Fiscal year ended March 31, 2024

Financial Results Briefing Material
Ahead of the Curve
On Top of the Market

Contents
1

Summary of financial results
for the fiscal year ended March 31, 2024

Financial results forecasts
2
for the fiscal year ending March 31, 2025

3 Topics
FY2024–FY2026

4 Medium-term Management Plan
5 Corporate profile

1
Summary of financial results
for the fiscal year ended March 31, 2024

Business environment in FY2023■The economy remained on a recovery trend, backed by social and economic activities
regaining a greater degree of normalcy after COVID-19 was reclassified to a Class 5 infectious
disease, improvement in the employment and income environment, and increasing demand
from foreign visitors to Japan. On the other hand, the economic outlook remains uncertain
amid growing tension in global affairs and spiking energy prices.
■Government investments in construction remained firm and private capital investments
showed a recovery trend as corporate earnings improved. However, the businessenvironment remained challenging due to the increase in construction material prices andpersonnel costs, in addition to the intensifying competition for contracts.

Major initiatives in FY2023
1 Realize the six management strategies in the medium-term management plan
“Build a firm foundation for profitability,” “expand the business domains,” “promote technology development,”“promote digital transformation (DX),” “improve engagement,” and “strengthen governance”

2 Accurately grasp social changes and always take on challenges

3

Financial results summary(consolidated and non-consolidated)(Millions of yen)

Consolidated
Net sales
Gross profit
SGA expenses
Operating profit
Ordinary profit
Profit attributable toowners of parent

Dividends

Non-consolidated

YoY change YoY change(Amount)(%)

Initialforecast

Achievement
ratio

▲0.6%
9.2%
5.3%
15.6%
15.1%

120,000
―
―
6,000
6,200

98.4%
―
―
91.2%
92.0%

633

20.0%

4,000

94.8%

120円

133.3%

180円

116.7%

YoY change YoY change(Amount)(%)

Initialforecast

Achievement
ratio

FY2022

FY2023

118,721
12,343
7,607
4,736
4,957

118,060
13,483
8,009
5,473
5,707

▲661
1,140
402
737
750

3,160

3,793

90円

210円

FY2022

FY2023

Net sales

83,34082,132

▲1208

▲1.5%

94,00087.4%

Operating profit

1,998

1,849

▲149

▲7.4%

―

―

Ordinary profit

2,334

2,497

163

7.0%

4,400

56.8%

Profit

1,606

1,961

355

22.1%

3,000

65.4%

■ Consolidated net sales were ¥118,060 million, 1.6% below the plan and a 0.6% decrease year on year. A major factor behind thedecrease in net sales was stagnant net sales on a non-consolidated basis despite the strong performance of consolidated
subsidiaries.
■ Operating profit decreased 5.6% year on year to ¥5,473 million, failing to achieve the forecast of ¥6,000 million set at the
beginning of the fiscal year. Major factors include decreased profit from completed construction due to a shortage ofcompleted work in the construction division, and profit margin contraction in the manufacturing and sales division due toincreased material prices resulting from increased crude prices and further depreciation of the yen, as well as spiking energy
prices. Shipment of products and asphalt mixtures was also weak.
■ Profit attributable to owners of parent increased 20.0% year on year to ¥3,793 million but was only 94.8％ of the forecast set atthe beginning of the fiscal year.

4Results of net sales and profit/loss by segment(consolidated)(Millions of yen)

Net sales

FY2021

FY2022

FY2023

YoY change(Amount)

YoY change
Achievement
Initial forecast
(%)
ratio

Construction

68,75470,04570,247

202

0.3%

―

―

Asphalt Products,
Environment and Other

43,363

48,67547,813

▲862

▲1.8%

―

―

Total net sales

112,118

118,721118,060▲661▲0.6% 120,000

98.4%

Segment profit

FY2021

FY2022

FY2023

YoY change(Amount)

YoY change(%)

Construction

5,227

3,296

3,468

172

5.2%

Asphalt Products,
Environment and Other

2,306

3,481

4,162

681

19.6%

Total segment profit

7,534

6,778

7,631

853

12.6%

Net sales■ Construction ■ Asphalt Products,
Environment and Other(Millions of yen)

120,000

Segment profit ratio
20

90,00015

60,00010

30,0005

00

FY2021

FY2022

FY2023－●－ Construction －●－ Asphalt Products,（％）

Environment and Other

19.6
7.6

7.2

5.3

4.7

FY2021

FY2022

5.2

FY2023■ Construction(1) Net sales increased 0.3％ year on year. (2) Segment profit increased only 5.2% year on year, affected by the decrease in completed
construction on a non-consolidated basis. (3) The amount of construction orders carried forward to FY2023 was ¥35.0 billion, which
by far exceeded that of the previous year (¥29.0 billion), thanks to the strong trend of orders received in FY2024.
■ Asphalt Products, Environment and Other(1) Net sales decreased 1.3％ year on year. (2) Although there were impacts of increased material prices due to increased crude prices
and further depreciation of the yen, as well as spiking energy prices, segment profit increased 19.6％ year on year, thanks to a certain
level of progress with price pass-through. (3) For FY2024, we will continue passing material price increases caused by higher fuelprices, shipping costs and electricity rates onto selling prices for other products than asphalt, as an upmost priority.

5Analysis of factors for changes in profit (consolidated)

Profit decreased by 653

Profit increased by 1,285

1,140

4

53

194

402
3,793
Increase in
SGA expenses

Increase inincome taxes

Decrease in
extraordinary income

Increase in nonoperating expenses

Increase in nonoperating income

Increase in grossprofit17

Decrease in profit
attributable to noncontrolling interests
FY2022
Profit21

Decrease in
extraordinary losses

3,160

107

(Millions of yen)

FY2023
Profit■ [Major factors behind the increase in profit]• Mainly due to an increase in gross profit and a decrease in extraordinary losses.
■ [Major factors behind the decrease in profit]• Mainly due to an increase in SGA expenses associated with the gradual resumption of economic activities after the
COVID-19 pandemic and an increase in income taxes.

6

Consolidated financial position andconsolidated cash flows
Consolidated financial position(Millions of yen)

■ Interest-bearing
liabilities(Millions of yen)

Total assets
Total liabilities
Interest-bearing
liabilities(Short-term borrowings)(Long-term borrowings)

Net assets
Equity-to-asset ratio

FY2021

FY2022

FY2023

YoY change

84,691
34,22587,18434,472

92,89536,820

5,711
2,348

1,914

2,186

1,500

1,328
586
50,466
57.9%

2,036
150
52,71158.9%

600 ▲1,436
900
750
56,0753,364
58.8% ▲0.1%

Consolidated cash flows(Millions of yen)

FY2021
Cash flows from operating activities

▲686

4,584

FY20222,180

FY2023

10,911

Cash flows from investing activities ▲2,842 ▲2,971 ▲3,995
Cash flows from financing activities ▲2,856▲853 ▲2,693

65,00057.9

58.9

60,00050,000

58.8

(%)

