INFRONEER Holdings
FY2023 2nd Quarter Financial Presentation

Nov 10, 2023

FY2023 2Q Financial Presentation Contents
Main Contents
1.

Points2.

Growth Strategy：Realization of an integrated infrastructure service
company

3.

Transition of Results and Forecast

4.

Summary of Financial Results

5.

Segment Net Sales and Gross Profit

6.

Transition of Backlog, Order Intake and Profit Margin on Orders(Building Construction and Civil Engineering)

7.

Strategies & Return Policies / FY23 2Q Results and Forecast of
Capital8.

Main Factors for Increase/Decrease in the Consolidated Balance
Sheet

9.

Main Factors for Increase/Decrease in G&A

10. Capital Strategies and Share Price Performance
11. INFRONEER Group Employee Stock Ownership Plan

Segment Highlights
1.

Building Construction : Net sales and Gross Profit ( Maeda Corp.
Non-Consolidated )2.

Building Construction : Orders Received and Profit Margin of Orders
Received ( Maeda Corp. Non-Consolidated )3.

Building Construction :Types of Orders Received ( Maeda Corp.
Non-Consolidated )4.

Topics – Large-scale Private Sector Projects（Redevelopment／
Office Buildings Projects）

4.

Topics – Osaka Expo Projects

5.

Civil Engineering : Net sales and Gross Profit (Maeda Corp NonConsolidated Domestic)

6.

Civil Engineering : Orders Received and Profit Margin of Orders
Received ( Maeda Corp. Non-Consolidated )7.

Topics – Win Bid for Long-Distance Shield Construction for Tokyo's
Water and Wastewater Future 」

8.

Infrastructure Management : Contribution to Consolidated Profits

9.

Policy Trends：PPP/PFI Promote Action Plan（Revised 2023）has beenreleased by the Cabinet Office10.

Major Infrastructure Management Projects in Japan

11.

Road Civil Engineering :Net Sales and Gross Profit (MAEDA ROAD
Consolidated)

12.

Road Civil Engineering :Orders Received, Net Sales, and Gross
Profit (MAEDA ROAD Consolidated Construction business)

13.

Road Civil Engineering :Net Sales and Gross Profit (MAEDA ROAD
Consolidated Manufacturing and Sales Business)

14. Machinery : Net Sales and Gross Profit MAEDA SEISAKUSHO(Consolidated)
15. Machinery : Net Sales and Gross Profit MAEDA SEISAKUSHO(Consolidated)
16. Market introduction of attractive products for sustainable forest
development and wood utilization

Appendix
IFRS Transition Schedule and Major Changes Due to the Transition[Non-Consolidated] Maeda Corp. FY23 2Q Results and FY23 Full-Year
Forecast[Consolidated] MAEDA ROAD FY23 2Q Results and FY23 Full-Year Forecast[Consolidated] MAEDA SEISAKUSHO FY23 2Q Results and FY23 Full-Year
Forecast
INFRONEER Group’s FY23 2Q Results and FY23 Full-Year Forecast
Integrated Report 2023 -Making Steady Progress as an Integrated
Infrastructure Service CompanyComprehensive Partnership Agreement Signed Aiming to Enhance the Valueof the Town Famous for its Ceramics
Allocation of the Segments
Business Model of Infrastructure Management Business
Establishment of New Business Platform of Infrastructure OperationsFirst Investment Case of the Income Fund（ICF）
Differences between “Contribution to profit” and “Segment profit”

11．Points① Summary of financial FY23 2Q results（P.5-8）• As to the FY23 2Q results, net sales and gross profits increased significantly year-on-year.
• We have made upward revision as to the full year plan.

② FY23 2Q Results and FY23 Plan for each segments （P.14-36）
Building Construction & Civil Engineering Segment （P.14-19）• Increase in net sales while decrease in gross profit for FY23 2Q results. However, as to the full year plan, we expect
an increase in both net sales and gross profits as a result of successfully passing on the rising material andequipment cost to the clients.
• Amount of orders has increased significantly year-on-year in FY23 2Q as a result of obtaining order for a largescale project. We expect significant increase in the full year as well. We expect to maintain 7% of profit margin
on orders received.

Civil Engineering Segment（P.20-23）• Significant year-on-year increase in net sales and gross profit in FY23 2Q as a result of successfully obtaing
change orders. For full year, we expect significant increase in both net sales and gross profit while maintaining
high profit margin.
• We have been receiving orders as planned. Profit margin on orders remains high.

Infrastructure Management Segment （P.24-28）• Following Osaka City Industrial Water Concession Project, we have started operating Miura City Public Sewerage
Operation Project which is the first project in Japan that contains maintenance and renewal work for
wastewater treatment facility, pump station, and pipelines.
• PPP/PFI Promotion Action Plan (Revised 2023) which could potentially increase arena and water PPP projects
has been published.
• We have decided to postpone the sale of the renewable energy project and to sell some other developing
projects this fiscal year considering the upswing performance of other segments as well as the potential higher
profits from the sales of the renewable energy project in the future.
2１．Points
Road Civil Engineering Segment （P.29-32）• As to the FY23 2Q results, net sales and gross profit increased year-on-year as a result of successfully passing on
the rising material cost to the clients as well as carrying out abundant carry-overed projects.
• For Construction Business, we will focus on gross profit margin when making decision on receiving orders. For
Manufacturing and Sales Business, we will maintain proper unit sales prices in order to achieve the full year plan.

Machinery Segment （P.33-36）• In FY23 2Q, net sales and gross profits increased year-on-year due to strong sales of industrial machinery(“Spider Cranes” and crawler cranes) ,revision of sales prices, and other factors.
• Full-year results are expected to achieve the FY23 plan as well, based on the current order situation.

③ Return Policies for shareholder （P.9）• Following the JPY 30 billion yen share buyback in FY21 and FY22, JPY 10 billion yen share buyback is expected tobe completed in FY23 (commenced from June and has completed 48 billion yen as of end of October).
• In FY23, total return ratio expected to be 76.9%. (dividend payout ratio 43.4％, share buybacks 31.5%, “Dividends
for the Earth” 2.0%)• Interim dividend distributing from FY23.

④ Cross-shareholdings （P.9）
・ 3.0 billion yen to be sold in FY233

Growth Strategy：Realization of an integrated infrastructure service company

4

M＆A
IT・DX strategy(Accenture)

Strategic
Investment(TOSHIBA etc.)
Engineering
Capabilities

1st place intechnical
evaluation points

High designbuild ratio
Upstream
project
origination

Strict orderdiscipline

I.Growth
Investment

Ⅱ.Contracting

CapitalRecycleRenewable Energy
Solar|Wind(Onshore&Off
shore)|Biomass

Financial
Know-howConcession

Airport|Road|Exhibition
hall|
Arena|Water andsewerage system

Collaboration with
global partners

Ⅲ.”Deconstruction”

Group-wide sales
structureEngineering Capabilities✕Finance Know-how

Challenge the status quo
Strengthening of GovernanceHoldings Structure・Company with aNomination Committee, etc.
Stock benefits toall group employees

Ⅳ. Strengthening of corporate
cultureSynergy
Sharing management
information

Improvement offundraising capability(Rating)
Promotion of Shared
Services

3．Transition of Results and Forecast• Each segment is progressing well, and we expect to achieve our full-year plan.
• We expect operating profit and added value to exceed the previous year (with added value
expected to reach a record high).

Operating profit(Billions of Yen)

Operating profit

60.0

40.0

Operating margin

48.1

46.3

50.0

35.9

34.0

30.0

30.0

6.3%

5.7%

Net income

40.0(1Q 44.9)

40.5

37.5

Net income(Billions of Yen)

24.0

20.0

0.0

FY18

(Billions of Yen)

FY19

FY20

FY21

0.0

FY22

FY23

Revised forecast【IFRS】EBITDA

100.0

60.0

49.4

69.1

73.3

(1Q 70.1)

71.8

5.1%

FY19

FY20

FY21

FY22

Added ※
value

180.0

145.1

150.0
120.0

48.8

90.0

40.0

4.1%
2Q
16.1

FY23

Revised forecast【IFRS】

88.5

140.2

158.1
151.2(1Q 154.9)

88.6

60.0

20.0
0.0

26.7

FY23 forecast＝ Operating profit + Total labor costs + Depreciation + R&D costs（IFRS)FY23 2Q＝ Business profit + Total labor costs + Depreciation + R&D costs(JGAAP)＝Business profit ＋Depreciation（IFRS）

80.0

FY18

31.7

(1Q 30.0)

2Q
13.3(Billions of Yen)

＝ Operating profit + Depreciation

77.5

23.3

10.0

2Q
23.1

2Q
14.7

35.9

14.3

20.0
10.0

Net income margine

FY18

FY19

FY20

FY21

2Q
30.3

2Q
35.5

FY22

FY23

※1 See p.34 for key changes resulting from the transition to IFRS
※2 Business profit from FY23 onwards

Revised forecast【IFRS】

2Q
65.6

30.0
0.0

FY18

FY19

FY20

FY21

FY22

2Q
77.5

FY23

Revised
Forecast【IFRS】

5

4 ． Summary of Financial Results• FY23 2Q results, results showed a significant year-on-year increase in both sales and profits. This
substantial growth was due to the successful completion of major projects and the acquisition ofdesign changes.
• The full-year plan for FY23 has also been revised upward from the original plan.
（Billions of Yen）
FY22
2QResult
Net sales

