Contents

Report on the Incident Regarding Our Failure to Satisfy
Steel Erection Accuracy Requirements and the Incident
Regarding Our Delay of Construction Schedule
We hereby report on the incidents above that occurred recently in the publication of the Annual Report 2023.
First of all, as timely disclosed in March 2023, the failure to satisfy steel erection accuracy requirements
was found in the last fiscal year, in the ongoing construction work for the (Tentative Name) Sapporo Kita
1 Nishi 5 Project undertaken by our Sapporo Branch. We have decided to remove and reconstruct allaboveground portions and the non-conforming portion of the underground structure. Please accept our sin-

About the Taisei Group
05 About This Report
07 Value Creation Storyties on construction business. In response to the incident, the Compliance Committee as a Special Committee, with the participation of outside experts, investigated the cause and developed measures to preventthe recurrence of a similar issue. In addition, we have established a Technical Verification Committee whosemembers are third parties with technical knowledge. The Committee has implemented assessment of thequality control process. At present, the entire company is working on measures to prevent recurrence of asimilar incident, such as re-enforcing compliance and strengthening the system to ensure the function of
the quality control process, thereby striving to ensure proper quality control.
Furthermore, in May this year, our Tokyo Branch faced delay in the construction work for the Setagaya
City Government’s main office building, primarily due to insufficient verification of detailed construction

17 Tales of Past and Present of the Taisei Group63 Sustainability Management

20 The Taisei Group’s Now / Present

65 Materiality

21 Financial and Non-Financial Highlights

Taisei Group’s Growth Strategy

27 M
 edium- to Long-Term Recognition of External

29 Medium-Term Business Plan (2021–2023)
・Key Issues
・Numerical Targets and Progress

31 Materiality (Issues to Be Dealt with)
35 Business-Related

cerned parties.

・Group Overseas Construction Business
・Group Real Estate Development Business
・Group Engineering Business

45 Sustainability-Related

lar incidents from occurring again, all executives and employees are reminded of the Group’s mission of・Technological Development / DX

“contributing to the development of a resilient society where people can live affluent and cultural lives,” and・TOPICS:

take pride in being a member of a company responsible for building social capital, in engaging in work withintegrity. I will lead the way and do my best to restore the trust of our clients and all stakeholders involved.
We are grateful to all of our stakeholders for the continued and invaluable cooperation and support.

TAISEI CORPORATION
Yoshiro AIKAWA
President and Chief Executive Officer,
Representative Director

2. Ensuring Quality and Improving Technology

4. Promotion of Supply Chain Management

・Group Domestic Civil Engineering BusinessWe take both incidents as a serious matter that shakes the Company’s trust. In order to prevent simi-75 •Social

TAISEI VISION 2030

Again, we apologize for the inconvenience and troubles we have caused to the owner and all the con-mentation of the construction work at the project through concerted efforts across the company.

1. Realization of a Sustainable andEnvironmentally Friendly Society

3. Technical Development for Realizing aSustainable Society

・Group Domestic Building Construction
Business

strengthen the backup system at the head office and the branch office, thereby ensuring thorough imple-•Environment

Environment

schedule at the worksite. It resulted in our request to the owner for an extension of time for completion.

With regard to this incident, we will review our organizational structure and staff assignment, and・MURC Fellow Mari YOSHITAKA × CSO Jiro TANIYAMA

61 Message from the External Members of the Board

23 Message from the Chief Financial Officer

We deeply regret the incident since it should never occur in a company like ours, which centers its activi-57 Special Feature: SDGs Dialogue

09 Message from the President

cerest and deepest apologies for the great inconvenience and concerns caused to the owner and all otherconcerned parties.

Sustainability Section

1. Solving Sustainability Issues in Society
2. Management of Human Capital
3. Human Rights Due Diligence Initiatives

5. Thorough Management of Occupational
Health and Safety
6. Cultivation of Technical Staff and Securingof Human Resources
7. Realization of an Attractive Working
Environment That Is Good to Work in

81 •Governance
8. Thorough Compliance /Restructuring of the Group Governance System

Governance Section
82 Message form the Chairman of the Board
83 Message form the External Audit &Supervisory Board Members

85 Corporate Governance
93 Compliance
96 Risk Management99 Management Members

Data Section
103 Key Financial Data and Performance History
105 Consolidated Financial Statements
112 ESG Data
116 Corporate Data / Stock Information
117 Overseas Network118 Glossary

Introduction

Taisei Group Philosophy

To Create a Vibrant Environment for
All Members of Society
The Taisei Group Philosophy of “to create a vibrant environment for all membersof society” represents our objectives (goals) to be pursued by the Taisei Group.
We seek in an environmentally sustainable manner to create safe and attractive
spaces with exceptional value and to create a global community filled with hopes
and dreams for the benefit of future generations.
In response to the rise of environmental problems on a global scale, it clarifies thevalues that we should cherish and the future state that we should achieve as acompany. Based on the Philosophy, the Group is committed to addressingchanging social needs and issues and to contributing to a sustainable society
through the creation of high-quality social capital.

Taisei Spirit

Active and Transparent Culture
We value diversity and, through open and active communication lines and networks bothinternal and external to the Taisei Group, seek to cultivate a transparent and active corporate
culture in which all of our officers and employees are able to reach their full potential.

Value Creation
Not limited to our understanding of society at large, we carefully take into account the needs ofour clients and using all of the technology and know-how at our disposal,
together with our passion for innovation and ingenuity, seek to construct innovative andvaluable engineering projects that inspire and impress our clients.

