[TAISEI VISION 2030]
Achievement Plan
/ Medium-Term Business Plan
(2024-2026)

Ⅰ. Medium- to Long-Term Vision [TAISEI VISION 2030]
Ⅱ. Assumptions of [TAISEI VISION 2030] Achievement Plan

CONTENTS

Ⅲ. [TAISEI VISION 2030] Achievement Plan
Ⅳ. Medium-Term Business Plan (2024-2026)

Taisei Corporation
Taisei Rotec Corporation
Taisei-Yuraku Real Estate Co., Ltd
TAISEI U-LEC Co., Ltd.
TAISEI SETSUBI Co., Ltd.

SEIWA RENEWAL WORKS CO., LTD
Taisei-Yuraku Real Estate Sales Co., Ltd.
TAISEI HOUSING CORPORATION
Satohide Corporation, and others1. Medium- to Long-Term Vision[TAISEI VISION 2030]
Taisei Group Philosophy｜To Create a Vibrant Environment for All Members of Society
Taisei Spirit｜Active and Transparent Culture, Value Creation, and Evolution of Tradition
Materiality｜(see Ⅱ-3. Review of Materiality)

IX

SX

DX

M edium- t o Long-T erm
Ext ernal Env ironment andSt ruct ural Changes[TAISEI VISION 2030] ～ Embodying Taisei Group Philosophy and Taisei Spirit～

The Ever-Evolving CDE3(cubed) Company〔Construction, Development, Engineering, Energy, Environment〕

A pioneering corporate group “contributing to the development of a resilient society where people can live affluent and cultural lives”

Basic stanceNumerical Outlook for Performance (Profit–oriented

1

Achieving safety and security

2

Optimal utilization of “Human Capital”,“Technology” and “Intelligence”

１

Group net income

Approx. ¥150.0 billion

２

ROE

Approx. 10％* Estimated Group net sales

Approx. ¥2.5 trillion

Returns to Stakeholders
1

Customers, Suppliers,
and Society

2

Shareholders

Dividend payout ratio: 25-30％

3

Employees

Creation of an attractive working environment that enables diverse employees to leverage their skills to
the maximum possible extent; expansion of Human Capital Investment; physical, mental, and social
health and feeling of happiness (well-being); and realization of diverse career paths

Returns through CDE3, resolving issues, and new value creation

2

TAISEI VISION 2030

Ⅱ

Assumptions of the [TAISEI VISION 2030]
Achievement Plan

Reflecting in [TAISEI VISION 2030] Achievement Plan the issues based on an
analysis on our failure to achieve the target of the previous Medium-Term Business
Plan and the status of the medium- to long-term external environment andstructural changes, which were identified when formulating [TAISEI VISION 2030]

Ⅱ-1. Summary of Medium-Term Business Plan
(2021-2023)Medium- to Long-Term External
Ⅱ-2 . Environment and Structural Changes
Ⅱ-3 . Review of Materiality

Identifying the latest sustainability issues and reviewing our materiality toresolve environmental and social issues through the business operations

Ⅱ-4 . Corporate Culture Reform

Ⅱ- 1. S u m m a r y o f M e d i u m - T e r m B u s i n e s s P l a n ( 2 0 2 1 - 2 0 2 3 )Medium-Term Business Plan (2021-2023) Numerical Management Targets(0.1 Billion Yen)FY2021Results

FY2023

FY2022
Results

Results(Medium-TermBusiness Plan
Targets)

1,543.2

1,642.7

1,765.0（2,000.0）

187.7

147.8

127.4

（245.0）Group Operating Income

96.1

54.7

26.5

（140.0）Group Net Income

71.4

47.1

40.3

（100.0）

ROE

8.4%

5.6%

37.0%

53.9%

-274.8-214.3

4.6%
60.3%
-58.5

Group Net Sales
Group Gross Profit

Dividend Payout Ratio
Net Interest-bearing Debt

We were unable to achieve the targets fornet sales and profit.
<Factors for not achieving the targets>

We were unable to achieve the targets for net sales andprofit because of decline in the contract price due tofiercely competitive environment and the impact of theabnormal soaring prices of construction materials.

（Approx. 10%）（Approx. 25％）
(Maintaining state of
substantive debt-free

We will realize improvement in profit level by steadily
implementing [TAISEI VISION 2030] Achievement Plan

management)

Achievements and issues with the Group Infrastructure Development Plan
M&A has been successfully completed for Satohide Corporation, which has competitiveness in high-end residences and traditional

Achievements

M & A： wooden buildings, and for P.S. Mitsubishi Construction Co., Ltd., recognized for its advanced technological capability in the prestressed
concrete field, and expanding our business scope has been significantly progressed.

Energy and Environment ： We earned an “A” rating in CDP* Climate Change 2022/2023.
Safety： We achieved zero fatal accidents in the Group for 2023.
Technology Development： Environment-related technology development (ZEB, CO2 capture and storage, etc.) has progressed steadily.
DX: Although the development of BIM/CIM, automation of heavy machinery, etc. has progressed, the effects have been limited due to the lack

Issuesof cross-organizational responses.

Workstyle Reform : High level of busyness has continued due to an inability to achieve appropriate workloads and personnel assignment.
Quality: Serious performance quality and construction process problems occurred. We recognized the existence of problems in our corporate
culture behind the problems.

*CDP: A British non-governmental organization (NGO) that scores companies on their levels of environmental stewardship.

4

Ⅱ- 2. Medium- to Long-Term External Environment and Structural Changes
While investment appetite is strong, the gap between supply and demand is widening due to tightsupply capacity.
Efforts to address the three "Xs" are accelerating and becoming more sophisticated.
Outlook for Construction Demand On the demand side, there has been a strong appetite for investment,
mainly due to the post-COVID-19 economic recovery, while on the supply
side, it will remain flat due to a steady decline in the number of workers,
although productivity will improve.

The gap between supply anddemand will continue to widen,
putting sustained upward
pressure on construction costs.

Summary of External Environment and Structural Changes

IX

SX

DX

Industry Transformation
Increasing Pressure for Construction Industry Restructuring

Sustainability Transformation
Moving to Solve Environmental and Social Issues through Our Business

Digital Transformation
Towards an Era where Digital Transformation Determines CompetitivenessAs a major general contractor, we will focus on thehealthy development of construction industry
through industry restructuring.

We will keep up with international frameworks andthe latest trends, update measures, and disclose
them appropriately.

It is necessary for us to establish a cross-functional
promotion system, to accelerate the pace oftransformation, and to secure digital talents.
5

Ⅱ- 3. Review of Materiality
To solve environmental and social issues through business operations, we reviewed materiality, as well as
its positioning in our structure of values and policies, considering the latest sustainability issues.
Materiality
Issue for Customers/Society

Co-creation of new value to realize
affluent lives
Issue for the Environment

Realization of a sustainable,
environmentally friendly society

Intent To provide new values beyond our customers’ imaginations by incorporating thesocial values required in the future into urban development and infrastructuredevelopment through internal and external collaboration as well as open innovation
 To contribute to the realization of a sustainable and environmentally friendly society
through our business by developing and promoting environmental technologies andservices while recognizing the impacts of our business activities on and from theenvironment, and complying with environmental laws and regulations

Issue for Employees/Suppliers

Realization of a society and workplaceenvironment where everyone can work
lively To create an environment where everyone involved in the Group’s business,
including the employees in the Group and suppliers, can maximize their abilities inaccordance with their own career plans
 To respect the human rights of everyone involved in the Group’s business

Integrity and Pride in manufacturing:
Safety, Quality, and Technology

 To strive consistently to further improve our abilities, recognizing again that safety,
quality, and technology are the starting points for customer satisfaction and thesolution of social issues

Fair corporate activities that
support trust:Compliance and Governance To thoroughly ensure compliance in order to increase our stakeholders’ trust, and tomaintain a governance system to maximize corporate value and prevent damage6

Ⅱ- 4. Corporate Culture Reform
Purpose of Corporate Culture Reform
While taking care of each employee at the center of management, to develop a working environment that enables theimplementation of the “Commitment of all Taisei Group executives and employees” toward a “corporate culture where lives of
employees are respected” by maintaining direct dialogue between management and employees
To aim to create new value for customers and society and to further enhance corporate value by encouraging "change to proactive
behavior" among executives and employees, and by enabling them to fully demonstrate their individual abilities while maintaining
a sense of pride and self-awareness in their work

Further Enhancement of Corporate Value
New Value Creation
Change to Proactive Behavior

Process

Target of Reform

Corporate Culture Where Lives of
Employees are Respected

Commitment of All Taisei Group Executives and Employees
1. To be considerate of and care for others
2. To make casual and flat communication routine
to deepen mutual understanding

Communicationand Management
Styles

3. To make a habit of dialogue that address essential issues
4. To respect processes as well as the results
5. For both management and employees to act based on a
medium- to long-term vision
6. To cooperate with each other across divisions and companies,
and to sincerely engage with society and customers as one
7. To keep changing and growing through trials, challenges, andfeedback＜Background＞

Bottom-up
ReformActivities(Divisions,Branches,
any type oforganizations)

Systems/Rules
Top-down
ReformActivities

Organizations/Operations(Operation Line)

Direct dialogues
between the
management
and employees

Monitoring
Engagement
surveys,
Reactions to direct
dialogues

 Management recognized that there are corporate culture issues behind the series of inappropriate events occurred during the period ofprevious medium-term business plan.
 We have started corporate culture reform in order to restore damaged trust, achieve [TAISEI VISION 2030], and enhance our corporate value.
7

TAISEI VISION 2030

Ⅲ

[TAISEI VISION 2030] Achievement Plan

Ⅲ-1. Overview of [TAISEI VISION 2030] Achievement Plan
Ⅲ-2. Image of the Achievement of the Targets in [TAISEI VISION 2030]
Ⅲ-3 . Fundamental Management Policy
Ⅲ-4 . Policy on Business Foundation Development
Ⅲ-5 . Medium- to Long-Term Business Strategy
Ⅲ-6 . New Business Model
Ⅲ-7 . Methodologies for Business Transformation

