Value Creation Story

Taisei Group Philosophy

To Create a Vibrant Environment for All Members of Society

Under the Taisei Group Philosophy, “to create a vibrant environment for all members of society,” the TaiseiGroup is dedicated to forging a resilient society where people can live affluent and cultural lives.
By building high-quality social infrastructure through our business endeavors and by addressing the challenges faced by our clients and the broader society, we aspire to foster a cyclical enhancement of both corporate and societal value, aiming for sustainable growth in harmony with society.
Medium- to long-term external environment and structural changes

IX

SX

Taisei Group’s long-term environmental target

TAISEI Green Target 2050
Realization of a sustainable and environmentally friendly societyDXMedium- to long-term vision “TAISEI VISION 2030”

The Ever-Evolving

Construction
Domestic building
construction
Domestic
civil engineering
Overseas
construction

Human Capital
Sensitive human resources that utilize their high level ofexpertise to create more value than clients want

2,557 persons

First-Class Civil Engineering Works Execution
1,921 persons
Managing Engineer (Non-consolidated)

Training hours per person (Non-consolidated) 65 hours
Total amount of training (Non-consolidated) ¥406 million

Financial Capital

D

E

Development

Engineering

Five areas we areparticularly focused on
to realize
TAISEI VISION 2030

Sound financial position and stable funding¥2,016.7 billion

Total assets¥829.1 billion

Equity41.1 %

Equity ratio

E

E

EnergyEnvironmentIntellectual capital

Performance Numerical Outlook¥1,642.7 billion

Group net sales

OutputFirst-class architects (Non-consolidated)

Input

14,466 persons

FY2022 ResultsGroup operating income¥54.7 billion

Group net income¥47.1 billion

ROE

5.6 %

Dividend payout ratio

53.9 %Net interest-bearing debt substantively debt-freeSocial Capital
Client trust and brand power built over 150 years in business
Strong supply chain

Soyukai* 
617 members
Safety,Health and Environment

7,930 members
Cooperation Association* (As of March 1, 2023)

Manufacturing Capital
Global bases and construction sites
Efficient production process using digital technology and data

15 branches

Number of branches
Constant number of overseas offices

9 offices

Number of Group Companies

27 companies

Capital investment

Natural capital
78,300 kL

Electricity usage

167 million kWh

Water (used)

2.39 million m3* For Soyukai and the Safety, Health and Environment Cooperation
Association, see the glossary on page 118.

7 T A I S E I ANNUA L R EPORT 2023

Around 10%

Return to Stakeholders

0.31

Customers, Suppliers and Society:

Number of female managers

314 persons

Shareholders:

Returns through CDE3

Dividend payout ratio: 25–30%

Rate of taking childcare leave by males 100 %Water (discharge)

Employees: To promote further diversity and inclusion,
establishing a comfortable working
environment, personnel systems, andsalary plans that enable employees toleverage their diverse range of skills to the
maximum possible extent.

3,134,000 m3

TAISEI Green Target 2030 Goals

Materiality (Sustainability issues to be dealt with)

Reduction in CO2 emissions per unit of sales (comparedto FY2019): Scope 1 + 2: Decrease by 50%
Scope 3: Decrease by 32%

1. Realization of a sustainable and environmentally friendly society

6. Cultivation of technical staff and securing human resources

DecarbonizedSociety

2. Ensuring quality and improving technology

7. R ealization of an attractive working environmentthat is good to work in

RecyclingOriented Society

Promotion of green procurement
Final disposal rate of construction waste: 3.0% or lower

Nature CoExisting Society

to Nature Positive

3. Technical development for realizing a sustainable society
4. Promotion of supply chain management
5. Thorough management of occupational health and safety

8. T
 horough compliance and restructuring of the Group
governance system

Implementing proposals and projects that contribute¥18.3 billion

Business activities that respect the natural environmentand biodiversity

Major fossil fuel use

ROE

Accident frequency rate

Output as Load

Achieving safety and security
Optimal utilization of “Human Capital,” “Technology”
and “Intelligence.”

About ¥150 billion

283 cases

Construction byproduct emissions 2.42 million t¥9.2 billion

Group net incomeNumber of patent applications filed

Investment in technology and development ¥25.6 billion
DX-related investment

About ¥2.5 trillion

10 cases

Scope 1 + 2 Total CO2 emissions 291,000 t-CO2¥22.3 billion

Group net sales

Number of ZEB building orders

Technological development contributing to expected growth inindustrial areas / Technological, field and proposal capabilities
that support competitiveness

Including investment in environment-related technology

Outcome(Figures for FY2022)

Number of consolidated employees

The CDE3 (cubed) COMPANYCManagement Capital

A pioneering corporate groupcontributing to the developmentof a resilient society where
people can live affluent andcultural lives

Taisei Spirit

To Pursue the Taisei Group Philosophy

Active and Transparent Culture

Value Creation

Mission To contribute to the development of a resilient society

Thoughts that all Group executives andemployees value

Contribution to the SDGs

Evolution of Tradition
where people can live affluent and cultural lives

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About the Taisei Group

About the Taisei Group

Sustainability Section

Governance Section

Data Section

M e s s a g e from t h e Pres iden t

We Will Fulfill Our Mission of “Contributing to theDevelopment of a Resilient Society Where People
Can Live Affluent and Cultural Lives,” in Order toEnhance Corporate Value and Achieve
Sustainable Growth.

