Presentation Material
for Financial Results
for the Fiscal Year Ended
March 31, 2024
May 16, 2024
TAIHEI DENGYO KAISHA, LTD.

I. Financial Results for FY2023

II. Dividend Policy and Initiatives to Enhance Corporate Valuein FY2023

III. Status of Initiatives in Mid-Term Business Plan

© taihei-dengyo.co.jp. All Rights Reserved.

2

I. Financial Results for FY2023© taihei-dengyo.co.jp. All Rights Reserved.

3

Consolidated Financial Summary(In millions of yen)

Actual results for
FY2023Full-year forecast
for FY2023

Achievement

FY2022(Reference value)

Change fromFY2022(Reference)

Orders received

Net sales

Operating profit

Ordinary profit

Profit attributable to ownersof parent© taihei-dengyo.co.jp. All Rights Reserved.

4

Consolidated Net Sales and Operating Profit bySegment (Construction and Maintenance)
Net sales

Actual results for
FY2023(In millions of yen)

FY2022(Reference
value)

Operating profit (*)

Change fromFY2022(Reference)

Actual results for
FY2023

FY2022(Reference
value)

Change fromFY2022(Reference)

Construction
Segment

Maintenance
Segment

Total(*) Operating profit is the result after total company expenses have been allocated to each segment.
© taihei-dengyo.co.jp. All Rights Reserved.

5Forecast of Consolidated Results(In millions of yen)

Actual results for
FY2023

Forecast for FY2024

Change amount

Change fromFY2023(Reference)

Orders received
Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent
Financial Results for FY2023• Orders received were lower than expected due to the impact of not receiving some orders for nuclear power repairs
and overseas construction projects.
• Net sales and operating profit also fell short of forecasts due to sluggish growth in work performed in construction
and nuclear power projects and deteriorating profitability in construction projects.
Forecast for FY2024• We expect increases in orders and net sales due to an increase in existing thermal and nuclear power plant repair
work and implementation of new construction projects such as EPC and projects related to carbon neutrality.
• We expect an increase in operating profit due to improved profitability in construction projects and increased profit
from repair work.

© taihei-dengyo.co.jp. All Rights Reserved.

6

Consolidated Cash Flows
2020年3月期
FY20192021年3月期
FY20202022年3月期
FY2021

2023年3月期
FY2022(Reference)(参考)(Reference)(参考)(Reference)(参考)(Reference)(参考)2024年3月期
FY2023Five-year
5カ年平均
average(In（単位：百万円）
millions of yen)
Cash and cash equivalents at
現金及び現金同等物の期首残高
beginning of period

17,942

16,97430,941

19,397

48,68926,789

営業活動によるキャッシュ・フローCash flows from operating activities-3,587

19,576613

32,501-4,6398,893

Cash flows from investing activities
投資活動によるキャッシュ・フロー

-4,332-2,011-8,679-1,445-895-3,472

財務活動によるキャッシュ・フローCash flows from financing activities

7,022-3,927-3,848-1,766-1,676

-839

-70

152

370

1

441

179

現金及び現金同等物の増減額-967

13,966-11,543

29,291-6,7704,795

Cash and cash equivalents at endof period

16,97430,941

19,397

48,68941,91931,584-7,91917,565-8,06531,056-5,534

5,421

Effect of exchange rate change on cash
and cash equivalents, etc.

現金及び現金同等物に係る換算差額等
Net increase (decrease) in cash
and cash equivalents

現金及び現金同等物の期末残高Free cash flows
フリーキャッシュ・フロー(Cash flows from operating activities + Cash

(営業活動によるCF+投資活動によるCF)
flows from investing activities)© taihei-dengyo.co.jp. All Rights Reserved.

7Orders Received and Back Orders (Consolidated)(In millions of yen)Orders received

Construction

Back orders

Maintenance

FY2022
cumulative© taihei-dengyo.co.jp. All Rights Reserved.

