenses due to productivity improvement initiatives (IT, DX, etc.)（Billions of Yen）

Incremental Factor※※ Stock acquisition related expenses such as FA fee due to becoming a subsidiary of JWD.

14

11.Capital Strategies and Stock price Performance•

We will continue to perform capital-efficiency oriented management by constantly executing
our capital strategies and by achieving our performance targets.
FY21

FY22

FY24

FY23

Dividend payout ratio 42.2%
Total payout ratio 111.2%

Dividend payout ratio 39.7%
Total payout ratio 69.5%

Dividend payout ratio 46.3%
Total payout ratio 78.7%

Share buyback
20.0 billion yen

Share buyback 10.0 billion yen

Share buyback 10.0 billion yen

65%

Announcements(Mar 21, 2024)
Resolved to issue
Green CBs

Record High Stock Price
1635.5 yen (Sep 20, 2023)

55%

Announcement：
Acquired all shares of JWD

45%

35%

Establishment of INFRONEER Holdings
935 yen (Oct 1, 2021)

25%

INFRONEER
Holdings

15%

Announcement(May 10, 2024)
・Upward revision of FY23 results
・Increase in Dividend Per Share
55 yen→60 yen

5%
0％

‐5%

‐15%

2021/10TOPIX

Lowest Stock Price
896 yen (June 6, 2022)
2022/32022/92023/32023/92024/32024/5※Growth rate of the stock price since the reference date (Oct 1, 2021)●: Date of Announcement on Financial Results

15

Segment Highlights
Building
Construction

Civil
Engineering

InfrastructureManagement

Maeda Corp.

Maeda Corp.

InfrastructureManagement

Road Civil
Engineering

Machinery

Maeda Corp.

Japan Wind Development

MAEDA ROAD

MAEDA SEISAKUSHO

16

Include real estate business Building Construction
建築

１. Net Sales, Gross Profit, and Operating Profit ( Maeda Corp.)• FY23 FY

Although net sales were significantly higher than the previous fiscal year (FY22), gross profit decreased due
to a decline in profit margin.
• After FY24 An increase in revenue and profit is expected due to the increase in progress of large-scale construction
projects started by FY23 and an improvement in profit margins. With the completion of large-scaleconstruction projects based on the completion method, gross profit on sales is expected to reach a record
high of 32 billion yen.

Full Year※(Billions of Yen)

Net sales
Gross profit margin_forecast
Operating profit ratio_results

Gross profit
Gross profit margin_results

300.0

300.0

274.4

10.9%
250.0
218.6

10.8%

11.0%
217.2

10.4%

200.0

150.0

50.0

10.7%
8.8%
8.4%

5.9%
5.2%

100.0

Operating profit
Operating profit ratio_forecast

4.1%

5.2%
4.1%

3.9%
1.8%

23.5

8.9

23.8

8.4

23.1

32.0
4.8

12.4

0.0
FY21

FY22

FY23

FY24（Forecast)※For this ﬁgure including the real estate business (Building Construction), the figure before FY21 is different from the figure in publication documents.
Net Sales and profit of major local subsidiaries are contained in “others” segment.

17

Include real estate business Building Construction
建築

２.Orders Received and Profit Margin of Orders Received ( Maeda Corp. )• FY23 FY

Orders received were much higher than planned, and the profit margin of orders received
at the time of ordering also reaches the original plan.
• After FY24 We have secured highly reliable orders received exceeding 200 billion yen at the beginning of
the period. We expect to achieve a high level of orders similar to that of previous term andaim to secure a profit margin of 7.5% at the time of ordering.
Full Year※(Billions of Yen)

Orders Recieved（Private）

Orders Recieved（Public）

Profit margin of orders received（Forecast）

Profit margin of orders received（Result）
299

300

250

262
8.0%

262
7.7%

300

（Forecast 280）

Record high
7.2%

200

150

7.0%

7.0%

189

10%

7.0%
233

7.5%
250
5%

205

100

50

0

73

FY21

57
FY22

66
FY23

※ For this ﬁgure including the real estate business (Building Construction), the ﬁgure before FY21 isdifferent from the figure in publication documents.

50
FY24（Forecast）

0%

18

Include real estate business Building Construction

3. Types of Orders Received (Maeda Corp.)••

FY23 FY“ Warehouses and Logistics Facilities", "Condominiums" and "Offices" large private projects are driving
order intake.
After FY24 Ratio of "Condominium", "Warehouses＆Logistics Facilities" expected to increase due to large residential
and distribution facilities.
100%
90%

【

18.0%
【6.2％】

12.1%【4.5％】

10.1%【5.6％】

80%
70%

22.8%
【6.4％】

31.6%【7.3％】

41.1%【7.4％】

4.2%【8.7%】】 indicate profit margin on orders

17.5%【7.2%】

40.2%【7.9%】

10.0%

35.0%

Commercial
Buildings
Factories, Power Plants,
Warehouses
Logistics Facilities

35.0%

Condominiums

10.0%

Educational
Research
Cultural Institutions
Medical Facilities
Amusement Facilities,
Others

34.2%【8.0%】

60%

Offices,
Governmental
Buildings

50%
40%

40.0%
【7.2％】

38.7%【6.3％】

22.1%【7.4％】

30%
20%
10%
0%

2.7%
【5.8％】
16.5%

7.2%【8.8％】
10.4%

21.9%【6.0％】
4.7%

39.6%【6.9%】

9.9%【8.0%】
6.1%

23.0%【5.3%】
10.2%【8.5%】
15.1%

FY19
FY20
FY21
FY22
FY23
（通期実績） （通期実績） （通期実績） （通期実績） （通期実績）

10.0%
FY24
（計画）
(Forecast)19Building Construction

4-1.Topics: " Initiatives for large-scale private-sector projects," "Operational PFI projects"
Warabi Station western exit redevelopment project

Saitama Prefecture Indoor 50m Swimming
Pool Development and Operation ProjectWith the goal of revitalizing and enhancing the appeal of Warabi's
gateway, we are committed to the integrated development ofresidential facilities, commercial and business facilities, and public
utility facilities.This encompasses the continuous development of apromenade and the advancement of creating an appealing space that
extends to the 7th block of the Warabi Station western exit area. Just as
the traditional Warabi fabric, Futago‐ori, is woven together, we aim tocreate a space where various elements such as residents, visitors,
culture, and industry intersect to create new value.

It is the first public indoor 50‐meter swimming pool in Saitama
Prefecture to receive international certification from the Japan
Swimming Federation. The facility is designed not only to host various
swimming competitions, but also to provide an environment conducive
to comprehensive training and camps aimed at athlete development
and improvement.
The facility is designed to provide a year‐round, weather‐independent
environment that is accessible to all residents of the prefecture, fromchildren to the elderly.

Orderer ： Warabi Station western exit area city redevelopment
association

Orderer ：Sakitama Pool PFI Service Co.
(General Contractor of the PFI Project: Saitama Prefecture)

Item

Commercial, business, public, and residential
facilities.

Structureand Scale

RC・S structure/1 below ground, 28 above groundTotal Floor
Space

About ５５，５００㎡

PeriodJan. 2024 – Jul. 2027

Item

Educational, research and cultural facilities.