Evolution of Tradition
We aim to instill within the Taisei Group the Japanese tradition of monozukuri (precise, superbcraftsmanship) and continually challenge ourselves to provide ever more valuable contributions tosociety and ensure our continued development and growth as a respected corporate group.
As a close-knit team made up of dedicated corporate professionals, we engage inour corporate activities with passion, enthusiasm and sincerity.

Medium to Long-Term Vision【TAISEI VISION 2030】

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

The Ever-Evolving CDE3 (cubed)
CompanyC onstruction, D evelopment, E ngineering, E nergy, E nvironment
In 2021, taking into account the medium- to long-term external environment and structuralchanges, we established our vision for the next 10 years, “TAISEI VISION 2030,”
grounded in the Taisei Group Philosophy and Taisei Spirit.
We will proactively respond to these significant shifts in the landscape and arecommitted to fulfilling our mission of “contributing to the development ofa resilient society where people can live affluent and cultural lives.”

Corporate Emblem & Group Slogan Regarding the Symbol Mark & Group Slogan
The symbol mark embodies the Taisei Group’s management philosophy.
It symbolizes the natural environment, such as the invaluable earth, sea,and sun. While maintaining a balance with these elements, the continuous, higher, deeper, and broader activities of both people and the Groupare depicted with vibrant energy and dynamism in three colors: blue,green, and orange. The Group Slogan, “For a Lively World,” serves as asuccinct message that conveys the Group’s philosophy to society. It’s adistilled representation of the Group’s philosophy, crafted to beapproachable and easily remembered.About This Report

Overview of Communication

Major External Evaluation

Information for Shareholders and Investors

Information for ESG and Sustainability

Annual Report

Report・Annual Securities Report
・Business Report
・Taisei Circle (Shareholder Newsletter)
・Corporate Governance Report

Environmental, Social
Governance (ESG) Report

WebShareholder and Investor
Information

https://www.taisei-sx.jp/english/

https://www.taisei.co.jp/english/ir/

Dialogue・Financial results briefing for institutional investors
and analysts
・Individual Meetings・O
 verseas Investor Relations (IR)・Domestic conferences sponsored by securities firms
・General Meeting of Shareholders

2023 Constituent MSCI Japan Empowering
Women Index (WIN)

Sustainability

Note: The inclusion of Taisei Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks, or index names herein, do notconstitute a sponsorship, endorsement, or promotion of Taisei Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive
property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

Stakeholder dialogue

Key Stakeholders
Acknowledging the principles of ESG and SDGs, the Taisei Group deeply understands that we are supported by our shareholders, investors, clients, communities, employees, business partners, and a range of other stakeholders.

Overview
Editorial Policy:

This publication aims to provide shareholders, investors, and other stakeholders with aclear overview of the Taisei Group’s endeavors to enhance sustainable corporate value.
It incorporates management strategies geared towards realizing the Taisei Group’sPhilosophy, and foundational ESG and financial information for growth.

Report Scope:

Covers the Company and its Group entities (consolidated subsidiaries) as of March31, 2023.
(Note: Any deviations from this scope are clearly annotated.)

Reporting Period:

Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023).
(Note: Information from periods slightly before or after this range is also included.)Release Date: September 2023

Third-Party Assurance:

P. 105 – 111: Assurance on Financial Information by KPMG AZSA LLC.
P. 112 (Environmental Data): Assurance on Environmental Information by Ernst & Young
ShinNihon LLC

Stakeholders

Reporting FrameworkShareholders andInvestors

We respect the rights of shareholders, ensure their genuine equality,
and cultivate a conducive environment for the exercise of their rights.
We endeavor to enrich our constructive dialogues and engagementswith shareholders and investors and are committed to providing
accurate and timely information for these interactions.

Clients

Understanding the broader societal landscape, we stand in our clients’shoes. By pooling our technology and know-how, and persistently pursuingfurther technological innovation and creative efforts, we aim to deliver
optimal construction products and services that align with our clients’ needs
and budgets, thereby meeting their expectations and gaining their trust.

Communities, NPOs,and NGOs

We seek to establish robust relationships with local communities. As
responsible corporate citizens, we prioritize dialogue and collaboration with society, aiming to contribute positively to its growth anddevelopment.

Employees

Valuing diversity, we promote active communication and networking
both inside and outside our organization. Our goal is to nurture anopen and vibrant corporate culture where every member can maximize
their potential. Furthermore, we strive to develop and retain our humancapital* for the future, ensuring heightened employee engagement.

Business Partners

We emphasize clarity in our mutual roles and responsibilities, aiming
to foster fair and trustworthy relationships. With our commitment tothe Declaration of Partnership Building, we work diligently to promotemutual growth and added value across our entire supply chain.

The Annual Report and the Sustainability Report (Web Sustainability) are prepared in accordance with the following frameworks.

●●GRI Standards●SASB Standard●

Guidance for Integrated Corporate Disclosure and Company Investor Dialogues for Collaborative Value Creation (by theMinistry of Economy, Trade, and Industry)●●Task Force on Climate-related Financial Disclosures (TCFD)●Environmental Reporting Guidelines (2018 version) (by the Ministry of the Environment)●ISO 26000 (Guidance on Social Responsibility for Organizations)● Annual Report● Sustainability Report (Web Sustainability)

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

Principles of conduct*Note on terminology: We view our human resources as invaluable assets. Thus, in this Annual Report, we refer to “human resources” as		“human capital.”

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

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