Integrated
ReportIntegrated Report 2022

Safety, Security, and Sustainability of
Our Society and Local Communities
INFRONEER Holdings Inc.

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

INFRONEER's Challenges

Challenge the status quo

Challenge the status quo
INFRONEER Holdings will continue to be Japan's first integrated
infrastructure service company to solve social issues relating to
infrastructures and infrastructure services.

01

Happiness exists naturally. Today, that happiness is in peril.
This issue is related to the existing infrastructure in many
regions, a declining birthrate and an aging population, adiminishing workforce, and a declining industry. As local
finances grow increasingly strict, it is no longer easy formunicipalities alone to maintain their aging infrastructures andpublic service. Damage to the safety and comfort of ourinfrastructure is a vicious circle that reduces the attractivenessof a region and the value of living there. INFRONEER Holdings
is an integrated infrastructure service company created toreverse such a negative spiral.
INFRONEER Holdings breaks down established market
concepts with free ideas that cannot be captured using the

production and building methods that have been applied until now. It
is implementing changes in the rules by, for example, building
infrastructure services that bring together public and private entities. It
reduces excessive construction costs and reviews revenues andoperating models. INFRONEER Holdings will continue to increase andprotect the value of our infrastructure as a sustainable solution. It aims
to create a society in which the government, region and people wholive there can choose the optimal infrastructure services for the era inwhich they live. We are INFRONEER Holdings, a pioneer ininfrastructures. We bring together the technological capabilities of theJapanese concept of monozukuri (manufacturing), which has beendeveloped for over a century, and diverse partnerships from acrossindustries. (Source: The INFRONEER brand story)

Yasuhiko Imaizumi

Kazunari Kibe

Soji Maeda

Masaaki Shioiri

President and CEO
MAEDA ROAD CONSTRUCTION Co., Ltd.

Director, Representative Executive Officer,
President, and CEO
INFRONEER Holdings Inc.

President and Representative Director
MAEDA CORPORATION

President and Representative Director
MAEDA SEISAKUSHO CO., LTD.

INFRONEER Holdings Inc.

02

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Social Issues Surrounding Infrastructures and Their Solutions

Infrastructure stockin Japan

800 trillion

Approx. ¥Current Status of Japan's Infrastructure

Status of the Infrastructure Japan is Facing

Insufficient financial resources

Due to decreasing tax revenues and increasing social security-related expenses caused by Japan's
declining birthrate, aging population, and a decreasing population, the finances of the government
and local governments are becoming increasingly stressed. Conversely, an enormous number of
infrastructures that were setup during the period of high economic growth is reaching a time for amajor renewal; the maintenance and renewal costs are expected to increase dramatically in the
future. Against a backdrop, the shortage of infrastructure industry workers is also becoming
increasingly acute. If we continue on the path and continue to use the methodology we’ve relied upon
up to now, it will be difficult to maintain even the current level of infrastructure services. Disruptions
could begin to affect people's lives. Furthermore, Japan is a major energy consumer and importer;
the impact of the global situation on our industries and lives is incalculable.

Construction investment
rates in gross domestic
expenditures

Maintenance and repair
work rates in construction
investments

in 2020

in 2020- 8.5 %

+ 8.8 %FY2020: 11.4%
FY1980: 19.9%

2020: 11.4%
1980: 19.9%

Maintenance and upgrading
expenses incurred throughcorrective maintenance
until 2048

12.3 trillion

Approx. ¥Aging infrastructure

Percentage of roadbridges that are 50 years
old or older

Percentage of port
quay walls that are 50
years old or older

Percentage of tunnels
that are 50 years old
or olderPercentage of sewer
pipes that are 50 years
old or older

by 2033

by 2033

by 2033

by 2033

Approx.

63 %Approx.

58 %Approx.

42 %in 2048

Approx.

28.95 million people

Peak (2008): 128.808 million
peopleNumber of cities thatis feared to disappear
by FY2040

896 municipalities

Average temperaturerise

Frequency of heavy
rainfall per year

in 2030 compared tobefore industrial revolution

in 2012-2021 compared
to 1976-1985

Approx.

Japan's percentage ofelectricity generated
by renewable energy
in FY2019in 2020

1.43 million people
Peak (FY1997): 4.64 million people

03

in 2019

18 %

Worst

Japanese government target by
FY2030 36 to 38%

1.4 times

Municipalities that
require measures forpeople who havetrouble going shopping

1,043 municipalities

Rate of construction
workers aged 55 andover in 2020
Aging rate of workers

36 %Social Issues Requiring Attention in Japan

By accelerating our renewal and optimization of our infrastructure for which Japan has greatly fallen
behind, we will provide services that lead to our overall safety and security, and to the development of
the local economies and society. Furthermore, we will contribute to the optimization of infrastructureservices worldwide by exporting Japanese technologies and know-how developed in Japan.

2ndSelf-sufficiency rate: 12.1%

Vacant home rate
in 2018

13.6 %

in 2021

Challenges Our Company Will Address

In order rapidly to promote and to resolve the social issues described above, we will take the lead,continuously pursue and provide added value, improve corporate value, and contribute to society as awhole in a lasting manner.

8,489,000 vacant homes

Diversity

Shortage of workers

Reduced number of skilledconstruction laborers fromthe peak period

Energy self-sufficiency
among the 36 countries of
the OECD member countries

Safe towns and easy living

Abnormal weather+ 2.7 °C

21 %EnergyDeclining birthrate and aging population and regional challenges

Total population decline
from peak period

Approx.

Ratio of female workers
Ratio of females inin construction compared
managerial position in theto the entire industry
construction industry
in 2020

1/3

Compared to 44.5% in the entire
industry, construction is 16.7% (ofthat, skilled workers are 2.4%)

in 2020

2.7 %[Source: Some of the data was calculated by our company based on source data]
Current Status and Future of Aging Social Capital—Infrastructure Maintenance Information published by the Ministry of Land, Infrastructure and Transport and Tourism (https://www.mlit.go.jp/en/index.html)
Construction Industry Handbook 2021 (Japan Federation of Construction Contractors)
Statistics Bureau of Japan "Population Estimate," Japan Policy Council "Cities at Risk of Disappearing," Japan Meteorological Agency "Climate Change in Japan," Ministry of Economy, Trade and Industry "Support for Measures for People Who Cannot Go Shopping""Future National Land Transport Strategies With a View to 'The Age of Disappearing Regions,'" a theme of the "Study Session for Policy Issues" held by the Policy Research Institute for Land, Infrastructure, Transport and Tourism (https://www.mlit.go.jp/en/index.html), FY2014 Materials
Renewable Energy | Japan's Energy 2020 Edition "10 questions for understanding the current energy situation" | Public Relations Brochure | Agency for Natural Resources and Energy (https://www.mlit.go.jp/en/index.html)