Structureand Scale

RC・S structure/1 below ground, 2 above groundTotal FloorSpace

１５，６２２．７９㎡

PeriodMar. 2024 (with construction scheduled to start in
Apr. 2025) to-Mar. 2027

20

Building Construction

4-2.Topics： "Challenge to achieve both design and functionality", "Involvement inoverseas projects".
NOT A HOTEL ISHIGAKIJIMANew Construction Project

NISSIN FOODS (U.S.A) Greenville Plant constructionwork

It is the construction of vacation homes developed and soldnationwide by NOT A HOTEL Inc. 。 The distinctive feature is thesolitary circular villa that stands alone on a plot of land of
approximately 3,000 tsubo (about 9,900 square meters) in thesouthern part of Ishigaki Island. The rooftop is designed to blend inwith nature by creating a mortar-shaped roof, allowing residents toenjoy the natural beauty of the stone wall all to themselves without
having to leave their rooms. A swimming pool, sauna and gym areseamlessly connected to the living and dining areas, and a children's
pool and fireplace are planned for the rooftop.

This is a new plant that Nissin Holdings Corporation is building inGreenville, South Carolina, as its third production base in the UnitedStates to meet strong demand in the U.S. instant noodle market. Nissin
will purchase and renovate existing facilities and install advanced
equipment to expand their lineup of high value-added products andincrease production capacity. The project is expected to improve
production and delivery efficiencies in the U.S. by linking with the twocurrently operating facilities.

Orderer ： NOT A HOTEL Inc.

Orderer ： Nissin Foods (U.S.A) Co., Inc

Itemaccommodations

Item

Factories & Power Plants

Structureand Scale

RC structure/2 above ground

Structureand ScaleS structure/1 above groundTotal FloorSpace

１，０９３㎡

Total FloorSpace

５９，５１７㎡

PeriodFeb. 2024 – Mar. 2025

PeriodDec. 2023 – Apr. 2025

21

Segment Highlights
Building
Construction
Maeda Corp.

InfrastructureManagement

Japan Wind Development

Civil
Engineering

InfrastructureManagement

Maeda Corp.

Maeda Corp.

Road Civil
Engineering

Machinery

MAEDA ROAD

MAEDA SEISAKUSHO

22

Civil Engineering

5. Net Sales, Gross Profit, and Operating Profit ( Maeda Corp. )• FY23 FY The significant improvement in the profit margin of large construction projects held at the
beginning of the period, along with the acquisition of challenging design changes in projects completed
this fiscal year, and the enhancement of construction efficiency and reduction of construction period, have
led to a substantial increase in profits.
• After FY24 We aim to achieve our goals by facilitating the seamless execution of the major construction
projects that existed at the beginning of the period and by actively pursuing additional design changes.
Full Year※Net sales

Gross profit

Operating profit

Gross profit margin_forecast

Gross profit margin_results

Operating profit ratio_forecast

Operating profit ratio_results（Billions of yen）

150.0

100.0

151.4

26.1%

140.9

15.5%
15.0%
8.9%

50.0

161.5

7.8%
21.8

18.4%

17.9%

150.3

18.6%

17.5%
14.7%
10.4%
8.2%
27.9

8.8%
42.1

28.9

15.8

11.0

9.3%
28.0
14.0

Record high

0.0
FY21

FY22

FY23

FY24（Forecast)※ For this ﬁgure including the real estate business (Civil Engineering), the ﬁgure before FY21 is diﬀerent from the ﬁgure in publication documents.

23

Civil Engineering

6.Orders Received and Profit Margin of Orders Received ( Maeda Corp. )• FY23 FY

Order value has recovered significantly in both the public and private sectors, and the
profit margin of orders received has remained high.

• After FY24

We will implement a strategic bidding approach focused on profitability to further
improve our position in both public and private construction.
Full Year※（Billions of yen）
200

Orders received（Public）

Orders received（Private）

Profit margin of orders received（Forecast）

Profit margin of orders received（Results）

160
150

152
11.8%

97
100

9.7%

106
39
9.5%

62

165

62

11.2%
10.0%

10.0%

9.0%
50

90
63

0

FY21

103

67

FY22

FY23

※ For this ﬁgure including the real estate business (Civil Engineering), the ﬁgure before FY21 is diﬀerent
from the figure in publication documents.

FY24(Forecast)24

7-1.Topics : “Received orders for dam realignment projects and new construction”

Civil Engineering

Omachi Dam and other realignment tunnel
construction for transporting soil and sandConstruction work on Tobakochi Dam of the Class B
river, Tobakochi River

After completing the technical cooperation work (Early Contractor Involvement,
commonly known as ECI) awarded the year before last, we were awarded the main
construction project. This is the construction of a tunnel for transporting sediment tosecure flood control capacity by realigning the Omachi Dam (owned by the Ministry ofLand, Infrastructure, Transport and Tourism), Takase Dam, and Nanakura Dam (owned by
TEPCO Renewable Power Co., Ltd.) as part of the Omachi Dam Realignment Project.The
project involves excavating 11 km of tunnel using the TBM method, which is an unusual
construction method. For us, it is of great significance to be involved in flood control
projects through dam linkage. We expect that the technology and experience we havecultivated over many years in dam and tunnel construction, which is also the cornerstoneof our company, will contribute greatly to this project.

The Tobakochi Dam is constructed as a flood control dam on the Tobakochi
River in the Kamo River system of a second-grade river. It was planned toenhance flood control safety in the Kamo River basin, which has often
flooded in various places in the past, including Typhoon Isewan in
September 1959, causing disasters. The dam is designed for flood control
purposes, storing water only during times of heavy rainfall, rather thanduring normal times, and is also environmentally friendly.

Orderer：Ministry of Land, Infrastructure , Tourism
Hokuriku Regional Development Bureau
Location

Omachi city , Nagano

Project outline

Tunnel length L=10,760.5m
Drilling Diameter 4.06 m

Construction
periodMar 2024 - Feb 2028

Orderer：Mie prefecture

Location

Toba, Kouchi-cho, Mie

Gravity-fed concrete dam(flow-through dam)
Project outline Bank height 39.0m Levee top length 193.0m
Embankment volume 57,880㎡
Construction
Oct 2023 - Apr 2028
period25

7-2.Topics : “Received large projects in urban and mountainous areas with regional
expectations”

Civil Engineering

Construction of a new station at Edagawa area, Yurakucho line

Tennoubara tunnel tentative name construction work

This project is to extend the Urban Rapid Transit Line No. 8 (Tokyo
Metro Yurakucho Line) toward Toyosu, Toyocho and Sumiyoshi
Stations by branching the line at Toyosu. A new station (Edagawa
Station, tentative name) will be constructed in the 4.9 km section
from Toyosu 5-chome, Koto-ku, to Sumiyoshi 2-chome, Koto-ku,
using the cut and cover method.

The entire stretch of the Hiroshima Yurai-Sen (Prefectural Road 71) from
Numata-cho, Asaminami Ward to Mugiya, Yurai-cho, Hiroshima City isnarrow, making it difficult for ordinary vehicles to pass through. It is also
necessary to secure an entry route for refuse delivery vehicles to the Keishita
Landfill, which was completed in the middle of the route. We will widen thecurrent road and construct a new tunnel to ensure safe passage for generaland refuse collection vehicles.

Orderer：Tokyo Metro Co.,Ltd.

Orderer：Hiroshima City

Location

2 Edagawa, Koto-ku, Tokyo

Box-type, 3-layer underground system
Project outline Construction distance L=314m
Drilling volume 115,787㎥ Reinforced concrete 31,713 m
Construction
Feb 2024 - Dec 2031
periodNumata-cho, Asaminami-ku - Yurai-cho, Saeki-ku,
Hiroshima City, Hiroshima Prefecture
Construction distance L=2,240m Tunnel length 2,185m
Project outline NATM (Nuclear Attachment Test Method)
Inner section area 50.5㎡ Breadth 7.5m
Construction
Nov 2023 - Jan 2028
periodLocation26

Segment Highlights
Building
Construction

Civil
Engineering

InfrastructureManagement

InfrastructureManagement

Road Civil
Engineering

Machinery

Maeda Corp.

Japan Wind Development

Maeda Corp.