Ⅲ- 1. Overview of the [TAISEI VISION 2030] Achievement Plan
Summary of the MediumTerm Business Plan
(2021-2023)

Medium- to Long-Term
External Environment andStructural Changes[TAISEI VISION 2030][TAISEI VISION 2030] Achievement Plan
Fundamental Management Policy●Financial Policy ●Human Capital ●Technology Development

Policy on Business Foundation Development●Sustainability Strategy (Environment, Energy and Human Rights) ●Safety ●Quality

Medium- to Long-term Business Strategy
New Business Model Regional
Collaboration
Strategy O&M Businesses

CGroup Domestic Building
Construction BusinessGroup Domestic Civil
Engineering Business

DGroup Domestic Real Estate
Development Business

E

Group Engineering BusinessGroup Overseas Business

Methodologies for
Business Transformation
• M&A
• DX
• New Business
Generation
Supporting
ProgramMedium-Term Business Plan(2024-2026)
To set milestones for the next three years based on materiality and [TAISEI VISION 2030] Achievement Plan
Numerical Management Targets

Investment Plan

Non-Financial Targets9

Ⅲ- 2. Image of the Achievement of the Targets in [TAISEI VISION 2030]
We realize improvement in profit level by steadily implementing medium- to long-term business strategies
for each segment, as well as by creating new business model and transforming businesses utilizing DX
and M&A.
[TAISEI VISION 2030] Numerical Outlook for Performance and Transition of Performance
Net Income （Left Scale）(¥100
million)

ROE（Right Scale）

1,500

15.0%
Net income
150.0 billion

Approx. ¥ROEApprox.

Net income¥80.0 billion

1,000

10.0 %
10.0%

ROE

Approx. 8.5%

Net income¥40.3 billion

ROE

4.6%

500

0

2018

2019

2020

Medium-Term Business Plan (2018-2020）

2021

2022

2023

Medium-Term Business Plan (2021-2023)

5.0%

2024

2025

2026

Medium-Term Business Plan (2024-2026)

2030

0.0%

[TAISEI VISION 2030](Numerical Ｔargets for FY2026)
 The sale of cross-shareholdings not decided to sell and M&A are not included in numerical targets for FY2026.
In addition, we, Taisei Group, aim to reduce our cross-shareholdings to less than 20% of our consolidated net assets by the end of FY2026, and if we reduce themin line with the targets, we expect to achieve ROE of approx. 10%.

10

Ⅲ- 3. Fundamental Management Policy: (1) Financial Policy
Recognition of Cost of Shareholders’ Equity* and PBR/ROEThe Cost of Shareholders’ Equity of our Group is expected to be approx. 7.0%.
PBR for the last four fiscal years was only approx. 1.0 time mainly due to sluggish ROE.
ROE for the last two fiscal years was only approx. 5.0% due to a decline in profitability in the domestic building construction business, which isone of our main businesses.
*See, 〔Action to Implement Management that is Conscious of Cost of Capital and Stock Price〕 with regard to action to boost PER.

Diagram of ROE
Net income

Total Assets

Net Sales

Net income

EquityEquityTotal Assets

Net Sales

Financial Leverage

Total Ａssets Ｔurnover

Ratio of Ｎet Ｉncome to Ｎet Ｓales(1) Pursuit of the Optimal Capital Structure(2) Asset Compression/Replacement(3) Strengthening the Profit Structure

ROE

Transition of Relevant Indicators■Transition of ROE/Cost of Shareholder’s Equity■ Transition of Equity Ratio■ Transition of Net Income/Net Income Ratio

20.0

50

2,000

16.2

15.0

40

11.6

10.0

8.4

6.79

5.0
0.0

6.76

2018

44.9

16.6

6.99

2019

2020

7.01

2021

6.96

39.0

44.4

6.8

41.1

39.7

1,500

36.0

2022

8.0
6.3

1,221
926

1,000

7.11
30

5.6

1,126

7.0

6.0
4.6

714

2.9

471

500

4.0
2.3

402

2.0

4.6
2023

Cost of Shareholder’s Equity(％

20

0
2018

2019

2020

2021

Equity Ratio (%)

2022

2023

2018

2019

2020

Net Income (¥100 million)

2021

2022

2023

0.0

Net income Ratio (%)

11

Ⅲ- 3. Fundamental Management Policy: (1) Financial Policy
Financial policy
PurposeTo develop foundations that contribute to enhancing the Group's corporate value

1

We, on the premise of maintaining financial discipline (maintaining our credit rating);

２

Ensure smooth execution of the construction business;３

While balancing with the shareholder returns (distribution of profits to shareholders); and４

Secure growth investment preferentially portfolio

PolicyContinued assurance of ROE of approx. 10% andpursuit of the optimal capital structure.

Implementation of growth investment basedon investment criteria and fund allocation
policies

1．Continued assurance of ROE of approx. 10% and pursuit of the optimal capital structure(i) KP I to boos t RO E :(1) Pursuit of the optimal
capital structure(2) Asset compression /replacement(3) Strengthening the
profit structure

Earn large profits
with small-case B/S

Financial leverage:

Total assets turnover:

Ratio of Net Income to Net Sales:

2.5 times(1) Pursuit of the optimal
capital structure(2) Asset compression /replacement(3) Strengthening the profit
structure(ii) Shareholder Returns

1.0 time

5％• To adhere to a net debt to equity ratio that allows the rating to be
maintained (Approx. 0.4 times)• To maintain equity ratio of approx. 40% (financial leverage of 2.5 times)• Total Asset Turnover: 1.0 time or more
• Sale of cross-shareholdings (Reduce to less than 20% of consolidated net
assets by the end of FY2026)• To limit the risk asset balance to a certain ratio of consolidated
shareholders’ equity through comprehensive risk management

ROE: 10%or more• Ratio of Net Income to Net Sales: 5% or moreDividend Payout Ratio: To maintain approx. 30%, assuming long-term and stable dividends

To acquire treasury share up to a total return ratio of 100% in the event that surplus funds are generated after implementing“Growth Investment" and “Shareholder Dividends"

12

Ⅲ- 3. Fundamental Management Policy: (1) Financial Policy
2． Implementation of investments based on investment criteria and fund allocation policies
Fund
Allocation
Policies To judge the individual investment decisions based on investment criteria (to set hurdle rates according to businesscharacteristics)
 To finance based on KPI to pursue the optimal capital structure
 To review the priorities and allocation ratios as necessary in response to changing conditions
 To treat the excess over the minimum cash and cash equivalents balance during the current FY period among “internal reserve
funds” is treated as surplus funds, and allocate to “investments” and / or “shareholder returns” as necessary

Outlook for the Optimal Capital Structure

Conceptual diagram of the fund allocation policy
Source of Funds

Use of Funds
Investment items

External Financing

Liabilities

Financing based on
KPIs for the optimal
capital structure

Investments
Cash flow fromOperatingAssetsTotal Assets
TurnoverRatio
1.0 time

Net D/E ratio:
0.4 times
EquityEquity ratio:
40％

Shareholder
Returns
Cash flow from
Investing
Activities
Internal Reserve
Funds

Technology
Development/DX
investment
Human capital investments
New business modelsrelated Investment

2. Business investments
1.
2.

(Sale of Assets*)

Surplus Funds

1.
2.
3.

Cash flow afterrecording P/Linvestment treated as aperiodic expenses

Interest-Bearing
Debt

1. Growth investments

Investments in development
projects
Investments in renewableenergy3. Infrastructure
maintenance investment
M&A investments* Including sales of cross-shareholdings13

Ⅲ- 3. Fundamental Management Policy: (2) Human Capital

Funda
mentalPolicyWe recognize that human capital is a source of competitiveness and swiftly implement the necessary
measures.
. To create an environment in which employees can realize their full potential to enhance their engagement To expand human capital investment to support the Group’s sustainable growth Physical, mental, and social health and feeling of happiness (well-being), and realization of diverse career paths

Outlook for the expansion of human capital

Job
Satisfaction
Remuneration

Elimination ofHarassment
HealthManagement

Benefits

Workstyle
ReformSpread of DE&I

Ease of Work

<Personnel Policy>① Recruiting To carry out recruitment based on image of thehuman capital required in each department, considering DE&I

Ｔ[ＡＩＳＥＩ ＶＩＳＩＯＮ ２０３０ ]⑤Evaluation⑥ Energizing
seniors
Preventing
turnover④

Development

Allocation②

Recruiting③①

Human CapitalManagement Cycle

Enhancing employees’ engagement, Well-being, Diverse career paths

Human Capital requiredfor personnel strategy
in each business field② Development To develop a human capital development planfor each employee to acquire diverse and highly specializedskills③ Allocation To allocate employees efficiently and in aplanned manner based on an understanding of their skill
improvement levels, career aspirations, and aptitudes④ Evaluation To change evaluation system from that which
focuses on performance to that which takes account of
behaviors and skills, etc. required by the Company⑤ Remuneration To review salary system to ensure attractive
compensation levels linked to the career paths and evaluation
system of employees⑥ Energizing Seniors To improve their remuneration, makethem reskill and review retirement system, to energize
competent and motivated employees⑦ Engagement To implement measures to enhance ease ofwork and job satisfaction of employees⑧ Temporary Employees To consider appropriate number of
temporary employees according to our business scale,convert excellent temporary employees into regular
employees, and establish training system14

Ⅲ- 3 . Fundamental Management Policy: (3) Technology Development

Funda
mentalPolicyWe have identified four technological areas to be addressed: social and environmental issues,
strengthening social infrastructure, regional revitalization, and new frontier business.
 To leverage our strengths of environmental and social infrastructure enhancement technologies such as ZEB and T-eConcrete®, pursue
technological expertise required by the society for major general contractors, and differentiating ourselves from other competitors bybrushing up such expertise To enhance the productivity and innovate production process by utilizing technologies such as generative AI, automation, and remotecontrol in order to resolve the urgent issues of a shortage of workers

Technology Mapping
Perspectives and approaches to address(1) Response to individual
project(2) Response to enhancement of
the productivity and innovation of
production process

ZEB / RNZEB, ZCB, woodenbuilding (next-generation
technology research institute),
smart building (Honmachi 4chome project), floating offshore
wind power, utilizing T-eConcrete

Construction robots, 3D
printers,
T-iDigital® Field,
T-BasisX®

To strengthen social
infrastructure(Natural disasters,
infrastructure)

Highway renewal, Earthquakeresistant reinforcement of
infrastructure

Remote control, automation
and autonomy of heavymachinery, and its simulationand sophistication of theanalysis

Regional revitalization(Community design,
infrastructure)

Sophistication of integrated
supply and demand energy
management system (AEMS,
etc.)