Yoshiro AIKAWA
President and Chief Executive Officer,
Representative Director

Introduction
As mentioned at the outset of this report, I wish to reiterate our apologies for the recent incidents
related to the failure to satisfy steel erection accuracy requirements and the delay of construction
schedule in the ongoing construction projects. Restoring the trust we have lost due to each incident
will require an exceptional effort, and we anticipate a challenging journey ahead.
In order to overcome this difficult situation and lead to new growth, all of the Group’s executives
and employees must align their minds under the mission of “contributing to the development of a
resilient society where people can live affluent and cultural lives,” and approach their daily work withintegrity, valuing the basics of quality, process, and safety. It is important that we continue toprovide our clients with value, satisfaction, and excitement that exceed their expectations andimaginations, and solve social issues through our corporate endeavors.
As President and Chief Executive Officer, I will take the lead and do my best to restore the trust.

9 T A I S E I ANNUA L R EPORT 2023

Taisei Group’s Growth Strategy

Progress of the Medium-Term Business Plan
(2021–2023)
Construction investments, driven by steady public investment and brisk private capital investment
mainly in the manufacturing industry, in anticipation of a post-COVID surge of business in mind, are now
recovering to the levels exceeding pre-COVID ones. However, as sharp rises in the prices of a wide
range of construction materials tremendously affected the profit/loss of construction projects, the management environment surrounding the Taisei Group was extremely harsh.
Under these circumstances, FY2022, the second year of the Medium-Term Business Plan (2021–2023),
saw the Group’s net sales increase, owing to a steady progress in the initial backlog of projects for the
fiscal year. However, concerning the profit/loss, operating profit and other figures were lower than theprevious fiscal year’s results, due to the recording of costs related to the corrective work for the aforementioned failure to satisfy steel erection accuracy requirements, etc., and the decline in profit margins
in the construction business, affected by the higher prices of construction materials.
The forecast for FY2023, the concluding year of the Medium-Term Business Plan, appears to be lesspromising with the Group’s net sales, operating income, and net income expected to fall short of thenumerical target of the Medium-Term Business Plan.
The shortfall in operating income can be attributed to three primary reasons. The first is “the delay inestablishing production systems.” The current Medium-Term Business Plan aimed to increase profits by
expanding business volume on the assumption that certain profits could be secured, but the expected
improvement in productivity and the securement of sufficient personnel were not achieved. The second
is “the impact of several large low-profit construction projects.” As competition intensified due to the
expansion of the size of projects, profits were depressed by several projects that were awarded at low
profitability. The third is a “delay in passing the soaring prices of construction materials on to our contract prices with clients.” Profit margins declined, due to a failure to pass the soaring prices of construction materials and higher oil costs at some group companies on to the contract prices, in design andconstruction projects that required time between the selection of a contractor and the commencementof the works.
Based on these unachieved factors, we have been working on the following measures since this fiscal
year, ahead of the next Medium-Term Business Plan. The first step is “to secure an appropriate businessvolume and to rebuild the production systems.” Based on the working environment of our employees,
we will operate, balancing between the volume of construction projects and profitability. In addition,
considering the profit decline due to heightened competition after the Tokyo Olympics, we will re-enforce
our profit-oriented approach, apply strict screenings upon receiving orders, and assign personnel topriority areas. Finally, we will continue persistent negotiations to pass on to prices in response to thesurging costs, and endeavor to restore profits.

Towards Enhancement of Corporate Value andSustainable GrowthOver the years, the Taisei Group has faced numerous challenges. Each time, our executives andemployees have overcome the difficulties together and taken those experiences in further growth. In ourcurrent challenging situation, it is crucial to draw upon the resilience and adaptability—the DNA we haveinherited from our predecessors—and transform these challenges into opportunities, and embracechallenges, using our past failure as stepping stones to future growth. I will lead myself and foster anenvironment where our executives and employees can confidently address new challenges.
For the Taisei Group’s construction business, we firmly believe in the pillars of quality, process, andsafety, and that the key issues are “to build a business foundation for sustainable growth” and “toenhance human capital.” The details are explained as follows.