60.0

56,07555,00050,46652,71145,00050.0

40.0

40,00035,00030.030,00025,00020.0

20,00015,00010.0

10,000Net increase (decrease) in cash and cash
equivalents▲1,115 ▲1,644

4,222

5,000

Cash and cash equivalents at end of period

11,64914,2270

10,004■ Net assets －●－ Equity-toasset ratio

FY2021

FY2022 FY2023

0.0■ While cash and deposits increased year on year and notes receivable, accounts receivable from completed construction contracts and other decreased year on year
since the closing date fell on a holiday and some payments were carried forward to the next fiscal year, total assets increased by ¥5,711 million year on year, due to anincrease in property, plant and equipment and leased assets resulting from increased capital investments, as well as an increase in investments and other assets.
■ Liabilities increased by ¥2,348 million year on year due to an increase in long-term borrowings for purchase of real estate for capital investments, despite a decrease in
short-term borrowings for an increased cash demand at the end of the fiscal year.
■ Net assets increased by ¥3,364 million due mainly to an increase in retained earnings. The equity-to-asset ratio was 58.8%, remaining at a similar level to the previous
fiscal year.
■ For consolidated cash flows, there was an outflow of ¥4,085 million for purchase of property, plant and equipment for rebuilding of offices and other purposes.
Borrowings decreased by ¥686 million. Cash outflow for dividends paid was ¥855 million. Due to an increase in operating cash flows, cash and cash equivalents at endof the fiscal year increased by ¥4,222 million year on year to ¥14,227 million.

7

2
Financial results forecasts
for the fiscal year ending March 31, 2025

Financial results forecasts for FY2024(Millions of yen)

Consolidated
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

FY2023

118,060
5,473
5,707
3,793

FY2024(Forecast)

126,000
6,000
6,100
3,900

YoY change(Amount)

YoY change
(%)

7,940
527
393
107

6.7%
9.6%
6.9%
2.8%

■ Full-year outlook (plan)
While material price trends for asphalt and other products remain uncertain and energy prices is expected to increase, theConstruction business started the fiscal year with a significantly larger amount of construction orders carried forward compared tothe previous fiscal year. The amount of orders received remains firm and construction business, manufacturing and sales businessthat handles construction materials, and environmental business are expected to make progress as planned.
■ Initiatives to achieve the plan
[Construction]
For orders received, we will refine the calculation system to improve profitability at the time of acceptance of orders by, for example,
holding strategic meetings to assess orders received. While expansion of our customer base remains the primary goal, the number
and range of customers will be expanded by focusing on certain targets and working strategically.
For construction work, we will implement a construction that focuses on the profitability of completed work, which includes theassignment of technical personnel. In addition, we will hold meetings to assess performance part-way through a project to gauge theprogress and issues of said project, from the viewpoint of preventing poor quality and unprofitability of construction work, thereby
aiming to further improve gross profit from construction.
[Asphalt Products, Environment and Other]Work on passing increased fuel and resin prices, shipping costs and electricity rates onto selling prices for other products thanasphalt as the utmost priority, focusing on areas where price increases have not yet been implemented. In order to realize sales
activities advantageous for the Company, we will assign plants and personnel in accordance with market size to actively promotesales of the Company’s products and construction methods to governmental bodies. For the asphalt mixture division, we willconsider collaboration with external parties that will be highly beneficial and work to increase shipment volume. At the same time, wewill implement capital investments aimed at achieving carbon neutrality.

9

Shareholder returns– dividend forecast and purchase of treasury shares
Actual dividend per share (FY2023): 42 yen

Forecast divided per share (FY2024) : 42 yen Note 1
Note 1: The amount is calculated a post-split basis following the 5-for-1 stock split of common stock on March 29, 2024. The actual dividend
per share for FY2023 is recalculated on a post-split basis.

<Reference> Dividend policy
Provide shareholder returns with a baseline dividend payout ratio of 50% or more, while
striving to achieve continuous business growth.
The annual dividend baseline is 42 yen per share (on post-stock split basis)
Consider purchase of treasury shares on a flexible basis in order to further increase profit returns toshareholders by improving capital efficiency and implementing an agile capital policy.
■ Common dividend ■ Special dividend ■Purchase of treasury shares
Approx.
¥1.0 billion
Approx.
¥0.7 billion
12 yen14 yen16 yenApprox.
¥0.6 billion
18 yen18 yen42 yen42 yen Note 2

Approx.
¥0.3 billion

FY2018FY2019Former medium-term
management

FY2020

FY2021

FY2022Previous medium-term
management plan

FY2023

TOA ROAD Sustainable Plan 2023

FY2024
TOA ROAD
Sustainable Plan 2026

Note 2: The amount of dividends is calculated on a post-split basis following the 2-for-1 stock split of common stock on April 1, 2023 and the 5for-1 stock split of common stock on April 1, 2024.

10

Consolidated management indicators(Capital investment, R&D, depreciation, shareholder returns, etc.)

Consolidated management indicator trends
Term

107th

108th

109th

110th

111st

112nd

113rd

114th

115th

116th

117th

118th

Fiscal year

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Net sales(Million yen) 105,991 118,848 113,663

96,586

99,84998,218103,676

109,123

111,801

112,118

118,721118,060

Ordinary profit (loss)(Million yen)

4,298

6,711

6,016

5,412

5,260

4,184

3,728

4,869

7,258

5,590

4,957

5,707

Profit (loss) attributable to ownersof parent(Million yen)

2,724

4,121

4,110

3,139

2,987

2,518

▲231

4,116

4,697

3,714

3,160

3,793

Comprehensive income(Million yen)

2,950

4,270

4,605

2,932

3,400

3,096

691

3,628

5,942

3,773

3,248

4,995

Net assets(Million yen)

24,495

28,10832,74035,00837,89740,37540,53743,48348,02650,46652,711

56,075

Total assets(Million yen)

74,29180,09780,156

81,193

79,99889,42689,81384,027

87,846

84,691

87,184

92,895

Net assets per share(Yen)

474.74544.41

634.31676.97731.06776.94777.81

834.88958.571030.311080.46

1,162.69

Profit (loss) per share

(Yen)

54.92

81.20

81.00

61.89

58.90

49.67

▲4.57

81.23

94.87

76.55

66.73

79.94

Equity-to-asset ratio

（％）

32.4

34.5

40.1

42.3

46.3

44.0

43.9

50.4

53.2

57.9

58.9

58.8

Return on equity (ROE)

（％）

12.1

15.9

13.7

9.4

8.4

6.6

▲0.6

10.1

10.6

7.8

6.3

7.2

Price-to-earnings ratio (PER)(Time)

6.23

5.04

4.99

6.06

5.65

8.17

―

3.69

4.46

6.30

11.24

15.95

Cash flows from operating activities (Million yen)

4,217

1,875

3,284

10,266

1,297

10,9593,262▲3,734

6,688

4,584

2,180

10,911

Cash flows from investing activities (Million yen) ▲1,172▲1,834▲1,294▲2,579▲1,905▲779▲3,250▲1,752▲2,089▲2,842▲2,971▲3,995

Cash flows from financing activities (Million yen) ▲2,008▲2,460▲1,912▲2,435▲1,031▲910▲1,890▲2,878▲3,888▲2,856▲853▲2,693

11,757

9,338

9,415

14,667

13,02722,29820,41912,053

12,764

11,64910,004

14,227

1,405(Person) （519）

1,397
（534）

1,433
（533）

1,466
（495）

1,515
（456）

1,532
（497）

1,553
（531）

1,558
（516）

1,565
（498）

1,580
（434）

1,667
（433）

1,655
(436)

Cash and cash equivalents at endof period
Number of employees (excluding
average number of temporary employees)(Million yen)

(Note) On April 1, 2024, the Company conducted a 5-for-1 stock split of its common stock. The per share indicators for each term are calculated on the presumption that the stock split was conducted.