Metaverse utilization (digitalcommunication, etc.)

New frontier business(Business model)

Development of service robots （transportation, guidance,
cleaning)

New construction materials

Utilization of generative AI

Areas to be addressedSocial and environmental
issues(CN, CE, NP,
working environment,
etc.)(3) Response toconstruction-related
business and new business(4) To explore futureissues and innovative
initiatives

Hydrogen utilization, energy
storage, biomass, CO2 fixation,
CCS

Wood waste utilization, green
chemistry, algae sustainableaviation fuel (SAF)

Business continuity planning(BCP) support (development of
SOKUSHIN NAVI®, etc.)

Sophistication of disaster
information (response to Mt.
Fuji eruption, etc.)

Automatic operation / Wirelesspower supply (collaboration withstartups, etc.)

Optimization of wood
circulation (production,utilization, recycling)

Development of T-eConcrete®,
agricultural land utilization,
embodied carbon reduction
technology

Utilization of lunar space andlunar surface energy
utilization... Specifically focused areas15

Ⅲ- 4. Policy on Business Foundation Development:(1) Sustainability Management Strategy (Environment and Energy, Human Rights)

Environment and Energy
Funda
mentalPolicyWe achieve the Environmental Policy and the TAISEI Green Target 2050 (TGT2050).

1. For each employee to proactively participates in TSA* activities in order to achieve the TGT2050
2. Continued implementation of environmental due diligence* TSA：TAISEI Sustainable Action , an eco-impact reduction endeavor for all employees of the Group to®

collectively participate in to realize our environmental targets

Three goals for society

TGT2050 targets ■: FY2030 ■: FY2050
CO2 emissions (compared to FY2022)● Scopes 1+2｜▲42%

Decarbonized society

CN

Carbon neutrality● Scope 3｜▲25%
Ｔｏ Achieve and enhance carbon neutrality● Scopes 1+2｜Zero CO2 emissions● Scope 3｜Zero CO2 emissions from the supply chain

Specifically focused targets toward Year 2030
● Scope 1｜To promote of TSA and to ensure energy conservation● Scope 2｜To possess our own power supply for consumption
within the Group (220 GWh)
● Scope 3 upstream｜To develop our technology for low carbon /decarbonized construction materials● Scope 3 downstream｜To develop ZEB technology● To promote procurement and technology development thatrealize T-ZCB● To Promote green procurement

Recycling-oriented society

CE

Circular economy● To reduce the final disposal rate of construction waste to 3.0% or lessTo achieve and enhance a circular economy● Green procurement rate: 100%

● To promote 3R (Reduce, Reuse, Recycle) + Renewable activities● To study new targetｓ indicators that substitute for the final
disposal rate and the green procurement rate

● Final disposal rate of construction by-products: 0%
To contribute nature positive initiatives by the following:● Implementing over 50 projects per year

Nature co-existing society

NP

Nature positive● Applying the evaluation methods to 30% of Design & Build projects);
and Responding to marine issues
Achieving and enhancing nature-positive initiatives● To minimize the negative impacts associated with our construction
business● To implement technology development, proposals, andconstruction works that contribute to nature positive● To develop an evaluation method for achieving nature positive● To maximize the positive impacts of projects that ensure coexistencewith nature16

Ⅲ- 4. Policy on Business Foundation Development:(1) Sustainability Management Strategy (Environment and Energy, Human Rights)

Human Rights
Funda
mentalPolicyWe respect human rights of each employee involved in the Group’s business.

From the medium- to long-term perspective, we expect certain progress in thefollowing criteria. It is also necessary for us to respond newly emerged humanrights issues associated with the development of AI, etc.

Human rights due diligence process and its supporting measures

 Enhancement and tightening of the responsibility to respect human rights
 Humane employment that is good to work in (Decent Work) Ethical consumption

5

２

By appropriately addressing these challenges, we will “improve our corporate
reputation”, “increase opportunities for securing orders”, “enhance the productivity”, and“develop human capital” throughout the Group's entire supply chain.
1

6Specifically focused targets toward Year 2030
Note: For measures toward employees of the Company and the Group, please refer to“Fundamental Management Policy / Human Capital”.

Long-Term Targets

FY2030 Targets

Zero human rights violations
throughout the Group's
supply chain

Status of sustainability activities among our
suppliers 100% confirmed across the GroupSpecifically focused targets
toward Year 2030

 Enlightenment and promotion of humanrights awareness through continued
implementation of human rights due diligence Enhancement of dialogue with stakeholders
 To ensure a comfortable working
environment for all employees, and to adopt
measures for ethical consumption

4

3

To Implement continuously and improve items ② to ⑤

Humanrights due
diligence
process① To incorporate it into policies and management systems② To identify and assess adverse impacts③ To end, prevent, and mitigate adverse impacts④ To follow-up assessment on implementation status and results⑤ To disclose information⑥ To take corrective actions or cooperate with them for correction17

Ⅲ- 4. Policy on Business Foundation Development: (2) Safety and (3) Quality
SafetyFunda
mentalPolicyWe aim to maintain zero fatal accidents, zero serious accidents, and zeroenvironmental accidents.
To enhance our efforts to maintain zero fatal accidents and zero serious accidents
To make technical improvements in accident analysis (DX and secondary use of work-at-site
data, etc.)
To upgrade safety training for our employees
To enhance environmental training and patrols
To support Soyukai* member companies to secure appropriate workforce* Soyukai: Association of key subcontractors and suppliers (partner firms)

QualityFunda
mentalPolicyWe uphold proper quality control, aim to eliminate all defects attributable to quality
mismanagement and improve customer satisfaction.
To eliminate deviations from quality control processes and establish a quality control
monitoring system through cooperation among relevant departments and sections
To share quality-related information utilizing digital technology
To maintain ISO9001 external audit and certification
To use customer evaluation results effectively
To collect and evaluate trouble cases and share them with all the executives and employees18

Ⅲ- 5. Medium- to Long-Term Business Strategy:(1) Group Domestic Building Construction Business
Outlook for Gross Profit in FY2030 (Hundred million yen)

What weshouldaim for in
FY2030By drawing up a growth strategy that meets
society’s changing needs and providing building
construction-related services backed up by ourtechnology, we will enhance values of customer andsociety.
—To provide environmental technology and smart digitaltechnology and develop our business in the stock market—

Scenario to realize what we should aim for

Selection of
focused fields

To expand thesystem for the
performance of theworks including
design services,
improve profitability,and pursue thegroup synergy

1,500

1,000

(Renewal Works, Nonconsolidated)

500

0

2022

2023

2024

2025

2026

2030

△500



To shift our mind-set to order-receiving activities on the premise of soaring prices of the materials
and focus on business fields with high potential (semiconductor factories, etc.)To allocate our resources to renewal and engineering related projects as well as urban
redevelopment related construction, both of which are our strengths.

To expand proposal-based sales through environmental technology and the building lifecycleTo realize proper workloads and personnel assignment, and prevent quality and construction
process problems

To enhance the procurement capacity by acquiring new suppliers and establish a new overseas
procurement networkTo enhance collaboration within the Group companies, such as recruiting and deployment ofenvironment related technologies by utilizing our brand strengths
19

Ⅲ- 5. Medium- to Long-Term Business Strategy:(2) Group Domestic Civil Engineering Business

What weshouldaim for in
FY2030We will contribute to solving environmental andsocial issues as the leader in infrastructuredevelopment by leveraging our advanced
technological capabilities and the Group’s
comprehensive capabilities.
—Expansion of business fields in national resilience, carbon neutrality,
infrastructure renewal, etc.—

Outlook for Gross Profit in FY2030 (Hundred million yen)
1,500

1,000

500

0

Scenario to realize what we should aim for
System forreceiving an orderand theperformance of theworks
Carbon neutralityrelated (offshore
wind power, nuclear
power, CCS)

Group companies

2022

2023

2024

2025

2026

2030



To increase employment of new graduates and career hires, develop training system, and arrange
proper working environment for active participation of senior employeesTo initiate systematic training for employees particularly designated for highway renewal projects,
and establish support teams to reduce work burden at siteTo promote technological development of dam-related works and improve accuracy of estimation

To promote technology development for offshore wind power through acquisition of its technology
license, participate in its experimental projects, and establish base sitesTo promote technology marketing in relation to nuclear power plants

To utilize external business resources to acquire technology and know-how for new business fields,
including CCS

To continue human resource support for design change negotiations by accumulating knowledge at
the newly established tender sections

To secure appropriate personnel through the improvement in remuneration and group-wide recruiting
activities

To promote M&A in the fields of paving and renewal, where business synergies are expected20

Ⅲ- 5. Medium- to Long-Term Business Strategy:(3) Group Real Estate Development Business
Outlook for Gross Profit in FY2030 (Hundred million yen)

What weshouldaim for in
FY2030We will contribute to high value-added urban
development by making the most of our“development know-how” and “technologicalcapabilities” as a general contractor.