FY2023cumulative

End of
FY2022End of
FY20238

II. Dividend Policy and Initiatives to Enhance Corporate Value in FY2023© taihei-dengyo.co.jp. All Rights Reserved.

9

Initiatives to Enhance Corporate Value⚫ Equity spread performance has been positive and stable in the past few years due to increased ROE.
⚫ PBR is at a low level (low appeal and visibility for shareholders and investors and PER left at a low level).

FY2023 Performance

ROE
9.0%

1.00

Changes in PBR and ROE

PBR (times)

ROE

x0.94

PBR
PER
＝ x0.94
× x10.44

15.0%

9.0%

0.75
10.0%

0.50
6.2%

Equity spread
2.8%
Cost ofshareholders’equity

5.0%
0.25

0.00

0.0%
FY20162017/3/31

FY2017
2018/3/31© taihei-dengyo.co.jp. All Rights Reserved.

FY2018
2019/3/31

FY20192020/3/31

FY20202021/3/31

FY20212022/3/31

FY20222023/3/31

FY20232024/3/31

10

Actions to Achieve Management that is Conscious of Equity Cost and Stock
Price
Recognitionof the statusquo･We recognize that our equity cost is approximately 6.2%.
･ROE was 11.13% in FY2021, 12.69% in FY2022, and 9.0% in FY2023. We will continue to maintain the target of 9.0% or higher.
･PER has improved significantly from 7.29 times last fiscal year to 10.44 times this fiscal year, but we recognize that it is still
undervalued.
･PBR is 0.94 times, and it is important to aggressively implement medium- and long-term growth strategies to further increase
corporate value in the future.
Increasing profitability by growth investment and optimizing resource allocation
i. Optimization of resource allocation in existing businessii. Proactive investment in new businessiii. Expansion of business segments by M&A
iv. Expansion of overseas business

Policies andinitiatives

Distribution of cash acquired in business activities to growth investment and shareholder returns
i. Growth investment includes setting aside funds for R&D and capital investment aimed at realizing new business (green projects),
as well as reinforcing human capital (enhancing recruitment activities, human resource development, pursuing DX).
ii. As for shareholder returns, we will strive to pay dividends with a minimum Dividends on Equity (DOE) of 2% and target DOE of 3%.
iii. We will strive to pay dividends with a target payout ratio of 30%.
iv. We aim to reduce our policy shareholding ratio from the current 15% to less than 10% of consolidated net assets by FY2030.
Enhancing and expanding IR activities
i. Enhancing provision of information, including non-financial information about sustainability and the like, on our website.
ii. Strengthening proactive information disclosure and constructive dialog with investors.
iii. Considering disclosing the integrated report.

© taihei-dengyo.co.jp. All Rights Reserved.

11

Dividend Policy: Dividends and Dividends on Equity (DOE) (Consolidated)
Dividend per share

(yen)
600

Net income per share

Payout Ratio

DOE
60.0%

558

53.6%
490

500

49.0%

443

50.0%

441

400

40.0%

327

34.3%

296

300

30.6%

27.5%

233

30.6% 30.0%

27.1%

21.5%

22.6%

200
149
123
100

80

60
2.5%

90

80

2.6%

2.4%

1.8%

80

10.0%

2.6%

2.6%

2.4%

2.1%

150

135

120

100

20.0%

3.0%

0

0.0%
FY20162017/3

FY2017
2018/3© taihei-dengyo.co.jp. All Rights Reserved.

FY2018
2019/3
FY2018FY20192020/3

FY20202021/3

FY20212022/3

FY20222023/3

FY20232024/3

FY2024(Estimate)2025 (Estimate)
12Cash Allocation (FY2023–FY2025)
Cash flows from operating activities

12.0 billion yen

Increased working capital

15–20 billion yen

Required business funds
Cash and cash equivalents⚫ Implement flexible financing
as needed to cater for theincrease in demand forworking capital due to theincrease in the volume of
construction work, etc.
⚫ Allocate all of the stockacquisition rights-based
financing to growthinvestments, aiming toincrease corporate value
over the long term

25–30 billion yen

Cash flows from financing
activities
Cash flows from investing
activities⚫ Minimize funds on handand allocate cash flows toaggressive growthinvestments as a toppriority

Capital investment in green projects, etc.