Solutions to Issues

In addition to maximizing the strength and utilization of conventional technologies and know-how, we will
implement radical reforms of our methods and systems, such as increasing the longevity, aggregation,and complexity of our facilities, expanding PPP/PFI businesses, developing a renewable energy business,
introducing the latest technologies, and increasing efficiency through DX and many others.
Stable Supply | Japan's Energy 2021 Edition "10 questions for understanding the current energy situation" | Public Relations Brochure | Agency for Natural Resources and Energy (https://www.mlit.go.jp/en/index.html)
Regarding the publication of the results of the National Municipal Questionnaire on "Food Access Problems" in FY2021
Changes to date (extreme phenomena) such as heavy rains and intensely hot weather (Japan Meteorological Agency) (https://www.jma.go.jp/jma/indexe.html)
Action Programs Toward Promoting Women in the Workplace, 3rd Edition, published August 2022 (Fund for Construction Industry Promotion)
INFRONEER Holdings Inc.
Executive Summary of Emissions Gap Report 2021: The Heat Is On—A World of Climate Promises Not Yet Delivered released by The United Nations Environment Programme (UNEP)

04

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

VISION: "A world where there's no limit to what can be asked fromand what can be delivered by infrastructure services."
INFRONEER support the infrastructure that underpins our everyday lives. If something happens, even though it is something with whichFirst Step

we are quite familiar, it can lead to severe damages and have widespread effects. We take it quite for granted when it is safe andSeawall maintenancemaintains quality. However, its significance and image are difficult to grasp. Such infrastructure is our business area.
The future we aim for is "a world where there's no limit to what can be asked from and what can be delivered by infrastructureservices." This is not achieved in a short period of time by an individual, a business, a company, a municipality, or even an entire country.
On the other hand, an infrastructure is not only new construction, but its maintenance, operation and even renewal are in a difficult

River/coastal embankments(disaster recovery)

Water and sewer equipment

Second Step

Water and sewage concession• Osaka City industrial water Page 86• Miura City public sewer Page 86

Projects for building
national resilience• Hamamatsu seawall Page 58, Page 74• Yamasubaru power plant dam Page 74

state, and it is beginning to have a direct effect on our normal lives. It is for that reason that we have taken a step forward together withour collaborative innovation partners to accelerate that by gathering the technical capabilities and know-how cultivated for over a century
and shifting to a holding company structure.
In addition to showing the future that INFRONEER is aiming for in this integrated report, we hope that with the empathy of more people,
we will work together to solve those issues.

Transportation(roads, airports and railways)

Transportation concession

Tunnels• Aichi Prefecture toll road Page 83• Sendai International Airport1

Bridges

Transportation

Arena concession

Roads and Airports

Renewable
EnergyWaterworks

Super city

Production, research andlogistics facilities?

Know-how in
Financial power

Hotels and lodging facilities• Vision Hotels page 78

Engineering capabilities

Arena/
Exhibition
VenuesCommercial, sports and leisurefacilities• Aichi Arena Page 78• Aichi Sky Expo2

infrastructure
operations

Special construction andre-development projects• Redevelopment of the westernarea of Harumi 5-chome Page 78• New government building,
Educational and cultural facilities Yatsushiro City, Kumamoto
Prefecture3• Tenjin Business Center Page 67

Comprehensive
management work
Condominiums andhousing complexes• Konosu City Page 91• Joso City

OfficesComprehensive roadmanagement work

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

A world where there's no limit to what can be asked fromand what can be delivered by infrastructure services

Next

For example, you
can sense how
families are livingfrom the amount ofwater they use.
For example, you
can get a one-stop
transportation
service even when
you go to places you
have never visited
before.
For example, yourcheers move thegame without
missing any special
plays.

For example, process
management and worker
health management leadto a safe work site andpeace of mind for thefamily.

For example, draw
future living fromspatial data and 3D
technology to build acomfortable city.

• Fuchu City Page 81

Partnerships

Regional networks

Finances

DX(Digital Transformation)

Energy and waste related
facilities
Machinery
Mountains and forests

Urban
Regeneration
andConservation

MarineDecarbonization projects(Renewable energy and others)• Wood biomass power generation
Page 86• Solar-power generation (Tsukuba)• Multi-axis machining Page 94

For example, grasp
the state of theforest environment,
and achieve a worldthat recycles.

INFRONEER Vision Movie
https://youtu.be/QJEUulL_6vM

1. Sendai International Airport https://www.sendai-airport.co.jp/en/

05

2. Aichi Sky Expo https://www.aichiskyexpo.com/?lang=en

3. Let's build with wood. https://kidetatetemiyou.com/projects/

INFRONEER Holdings Inc.

06

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Editing Policy
All Our Initiatives Will Lead to Solving Social Issues and Improving Corporate Value
We regard this integrated report as an important communication tool between us and our stakeholders, as well as facilitating
communications among such stakeholders. Through this integrated report, we hope that readers will understand our continuing value

Page 03[Introduction]

Current status of Japan's infrastructure and issues

Issue Awareness & Vision

creation process and the values that we offer to communities and to society. We aim to improve social value and corporate value throughclose engagement with our stakeholders. Specifically, we aim to gain the understanding and empathy of all our stakeholders concerning(1) urgent social issues related to the infrastructure, (2) INFRONEER's concepts and initiatives (business model) toward solving such
issues, and (3) the future (VISION) realized through our initiatives. We also aim to develop firm relationships with stakeholders who are

Page 09[Chapter 1]

A Passion for Management

Messages from the management of INFRONEER Holdings and its three businesscompanies—Challenge the status quo for the future of our infrastructure

willing to “challenge the status quo for the future of our infrastructure together." We have edited the first integratedreport for this fiscal
Page 23[Chapter 2]

year as described on the right.
• Target period: Covers activities of each Group company from April 1 to September 30, 2021, and activities of INFRONEER from October 1, 2021 to March 31, 2022, including some previous initiatives and recent activities.
• Reference guidelines: International Integrated Reporting Council (IIRC) "International Integrated Reporting Framework," Ministry of Economy, Trade and Industry "Value Creation Guidance," GRI Standards

Page 41

Initiatives to Achieve Comprehensive KPIs

[Chapter 3]

We show the comprehensive KPIs linked to the overall growth story of the INFRONEER Group, which is not just an extension or a simple

INFRONEER's Business Plan

aggregation of the affiliated business’s conventional KPIs. We introduce our initiatives to achieve those KPIs in each chapter.

The method of calculating corporate value in the market includes the DCF method. However, the corporate value considered by
INFRONEER (INF*) is not only the overall market value, but also the value obtained by our business base and all stakeholders.
We quantify what can be quantified, which is a part of our corporate value, and share it with our employees as an "added value amount."
In this integrated report, "INF value added amount" and "INF value added productivity" are positioned as the overall KPIs of INFRONEER.
They are defined as shown below so that they can be commonly recognized and clarified with all stakeholders.
Defines the Corporate Value that Considered by INFRONEER
Maximize corporate value Maximize added value Optimize and enrich the portfolio• • • As a result, it leads to the improvement of ROIC, the reduction of capital costs, and the expansion of the market capitalization

Group strategy as an "integrated infrastructure service company," that offers
one-stop management across all infrastructure operations from upstream todownstream

Page 51[Chapter 4]

Common Recognition and Clarification of Growth Stories in Capital Markets

Introduction to our business through the value creation process andmateriality recognized by our company (key issues)

Our Vision for the Future

Initiatives for ESG to solve infrastructure problems
Segment strategies and related initiatives

Initiatives for Safety, Security,
and Reliability
Page 95[Chapter 5]

Highlights of our financial and non-financial information

IR Information[Final Chapter]

Page 105

The passions and talents of INFRONEER believers

Sources of Value Creation*INF: Abbreviation of INFRONEER Holdings Inc.