11Consolidated management indicators(Capital investment, R&D, depreciation, shareholder returns, etc.)

Consolidated management indicator trends■ Ordinary profit ■ Profit (loss) attributable to owners of parent －●－ Equity-to-asset ratio －●－ Return on equity (ROE)

40.1

34.5

32.4

46.3

42.3

43.9

44.0

53.2

50.4

58.9

57.9

58.8

(%)

60
50
40
30
20

15.9

12.1

7.2

6.3

13.7

9.4

8.4

10.1

6.6

10.6

7.8

10
0

▲ 0.6

-10

(Millions of yen)

8,000
7,000

6,016

6,000
5,000
4,000
3,000

7,258

6,711

4,298

4,121

5,412

4,869
4,184

4,110
3,139

2,724

5,590

5,260

2,987

3,728

4,116

4,697

5,707
4,957

3,714

2,518

3,160

3,793

2,000
1,000
0
-1,000▲ 231
FY2012107th

FY2013108th

FY2014109th

FY2015110th

FY2016111th

FY2017112th

FY2018113th

FY2019114th

FY2020115th

FY2021116th

FY2022117th

FY2023
118th

12

3

TOPICSTopics for FY2023
1

Stock split (1)PurposeBy reducing the amount per unit of investment in the Company’s stock through a stock split,
the Company aims to create an environment in which investors can invest more easily,
thereby expanding the investor base and increasing the liquidity of the Company’s stock.

Method of stock split

2-for-1 stock split of the common stock

Schedule of stock split

Announcement of record date : Thursday, March 16, 2023
Record date

: Friday, March 31, 2023

Effective date

: Saturday, April 1, 2023

Number of shares tobe increased by the
split

Total number of shares issued before the stock split: 5,220,023 shares
Total number of shares issued after the stock split: 10,440,046 shares

Change in amount of
capital stock

No change

Dividends

Since the effective date of the stock split is April 1, 2023, the year-end dividend
for the fiscal year ended March 31, 2023, whose dividend record date is March
31, 2023, is applicable to the shares before the stock split.
14

Topics for FY2023
2

Stock split (2)PurposeBy reducing the amount per unit of investment in the Company’s stock through repeatedstock splits, the Company aims to create an environment in which investors can invest moreeasily, thereby expanding the investor base and increasing the liquidity of the Company’s
stock.

Method of stock split

5-for-1 stock split of the common stock

Schedule of stock split

Announcement of record date : Friday, March 15, 2024
Record date

: Sunday, March 31, 2024

Effective date

: Monday, April 1, 2024

Number of shares tobe increased by the
split

Total number of shares issued before the stock split: 10,440,046 shares
Total number of shares issued after the stock split: 52,200,230 shares

Change in amount of
capital stock

No change

Dividends

Since the effective date of the stock split is April 1, 2024, the year-end dividend
for the fiscal year ended March 31, 2024, whose dividend record date is March
31, 2024, is applicable to the shares before the stock split.
15

Topics for FY2023
3

Announcement on retirement of treasury shares
The Company conducted the retirement of treasury shares on April 30, 2024, thescheduled date decided upon in the “Decision on the retirement of treasury
shares” dated November 8, 2023 and the “Decision on the scheduled date of theretirement of treasury shares” dated April 2, 2024.
Date of retirement: April 30, 2024

Reference• Class of shares retired: Common stock of the Company• Total number of shares retired: 805,500 shares(The number of all shares acquired based on the resolution at the Board of
Directors meeting held on June 29, 2023)• Total number of issued shares after the retirement: 51,394,730 shares(Note): The number of all shares acquired based on the resolution at the Board of Directors
meeting held on June 29, 2023
16

Topics for FY2023
4

Establishment of a new plant to produce “cold-mix asphalt mixtures”(August 7, 2023)

The Company established a new plant of cold-mix asphalt mixture for research and development inTsukuba City, Ibaraki.
Cold-mix asphalt mixtures eliminate the heating process during production through the use of asphalt
emulsion, etc. as the binding agent. The development of this technology is expected to significantly
reduce CO2 emissions compared to normal hot-mix asphalt mixtures.
The newly established cold-mix asphalt mixture plant applies a batch method that can mix ingredientsevenly with high precision. The plant will work on the research and development of cold-mix asphalt
mixtures that will contribute to the realization of a carbon neutral society.
The Company will also utilize the plant for other research and development, including the following:development of high-quality cements and bituminous stabilization processing roadbed materials;
development of pavement materials that utilize grizzly-under-materials, which were difficult to reuse attraditional asphalt plants; improvement in the quality of oil sands that are mainly used for athletic fields.

Newly established cold mix-asphalt mixture plant(Tsukuba City, Ibaraki)

Road paved with cold-mix asphalt (Nerima City, Tokyo)

17

4
FY2024–FY2026

Medium-term Management Plan

Contents

1

Corporate philosophy, 100th anniversary vision andmedium-term management plan

2

Review of the previous medium-term management plan

3

Outline of the medium-term management plan

3-1

Shift to CSR-oriented management

3-2

Establishment of a foundation for sustainable growth4

Performance goals

5

Affiliated companies

6

Initiatives for SDGs and Society 5.0

7Initiatives for WISENET 2050
19

philosophy, 100th anniversary vision and
1 Corporate
medium-term management plan

〇Corporate philosophy
Corporatephilosophy

Vision(What we should be)

Medium-term management plan

Support peoples’ lives from theroad they stand on with our own
will and growth〇100th anniversary vision(Basic policies and management strategies)

Annual plan and annual basic policy

Refine theto be the
Only One Company always chosen by the society

Basic policies of divisions (departments) andgroup companiesｚ

Individual goals and Code of Conduct20

philosophy, 100th anniversary vision and
1 Corporate
medium-term management plan

(Consolidated financial result)“TOA ROAD Vision 2030,” the 100th anniversary vision

Net sales (target)¥150.0 billion

GOAL
Refine the TOA Style to be the Only One Company always chosen by the society

Operating profit (target)¥10.0 billion
STEP3

FY2027–FY2029

TOA ROAD Sustainable Plan 2029
(Consolidated financial result)

FY2024–FY2026

TOA ROAD Sustainable Plan 2026

Net sales (target)¥130.0 billion
STEP2“Shift to CSR-oriented management”“Establishment of a foundation for sustainable growth”

STEP1

FY2021–FY2023

Operating profit (target)¥7.5 billion

TOA ROAD Sustainable Plan 2023

In 2021, we defined the “TOA ROAD Vision 2030,” which shows what we should be when we reach the100th anniversary of the Company in 2030, and set it as our goal. In order to achieve this goal, we havedeveloped and are implementing the medium-term management plan, “Ahead of the Curve, On Top of theMarket—TOA ROAD Sustainable Plan.” The medium-term management plan, “TOA ROAD Sustainable
Plan 2026,” is a continuum from the previous medium-term management plan, “TOA ROAD Sustainable
Plan 2023,” and covers a three-year period from the current fiscal year to FY2026.