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About the Taisei Group

About the Taisei Group

Taisei Group’s Growth Strategy

Sustainability Section

Governance Section

Data Section

M e s s a g e from t h e Pres iden t

2. To Build a Business Foundation for Sustainable Growth:
For Exceeding Clients’ Expectations and Imaginations

1. Quality, Process, and Safety: To Work with Integrity and Pride as an Engineer
For the Taisei Group, which plays a pivotal role in constructing social infrastructure through its core
construction business, quality, process, and safety are fundamental themes, and serve as a foundation
for growth.
The Taisei Group’s projects are important social infrastructure that supports peoples’ lives, and ourbusiness can only thrive when it garners the trust of the public. As engineers dedicated to societal contributions, while upholding the legacy of craftsmanship, all executives and employees involved in construction work must reaffirm the importance of the basics and work with pride and integrity. By consistently and diligently making these efforts, we hope to secure the trust among our clients and society,and build a stronger foundation for growth.
As to quality, the entire company is currently working to re-enforce compliance and strengthen thesystem to ensure the quality control process functions. All executives and employees will return to theirroots of TAISEI QUALITY—Quality is our pride—again, and implement appropriate quality control.
As to process, progress and problems of each construction project are to be shared among the head
office, branch offices, and worksites, and we will ensure a robust backup system for worksites to ensure
reliable process management.
As to safety, based on our policy “Safety first,” our Medium-Term Business Plan (2021-2023) emphasizes the objectives of “Zero fatal accidents and zero serious accidents.” We are working to improvesafety and health management, in order to create a working environment where everyone involved in the
Taisei Group’s business can work with peace of mind. In 2022, the accident frequency rate of theCompany alone (a number that indicates the frequency of injuries) was 0.31, representing an improvement of over 50% in the past decade. We will continue to carry out our safety and health managementwith diligence and sincerity, ensuring safety first.

1 To Promote Businesses That Contribute to Building a Resilient Society
The Taisei Group’s path to further growth is to invest resources from a medium- to long-term vision ineach of the CDE3(cubed) (Construction, Development, Engineering, Energy, Environment) areas, to refine
its technologies and businesses, to continue to provide value, satisfaction, and excitement that exceeds
clients’ expectations and imaginations, and to contribute to society by supporting growth of the wellbeing of even more stakeholders. We believe that our continued efforts to pursue these goals will lead toan enhancement of the Group’s corporate value and sustainable growth.
With regard to the building construction business and the civil engineering business that form the coreof CDE3(cubed) in the Taisei Group, it is important to work with a passionate sense of mission to contributeto society as well as to satisfy and impress clients in any construction projects. While observing thebasic principles of quality, process, and safety, we will promote the transformation of our production
system through DX (Digital Transformation), as well as the development of innovative technologies tosolve environmental and social issues, thereby enhancing our competitive advantage. At the same time,
we will work to enhance our capabilities to design and make proposals that exceed our clients’ expectations and imaginations. With regard to the overseas construction business, we are working to establish
a system that ensures profits in priority countries and regions based on local interests.
The development business and the engineering business are positioned as a growth engine for the
Taisei Group. In the development business, we are building a stable profit base by optimizing our realestate portfolio and pursuing investment efficiency. In the engineering business, we are making efforts to
expand our business areas by taking advantage of the strengths we have cultivated in the pharmaceutical and food products sectors. In both fields, we hope to accelerate growth by maximizing the TaiseiGroup’s comprehensive capabilities.
Regarding the area of energy and environment, we aim to be a frontrunner in the environmental field.
We have made organizational change for initiatives such as “Carbon Neutrality,” “Circular Economy,”“Nature Positive” and “Renewable Energy,” and are working on them.
In all fields, the key concept of contributing to the development of a resilient society is to solve social
issues through CSV (Creating Shared Value), namely through corporate activities. In terms of striking abalance between social and corporate values, the Taisei Group can substantially contribute to society
through the construction of social infrastructure. The social infrastructure we provide is designed to last,enduring for decades—50, 100 years or even longer. Looking ahead, we will implement CSV by adding
social value to the structures we create and by commercializing them.
2 To Realize Sustainable and Environmentally Friendly Society and Promote Regional Cooperation
We believe that “To realize a sustainable and environmentally friendly society” and “To Promote ofregional cooperation” are particularly important areas in contributing to the resolution of social issues.
In March of this year, the Taisei Group revised its Environmental Policy and the Group’s long-term
Environmental Targets. Towards the Realization of a Sustainable and Environmentally Friendly Society,
we are deepening our commitment to three key areas: “Carbon Neutrality,” “Circular Economy,” and“Nature Positive.” Through these initiatives, we endeavor to contribute to society by conducting ourbusinesses.
Regarding carbon neutrality, our specific goal is to achieve a 2050 target of “virtually net-zero” CO2emissions from business activities, not only the emissions of Scope 1 and 2, but also those of Scope 3(which includes the supply chain). We will pursue further development and dissemination of a wide rangeof Net Zero Energy Building (ZEB) technologies such as Newly constructed ZEB, Green Renewal ZEB,