Issue Awareness & Vision

Associating the Integrated Report (booklet edition) content with the web version

Introduction

Value added considered by INFRONEER: INF value added amount= (Total labor expenses + R&D expenses + operating profit + depreciation expenses)
Initiatives to raise expectations for future value creation

A Passion for Management
Chapter 1
Management message
Our Vision for the Future

Chapter 3• INFRONEER Medium- to Long-term Vision/
INFRONEER Medium-term Vision

Initiatives for Safety, Security, and Reliability
Chapter 4
ESG Strategy/Segment Introduction
IR Information

Non-financial
Challenge the status quo | Integrated Report• INFRONEER Medium- to Long-term Vision/INFRONEER Medium-term VisionCorporate Profile

Securities Report

Corporate Governance Report

Financial Results

Sustainability Data Book [Scheduled for next fiscal year]

Fact Book
Investor Presentations

Chapter 5
Settlement Performance“INF value added productivity” = INF value added amount / Total number of employees
Initiatives to increase the speed and accelerationof value creation

Financial

Initiatives toward improved accumulation of value for the future

INFRONEER's Business Plan

Chapter 2
The Value Creation Process (Business Model)

We have released a web version that complements the annual booklet edition.
In the future, we will provide additional information and updates as necessary.

Sources of Value Creation
Final Chapter
INFRONEER Believers[Company Abbreviation]
INFRONEER Holdings Inc. (INFRONEER/INF)
07 MAEDA CORPORATION (MAEDA/MK), MAEDA ROAD CONSTRUCTION Co., Ltd. (MAEDA ROAD/MD), MAEDA SEISAKUSHO CO., LTD. (MAEDA SEISAKUSHO/MS)

I n teg rated Rep ort on O u r W eb s i teIntegrated Report pagehttps://www.infroneer.com/en/company/

I R I n form ati on on O u r W eb s i te

Investor Relations pagehttps://www.infroneer.com/en/ir/

Su s tai n ab i l i ty o n Our We bsit e

Sustainability pagehttps://www.infroneer.com/jp/sustainability/

INFRONEER Holdings Inc.

08

Chapter 1

A Passion for Management
Messages from the management of INFRONEER Holdings and its threebusiness companies—Challenge the status quo for the future of ourinfrastructure
Page 11
Page 17
Page 19
Page 21

Management Message from INFRONEER Holdings
Management Message from Business Company 1
Management Message from Business Company 2
Management Message from Business Company 3

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from INFRONEER Holdings
A f r e e futur e for in fr astr u ctu r e c r e a te s a s us t a ina ble w o r ld

Management Message

Background to Establishing Holdings
Page 40 Ensuring a Competitive Advantage

Director,
Representative Executive Officer,
President, and CEO
INFRONEER Holdings Inc.

Kazunari Kibe
11

In the late 1990s, the question I posed myself as a member of
MAEDA's management team was which direction the company shouldtake. It was a time in which Japan as a whole could not come up witha growth strategy after the collapse of the bubble economy. The
construction industry was in a very precarious state due to thediscovery of successive bid rigging incidents. Overseas in Europe andin the United States, the old construction market, which was mainly
focused on new construction, continued to shrink. However, newconstruction markets such as PPP, PFI1, and concessions2 wereexpanding. It became clear to everyone that the Japaneseconstruction market would eventually follow suit.
Still, a majority of construction work is implemented in the form ofa contract whereby the construction operator promises the ordering
party that the work will be completed. The contracting business has
the benefit of not taking on any business risks and a promise that thework will be paid for. Conversely, when the market shrinks, pricecompetition for contracting intensifies, making it difficult to generate
profits. As this situation continues, some of the major overseas
construction companies have begun to participate in thecomprehensive business of building social infrastructure3 such as
airports and water and sewage facilities on behalf of the public with
their own funds and at their own risk, and then operating andmaintaining them.
Turning our focus onto Japan, there has been a response to Japan's
aging public infrastructure. Due to local financial difficulties caused bypopulation decline and slow economic growth, it is no longer easy formunicipalities alone to maintain and renew their public infrastructuresuch as water supplies, the sewage system and their roads. Under the
traditional concept of "public facilities are government made,"
Japan's public infrastructure will eventually reach a dead end. Publicprivate partnerships through concessions that go beyond theestablished concept of contracting indicate the way to move forward
toward solving this problem. By expanding infrastructure services4
beyond established concepts, we will be able to renew and optimize
our infrastructure and build a safe, secure and sustainable society.
I identified the possibility of future business with this method of
public-private partnerships, introducing the initiative of "contracting ×

de-contracting,"5 and this led to the establishment of INFRONEER
Holdings.
In public-private partnerships, we have taken on domestic
concession projects, including Aichi Prefecture toll roads, Aichi Sky
EXPO, Sendai International Airport and others. With the aim of building
a carbon-neutral society, we have already begun initiatives to invest
in renewable energy businesses, build and operate facilities, sell themto infrastructure funds, leading to capital recycling6. Although these
initiatives have been implemented by MAEDA alone, MAEDA alone
lacked the resources, and accelerating our initiatives was difficult. We
established INFRONEER Holdings to demonstrate synergy across theentire Group of MAEDA, MAEDA ROAD and MAEDA SEISAKUSHO andto contribute to solving social issues while ensuring our steady
growth.

A Free Future as Envisioned by INFRONEER
Page 31 Our Vision for the Future, Materials & KPIs

Proceeding with the de-contracting process is also going beyond theestablished concepts of infrastructure, including our own business.
For example, Japan is a small island country, but it has become oneof the world's leading countries both culturally and economically.
However, the side effects of this success make it difficult to change
the rules, and there is one aspect that is very difficult to change. The
same has been true for our infrastructure, where there have been
preconceived notions of laws and human consciousness in theconstruction industry.
However, by changing the laws, the industry and people's thinking,we can achieve much higher levels of infrastructure services andcontribute to a sustainable world by making the infrastructure freer.
We express this thinking that also leads to SDGs and ESG as “a world
where there's no limit to what can be asked from and what can bedelivered by infrastructure services,” 7 and offer it as the Medium- to
Long-term Vision for INFRONEER Holdings.

Strengths that Combine Engineering and Financial
Know-how
Page 26 The Value Creation Process

There are two main points around which we have implemented our

1, 2, 3, 4. Page 109 Glossary; 5. Page 36 Contracting × De-contracting; 6. Page 37 Recycling of Capital; 7. Page 109 Glossary
INFRONEER Holdings Inc.

12

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from INFRONEER Holdings

wheeled vehicle, and de-contracting cannot be extended unlesscontracting is strong. If the de-contracting becomes stronger, it canpositively affect contracting. Since de-contracting is a timeconsuming business, it cannot involve the whole Group. INFRONEER
will take the lead in promoting it, aiming to increase revenue while
reducing risks by strengthening its financial know-how. Our businesscompanies will continue to promote conventional businesses,
including contracting, and maintain and strengthen our engineering
capabilities.
With contracting and de-contracting functioning as the wheels, it ispossible to improve our corporate value as an “integrated
infrastructure service company.”Comprehensive System × Business Area Expansion9
From business creation to planning and proposals, design,
construction, maintenance, upkeep and management, operations, andsales, we are expanding our business to comprehensively handle
projects from upstream to downstream.
Expanding our business portfolio area into a variety of infrastructure
fields, including roads, water and sewage systems and airports, andcombining multiple fields will enable us to provide morecomprehensive and efficient services to all of society.
We will contribute to solving a wide range of infrastructure issues
through our comprehensive support and the expanding of our areas ofbusiness.