313.5

Gross profit

42.8 (13.7%)

SG&A

28.1

Business profit

FY23 2QResult
※

IFRS
355.4

(9.0%)

―

JGAAP

YoY

Progress

FY22
ResultFY23【Forecast】※

Full -year

353.1

39.6

46.3%

709.6

51.3 (14.4%)

51.3 (14.5%)

8.5

47.9%

98.1 (13.8%) 102.8 (13.8%)

28.6(8.0%)

31.4

3.2

47.8%

23.1 (6.5%)―(8.9%)

745.0

Revised768.2

Full-year
740.0

Revised
762.9

53.3

107.2 (14.0%) 103.0 (1.4%)

107.0 (1.4%)

8.9

65.7 (0.9%)

57.6 (8.1%)

59.3 (8.0%)

60.3 (7.8%)

64.7 (0.9%)――

44.9 (6.0%)

48.1 (6.3%)

―

5.2

48.2%

40.5 (5.7%)――

38.3 (0.5%)

―

YoY

JGAAP

IFRS

―

Operating profit

14.7(4.7%)―

19.9 (5.6%)

Non-operating profit

3.0(0.9%)―

2.3(0.7%)△0.6―

4.3 (0.6%)

―

―

―

―

―

Non-operating expenses

1.6(0.5%)―

1.4(0.4%)△0.2―

3.0 (0.4%)

―

―

―

―

―

Ordinary profit

16.0(5.1%)―

20.9 (5.9%)

4.8

49.1%

41.8 (5.9%)――

39.2 (0.5%)

Extraordinary income

3.1(1.0%)―

0.6(0.2%)△2.5―

12.5 (1.8%)

―

―

―

Extraordinary losses

0.3(0.1%)

0.2(0.1%)△0.1―

2.4 (0.3%)

Net income

13.3 (4.2%)

13.5 (3.8%)

0.2

49.2%

35.9 (5.1%)―
16.1 (4.5%)―30 (4.0%)―32 (0.4%)―
25.2 (0.3%)

41.3 (5.4%)

8.1―

42.5 (5.6%)――
27.5 (3.6%)

0.8

0.7
―
―
△8.4

Equity

345.0

―

363.7

―

―

352.7

―

―

―

―

―

ROE

―

―

―

―

―

10.3%

―

―

―

―

―

EPS

―

―

―

―

―

138.4JPY

120.1JPY

126.7JPY

100.9JPY

109.9JPY―※ This is an estimate as the reclassification of actual figures to
IFRS will be done in the future.
※ See p.38 for key changes resulting from the transition to IFRS

6

5． Segment Net Sales and Gross Profit※

FY22
2QResult
Net sales
Building Construction
Civil Engineering
Road Paving
Machinery
Infrastructure
Operations
OthersGross profit
Building Construction
Civil Engineering
Road Paving
Machinery
Infrastructure
Operations
OthersOperating profit
Business profit (IFRS)Others2QResult

313.5
86.9
68.6
109.1
16.3

353.1
107.0
82.7
116.4
19.4

14.7

YoY

39.6
20.1
14.1
7.3
3.0

Progress

FY22
Result①

FY23【forecast】
JGAAP
Full-Year②

Revised
③

47.7%
44.8%
53.3%
47.9%
49.6%

709.6
215.5
152.0
243.7
37.3

740.0
239.0
155.0
243.0
39.0

762.9
259.7
165.2
243.0
39.4

8.3

△ 6.4 34.7%

22.5

24.0

17.6

17.9
42.8 (13.7%)7.4 (8.5%)
13.7 (20.0%)
8.1 (7.4%)
3.4 (20.6%)

19.4
51.3 (14.5%)
6.9 (6.4%)
23.8 (28.7%)
14.0 (12.0%)
4.1 (21.1%)

1.5
8.5
△ 0.5
10.1
5.9
0.7

8.6 (58.2%)

1.1 (13.1%)

1.7 (9.4%)（Billions of Yen）

FY23【forecast】
IFRS※

YoY
differenc ③ー①
Full-Year
Revisede④⑤③ー②
22.9 53.2 745.0
768.2
20.7 44.2 220.5
242.1
10.2 13.1 155.0
165.0
0.0 △0.7 242.5
242.4
0.4
2.1 39.0
39.3
38.0

38.6
40.0
38.1
98.1 (13.8%) 103.0 (13.9%) 107.0 (14.0%)
23.7 (11.0%) 26.0 (10.9%) 24.9 (9.6%)
28.5 (18.8%) 27.0 (17.4%) 39.0 (23.6%)
24.1 (9.9%) 28.3 (11.6%) 27.9 (11.5%)
7.8 (20.8%) 8.2 (21.0%) 8.4 (21.3%)△ 1.9 △0.5
4.0
8.9
△ 1.1
1.2
12.0 10.5
△ 0.4
3.8
0.2
0.6

50.0
47.8
102.8 (13.8%) 107.2 (14.0%)
25.0 (11.3%) 24.2 (10.0%)
27.0 (17.4%) 38.9 (23.6%)
28.0 (11.5%) 27.7 (11.4%)
8.2 (21.0%) 8.4 (21.4%)△ 7.5 11.8%

10.1 (44.8%)

9.2 (38.3%)

2.8 (16.0%)△ 6.4 △7.3

9.4 (24.7%)

3.3 (10.4%)△ 6.1 △6.8

1.5 (7.8%)△ 0.2 35.1%

3.9 (10.1%)

4.3 (10.8%)

4.0 (10.5%)

△ 0.3

0.1

5.2 (10.4%)

4.7 (9.8%)

△ 0.5

0.8

14.7 (4.7%) 19.9 (5.6%)

5.2 52.0%

40.5 (5.7%) 38.3 (5.2%) 41.3 (5.4%)

3.0

0.8

44.9 (6.0%) 48.1 (6.3%)

3.2

7.6

8.2 (11.9%)△ 1.8 (-1.6%)
0.6 (3.5%)
7.6 (51.8%)
0.3 (1.4%)△(-1.9%)
2.0
17.7 (21.4%)
3.4 (2.9%)
1.1 (5.4%)△-(1.4%)
0.1△-(0.2%)
0.0

48.4%
49.8%
26.4%
88.0%
49.4%
49.8%

△ 1.9 -22.7%
9.5 128.9%
5.2 54.0%
0.5 58.3%

8.9 (4.1%)

9.0 (3.8%)

7.3 (2.8%)

31.6

YoY
differenc ⑤ー①e⑤ー④
23.2 58.6
21.6 26.6
10.0 13.0△ 0.1 △1.3
0.3
2.0

△ 6.5 △5.0

Building Construction △ 0.2 (-0.2%)
Civil Engineering
Road Paving
Machinery
Infrastructure
Operations

FY23

9.1

△ 2.2
4.4
△ 0.8
11.9
△ 0.3
0.2

9.2
9.1
0.5
10.4
3.6
0.6

△ 1.7 △1.6

8.0 (3.6%)

17.0 (11.2%) 13.7 (8.8%) 25.6 (15.5%)
3.9 (1.6%) 6.3 (2.6%) 5.8 (2.4%)
1.7 (4.7%) 1.8 (4.6%)
1.8 (4.6%)

11.9
△ 0.5
0.0

13.7 (8.8%) 25.5 (15.5%)
12.5 (5.2%) 12.1 (5.0%)
1.8 (4.6%)
1.8 (4.6%)

11.8
△ 0.4
0.0

8.6
1.9
0.1

6.6 (2.7%)△ 6.4△ 1.4 △2.3
8.5
8.2
0.1

△ 7.8

-1.9%

8.1 (36.2%)

6.3 (26.3%)

0.0 (0.0%)△ 6.3 △8.1

6.2 (16.3%)

0.1 (0.3%)△ 6.1 △8.0

△ 0.3

-2.5%

0.8 (2.2%)

1.2 (3.0%)

0.8 (2.1%)△ 0.4 △0.0

2.7 (5.4%)

2.0 (4.2%)△ 0.7※ The Pavement segment includes amortization etc. of goodwill.
※ Previous Segment：See p.45 for details on segments.
※ See p.38 for key changes resulting from the transition to IFRS.