500—To build a sustainable and progressive group real estate development
business structure and pursue maximum group synergy—

200

400
300

100
0

Scenario to realize what we should aim for

Maximization of
profits byleveraging
developmentknow-how

To create business
utilizing ourtechnologicalcapabilities as a
general contractor

2022

2023

2024

2025

2026

2030



To create investment opportunities in the real estate development business by targeting large-scale
development projects and redevelopment projects, while leveraging our real estate development
capabilitiesTo pursue profit opportunities by promoting collaboration and sharing know-how among the Groupand our company’s departments (domestic and overseas real estate development, Taisei-Yuraku
Real Estate Co.,Ltd. Group, and others)To recruit and train human capital in an integrated manner, both domestic and overseas real estatedevelopment business, and assign them in accordance with the required competence and each
employee’s capabilityTo differentiate ourselves from other competitors through our technological capabilities bydeveloping products for our own real estate development projects that adopt our advanced
technologies (carbon neutral, greening, smart buildings, resilience, etc.)

To create investment opportunities for the real estate development business by utilizing particularbuildings, on which our technologies are adopted, as our showroomsTo reflect operational know-how in our project planning in collaboration with our Design Division
and Engineering Division, etc., to develop new business fields (hotels, logistics, and data centers)21

Ⅲ- 5. Medium- to Long-Term Business Strategy: (4) Group Overseas Business

What weshouldaim for in
FY2030

While growing by utilizing the technical know-how
we have cultivated through domestic business
operations, we will contribute to the economic andsocial development of the countries in which we
operate by establishing high-quality infrastructure.

—To promote localization in overseas growing markets, differentiate
ourselves from other competitors with our high technological capabilities,
and create an attractive business structure—

Outlook for Gross Profit in FY2030 (Hundred million yen)
150

100

50

0

Scenario to realize what we should aim for

2022

2023

2024

2025

2026

2030



To combine the functions of the branch (construction works and corporate function), marketing andsales, and real estate development and reorganize them as the International Operations Headquarters,develop synergies by combining the construction business and the real estate development business
into a single profit center, and expand business opportunities and build a stable profit baseIn prioritized countries, to increase the number of the potential customers and projects bypromoting the transfer of authority to overseas subsidiaries, train local human capital, and makeminor investment in local construction companies

Civil EngineeringMainly in three prioritized countries, to focus on projects in which we have advantages by enhancing
our marketing and sales, estimation, and construction capabilities utilizing our alliance partners

Real Estate
Development

To train employees designated for overseas projects and enhance business information on real estatedevelopment collaborating with local partners as well as utilizing the network of local engineers andlocal subsidiaries

Energy andInfrastructureTo participate in infrastructure-related PPP and concession projects as a trial project to acquire newsources of profit, and acquire business operation know-how

Organization

Building Construction22

Ⅲ- 5. Medium- to Long-Term Business Strategy: (5) Group Engineering Business

What weshouldaim for in
FY2030

While incorporating the latest technologies in manufacturing
facilities, we will provide customers with a consistent service
system from planning, design, and construction tomaintenance and management of production facilities byleveraging our advanced engineering capabilities as well as
our Design & Build capabilities in building construction andcivil engineering as a general contractor.

―To assign human capital into marketing and sales and design departments,
secure production capabilities through the collaboration with the third parties, andestablish engineering-oriented projects—

Outlook for Gross Profit in FY2030 (Hundred million yen)
150

100

50

0

Scenario to realize what we should aim for

To maintaincompetitiveness

System and costsforthe performanceof the works

2022

2023

2024

2025

2026

2030



To enhance our market share in the pharmaceuticals field and acquire a capability of proposals
differentiating ourselves from other competitors, such as our advanced technologies essential to the
expansion of our business field in the semiconductor industry, through the collaborations with third
parties including alliances

Regarding food-related fields, to concentrate on feasibility studies and consulting services, as well as
automating and labor-saving projects

Regarding logistics facilities fields, to concentrate on warehouse projects furnished with production
facilities in the manufacturing industry

To secure internal operation resources through systematic recruitment and training as well as flexible
staff assignmentTo enhance our productivity by concentrating on planning works while utilizing alliance partners forconstruction works

To establish an internal support system for procurement, estimation, quality control, safety
management, construction schedule management, and others23

Ⅲ- 6. New Business Model
Outlook for our Business Model in [TAISEI VISION 2030]
Funda
mentalPolicyWe will restructure the business foundation as suitable for the core business by rebuilding our domestic building
construction business, and then aim to stabilize the profit base by diversifying our business through investing resources
onto business related to building construction business and providing the various construction-related services

Outlook

Scenario

Services

New Business Fields(1) To restructure the business foundation for the core andperipheral businesses [To rebuild existing businesses]

Challenge/Seeding

To expandbusiness fields,
upstream anddownstream

To diversify
business andhuman capital③

Current Position①

2④

To diversify
sources of profit

 To spare rooms for assignment of personnel and working hours through introductionof back-office operations and reviewing the site office management process As a leading company in the environmental field, to initiate decarbonization ofbuildings, promote the use of digital technologies, and increase our profitability(2) To develop business market [Expansion/shift of targeted market]

To shift humancapital to new
business field
To create Group
Synergies

To restructurebusinessfoundation for thecore and peripheralbusinesses②④

Challenge/
Seeding To increase number of employees in and shift human capital to renewal andengineering fields where we have our advantage
 To develop new markets for our core and peripheral businesses by effectively
utilizing our proprietary technologies and facilities(3) To expand business fields upstream/downstream[Diversification of services we provide]

To develop market

 Upstream: To take part in an energy or infrastructure business as provider byleveraging our comprehensive capabilities
 Downstream: To acquire the capability to comprehensively undertake O&M*
business by utilizing energy management services and IoT technologies, andfurther enhance our business portfolio* O&M: Operation＆ maintenance(4) To diversify sources of profit[To challenge to enhance our business fields]

To pursue profits and productivity▼

To generate spare capacity

Current Position

New markets
Market To commercialize proprietary technologies and employees’ ideas in a form different
from the construction business To utilize various external business resources through alliance partners and othermeans, and boldly cultivate future technology seeds24

Ⅲ- 6. New Business Model: (1) Regional Collaboration Strategy
Funda We will seize the increasing expectations of local governments and local companies toward major generalmental contractors as “problem-solving partners”, enhance our advantage in receiving orders by creating new marketing
Policy & sales process derived from resolving local issues solutions and aim to establish the new business.

Aims and images of regional collaboration
To identify ideal
timing ofparticipation

PhasesTo recognize
current timing ofparticipation

New business model: To participate in from the network building phase

To create
Business

To build
Network

To generatebusiness

To build abusiness model

To participate inbusiness

Design & Build

Result of an effort by marketing & sales department’s at branches： to increase favorable orders and improve area sales capabilities
To get involved in local
communities

To propose
Design & Build

To improve area sales
capabilities

To obtain orders
T o

T o

c o o p e r a t e
w i t hTo obtainordersc o o p e r a t e
w i t hc o o p e r a t e
w i t hTo participate inbusinessT o

c o o p e r a t e
w i t hTo makebusinessjudgementc o o p e r a t e
w i t hT o

T o

Project status (image)To grasp regional issues

技術人脈

Result of the technology division’s efforts: To implement and commercialize technologies in the area
To apply and demonstrate technology

To take a “trial and error
approach”

To build and commercialize business
schemeTo engage in business operations and introduce
them to other areas25

Ⅲ- 6. New Business Model: (2) O&M Business
Funda
mentalPolicyWe will enhance the O&M business by engaging ourselves not only in the operation area as the existing businessbut also in the management area, and undertaking comprehensive facility management operations which falloutside of customers’ core businesses.

Business areas

Purpose to engage in O&M business from the viewpoint of our core business

Management
strategy

 To build long-term business relationshipwith customers and maintaincompetitive advantages

 To receive orders for new building andrenewal works by concentrating ourresources onto O&M business and engaging
ourselves in the investment planning phase

Operation area

To take daily
management

Management area

Budget control
for facilities

Cost save planning

Images of business fieldenhancement(cleaning/sanitary)/

SecurityRoad maps
During the Medium-TermBusiness Plan (2021-2023)[Business preparation phase]

During the Medium-TermBusiness Plan (2024-2026)[Capability acquisition phase]

After the Medium-Term Business
Plan (2024-2026) [Businessenhancement phase]

To takeperiodic
inspections

To consider
Renewal (minor
and userepairs) and valuebuilding lifeup works
cycle

Facility management

2021

202２

202３

202４

202５

202６

Energy management
What we should aim forOperation area

Building and M&E
management
Cleaning and sanitary
management

Current situation
To implement DX in group companies
and establish systems to utilize AI andIoT

To build business foundations andsecure competitiveness by improving
business operations through DX andsupporting the customers for entire
building life-cycle management

202７

…

20３０

What we should aim for
To enhance business opportunities by
providing services in the management
area and promoting the variety ofintended use for facilities such as
factories, hospitals, and others

Long-term
management
andmaintenanceplan

To carry out
building inspection
To perform energy
management

Budget management
for facilities
Repairs, maintenance, etc.
Renewal works
To determine timing ofreconstruction

Management area
To control the facility's budget plan inorder to receive orders for renewal andnew construction works

Security and inspection26

Ⅲ- 7. Methodologies for Business Transformation: (1) DX
Funda
mentalPolicyWe will enhance corporate value of the Group through swiftly utilizing information (digitaltechnology and data)
Core technologies and digital talents

Key themes3

To realize integration and displacement of construction
management, implemented by digital twin and remote technology

4

To promote technology transmission through in-house data collection, and expansion,
upgrading, and industrialization of labor-saving and unmanned technology

５

To co-create digital twin and upgrading of management across theentire stakeholder

２

To realize talent management that leverages individual management
capabilities and expertise through understanding potential and skills,
utilizing AI