10 billion yen

M&A and other strategic investments

20 billion yen

Shareholder returns© taihei-dengyo.co.jp. All Rights Reserved.

⚫ Maintain a certain level ofown capital and equity
ratio to prepare for
expenditures in large scaleconstruction projects andadditional construction
works⚫ As for shareholder returns,
strive for stable dividend
payments based on DOE
13

Financing for Growth Investment Based on the Mid-Term Business Plan
Purpose of financing—Growth investment based on the Mid-Term Business Plan
⚫ In order to respond to changes in the environment surrounding the power industry, we will promote initiatives to establish a position as acomprehensive plant construction company to achieve corporate growth through social contribution, based on the Mid-Term Business Plan.

Finance design—Sustainable FITs and sustainable trigger type⚫ The second issue of the two-phased Sustainable FITs is the first sustainable triggered scheme in Japan.
⚫ Control initial dilution by making only the first issue (dilution rate: 4.92%) exercisable in advance.
⚫ The second issue will become exercisable after the sustainable trigger is achieved, allowing us to raise additional funds and further enhance
our ability to execute the plan.

Use of funds
Use of funds(1) Capital investment funds for the renovation of Saitama Factory for the purpose of
improving productivity, etc.

Amount(Million yen)
1,500

(2) R&D expenditures in agriculture and forestry related to green projects

500(3) Investment funds for growth related to future M&A, capital and businessalliances, etc.

2,436(4) Capital investment funds for green projects

4,435

Total

© taihei-dengyo.co.jp. All Rights Reserved.

Exercise status(the 1st issue only)
Through May 14
Cumulative numberof units exercised

10,000 units

Number of shares

1,000,000 shares

Amount raised

4,073 million yen

8,871
14

III. Status of Initiatives in Mid-Term Business Plan

© taihei-dengyo.co.jp. All Rights Reserved.

15

Mid-Term Business Plan: Basic Policy
Targets for FY2025
ROE

Net sales

9% or more

150.0 billion yen

Aggressive management contributing to development of society
Co-creation management leading to new corporate value
Increasing sales by strengthening core businesses(thermal/nuclear power plants,
environmental facilities, decarbonization)

Initiatives aimed at new business(green projects—aggressive EPC)

M&A

Defensive management approach enabling prompt
response to changes in social structure
Adapting to upper limit
restriction on overtime work

Securing and developing
human resources

Organizational operation
focused on safety and quality

Responding to issues in previous mid-term business plan
Expansion of EPC and O&M
businesses© taihei-dengyo.co.jp. All Rights Reserved.

Expansion of overseas business16Changes in External/Internal Environment and Changes in Net Sales(In billions of yen)

Ukraine conflict
200.0
Growing interest in carbon
neutrality and climate
problems

Movement to restart nuclear
power

COVID-19

150.0

2011 Tohoku
Earthquake

139.0
127.7

Shutdown of nuclear
power stations

126.9

125.7

119.4

129.3

101.1
Earthquake
reconstruction work

77.4

82.3

62.3

79.5

81.3

Thermal power
Increase infacility
biomass power
construction
plant
peak
construction

Nuclear power
restart work

Expansionin nuclear
power
business

Increase inconstruction of
new nuclear
power facilities

Thermal power fuelconversion work

EPC, O&M
Waste disposal
facilities
construction

Leveling of fluctuation risks
by expansion of businesses
in chemical plants and steel
mills.

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
forecast plan
FY2014 – FY2016© taihei-dengyo.co.jp. All Rights Reserved.

FY2017 – FY2019

FY2020 – FY2022

FY2030plan

FY2023 – FY2025

17

Strengthening Core Business: Adapting to Changes with Aim of aCarbon-Neutral Society
Our efforts

Restarting of nuclear power plants• We have an extensive track record of construction and maintenancework, and we are aiming to increase the volume of work by leveraging
the strengths that have given us technical and mobilization advantages.