1.2

7

6． Transition of Backlog, Order Intake and Profit Margin on Orders(Building Construction and Civil Engineering)• Backlog as of 2Q and planned at the end of the fiscal year is the highest ever for building construction.
• The civil engineering order profit margin is expected to maintain a high level, and order profit margin of thebuilding construction is also expected to achieve the plan .
• We will continue to focus on negotiating price increases and proactively engage in upstream activities to minimize
participation in bidding (such as securing stable customers, increasing the design-build ratio and obtaining
information on large projects). This approach will enable us to effectively manage the order margin.
Transition of contract backlogs※（Billions of Yen）

2Q

Building Construction

450.0
352.5

350.0
300.0

321.6

OrdersProfit margine_results

Full year

500.0

400.0

374.4

439.6
417.0
394.6

480.9

477.5

300.0
238.0

302.8
100.0

250.0
200.0
FY20

FY21

FY22

0.0

FY23

（Billions of Yen）

261.9

262.2

7.7%

6.8%

6.9%

8.0%

6.3%

6.5%

7.0%

2Q

Full year

150.0

350.0

FY19

FY20

FY21

Civil Engineering

294.5
292.4
274.6

291.2

289.6
278.5
255.1

100.0
50.0
0.0

200.0
FY20

※ Maeda Corporation (Non-consolidated)

FY21

FY22

163.6

20%

FY23

10%

FY22

7.0%

FY23

(Forecast)
163.0

160.4
106.5

10.0%

12.6%

276.5

250.0

FY19

156.4

323.5

309.5

280.0

1Q 2Q
1Q 7.0%5.9% 6.5% 2Q
4.7%
148.8

200.0

（Billions of Yen）

300.0

246.8

Profit margine_forecast

200.0

268.3

FY19

Transition of orders and profit margin ※（Billions of Yen）

7.9%
FY19

9.7%

11.8%

2Q
12.5%

9.0%

1Q
9.1% 10.0%

10.0%
9.5% 1Q
10.0%

FY20

FY21

FY22

2Q
59.0

FY23

0%
25%
20%
15%
10%
5%
0%

(Forecast)8

7． Strategies & Return Policies / FY23 2Q Results and Forecast of Capital
Shareholder returns• Following JPY 30 billion yen share buyback undertaken in FY21 and FY22, JPY 10 billion yen share buyback in FY23 is in progress(as announced on May 11, 2023) (Commenced on 2023 June. Further 4.8 billion yen completed at end of October)

Cross-shareholdings• 3.0 billion yen of shares to be sold in FY23.

Medium-term Vision 2024
Capitalefficiency
OptimalcapitalstructureAssetefficiency

FY23 2Q Result

Notes

ROE

9.5％

10.3%

ー

ー

Equity ratio

More than 30％

38.1%

37.2%

ー

D/E ratio

Less than 0.6
times

0.4 times

0.6 timesーMore than 30％

39.7%

43.4%
（Full-Year revised
Plan）

FY23 Full-Year Plan
Dividends per share: JPY 55 yen(distribute interim dividend)More than
40.0 billion JPY

JPY 30 billion yen
completed in
FY21・22

JPY 10 billion yen
planned to becompleted in FY23

Medium-term targets are expected tobe achieved in FY23.
FY23 Full-Year Plan
Dividend payout ratio 43.4％+Share buybacks 31.5%+“Dividends for the Earth” 2.0%

Dividend
payout ratio

Shareholder
returns

FY22 Year End

Share buyback（in progress since June）

Total payout
ratio

ー

69.5%

76.9%
（Full-year revised
Plan）

Crossshareholdings/
Net assets rate

Less than 20％

19.8%

23.5%

Sales of assets

Due to an increase in the share priceof cross-shareholdings
FY22 4Q 19.8％➡FY23 1Q 23.5%

Consider sale or integration of inefficient assets by examining the usage status of group-owned assets.

9

8．Main Factors for Increase / Decrease in the Consolidated Balance Sheet
Assets（Billions of Yen）

+52.1(+55.2)926.6(821.4) ※1

Liabilities and Net assets
978.7(876.6) ※1

926.6
Liabilities

Main Factor

484.1

409.9

+ 0.6

Right tooperate thepublicfacility
105.1

Intangible Assets Assets for renewal of
159.1
Fixed Assets(Investment)
136.5

157.9

concession projects ＋5.2
Amortization of goodwill▲3.0+ 43.3

Investment securities＋43.1

FY22 4Q※1

Right tooperate thepublicfacility
102.1

219.9

Accounts payable
for construction
contracts
▲2.46

385.4
Liabilities for rightto operate thepublic facility
107.3

+11.1
Net Assets
362.3

179.7

FY23 2Q

3.9%

ROA (4.4%)+65.5

Liabilities for rightto operate thepublic facility
104.2

156.9

156.3

▲1.2

978.7

▲ 24.5

Other Liabilities

Fixed Assets+52.1

Short-term loans
payable＋42.0
with interest
Long-term loans
154.4 ※2 payable+34.2
Corporate Bond ▲10.0+9.4
Current Assets Costs on uncompleted
construction contracts
474.7
+11.3

（Billions of Yen）

FY22 4Q

Retained earnings ▲14.0
Valuation difference on
available-for-salesecurities＋11.8
Net income
+13.5

373.4

FY23 2Q※1（ ）・・・Figures exclude Right to operate the public facility※2 Liabilities with interest= short term debt, long term debt, non-recourse borrowings (including current
portion) and bonds.
※３Right to operate the public facility
Consideration paid for the transfer of rights to operate public facilities such as concession projects over a
period of years

109．Main Factors for Increase/Decrease in G&A
Personnel expenses• Increase in reserves due to the introduction of the J-ESOP for all group employees• Increase due to introduction of new personnel system and regular salary increases
R&D costs• Increase in new development themes such as in the area of de-construction, and research cost on
comprehensive road management work.
（Billions of Yen）

Incremental Factor
Travel expenses ・Transport andcommunicationtransport costs(1Q 647)(1Q 39)11

10．Capital Strategies and Share Price Performance••

Following the announcement of the FY22 financial statement, the share price has surpassed therecord since the listing on the stock exchange market
We will continue to perform capital-efficiency oriented management by constantly executing ourcapital strategies and by achieving our performance targets.
FY21

FY22

Dividend payout ratio 42.2%
Total payout ratio 111.2%
Share buyback
20.0 billion yen

Dividend payout ratio 39.7%
Total payout ratio 69.5%

Interim dividend 25yen
Year end dividend 30yen

Share buyback 10.0 billion yen

Share buyback
10.0 billion yen

65%

Record High Stock Price
1635.5 yen (Sep 20 2023)

55%

45%

35%

FY23

Establishment of INFRONEER Holdings
935 yen (Oct 1 2021)

25%

Increase in Dividend Per Share
40 yen→55 yen

INFRONEER
Holdings

15%0％・Earnings Announcement
・Share Buyback
・Interim Dividend
・Employee Stock Ownership
Plan

-5%

2021/10

FY23.1Q
financial disclosure(Aug 10 2023)

Announcements:(May 11 2023)

5%

-15%

4.84 billion yen
acquired as of
Oct 31

Announcement:(May 8 2023)

TOPIX

Lowest Stock Price
896 yen (June 6 2022)
2022/32022/9※Growth rate of the share price since the reference date (Oct 1 2021)●: Date of Announcement on Financial Results

2023/32023/712

11．INFRONEER Group Employee Stock Ownership Plan

Re-posting of FY23 1Q material•

We will apply Employee Stock Ownership Plan (“J-ESOP”) which distributes INFRONEER Holdings’
stocks to all INFRONEER Holdings’ and the Group companies’ employees subject to certain criteria.

•

The purpose of this program is to foster connections between the employees and the company, toimprove stock price, and to create stronger sense of commitment and motivation among theemployees to improve the INFRONEER Group’s performance.

•

The amount of stocks distributed will be determined in accordance with the Group’s net income
Stocks✓ Align the interest of theemployees with those of theshareholders
StocksStocksStocksMaeda Corp

Maeda Road

Maeda
Seisakusho

StocksStocksStocksConsolidated
Subsidiaries

Consolidated
Subsidiaries

Consolidated
Subsidiaries

Distribute stocks to all group companies' employees
subject to certain criteria (approx. 8,000 employees)✓ Incentivize to increase INFRONEERGroup’s profit✓ Increase commitment to the
management✓ Increase employees’ interest to
the stock market✓ Strengthen ties between theemployees and the INFRONEER
Group

13

Segment

Highlights

Building
Construction

Civil
Engineering

InfrastructureManagement

Road Civil
Engineering

Machinery

Others14

１．Net Sales, and Gross Profit ( Maeda Corp. Non-Consolidated )・FY23 2Q
・FY23 FY・FY24 FY

Include real estate business Building Construction
建築

The current sales progress rate towards the end-of-term sales plan is 45%, which is average rate for thistime of the year. Profit has decreased due to delay in passing on soaring labor cost and facility constructions
cost.
Expecting increase in both net sales and gross profit. We will recover profits by passing on labor cost andfacility construction cost to the clients.
Expecting significant increase in both net sales and gross profit due to progress of the large-scale projectand completion of “completion basis” project.

Full Year※

2Q※(Billions of Yen)

(Billions of Yen)
Net sales

Gross profit

Gross profit margin_result

250.0

25%

200.0

20%

100.0

Gross profit margin_forecast

Gross profit margin_result

25%

300.0
250.0

260.0

20%

(1Q 240)

218.5

217.2

15%

15%

9.0%

8.4%
107.4

102.1

88.2

50.0
9.2
0.0

Gross profit

300.0

200.0

150.0

Net sales

FY21

FY22

10.9%

11.0%

100.0

10.8%

10.4%

10%

6.5%
5%

7.4

150.0

50.0

6.9
FY23

0%

0.0

23.5

FY21

23.8

FY22

9.6%

(1Q 26)25.0

FY23(forecast)

10%

30.0

FY24
(forecast)

5%0%※For this figure including the real estate business (Building Construction), the figure before FY21 is different from the figure in publication documents.
Net Sales and profit of major local subsidiaries are contained in “others” segment.

Include real estate business Building Construction
建築

２．Orders Received and Profit Margin of Orders Received ( Maeda Corp. Non-Consolidated )・FY23 2Q We have received orders for large-scale redevelopment project, office building project, and logistics
warehouse project・FY23 FY We forecast to meet our 280 billion yen target of orders as we expect to receive orders for redevelopment
project and large-scale logistics warehouse projects this fiscal year.