1

To promote smart buildings and structures and expand services
for customers utilizing data2

To create and develop new businesses that contribute to the entire life
cycle of urban and social infrastructure2027-2030

 Further Development and Advanced
Utilization of BIM (~5D*)

 Further Development and Advanced
Utilization of BIM (~8D*)

 To expand alignment with heavy machinery androbots, and promote data utilization inconstruction management and constructionworks

 To standardize digital twin construction

 To expand alignment with BIM/CIM,T-BasisX®
/X-grab/ T-iDigital® Field, LifeCycleOS®, andinternal core systems

 To transform to digital twin infrastructure
towards urban development andmanagement services

 To establish AI governanceAI To build GPT common framework

Integration

Digitaltalents

Service/
Solutions

To integrate internal and external data into a digital twin and realize
analysis and forecasting through collaboration with AI

2024-2026

Integration

Remote technologies

Managementfoundation

1

Digital twin

To promote consistency securement and front-loading of design
through advanced utilization of AI and BIM/CIM(BIM/CIM + IoT)

２

Contribution to Sustainability

Production process1

To automatedly acquire and store all the data on completed works
and quality control in a digital twin, utilizing IoT

 To apply AI throughout theconstruction life cycle

 To apply AI throughout the construction life cycle

 To expand the work sites applying remotefield and remote support services

 To co-create digital twin and businesscooperation with the owners and supply
chains via metaverse

 To promote labor-saving and unmanned
construction by automatic control andremote control of heavy equipment androbots To promote standardization of unmanned
construction by remote interaction withheavy equipment and robots

 To develop prototype for verification of newtechnologies

 To apply new technologies (opticalcommunications, etc.) as our standard

To accelerate DX promotion by expanding DX Academy, a company-wide digital education
institution* 4D: Construction process management, 5D: Cost management, 6D： Sustainability, 7D：Maintenance management, 8D： Safety management27

Ⅲ- 7. Methodologies for Business Transformation : (2) M&A
Funda
mentalPolicyWe will focus more than ever on the healthy development of construction industry through industry
restructuring ((1) Horizontal integration aimed at industry restructuring).
Also, we will build a new growth foundation specifying the following targets: (2) vertical integration
targeting to secure appropriate workforce and labor-saving; (3) integration of value chain aimed at newvalue creation; and (4) overseas business development aiming at business expansion.

M&A consideration areas
Business phase

Domestic

Planning

DesignConstruction

Design DX
BIM/CIM

２
ConstructionDX
BIM/CIM

３
Townbuilding DX

Planning
Stage

Planning andDevelopment

ImplementationStage

Land
Acquisitionbusiness fields

DigitalTwin

expansion of weak business fields

２

Construction
Management

AM
PM

Researchand Survey

Specialized
Construction

Security
andCleaning

Overseas• General contractors that contribute to the expansion of advantageous• General contractors, specialized companies, etc. that contribute to the

DesignEngineering

４

To realize horizontal integration aiming at industry
restructuring• General contractors with strengths in specific areas and fields

O＆M

１

RealityBusiness Classification

Digital１

To realize vertical integration to secure appropriate
workforce and labor-saving• Design and construction company, etc. in the field ofelectrical equipment and telecommunications

３ To realize value chain integration aiming to provide newvalue• A company that contributes to value creation
throughout the project from upstream to downstream(Real estate companies and O & M companies)• A plant engineering company, etc., that possesses thetechnology differentiating from other competitors and iscapable to perform process design
４ To develop overseas business aiming at businessexpansion28

Ⅲ- 7. Methodologies for Business Transformation :(3) New Business Generation Supporting Program

Funda
mentalPolicyWe will create new pillars for future new business by developing human capital capable to strengthen the
management foundation, creating new trends for corporate culture reform, and expanding profit opportunities
through business diversification.

Flowchart of New Business Creation Support Program
To determine
screening period

Demonstration
period[Phase 2]

To s t u d y

c o m m e r c i a l i z a t io n

To make feasibility

assessment report(Reporting)

To a c q ui r e f i r s t

c u s t om e r s

TO demonstrate usingp r o t ot yp e a n d t e s t s e r v i c e

To c a r r y o u t

third screening

To make feasibility assessment

To carry out Secondary

screeningmodel

To c a r r y o u t

p r i m a r y s c r e e ni n g

To c a r r y o u ti n i t i a l s c r e e ni n g

To advertise for Ideas⇒ Employees andDepartments

To evaluate demand and business[Phase 1]

To evaluate the usefulness of technology and services by outside experts
To be accompanied by mentors (advisor and counselors)
To make follow-up with applicants (seminars, etc.)
To collaborate with human capital development programs

29

TAISEI VISION 2030

Ⅳ

Medium-Term Business Plan
(2024-2026)

Ⅲ-1. Numerical management targets
To Set profit–oriented numerical management targets
To implement investments to build a foundation for future growth and to earnbusiness profits

Ⅲ-2 . Investment plan
Ⅲ-3 . Non-financial targets
Ⅲ-4 . Main implementation measuresⅣ- 1. Numerical Management Targets
Fiscal year 2026 numerical targets
To return to growth by restructuring the profit structure of the Group domestic building
construction business, overcoming the Year 2024 problem, and expanding human capital
investment

Group
operatingincomeGroup net
income120.0 billion yen

80.0 billion yen

ROEApprox8.5%<Reference> Net sales: Approx 1,950.0 billion yen
The sale of cross-shareholdings not decided to sell and M&A are not included in numerical targets for FY2026.

In addition, we, Taisei Group, aim to reduce our cross-shareholdings to less than 20% of our consolidated net assets by the endof FY2026, and if we reduce them in line with the targets, we expect to achieve ROE of approx. 10%.



The proceeds from the sale of cross-shareholdings are to be allocated in accordance with the financial policy.
31

Ⅳ- 2. Investment Plan
Investment Plan

Investment amount(3 years)

Business
investments

Infrastructure
maintenanceinvestment*1

120.0 billion¥

Growthinvestments¥

170.0 billion

1.
2.
3.

¥

350.0 billion¥

Investment in technology development and DX:
Human Capital Investment*2:
Investment related to New business model:¥125 billion¥35 billion¥10 billion

1.
2.

60.0 billion

M&A
investments
Implemented separately

Investment related to Real Estate Development
business (recovered): ¥105 billion (▲¥176.6 billion)
Renewable energy investment: ¥15 billion［Growth investment and business investment include environmental and energy-related investment of 75 billion yen.］*1 Infrastructure maintenance investment: maintenance and operation costs of existing systems, equipment, etc. (information infrastructure investment); and maintenance and management costs of existing facilities, etc. (general capital investment)*2 Human Capital: costs associated with the revision of human resources systems (including welfare benefits), personnel costs that will increase following the policy transitions (in comparison with FY 2023) due to improvements in remuneration, etc.,
and training and development costs, etc.
.

32

Ⅳ- 2. Investment Plan
Example cases of investment
Taisei Group Next-Generation Technology Research Institute
Location, etc.

Details of
Investment

Investment
PeriodSatte City, Saitama Prefecture (site area: approx. 11,000m2 (planned))
Construction of the Taisei Group Next-Generation
Technology Research Institute

From Calendar Year 2023 to 2025•

Purpose andDetails•

Facilities to develop next-generation technologies tobe shared by the Group companies, such as lowcarbon asphalt and concrete, and wireless power
supplyTo apply the latest technologies such as carbonrecycled concrete (T-eConcrete®) and wooden
construction / wood conversion (T-WOOD®) to thefacilities, and build new zero-carbon buildings torealize a future decarbonized society

Offshore wind power

Digital Twin Metaverse
Location, etc.

Metaverse Space

Details of
Investment

Development and Trial of Construction Approval
Metaverse(TM)Investment
PeriodFrom Calendar Year 2023 onwards•

Purpose andDetails"Construction Approval Metaverse TM" is a method totransform to metaverse the BIM of planned projects
and share 3D images to facilitate to form a
consensus with the owners.
To utilize advanced technological capabilities,
including on overseas, in cooperation with the HitachiGroup
To apply and demonstrate a system underdevelopment in the construction works of the TaiseiGroup Next-Generation Technology ResearchInstitute••

Honmachi 4-chome Project

Location, etc.

Sea area in Hokkaido is considered

Project site

Osaka City

Details of
Investment

To promote technology development throughparticipation in the demonstration project for floating
offshore wind power generation

Outline offacilities

Use: School/Office Building (26 stories above ground),Hotel Building (13 stories above ground)

Investment
PeriodFrom Calendar Year 2021 onwards

Owner/
Design &Build

Taisei Corporation/SOAI Gakuen

Investment
PeriodFrom March 2022 to July 2026 (will open in August
2026)

•

Purpose andDetails•

To promote the development of semisubmersible
floating wind foundation made of concrete
To participate in demonstration projects and aim toacquire data and technical know-how for future
large-scale and mass production
After the demonstration tests, to plan to operate thefloating wind foundation as a power generation
facility for a long period
To implement the verification of the long-term
durability and soundness of the concreate material
during the operational period

Startup Collaboration•

Our project to build a school, office, and hotel incollaboration with an incorporated educational
institution of a landowner
To lead to further feedback of the proposal andtechnology based on the opinions and information
provided by the end users (tenants, etc.) in themanner of incorporating our proprietary technologies
to in-house developed office and monitoring its
effectiveness and profitability•
Supplement

Vietnam / Vinata Towers Project (2nd Phase)

Location, etc.

Nishi-Shinjuku area and, etc.

Project site

Vietnam (Hanoi)

Details of
Investment

To strengthen the development of road-vehiclealignment technology to promote autonomous driving
services

Outline offacilities

Use: Office, store, parking lot (20 stories above ground,4 stories below ground)

Investment
PeriodFrom Calendar Year 2023 onwards

Owner

•

Purpose andDetails••

To work on autonomous driving in collaboration with
TIER IV, Inc., a startup that is recognized worldwide
for its automated driving software development, inShinjuku, Tokyo, and promote development of
infrastructure technology related to autonomous
driving in tunnels
To build autonomous driving services which are to becentered in cities and link autonomous vehicles withroads and buildings in the future
To aim to expand new business opportunities bystrengthening technology development, etc.