P.65 Sustainability Section

Realization of a sustainable and environmentally friendly society

11 T A I S E I ANNUA L R EPORT 2023

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About the Taisei Group

About the Taisei Group

Taisei Group’s Growth Strategy

Sustainability Section

Governance Section

Data Section

M e s s a g e from t h e Pres iden t

Net Zero Energy Factory (ZEF), Net Zero Energy Houses (ZEH), and Net Zero Energy House Apartment
Buildings (ZEH-M), as well as environmentally friendly concrete “T-e Concrete®” and steel materials with
reduced CO2 emissions. We have also begun to verify the results of the “T-ZCB (Zero Carbon Building)”,
which aims to achieve “virtually net-zero” CO2 emissions in the life cycle of buildings. We will hone ourdecarbonization technologies in each phase: “Zero Carbon Design” in the procurement phase, “ZeroCarbon Construction” in the construction phase, and “Zero Carbon Operation” in the operation phase.
Regarding the regional cooperation, being faced with the challenges of a declining population and theadvent of a super-aging society, the national and local governments are making various efforts to enableeach local community to take advantage of its unique characteristics to create an autonomous andsustainable society. We, as a company, carry an important responsibility to cooperate with local communities to solve problems and contribute to the revitalization of local communities. Taking the construction
business as a foundation, we hope to utilize the Taisei Group’s comprehensive capabilities in engineering
technology and environment-related technologies, and work together to resolve issues from a mediumto long-term perspective.
Achieving profitability while making significant societal contributions is challenging. Yet, overcoming
this challenge provides us with a unique advantage, strengthening the Taisei Group's competitive edge.
However, if it can be realized despite its difficulties, it will be an advantage that cannot be easily copied,thereby leading to a competitive advantage of the Taisei Group. This April, we initiated a new internalframework to bolster regional collaboration, and we are dedicated to building partnerships acrossvarious industries.
3 To Accelerate Open Innovation
The source of the Taisei Group’s competitive advantage is its technological expertise. Technologicalprogress in the world is becoming faster and changing more discontinuously than we imagined. Relying
solely on traditional practices and an in-house mindset would not allow us to keep up with this rapid
pace of change. Innovation arises not just within our industry or adjacent sectors, but also from merging
our expertise with insights from diverse industries.
We constantly brush up the wide range of technologies and know-how related to construction andproduction processes, facility management, and decarbonization. These have been cultivated over theyears in the tradition of manufacturing. We are proud of the mindset of the Taisei Group employees being
the best in the industry, as they never stop aiming for even better results. Equipped with advanced technology and a fervent commitment as two main wheels, we aim to identify latent societal needs that manymight overlook. By collaborating with partners from various industries who share our vision, we seek toaccelerate open innovation, and to create unparalleled value that satisfies and delights our clients.
4 To Take Initiatives across the Supply Chain
For the Taisei Group, our subcontractors and suppliers are not just crucial partners in delivering workthat exceeds our clients’ expectations and imaginations; they are allies in our mutual endeavors toaddress societal challenges through business endeavors. We aim to fortify our collaboration with the
Soyukai, a collective of key cooperative companies, and the Taisei Corporation Safety, Health, andEnvironment Cooperation Association, which encompasses all partner firms. This collaborative effort
seeks to enhance a shared commitment to our Group’s mission of “to contribute to the development ofa resilient society where people can live affluent and cultural lives,” and to advance initiatives throughout
the supply chain.
At this moment, the construction industry is grappling with significant hurdles, including “the shortageof construction workers due to the shrinking working population and aging society,” and “the legal upper
limit on overtime working hours from April 2024, with penalties for infringements.” As a member of theJapan Confederation of Construction Industry, we are actively championing measures across theindustry. Collaboratively with Soyukai and the Taisei Corporation Safety, Health, and Environment
Cooperation Association, we will pool our insights to prevent extensive work hours and remain worksites
closed during holidays. Beyond that, our focus extends to enhancing the compensation and working
conditions for skilled construction workers, all in our pursuit of providing an attractive work environment.

3. To Enhance Human Capital: To Invest in the Group’s Future
1 To Improve Employees’ Job Satisfaction and Engagement
To fulfill the Taisei Group’s mission, it is paramount that our employees and their families feel high levelof well-being. For this well-being to be realized, it is vital that the Company understands every individual
employee, offering each of them opportunities to maximize his/her unique strengths and talents. This
ensures that each member of our team places trust in the Company and is motivated to contributeproactively and independently towards our shared goals.
When the Company and its employees are tied each other with the mind of strong engagement, we
can truly harness our collective potential to deliver exceptional value, surpassing our clients’ expectations and imaginations. In this regard, our employees can be rightly termed as our “human capital.” Thedriving force enhancing the Taisei Group’s corporate value resides in each employee’s sense of purpose
and fulfillment in their work. As President, one of my top priorities is to create an attractive working
environment that is good for all our employees to work in.
Last fiscal year, we started engagement survey, administered by an external consultant, which targeted employees across all the companies within the Group. We have taken the results of this survey toheart, pinpointing areas of discrepancy between our current state and our ideal one. From these
insights, we are rolling out initiatives tailored to boost job satisfaction, taking into account factors suchas age, position, and organizational affiliation.
Moving forward, we will periodically evaluate the level of employee engagement, striving relentlessly
for improvement. Our goal is to amplify the psychological safety within our workplaces, fostering anenvironment where every employee can take pride in both the company and their individual roles. In
such an atmosphere, they can, with genuine enthusiasm, make meaningful societal contributions
through their exceptional work.