2Q※

Full Year※(Billions of Yen)

(Billions of Yen)

Orders Recieved（total）
Orders Recieved（overseas）
Orders Recieved（Public）
Profit margin of orders received（Result）

300.0
250.0

10%

7.8%

150.0

124.4

109.7

62.0
85.0

50.0

200.0
0.27

5%

FY21

262.2

8.0%

7.7%

7.0%

7.0%

10%

150.0

189.2

205.2

7.0%
230

57.0

50.0

5%

0.52
100.0

132.3

50.0

62.4
0.0

261.9

280.0

6.6%
148.8

0.02
100.0

250.0

5.9%

200.0

300.0

Orders Recieved（total）
Orders Recieved（Private）
Profit margin of orders received（Forecast）
Profit margin of orders received（Result）

24.2

13.8

FY22

FY23

0%

0.0

72.7
FY21

FY22

FY23

0%

※ For this figure including the real estate business (Building Construction), the figure before FY21 is different from the figure in publication documents.
※The amount calculated based on the exchange rate at that time for overseas.

Include real estate business Building Construction

３．Types of Orders Received ( Maeda Corp. Non-Consolidated )・FY23 FY

We expect an increase in the share of “Offices, Governmental Buildings" sector due to obtaining contracts forlarge -scale office building projects.
We also expect “Warehouses and Logistics Facilities” as we expect an increase in obtaining contracts for large
scale logistics facilities
We will continue to target stable order intake by primarily focusing on “Condominium” sector.

100%
90%

【

20.3%
【6.2％】

18.0%【4.5％】

12.1%【5.6％】

10.1%【8.7%】

4.2%…

】 indicate profit margin on orders

20.0%(1Q 15%)

80%
70%
60%

34.2%
【6.4％】

22.8%【7.3％】

31.6%【7.4％】

41.1%【7.9%】

40.2%【7.1%】

40.0%(1Q 35%)

Offices,
Governmental
Buildings
Commercial
Buildings
Factories, Power Plants,
Warehouses
Logistics Facilities

50%
40%
30%
20%
10%
0%

14.7%
【7.2％】
12.5%【5.8％】
18.3%

40.0%【6.3％】

38.7%【7.4％】

22.1%【6.9%】

39.6%【7.8%】

Condominium
25.0%

2.7%
【8.8％】
16.5%

7.2%【6.0％】
10.4%

21.9%【8.0%】
4.7%(1Q 30%)9.9%【6.5%】
6.1%

FY18
FY19
FY20
FY21
FY22
（通期実績） （通期実績） （通期実績） （通期実績） （通期実績）

5.0%(1Q 15%)

10.0%(1Q 5%)

FY23（Foreast）

Educational
Research
Cultural Institutions
Others17

４. Topics – Large-scale Private Sector Projects（Redevelopment／Office Buildings
Projects）
Urban Redevelopment Project at Osaki Station West Exit F South
District (Building & Public Facilities Construction)

建築

Tenjin Business Center (2nd Phase) Project (Tentative Name)

This district was plagued with disaster prevention issues such as densely
packed aging small wooden houses, narrow roads, and a lack of squares andgreen spaces. In this project, we aim to create a safe and comfortable urban
environment suitable for a subcenter by rational and sound high-density use ofland and renewal of urban functions. We are creating a space with highdisaster prevention capabilities by resolving the densely populated urban area.

This project is to build a next-generation workplace that contributes to the improvementof the international competitiveness of the Tenjin district, realizing diverse and flexible
ways of working. We will develop a distinctive atrium space called "Accelerium" thatspans seven floors from the basement, leading to the activation of customer attraction,interaction, and creation. By actively placing green spaces inside and outside thebuilding and aiming to obtain "ZEB oriented" certification through excellent
environmental consideration technologies, we will reduce environmental load andrealize a building with high energy-saving performance.

Owner：Osaki Station West Exit F South District Redevelopment
Association

Owner ：天神一丁目761プロジェクト合同会社(Tenjin 1 Chome 761 Project LLP)

Use

Condominium, offices, commercials, nursing facility, public
facilies, parking spaces and others

Use

Offices, commercials, parking spaces

Structureand Scale

Structure: Reinforced Concrete Structure, Steel Reinforced
Concrete Structure, Steel Construction
Scale: Basement 3-story basement, 37-story building

Structureand Scale

Structure: Steel Construction (partially Reinforced Concrete
Structure)
Scale: 2-story basement, 18-story building

Gross Floor
Area

６２，９４８．１９㎡

Period2023 October to 2026 June

Gross Floor
Area

５２，１２４㎡

Period2023 April to 2026 February

18

建築

４.Topics - Osaka Expo Projects
2025 Osaka Kansai Expo Pavilion

Numerous pavilions proposing solutions to social issues are being planned by various domestic and international organizations for the"2025 Osaka-Kansai Expo," under the theme of "Designing a Future Society for Our Lives." Amidst this, we have received an order for the"PASONA NATUREVERSE" by Pasona Group Inc., which contemplates health, purpose in life, and work styles under the concept of "Thankyou, life." Furthermore, we have also received an order for the "GUNDAM NEXT FUTURE PAVILION" by Bandai Namco Holdings Inc., which
explores further possibilities of Gundam in solving future societal issues, based on a worldview where Gundam and humans coexist.

PASONA NATUREVERSEGUNDAM NEXT FUTURE PAVILION©創通・サンライズ

Owner: Bandai Namco Holdings Inc

Owner: Pasona Group Inc

Use

Buildings (others)

Use

Buildings (others)

Structure andScale

Structure: Steel Construction
Scale: 2-story building

Structure andScale

Structure: Steel Construction
Scale: 2-story building

Gross Floor
Area

２，４８５㎡

Gross Floor
Area

２，５１５㎡

Period2023 September to 2024 November

Period2023 August to 2024 SeptemberSegment

Highlights

Building
Construction

Civil
Engineering

InfrastructureManagement

Road Civil
Engineering

Machinery

Others20

Including real estate sector

5．Net Sales and Gross Profit (Maeda Corp Non-Consolidated Domestic)

Civil Engineering• FY23 2Q It has become almost certain that the profit margin on the large construction projects on hand at the
beginning of the period will improve significantly. In addition, difficult design changes for projects completed thisfiscal year, as well as more efficient construction and shorter construction periods, led to a significant increase inprofits.
• FY23 FY Expect to see an increase in YoY revenue due to the completion of large projects on hand at the
beginning of the period and further design changes.

Full Year※

2Q※
Net Sales

Gross Profit

Gross Profit Margin_Results（Billions of Yen）
85

28.6%

25%

65
61.3

17.9%

15%

15.3%
23.6
9.4

FY21

10%

12.1

FY22

FY23

0%

※The figures for FY21 in this page differs from the figuresannounced in the previous statements as the figures inthis page includes figures of the real estate sector

30%

164.4
150

151.4

141.5
17.9%

(1Q 155)

18.4%

23.7%
(1Q 17.5%)

100
15.6%

39.0
25.3

0

FY21

27.9

FY22

25%
20%
15%

17.0%

50

5%

5
-5

Gross Profit Margin_Results（Billions of Yen）

20%

25
15

Gross Profit Margin_Plan

67.9

45
35

Gross Profit

82.3

75

55

30%

Net Sales(1Q時 27)

FY23(Forecast)

10%

5%
0%

21

Including real estate sector

Civil Engineering

6．Orders Received and Profit Margin on Orders Received (Maeda Corp Non-Consolidated)• FY23 2Q Orders continue to be steady in both the public and private sectors following 1Q , progressing asplanned. The profit margin at the time of order is also maintained at a high level.
• FY23 FY Securing orders for large-scale projects concentrated in the second half of the year. Expect full year
plans to be achieved through the acquisition of additional design modifications.

Full Year※

2Q※
Orders (Public)

Orders (Private)

Profit Margin for Orders_Results（Billions of Yen）
59.0
12.7%
47.9

15%

30.0

8.2%
27.7

0.0

Profit Margins of Orders_Results

200.0

15%

160.4
150.0
10%

33.9

9.7%
9.0%

100.0

21.0

FY21

FY22

9.5%

97.4

163.0
10.0%

10%

63.0

39.4
33.7

20.2

11.8%

106.5

12.9

20.0

10.0

Profit Margins of Orders_Plan

12.5%
25.2

40.0

Orders (Private)（Billions of Yen）

60.0
50.0

Orders (Public)

FY23

5%

5%

50.0

0%

※The figures for FY21 in this page differs from the figuresannounced in the previous statements as the figures in thispage include figures of the real estate sector.