Recycling of Capital6
de-contracting business. One is to change the laws and ordinances toenable the implementation of business that was not traditionallyconceived of as de-contracting. We have been doing this activity formany years, and we will continue to focus on it more in the future.
The other is that we have gained financial know-how while being a
construction company. Both the concession business and therenewable energy business were executed by construction companies
with engineering capabilities8 and financial institutions overseas.
However, we were unable to find the financial institutions that wewould partner with in Japan, so we acquired financial know-how by
partnering with the top global players.
The de-contracting business is a business that aims for greater
returns by investing in projects and engaging in operation andmaintenance. However, there are also risks associated with engaging
in this type of business. We have been able to reduce the project risks
by using the engineering capabilities that were our original strengths

13

and the financial know-how that we eventually acquired. I believe thathaving both engineering capabilities and financial know-how is
exceptional in the industry, and this is one of our biggest
differentiating factors and added value.

Three Business Models That are Challenging the
Future of Our Infrastructure
The INFRONEER Group is focusing on three business models to solve
infrastructure challenges through its business while also maintaining
business growth and aiming to achieve a world where there's no limit
to what can be asked from and what can be delivered by infrastructureservices.

We will create capital recycling (flow) by taking risks to create a social
infrastructure based on our engineering capabilities and financial
know-how, tailoring it to projects that generate long-term returns, andselling it to pension funds, who place importance on stable operations
and cannot take development risks.
Through this cycle, we can proceed with the development andrenewal of infrastructures through public-private collaboration, andthis will also lead to the improvement of social issues such as
financing pensions. In other words, working on overall infrastructureservices will enable us to solve not only the challenges surrounding
the infrastructures, but also a wide range of social issues.

Key Points in Promoting Reforms are "Culture"and "People"
Page 53 ESG Strategy Page 111 INFRONEER Believers

Contracting × De-contracting

5

For the INFRONEER Group, contracting and de-contracting from a two-

I believe that the creation of a new construction industry model that

promotes reform can form the basis for the corporate culture at the
INFRONEER Group and the changes in our employees' approach towork. The top executives of European construction companies whoare pioneers in the de-contracting business have also said: “the mostimportant thing is that it takes ten years to change a person’s
approach.”
For employees to change their approach, I believe that it is an
important job and my role to provide opportunities for new work andchallenges that bring the vectors of personal growth in line withcompany growth. This integrated report is one such instance.
We have formulated "INFRONEER^ (INFRONEER Caret),"10 a set of
guidelines for the way of thinking, spirit, and approach that each andevery employee throughout the Group should develop to achieve the
INFRONEER VMV11. Generally, this is similar to a code of conduct, but
at INFRONEER, we have positioned it as a source of new value
creation and a path to value, through the power (Caret) of the diverse
strengths of our INFRONEER employees.
In this way, we want to provide many opportunities for employees
to develop a common awareness in taking the next steps.
DX is indispensable for the evolution of our employees and ourcompany. We believe that DX is a rule change through the use ofdigital technology. A rule change is something that breaks down
established concepts, changes how we think, radically transforms theway we work and creates new value.
I am defining a future in which the promotion of DX will bringrewarding ways of working and will allow our employees and thecompany to grow together. To achieve this, we need to reform theawareness of our executive officers and employees in order toimplement DX and to improve the IT literacy needed to support it. In
response to changes in the business environments, it is increasingly
important to use production-information data to make quick decisions
and management judgments. We believe that DX is essential forfurther growth.

Towards a Sustainable World
Sustainability perspectives are also important in reforming ourawareness and creating a new culture. In the first place, the decontracting business, which contributes to solving the problems of
public infrastructure can be called an SDG in the end. It is a businessmodel that incorporates ESG.
I believe that one aspect of diversity is that people with different
ways of thinking come together and merge to create new ideas andnew challenges, so I intend to promote diversity to evolve our

5. Page 36 Contracting × De-contracting; 6. Page 37 Recycling of Capital; 8. Page 109 Glossary; 9. Page 35 Comprehensive System × Area Expansion;
10. Page 110 INFRONEER^; 11. Page 15 VMVINFRONEER Holdings Inc.

14

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from INFRONEER Holdings

With our commitment to the evolution of our corporate culture andemployee awareness, and with the engineering capabilities of ourbusiness companies and the de-contracting of INFRONEER building a
track record across a wide area of society, we want all of our
stakeholders to have confidence in the trust society places in the
INFRONEER Group to develop the infrastructure.

VisionOur Vision for the Future

A world where there's no limit to what can be asked from and what can be delivered by infrastructure services.

To All Investors

MissionOur Mission

We challenge the status quo of existing infrastructure businesses and deliver
the most suitable services globally with innovative ideas.
Value
The Value We Promise

Safety, security, and sustainability for our society and local communities.

MAEDA

MAEDA ROAD

MAEDA SEISAKUSHOGroup Company

Future Group Company

Management
Philosophy
Code of Conduct

Management
Philosophy
Code of Conduct

Management
Philosophy
Code of Conduct

Management
Philosophy
Code of Conduct

Management
Philosophy
Code of Conduct

Philosophy and action base based on the business characteristics of each company

corporate culture and our people. Because of our awareness of theimportance of diversity, in establishing of INFRONEER Holdings, we
also set a target of having over 30% of female employees. The
number isn’t simply a target. I believe that achieving this will generatea new culture.
By encouraging our employees and our company to evolve, we aretransforming into an INFRONEER Group that can solve a wide range ofsocial issues. We want to contribute to building a sustainable society.

I have been in charge of IR (Investor Relations) since the late 1990s. I
organized opportunities for top managers to exchange opinions withinvestors at financial results briefings and overseas road shows,which was rare in the construction industry at the time, and I also
supported them in exchanging opinions with many investors on the
spot. “How do you increase earnings per share in the constructionindustry, which is still in the business-as-usual industry of
construction?" "What do you think of the low level for valuation suchas PER and PBR?" "What do you think about the issue of parent-childlistings?" The topics have changed over time, but I think that I havereceived much valuable advice on improving the corporate value. I
believe that improving corporate value will lead to the expansion ofmarket capitalization in the medium to long term. Whether the worldchanges from shareholder supremacy to multi-stakeholderism, I
believe that the satisfaction of all stakeholders will be reflected in themarket capitalization in the medium to long term. To that end, we willof course work to maximize our cash flow, but we want to gain thetrust of all our stakeholders, because they have great expectations of
us. We want to engage with investors more actively than ever before
and work together with our executive officers and our employees toimprove our corporate value. I hope you will continue to encourage us
in moving forward.

CHECK!