P.51 Taisei Group’s Growth Strategy

Management of Human Capital

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About the Taisei Group

About the Taisei Group

Sustainability Section

Governance Section

Data Section

M e s s a g e from t h e Pres iden t

2 To Promote Women’s Active Participation and Advancement, and Ensure Diversity in Human Capital
For a long time, the Taisei Group has instituted a specialized section in Human Resources Department
to foster an attractive working environment that is good for a variety of employees to work in, especially
focusing on enhancement of women’s active participation. We have been steadily increasing the numberof female engineers and female employees in managerial positions, yet when compared to other industries, there is still significant potential for improvement. In a society that is rapidly changing, becoming
complicated, and where values are diversifying, maintaining a workforce predominantly of “new graduate Japanese men with no job change experience” can be a latent risk. In order to adapt to thesesocietal shifts, grasp business opportunities, and achieve sustainable development, we are committed
to further bolstering the roles of our female employees, refining our career hiring processes, and actively
recruiting foreign national employees.
Moreover, as part of our strategy to create an environment conducive to women’s active participation,
we have placed great emphasis on encouraging male employees to take childcare leave. Due to ourconcerted efforts, the percentage of male employees taking childcare leave has consistently reached100% since the fiscal year of 2017, with the average number of days for childcare leave reaching 11.6
days (as of the end of March 2023). Moving forward, we aim to maintain this 100% uptake and increase
the average number of days for childcare leave taken.
My vision is to establish a “company where employees can confidently choose to marry, have children, and raise their families without any hesitation.” Towards this end, we are dedicated to creating an
attractive workplace where a variety of employees actively work in, comprehending the evolving needsof society and our clients through varied lenses, and consistently delivering superior quality work.
3 To Enhance Human Capital Development
We regard human capital development as a crucial investment in the future of the Taisei Group. In nurturing our employees, our approach transcends mere technical proficiency; we are committed to personal development considering the whole personality of each employee. In this era of rapid change,
increasing uncertainties, and compounded complexities where predicting the future is challenging,succeeding in business requires not just logic but also a rich sensibility, visionary thinking, and creativity.
Improving these qualities is contingent upon mastering the liberal arts.
Moreover, in a world where there are no right answers, the essence of “Fair Play,” which underpins thevery foundation of business, assumes even greater significance. We aim to support our employees notjust in their immediate roles but also in personal growth by broadening their knowledge base and familiarizing themselves with liberal arts. This approach ensures they can deliver work of superior quality withutmost integrity and, concurrently, lead a fulfilling life.
We have an enduring tradition of recognizing and rewarding exceptional business achievements
through our internal award system. In addition, we founded the “TAISEI VISION 2030 Award” two years
ago to provide timely accolades for remarkable endeavors that resonate with our corporate aspirations.
This includes businesses that make substantial contributions, even if they don’t always receive thespotlight; proactive risk-taking and innovative efforts; and societal contributions that enhance the Company’s credibility. We anticipate that this recognition system will spur heightened engagement and motivation among our employees, leading to a constructive cycle where they consistently challenge themselves to produce better results while also striving for personal growth.
Last year, we introduced the “TAISEI Next-Generation VISION Proposal Working Group,” primarily led
by our younger and mid-tier employees. This group was entrusted with offering recommendations on
initiatives imperative for the realization of the “TAISEI VISION 2030.” Besides leveraging the fresh perspectives and candid feedback of the younger generation in management strategies, we aspire to consistently channel our efforts towards the professional development and enhancement of awarenessamong our upcoming talent. This includes involving them in activities like revising our Materiality anddrafting our forthcoming Medium-Term Business Plan.
Regarding the training of our future managerial candidates, some potential employees were chosen toparticipate in the Management Committee as observers. This enabled them to gain firsthand insights
into intricate managerial decision-making processes and partake in the meeting to exchange opinionswith External Members of the Board, enriching their understanding of our business operations, strategic
direction, and overarching corporate governance. Furthermore, we expect these chosen individuals toardently pursue liberal arts education and cultivate a deep-seated appreciation for the principles of truth,
virtue, and aesthetics. Our unwavering commitment is to systematically develop the managerial leadersof tomorrow, ensuring the Taisei Group’s enduring prosperity.
15 T A I S E I ANNUA L R EPORT 2023

Taisei Group’s Growth Strategy.
Closing
Remarks－Marking Our 150th Anniversary as a
Launchpad for Future Leaps
The Taisei Group celebrates 150th anniversary of its foundation this year. This momentous occasion has
been made possible due to the tireless efforts of our predecessors and the trust and recognition from ourclients and stakeholders. We owe them our deepest gratitude. As we move forward, our commitment tosustainable development remains unwavering, emphasizing open dialogue with all our stakeholders.
Our founder, Kihachiro OKURA, was characterized by his “insight to read the changing times,” “courageous spirit of adventure underpinned by thoughtful consideration,” and “innate pioneering spirit toembrace unprecedented challenges.” Navigating through the turbulent transitions from the Meiji to theShowa era, he ventured boldly into uncharted business territories. He played instrumental roles in establishing and managing a variety of companies including the Taisei Group, leaving an indelible mark on themodernization and growth of Japan. Today, we inherit and honor his legacy, cherishing the Taisei Spiritof “Active and Transparent Culture,” “Value Creation,” and “Evolution of Tradition.”
At a time when the Taisei Group faces a variety of challenges, it is imperative for us to reinforce theTaisei Spirit. We are poised to seize this milestone year, our 150th anniversary, as a springboard towards
a prosperous future that spans another 50 or even 100 years. Recognizing the inherent risks and challenges of our current situation, all our executives and employees work together to actualize the TaiseiGroup Philosophy: “To create a vibrant environment for all members of society,” while upholding our
mission to “contributing to the development of a resilient society where people can live affluent andcultural lives.”
We are grateful to all our stakeholders for the continued and invaluable cooperation and support.