MAEDA ROAD

Maeda Corp.

MAEDA SEISAKUSHO

27

Infrastructure Management(Maeda Corp.)

8. Contribution to Consolidated Profits• In FY23, sales and profits decreased due to the postponement of the sale of renewable energy projects anddevelopment projects.
• In FY24, we plan to sell renewable energy projects and development projects that were postponed in theprevious year.
• Full-year profit contribution is expected to be 14.5 billion yen, a record high.

(Billons of Yen)

16

Record high

14.5

14

Profit Contribution

10.0
0.7

10
8
6
4
2
0
-2

5.3
0.5

5.2
1.2

2.6

4
6.6

4.8

4.3

0

-0.3

FY19

7.2
0.2

FY20

2.9
FY21

FY22

3.5
1.8
1.6
0.1

FY23

Recorded in the PL of the InfrastructureManagement segment

12

5.4

LegendContribution to other segments• O＆M ※1
• EPC ※2
• development and otherbusiness etc.

Recorded in InfrastructureManagement segments

1.3

7.9

FY24
（Forecast）

Operating profit ofconsolidated subsidiaries• Revenue from renewableenergy sales• Gain on sale of developed
facilities related toinfrastructure operations• SPC consolidated profit
related to infrastructure
management
・Gain on sale of equity
interest in anonymous
association
・Non-consolidated SPC
stock dividends, etc.

※1 O&M Operation and maintenance associated with infrastructure maintenance and management※2 EPC Lump-sum contracting for design, procurement, construction work, etc. associated with infrastructure operation projects※3 See P57 for details.

28

Infrastructure Management(Maeda Corp.)

9. Major Infrastructure Management Projects in Japan

 Proven track record in various infrastructure services.
 Implementing efficient integrated management leveraging the strengths of the private sector.

POINT

Concessions

6 projects

PFI(Service Purchase Type)17 projects

Comprehensive Facilities
Management Contracting

14 projects（contract amount:3 billion yen per year）
PFI

Fire department（Morioka City）
PFI

PFI

School lunch center（Aomori City）

Elementary school（Higashine City）
PFI

Fire department（Higashiosaka City）
LABV※
New Compound
facilities

New（Sanyo-Onoda City）

concession

PFI

concession

Parking lot (bicycles, motorcycles)

Industrial water（Osaka city）（Minowa City）
PFI

Self-Defense Forces facilities※（Kure City）

Sendai airport（MLIT）PFI

PFI

Parking lot（Kobe University）

Pool（Kusatsu City）

CFM

CFM

CFM

Public facilities（Kounosu City）

Public facilities(Fujimino City)

School facilities（Wako City）

CFM

Public facilities（Joso City）

PFI

Exhibition center（Fukuoka City）

New

CFM

School facilities（Miyazaki City）

CFM

CFM

Road
（Fuchu City）

CMF

Public facilities（Sakura City）

PFI

CFM

New Sewerage Pipe
（Kumamoto City）

New

Public facilities（Furukawa City）

CFM

PFI

PFI

New

School faclilities
Public facilities（Higashimurayama City） （Kunitachi City）

Compound facilities（Oita City）

Refueling facilities（Kagoshima City）

CFM

CFM

Public facilities（Fukutsu City）

PFI
Swimming Pool
（Saitama Pref.）concession

concession

Toll road（Aichi）

Exhibition center（Aichi）

concession

Arena（Aichi）

school lunch center（Toyota City）

CFM

Public facilities（Toyoake City）※LABV（Local Asset Backed Vehicle）

PFI

Compound facilities（Chiba City）

New

CPC ※

concession

Public facilities（Izu City）

Sewage（Miura City）

PFI

PFI

Roadside station Water purification plant（Matsudo City）（Katori City）

PFI
Self-Defense Forces facilities（Iioka City）※ The 2 Self-Defense Forces facilities in Iioka Cityand Kure City are regarded as one project29

10-1.Topics “Kumamoto City Comprehensive Maintenanceand Management Works for Sewer Pipe Facilities”

Infrastructure Management(Maeda Corp.)

・The first comprehensive management project for sewer pipeline facilities in a government-designated city in the Kyushu area.
・The purpose of the business is to collect and manage maintenance data, utilize it to convert pipelines into
preventive maintenance, optimize management.
BusinessName

Comprehensive maintenance and management work for sewerage
pipeline facilities（Chuo-ku）（No.23-901）

Orderer

Kumamoto City Water and Sewerage Bureau(in charge: Maintenance and Management Department)

Business
PurposePreferential
Negotiation Right
holderTarget area︓Approx 2,545ha（Chuo-ku）
Pipes ︓Approx 540㎞ ,Manholes︓17,590

Convert to planned maintenance and management (preventive
maintenance type) by utilizing the know-how and ingenuity of theoperator to improve the efficiency and quality of operations.

中央区
Chuo-ku

Kumamoto Sewerage Partners Joint Venture（JV structure︓Kansei Company（Representative company）、Maeda
Corporation、DK Corparation、Kyowa cleaning Company（local company）、
Kyoei environmental development（local company））

Selection
Style

General public bidding[reference]
Runner-up

Clear Kumamoto JV（Kyushu technical maintenance（Representative company）etc）

PeriodApril 1, 2024 to the end of March 2027

Business
Content

 General management work（Centralized management, data
management, business optimization, etc.）
 Planned maintenance and management of sewerage pipeline facilities(approx 2,545 ha), daily response (responsibility, repair response, etc)
ⅰ Pipe (sewage, rainwater, confluence) approximately 540km
ⅱ Approx 17,590 manholes (main body, manhole cover)ⅲ Approx 63,900 installation pipes
ⅳ Approximately 56,600 public locations
 Disaster response operations

Proposed amount(3 years total) 730,000,000 yen (tax included)

Maeda
Responsibilities

Data management, Optimal management planning, Self-monitoring,
General management work such as Business optimization, etc.
※ Centralized management is Kansei Company

FuturePlan

Kumamoto City has decided to transition to Water PPP 4.0, including
expansion to the entire city, from the next period (April 2027) .

Higashi-ku

Nishi-ku

Target Area

Implementation system※ 1 Led by the person responsible for self-monitoring※ 2 In addition to data management, the deputy generalmanager will be responsible for businessstandardization, preparation of manuals, etc., andproposals with an eye to next expansion.

30

10-2.Topics"Fuji City Eastern Purification Center Solar Power
Generation Equipment Installation Project (PPA)"Infrastructure Management(Maeda Corp.)

・Efforts to realize a decarbonized society through on-site solar power generation PPA model at sewager treatment plants.
・We plan to approach the Fuji City water and sewage business by proposing a water PPP in the future.
Business
Name

Fuji City Eastern Purification Center Solar Power Generation Equipment
Installation Project (PPA)

Orderer

Fuji City, Shizuoka Prefecture （in charge︓Water and Sewerage
Department Sewerage Facility Maintenance Division）

Business
PurposeFuji City aims to achieve “net zero carbon dioxide emissions by 2050”①Reducing greenhouse gas emissions from sewerage projects②Promoting the use of renewable energy③Securing emergency power sources in the event of increasingly severe
and frequent disasters④Achieving sustainable sewerage management

Group

Maeda Corpporation（Representative Company）︓
Design, construction, maintenance and operation
ＮＪＳ(Member)︓Design,maintenance and operation

Selection Style Open proposal
PeriodBusiness
Content

Conditions

・Facility Construction︓Until September 30, 2025
・Power supply︓20 years from October 1, 2025

Fuji City Eastern Purification Center Facility design and construction
 Facility design, construction facility operation and maintenance Supplying electricity to the Eastern Purification Center Verification of greenhouse gas emission reduction effect during
operation period
 Operation explanations for facility managers, creation of manuals, etc.