A Company to Build an Infrastructure That Embodies
a Sense of Security

I N F R O N E E R ^ (INFR O NEER Caret) Page 110
PIONEERRESPECTPRIDEPOSITIVEFAIRIN F R O N E E R G r o u p c o m mon p h ilosop h y an d sp iritu al b ase

15

Our business performance for the fiscal year ended March 31, 2022
was as we had anticipated. Our business will continue to show astrong performance in this period as well. However, we believe that
we must pay even more attention to our corporate culture andemployee awareness in the future. We have formulated Vision 2024
as the foundation construction phase of the Medium Term Business
Plan, and Vision 2030, a Medium- to Long-term Business Plan that
includes the growth phase of the Medium- to Long-term Business
Plan. We believe that the evolution of our corporate culture andemployee awareness is essential for its implementation.

Kibe-log
Blog of the official website– the President's
viewpoint !
https://www.infroneer.com/en/company/topblog.html

Kazunari Kibe
Joined MAEDA CORPORATION in 1986; served as a Managing Officer in 2014; served as a Director
and General Manager of the Management Innovation Division from 2016; in October 2021, became
the Director, Representative Executive Officer, President, and CEO of INFRONEER Holdings.

INFRONEER Holdings Inc.

16

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from Business Company 1
One such challenge is the "de-contracting" project launched in
2011. We have established a business model that allows us to
manage upstream and downstream in the value chain with one-stop
service. As a result, we have built up achievements in public-private
partnership concessions and renewable energy businesses. In the
public-private partnerships, which is anticipated to be one of themethods for solving social issues, we have taken on the Aichi Arena2,
which adopted the Build/Transfer+ concession2 scheme for the firsttime in Japan.
In our contracting business, which is one of the pivots of ourbusiness, we do not get involved in cost competition; instead wenegotiate realistically with customers for a fair price and for a fairconstruction period. Still further, in bidding for design and construction
projects, we have differentiated ourselves by strengthening our
proposal capacity and by being engaged from the project planningstage. As a result, the design and construction ratio has increased
from 30% to 70%. An evaluation of these initiatives indicates that they
have resulted in the acquisition of projects and transactions that
require technical and comprehensive capabilities, such as large-scale
redevelopment projects and wooden structures.
In this way, we are building a business model that is not susceptible
to the effects of the external environment; a model that develops
business in both the conventional contracting and the new revenue
source of de-contracting.

Global Compact and obtaining SBT certification in response to climatechange. Our renewable energy business has reached a total power
generation output of 142 MW, and the ICI General Center5, which has
implemented ZEB4 won the Carbon Neutral Award. We are steadily
making steady process.

Our Performance for the Fiscal Year Ended
March 31, 2022 and the Future
Despite the painful situation in the construction industry, with theprofits of some companies being significantly reduced, MAEDA has
not reached its sales targets because of delays in the progress ofsome construction projects. However, we are ensured a high grossprofit margin as a result of the contribution from profitable hand-heldconstruction projects. In the renewable energy business, in FY2021,
we sold two solar power businesses. We also plan to sell one wind
power business6 in FY2022, and expect to have our highest operating
profit ever, increasing the contribution of this business makes to our
performance. Achievements in infrastructure management include theacquisition of Aichi Arena and Osaka City industrial water, theoperation of Ozu biomass power generation in the renewable energy
business, and an increase in the number of projects that involve
comprehensive management operations and others.
I feel that our record of zero major disasters is also a major

Taking the Initiative to Create a Path for Transformation

T a k i n g t h e L e a d i n Res ponding t o Changes
t o P r o m o t e t h e I NFRO N EER G roup

MAEDA CORPORATION

President and Representative Director

Soji Maeda

Responding to Changes in Times
In today’s world, we are entering an era of uncertainty that will bringabout changes that many of us would never have imagined. Due tothe impact of the coronavirus pandemic, economic growth has
stagnated, people's lives and even their sense of value changed in an
instant around the world. Changes in the industrial structure in themove to digitalization have accelerated all at once. Most recently, highprices of commodities and resources associated with the situation in
Ukraine have had a significant impact around the world; theconstruction industry is beginning to experience a shortage ofmaterials and equipment, and there has been a negative impact on
costs and construction periods. In addition to the changes caused by
the social situation, it is even more important to respond quickly to the17

https://www.maeda.co.jp/english.html

challenges facing the construction industry1, including the quantitativeand qualitative changes in the construction market associated withthe maturation of social infrastructure, aging infrastructure, and ashortage of workers due to the declining population.

Move Steadily Forward with a Proper Sense of Crisis
In this context, MAEDA has demonstrated its spirit of taking onchallenges, which has been one of the company’s strengths passedon since the company’s inception. Now that we are at a turning pointin the current era, we recognize the characteristics of our businessthat are susceptible to economic fluctuations with a proper sense ofcrisis. For that reason, we are promptly responding to changes in thebusiness environment while implementing reforms.

The construction industry is characterized as a labor-intensive
industry, and an understanding that investment in human capital isessential to address the growing shortage of workers resulting from adeclining population. MAEDA has been placing value-added
productivity at the heart of its KPIs since before it became a Holdings
company. It has been investing in human capital while making efforts
to raise salaries with the idea of including labor costs in added value.
At present, MAEDA is taking the initiative in improving value-added
productivity and increasing its share of operations. After evaluating
the results and issues, the company is building a foundation that canalso be deployed to the business companies of the INFRONEER Group.
In our working-style reform initiative, we have introduced a variety
of working styles, including closing construction sites for eight days inevery four-weeks3, expanding our flex-time system and telework, andimproving the environment for our male workers to take childcare
leave. In our education and training system, we reviewed the training
curriculum for each career, and the three-year turnover rate, which
was 20% ten years ago, is now less than 5%.
To enable us to respond flexibly and quickly to changes in society,
we recognize that it is important to increase the numbers of ourfemale managers and foreign employees. Currently, we are launchinga cross-cutting working group in the INFRONEER Group to advancethese initiatives. We will also focus on exchanging human resources
between our Group companies and acquiring diverse humanresources from outside the company.
The cooperating companies that from part of our supply chain havevarious common issues that include recruitment, human resource
development, and technology development. We will collaborate withthem to solve these issues.
MAEDA's business is closely connected with the SDGs, and so weare working to solve social issues through our business while keeping
pace with the world's trends. This includes signing the United Nations
1. See page 03 "Social Issues Surrounding Infrastructures and Their Solutions";
3. See page 61 "Pursue ease of work and value of work "5. See page 93 “Bases for Generating Synergies—ICI General Center”

achievement. We will continue to focus on countermeasures because
disasters are issues that we must continue to address.
We have maintained a proper sense of crisis until today; one that issensitive to changes in society, and the strides we have made inboldly challenging ourselves in the medium to long term are the fruitof our steady efforts. The year 2022 marks the start of the second
stage of NEXT 10, MAEDA's Medium Term Business Plan. We haveplans to speed up this transformation. However, the transformation
will not be accomplished by MAEDA alone. It is essential that wecollaborate with other companies within and outside the Group. We
will strengthen our collaboration between INFRONEER Holdings,
MAEDA ROAD and MAEDA SEISAKUSHO, and move forward to meetthe expectations of society as an integrated infrastructure service
company.

Soji Maeda
Joined MAEDA CORPORATION in 1997; served as a Director and Managing Officer from 2002; served
as a General Manager of the Building Division and was in charge of Sales Promotion; served as
President and Representative Director of the company in 2016; in October 2021, became the Director
and Chairman of INFRONEER Holdings.