21

2 Review of the previous medium-term management planSix growth strategies(TOA ROAD Sustainable Plan 2023)


Build a firm foundation for profitability

Promote digital transformation (DX)

Expand the business domains



Improve engagement

Promote technology development

Strengthen governance

Under the TOA ROAD Sustainable Plan 2023, the plan was not achieved in quantitative terms due
restrictions on construction work and increased material prices caused by unexpected events such as the
COVID-19 pandemic and the Russian invasion into Ukraine. However, our management foundation wassteadily improved through the six growth strategies. Accordingly, we will maintain these strategies in the
new medium-term management plan.

22

3 Outline of the medium-term management plan

TOA ROAD Sustainable Plan 2026
Ahead of the Curve On Top of the Market

Shift to CSR-oriented
management

Establishment of a foundation
for sustainable growth

Amid the changes in social demands to companies, wewill strive to commit to stakeholders and gain support
from them by profoundly shifting the focus or ourmanagement policy to “CSR-oriented management”
through challenge, ideas and actions.

While responsive actions to environmental problems are
emerging as an urgent issue, we will strive to establish
a “foundation for sustainable growth” by building aresilient corporate structure that can adapt to the era ofuncertainty with geopolitical risks, as well as by making
aggressive investments for future.

In order to achieve our goal, “Refine the TOA Style to be the Only One Company always chosen by thesociety,” we have decided in the medium-term management plan to strive to establish a “foundation forsustainable growth” by building a resilient corporate structure that can address materialities (the mostimportant social issues) surrounding the Company, while profoundly shifting the focus of our management
policy to “CSR-oriented management.”23

3-1 Shift to CSR-oriented management

Employees

Shareholders

Society

WE
COMMIT!

Customers

Environment

Through construction, maintenance and management of roads, we play our part in developing
infrastructure for industries and technology innovations, as well as in building sustainable cities andcommunities that are disaster-resilient and friendly to all people including children, elderlies and thehandicapped. Accordingly, in order to realize our 100th anniversary vision, “the Only One Company
always chosen by the society,” we commit to all stakeholders by shifting the focus of our management
policy to “CSR-oriented management.”24

3-1 Shift to CSR-oriented management

Commitment
to ouremployees

 Introduce andimprove objective
engagement scores.
 Provide educationand training based ona consistenteducation andtraining system.
 Provide a workplacethat is safe, secureand comfortable.
 Enhance welfare
programs and various
benefits.

Commitment tocommunities
and society

 Ensure compliancewith laws andregulations andsafety.
 Contribute to thesociety and engage
in charity programs.
 Make donations tocultural andeducational activities.

Commitment toenvironment

Commitment toour customers

 Reduce emission ofgreenhouse gases
from business
operation.
 Develop technologies
for sustainable andenvironmentallyfriendly construction
methods andmaterials.
 Challenge advanced
innovations.
 Implement the“Health &Environment Day”
project.

 Guarantee reliable
quality and higher
level of workmanship.
 Provide new value
added and ensure
on-time deliveries.
 Propose optimal
solutions responsive
to customer needs.

Commitment toourshareholders

 Strengthen thecorporate
governance and legal
compliance.
 Manage the businesswith a keen eye on
capital costs.
 Build trustfulrelationship bypromotingengagement withmanagement.

25

3-1 Shift to CSR-oriented management

Health & Environment Day

Initiative for employee engagement

Workplace

Company
5
4
3
2
1
0

AAA
AA
A
Job

Supervisors

FY2023We have set the third Friday of November as the “Health &Environment Day,” on which each site conducts specific actions
under the theme of health and environment. In the previous year,
we celebrated the day by thinking of and acting for health ofourselves and the Earth (environment) and performing actions
independently proposed by each site, such as cleaning of streetsaround the sites and physical exercises.

FY2026 taget

BBB
BB
B
CCC
CC
C

FY2026 (target)

FY2022–FY2023

FY2021DDD
DD

By quantitatively measuring, analyzing and continuously improving
mutual understanding between the Company and its employees
using a survey conducted by a third-party researcher, we will build
a trustful relationship between the Company and its employees.
By creating an organizational culture where employees candevelop their attachment to the Company and passion to their jobs,
we will achieve higher productivity and customer satisfaction, andstrive to be an organization where the Company and employees
can grow together.

26

3-2 Establishment of a foundation for sustainable growth,“Positioning of business strategies”

Construction
businessstrategies

Asphalt Productbusinessstrategies

Consulting
businessstrategies

Back-officestrategies
Management
strategies with akeen eye on
capital costs

Strategies of each businessResearch and development (R&D) / Integrated business strategies

Our strength (TOA STYLE)

Our strength is the “TOA Style,” which has been developed by our unique history and technologies. Accordingly, thestrategies of each business to be implemented to establish a foundation for sustainable growth will utilize the research anddevelopment (R&D) strategies, which have been developed based on our competence in technology development that
exploits our strength, as the common platform to seek a breakthrough for materialities surrounding the Company. In
addition, the integrated business strategies will maximize the synergy effect among the strategies of individual businesses,
which will be controlled on a cross-business basis by portfolio management and reflected in the management strategies
with a keen eye on capital costs.
27

3-2 Establishment of a foundation for sustainable growth,“Identification of materialities”

The Company’s business is based on orders mainly for public constructions. It depends on demands andneeds of the society and many of its materials are natural resources procured domestically andinternationally. Accordingly, its materialities are deeply related to social conditions and environmental
problems. From these perspectives, the following items have been identified as materialities forestablishing a foundation for sustainable growth under the medium-term management plan.

2024 problem (possible logistics service disruptions due to new overtime rules for truck drivers)
and securing workers

Era of uncertainty (in global, domestic and social conditions)Management of huge accumulation of social capital

Global environmental problems

Sustainable procurement of materials

28

3-2 Establishment of a foundation for sustainable growth,“Our strength”

TOA ROAD CORPORATION is known as the firstcompany in Japan that successfully produced asphalt
emulsion1) and provided it to pavement service providers
nationwide in the early days of modern pavement. Since
then, the Company is known for two businesses; one ismanufacturing of pavement materials and the other isroad construction. Like two wheels of a cart, we haveconstruction technologies proven by a long track recordand abundant experience, as well as series of products
developed by chemical technologies. By creatingsynergies from and integrating these two, we have
deepened our unique ideas that set us apart fromeveryone else. In addition, the free and open culture of a
totally independent company gives us freedom to thinkoutside the box, enabling us to create innovations throughtechnology transformation and propose optimal solutions
to all stakeholders. DNA of innovation and embracingchanges passed to each employee throughout the ages.
This is our core competence, the.

Free and open culture of a totally
independent company
Innovation & Solution

Chemistry

Civil
engineering

Unique ideas through synergy ofconstruction and products
Fusion of civil engineering and chemical technologies
More than 200 products and construction methods

1) Solid asphalt turned into liquid through emulsion technology. Asphalt emulsion is spread directly onto a gravel road surface and permeated into it to pave it.