T A I S EI A N N UA L R EPO R T 2023 16

About the Taisei Group

About the Taisei Group

Taisei Group’s Growth Strategy

Sustainability Section

Governance Section

Data Section

Tales of Past and Present of the Taisei GroupThe history of the Company began in 1873, when our founder, Kihachiro
OKURA, established Okura Gumi Shokai. Ever since, we have earnestly
embraced the mission of the construction industry and have contributed tosocietal advancement through our operations. We reflect on the Group’s
150-year journey, dedicated to building a society where people can live
affluent and cultural lives.

1946
C h a~
llengeEvolution of Management

The Taisei Groupcelebrates the 150th
anniversary of its
foundation in 2023

1956

From Postwar Reconstruction to
Rapid Economic Growth
1946
1947
1949

Renamed as Taisei Corporation.
President Takeo FUJITA and directors elected by employee vote.
Implemented the employee shareholder system, becoming a non-familyowned company.
Restoration of the Attorney General’s Office (Homu-cho) Building.
Shares listed on the Tokyo over-the-counter market(a first in the construction industry).
Completion of the Ginza Taisei Building; head office relocated.
National Stadium.
Opened the Technology ResearchInstitute in Toyosu, Koto-ku.
Kansai Electric Power Co., Inc.,
Kurobegawa No.4
Hydropower Plant [5th segment].
Hotel Indonesia Kempinski.
Hotel New Otani Tokyo The Main.
Mt. Fuji Summit Radar Site.
Mt. Fuji Summit Radar Site

First Construction Company to List on
the Tokyo Over-the-Counter Market
Driven by the necessity to secure
funding for large-scale projects andincreased mechanization amidst the
postwar economic boom, we
pioneered the constructionindustry’s debut in public offerings.

1956
1958
1960
1961
1962
1964

Attorney General’s Office (Homu-cho)
Building

Pioneer Spirit Handed Down through Generations
Founder Kihachiro OKURA
In 1873, Kihachiro OKURA established the “Okura Gumi Shokai,” laying the foundation of theCompany. He led the construction of projects like the Rokumeikan. Then, in 1887, he went on
to establish the Nippon Doboku Co., Ltd., marking it as the first incorporated construction
company in Japan. With a focus on rational management, this company attracted the era’s
brightest engineers. Over the years, they achieved significant successes with projects such as
the Tokaido Line and the Lake Biwa Canal, playing a pivotal role in the modernization efforts
during the Meiji period Japan.

Hotel Indonesia Kempinski
National Stadium

Hotel New Otani Tokyo The Main

Kansai Electric Power
Co., Inc., Kurobegawa
No.4 Hydropower Plant[5th segment]

1873~
F ou nd ation

Construction Projects That Paved
the Way for Japan’s Modernization
Kihachiro OKURA Established Okura Gumi Shokai.

1873

1883

Rokumeikan.

Our founder, Kihachiro OKURA
established the “Okura Gumi
Shokai” in Ginza. He led a broad
spectrum of endeavors
encompassing trade, commerce,building construction, and civilengineering, successfully executing
one groundbreaking project after
another.

1887

Established the Nippon Doboku Co., Ltd. (a first in the construction industry)

1890

Lake Biwa Canal Sluice Gate (Lock Gate).

1917

Established Okura Civil Engineering Co., Ltd. (a first in the construction industry)

1927

Underground Railway Tokyo (Ginza line’s original enterprise)[Ueno - Asakusa segment].

1933

Nagoya City Hall.

Lake Biwa Canal Sluice Gate

Rokumeikan

Evolution of Management

Evolution of Management

1873

1973G~
rowing1990
Establishment of Management
Philosophy, Action Guidelines,
and Symbol Marks
Introduced the group’s management
philosophy “To create a vibrantenvironment for all members ofsociety.” We were committed tobuilding a global society filled withdreams and hopes by creating value
through our business endeavors.

Technological Innovation andExecution of National Projects
1978
1979

1985
1987
1988

Joetsu Sinkansen Line Daishimizu Tunnel.
Completion of the Shinjuku Center Building.
Relocated the Head Office.
Moved the Technology Research Instituteto Totsuka-ku, Yokohama.
Minami & Kita Bisan-Seto Bridges[substructure, North segment].
Seikan Tunnel [Yoshioka section].
Cirata Hydroelectric Power Plant,
Indonesia.

Cirata Hydroelectric Power Plant,
Indonesia

Joetsu Sinkansen Line
Daishimizu Tunnel

Underground Railway Tokyo

Nagoya City Hall

[Ueno - Asakusa segment]

Minami & Kita Bisan-Seto Bridges

Seikan Tunnel[substructure, North segment][Yoshioka section]

Shinjuku Center Building

17 T A I S E I ANNUA L R EPORT 2023

T A I S EI A N N UA L R EPO R T 2023 18

About the Taisei GroupTokyo International Forum Hall Complex

1997

Tokyo Bay Aqua-line [Kaze no Tou]

2000

Saitama Super Arena

2005

CHUBU Centrair International Airport

Net sales composition

60.4%

Sales

¥991.8 billion

Construction of offices,
commercial facilities,
factories, schools, hospitals, etc.