Surplus Power(Selling electricity
to outside parties)

Capacity︓① Solar power generation equipment: 800kW or more (PCS capacity)② Storage battery: 400kWh or more

Contract price cap: 26 yen per kWh (tax included)

Subsidies

Subsidies for decarbonization and renewable energy (MOE)《Grant rate》 ・Maximum 1/2 of solar power generation equipment
・Maximum 2/3 of battery price

FuturePlan

Solar power generation PPA and storage battery utilization business
Proposal and participation consideration for water supply and seweragebusiness and WATER PPPPower Usage

Storage Buttery
DIscharge

Self Consumption
60% more)

Storage Buttery

Private Power
Consumption

Storage Buttery
DIscharge

Solar power generation simulation

31

Segment Highlights
Building
Construction

Civil
Engineering

InfrastructureManagement

InfrastructureManagement

Road Civil
Engineering

Machinery

Maeda Corp.

Japan Wind Development

Maeda Corp.

MAEDA ROAD

Maeda Corp.

MAEDA SEISAKUSHO32

Infrastructure Management(Japan Wind Development)

11.Infrastructure Management（Japan Wind Development consolidated ）Performance• Operating income of Japan Wind Development Group in FY24 is expected to be 1.5 billion yen.
The company plans to sell some projects while making steady progress in developing others.
• We sill steadily increase revenues from power sales and O&M, in addition to sales, while
increasing the pipeline of new development projects.
(Billions of Yen)

(Billions of Yen)

FY24 Forecast （JGAAP）
Net sales

OperatingOperating
ProfitProfitEstimateof Japanof Japan
WindWindDevelopment
Development
Group
Group

8.7

Targeting upside throughOperating profit +Profit on salethe sale of projects andbusiness growth(Billions of Yen)
profit on sales＋Electricity sales income
20＋O&M Business Profit
10

Development

6.4

O＆M

2.0

Others0.4

Gross profit

5.5(62.6%)Development

4.4(68.4%)

O＆M

1.0(51.6%)

Others

0.1

SG&A

3.9

(45.1%)

Operating profit

1.5(17.5%)

Ordinary profit

1.5(17.7%)Net income

1.0(11.2%)

16
8
12
6
8
4
4
2
-

1.5

1.5

1.5

1.5

FY24

FY25

FY26

FY27

2.0

2.0

FY28

FY29

FY30

33

Infrastructure Management
インフラ運営(⽇本⾵⼒開発)(Japan Wind Development)

Reference Goodwill and PPA Assets under IFRS
Premium on acquisition price of Japan Wind Development
Goodwill

139

PPA Asset（FIT rights etc,）【Goodwill】• Goodwill is not amortized under IFRS
(under Japanese GAAP, goodwill is amortized over 5-20 years from acquisition)• However, when a project is sold, goodwill is prorated as cost of sale.
As cost of sale
Goodwill to be prorated＝①Value of the sale projectSale project

Goodwill
139

×【Billions of Yen】

①Value of the sale project②Value of all assets held at timeof saleProjects subject to valuation at acquisition

96 (Billions of Yen)
FY24 Operation Profit of JWD
BeforeConsolidation

1.5
Prorated goodwill
1.4

After
Consolidation 0.1【Billions of Yen】

New development projects②Value of all assets held at time of sale

【PPA Asset（FIT rights etc,）】• Amortization from the start of electric power sales.
• When a project is sold, the PPA assets of the project become cost of sale.

Future Policies
 How to increase the number of development projects that are not subject to valuation anddilute the impact of goodwill that is prorated as cost of sale is important.
 We will determine the timing of the sale based on a balance of PL, BS, and cash flow.
3412-1.Projects that Japan Wind Development is working on

Infrastructure Management(Japan Wind Development)

Approximately 3,400MW power generation project is underway
from upstream to downstream
Underdevelopment
Expectedbid・Not FIT/FIP
2,200MWUnder
development
FIT/FIP（Successful
bid included）
900MW

Planning/Development/Design

Construction
start

In
operation
180MW

Construction

Operation
start

Planning to
replace
150MW

Electricity
sales/Operation/
Maintenance35

12-2. Projects that Japan Wind Development is working on
POINT

Infrastructure Management(Japan Wind Development) We handle all phases of the wind power business, from development to operation.

 Community coexistence comes first. Developed in constant dialogue with the local
community
Under development

In operation

180 MW(FIT/FIP)

900 MW

Under Development（Expected bid・Not FIT/FIP）

2,200 MWAkita Pref.

Hokkaido

Under dev

1 powerplant（50MW）

Under dev

Under dev

Tsukikoshi genya
And 6 Power plant（323MW)

4 power plant（1,192MW）

Aomori Pref.

Ishikawa Pref.
In operation

In operation

In operation

Suzu No.1（15MW）

Suzu No.2①（15MW）

Under dev

Suzu No.2② 1 power plant（42MW）（15MW）In operation

In operation

In operation

In operation

Ooyama
（9MW）

Meiwa
（5MW）

Nakayama（8MW）

Touhaku（18MW）In operation

In operation

Futamata（51MW）

Fukkoshi（20MW）

Nakadomari（7MW）

Under dev

#E4E8EC

Tottori Pref.

In operation

Okusesoube
And 10 power plant（417MW）

Under dev

4 power plant（923MW）

Fukushima Pref.
Under dev

Sanmoritouge（39MW）

Nagasaki Pref.
Under dev

Ukujima（100MW）

Chiba Pref.
In operation

In operation

In operation

In operation

In operation

Choshiohama（2MW）

Choshibyoubu（2MW）

Tateyama（2MW）

Ichihara（2MW）

Kamogawa（2MW）

Aichi Pref.
In operation

Under dev

Atsumi（11MW）

TaharaNakayama（19MW）

36

Infrastructure Management(Japan Wind Development)

13.Full details of governance reform• Based on INFRONEER HD's governance system, we will develop "regulations/systems" and"systems/personnel" to strengthen governance.
• Continue to implement measures to strengthen governance
INFRONEER HD
Reflects INFRONEER HD’s governanceJapan Wind Development Group
Establishment of regulations
and systems• In addition to risk management
regulations,establishment of internal regulations,etc.
• Established JWD Group Code of Conduct.
• Compliance training conducted.
• including the establishment of the
INFRONEER Group Compliance Manual,
Implement education and training for executives
and employees.
• Compliance hotline established in JWD Group.

Establishment of systems
and personnel• Start of effective supervision by the Board of
Directors.
（A total of three people, including the executive
officer of INFRONEER, the director of financial
strategy, and the executive officer of Maeda
Construction, are appointed as directors of JWD.）• Newly established Internal Audit Department
and Legal/Compliance Department.
• Established an internal audit system incollaboration with the Infronia Management
Audit Department, which is responsible for theinternal audit function of the entire group.

37Segment Highlights
Building
Construction

Civil
Engineering

InfrastructureManagement

InfrastructureManagement

Road Civil
Engineering

Machinery

Maeda Corp.

Japan Wind Development

Maeda Corp.

MAEDA ROAD

Maeda Corp.

MAEDA SEISAKUSHO

38

Road Civil Engineering

14. Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated)• FY23 FY

Increase in sales and profit compared the previous year due to the price passthrough of the
portion attributed to the rising cost of materials.
• After FY24 In order to achieve the plan, the profit margin of orders received is set in the Construction
business. In the Manufacturing and sales business, appropriate sales unit prices will be set
on a case-by-case basis.