29

3-2 Establishment of a foundation for sustainable growth,“Research and Development (R&D) strategies”

Our R&D strategies, which are based on the “TOA Style” and achievement from years of researches, areforward-looking strategies that precisely reflect social and market needs. We will work on development ofinnovative technologies to realize a low-carbon and sustainable society with a focus on technologies for
improved durability and effective maintenance of accumulated road infrastructure, and challenge creation of
innovations without being trapped by existing common knowledge and ideas. By achieving these results with thestrategies of each business and capital market strategies, we will strive to be a robust and sustainable company.

Technologies for improved durability and efficient maintenance of road infrastructure
 D e v e l o p a n d d i s s e m i n a t e h i g h - p e r f o r m a n c e wa t e r p r o o f i n g c o n s t r u c t i o n m e t h o d f o r b r i d g e d e c k s t o m a i n t a i n a g i n g b r i d g e s .
 D e v e l o p a n d d i s s e m i n a t e l o n g - l i f e p a v e m e n t s wi t h a n e xc e l l e n c e i n l i f e c y c l e c o s t ( L C C ) m a n a g e m e n t f o r s u p e r h e a v y t r a f f i c r o a d s .
 Develop and disseminate technologies for preventive maintenance (inspection, maintenance, etc.) for pavements, bridges, etc.

Technologies to realize a low -carbon and sustainable society D e v e l o p a n d d i s s e m i n a t e wa r m a n d c o l d p a v e m e n t t e c h n o l o g i e s t h a t wi l l s e r v e f o r a c h i e v e m e n t o f c a r b o n n e u t r a l i t y .
 D e v e l o p t e c h n o l o g i e s t h a t wi l l p r o m o t e r e c y c l i n g a n d G r e e n T r a n s f o r m a t i o n ( G X) .
 D e v e l o p n e w m a t e r i a l s t h a t wi l l r e p l a c e p e t r o l e u m - b a s e d r e s o u r c e s .

Challenge to next generation technologies and frontier technologies
 Develop construction methods and survey technologies that leverage DX, AI and other cutting-edge digital technologies.
 Bring pavement with a solar power generation function into practical use and disseminate it nationwide.
 Challenge next generation infrastructure such as the technology for wireless EV charging while driving.
 Challenge development of new materials for other use than road construction business (civil engineering, industrial use, etc.)30

3-1 Establishment of a foundation for sustainable growth,“Research and Development (R&D) strategies”“R&D strategies”
Global environmental problems(cold-mix asphalt mixtures)

Preventive maintenance technologies
for infrastructure (LCC optimization)

CAM seal (Thin-layer surface treatment method)

Fog seal (Preventive maintenance method)

Cold-mix asphalt mixtures will greatly contribute to resolution of
global environmental problems, since they do not need heating
unlike usual asphalt mixtures. Believing that establishment of coldmix technologies will be a significant breakthrough for realizing asustainable society, we have built a dedicated plant (in Tsukuba,
Ibaraki Prefecture) to establish and disseminate the technology.

In Japan, where declining birth rate and aging society havebecome chronic issues, management of huge accumulation of
infrastructure is an important issue in realizing a sustainable
society. To address this issue, we are focusing on preventive
maintenance technologies that address possible failures before
they actually occur and thereby minimize life cycle cost, instead ofsymptomatic treatment that addresses failures that have occurred.

31

3-1 Establishment of a foundation for sustainable growth,“Research and Development (R&D) strategies”“R&D strategies (Advanced innovation)”
Pavement w ith a solar pow er generation
function(Wattw ay)

Technology for w ireless EV
charging w hile driving

The photo is for illustrative purposes only.

Colas, a French road construction company, is working todisseminate “Wattway,” a solar pavement that generates
sustainable energy, as a new possibility of roads. Supporting thisidea, we are working for technology development anddissemination of Wattway jointly with Colas. We believe that
Wattway will also be an effective solution for developing disastertolerant and decarbonized society in Japan, because it is moretolerant to heavy rain and storm and allows more choices forplaces for installation, compared to traditional solar power
generation technologies.

While dissemination of electronic vehicles (EVs) is promoted as
one of the means for realizing a decarbonized society, shortage ofnatural resources necessary for their batteries is pointed out as an
issue. In order to address this issue, we are working on researchand development of a technology for charging EVs while drivingwith Tokyo University of Science. In the joint effort for practicalapplication of the technology to vehicular roads, we are examining
applicability of the technology to roads from a perspective ofpavement technologies.

32

3-2 Establishment of a foundation for sustainable growth,“Integrated business strategies”

In order to build a management foundation to achieve sustainable growth, it is necessary to sharematerialities the Company is facing among the businesses, and manage and optimize strategies andinvestments of the businesses from a higher perspective. In the integrated business strategies, we willassess the profitability of businesses and set KPIs for them based on the management indicators (suchas return on invested capital (ROIC)) that are based on invested capital, while considering future
uncertainties. By using these KPIs for managing portfolio of businesses for a medium to long term, we will
drive creation of corporate value.
Sharing of materialities and aggressive investment in businesses
 S h a r e m a t e r i a l i t i e s o n a c o m p a n y - wi d e b a s i s .
 I m p l e m e n t a g g r e s s i v e i n v e s t m e n t i n b u s i n e s s e s ( ¥ 5 . 0 b i l l i o n f o r i n v e s t m e n t i n g r o wt h , a n d ¥ 1 0 . 0 b i l l i o n f o r i n v e s t m e n t i n r e n e wa l
a n d c a p a c i t y e n h a n c e m e n t f o r e xi s t i n g f a c i l i t i e s a n d i n e n v i r o n m e n t a l m e a s u r e s ) . * 1 )Assessment and portfolio management of businesses andidentification of/response to improvement drivers
 F a m i l i a r i z e t h e e n t i r e c o m p a n y wi t h t h e c o n c e p t o f b u s i n e s s p r o f i t a b i l i t y a s s e s s m e n t f r o m a p e r s p e c t i v e o f i n v e s t e d c a p i t a l .
 I m p l e m e n t c o n c e n t r a t i o n a n d s e l e c t i o n a n d m a xi m i z e s y n e r g y e f f e c t a m o n g b u s i n e s s e s t h r o u g h p o r t f o l i o m a n a g e m e n t f o r a m e d i u m
t o l o n g t e r m , wh i l e c o n s i d e r i n g u n c e r t a i n t i e s .
 Analyze value drivers at the field level from a perspective of invested capital using concepts such as ROIC, im prove visibility ofbusiness assessments by setting KPIs, and identify and respond to improvement drivers.

Creation of corporate value
 Develop integrated business strategies with a keen eye on capital cost through business profitability assessment from a perspective of invested capital.
 Ensure engagement with stakeholders by building a management foundation that is resilient and stable on a medium- to long-term basis.
 Implement strategic cash flow allocation1).
1) Please see 4. Cash flow allocation on page 24.

33

3-2 Establishment of a foundation for sustainable growth,“Construction business strategies”

The 2024 problem and the associated necessity to secure workers is an urgent issue the Company is facing.
We will address this issue by introducing and promoting DX to improve operational efficiency and reduce
dependency on human power, as well as by realizing diverse ways of working. In addition, while maintaining
a stable business foundation with the backdrop of uncertainty by shifting to private demand, enhancing PFI
and sports facility businesses and implementing M&As, we will establish a sustainable foundation for growthby committing to maintaining, repairing and extending life of huge accumulation of social capital and by
developing solar pavement and other creative innovations that will serve for global environment.
2024 problem and securing w orkers
 Reconstruct the operational flows to provide diverse ways of working that will enable elderly and female employees tocontinuously demonstrate their capabilities.
 Promote improved “visibility” by generating management indicators, such as productivity per completed piece andprofitability by type of construction work, on a real time basis.
 Improve profitability by aggressively introducing machine control and other DX technologies.
 Improve profitability by improving engagement of personnel responsible for construction work.