2. See page 78 "Construction work related to the development and operation of a new gymnasium in Aichi Prefecture”;
4. https://www.maeda.co.jp/assets/file/tech_service/w_zeb_new.pdf
INFRONEER Holdings Inc.
6. Sold in the first quarter of the fiscal year ending March 31, 2023

18

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from Business Company 2
medium-temperature compound can be transported longer distances
thereby solving this problem and contributing to a sustainable society.
With regard to the shortage of workers, we have previously secured
companies that will cooperate exclusively with MAEDA ROAD in eachregion. Currently, our projects are supported by 98 companies that
employ approximately 2,000 people in the construction area, and by
57 companies that employ approximately 1,500 people who are
related to plants. I believe that this is a strength that other companies
do not possess. However, the shortage of workers is an important
issue. We want to take measures to secure human resources whilestrengthening our relationship with these cooperating companies in
the future.
MAEDA ROAD is also focusing on a comprehensive private
contracting that receives inclusive orders for the maintenance andmanagement of the infrastructure with the goal of establishing a third
pillar of our business after construction and manufacturing. We
received an order for a JV (joint venture) with MAEDA to implement
comprehensive road management work in Fuchu City, Tokyo, which isthe first of our full-scale road comprehensive contracting project. We
will implement road related work in the eastern area of Fuchu City
over a three-year period that will last until March 2024. While buildingon these achievements, we plan to establish the systems necessary
for maintenance and management, and acquire comprehensive roadmanagement projects from other municipalities. We will shift to stockholding management by increasing our comprehensive management
project that we aim to undertake over the long term.

S tro n g F i n a n c e s a n d M o r e t han 2 0 0 Si t es Acros s JapanDri v e F o r w a r d t h e I N F R O NEER G roup

MAEDA ROAD CONSTRUCTION Co., Ltd.

President and CEO

The road-building industry is experiencing a downward trend in new
construction projects, similar to the construction industry. However,maintenance and repair orders have shown a slight growth. We
believe that our workload will not decrease significantly. Conversely,
there is an urgent problem in that the price of raw materials forasphalt has more than tripled due to the soaring prices of crude oiland exchange rate fluctuations. There are also other issues that need
to be addressed across the industry. They include CO 2, which isemitted in great quantities in asphalt production, and the lack ofconstruction workers. MAEDA ROAD was the first to respond to thesechallenges.

The INFRONEER Group has some of the best human capital in each of
the three business companies that operate different businesses. Wevery much look forward to their fusion. The human capital our group
has accumulated will result in a chain reaction, expanding into new
business areas. I can sense the possibilities and the attraction in this.
What is important here is the sense of satisfaction of employees as
they work toward implementing innovations. The three businesscompanies have different histories and different corporate cultures. It
is important to proceed with reforms while understanding andrespecting each other's differences. True innovation will not comeabout unless we are advancing steadily in a way that our employees
understand and are convinced by, rather than simply seeking quick
results.
After being assigned to my current post as company president two
years ago, I traveled to nearly all of our 200 work sites, from Hokkaido
to Okinawa, and talked to employees face to face. I feel that by talking
directly to each other with specific details, such as the company
direction, company benefits, any issues being experienced at the worksites, we can better understand each other and communicate clearly.
In order to further innovate through this conversion to the Holdings
structure, we believe that we need to give our executive officers andemployees opportunities and the time to feel satisfied with their work.

Our Performance for the Fiscal Year Ended March
31, 2022 and the Future
Growth through Holdings and the Role of MAEDAROAD
The particular focus of MAEDA ROAD in our countermeasures forCO2 is medium-temperature compounds1. The asphalt composite used
for paving is usually transported from the plant to the construction site
at 160˚C for construction, but the medium-temperature compounds
can be used at 130˚C. This 30˚C difference reduces CO2 emissions
during manufacture. MAEDA ROAD has installed equipment that can
produce this medium-temperature compound in 44 of its
approximately 100 plants. We have achieved one of the best
installation rates in the industry. Also, while asphalt normally has atransport distance of up to 20 kilometers, medium-temperaturecompounds can be transported up to approximately 40 kilometers. If
the asphalt plant is closed because of a shrinking local economy, thiswill create an area where asphalt cannot be supplied. However, the
1. See page 82 "Road Civil Engineering Business—Topics"

19

A Fusion of Human Capital is Particularly Anticipatedhttps://ssl.maedaroad.co.jp/en/

Yasuhiko Imaizumi

Responding Quickly to Industry Challenges

JV with MAEDA.
There are two roles that I feel MAEDA ROAD plays in the Group. One
is that our financial situation has been good for many years; our equity
ratio is very high and our cash flow is good. We believe that MAEDA
ROAD will play a major role in raising the value-added creativity of theHoldings as a whole, and in the aspect of funds that are essential forthe operations that leads to improved corporate value. Another of ourstrengths is that we have more than 200 sites3 around the country
and have a very deep connections with many local construction
companies and municipalities. We are aiming to utilize various
information networks and MAEDA ROAD's community-based
capabilities to acquire comprehensive infrastructure service projects
such as PPP projects and concessions.

We anticipate that the entire Group and each business company will
be strengthened in various aspects in the medium to long term withthe conversion to the Holdings structure. With MAEDA's backup, I feelthat MAEDA ROAD is already seeing the effects of this conversion,
such as in the technical proposal capabilities when bidding on
construction and IT work in various fields aimed at improving
productivity.
With regard to technology collaboration, the research function of
MAEDA ROAD will be transferred to the ICI General Center2, and ICI
will be used as a base for technology development for MAEDA ROAD
during this year. We expect that the development capabilities of eachGroup company will be strengthened by advancing andcomplementing each other’s research work. On the practical side, we
are also creating relationships with our mutual customers, including
2. See page 93 “Bases for Generating Synergies—ICI General Center”;

With regard to performance, I think ultimately that it had a big
influence because we were unable to respond to the higher prices ofcrude oil. In the future, by working on comprehensive private
contracting in addition to conventional construction andmanufacturing, we will aim to achieve more stable management
through securing long-term business.

Yasuhiko Imaizumi
Joined MAEDA CORPORATION in 1981; served as an Executive Officer and General Manager of the
Planning Promotion Department of the Building Division from 2010; became Director and Senior
Managing Officer and General Manager of the Building Division of the company in 2017; became
President and CEO of MAEDA ROAD CONSTRUCTION Co., Ltd. in June 2020.

3. See page 40 Ensuring a Competitive Advantage
INFRONEER Holdings Inc.

20

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Management Message from Business Company 3
Medium-term Business Plan with the aim of reforming productivity,
establishing a new revenue base, and strengthening and improving its
structure.

Expanding Our Overseas Business
MAEDA SEISAKUSHO has set expanding sales of its own products tooverseas markets as one of its priorities, selling construction
machinery such as cranes through local dealers in more than 60
countries and regions. However, in the North American market, thelargest construction machinery market, we have struggled. In April,
MAEDA AMERICA Inc., a wholly owned subsidiary of MAEDA
SEISAKUSHO, was launched in Houston, Texas, United States. In the
North American market, we expect to expand our share in the largest
market by expanding our sales network with a focus on local
corporations.

environmentally friendly construction machinery. We held theimpression that Japan was somewhat lagging behind, but interest has
increased in recent years in Japan as well. In response to thesedemands, MAEDA SEISAKUSHO has developed a spider craneequipped with a lithium-ion battery that has zero emissions. In
addition to expanding our lineup, we will also work with the ICI
General Center to develop special, large-scale machines.