0.0

100.0
63.0

67.1

FY21

FY22

FY23
(Forecast)

0%22

7． Topics 「 Wins Bid for Long-Distance Shield Construction for Tokyo's Water
and Wastewater Future 」
Construction of a connecting pipe between Shibaura
Water Reclamation Center and Morigasaki Water
Reclamation Center 5

Civil Engineering

New construction of a water pipe (inner diameter:
600 mm) between the sites of Nekabu Water Station
and Katsunuma 1- chome, Oume-shi (shield tunnelingworks)● Standard cross-sectional drawing● Tunnel standard cross-sectional drawing

This project involves the reconstruction of the Shibaura Water
Reclamation Center and Morigasaki Water Reclamation Center
facilities, which are facing problems such as aging andinsufficient capacity, to improve their functions. A large-diametershield will be constructed 65 m below the Keihin Canal to create
a connecting pipe that can exchange treatment capacity witheach other during temporary shutdowns.
Owner ： Japan Sewage Works Agency

This project aims to ensure a stable water supply in the event ofdisasters or accidents. The construction work includes the installation ofa water supply pipe and a main distribution pipe from the distribution
tank of the Nekabu Water Station to the vicinity of the JR Oume Line
"Higashi Oume" Station using the shield construction method. Push-in
shafts will be constructed for the main distribution pipe at two locations
along the route, and the work will also include connection to nearby
distribution pipes by driving and excavation.
Owner ： Bureau of Waterworks Tokyo Metropolitan Government

Location

1-4 Chome, Yashio, Shinagawa-ku, Tokyo

Location

Outline ofconstruction

Slurry shield method Φ6000 L=2,162.2m

Outline ofconstruction

Period2023 September to 2027 April

PeriodFrom 237 Nekabu 2-chome (Nekabu Water Station) to 27
Katsunuma 1-chome, Oume-shi, Tokyo
Earth pressure balanced shield Φ2250 L=2,145m、New construction of a water pipe
(inner diameter: 600 mm)
2023 May to 2027 July23

Segment

Highlights

Building
Construction

Civil
Engineering

InfrastructureManagement

Road Civil
Engineering

Machinery

Others24

Infrastructure Management

8．Contribution to Consolidated Profits• Although the sale of the renewable energy business, which had been under consideration, was postponed to thenext fiscal year or later, the sale of some development facilities is expected to result in a gain of 0.9 billion yen.
• As for the performance of the Aichi Road Concession, traffic volume has increased since last fiscal year, but has notrecovered to pre-Corona levels. In addition, due to the change in depreciation method and other factors, operating
profit is expected to be about 900 million yen lower than planned.
Legend• Full-year profit contribution is expected to be 4.3 billion yen.
12 (Billions of Yen)
10

10

0.7

Profit Contribution

6.2
1.3

5.3

5.2

0.5

1.2

0.2
4

4

3.8
2
0
-2

6.6
4.8

1.1
FY18

2.6

0
FY19

4.3

-0.3
FY20

2.9

Recorded in the PL of the InfrastructureManagement segment

7.2

8
6

Planned value
10.7

FY22

• O＆M ※1
• EPC ※2
• development and otherbusiness etc.

Recorded in InfrastructureManagement segments

Operating profit ofconsolidated subsidiaries

4.3
2.0
2.3
0

FY21

Contribution to other segments

FY23（Forecast）（IFRS）• Revenue from renewableenergy sales• Gain on sale of developed
facilities related toinfrastructure operations• SPC consolidated profit
related to infrastructure
management
・Gain on sale of equity
interest in anonymous
association
・Non-consolidated SPC
stock dividends, etc.

※1 O&M Operation and maintenance associated with infrastructure maintenance and management※1 EPC Lump-sum contracting for design, procurement, construction work, etc. associated with infrastructure operation projects

25Infrastructure Management
インフラ運営9-1．Policy Trends：PPP/PFI Promote Action Plan（Revised 2023）has been released by the Cabinet OfficeRe-posting of FY23 1Q material••

Kishida Cabinet positions PPP/PFI as the core of new capitalism and announces new “Action plan”.
The Action Plan sets project size targets, priority areas, and an action plan to promote PPP/PFI. （Decided by the Council•

Strengthen efforts in the water sector, promote the introduction of water PPPs in water supply and seweragesystem , and promote gradual transition to concessions

for the Promotion of Private Finance Initiative under the PFI Law, announced by the PPP/PFI Promotion Office, Cabinet Office.）

Source：the Cabinet Office the Sumary of PPP/PFI Action Plan (Revised 2023)

26

Re-posting of FY23 1Q material

9-2．Water PPPInfrastructure Management
インフラ運営⚫ For water supply, industrial water supply, and sewage system, in the 10 years of the PPP/PFI Promotion Action Plan period (2022 2031),PPP/PFI method (management and renewal integrated system) for phased transition to concession will be introduced andexpanded as "Water PPP" together with public facility management projects.
［Requirements of management and renewal integrated system］①Long term contract（10 years in principle）②Performance Order ③Integrated management of maintenance and renewal ④Profit share⚫ The government will determine the target facilities based on the willingness of the private sector to participate in the proj ect, whileassuming that the pipelines will be included in the government support.
⚫ Bundling of water supply, industrial water, and sewage system is possible according to the needs of local governments and oth er entities.
⚫ In cooperation with related ministries and agencies, promote the development of the environment, including detailed scheme st udies andthe formulation of guidelines and templates through support for the formation of model projects.

Water PPP
Operating Projects(Concession)［ Level４］Long term contract(10～20 years)
Performance order

上流

O&M
RepairManagement and renewal integrated
systemNew［Level 3.5］

Multi-year・Multi-businessOutsourcing to private contractors［Level１～３］
Short term contract(about 3-5years)

Long term contract (10 years in principle) *1

Specification/Performance order

Performance order *2

O&M

O&M

RepairRepair【 In case of renewal implementation type 】

Renewal work

Renewal work

【In case of renewal support type】
Update Plan & CM

Operation Right（Mortgage）

Direct receipt of usage fees
Conprehensive：１（Miyagi Pref. 2022）（Hamamatsu 2018，
Susaki 2020，Miura 2023）
Industrial water：２（Kumamoto Pref. 2021，
Osaka 2022）
Sewage：３*1 After the period of management and renewal
integrated system, it transitions to operating projects.
*2 Ensure the original "performance ordering" where
the private sector makes its own decisions andassumes responsibility for the execution of the work.
For pipelines, as a transitional measure, it is possible
to start with specification orders and then shift toperformance orders in stages, starting with sections
where detailed surveys, renewals, etc. have been
conducted.

Water Supply：1,400 facilities
Sewage system：552 facilities
Industrial water：19

インフラ運営

10． Major Infrastructure Management Projects in Japan
POINT

✓

Solid track record in a variety of infrastructure services✓

Through comprehensive private contracting, we attempt to leverage the strength of private company toimplement efficient comprehensive management

PFI(Service Purchase Type)

Concession

6 projects

15 projects

Comprehensive private
contracting

12 projects（contract amount:3 billion yen per year）
PFI

Fire department（Morioka City）
PFI

PFI

School lunch center（Aomori City）

Elementary school（Higashine City）
PFI

Fire department（Higashiosaka City）

PFI

concession

Parking lot (bicycles, motorcycles)

Industrial water（Osaka city）（Minowa City）

PFI

PFI

Self-Defense Forces facilities※

CPC ※

New

（Kure City）

Parking lot（Kobe University）

concession

Sendai airport（MLIT）PFI

Pool（Kusatsu City）

CPC ※

CPC ※

Public facilities（Kounosu City）

Public facilities(Fujimino City)

School facilities（Wako City）

Public facilities（Fukutu City）
PFI

Exhibition center（Fukuoka City）

CPC ※Public facilities（Joso City）

Public facilities（Furukawa City）
CPC ※School faclilities
Public facilities（Higashimurayama City） （Kunitachi City）

PFI

CPC ※

Road
（Fuchu City）

CPC ※

New

PFI

PFI

school lunch center（Toyota City）

Refueling facilities（Kagoshima City）

PFI

concession

concession

concession

CPC ※concession

Toll road（Aichi）

Exhibition center（Aichi）

Arena（Aichi）

Public facilities（Izu City）

Sewage（Miura City）

Public facilities（Sakura City）
PFI

Compound facilities（Chiba City）

CPC ※

New

CPC ※

CPC ※

Compound facilities（Oita City）

School facilities（Miyazaki City）

New

CPC ※

PFI

Roadside station Water purification plant（Matsudo City）（Katori City）

PFI

Self-Defense Forces
facilities※（Iioka City）※ The two Self-Defense Forces facilities (Iioka Cityand Kure City) are regarded as one project28

Segment

Highlights

Building
Construction

Civil
Engineering

InfrastructureManagement

Road Civil
Engineering

Machinery

Others29

Road Civil Engineering

11．Net Sales, and Gross Profit (MAEDA ROAD Consolidated)• FY23 2Q• FY23 FY

Both sales and income increased YoY due to the estimated cost of materials and abundantconstruction work carried over from the previous year..
The full-year plan is expected to achieved by focusing on gross profit margin-oriented ordertaking activities in the construction business and appropriate price pass-through of manufacturing cost
fluctuations in the product sales business.

2Q

Full Year※(Billions of Yen)

150

(Billions of Yen)

Net sales

Gross profit

106.4

Gross profit margin_result

118.2

111.2

100
12.4%
9.6%

8.0%

8.9

300.0

20%

250.0

15%

14.7

0

5%
0%

FY21

FY22

FY23

235.6

Gross profit
Gross profit margin_result

25.0%

248.7

246.8
20.0%

200.0

15.0%

150.0

11.1%

100.0

10.3%

9.5%

50.0

24.3

25.6

10%

50
10.3

25%

Net sales
Gross profit margin_forecast

10.3%

10.0%

0.0
FY21

12.0%

FY22

29.7

5.0%

0.0%
FY23 (Forecast)*The figures are same as Maeda Road (consolidated) in the past, and consolidation eliminations within the INFRONEER Group are not taken into
account.