Era of uncertainty (in global and domestic social conditions and climate) Shift to private demand and expand domains of business activities by promoting sales of solutions that leverage ourunique technologies.
 Expand the business domains by enhancing private funded initiatives (PFI), overseas and railway businesses and byimplementing strategic M&As.
 Enhance the landscaping and sports facility businesses.

Management of huge accumulation of social capital Conduct sales activities for solutions that leverage the Company’s various unique maintenance, repair and product life extension technologies.
 Conduct paved road management that utilizes FWD and MWD and considers cost performance and life cycle costs.

Global environmental problems
 Develop markets for “creative innovations” such as cold-mix pavement technology and solar pavement technology.

34

3-2 Establishment of a foundation for sustainable growth,“Asphalt Product business strategies”

With experience and track record over 100 years since the early days of pavement in Japan, our Asphalt Productbusiness aims at being a “road concierge” who not only sells products but also commits to customer needs,
including provision of the latest information and guidance on construction. Aiming at establishment of afoundation for sustainable growth, we will focus on sales of environmentally friendly materialities, while preparing
ourselves for issues of material procurement caused by uncertainties.
Era of uncertainty (in global and domestic social conditions and climate) Build a buffer function for asphalt manufacturing and a disaster backup system (such as power source) at major plants
through aggressive capital
investment.
 Actively promote new materials for other industries (materials for civil engineering and industrial use) to expand businessdomains.

Global environmental problems
 Provide mechanical warm-mix equipment at hot-mix asphalt plants.
 Actively promote additives for warm-mix asphalts and warm-mix binders, which are based on our unique technologies.

Management of huge accumulation of social capital Actively promote products that serve for extended life of pavements.
 Actively promote repair materials that meet customer needs (for large and small projects).

2024 problem and securing workers
 Reconstruct supply chain (including transportation costs).
 Introduce DX in plant facilities to reduce dependency on human power and improve quality and safety.

Sustainable procurement of materials
 Actively promote products for restoration technologies and plant-derived products.

35

3-2 Sustainable growth strategies,“Consulting business strategies”

We have been working for development of pavement management system (PMS) for years. PMS, asystem that maintains and manages huge accumulation of road assets in an optimal manner, minimizes
life cycle cost and serves as an essential system for management of paved structures in matured society
in Japan. In the Consulting business, we will work for dissemination of PMS as a solution for continuously
worsening shortage of technical personnel at municipalities, and actively propose our new technologies,
in order to contribute to sustainable management of social infrastructure.

Management of huge accumulation of social capital

A s o l u t i o n t h a t c a n s p e e d i l y m e a s u r e s o u n d n e s s o f h u g e a c c u m u l a t i o n o f e xi s t i n g p a v e m e n t s ( M W D p l u s )Solutions for planning of maintenance and repair that can minimize life cycle cost
S o l u t i o n s f o r d e s i g n i n g o f m a i n t e n a n c e a n d r e p a i r o f ( b r i d g e d e c k ) p a v e m e n t s wi t h e xc e l l e n t c o s t p e r f o r m a n c e
System solutions that support maintenance and management of paved structures

Global environmental problems
 Solutions for designing of pavement maintenance and repair based on environmentally friendly technologies
 Solutions for designing pavement maintenance and repair that will minimize emission of green house gases

Global environmental problems
 Solutions for designing pavement repair that utilize sustainable materials
 Utilization of long-life pavement technologies to reduce consumption of valuable natural resources and solutions for designing reasonable maintenance utilizing FWD

36

3-2 Establishment of a foundation for sustainable growth,“Back-office strategies”

Our back-office strategies are to improve operational efficiency by utilizing the latest DX technologies andgenerative AI technologies to improve productivity, and thereby to improve competitiveness in markets as
a company. In addition, we will prepare ourselves for the era of uncertainty by working to improveengagement through prevention of human errors and elimination of dependency on specific personnel, as
well as by further enhancing and sophisticating BCP measures for emergency situations such as system
failures and disasters.

2024 problem and shortage of w orkers
 Improve efficiency and reduce efforts in back-office operations by sophisticating systems for sales support, product sales
and expense reimbursement though introduction of DX.
 Improve efficiency and reduce efforts in back-office operations with knowledge databases for technical information andadministrative operations that utilize generative AI.

Era of uncertainty
 Further enhance and sophisticate BCP measures for emergency situations such as system failures and disasters.

37

3-2 Establishment of a foundation for sustainable growth

Construction businessSports facilities

We will propose solutions that are consistently optimal fromplanning and design to construction from an expert viewpoint tomeet various customer needs such as sports, education andentertainment by leveraging abundant track record we haveaccumulated and materials we have independently developed.

Machine control

We strive to improve productivity and reduce dependency onhuman power while improving safety, quality and workmanship, byintroducing DX technologies that are consistent from survey anddesign to construction and completion, such as measuring
technologies utilizing a drone, introduction of a machine control
system to pavement construction work, management of completedparts of construction with latest optical equipment and nondestructive quality management.

38

3-2 Establishment of a foundation for sustainable growth

Asphalt Product business and Consulting business
Asphalt Product business(alternative materials for asphalt)

High-performance waterproofing construction method(ToughShut RA)

We will actively promote sales of sustainable materials thatwill serve for maintenance, repair and extended life ofpavements, such as ToughShut RA, a high-performancewaterproofing construction method that uses a material
mainly made of plant-derived special thermoplastic resin,
HS Binder, a modified asphalt with super-high fluidity
resistance, and Cold Permix, a weather-proof repair
material usable in room temperature.

Consulting business (LCC optimization)

MWD plus“MWD plus” is a pavement inspection vehicle that efficiently
measures deflection volume of pavement and pavement
surface conditions while traveling. It will contribute tobuilding a sustainable maintenance cycle that will extend
life and reduce life cycle cost of pavement.

39

3-2 Sustainable growth strategies“Management strategies with a keen eye on capital costs”

Having a precondition that we will ensure resilient management foundation to address the era ofuncertainty, we will strive to improve our corporate value with a keen eye on capital cost, by setting a KPI
for profitability on invested capital for each business. At the same time, in order to reduce capital costs,
we will enhance engagement with shareholders and investors through dialog with them.
 Return on equity (ROE)
Our ROE, which was 6.3% for the fiscal year ended March 31, 2023 partially due to the increased crude oil prices, has recovered to
7.8% in the forecast for the fiscal year ended March 31, 2024. In the medium-term management plan, we will work for continuous
improvement aiming at an ROE of 〇% or more.
 Price book-value ratio (PBR)
Although our PBR is currently above 1x, we will strive to achieve a PBR of 1〇 or more, by providing steady shareholder returns
with a base line dividend payout ratio of 〇% or more and a base line annual dividend of ¥〇/share(*), on a precondition that ourmanagement policy should emphasize shareholder returns while maintaining a robust financial foundation.