Relationship of Trust Built with Komatsu
As a top-notch domestic master exclusive distributor for Komatsu, thelargest domestic construction machine manufacturer, we offer
everything from sales, rental, to after-sales services in Nagano,
Yamanashi, Aichi and Mie prefectures. In addition to this distributor
business, we share in Komatsu's sales know-how and technology
through our personnel exchanges. This is just one more of thestrengths of MAEDA SEISAKUSHO. In addition to handling thecompany's machines, we have also built a relationship that goesbeyond the framework of a distributor, including being entrusted withthe development and manufacture of special construction machines.

Development and Community-based Capabilities as a
Manufacturer to Promote the INFRONEER Group

Development of Unique Construction Machinery
Through Original Technology and Collaboration

MAEDA SEISAKUSHO CO., LTD.

President and Representative Director

https://www.maesei.co.jp/global/

Masaaki Shioiri

Diverse Business Areas
The construction machinery industry is characterized by aperformance that fluctuates in proportion to the construction
investment. The construction machinery industry has been strong inrecent years thanks to solid domestic construction investment. This
trend is likely to continue for some time. However, the constructionindustry as a whole is facing many challenges, including the shrinkingof the traditional construction market, and we cannot afford to be

optimistic.
Amid this, MAEDA SEISAKUSHO is expanding its business in Japanand overseas. We are contributing to the construction industry as amaster exclusive distributor for Komatsu, in addition to developing
and selling our own products in Japan. This diverse business area is
one of the strengths of MAEDA SEISAKUSHO. To utilize this strengthand further improve performance, MAEDA SEISAKUSHO is committed
to improving the efficiency of production processes, strengthening its
overseas businesses, and further promoting proposed sales in our

As a manufacturer, MAEDA SEISAKUSHO offers comprehensive
support for construction machinery design, manufacturing, sales,
rental and after-sales services. Original products such as the spider
crane and the crawler crane have received high ratings not only inJapan but also overseas. We also develop and manufacture custommade products that meet the demands of work sites and ourcustomers. These include special vehicles used in public works,
airports and railways, IT-related equipment, and automobile-related
equipment. We have received high praise from our customers for ourability to develop special machines.
In the 60 years since our company’s founding, MAEDA SEISAKUSHO
has refined its technical capabilities as a manufacturer. We want tofurther enhance our technical prowess by collaborating with thevarious other companies in our group through INFRONEER Holdings. A
number of projects are already underway in our collaboration with the
ICI General Center*, where we are focusing on strengthening ourdevelopment capabilities. One of these is the WOODSTARTM, a robot
arm-type wood processing machine. This system makes it possible toprocess large materials and complex shapes that were difficult toprocess using conventional processing machines.
In addition, demand is strong from overseas, mainly in Europe, for

Demonstrating the Strengths of MAEDA SEISAKUSHO
with our GroupOur business development know-how in Japan and overseas, ourcomprehensive system from designing our own products and custommade products to after-sales service, and our unique business modelas the master exclusive distributor for Komatsu, will enable us tocreate synergies with the INFRONEER Group.
MAEDA SEISAKUSHO will contribute to achieving the Group's goalof becoming an integrated infrastructure service company bydeveloping and maintaining construction machines that will improvethe efficiency of construction sites. In addition, we hope to utilize thecommunity-based strength that we have built over the years bydeveloping businesses that are rooted in the region to acquire projects
such as comprehensive management work in which each businesscompany in our Holdings can work together.

Our Performance for the Fiscal Year Ended March
31, 2022 and the Future
In Japan, construction-related sales such as public works investments
remained strong, and overseas demand for our products returned. In
fact, the demand exceeded our plans.
In the future, we will continue to promote the growth of the entire
Group through further cooperation with INFRONEER Holdings, MAEDA
and MAEDA ROAD, and the strengths of MAEDA SEISAKUSHO.

Masaaki Shioiri
Joined MAEDA SEISAKUSHO CO., LTD. in 1981; served as an Executive Officer and General Manager ofMachinery Sales Department, Industrial Machinery Division in the company from 2008; served as
President and Representative Director of the company from 2013; became the Director and Executive
Officer responsible for Capital Investment Strategy of INFRONEER Holding in October 2021.

* See page 93 “Bases for Generating Synergies—ICI General Center”

21

INFRONEER Holdings Inc.

22

Chapter 2

Our Vision for the Future
Introduction to our business through the value creation process andmateriality recognized by our company (key issues)

Page 25 The Value Creation Process
Page 29 Stakeholder Remarks
Page 31 Our Vision for the Future, Materiality & KPIs
Page 35 Three Business Models That are Challenging the Future of Our
Infrastructure
Page 38 Six Business Foundations to Support GrowthPage 39 Catalysts for the Early Establishment and Stabilizationof Evolved Business Models

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

The Value Creation Process
We challenge the status quo of existing infrastructure businesses andMISSION

Social Background

Social issues requiring attention

page 03

Declining birthrate and aging population

Materiality

Solving social issues through our
infrastructure services business1

Decrease in working population

Building a society that is proactively
conscious of the environment

Increased social security costs

Strengthening value chain

We will also contribute to the
optimization of infrastructure services
worldwide by exporting Japanesetechnologies and know-how developedin Japan.

Insufficient public funds

Infrastructure reaching 50 years of age(aging)Strengthening business foundation(initiatives for ESG)

3

E

Our premise is to promote
understanding of the social issues
surrounding our infrastructure andinfrastructure services, and to promote
the diffusion and improvement of thesocial values and branding.

Deceleration in infrastructure maintenanceand renewal

Collapse of a safe, secure and comfortableliving foundation

S
G

Building a society that is
conscious of protecting ourenvironment
Value-creating human capitaland mutual respect

Strengthening governance

25

Road Civil
Engineering Businesses

page 71

page 75

Financial capital
Offensive and defensive financial
management

100 years of know-how, technology, andintellectual property

Domestic and international bases
Meticulous and considerate

Accelerating Reforms
Through DX
page 39

Safety, security, andsustainability of our society andlocal communities.

page 79

page 36

Comprehensive
System×
Area
Expansion

Contracting×
De-contracting

Ensuring a Competitive
Advantage

Challenge the status quo

page 40

BUSINESS MODEL

Machinery Businesspage 87

Earth

Develop local economies and society byaccelerating the overhaul and optimization of
the infrastructure

Localsociety

Employees
Theirfamilies

Investors
Improved value for Collaborating
Evaluating stakeholders with whom companies
organizations
Partners

we are challenging thedevelopment of our
future infrastructure

Customers

Earth
Job
applicants
Their families

page 37

Collaborating companies, alliances,
customers

Natural capital

Value added to society

page 35

Creating therecycling of
capitalLong-term partnerships

A world where there's no limit to what can be asked from and what can
26

Civil Engineering
Business

Human resources who can create value
with passion

Strengthening of each type of

VISION

Building
Construction Business

Human capitalBusiness know-how

2

VALUE

page 38

Social and corporate value improvement

Reduced tax revenue

Creating a safe, secure and more
comfortable society

Business Foundation

Management resource allocation

Accelerating the renewal andoptimization of the infrastructure, inJapan has fallen significantly behind,
will lead to the development of thelocal economies and society.