30

Road Civil Engineering

12．Orders Received, Net Sales, and Gross Profit (MAEDA ROAD Consolidated Construction business)• FY23 2Q• FY23 FY

Both sales and income increased year-on-year, reflecting the estimated price for higher
material costs and abundant carry-over construction work.
Aim to improve profitability through sales activities with an emphasis on gross profit
margin.
Orders Received ※1(Billions of Yen)

(Billions of Yen)
200.0

PrivatePublicOthers

100.0

150.0

2Q

100.0
50.0

86.3

90.4

5.4

6.1

7.2

70.3

76.2

78.5

79.7

FY21

Full Year

150.0

162.1
12.8

FY22

FY23

175.1

175.2

18.0

16.5

Gross profit

73.5

76.8

Gross profit margin_result
25%

81.7

20%
15%

8.2%

7.8%

6.0

6.0

11.2%

9.2

200.0

141.2

149.0

148.5

162.1

FY23 (Forecast)

0.0

5%

FY23

171.0

166.0

25.0%
20.0%

9.8%
9.2%
14.9

0.0

FY22

150.0

50.0

10%

0%

FY21

100.0

100.0
50.0

Net sales

0.0

0.0
200.0

50.0

Net sales and Gross profit※1

9.7%

11.1%

10.0%

8.6%
16.5

15.0%

18.4

5.0%
0.0%

FY21
FY22
FY23 (Forecast)*1 The figures are same as MAEDA ROAD (consolidated) in the past, and consolidation eliminations within the INFRONEER Group are not taken into account.
*2 Others: Orders received from affiliated companies (mainly government works) and eliminations within segment transactions.

FY21

FY22

31

Road Civil Engineering

13．Net Sales and Gross Profit (MAEDA ROAD Consolidated Manufacturing and Sales Business)• FY23 2Q• FY23 FY

Both sales and income increased YoY due to the price pass-throughimplemented in the previous quarter.
Ensure stable profit margins by setting appropriate selling prices on a case-by-casebasis.
2Q※2

Net sales

Gross profit

Full Year※

Gross profit margin_result(Billions of Yen)
30%
40.0

34.2

32.6

25%

36.2

20%
14.8%

20.0

2.8

5.3

0.0

80.0

60.0

15%

5%
0%

FY21

Gross profit margin_forecast

Gross profit margin_result

25%
80.8

77.1

72.9

20%

14.4%
11.6%
12.6%

15%
14.0%
10%

11.5%

10%
8.2%

4.1

Gross profit(Billions of Yen)
100.0

40.0

12.6%

Net sales

FY22

FY23

20.0

9.2

8.9

0.0
FY21

FY22

11.3

5%

0%
FY23 (Forecast)*The figures are same as Maeda Road (consolidated) in the past, and consolidation eliminations within the INFRONEER Group are nottaken into account.

32

Segment

Highlights

Building
Construction

Civil
Engineering

InfrastructureManagement

Road Civil
Engineering

Machinery

Others33

Machinery

14．Net Sales and Gross Profit MAEDA SEISAKUSHO (Consolidated)• FY23 2Q

Net sales and Gross profits increased YoY due to firm sales of Industrial
machinery, and revision of sales prices, etc.
• FY23 FY Both Net sales and Gross profit are expected to achieve the full-year plan.

2Q

Full Year(Billions of Yen)

(Billions of Yen)

Net sales

Gross profit

Gross profit margin_result

25% 48.0

25.0

19.6%

20.0

15.0

19.6%

20.5%
20%

20.2

10.0

10%

3.3

3.4

4.1

0.0

FY21

Gross profit margin_forecast

Gross profit margin_result
25%

20.9%

20.3%

21.0%
(1Q 20.5%)

20%

19.8%

19.8%
15%

15%
24.0

5.0

Gross profit

40.0
32.0

17.4

16.8

Net sales

FY22

FY23

40.4
(1Q 40.0)

39.5

37.1

10%

16.0

5%

8.0

0%

0.0

7.4

7.8

8.5

5%

(1Q 8.2)
0%
FY21

FY22

FY23(Forecast)34

Machinery

15．Net Sales and Gross Profit※1 MAEDA SEISAKUSHO (Consolidated)• FY23 2Q

Net sales and Gross profit in the industrial machinery and steel products are increased
YoY because of firm sales of industrial machinery (Spider crane). Gross profit
margin also improved due to revision of sales prices, etc.
• FY23 FY Given the current order situation, full-year results are expected to achieve the plan.
Construction Machinery※2(Billions of Yen)

(Billions of Yen)
15.0

2Q

10.0

5.0

25%
16.6%
16.7%

10.9
1.8

1.7

14.6%

25.0

15%
10%

1.7

0.0
FY22

FY23

25%

Full Year

20.0

18.0%

17.4%

16.8%

20%

15.0

17.2%

16.1%

(1Q 16.3%)

15%

10.0
5.0

23.8

23.7
4.1

3.8

23.2
(1Q 22.9)
3.9(1Q 3.7)

0.0

FY21

FY22

25%

10%

FY23(Forecast)

15.6%

4.0

4.8

5.7
0.9

0.9

15.0

7.5
1.8

10%
5%
0%

FY21

FY22

20.3%

21.1%

18.8%

10.0

5.0

20%
15%

0.0

5%

0%

24.0%

18.4%

5%
0%

FY21

8.0

20%

11.6

10.5

Industrial machinery &Steel Products※3

11.2

19.7%

21.7%

25%

(1Q 21.0%)

20%

14.8
(1Q 14.6)

13.6

2.1

FY23

2.9

3.2

(1Q 31)

0.0

15%
10%
5%
0%

FY21

FY22

(Forecast)
FY23*1 The figures are only construction machinery, industrial machinery and steel products, etc. which are the main businesses in the Machinery segment.
*2 Mainly sales, service and rental of Komatsu Ltd. products.
*3 Mainly design, manufacturing and sales of own products such as cranes.
35

Machinery

16．Topics：Market introduction of attractive products for sustainable forest
development and wood utilization
POINT

Dedicated Forestry Forwarder Contributes to Lumber Gathering andForest Renewal Operations to achieve Carbon Neutrality

Function of the Forest

Issues in the Forestry Sector

Forests absorb and fix CO2 and can store
carbon for a long time by using it as wood forbuildings and other structures.

・Productivity ・Safety
・Aging and decline of forestry workers

etc.

Approach as a machine manufacturer
Mechanization supports harsh forestry sites. As a first step, we introduced to the market a "hydrauliclumber collector" that stretches wires through the forest to carry away trees. Launched "Forwarder," atraveling lumber collection machine, in September 2023.
Newly launched in September 2023

Forwarder FC560S✓ It is useful for transporting
timber harvested in forests
where trucks cannot enter.
✓ Designed for operator safety
and comfort in harsh forest
work.

36

Appendix37

Re-posting of FY23 1Q material

IFRS Transition Schedule and Major Changes Due to the Transition
Accounting Standards
applied

FY23
1Q

2Q

Consolidated
Performance (Forecast)
Consolidated
Performance

3Q

After FY24

4Q

JGAAP／IFRS
JGAAP

IFRS

IFRS※

※Cumulative total for 1Q~4Q is disclosed at the time of 4Q results.
(Billions of yen)

Key changes resulting from the transition to IFRS

1.

Accounting treatment of goodwill
JGAAP Amortization of goodwill
IFRS
No amortization of goodwill

Goodwill
amortization（annual）

～FY22

FY23～

JGAAP

IFRS
6.6

0.0

Decrease JPY 6.6 billion in SG&A on P/L on an annual basis.

Goodwill amortization will be eliminated from FY23, and SG&A will be reduced by JPY 6.6 billion
on P/L. ※JPY 1.7 billion in depreciation of machinery arising from M&A remains.

2. Depreciation expense of tangible fixed assets
The depreciation method will be changed from declining balance method to straight-line
method. The assets that have already been acquired and were depreciated using the decliningbalance method will be retrospectively depreciated using the straight-line method for past fiscal
years. The impact on our P/L is expected to be limited.
3. Investment Securities
Under JGAAP, gains or losses on sales are recorded in P/L, whereas under IFRS, gains or losses
on sales are not recorded in P/L .
※ If Recognition of valuation differences in ‘comprehensive income (FVOCI)' is selected.

38

Maeda Corp.