40

3-2 Cash flow allocation

We plan to invest ¥○ billion in CSR activities, R&D and M&As as an aggressive investment in growth. As
for renewal of existing facilities, we plan to invest ¥○ billion in three years for improvement of production
capability and efficiency, renewal of existing facilities by considering carbon neutrality and responding to
uncertainties and 2024 problem, in order to build a management foundation that can realize “sustainablegrowth.” In addition, we will ensure a dividend payout ratio of 〇% or more.

Investment ingrowthOperatingcash flow

FY2024–FY2026

Dividends

Investment inrenewal ofexisting
facilities

 R&D
 M&A
 CSR
 Generative AI
 Human resource development

 Improvement of production capability and efficiency
 Improvement of resilience for uncertainties
 Response to CN
 Response to DX
 Response to BCP

41

3-2 Trend of shareholder returns

The policy on shareholder returns is an important theme of management. We will work to provide
shareholder returns with a baseline dividend payout ratio of 50% or more, while striving to achieve
continuous growth of business. (We may consider stock repurchase in response to investment trends andmarket environment, as necessary.)
45

50％

60

40
50
35
42

30

40

25
20

17.2％

16.9％

23.5％

30

27％

20

15
10
5

12

14

16

18

18

10

0

0
FY2018FY2019FY2020
Dividend (yen)FY2021

FY2022

FY2023 (est.)

Dividend payout ratio (%)* The financial position was negative for the
fiscal year ended March 31, 2019 due toreporting of an extraordinary loss (negative¥231 million).

On April 1, 2024, the Company conducted a 5-for-1 stock split of its common stock. The dividend per share is calculated on the presumption that the stock split had been
conducted at the beginning of the fiscal year ended March 31, 2019.

42

4 Performance goals (consolidated)

Net sales
Operating profit
Net profit

FY2026(FY2030)
Net sales¥130.0 billion (¥150.0 billion)
Operating profit¥7.5 billion (¥10.0 billion)(10 millions of yen)
(Millions of yen)
(Millions of yen)

Sustainable Plan 2026

Net sales

Operating profit

ProfitROE

43

5 Affiliated companies

TOA-TONE BORING CO., LTD.

ART ENGINEERING CO., Ltd.

A vehicle thatmeasurespavement surface
profilesDiaphragm wall
trencher

Enzan Plant

Established in 1917, TOA-TONE BORING CO., LTD. is acompany engaged in manufacturing and sales of drillingmachinery, as well as construction. With its unique, special andcutting-edge technologies adopted for foundation work of largescale structures and work related to the linear motor car, thecompany operates its businesses globally.
The company creates synergy with us not only in civil engineering
work but also with its technology for sustainable undergroundthermal wells.

Mobile deflection
measurement equipment
MWD plus

ART ENGINEERING CO., Ltd. is a member of the Pavement
Consultants Association, since the establishment of theassociation. The company is engaged mainly in testing andsurveys specialized for pavements, such as survey of pavement
surface profiles with a specially-designed vehicle for automaticallymeasuring pavement surface profiles, survey of pavement
structure using FWD, and comprehensive assessment using
MWD plus. In addition, the company proposes various solutions tomunicipalities, such as support for introduction and operation of
pavement management systems.

44

6 Initiatives for SDGs and Society 5.0

Initiatives for SDGs

Challenge to Society 5.0

Resolve social issues throughRealize a future society throughbusiness activities

business activities

Our target year, 2030, is also the target year of SDGs. To achieve
the SDG goals, the medium-term management plan also actively
commits to the targets, especially those listed below.

The Company will challenge the possibilities of our unique IoTtechnologies by actively introducing ICT technologies inconstruction sites, introducing generative AI in back-office
operations, and introducing big data in pavement management. At
the same time, we will strive for realization of diverse ways ofworking where elderlies, youth, and women can achieve theirhappiness, looking also at securing workers, which is an urgent
issue in the construction industry.

AFFORDABLE AND CLEAN ENERGY

Initiative for solar pavement
DECENT WORK AND ECONOMIC GROWTHManagement emphasizing engagement
between the Company and employees
INDUSTRY, INNOVATION AND INFRASTRUCTURE

Development of infrastructure that is safe,
secure, sustainable and disaster-resilient
SUSTAINABLE CITIES AND COMMUNITIESProvision of technical support and roadmaterials to Global SouthRESPONSIBLE CONSUMPTION AND PRODUCTION

Advancement of technologies for extending
product life and recycling in the road sector* For our past initiatives, please see our Integrated Reports.
https://www.toadoro.co.jp/csr/

45

7 Initiatives for WISENET 2050

Based on insights and technologies we have developed as a road construction company, we will create
innovations for future and actively commit to an establishment of WISENET 2050*1) .

Establishment of a seamless network
U nd er W IS EN ET 2 0 5 0 , t he w o rk i s o n g o i n g f o r d evel o p m en t o f a sea m le s s net w o rk o f hi g h - sta n da r d ar ter ial
r oa d s , w it h a n ey e o n m ee tin g ce rt ain r oa d se rvi c e le vel s. We w ill a c tiv ely d ev el o p an d p r o p o s e l o n g -lif ep ave m en t s a n d te c h n ol o g ie s f o r c o n s tr u c ti on in sh o r te r tim e , in o r d er t o p re ven t re d u c ti o n o f se rv i ce level sd ue t o re p ai r w o r k o f p ave m en t s. In a d d i ti on , in o r de r t o un d er s tan d the cu r re nt s tat u s o f se rvi c e l ev els o f
r oa d s p re ci s ely , we wil l a c tive ly d evel o p an d p r o p o s e n e w s urv ey te ch n ol o g ie s , su c h a s “M W D p lu s ,” w hi ch
is a vehicle that m easures pavem ent structure s and pavem ent surface profiles at the sam e tim e.

Transformation of roads into multi-functional spaces through creation of technologies
Under WISENET 2050, a discussion is ongoing to transform roads from spaces for vehicles to travel to multi-functional spacesthat support diverse values. We will work for development and dissemination of solar pavement that will contribute to resolutionof global environmental problems, as well as for research and development of technology for wireless EV charging while driving
by looking at dissemination of EVs in future and possible advent of autonomous driving society.

46

5Corporate profile

Corporate philosophy and corporate profile

Corporate philosophy

Support peoples’ lives from the road theystand on with our own will and growth
Corporate name

TOA ROAD CORPORATION

Date of establishment

November 28, 1930

Head office

7-3-7 Roppongi, Minato City, Tokyo

Representative

Kyouichi Morishita, Representative Director, President

Capital¥7,584 million

Net sales¥118,060 million (for FY 2024) (consolidated)

Ordinary profit¥5,707 million (for FY 2024) (consolidated)

Number of employees

1,655 (for FY 2024) (consolidated)

Listing (Securities code)

Prime Market of the Tokyo Stock Exchange (1882)

Construction contractor
licenseMinistry of Land, Infrastructure, Transport and Tourism(Special 1) No. 3226
48

Major consolidated subsidiaries
Net sales(Beforeconsolidation
adjustment)

Reportablesegment

Head office

FUJIKENSETSU CORPORATION

Construction

Muroran City, Hokkaido

Supervising and work for road construction, general civil¥3,010 million engineering, sports facilities, architecture, and road maintenanceand snow removal, etc.