Full Year※Net sales

Gross profit

Operating profit

Gross profit margin_forecast

Gross profit margin_results

Operating profit ratio_forecast

Operating profit ratio_results（Billions of yen）

250

256.0

248.7

235.6
11.1%

200

12.8%

11.5%

261.5

14.3%

12.6%

10.3%
10.3%

150

8.0%

6.4%
5.7%

100

50

5.0%

24.3

11.7

7.5%

6.3%

4.6%

25.6

37.5

32.2
16.2

11.5

19.7

0
FY21

FY22

FY23

*The figures are same as Maeda Road (consolidated) in the past, and do not take into account theconsolidation and elimination within the INFRONEER Group.

FY24（Forecast)

39

15.Orders Received, Net Sales, Gross Profit, and Operating Profit

Road Civil Engineering(MAEDA ROAD Consolidated Construction business)• FY23 FY
Increase in sales and profit compared the previous year due to order intake
activities that emphasize gross profit margin.
• After FY24 We aim to increase sales and profits by setting the profit margin of orders received.
Orders Received ※1
Others ※2(Billions of Yen)
200

162.1

175.1

Public185.9

Net sales and Gross profit※1
Private186.3

Net sales

Gross profit

Operating profit

Gross profit margin_forecast

Gross profit margin_results

Operating profit ratio_results(Billions of Yen)
162.1

（Forecast 170）

Full Year

150

150.0
9.8%

100

141

149

154

156

100.0

9.2%

6.5%

9.7%
8.6%

12.0%
11.8%

13

18

22

FY21

FY22

FY23

20

13.3%

8.9%

7.0%

50.0

50

0

180.0

176.4

171.0

14.9 10.5

16.5 12.0

21.1 15.6

23.9 18.4

FY21

FY22

FY23

FY24

0.0
FY24
(Forecast）（Forecast)*1 The figures are same as MAEDA ROAD (consolidated) in the past, and do not take into account the consolidation and elimination within the INFRONEER Group.
*2 Others: Orders which Subsidiaries got (mainly public construction) and elimination within segment transactions.

40

Road Civil Engineering

16．Net Sales, Gross Profit, and Operating Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business)• FY23 FY
Increase in sales and profit compared the previous year due to sales price reductions.
• After FY24 We will set appropriate unit prices for mixtures sales in response to the external
environment and improve the profitability of the crushing business.
Full Year※Net sales
Operating profit
Gross profit margin_results(Billions of Yen)
100

80

81.5

79.7

77.1

72.9

Gross profit
Gross profit margin_forecast
Operating profit ratio_results

60
14.4%

14.8%

16.7%

13.9%

13.7%

11.6%
40

20

12.6%

11.5%

9.3%

8.5%

9.2

6.8

8.9

6.5

11.6%

11.1

9.2

13.6

11.1

0
FY21

FY22

FY23

FY24（Forecast)*The figures are same as Maeda Road (consolidated) in the past, and do not take into account the consolidation and elimination within
the INFRONEER Group.

41

Road Civil Engineering

17．Topics “Reduction of CO2 emissions by introducing CO2-free electricity ”
POINT Converting Electricity at All Maeda Road Sites to CO2-Free Electricity
in Compliance with RE100
 Selling all Maeda Road products as low-carbon products through the introductionof CO2-free electricity

EFFECT①

Reduce CO2 emissions by 60,000 tons per year

EFFECT②

Started sales of low-carbon mixtures and low-carbon roadbed materials at all plants

Low-carbon mixtures and low-carbon roadbed materials are products manufactured
using one or more of the following methods
1.

Reduced shipping temperatures with LEAB technology

2.

CO2-free power for RE100 compliance3.

Low CO2 emission of fuels by co-firing biomass fuels

Visualization of customers' CO2 reductions through our proprietary action reports

・ Last year, 4.6 million tons of low-carbon mixtures materials were produced
Visualized 7,700 tons of CO2 reduction
・ Many municipalities and companies use the Action Report(418 municipalities, 1,364 companies)→From this ﬁscal year, customers who purchase products other than asphalt
mixtures can also visualize their CO2 reductions.
42Segment Highlights
Building
Construction

Civil
Engineering

InfrastructureManagement

InfrastructureManagement

Road Civil
Engineering

Machinery

Maeda Corp.

Japan Wind Development

Maeda Corp.

MAEDA ROAD

Maeda Corp.

MAEDA SEISAKUSHO

43

Machinery

18．Net Sales, Gross Profit, and Operating Profit (MAEDA SEISAKUSHO Consolidated)• FY23 FY

Both sales and income increased YoY due to strong sales of Komatsu products andin-house products including crawler cranes.
• After FY24 A certain degree of stability is expected due to demand for infrastructuredevelopment and renewal.
Full Year(Billions of Yen)

Net sales
Gross profit margin_forecast
Operating profit ratio_results

50

37.1

19.8%

39.4

Operating profit
Operating profit ratio_forecast

22.4%

21.4%

20.3%

20.7%
40

Gross profit
Gross profit margin_results

41.9

20.9%

42.0

19.8%

30

20

4.8%
10

4.4%

4.7%
7.3

1.7

7.8

4.2%

5.3%
5.0%
8.7

1.7

2.2

5.2%
9.4

2.2

0
FY21

FY22

FY23

FY24（Forecast)44

Machinery

19．Net Sales, Gross Proﬁt, and Operating Proﬁt※1 (MAEDA SEISAKUSHO Consolidated)• FY23 FY

Sales of Construction Machinery increased due to the elimination of delivery delays and improved selling
prices. As for Industrial machinery & Steel Products, sales of crawler cranes and other in-house products
remained strong.
• After FY24 We will focus on high value-added products, such as those that are environmentally friendly in terms ofbattery specifications, etc. Overseas, sales and profits are expected to increase due to the expansion of thedealer network.

Construction Machinery※2
Net sales
Operating profit
Gross profit margin_results
Operating profit ratio_results

Industrial machinery &Steel Products※3

Gross profit
Gross profit margin_forecast
Operating profit ratio_forecast(Billions of Yen)
30
24.8

23.6

15

23.7

13.6
11.2

Full Year

18.0%

17.4%
16.1%

8.4%
7.9%
4.0
2.0

17.2%
17.3%

17.2%
10

Gross profit
Gross profit margin_forecast
Operating profit ratio_forecast(Billions of Yen)

23.8
20

Net sales
Operating profit
Gross profit margin_results
Operating profit ratio_results

3.8

7.9%

6.9%

6.8%

3.8

1.6

7.3%
4.0

5

0
FY22

FY23

FY24
(Forecast)

6.5%
5.0%

1.7

0
FY21

18.8%

14.7
21.1%

25.3%
22.1%

24.3%

19.7%

15.6%

7.1%
1.6

10

20.3%

15.7

2.1 0.5
FY21

6.8%
6.8%
2.8 0.9
FY22

11.3%
6.9%
3.7 1.6

FY23

9.5%
3.8 1.5

FY24(Forecast)*1 The figures are only construction machinery, industrial machinery and steel products, etc. which are the main businesses in the Machinery segment.
*2 Mainly sales, service and rental of Komatsu Ltd. products.
*3 Mainly planning, product and sales of own products such as cranes.
45

機械

20．Topics : Efforts to expand the Overseas market
Points Expand partnerships and sales network
 Sales promotion of new models

MAEDA AMERICA Activities【Construction of the dealer to expand sales(track record and target cities)】

America Sales・Number of new dealers
120
12

100

60

6

40
20
0

10

9

25 24
FY21

40 43
FY22

110

100

5
53

Number of new dealers

Unit Sales

80

FY22 Results
FY23 Results
Target cities【Toward a full lineup of battery specifications for new models (for US)】MC305CB‐5 and MK3053CB to be released this year

FY23

FY24

0

Unit Sales_Forecast
Unit Sales_Result
Number of new dealers（cumulative total）

Largest construction machinery exhibitions in Europe“Intermat 2024”
2024.04.24~2024.04.27

Paris, France

To gain further market share in the European market,
Fully electric cranes that achieve zero emission, Other
crane models will be unveiled at the show.
46

Appendix47

Re-posting of FY23 3Q material

IFRS Transition Schedule and Major Changes Associated with Transition
Accounting Standards
applied

FY23
1Q

2Q

Consolidated
Performance (Forecast)
Consolidated
Performance

3Q

After FY24

4Q

JGAAP／IFRS
JGAAP

IFRS

IFRS※

※Cumulative total for 1Q~4Q is disclosed at the time of 4Q results.
(Billions of yen)

Key changes resulting from the transition to IFRS
1.