Status of compliance screening for new standards fornuclear power facilities
Tomari 1 2 3• We are contributing to safety measure implementation work acrossJapan by leveraging our remarkable track record in such work, which is
required for restarting nuclear power plants.

Shiga 1 2
Tsuruga 1 2
Oma

Mihama 1 2 3

Higashidori 1

Oi 1 2 3 4RokkashoTakahama 1 2 3 4• We are expanding our work area by stationing full-time staff at locations
without permanently stationed staff through safety measure
implementation projects.

Onagawa 1 2 3

Shimane 1 2 3

No. of nuclear power
facilities

Kashiwazaki-Kariwa
1 2 3 4 5 6 7Genkai 1 2 3 4

Fukushima No. 2

Already operational(periodic inspection inprogress at 1 site)

7 sites

Approved

6 sites

6 sites

Under review

10 sites

9 sites

Has not applied

8 sites

8 sites

1 2 3 4
Tokai No. 2
Ikata 1 2 3Hamaoka 3 4 5

12 sites

No. with which we havetrack record

Sendai 1 2
Has not applied

Under review

Approved

Operational

Decommissioned

1 PWR 2 BWR

Fuel cycle facility(Source) Japan Nuclear Safety Institute© taihei-dengyo.co.jp. All Rights Reserved.

(As of September 15, 2023)
18

Strengthening Core Businesses: Response toward the Restart of
Nuclear Power Plants
GX Decarbonization Power Supply Act
Description for nuclear power generation(2) Utilization of nuclear power/advancement of
decommissioning of nuclear power plants, with safetyassurance as a major premise (Atomic Energy Basic Act,Act on the Regulation of Nuclear Source Material, Nuclear
Fuel Material and Reactors, Electricity Business Act,
Reprocessing Act)
• In the Atomic Energy Basic Act, nuclear power is positioned as animportant non-fossil power source and its contribution to the realizationof a carbon-neutral society is clearly stated.
• Strengthen safety regulations and ensure the safety of aging reactors.
• Operation period can be extended with appropriate maintenance andsafety measures.
• Promote smooth and stable decommissioning of nuclear reactors.

Opportunities in the nuclear business• Increase in projects related to safety measures and renewal work
• Occurrence of construction of new reactors and their maintenance• Increase in demand related to life extension and operation period
extension• Increase in decommissioning projects© taihei-dengyo.co.jp. All Rights Reserved.

Our position and future plans
Position⚫ Maintain solid bases with over 100 site offices to enable support of a variety
of demand⚫ Development of a variety of machinery and equipment that can demonstrate
the same quality and construction capabilities as highly specialized
technicians→ Future construction and expansion of new nuclear power plants would not be possible
without our technology and mobilization capabilities.

Future policies⚫ With the experience in the construction of PWRs already restarted, expand business
opportunities for the next BWR restart construction and antiterror facilities.
→ Contribute to the restart of BWR plants through our accumulated technical expertise in both
PWRs and BWRs.

⚫ Participate from early stage in projects by domestic plant manufacturers.
→ Utilizing our abundant experience of 60 years in nuclear power main equipment installation,
we promote business partnerships with plant manufacturers, including entry into construction
planning.

⚫ Secure human resources capable of responding to the construction of advanced
nuclear reactors.

→ Secure outside resources with knowledge, train our employees, and ensure resources
capable of responding to the construction of advanced nuclear reactors.

19

New Business: Outline of Green Project
Revitalization/evolution of forestry“Green Projects” aim to realize a regional circularsociety to create new industries and employment byleveraging regional resources, such as forestry andagriculture, with a focus on biomass power plants

Forestry
CO2

CO2 absorption
amount ≈ 45 t/1,000
trees

CO2 absorption per m2:
2.13 kg(based on our
research*)

Developing
specialty products<Employment creation>
Agricultural
greenhouse➢ Forest restoration through felling of deteriorated forest and treeplanting➢ Stabilization of fuel and employment creation through planting fastgrowing paulownia➢ Creation of specialty products through establishment of model using
fast-growing paulownia as main material