Kobe Awaji Naruto
Expressway Akashi
Kaikyo Bridge 3P[substructure part 2]

Tokyo Bay Aqua-line[Kaze no Tou]

Saitama Super Arena

24.9%

2012

JP Tower

Establishment of a Corporate
Governance System

2013

Bosphorus Tube Crossing Railway Tunnels and Station, Istanbul, Turkey

2014

Noibai International Airport 2nd Passenger Terminal, Hanoi, S.R. Vietnam

2019

The Okura Tokyo

Net sales composition

Japan National Stadium
2021

JP Tower

Civil engineering andconstruction work in
Taiwan, Vietnam,
Singapore, thePhilippines and otheroverseas countries

Yokohama
City

Hoshikawa IC
Shinhodogaya IC¥115.3 billion

Redevelopment, publicprivate partnership/
private finance initiative(PPP/PFI), property
management, andin-house development,
condominium sales
projects

Sales¥39.4 billion

Development facilities in
the pharmaceutical andlogistics fields andEngineering of production facilities

Taketoyo Thermal Power Station Unit 5, Civil
Engineering & Building Construction Work
(Chita-gun, Aichi)
Owner: JERA Power TAKETOYO LLC.

CONTRACT P103 DESIGN AND CONSTRUCTION
OF RIVIERA INTERCHANGE STATION AND
TUNNELS FOR CAR-PUNGGOL EXTENSION(Republic of Singapore)
Owner: Land Transport Authority (LTA)

Hamad International Airport Expansion Project:
Passenger Terminal Expansion Works—Central
Concourse Building and Early Works (State of Qatar)
Owner: Qatar Company for Airports Operation andManagement (MATAR)

Construction for Todoroki Green Space
Redevelopment, Operation, Etc. Project(Kawasaki-shi, Kanagawa)
Owner: Kawasaki Todoroki Park Co., Ltd.

(Tentative name) Honmachi 4-Chome Project(Osaka-shi, Osaka)
Owner: Taisei Corporation and Soai Gakuen＊Joint development project

Major projects completed

2.4%
National Highway 325,
Shin-Aso Ohashi Bridge

Sales

Group Engineering BusinessNet sales composition

Japan National Stadium

Kamihoshikawa Station

Major new orders received

Noibai International Airport 2nd
Passenger Terminal, Hanoi, S.R. Vietnam

neLi

Major projects under construction

7.0%
Bosphorus Tube Crossing Railway
Tunnels and Station, Istanbul.2
No

Major new orders received

Net sales composition

Establishment of the Sustainability
Division (Integrated)

19 T A I S E I ANNUA L R EPORT 2023

¥82 billion

Group Real Estate Development BusinessTokyo International Airport
Runway D

2022

The Okura Tokyo

Sales

Ohashi Bridge

As the Ever-Evolving CDE3 (cubed)
Company, we are striving to be “apioneering corporate groupcontributing to the development of a
resilient society where people can live
affluent and cultural lives.”

By unifying the organizational structure
and clarifying the strategic andbusiness advancement functions, weare accelerating the Group’s efforts insustainability management.

5.0%

National Highway 325, Shin-Aso

Formulation of TAISEI VISION 2030

u

s
et

ad

Major projects completed

Evolution of Management

2015

t
So

Ro

Construction for Nishiya Water Puriﬁcation Plant
Redevelopment Project(Sludge Treatment Facilities in Puriﬁcation Plant)(Yokohama-shi, Kanagawa)
Owner: Yokohama Waterworks Bureau

Group Overseas Construction BusinessTokyo International Airport Runway D

2021

Construction of tunnels,
bridges, dams, railways,
expressways, etc.

Towards Realizing a Sustainable Society
2010

We have put in place a system thataims for sustainable growth andenhancement of corporate value,achieved through the formulation of theFundamental Corporate Governance
Policy, among other initiatives.

¥408.5 billion

op

Major new orders received

2010Evolving~

Tokyo International Forum Hall
Complex

Sales

Nishiya Station

New Building Construction Work for Nishi-Shinjuku
5-chome Kita Project (Shinjuku-ku, Tokyo)
Owner: Business Association of Nishi-Shinjuku
5-chome North Block Disaster Prevention
Improvement Project

Major projects completed

Net sales composition

Major new orders received

Group Domestic Civil Engineering BusinessFukuoka Airport International Terminal Buildings,
Extension and Renovation Work (Fukuoka-shi,
Fukuoka)
Owner: Fukuoka International Airport Co., Ltd.

ad

1996

Group Domestic Building Construction BusinessRo

Kobe Awaji Naruto Expressway Akashi Kaikyo Bridge 3P [substructure part 2]

hin

1992

Kei

Tokyo Metropolitan Government No.1 Bldg.

isa
n

1991

The Taisei Group’s Now / Present

CHUBU Centrair International Airport© Courtesy of Central Japan International Airport Co., Ltd.

Tokyo Metropolitan
Government No.1
Bldg.

Data Section

Major projects completed

Established a dedicatedenvironmental department, a firstin Japan’s construction industry,enhancing the structure toaddress environmental
challenges.