Accounting treatment of goodwill
JGAAP Amortization of goodwill
IFRS
No amortization of goodwill

Goodwill
amortization（annual）

〜FY22

FY23〜

JGAAP

IFRS
6.6

0.0

Decrease JPY 6.6 billion in SG&A on P/L on an annual basis.

Goodwill amortization will be eliminated from FY23, and SG&A will be reduced by JPY 6.6 billion
on P/L. ※JPY 1.7 billion in depreciation of machinery arising from M&A remains.
2. Depreciation expense of tangible fixed assets
The depreciation method will be changed from declining balance method to straight-line
method. The assets that have already been acquired and were depreciated using the decliningbalance method will be retrospectively depreciated using the straight-line method for past fiscal
years. The impact on our P/L is expected to be limited.
3. Investment Securities
Under JGAAP, gains or losses on sales are recorded in P/L, whereas under IFRS, gains or losses
on sales are not recorded in P/L .
※ If Recognition of valuation diﬀerences in ‘comprehensive income (FVOCI)' is selected.

48

Re-posting of FY23 3Q material

Japan Wind Development Co., Ltd.（JWD）Becomes Subsidiary•

We completed the acquisition of JWD's shares on January 31st, making the company a wholly owned subsidiary.
On the same date, we secured a loan of 218.4 billion yen.

•

We plan to incorporate JWD's financial results into our group's consolidated financial results from February of FY23.

•

JWD‘s performance will be categorized under the Infrastructure Management Segment.

Segment

Until FY23 January

FY23 February Onward

Building Construction
Segment

MAEDA CORP. Building construction segment MAEDA CORP. Building construction segment（includes of the real estate sector）（includes of the real estate sector）

Civil Engineering
Segment

MAEDA CORP. Civil engineering segment（includes of the real estate sector）

MAEDA CORP. Civil engineering segment（includes of the real estate sector）

Road Civil
MAEDA ROAD（Consolidated）
Engineering Segment

MAEDA ROAD（Consolidated）

Machinery Segment

MAEDA SEISAKUSHO（Consolidated）

MAEDA SEISAKUSHO（Consolidated）

InfrastructureManagement
Segment

MAEDA CORP. Infrastructure management
segment
Aichi Road Concession
Silent Partnership Aichi Road Concession
Miotsukushi Industrial Concession
Miura City Public Sewerage Concession

MAEDA CORP. Infrastructure management
segment
Japan Wind Development（Consolidated）
Aichi Road Concession
Silent Partnership Aichi Road Concession
Miotsukushi Industrial Concession
Miura City Public Sewerage Concession

OthersJM
Thai Maeda Corporation Limited
FBS
Fujimi Koken

JM
Thai Maeda Corporation Limited
FBS
Fujimi Koken

49

Re-posting of FY23 3Q material

Capital Financing Methods• At a meeting of the Board of Directors held on February 9, 2024, INFRONEER resolved to partially amend the
Articles of Incorporation (an agenda item to be submitted to the General Meeting of Shareholders) and to
submit the Shelf Registration Statement for Series 1 of Bond-type Class Shares.
• The purpose of the resolution is to amend the Articles of Incorporation to have bond-type class shares as one ofthe options to raise equity capital in order to make permanent the bridge loan associated with the acquisition ofJapan Wind Development as a subsidiary.
Comparison of Capital Financing Methods
Subordinated debt andsubordinated loans

Bond-type Class Shares

Public Offering

Accounting Treatment

Debt：100%

Equity：100%

Equity：100%

Rating Treatment

Debt：50%
Equity：50%

Debt：50%
Equity：50%

Equity：100%

No dilution occurs.

No dilution occurs.
Novoting/conversion（
rights）

Dilution occurs.

Dilution of voting rights
Impact on major financial
indicators

Impact is limited.

No dilution occurs.

（Decrease only for bond-typeclass shares）

Dilution occurs.

Participation rights individends

non-participating

non-participating

participating

Issuer's call option

A

A

N/A

Listing

N/A

Plan to apply for listing

listed stock（ROE, EPS, etc. for common
stock）

50

Re-posting of FY23 3Q material

Impact on voting rights of existing shareholders and financial indicators• Bond-type class shares do not dilute the voting rights of current ordinary shareholders andwould have a limited impact on financial indicators.
VotingRightsCommon stock
Dilution

Impact on major
financial indicators（As compared toPre-Issuance）

No voting rights
No dilution of voting rights

Conversion
Rights

No conversion rights into common stock

Dividends

Dividends are limited to the preferred dividend to be determined at the time of issuance, andonly holders of common stock have the right to participate in dividends other than thepreferred dividend.

ROE（Commonstock）Net income− Preferred dividend

EPS（Commonstock）Net income− Preferred dividend

PBR（Commonstock）

D/E ratio

Net worth (common stock)

Number of outstanding stocks（common stock）

Impact is mainly limited to theextent of preferred dividends

Market capitalization（common stock）
Net Assets − Net assets related to bond-type classshares−Preferred dividendInterest-bearing debt
Shareholders’ Equity（Including class shares）

Contribution to improved
financial soundness51

Maeda Corp.

[Non-Consolidated] Maeda Corp. FY23 Results and FY24 Full-Year Forecast（Not including SPCs in Infrastructure Management segment）(Billions of Yen)
FY23

FY22
①Results

FY24④Forecast②Revised③Results

375.9

401.7

436.1

60.2

34.4

458.4

22.3

Total

215.4

238.5

272.8

57.4

34.3

298.5

25.7

Domestic

214.5

235.0

269.9

55.4

34.9

292.5

22.6

Overseas

0.9

3.5

2.8

1.9

-0.7

6.0

3.2

Total

151.4

155.0

161.5

10.0

6.5

150.3

-11.2

Domestic

151.3

154.6

161.5

10.2

6.9

150.2

-11.3

Overseas

0.1

0.4

-0.1

-0.2

-0.5

0.1

0.2

Infrastructure Management

7.2

6.7

0.3

-7.0

-6.4

8.1

7.8

Real Estate

1.9

1.5

1.6

-0.2

0.1

1.5

-0.1

Gross Profit

58.9
22.9
22.7
0.2
27.9
27.0
0.9
7.2
0.9
29.0
29.9
32.3
30.2

6.7
-0.4
-0.5
0.1
14.2
15.7
-1.5
-6.9
-0.2
4.8
1.8
1.7
-4.7

5.9
-2.8
-2.8
0.0
15.1
15.7
-0.5
-6.4
-0.1
0.8
5.0
5.4
3.0

Net Sales
Bulding
Construction
Civil
Engineering

Bulding
Construction
Civil
Engineering

Total
Domestic
Overseas
Total
Domestic
Overseas

Infrastructure Management

Real Estate
SG＆A
Operating profit
Ordinary profit
Net income(15.7%)(10.6%)(10.6%)―(18.4%)(17.9%)―(99.5%)(48.6%)(7.7%)(8.0%)(8.6%)(8.0%)