CO2
Forestry
Felling/plantingof fast-growing
paulownia

Biomass fuelLumber usage

Regional contribution/
local production andconsumption

Local micro grid
CO2

CO2

Electricity
duringdisasterWarm water
Waste heat

AgriculturePower
generation
Hospitals, evacuation shelters

Exhaust gas

PowerBiomass power plant
Warm water
2,000 kW
Waste heat

Improved growth and flavor

Revitalization/evolution of agriculture➢ Improving productivity and flavor based on CO2 andheat supply➢ Data analysis and employment creation throughintroduction of cutting-edge agriculture➢ Revitalizing regional economies through developing
specialty products

Warm water

Waste heat

J-Credit

CO2 credits© taihei-dengyo.co.jp. All Rights Reserved.

CO2

Warm water

CO2*Results of cultivation trials at Seifu-Shinto from August 2022 to May 2023

CO2 capturesystemRegional contribution

Waste heat

Waste heat usage➢ Promoting introduction of locally produced and consumed
renewable energy➢ Supplying power to essential facilities in the event of a large-scale
power failure such as a disaster➢ Stable supply of power for base load power sources20New Business: Significance and Progress Status of Green Projects⚫ Developing power generation business in collaboration with local governments, revolving aroundinitiatives at biomass power plants.
Realize green projects at potential sites as soon as possible for nationwide expansion.
Starting green projects

・Discussions with local governments to realize green projects
・Research and development of new logging and lumber collection
methods in the forestry industry
・Confirmation of effectiveness of CO2 utilization

Potential
sites
Start nationwide
development basedon package torealize green
projects

Introducing CO2 capture system for carbon
negative operation

・Start testing a new method of lumber collection
・Start planting fast-growing trees (fast-growing
paulownia trees)・Start joint research with Hiroshima University
・Start of CO2 utilization (cultivation of tomatoes andstrawberries)

Toward further growth• Expand EPC business• Acquire new customers andexpand sales channels• Reinforce basic businesses
including maintenance andconstruction work, etc.

Accelerate efforts to realize green projects

CO2 capture system

2023

2022
2019

Future・Select potential sites for green projects
・Establish a new method of lumber collection in theforestry industry
・Verify optimal amount of CO2 fertilizer applied tocrops and fast-growing paulownia trees

Ownership of Seifu-Shinto Biomass Power
Plant (7,100 kW)
Accumulation of management expertise/humanresource development and regional contribution

2017Power plant O&M commissions© taihei-dengyo.co.jp. All Rights Reserved.

Seifu-Shinto Biomass
Power Plant

21

New Business: Green Projects(Technology Development for Entry into New Fields: Forestry)
PurposeTo reduce workload and increase efficiency of manual labor in severe natural conditions
Reduce costs through the introducing of efficient work systems adapted to site conditions,
including slopes, etc.

Contents■ Lumber collection

・ Simplifies installation and removal sequence of overhead wires and enables thecollection of lumber in a wide area with a single temporary installation➡ Posts with improved safety stages(Lumber collection system with overhead wires divided intomain and side lines)➡ Cableway system with intermediate posts

Taihei-type overhead
wire system forcollecting lumber

Backcountry forestsand hillside areas
where work roads
cannot be established
Conventional method
Logging road

Forest road

• Main post for lumber collection• Main post of side lines forlumber collection© taihei-dengyo.co.jp. All Rights Reserved.

• Intermediate support saddle

22

New Business: Technology Development to Implement Green Projects(Agriculture)
Utilization of CO2 and basic experiments (joint research with Hiroshima University)
PurposeTo establish a quantitative evaluation method by conducting basic tests on the effects of the growth environment on crops andquantifying the amount of fixed CO2 and the effect of applying fertilizer.
Contents◼ Cultivation test for tomatoes at Hiroshima University• A comparative test to confirm the difference between the amount of
tomatoes' CO2 absorption and growth of tomatoes by growing tomatoes
in two chambers (small experimental greenhouses) with different CO2
concentrations.
➢ It was confirmed that tomatoes grown in chambers with higher CO2
concentrations absorbed more CO2 and the amount of yields increased.
◼ Cultivation test in agricultural greenhouses at the Seifu-Shinto
Biomass Power Plant• CO2 emitted from the Seifu-Shinto Biomass Power Plant is sent toagricultural greenhouses on the site for a comparative study to confirm
the CO2 absorption amount of various varieties of crops.
➢ Crops exposed to CO2 are expected to increase yields and improveflavor. Cultivation tests are still ongoing.
© taihei-dengyo.co.jp. All Rights Reserved.