Design & Build

Investment
PeriodTaisei Development Hanoi Co., Ltd.
(100% subsidiary of the Company)
VINATA INTERNATIONAL CO., LTD. (100% subsidiaryof the Company)
From November 2021 to September 2024 (will open in
September 2024)•

Supplement•

A project to build an office building in Vietnam(Hanoi City) by a local subsidiary in which theCompany has a 100% stake
Local subsidiary of the Company will perform thedesign and construction works and aim to complete
and open the building in FY 2024.

33

Ⅳ- 3. Non-Financial Targets
Materiality

Challenges for Customers and Society:To co-create New Values
towards Realization of aFulfilling Life

Sustainability issues

To realize a sustainable andenvironmentally friendly
society

Issues for Employees and Business
Partners

Realization of society andworkplace environment where
everyone can work lively-Safety, Quality andTechnology-

Fair corporate activities tosupport trust-Compliance and governance-

FY2026 target

Number of regional collaboration PJs

9 projects

15 projects

 Community Development and Infrastructure

ZEB ratio of design and build projects( r a t i o b y a r e a ) *1

36%

70%

Building Construction: 82.8%
Civil Engineering: 98.3%

100%
100%

290,000 t-CO2*5△18% Compared to
FY2022123 GWh*6

170 GWh

Final Disposal Rate of Construction
Waste

2.8%

3.0%

Number of PJs Contributing to Nature
Positive

50 projects

50 projects

B: 50.2

BBB: 55

22%

27%

Percentage of confirmation on suppliers’
sustainability activities, non-consolidated

54% (Non-consolidated
basis)

100%

Implementation rate of 8 days site closurep e r 4 we e k s

Building Construction: 39.0%
Civil Engineering: 69.6%

Building Construction: 100%
Civil Engineering: 100%N u m b e r o f f a t a l a c c i d e n t s a n d s e r i o u s a c c i d e n t s *2

0 cases

0 casesN u m b e r o f s e r i o u s q u a l i t y - r e l a t e d p r o b l e m s *2

0 cases

0 casesN u m b e r o f m a j o r e x t e r n a l a w a r d s *3

Building Construction: 11 awards
Civil Engineering: 11 awards*5

Building Construction: 12 awards
Civil Engineering: 6 awards

Number of patent appl i cati ons

837 applications (Total inpast three years)

840 applications (Total inpast three years)

Number of di gi tal advanced usage si te offi ces( c u m u l a t i v e ) *4

290 Sites

650 Sites

N u m b e r o f S e r i o u s C o m p l i a n c e V i o l a t i o n s *2

1 case0 casesN u m b e r o f S e r i o u s S e c u r i t y I n c i d e n t s *2

0 cases

0 cases Economic growth and growing demand forinfrastructure in emerging countries

 Carbon neutrality (Decarbonized society)• Climate change• Transition to renewable energy
 Circular Economy (Recycling-Oriented Society) Nature Positive (Nature Co-existing Society) To secure and Utilize Diverse Human

Customer satisfaction
Total CO2 Emissions and Reduction
Rate (Scope 1+2)
Renewable Energy Generation Capacity

Engagement Score
Per centage of newl y empl oyed femal e gr aduates

Capital Supply Chain Management
 Productivity, Working Environment andWellbeing

Integrity and Pride in
Manufacturing

Current value Natural Disasters

 Natural disasters
Environmental issues:

Key KPIs and targets

 Occupational Safety and Health Quality Technology Development and ＤＸ

 Governance/Compliance
Risk Management*1 KPI in common with “Realization of a sustainable and environmentally friendly society”*2 Incidents and accidents that may incur serious damage to the management of the Company and the Group companies among those that occur in the business activities of the Company.
*3 Architecture: BCS Award, Annual Architectural Design Commendation of Architectural Institute of Japan, Selected Works of the Architectural Institute of Japan, BELCA Award, JSCA Award, The Institute of Electrical Installation Engineers Award, technical Category, Japan Illumination Award,
Civil Engineering: JSCE Awards (Outstanding Civil Engineering Achievement Award, Innovative Technique Award, Tanaka Award); Japan Federation of Construction Contractors, Doboku Prize*4 Cumulative number of site offices with T-BasisX and T-iDigital Field installations*5 Figures are for FY2022. *6 Including investment already determined

Carbon Neutral Award34

Ⅳ- 4. Main Implementation Measures
Main implementation measures during the period of the Medium-Term Business Plan (2024-2026)
Among [TAISEI VISION 2030] Achievement Plan, those to achieve results within the period of the M edium-Term Business Plan (2024-2026)

Group Domestic Building
Construction Business
To restructure the profit structure
through appropriate receiving anorder and performance of theworksGroup Overseas
Business

 To expand the system for the performance of the works by grasping appropriate
production capacity and improve productivity by reviewing the training system for theemployees
 To invest management resources in the advantageous fields
 To pass the price of construction materials on to the contract prices based on theoutline of the revision of the Construction Business Act

 To implement thorough localization for future business expansion

To establish integrated
construction anddevelopment businessstructure To utilize development know-how and expand construction business through

Human Capital To conduct recruitment based on image of the human capital required in eachorganizational restructuring
 To invest management resources in fields other than construction business (PPP,
concessions, etc.)

department, considering DE&I, and human capital development plan

Expansion of Human Capital
To implement humanresources system reform To swiftly implement human resources system reform To comply with restrictions on maximum overtime hours under the Labor Standards
Act starting in FY 2024
35

＜Glossary＞
BIM/CIM｜Building/ Construction Information Modeling, Management・・・To introduce a

CCS｜ the abbreviation for Carbon dioxide Capture and Storage. A comprehensive

database of buildings in which attribute data such as cost, finish, and management

technology to separate and capture carbon dioxide emitted from power plants, steel mills,

information are added to a digital model of a three-dimensional building created on aand cement plants, transport it to storage sites by pipelines or ships, and store it in thecomputer from the investigation, planning, and design stage, and to utilize the database

underground.

while enriching the information in each stage of construction and maintenance. At thesame time, to improve the operational efficiency and sophistication of both the owners andcontractors in a series of construction production and management systems by sharing

Algae SAF｜“Sustainable Aviation Fuel” made from algae. The first microalgae producedin the world to produce oil as a fuel substance outside of cells without introducing foreign

information among related parties throughout the businessgenes.

PPP｜Public Private Partnership・・・Public and private sector collaboration to provide

Green Chemistry｜A general term referring to the concept of reducing the environmental

public services

impact on the human body and the environment during the entire life cycle (Process fromTAISEI Green Target 2050（TGT2050）｜The Company's 2050 Environmental Targets

the technologies used to make it possible.

established in 2013, revised in 2021 (declaration of carbon neutral)
ZEB｜the abbreviation for Net Zero Energy Building, called " ZEB." A building that aims to

selection of raw materials to production, use and disposal) of a chemical substance, and

BCP｜the abbreviation for Business Continuity Plan

balance energy generation and consumption

Digital Twin｜A system to link the real and digital world in real time by recreating a

ZCB｜the abbreviation for Zero Carbon Building. A building that aims to achievesystem, we can implement experiments, completion predictions, future predictions, etc.

substantially net-zero CO2 emissions during the life cycle of a buildingthat are difficult to implement in the real world through simulation.

T-eConcrete®/Carbon-Recycle（Carbon Recycled Concrete）｜Concrete manufactured

Ethical consumption｜Consumer activities that aim to resolve social and environmental

using carbon recycled materials such as calcium carbonate, which is produced byissues by actively selecting products and services that are friendly to people, society,absorbing CO2 recovered from exhaust gas, etc. into calcium, and blast furnace slag, an

the earth, and the environment.

industrial by-product of steelmaking.
AEMS ｜the abbreviation for Area Energy Management System. A system that aims toachieve optimal consumption by monitoring and controlling energy consumption not inunits of building but throughout an area (a group of buildings).
T-iDigital® Field｜A system to efficiently carry out the site management by visualizing thecurrent work status of the construction site using video and IoT data, and sharing real-time
information even from remote areas.
T-BasisX ® ｜A standard platform for DX at a building site that integrates mesh Wi-Fi tocomprehensively cover the internet environment at the site and an "IoT-enabledvisualization system" to grasp the working conditions of employees.

physical space in a virtual space utilizing digital technologies such as BIM and IoT. By this

TAISEI VISION 2030

Action to Implement Management that is
Conscious of Cost of Capital and Stock PriceAction to Implement Management that is Conscious of Cost of Capital and Stock Price
1. Recognition of Cost of Equity and PBRWe recognize that the cost of shareholders’ equity of the Group is* Rough Estimation of the cost of equity using the CAPM

approx. 7.0%*.


Risk-free rate

β value

Market risk
premium

Cost of shareholders’equity (for reference)

Approx. 0–0.3％

0.8-1.1

6.8–7.0%

Approx. 7.0％

PBRs for the last four fiscal years were only approx. 1.0 time mainly
due to sluggish ROE.

Diagram of PBR

PBR

PBR: Price Book-value Ratio

Stock price

Net income
per share

Stock priceNet assets
per share

Net assets
per share

Net income
per share

ROE

PER

PER: Price Earnings Ratio
ROE: Return On Equity

Changes in related indicators■ Transition of ROE/Cost of Shareholders’ Equity■ Transition of PBR
2

20.0
1.6

1.5
1

0.9

0.5
0

1.1

1.0

2018

2019

0.8

2020

2021

PBR（time）

5.0
2023

0.0

30

16.6

15.0

8.4
6.79
6.76
2018

2019

26.2

25
20

11.6

10.0

0.9

2022

16.2

■ Transition of PER

6.99

7.01

2020

2021

Cost of Shareholders’ Equity (%)

6.96

5.6
2022

7.11

4.6
2023

ROE（％）

19.7

15

13.9 13.3

10

10.0

5
0

26.0

9.6

10.1

17.0

20.2

15.0

5.8
2018

2019

2020

2021

TSE Average PER (Weighted Average)

2022

2023

PER (time)39

Action to Implement Management that is Conscious of Cost of Capital and Stock Price
2. Measures to enhance PBR

We will Implement measures that contribute to the enhancement of ROE and PER to enhance PBR.