59.7 (14.9%)
25.3 (10.6%)
25.0 (10.6%)
0.3(7.1%)
27.0 (17.4%)
27.1 (17.5%)-0.1 -(16.7%)
6.7 (100.0%)
0.8 (50.0%)
33.0(8.2%)
26.7(6.6%)
28.6(7.1%)
22.5(5.6%)

65.6
22.5
22.2
0.3
42.1
42.7
-0.6
0.3
0.7
33.8
31.7
34.0
25.5

(15.0%)(8.2%)(8.2%)(10.0%)(26.1%)(26.5%)―(96.1%)(42.5%)(7.8%)(7.3%)(7.8%)(5.9%)+/-(③-①) +/-(③-②)

68.1 (14.9%)
31.3 (10.5%)
30.7 (10.5%)
0.6 (10.0%)
28.0 (18.6%)
28.0 (18.6%)
0.0(0.0%)
8.1 (100.0%)
0.7 (46.7%)
35.8(7.8%)
32.3(7.0%)
33.9(7.4%)
24.8(5.4%)+/-(④-①)

2.5
8.8
8.5
0.3
-14.1
-14.7
0.6
7.8
0.0
2.0
0.6
-0.1
-0.7

52

MAEDA ROAD

[Consolidated] MAEDA ROAD

FY23 Results and FY24 Full-Year Forecast(Billions of Yen)

FY22

FY23

①Results②Revised

FY24③Results+/-(③-①)+/-(③-②)④Forecast+/-(④-③)

Net sales

248.7

246.8

256.0

7.4

9.2 261.5

5.5

Construction Business

171.0

166.0

176.3

5.3

10.3180.0

3.7

Manufacturing and Sales Business

77.1

80.8

79.0

1.9

-1.8 81.5

2.5

Others

0.6

0.0

0.7

0.2

0.7

-0.7

Gross profit

25.6(10.3%)

29.7(12.0%)

32.2(12.6%)

6.6

2.5 37.5(14.3%)

5.3

Construction Business

16.5(9.7%)

18.4(11.1%)

20.6(11.7%)

4.1

2.2 23.9(13.3%)

3.3

Manufacturing and Sales Business

8.9(11.6%)

11.3(14.0%)

11.4(14.4%)

2.5

0.1 13.6(16.7%)

2.2

Others0.2(34.6%)

0.0

-

0.3

(36.4%)

0.1

0.3

SG&A

14.2

(5.7%)

15.7(6.4%)

16.0(6.3%)

1.9

0.3 17.8(6.8%)

1.8

Operating profit

11.5(4.6%)

14.0(5.7%)

16.2(6.3%)

4.7

2.2 19.7(7.5%)

3.5

Ordinary profit

11.9(4.8%)

14.0(5.7%)

16.6(6.5%)

4.7

2.6 19.9(7.6%)

3.3

Net income

9.4(3.8%)

9.2(3.7%)

11.3(4.4%)

1.9

2.1 13.2(5.0%)

1.9

-

-0.3

-

53

MAEDA SEISAKUSHO[Consolidated] MAEDA SEISAKUSHOFY23 Results and FY24 Full-Year Forecast(Billions of Yen)

FY22

FY23

FY24

①Results②Forecast③Results

Net sales

39.4

40.7

41.9

2.5

1.2

42.0

0.1

Construction Machinery

23.6

23.3

24.8

1.2

1.5

23.7

-1.1

Industrial Machinery and Steel Products

13.6

14.9

14.7

1.1

-0.2

15.7

1.0

Care products and Others

2.2

2.4

2.2

0.0

-0.2

2.5

0.3

Gross profit

7.8(19.8%)

8.7(21.4%)

8.7(20.8%)

0.9

0.0

9.4

(22.4%)

0.7

Construction machinery

3.8(16.1%)

4.0(17.2%)

3.8(15.3%)

0.0

-0.2

4.0

(16.9%)

0.2

Industrial Machinery and Steel Products

2.8(20.6%)

3.3(22.1%)

3.7(25.2%)

0.9

0.4

3.8

(24.2%)

0.1

Care products and others

1.1(50.0%)

1.4(58.3%)

1.1(50.0%)

0.0

-0.3

1.4

(56.0%)

0.3

SG&A

6.1

(15.5%)

6.6(16.2%)

6.5(15.5%)

0.4

-0.1

7.2

(17.1%)

0.7

Operating profit

1.7(4.3%)

2.0(4.9%)

2.2(5.3%)

0.5

0.2

2.2

(5.2%)

0.0

Ordinary profit

1.8(4.6%)

2.1(5.2%)

2.4(5.7%)

0.6

0.3

2.3

(5.5%)-0.1

Net income

1.4(3.6%)

1.5(3.7%)

1.7(4.1%)

0.3

0.2

1.5

(3.6%)-0.2+/-(③-①) +/-(③-②)④Forecast+/-(④-③)

54

⼤表

INFRONEER Group’s FY23 Results and FY24 Full-Year Forecast(Millions of Yen)

Maeda Corp.
※1

Consolidated
subsidiaries(Other Segment)

FY22
Results

FBS
FY23
Results※1

FY24
Forecast

Fujimi Koken
FY22
FY23
FY24
Results
Results
Forecast

※2

JM
FY23
Results

FY22
Results

FY24
Forecast

15,855

14,856

16,0008,848

11,965

13,49021,967

24,54326,000Operating profit

426

174

250

192

446

513

493

272

600

Ordinary profit

443

167

265

216

528

587

514

291

620

Net income

262

112

173

311

482

401

343

204

340

Net sales

Maeda Corp.
Consolidated
subsidiaries(Infrastructure
Operations segment)

Aichi Road Concession ※2
FY22
FY23
FY24

Miotsukushi Industrial Concession ※2 Miura City Public Sewerage Concession ※2

FY22

FY23

FY24

FY22

FY23

FY24

Results

Results

Results

Forecast

Results

Results

Forecast

Results

Forecast

Net sales

14,272

14,985

15,982

1,338

1,405

1,721

ー

197

242

Operating profit

2,473

1,893

2,131

198

235

124

ー

39

14

Ordinary profit

1,274

748

1,041

185

222

113

ー

33

8

Net income

1,163

682

948

122

156

75

ー

21

6

Equity method
affiliates

Toyo Construction ※2
FY22
FY23
FY24
Results
Results
Forecast

Hikarigaoka Corporation ※2
FY22
FY23
FY24
Results
Results
Forecast

149,926

162,011

165,000

3,986

3,970

4,000

Operating profit

7,823

9,279

10,000

753

793

610

Ordinary profit

7,341

8,659

9,700

1,841

2,908

2,040

Net income

4,869

6,534

7,000

1,417

2,301

1,390

Net sales*1 Japanese GAAP, consolidated by each company *2 Japanese GAAP, non-consolidated

55

Infrastructure Management

Business Model of Infrastructure Operations

Re-posting of FY22 3Q material• Infrastructure operations is business that gain profits on every steps from upstream todownstream of infrastructure management.

⑤Sale(+α) Fund, AM→Profit on sale
→ Dividend, AM Fee

Value up!!

④O&M
③EPC
②Investment① Development→O&M fee→Construction revenue→Dividend→Profit on development• Profits can be obtained from 5 stages of infrastructure operations• We can capitalize our know-how of construction in development, EPC andO&M stages.
56Re-posting of FY23 1Q material

Infrastructure Management
インフラ運営

Differences between “Contribution to profit” and “Segment profit”• ”Contribution to profit” is the actual contribution for managerial accounting purposes, which is the sum of construction Gross profit,
other income, and operating income of individual consolidated subsidiaries. This is in consideration of the fact that the profit
presentation points on the consolidated basis differ depending on the investment ratio and sale scheme.