Image of cultivation tests in agricultural
greenhouses at the Seifu-Shinto Biomass
Power Plant

23

TOPICS
Investment in biomass power generation businessFebruary 2022
Fukuyama Biomass Power Plant LLC

Fukuyama Biomass Power Plant
52,700 kW (*1)
May 2025 (*2)
We will perform the construction work, and after the startof operation, we will be responsible for operation andmaintenance work for approximately 20 years jointly with
Hitachi Zosen Corporation.

May 2024
Yokote Yuzawa Forest Cycle Co., Ltd.

Yokote Power Plant
1,980 kW (*1)
June 2026 (*2)

Yuzawa Power Plant
1,980 kW (*1)
October 2026 (*2)

We also aim to participate as an EPC contractor.

(*1) Power generation output, (*2) Scheduled start of operation© taihei-dengyo.co.jp. All Rights Reserved.

24

TOPICS
Opened a facility to understand the lessons learned

Opened in November 2023 to train young
employees and prevent past incidents and nonconformities from being forgotten

Through exhibition related to past incidents andnon-conformities, convey the causes of theoccurrence, countermeasures, and the impact ofthe damage
Further raise awareness for safety and quality to make future construction sites safer and of
higher quality© taihei-dengyo.co.jp. All Rights Reserved.

25

TOPICS
Contribute to the realization of a carbon-net-zero society in 2050
—Implement projects to reduce on-site CO2 emissions

Full electricrough terrain

Electric forklift

Introduction of
EVs ascommutervehiclesIntroduction of solar powersystems at temporary offices© taihei-dengyo.co.jp. All Rights Reserved.

Amount of CO2 reduction
Full electric rough terrain

Approx. 15 tons/year

Electric forklift

Approx. 3.3 tons/year

Introduction of EVs as
commuter vehicles

Approx. 1.3 tons/year

Introduction of solar
power systems at
temporary offices

Approx. 0.5 tons/year26

Business Overview
Power Plants

Construction and maintenance, operations and maintenance, and outsourced operations ofthermal, nuclear, gas-turbine, diesel engine, geothermal, combined cycle and wind power
plantsIndustrial
PlantsConstruction and maintenance, including design and production of steel mill, petrochemical,
sugar refining, cement and other industrial plants

Environmental
Facilities

Construction and maintenance of refuse incineration, sludge treatment and waste recycling
plantsElectrical &Instrumentation

Design, manufacture, installation and maintenance of various electrical systems, sub-stations,control systems, optical fiber communication systems, and instrumentation and building
electrical facilities

Civil &
Architectural

Design and construction of various kinds of industrial plants, including heat ventilation and air
conditioning systems, utility sanitary systems, etc.

Fabrication

Design, procurement and fabrication of machined products, tanks, piping, Class-2 pressure
vessels, electrical & control panels, etc.

© taihei-dengyo.co.jp. All Rights Reserved.

27

Work for theprosperous society always as ever
豊かな社会とこれからも。

×
社会の当たり前を支える。
Support social norms

Disclaimer
The forecasts and forward-looking statements contained in this document are
based on information available to the Company at the time of publication andinvolve potential risks and uncertainties. Therefore, actual results may differ
materially from those described in the forward-looking statements due to changes
in various factors. The purpose of this material is to provide investors withinformation that may be used as a reference in making their decisions and is notintended as an inducement or invitation to purchase or sell shares of the Company.
© taihei-dengyo.co.jp. All Rights Reserved.

28