MARUKENDOURO CORPORATION

Construction

Kanazawa City, Ishikawa

Supervising and work for road construction, sports facilities,¥3,863 million landscape facilities, general civil engineering projects, etc.
Manufacturing and sales of asphalt mixtures

Umetsugumi Co., Ltd.

Construction

Nagai City, Yamagata¥2,815 million

Shikishimagumi Co., Ltd.

Construction

Oita City, Oita

Supervising and work for road construction projects, civil¥1,044 million engineering projects, etc. Manufacturing and sales of asphalt
mixtures

FUJI GREEN TECH CO., LTD.

Construction

Kofu City, Yamanashi

Design, work, management and management as a designated¥2,564 million manager of parks and athletic facilities, etc. and painting of bicycle
racetracks

KOKUDO Co., Ltd.

Construction

Kakamigahara City, Gifu

Aiken Industry Co., Ltd.

Construction

Company nameBusiness description

Supervising and work for pavement construction projects, civilengineering projects, etc.

¥328 million

Work for pavement construction projects and civil engineering
projects

Kirishima City,
Kagoshima¥1,292 million

Construction work, sales of intermediately processed/recycled
crushed stone, and manufacturing and sales of asphalt mixtures

Sapporo Kyodo Ascon Co., Ltd.

Asphalt
Products

Sapporo City, Hokkaido¥1,296 million Manufacturing and sales of asphalt mixtures

Aska Co., Ltd.

Asphalt
Products

Minato City, Tokyo¥18,660 million Sales of petroleum products (asphalt and fuels)

TOA-TONE BORING Co., Ltd.

Asphalt
Products

Minato City, Tokyo

Manufacturing and sales of boring machinery and foundation civil¥8,504 million engineering machinery, etc. and work for foundation civilengineering projects

TOA BUTSURYU Co., Ltd

Asphalt
Products

Minato City, Tokyo¥1,844 million Transportation and delivery (spreading) of asphalt products

SANROCK ARAKAWA Co., Ltd.

Asphalt
Products

Murakami City, Niigata

Manufacturing and sales of gravel, sand, crushed stone, etc.
¥1,265 million Recycling of concrete waste materials
Civil engineering and pavement construction49

Major offices, research institute,consolidated subsidiaries, etc.
Branch offices, sales
offices, etc.
Technical ResearchInstitute

40 offices
1 location

Product factories

24 factories

Asphalt mixing
plants45 plants

Subsidiaries

Hokkaido• Hokkaido Branch

25 subsidiaries

Shin-etsu and Hokuriku• Hokuriku Branch Office

Shikoku and Chugoku• Chushikoku Branch• Shikoku Branch
OfficeKyushu and Okinawa• Kyushu Branch

Kansai• Kansai Branch

Tohoku• Tohoku Branch• Miyagi Branch
OfficeHead OfficeTokai• Chubu Branch• Chukyo
Branch Office

Kanto• Kanto Branch• Tokyo Branch Office• Yokohama Branch
Office• Chiba Branch Office• Ibaraki Branch Office• KitaKanto Branch Office• Technical ResearchInstitute(Tsukuba City, Ibaraki)

Technical Research Institute50

Our track record in construction
FY2022 Shizuma Nima Road pavement construction
work in Isotake district(Chugoku Regional Development Bureau, MLIT)

Improvement and pavement construction work at
Kammuriyama Toge Road in Tsuka district(Kinki Regional Development Bureau, MLIT)

Hokuriku Shinkansen
Fukui track construction

Aichi Prefecture Football Center Aisai

Gifu Velodrome

Matsuyamashita Athletic Park in Chiba[Facility certified by JFA]

51

Our new technologies
Development of photovoltaic road surfacing system (Wattway)
In order to achieve the SDG goals, the Company is working jointly with
Colas (a French company) for dissemination of Wattway, a pavement witha solar power generation function.
Being a product attached onto road surfaces, Wattway is resistant totyphoons and other disasters and can be operated independently frompower grids. Therefore, the Company believes that it will be a new
solution for solar power generation in Japan in the future, with its
potential for use as an energy source at disaster-affected sites andinstallation in urban areas, etc.

Developmentof ToughShut
RA,pavement system
Developmentof solaran asphalt pavement material with integrated resin waterproofing
ToughShut RA, an asphalt pavement material with integrated resinwaterproofing, is an innovative technology that integrates the deck,waterproof layer, and asphalt mixture of road bridges with plant-derived
resin. Unlike traditional methods that require specialized work, it can beinstalled using general-use equipment. We thus believe this technology
will contribute to extending the life of a large number of existing bridges if
broadly applied to bridge maintenance and management.

MWD plus (a pavement inspection vehicle that measures deflection
volume and pavement surface conditions at the same time）
The Company developed and started operation of MWD plus, a newinspection vehicle developed by mounting a device to measure threeelements of pavement surface profiles required for pavement
maintenance (cracking, rutting and International Roughness Index (IRI))
onto MWD, a mobile deflection measurement equipment.
We believe that MWD plus, which quickly measures the deflection volumeof pavement surfaces, will contribute to the effective maintenance andmanagement of road pavement.

Development of pavement for wireless EV charging while driving
Pavement for wireless EV charging while driving is a pavement thatcharges EVs wirelessly while they are traveling. Amid the rapid shift
toward EVs, the Company expects that battery problems will emerge inthe future for batteries mounted onto vehicles in terms of resource
scarcity and weight. The Company is working to technically assess thisissue in collaboration with related and academic institutions.

UV light irradiation

Surface layer

Base layer
Deck
Adhesive waterproofing material mixed withfluorescent pigment under UV light irradiation.
You can see the waterproofing material
penetrating the base layer.

52

Our products

ECO Binder series
ECO Binder series are environmentally-friendly modified
asphalt that can be produced at approximately 30℃ lower
than the temperature for producing normal modified asphalt
mixtures. It can reduce fuel consumption and CO2 emissions
traditionally required for heating the aggregate.

Fast-As
Fast-As is a road surface repair material developed for easieruse for small-scale work. It is made of modified asphalt
emulsion and hardens at room temperature. It serves forvarious uses such as filling gaps and seams, as well as therefreshing and aesthetic improvement of rough road surfaces.
No shovel required

Save from starving
Save future

United Nations
World Food Programme

10 yen will be donated persale of one piece of thisproduct to support school
meals in developing
countries.

Parts in which biomass
is used: content

Water does
not matter!

Cold Permix
Cold Permix is a highly durable asphalt mixture for cold-mix
repair. It is highly durable and enables the easy filling of
potholes and gaps. It is made of plant-derived materials andobtained the Biomass Mark certification.

Tread on it
and you’re done !

TOKE Pack
TOKE Pack is a pothole filling material for emergency use andusable in all climates. It is a cold mix asphalt mixture in asmall bag that can be handled with one hand and thrown in ahole to fill it. It is an environmentally-friendly product withwater-soluble packaging that does not generate waste.

53Forecasts, plans and any other forward-looking
statements contained herein are based on theinformation currently available and assumptions
and hypothesis deemed to be reasonable by theCompany. Actual results may differ from thesestatements due to future changes in the businessenvironment and various other factors.

Inquiries

Administration Division / Corporate Planning OfficeTEL+81-3-3405-1811

FAX+81-3-3405-9800

URL https://www.toadoro.co.jp