Measure(1)

Enhancementof ROETo secure stable profits in the group domestic building construction business.

In the previous Medium-Term Management Plan, the main factor for sluggish ROE (4.6%) was a decline in profitability in the domestic building
construction business, which is one of our main businesses, due to the negative impact of delays in establishing a production structure aimed atbusiness expansion, an inability to pass the soaring prices of construction materials on to our contract prices with the clients, and the strategic
acceptance of several large-scale construction projects in a fiercely competitive environment, etc.
Giving top priority to restructuring the profitability of the Group domestic building construction business, we will continuously implement theinitiatives that began in the final year of the previous medium-term business plan as priority measures in the medium-term business plan (20242026).
<Priority Measures>
To restructure the profit structure throughappropriate receiving an order and performanceof the works

 To expand the system for the performance the works by grasping appropriate production capacity and enhancing the
productivity by reviewing the human resources training system
 To invest management resources in the advantageous fields
 To pass the price of construction materials on to the contract prices based on the outline of the revision of theConstruction Business Act

From the medium- to long-term perspective, we aim to achieve a gross profit ratio of 10% or more in the Group domestic building construction
business in order to continuously secure ROE of approx. 10% after FY2030.

Measure(2)

Enhancementof ROETo continue to implement a shareholder return policy based on strategic intent

To promote the financial policy (described in “Measure (3)”) based on strategic intent

40Action to Implement Management that is Conscious of Cost of Capital and Stock Price

Measure(3)

Enhancementof PERAs a financial policy, we will disclose our specific policies on financial discipline and growthinvestment.

To pursue the optimal capital structure
The Group gave top priority to "strengthening its financial position" which had been damaged in past financial years, and pursued andachieved "substantive debt-free management".
We will pursue the optimal capital structure based on the premise of maintaining our credit rating, and promote the measures based on thefollowing policies.
.

Outlook for the optimal capital structure

Liabilities

Funding
policy To adhere to a net D/E ratio: 0.4 times
 To maintain an equity ratio of approx. 40% (financial leverageof 2.5 times) Dividend payout ratio: to maintain a ratio of approx. 30%

AssetsTotal asset
turnover: 1.0

Interest-bearing
debt

Shareholder
returns

Net D/E ratio:
0.4 times

EquityRquity ratio: 40％

based on the premise of long-term stable dividends
 If surplus funds are generated after implementing “growthinvestment" and "dividend," we will acquire treasury share up
to a maximum of 100% of the total return ratio.

Assetcompression/
replacement

 Total assets turnover: 1.0 time or more Sale of cross-shareholdings (reduce to less than 20% of ourconsolidated net assets by the end of FY2026)
 Through integrated risk management, to limit the risk asset balance to acertain percentage of consolidated shareholders' equity

41

Action to Implement Management that is Conscious of Cost of Capital and Stock Price

Measure(3)

Enhancementof PERAs a financial policy, we will disclose our specific policies on financial discipline and growthinvestment.

Fund allocation policy
To decide each individual investment based on investment criteria (a hurdle rate is set based on business characteristics)
To finance based on KPIs that pursue the optimal capital structure
To review the priorities and allocation ratios as necessary in response to changing conditions
To treat the excess over the minimum cash and cash equivalents balance during the current FY period among “internal reserve funds“ is treatedas surplus funds, and allocate to “investments” and / or “shareholder returns” as necessary

Conceptual diagram of the fund allocation policy
Source of funds
for allocation

Use of funds(Priority)

External financing

Investments(Priority 1)

Cash flows fromoperatingactivities
Cash flows after recording P/Linvestment treated as a periodic
expenseSurplus funds

 If the source of funds for allocation is less than the required investment
amount, we will allocate from internal reserve funds.
 If funding is still insufficient, we will consider external financing.
Priority 2｜Shareholder returns

Shareholder
returns

Cash flow frominvestingactivities(Sale of assets)

Priority 1｜Investments(Priority 2)

From the perspective of the stable dividends, we will pay dividends even if theyexceed the amount based on the distribution rate.



If the source of dividends is less than the targeted returns, we will allocate frominternal reserve funds.

Internal
reserve funds(Priority 3)
42Action to Implement Management that is Conscious of Cost of Capital and Stock Price

MeasureEnhancement

PERの向
上④
of PER(4)

To disclose the progress of “[TAISEI VISION 2030] Achievement Plan” and have sincere
dialogues

We will disclose the status of achievement of KPI through promoting the medium- to long-term business strategy and business reform
such as DX, and the progress of non-financial measures such as our sustainability strategy.
In addition, through sincere dialogue with stakeholders, we will win their confidence for the feasibility of our growth strategy.
※For the details of each policy, medium- to long-term business strategy, etc., please refer to “[TAISEI VISION 2030] Achievement Plan” and “Medium-TermBusiness Plan (2024-2026)”.

<Reference> Overview of the [TAISEI VISION 2030] Achievement Plan
Fundamental Management Policy
Human capital:

To recognize that human capital is a source of competitiveness and swiftly implement the necessary measures. To expand humancapital investment and enhance employee engagement, and realize well-being and diverse career paths

Technol ogy development:

We will designate the four areas (social and environmental issues, strengthening social infrastructure, regional revitalization, andnew frontier business), and work on technology development and their social implementation, which contribute to problem solution
therein.

Policy on Business Foundation Development
Sustainability
Strategy:(Environment and energy)

We will achieve the Environmental Policy and the TAISEI Green Target 2050 (TGT2050).

Sustainability Strategy:

We respect human rights of each employee involved in the Group’s business.

(Human Rights)

Safety:We strive to maintain zero fatal accident, zero serious accidents, and zero environmental accidents.

Quality:

We uphold proper quality control, aim to eliminate all defects attributable to quality mismanagement and improve customer
satisfaction.

43

Action to Implement Management that is Conscious of Cost of Capital and Stock Price
Medium- to long-term business strategy: What we should aim for in FY2030
Group Domestic Building
Construction Business:

By drawing up a growth strategy that meets changing social needs and providing building construction-related services backed bytechnological advantages, we will contribute to enhance the values of our customers and society.

Group Domestic Building
Construction Business:

We will contribute to resolve environmental and social issues as the leading company in infrastructure development with ouradvanced technological capabilities and the Group’s comprehensive capabilities.

Group’s Domestic Real Estate
Development Business:
Group Overseas Business:
Group’s Engineering Business:

We will contribute to highly value-added urban development by utilizing accumulated “real estate development know-how” and“technological capabilities” as a general contractor.
While growing by utilizing the technical know-how we have cultivated by operating in Japan, we will contribute to the economic andsocial development of the countries in which we operate by developing high-quality social infrastructure.
While incorporating the latest technologies in manufacturing facilities, we will provide customers with a consistent service systemfrom planning, design, and construction to maintenance and management of production facilities by leveraging our advanced
engineering capabilities as well as our Design & Build capabilities in building construction and civil engineering as a generalcontractor.

New business models
Regional Collaboration
Strategy:
O & M:

We will seize the increasing expectations of local governments and local companies toward major general contractors as“problem-solving partners”, enhance our advantage in receiving orders by creating new marketing & sales process derived fromresolving local issues and aim to establish the new business.
We will enhance the O&M business by engaging ourselves not only in the operation area as the existing business but also in the
management area, and undertaking comprehensive facility management operations which fall outside of customers’ corebusinesses.

Methodologies for business transformation
DX:

M & A:New Business Creation
Support Program:

We will enhance corporate value of the Group through swiftly utilizing information (digital technology and data).
We will focus more than ever on the healthy development of construction industry through industry restructuring.
We will build a new growth foundation specifying the following targets: vertical integration targeting to secure appropriate workforce
and labor-saving; integration of value chain aimed at new value creation; and overseas business development aiming at businessexpansion.
We will create new pillars for future new business by developing human capital capable to strengthen the management foundation,
creating new trends for corporate culture reform, and expanding profit opportunities through business diversification.
44

TAISEI VISION 2030

Information Disclosure of Integrated Environmental
Management

Information Disclosure of Integrated Environmental Management
We will disclose information on the Group’s integrated environmental managementwith respect to the four specially designated criteria of “Governance”, “Strategy”,“Risk Management”, and “Indicators and Targets”.
Realization of a sustainable and environmentally friendly society The Group has identified “Realization of a sustainable and environmentally friendly society” as one of the materiality.
 The Group through its business activities will contribute to realization of “Decarbonized Society,” “Recycling-Oriented Society," and "Nature
Co-Existing Society.”
The Group’s long-term environmental target, “TAISEI Green Target 2050”
 Target towards three goals for society and two specific issues
Three goals forsociety
Decarbonizedsociety

FY2030 target
CO2 emissions (compared to FY2022)• Scopes 1+2• Scope 3
Recycling-Oriented
society▲42%▲25%

To achieve and deepen carbon neutrality
 Scopes 1+2• Scope 3

Zero CO2 emissions
Zero CO2 emissions throughout the supply

Two specificissues

Goal

Forest resources &Forest environment• To minimize negative impact on forest resources andforest environment through wood procurement based on
the zero deforestation concept

chain• To maximize positive impact on forest resources andforest environment through conservation and restoration• Promotion of green procurement,• Reduction of final disposal rate of constructionwastes to 3.0% or lessNature Co-ExistingSociety

FY2050 target• Green procurement rate: 100%

• Final disposal rate of construction by-products: 0%

To contribute to nature positive initiatives by the

Achieving and enhancing nature-positive initiatives

following:

Minimize negative impacts of construction business• Implementing over 50 projects per year
• Applying the evaluation methods to 30% of
Design & Build projects• Responding to marine issues

efforts

To achieve and deepen a circular economy• To minimize the negative impacts associated with ourconstruction business• To maximize the positive impacts of projects that

Water resources &Water environment• To minimize negative impact on water resources andwater environment by ensuring proper management andreducing usage• To maximize positive impact on water resources andwater environment through conservation and restoration
efforts

ensure coexistence with nature

We refer to: “TCFD Framework,” etc. for Decarbonized Society; “Guidance for disclosure and engagement for promoting sustainable finance toward a circular economy,” etc. for RecyclingOriented Society; and “TNFD Framework,” etc. for Nature Co-existing Society, respectively. For details, please see our website: TAISEI Sustainability > To disclose Information on Integrated
Environmental Management.
46

Information Disclosure of Integrated Environmental Management
Governance
The Board

Related committees and meetings

To deliberate agenda items related to sustainability management,
including environment-related issues

Prior Consultation andReportSustainability Committee



Sustainability Committee (Committee within the Board)• To deliberate important policies and initiatives related to all aspects of theenvironment, society, and governance (ESG)• This committee is chaired by an external member of the Board to incorporate
diverse perspectives, and it consists of six members of the Board, including thePresident & CEO as well as two external members.