[Non-Consolidated] Maeda Corp. FY23 1Q Results and FY23 Full-Year Forecast(Billions of Yen)
FY22 2Q Results

FY22 2Q Results

FY23 Forecast

FY23 Revised（JGAAP）（JGAAP）（JGAAP）（JGAAP）

163.1

190.1

27.0

401.7

425.7

44.7%

Total

87.3

106.8

19.5

238.5

258.3

41.3%

Domestic

87.1

106.6

19.5

235.0

255.9

41.7%

Overseas

0.2

0.2

0.0

3.5

2.4

7.7%

Total

67.8

82.5

14.7

155.0

165.0

50.0%

Domestic

67.9

82.3

14.4

154.6

164.4

50.0%

Overseas

-0.1

0.3

0.3

0.4

0.6

45.2%

Infrastructure Management

7.0

0.0

△ 7.0

6.7

0.7

0.2%

Real Estate

1.0

0.8

△ 0.2

1.5

1.7

47.7%

Gross Profit

27.5
7.0
7.0
0.0
13.1
12.1
0.9
7.0
0.5
14.2
13.3
15.5
14.5

30.7
(16.1%)
6.6(6.2%)
6.6(6.2%)
0.0 (13.0%)
23.8 (28.8%)
23.7 (28.9%)
0.0―-0.0 -(245.2%)
0.3 (36.3%)
16.1(8.5%)
14.5(7.6%)
16.3(8.6%)
11.5(6.1%)

3.2
△ 0.3
△ 0.3
△ 0.0
10.7
11.6
△ 0.9
△ 7.0
△ 0.2
1.9
1.2
0.8
△ 3.0

59.7 (14.9%)
25.3 (10.6%)
25.0 (10.6%)
0.3(7.1%)
27.0 (17.4%)
27.1 (17.5%)-0.1 -(16.7%)
6.7 (100.0%)
0.8 (50.0%)
33.0(8.2%)
26.7(6.6%)
28.6(7.1%)
22.5(5.6%)

64.7 (15.2%)
24.3(9.4%)
24.1(9.4%)
0.2(8.3%)
39.0 (23.6%)
39.0 (23.7%)
0.0(0.0%)
0.7 (100.0%)
0.7 (41.2%)
33.6(8.4%)
31.1(7.7%)
33.1(8.2%)
25.3(6.3%)

47.4%
27.3%
27.4%
11.9%
60.9%
60.9%
ー
-0.5%
42.1%
48.1%
46.7%
49.3%
45.5%

Net Sales
Bulding
Construction
Civil
Engineering

Bulding
Construction
Civil
Engineering

Total
Domestic
Overseas
Total
Domestic
Overseas

Infrastructure management
Real Estate
SG＆A
Operating profit
Ordinary profit
Net income(16.9%)(8.0%)(8.0%)―(19.2%)(17.8%)―(99.9%)(47.4%)(8.7%)(8.1%)(9.5%)(8.9%)

YoY

Progress

39

MAEDA ROAD

[Consolidated] MAEDA ROAD FY23 2Q Results and FY23 Full-Year Forecast(Billions of Yen)
FY22 2Q Results

FY23 2Q Results

FY23 Forecast(JGAAP)(JGAAP)

Net sales

111.2

118.2

7.0

246.8

47.9%

Construction Business

76.8

81.7

4.9

166.0

49.2%

Manufacturing and Sales Business

34.2

36.2

2.1

80.8

44.8%

Others

0.3

0.3

0.0

ー

ー

Gross profit

8.9(8.0%)

14.7(12.4%)

5.8

29.7(12.0%)

49.4%

Construction Business

6.0(7.8%)

9.2(11.2%)

3.2

18.4(11.1%)

49.9%

Manufacturing and Sales Business

2.8(8.2%)

5.3(14.8%)

2.6

11.3(14.0%)

47.3%

Others0.1(41.1%)

0.1(42.2%)

0.0

ー

ー

ー

SG&A

6.8

(6.1%)

7.4(6.2%)

0.6

15.7(6.4%)

46.9%

Operating profit

2.1(1.9%)

7.3(6.2%)

5.2

14.0(5.7%)

52.1%

Ordinary profit

2.6(2.3%)

7.5(6.3%)

4.9

14.0(5.7%)

53.4%

Net income

1.6(1.4%)

5.2(4.4%)

3.6

9.2(3.7%)

56.3%

YoY

Progress(JGAPP)

40

MAEDA SEISAKUSHO[Consolidated] MAEDA SEISAKUSHOFY23 2Q Results and FY23 Full-Year Forecast(Billions of Yen)

FY22 2Q Results FY23 2Q Results

YoY

FY23 Forecast

FY23 Revised(JGAPP)(JGAPP)

Progress(JGAAP)(JGAAP)

Net sales

17.4

20.2

2.8

40.0

40.4

50.0%

Construction Machinery

10.5

11.6

1.1

22.9

23.1

50.2%

Industrial Machinery and Steel Products

5.7

7.5

1.8

14.6

14.8

50.6%

Care products and Others

1.1

1.1

0.0

2.4

2.4

45.5%

Gross profit

3.4(19.6%)

4.1(20.5%)

0.7

8.2(20.5%)

8.5(21.0%)

48.7%

Construction machinery

1.7(16.6%)

1.7(14.6%)

△ 0.1

3.7

(16.3%)

3.9(16.9%)

43.4%

Industrial Machinery and Steel Products

0.9(15.6%)

1.8(24.0%)

0.9

3.1(21.0%)

3.2(21.7%)

56.0%

Care products and others

0.8(70.7%)

0.6(58.8%)

△ 0.1

1.4

(57.3%)

1.4(57.3%)

46.6%

SG&A

2.8

(16.3%)

3.0(15.0%)

0.2

6.4(16.0%)

6.6(16.3%)

45.9%

Operating profit

0.6(3.4%)

1.1(5.5%)

0.5

1.8(4.5%)

1.9(4.7%)

58.3%

Ordinary profit

0.7(3.8%)

1.2(6.1%)

0.6

1.9(4.8%)

2.0(5.0%)

61.3%

Net income

0.4(2.4%)

0.9(4.5%)

0.5

1.3(3.3%)

1.4(3.5%)

63.3%

41

INFRONEER Group’s FY23 2Q Results and FY23 Full-Year Forecast(Millions of Yen)

FBS
Consolidated
Subsidiaries

Fujimi Koken

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

FY23
Revision

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

JM
FY23
Revision

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

Net sales

810.6

680.4

1808.01530.0

405.6

600.1

1284.51274.6

Operating profit

25.8

0.8

50.0

13.0

8.7

19.2

26.0

29.4

0.5

10.8

Ordinary profit

26.4

1.8

51.3

14.5

11.3

24.2

28.1

34.3

0.5

12.8

No
62.0 Revision

Net income

19.5

1.5

30.8

9.0

29.8

24.2

21.6

26.2

0.0

9.4

34.2

Aichi Road Concession
Consolidated
Subsidiaries

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

FY23
Revision

920.3 1150.5

FY23
Revision

2300.060.0

Miotsukushi Industrial Concession

Miura City Public Sewerage Concession

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

FY23
Revision

FY23
Revision

Net sales

715.1

751.3

1585.71499.5

68.6

71.9

134.1

ー

9.8

19.7

Operating profit

130.6

63.1

243.3

152.8

12.6

13.1

5.3

ー

2.8

2.2

Ordinary profit

70.0

5.0

128.7

38.0

11.9

12.5

No
Revision
4.1

ー

2.5

No
Revision
1.1

Net income

63.9

3.2

117.9

33.0

7.2

8.2

2.7

ー

1.7

.8

Toyo Construction
Equity Method
Affiliates

Net sales

FY22
FY23
FY23
2Q
2Q
Forecast
Results Results

6450.3 7827.9

Operating profit

247.7

325.3

Ordinary profit

242.6

Net income

171.4

Hikarigaoka Corporation
FY23
Revision

FY22
FY23
FY23
FY23
2Q
2Q
Forecast Revision
Results Results

16850.0

192.2

192.6

373.0

385.0

860.0

31.4

39.1

53.0

56.0

289.5

No
840.0 Revision

138.1

184.7

265.0

268.0

196.5

560.0

102.0

148.8

184.6

198.0

42

Integrated Report 2023 -Making Steady Progress as an Integrated Infrastructure Service
Company-

We have issued our Integrated Report -Making Steady Progress as an Integrated
Infrastructure Service Company（Issued on 2023 Sep 21）

POINT✓ President and CEO Kibe discusses Infroneer’s current
position and future outlook✓ Infroneer’s concepts and commitments to solve social

Contents【Chapter1】 Value Creation Story【Chapter2】 Top Message

issues regarding infrastructure and the future realized
by them are expressed in Value Creation Story✓ Presidents of the three business companies discuss the【Chapter3】 Business Models【Chapter4】 Growth Strategy

creation of synergy through group collaboration in
the roundtable discussion session✓ All external directors made proposals on the issues【Chapter5】 Sustainability【Chapter6】 Corporate Dateand points for further improvement of corporate value.