Challenging Construction Spaces toCreate New Value

Major new orders received

Evolution of Management

1997

Governance Section

Tales of Past and Present of the Taisei Group

Da

1991~
Fly i ng

Sustainability Section

Lo

About the Taisei Group

Taisei Group’s Growth Strategy

Tokyo Electron Miyagi Ltd. 3rd Development Building(Taiwa-Town, Kurokawa-gun, Miyagi Prefecture)
Owner: Tokyo Electron Miyagi Ltd.

Construction of Takasago Chemical iFactory(Kakegawa-shi, Shizuoka)
Owner: Takasago Chemical Corporation

Note: Net sales from other businesses (incidental businesses, etc.) other than the above were ¥5.7 billion(0.3% of total net sales)

T A I S EI A N N UA L R EPO R T 2023 20

About the Taisei Group

About the Taisei Group

Taisei Group’s Growth Strategy

Sustainability Section

Governance Section

Financial and Non-Financial Highlights

Financial Highlights

Non-Financial Highlights

Net Sales

Operating Income

Number of Orders Received for Net Zero
Energy Buildings (ZEBs)

Number of Patent Applications Filed(Cases)(Cases)12

300(Billions of Yen)

(Billions of Yen)

2,000

200

1,500

150

1,000

9

100

1,751.3

1,480.1

1,543.2

1,642.7

153.3

500

200

130.5

0

2020

2021

2022

2018

(FY)

2019

2020

2021

2022

(FY)

KPI

(FY)

400

9.9

(Billions of Yen)(%)

Female engineers ratio

10.2

(%)
12

10.6

9

16.6

10

112.5

92.5

5

71.4

(%)
2.00

47.1

1.50

0

0

2018

2019

2020

2021

2022

2018

(FY)

2019

2020

2021

2021

2022

2022

(FY)

0.50

■ Dividend per share■ Interest-bearing debt

Dividend payout ratio

Debt-to-equity ratio

(Yen)

(%)

(Billions of Yen)

(%)

200

60

250

0.5

200

0.4

53.9

150

45

1.95
1.30

2.09

150
100

50

25.4
130

29.4

100

130

0.3

0.3

0.3

1.47

130

130

217.4

15

208.1

219.0

224.3

0.2

0

0

2018

2019

21 T A I S E I ANNUA L R EPORT 2023

2020

2021

2022

(FY)

2019

2020

2021

2022

9.7

25

0

0

2020

2022

2021

(FY)

Training hours per person(Hours)
80
60

0.35

0.44

2020

2021

■ Scope 1+2 total CO2 emissions

0.31
2022

233,143

231,706

2020

2021

20
0

2022

(FY)

*Through FY2020, data from training programs hosted by the head office were collected.
* From FY2021 onwards, data also includes results from branch-hosted training and company-wide e-learning.

Scope 3 Total CO2 Emissions(Taisei Group)(103t-CO₂)

2.4

6,000

1.8

4,500

1.2

3,000

291

0.6

1,500

0

0

2022

(FY)

1.84

566,4240(FY)

Scope 1+2 CO2 emissions per sales(Taisei Group)

2.20

26.7

200,000(t-CO₂/¥ Billion)

2.21

40

27.0

200

0

2018

7.1

0.2

0.1

0

50

11.6

400,000

300

201.7

50

75

10

600,000

Scope 1+2 Total CO2 Emissions /Scope 1+2 CO2 Emissions per Sales (Taisei Group)

0.3

30

22.7
130

0.3

100

65.0

Accident frequency rate: The number of deaths and injuries due to industrial accidents per 1 million man-hours
of work represents the frequency of accidents.
*Figures for all industries and construction industory are based on one or more days off (calendar year),while those for the Company are based on four or more days off (fiscal year).

400

(%)

100

800,000

1.39

(FY)

Rate of taking childcare leave by males

100■ Total training hours for capacity development

2.06(103t-CO2)

37.0

15

100

(Hours)0

Interest-Bearing Debt / Debt-to-Equity Ratio

2022

Total Training Hours for Capacity Development /Training Hours per Person

1.00

Dividend per Share / Dividend Payout Ratio(Days)(FY)

Accident frequency rate
Accident frequency rate for all industries
Accident frequency rate for construction industory

5.6

122.0

2021

■ Average number of days of childcare leave taken by males

3

Accident Frequency Rate /Accident Frequency Rate for All Industries /Accident Frequency Rate for Construction Industory

8.4

2020

5

0

2020

11.6
100

277

314

0

15

150

50

236

100

16.2

KPI

6

200

20

200

283

Average Number of Days of Childcare Leave Taken by Males /Rate of Taking Childcare Leave by Males

300

Return on Equity (ROE)

272

KPI

Number of Female Managers /Female Engineers Ratio■ Number of female managers

Net Income Attributable to Owners of Parent

266

0

2022

2021

2020

0

2019

100

6

5

96.0

54.7
2018

10

3

167.7

50

0

KPI

KPI

6

1,650.8

Data Section

(FY)

100

318

325

2020

2021

0

5,625

2020

4,632

5,284

2021

2022

(FY)

T A I S EI A N N UA L R EPO R T 2023 22