• “Segment profit (Infrastructure management)" in the consolidated financial statements is operating profit for financial accounting
purposes after eliminating construction profit and other items included in contribution to profit and common administrative expenses,
but before non-operating/extraordinary items.

Correspondence tosegment profit

Gross profit on
construction of Aichi
Road Concession/Happo Wind Power(Financial Accounting Arrangements)
consolidation elimination ＊Construction profit of Maeda Corp. isunrealized profit in proportion to its（recorded in otherinvestment ratio. Profit will be recognized
segments）
over time at the time of operation and sale.

Segment Profit(Infrastructure Management)(financial accounting)︵︶Contribution to profit managerial accounting

個別業績貢献Contribution to other（他セグメント計上）
segments• O＆M /development(O＆M/EPC• EPC
andother business etc.)• 開発等事業 等(Project Examples）

・Aichi Road Concession
・Miotsukushi Industrial Water
Operating profit ofConcession
Operating profit ofconsolidated subsidiaries
consolidated subsidiaries ・Ozu Biomass(Consolidated profit of SPCs
(Consolidated profit of SPCs
＊Investment
profit(investmentin
on infrastructure
on infrastructure（インフラ運営に係る
anonymous association, equity, etc.) frommanagement)
management)
Maeda Corp. to consolidated subsidiaries is
SPC連結利益）

連結⼦会社の営業利益

not included in the contribution to profit
because it overlaps with operating profit.

Other profit
その他収益(profit on sales/Non-（売却益、⾮連結
consolidated
SPC stock
dividends, etc.)
SPC株式配当等）

Other profit
Profit on sale of equity interest(Profit on sales of anonymousin anonymous association inassociation)
Happo Wind Power△SG&A

stock dividend of
SIAC/AICEC

Non-operating income/loss ＊Deduct common expenses, etc. of Maeda's head office(Equity method investment ＊Net income of affiliated companies
gain)

Profit on sale of equity
interest in Kai Solar LCC

Extraordinary income/loss stocks or power generation equipment (It depends(Profit on sales of fixed assets) on the development process and buyer preferences）※Contribution to profit does not take into account SG&A such ascommon expenses at the Maeda head office.

＊When the subject of the sale is a fixed asset such as

57

INFRONEER Group Employee Stock Ownership Plan•••

Re-posting of FY23 1Q material

We will implement the Employee Stock Ownership Plan (“J-ESOP”), which distributes INFRONEER
Holdings’ stocks to all employees of INFRONEER Holdings’ and the Group companies, subject tocertain criteria.
The purpose of this program is to foster connections between the employees and the company,
improve the stock price, and to create stronger sense of commitment and motivation among theemployees to enhance the performance of the INFRONEER Group.
The amount of stocks distributed will be determined in accordance with the Group’s net income.
StocksStarting from FY24！
 Align the interest of the employeeswith those of the shareholders

StocksStocksStocksMaeda Corp

Maeda Road

Maeda
Seisakusho

StocksStocksStocksConsolidated
Subsidiaries

Consolidated
Subsidiaries

Consolidated
Subsidiaries

Distribute stocks to all group companies' employees
subject to certain criteria (approx. 8,000 employees)

 Incentivize to increase INFRONEERGroup’s profit
 Increase commitment to the
management
 Increase employees’ interest to thestock market
 Strengthen ties between theemployees and the INFRONEER
Group
58

Growth Strategy: Realization of an integrated infrastructure service company

59

M＆A
IT・DX strategy(Accenture)

Strategic
Investment(TOSHIBA etc.)
Engineering
Capabilities

1st place intechnical
evaluation points

High designbuild ratio
Upstream
project
origination

Strict orderdiscipline

I. Growth
Investment

II. Construction

Financial
Know-how
Collaboration with
global partners

III. “De-construction”

CapitalRecycleRenewable Energy
Solar|Wind(Onshore&Off
shore)|Biomass
Concession

Airport/Road/Exhibition Hall
Arena/Water and SeweragesystemGroup-wide sales
structureEngineering Capabilities✕Finance Know-how

Challenge the status quo
Strengthening of GovernanceHoldings Structure・Company with aNomination Committee, etc.
Stock benefits toall group employees

Ⅳ. Strengthening of corporate
cultureSynergy
Sharing management
information

Improvement offundraising capability(Rating)
Promotion of Shared
Services

59Selected as a component of the “MSCI Japan Equity ESG Select Leaders Index”

ESG

 The GPIF (General Pension Investment Fund), one of the world's largest pension fund management
organizations, has selected us as a constituent of the MSCI Japan Equity ESG Select Leaders Index*1
for ESG investment.
 We received an "A" rating in the MSCI ESG rating for 2024.

DISCLAIMER STATEMENTTHE USE BY INFRONEER OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF INFRONEER BY MSCI. MSCI SERVICES AND DATA ARE
THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUTWARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

※1 Companies with relatively high ESG ratings from their respective industries are selected for this index from among the constituents ofthe parent index (MSCI Japan Equity IMI Index) created by Morgan Stanley Capital International (MSCI), Inc. of the United States.
https://www.msci.com/our-solutions/indexes/nihonkabu-esg-select-leaders-index

60

News1Taking on the challenge of the future of infrastructureservices! Birth of the corporate character "Caretan”

The “Caretan,” our spokesperson, was created to communicate thesocial issues surrounding infrastructure and our efforts and services
to solve them in a more familiar and easy-to-understand manner. We
hope to share our vision of “a world where there‘s no limit to what
can be delivered by infrastructure services" with our many
stakeholders, and together we will challenge the status quo for the
future of our infrastructure.
Event Website
A video introducing the characters is available on our event website.
Please check it out!
EventW ebsite URL ：https://w w w .infroneer.com /jp/charakoubo/ ©キャレたん

INFRONEER Holdings Official Facebook & Instagram
PR Page「InfroneerAtoZ」

News2• On Instagram, we showcase INFRONEER believers
challenging the status quo, and post cartoons aboutcertain construction sites.
• On Facebook, we share information mainly on
announcements of seminars and lectures.
Please follow us and like! our posts on our Facebook
Facebook
Instagramand Instagram pages!
• Please also check out President Kibe's dialogue articles Instagram URL ： https://w w w .instagram .com /infroneer.hd/
in the "Infroneer AtoZ" section of the PR page on our Facebook URL ：https://w w w .facebook.com /infroneer.hd/
InfroneerAtoZ URL ：https://w w w .infroneer.com /jp/com pany/atoz/
website.

News3

Kibe-log〜Back numbers〜

President Kibe shares his views with all
stakeholders about INFRONEER's visions and thekind of society we aim to achieve.

Kibe-log

Vol.7: INFRONEER’s views on ”DX”
Vol.8: The “Availability Payment Method” is needed for infrastructure in Japan
Vol.9: The digital world INFRONEER aims to create
Vol.10: Challenging corporate culture
Vol.11: Integration of technologies and finances I learned from construction sites
Vol.12: Freedom and accountability in workplace
Vol.13: Reasons for the acquisition of Japan Wind Development Co., Ltd.

Kibe-log URL ：https://w w w .infroneer.com /jp/com pany/topblog.htm l61

BLANK62

【Disclaimer】• This financial presentation document is originally in Japanese and has been translated in English. Any
texts, figures and descriptions etc. in Japanese document is the original and the English document is forreference purposes only. In case of any conflict or inconsistency between these two documents, theJapanese documents shall prevail.
•The figures in this document are based on financial results as of May 15, 2024, and rounded to thenearest 100 million yen.

•

While every attempt has been made to ensure the accuracy of the information, the forecasts containedin this document are based on judgments made with information available as of February 9, 2024, andare subject to risks and uncertainties that may cause actual results to vary.

インフラの未来に挑む
Challenge the status quo