Integrated Report (WEB version) is available
online. Proceed from the QR code or thelink below to download.
https://www.infroneer.com/jp/sustainability/integrated_report/

43

Comprehensive Partnership Agreement Signed Aiming to Enhance the Value of the
Town Famous for its Ceramics
We have signed “Comprehensive Partnership Agreement to Improve the New
National Wealth Index of Arita Town Applying ESG Analysis”
Overview：Arita Town in Saga Prefecture is famous for its traditional Japanese ceramics, "Arita-yaki“. However, CO₂ emissions from thepottery industry has been a major issue. In response to this challenge, we aim to enhance the overall value of Arita Town
by practicing ESG management through quantifying and verifying the increased value of human capital, natural capital,
and artificial capital in the town. Furthermore, the sustainable development of Arita Town will also contribute toestablishing an advantage in the intensifying "competition among local governments" in recent years.
On October 18 2023, the comprehensive
partnership agreement was signed by thefour parties at the community hall of Arita
Town Hall（from the left）■Makoto Otsukeno, Maeda Corporation
Managing Executive Officer (on behalf ofInfroneer President and CEO)■Yoshiaki Matsuo, Mayor of Arita Town
■Managi Shunsuke, Director of Kyushu
University Urban Institute■Shimokawa Hiroshi, Managing Directorof Acroterion

Roles

※1
※2

Arita Town
Add values on health, education and arts
Visualizing the initiatives of the local businesses towards
achieving the SDGs
Kyushu University Urban InstitutePromoting NCCC※1
Undertaking verification with aiESG※2（ESG analysis service）
Infroneer Holdings
Promoting public private partnership in infrastructure area
Promoting efficiency and advancement in public services
Acroterion
Administrative office

Natural Capital Credit Consortium https://nccc.earth/https://aiesg.co.jp/

Human
Capital

Implementation of
ESG Managementin Local Governments

Artificial

NaturalCapitalCapitalIndustry, government, and academia
collaborating and cooperating with each other44

Re-posting of FY23 1Q material

Allocation of the Segments

Segment of INFRONEER Holdings（JGAAP）
Building
Construction

MK Building Construction
MK Real Estate (Building Construction)

Civil Engineering

MK Civil Engineering
MK Real Estate (Civil Engineering)

Road Civil Engineering

MD (Consolidated)

Machinery

MS (Consolidated)

InfrastructureManagement

MK Infrastructure Operations
Aichi Road Concession
Anonymous association of Aichi Road Concession
Miotsukushi Indutrial Water Concession

OthersJM
Thai Maeda Corporation Limited
FBS
Fujimi Koken

45

Re-posting of FY22 3Q material

Infrastructure Management

Business Model of Infrastructure Management Business• Infrastructure operations is business that gain profits on every steps from upstream todownstream of infrastructure management.

⑤Sale(+α) Fund, AM→Profit on sale→

Dividend, AM Fee

Value up!!

④O&M
③EPC
②Investment① Development→O&M fee→Construction revenue

Sale of Happo
Windfarms Projectto Infrastructure
Fund (Details p.48)→Dividend→Profit on development• Profits can be obtained from 5 stages of infrastructure operations• We can capitalize our know-how of construction in development, EPC andO&M stages.
46

Re-posting of FY22 3Q material

InfrastructureManagement
Infrastructure
Operations

Establishment of New Business Platform of Infrastructure Operations• We built a new business platform including two types of infrastructure funds, the Asset Creation Fund
Series(“ACF”) and the Income Fund Series (“ICF”) with TOKYU CORPORATION, Global Infrastructure Management(INFRONEER and TOKYU each own 50% of the company) , Sumitomo Mitsui Finance and Leasing Company,
Limited（SMFL）, and Mitsubishi UFJ Trust and Banking.
• We aim to further develop business and promote the development of the domestic infrastructure capital market
in infrastructure business areas that have been attracting attention in recent years, such as PPP and environmental
energy fields.

＜ACF Fund＞
Business Area 1 ：＜ICF Fund＞

Commercialization and deal making ofdomestic infrastructure businessBusiness Area 2

Domestic infrastructure capital market<fund management needs of institutional investors in infrastructure business area>
LP investment

MUTB

cooperation

TOKYU

INFRONEER

Commercialization andfinancial contribution

GP investment

GP investment Operational
Opportunities

investment
Commercialization

・Obtaining stable cash flow
・Ability of fund managers and operators to operate and increase thevalue of their businesses
・Appropriate governance and compliance

Required funds

Financial
contribution<Demand for deal making & financing in infrastructure business>

・Flexible and mobile financing needs（such as developing,
publicly solicited and tendered project）
・Opportunities that require time to commercialize and stabilize
cash flow
・Opportunities that require assistance in developing rules andschemes

LP investment

MUTB
Other institutional
investors<financing needs from in infrastructure project personnel and owners>
・Business continuity, operational capacity and responsibility
・Peace of mind and stable long-term holdings
・Ability to provide funding and cost of capital

From the press release dated July 5,2022 『Establishment of a New Infrastructure Business Platform』

47

Re-posting of FY22 3Q material

InfrastructureManagement
Infrastructure
OperationsFirst Investment Case of the Income Fund（ICF）•

Global Infrastructure Management and SMFL MIRAI Partners Company, Limited formed
Income Fund (ICF), an infrastructure fund that invests in infrastructure projects, etc. incollaboration with domestic institutional investors.

•

It invests Happo Windfarm Project as the first investment project.

LP investment

GP investment

ICF

インフラ・ファンド
Income Fundinvestment

Other institutional
investors

sale
Jun.2022

Happo Windfarms Project
Happo
Happo
Town

Town

Akita
Akita
Pref.Pref.

48

Re-posting of FY23 1Q material

Infrastructure Management
インフラ運営

Differences between “Contribution to profit” and “Segment profit”• ”Contribution to profit” is the actual contribution for managerial accounting purposes, which is the sum of construction Gross profit,
other income, and operating income of individual consolidated subsidiaries. This is in consideration of the fact that the profit
presentation points on the consolidated basis differ depending on the investment ratio and sale scheme.
• “Segment profit (Infrastructure management)" in the consolidated financial statements is operating profit for financial accounting
purposes after eliminating construction profit and other items included in contribution to profit and common administrative expenses,
but before non-operating/extraordinary items.

Correspondence tosegment profit）

Gross profit on
construction of Aichi
Road Concession/Happo Wind Power(Financial Accounting Arrangements)
consolidation elimination ＊Construction profit of Maeda Corp. isunrealized profit in proportion to its（recorded in otherinvestment ratio. Profit will be recognized
segments）
over time at the time of operation and sale.

Segment Profit(Infrastructure Management)(financial accounting)Contribution to profit managerial accounting（

個別業績貢献Contribution to other（他セグメント計上）
segments• O＆M /development(O＆M/EPC• EPC
andother business etc.)• 開発等事業 等(Project Examples）

・Aichi Road Concession
・Miotsukushi Industrial Water
Operating profit ofConcession
Operating profit ofconsolidated subsidiaries
consolidated subsidiaries ・Ozu Biomass(Consolidated profit of SPCs
(Consolidated profit of SPCs
＊Investment profit (investment in
on infrastructure
on infrastructure（インフラ運営に係る
anonymous association, equity, etc.) frommanagement)
management)
Maeda Corp. to consolidated subsidiaries is
SPC連結利益）

連結子会社の営業利益

not included in the contribution to profit
because it overlaps with operating profit.

Other profit
その他収益(profit on sales/Non（売却益、非連結
consolidated SPC stock
dividends, etc.)
SPC株式配当等）

Other profit
Profit on sale of equity interest(Profit on sales of anonymousin anonymous association inassociation)
Happo Wind Power△SG&A

stock dividend of
SIAC/AICEC

Non-operating income/loss ＊Deduct common expenses, etc. of Maeda's head office(Equity method investment ＊Net income of affiliated companies
gain)

Profit on sale of equity
interest in Kai Solar LCC

Extraordinary income/loss stocks or power generation equipment (It depends(Profit on sales of fixed assets) on the development process and buyer preferences）※Contribution to profit does not take into account SG&A such ascommon expenses at the Maeda head office.

＊When the subject of the sale is a fixed asset such as

49

News１

We were featured on the YouTube channel"Mariko Mabuchi's Stock Club" again, just like last November!

【Listed Company】
Changing the World with Infrastructure , Infrastructure
Changes the World.
-Interview with the President of INFRONEER HD !Our president, Kibe , had a discussion with economic
analyst Mariko Mabuchi. They delved into theachievements and strategies of our company a year and aYouTubehalf after its establishment from Mabuchi's keen
perspective . Please take a look !
YouTube URL ：https://www.youtube.com/watch?v=ZdTEcZUo0uU

News 2

INFRONEER Holdings
Official Facebook & Instagram

We are sending out information via SNS withdesire to let many people know about
INFRONEER HD. takes on the challenge of the
future of infrastructure.
Please follow and like! on our Facebook andInstagram pages!

Facebook

Instagram

Facebook : https://www.facebook.com/infroneer.hd/
Instagram : https://www.instagram.com/infroneer.hd/

News 3Kibe-log～Back number～

In order to inform all stakeholders about what
INFRONEER HD. is thinking and what kind ofsociety it aims to achieve, President Kibe willcommunicate what he is thinking.
Kibe-log

Vol.5 : Non-recourse loans that are not true non-recourse loans hinder
infrastructure investment
Vol.6 : The challenge of a Ghana toll road concession
Vol.7 : INFRONEER’S VIEW OF ”DX”
Vol.8 : The “Availability Payment Method” is needed for infrastructure in Japan
Vol.9 : The Digital World INFRONEER aims to create
Vol.10 : Challenging corporate culture

Kibe-log ：https://www.infroneer.com/topics/tag/16.html

【Disclaimer】• This financial presentation document is made in Japanese and translated in English. Any texts, figuresand descriptions etc. in Japanese document is the original and the English document is for reference
purposes. If there is any conflict or inconsistency between these two documents, the Japanese
documents shall prevail.
• The figures in this document are based on Financial results on Nov 10, 2023, and rounded to the
Nearest 100 million yen.
• All financial information has been prepared in accordance with generally accepted accounting principal
In Japan.
• While every attempt has been made to accuracy of information, forecast contained in this documents
Are based on the judgements made with information available as on Nov 10, 2023, and are subject torisks and uncertainties that may cause the actual results to vary.

インフラの未来に挑む
Challenge the status quo