Sustainability Promotion Committee (consultation committee of the management
committee)• To deliberate fundamental policies and medium- to long-term targets related tothe sustainability management.

Important matters related to the Group’s response to environmental issues• The Board deliberates and decides the matters thorough the prior consultation
and report among above mentioned committees.
• The Board’s decision will be informed and shared with related business divisions
and group companies, and be reflected in their business plans and business
operations.
• The Board’s decision will accordingly be incorporated into specific items to be
implemented at construction sites, and we will further request subcontractors andsuppliers for their cooperation.

Chairperson: External member of the Board
Prior Consultation andReportManagement Committee
Chairperson: President and Chief Executive
Officer
Report / recommendation
Direction /Supervision

Sustainability Promotion Committee
Chairperson: President and Chief Executive
Officer/Vice Chairperson: CSO
Report / recommendation

Operating divisions / Divisions in charge of sustainability
Support / Guidance /Cooperation
Support / Guidance /Cooperation

Group companies
Support / Guidance /Cooperation

Subcontractors and suppliers

Executive Officer in charge of Sustainability-Related Issues｜CSOThe CSO is in charge of promoting sustainability management in the performanceof business operations, including initiatives to address sustainability-related issues
in accordance with the Board’s decision.

47

Information Disclosure of Integrated Environmental Management
Strategy｜ We identify “risks and opportunities” assuming the year 2030 and evaluate
their impacts on the Group’s business
Risks
To diminish our reputation among our
stakeholders, decline opportunities forsecuring orders, etc., in the event of
the Group’s initiatives to be evaluatedas inadequate

Decarbonizedsociety

RecyclingOriented Society

Nature CoExisting Society

To decline in productivity and decreased
workforce due to a worsened working
environment caused by rising temperaturein summer, rising labor costs, rising pricesof construction materials due todisruptions in the supply chain caused byincreasing severity and frequency ofnatural disasters, etc.

Opportunities
To enhance corporate value andreputation among stakeholders
through various initiatives toward
Decarbonized Society, RecyclingOriented Society, and Nature CoExisting Society

Measures
Measures to address risks
and opportunities

Increased demand for ZEB andrenewable energy-related construction
works, as well as strengthening facilities
and infrastructure in order to adapt toclimate change, etc.

To develop and promote labor-saving
construction technologies, as well as todevelop and promote realization in oursociety: low-carbon and decarbonizedbuilding materials such as T-eConcrete
and T-Near Zero Steel; ZEBs; and Zero
Carbon Buildings (T-ZCBs); etc.

Rising prices of construction materials
due to resource shortages, increased
construction costs due to increased waste
disposal costs, etc.

Increased use of recycled resources that
contribute to the realization of a circular
economy, and increased opportunities forsecuring orders for environmental
restoration projects, including soil
decontamination

To develop and promote materials andconstruction methods that take into
account of resource-recycling, such as TeConcrete and T-Near Zero Steel,sophistication of low-impact soil andgroundwater decontamination
technologies for substances that are
expected to be regulated in the future,such as PFAS※

Rising prices of construction materials
due to resource shortages, increased
construction costs due to the higher levy
for restoration and conservation of naturalenvironment, etc.

Increased opportunities for securing
orders related to the conservation andcreation of a rich natural environment that
contribute to the realization of a nature
positive society and development ofgreen infrastructure

To develop nature-positive evaluation
methods, as well as to develop andpromote social implementation ofenvironmental forecasting technologies,
biodiversity planning technologies, andgreen space developing technologies
such as T-GI rain garden* Per- and PolyFluoroAlkyl Substances: A general term for perfluoroalkyl compounds and polyfluoroalkyl compounds 48

Information Disclosure of Integrated Environmental Management
Risk Management
Group-wide risk management promotion system

Promotion System
 Under the supervision of the Board, we have set up an appropriate risk
management system to address major ESG-related risks, such as quality,
compliance, information, safety, and the environment.

Audit & Supervisory
Board Members
Audit/ Audit &Supervisory Board

The Board
ReportSupervision

President
Chief Executive Officer of Risk Management

To promote the Group-wide risk management
 We have established our risk management system in which the President is
assigned as the “Chief Executive Officer” and the Chief of the Business
Administration Division is assigned as the “CRO, the Chief Risk Management
Officer.”

Response to major incident /accident

ReportInstructions /OrdersChief Risk Management Officer (CRO): Chief of Business Administration Division
Supervision of risk management Based on the risks to which we are exposed during the fiscal year, we annuallyreview the risk management details for the following year to operate the PDCA
cycle and verify the effectiveness of the risk management system.

Risk Management Committee Business and other risks

Risk Management Council

CRO Secretariat

Risks for our Business, etc.
 Risks that may have a significant impact on corporate management arereported to the Management Committee and the Board, and policies for dealing
with such risks are comprehensively reviewed and decided upon, and reported
in the “Business and Other Risks” section of the Annual Securities Report..

Development of risk
countermeasures andprevention of recurrence<Head Office>Risk Management Promotion Committee
Head
OfficeBranchOfficesGroup
Companies<Branch Office>Risk Management Promotion Committee

Excerpts from the 163rd Business Term Annual Securities Report
Potential risk

Response to risk

Risk of violation ofenvironmental laws
and regulations

Risk of criminal punishment or administrative disposition, or aclaim for damages for violations of environment-related laws
and regulations

 To establish and operate an environmental management system (EMS) To check the compliance status through environmental patrols.

Risk associated withenvironmental issues,
including climatechangeRisk to diminish our competitiveness and reputation among
stakeholders, in the event that our address to resolve
environmental issues through business operations information
disclosure is insufficient To establish the Environmental Policy and the Group’s long-term environmental targets, and aim for the“Realization of a sustainable and environmentally friendly society.”
 To conduct environmental due diligence and promote prevention and mitigation of the negative impacts of ourbusiness activities on the environment, as well as the negative impacts of the environment on our businessactivities, including impacts on the supply chain
 To appropriately disclose information on our efforts to address environmental issues.

We appropriately disclose its initiatives toward these environmental issues in our Annual Report and website..
49

Information Disclosure of Integrated Environmental Management
Indicators and Targets
Decarbonized Society
CO2 emissions reduction
targets (as compared to
FY2022)
Scopes1+2
Scope 3Categories
1+11(Total emissions: 1000 t-CO2 ｜Intensity: t-CO2 /100 million yen)

Results
2022FY

Total emissions
reduction rate291-

intensity
reduction rate

18.4-

Total emissions
reduction rate

6,594
-

Target2023FY

Collecting
data

Nature Co-Existing Society

2026FY
240
▲18％

169
▲42％

13.5
▲26％

8.7
▲53％

－

4,945
▲25％

* Intensity: Emissions per 100 million yen in sales

Results
To promote projects that
contribute to biodiversity
enhancement / nature
positive society
Nature positive evaluation
method2030FY

Target2022FY

2023FY

2026FY

2030FY

50 projects

Collectingdata

50 projects or 50 projects or
more
more

－

To launchdevelopment

To establish
To apply toevaluation
30% of Design
method and& Build
start operation
projects

Taisei Group’s CO2 emissions

More than 90% of Taisei Group CO2 emissions falls under Scope 3.
Within Scope 3, more than 90% of emissions are categorized in Category 1
and Category 11.
 Category 1CO2 emissions during the production of steel materials such as steel
frames and reinforced bars, cement, concrete, etc
 Category 11
CO2 emissions expected to be emitted during use of the building deliveredin that year Target group companies
Taisei Corporation and its main group companies

TNFD core global disclosure metrics

 The TNFD recommendations require us to first identify the priority
areas and then disclose metrics for those specific areas.
 In accordance with the recommendations, we will proceed withidentifying priority areas and consider the disclosure of metrics
required by the TNFD.

* We have disclosed the environmental data including the followings in our website.

Recycling-Oriented Society

Material flow

Results
Final disposal rate ofconstruction waste

Target2022FY

2023FY

2026FY

2030FY

2.8%

Collecting
data

3.0% or less

3.0% or less

Input
OutputEnergy, main construction materials, water
CO2 Scopes 1, 2, and 3, NOx, SOx, CFC, construction byproducts, water

Total construction by-products(waste/valuable resources)

Total construction by-products, emissions by type, quantityof direct final disposal, recycled quantity and recycle rate

Management of hazardous
waste

Hazardous waste, PCB waste, volatile organic compounds

For details, visit our website: TAISEI Sustainability > Environmental Data
50