Low economic growth

pages 33 and 34

deliver the most suitable services globally with innovative ideas.

Main Related
Businesses (Others)

InfrastructureManagement Businesspage 91

page 83

Value achieved by INFRONEER

Expansion of the business foundation andsustainable growth

capital and recycling

be delivered by infrastructure services. page 05
27

INFRONEER Holdings Inc.

28

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Stakeholder Remarks
Partner Companies With Which We Are Challenging the Future of Our Infrastructure
INFRONEER is developing new businesses in partnership with companies in various fields that have adopted innovative approaches
to future infrastructure services, taking advantage of technologies and achievements that have been developed, enabling it to
support the infrastructure for many years. We will leverage the strengths of both sides to take on the future challenges facing our
infrastructure services.
NTT DOCOMO, INC.

Accenture Japan Ltd

Japan's social infrastructure has been intensively developed during a

Many sections of the social infrastructure are undergoing large-scale

period of high growth, with the result that strategic maintenance andrenewal. Innovative approaches and the adoption of leading-edge digital

operations for the future has become one of the key social issues. In thetechnologies are indispensable to overcome this situation with limited

field of road infrastructure, DOCOMO, along with INFRONEER, is committed

financial resources and workforce. As an integrated infrastructure service

to improving the efficiency of operations by using AI detection technology

company, INFRONEER initiated the concept of de-contracting, and isfor road cracks, automating repair plans and other methods.

promoting the concession business to transform the industry. Our

INFRONEER aims to create a sustainable local communities that is notphilosophy is to be a force for change in the world.

bound by the established concepts of infrastructure management. This is in

Motoyuki Ii
President & CEO
NTT DOCOMO, INC.

line with DOCOMO's brand slogan, “Changing worlds with you.”In the future, we will promote DX (digital transformation) of theinfrastructure with INFRONEER, and will contribute to the development of a

By combining the vast amounts of knowledge and data from both of ourAtsushi Egawa
Representative Director and President
Japan Country Managing Director
Accenture Japan Ltd

sustainable society through the structural reforms in society and industry
https://www.docomo.ne.jp/
english/?icid=CRP_drawer_to_CRP_EN

and the creation of new lifestyles.

industries with digital technologies such as AI and the cloud, we can moveyour business model forward and elevate it to become a pioneering
platform in the industry. Our joint efforts will lead to the realization of aprosperous society with a view to 100 years from now.

https://www.accenture.com/us-en
Related topic: Accelerating Reforms Through DX (page 39)

Tokyu Corporation

Kazuo Takahashi
President & Representative Director
Tokyu Corporation

https://www.tokyu.co.jp/global/

Fukuoka Jisho Co., Ltd.

Our engagement with MAEDA CORPORATION was through the Sendai
International Airport project. We have learned that MAEDA was moving
forward with structural reformations to make infrastructure management
the mainstream of its business, therefore we have decided to take up thechallenge to explore the first airport concession in Japan with them. We
were able to pioneer a new model that would revitalize the region while
taking on the management of a vital public infrastructure. It was acollaborative project of great significance for both companies.
Subsequently, we also participated as a joint venture in the concession for
Aichi Prefecture's new gymnasium, the first arena in Japan to adopt theconcession method.
In June 2022, Global Infrastructure Management, a joint venture withINFRONEER Holdings Inc., established Japan's first full-scale infrastructure
fund. We will utilize this mechanism to commercialize social infrastructure.
Both companies will work to develop new infrastructure markets and invest
in businesses.
Related topic: Global Infrastructure Management Co., Ltd. (page 37)

29

We are building a city in Fukuoka, on the island of Kyushu. We have establishedvarious collaborative relationships with the INFRONEER Group's MAEDACORPORATION, including the Tenjin Business Center (completed in 2021).
For the future development of the city, it is important to continue to support
operations in the city in the long term by supplying and operating an infrastructurethat matches the characteristics of the region. We have formed a partnership that
we believe will increase attraction of the region in which the city is built, and add
value to our daily lives, by combining INFRONEER Group's innovative andIchiro Enomoto

infrastructure management capabilities with our know-how in building cities

President and C.E.O
Fukuoka Jisho Co., Ltd.

rooted in the region, which is one of our company's strengths.
We are confident that, together with INFRONEER Group, which was the one of
the first companies to turn to the infrastructure business, we can leverage our

https://fukuokajisho.com

mutual strengths to enhance the level of our city building.
Related topic: Tenjin Business Center (page 67)

INFRONEER Holdings Inc.

30

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Our Vision for the Future, Materiality & KPIs
Sustainability Policies

Extracting Risks and Opportunities

The INFRONEER vision of sustainability is a business activity that will create a company that contributes to society by working to solve
social issues surrounding infrastructure services, grow the company and improve its corporate value, providing quality infrastructureservices, and improving their social value.
With materiality, we will address three social issues. Namely, they are to create a safe, secure and more comfortable society, to build a societythat is proactively conscious of the environment and to strengthen our value chain. We will also take initiatives to strengthen our business foundationand strengthen our governance, working to build a society that is conscious of protecting our environment and of our value-creating humanresources and the need for mutual respect. We aim to achieve both sustainable growth for the Group and sustainable development for society.

For the 29 important themes, we examined the risks and opportunities for the entire Group and each business company and evaluatedtheir importance. We examined these as part of our long-term management policy and identified the corresponding management issues.
The management issues identified were studied and debated with the management of the Group and the directors, including outside
directors, and particularly important issues were designated at the meeting of the Board of Directors.
For more information on risks and opportunities, visit

https://www.infroneer.com/jp/company/integrated_report/materiality.html
Imp ort an t Th emes

Generation of electricity using renewable energy and construction of power
generation facilities

Strengthening collaboration with partner companies/strengthening of supply
capacities and improving productivity

Promoting design, construction and manufacturing of construction methods,
equipment and products that reduce environmental impact(ZEB, wooden construction, geothermal, and others)

Improving public benefit for local communities/preferential procurement in theregionReducing greenhouse gas emissions across the entire value chain

Improving the working environment and conditions of workers/promoting safety andhealthReducing raw materials derived from fossil resources

Promoting diverse human resources and expanding opportunities for them to play
an active role

Reducing the environmental impact of the manufacturing plant

Prevention of illegal work/forced labor (support for foreign laborers)

Conserving biodiversity

Improving understanding of human rights and preventing violations

Improving the utilization rate of recycled materials and to attain zero waste

Enhancement and promotion of education and training

Management and proper disposal of hazardous substances

Promoting disaster prevention and mitigation

Grouping of themes andconcepts

Appropriate management of water resources

Strengthening governance

Identifying materiality issues

Reducing emissions of harmful substances to the atmosphere

Observance of compliance and prevention of unfair competition and corruption

Management of specific chemicals in building materials

Information security

Promoting the development, sales, and construction of products and construction
methods that contribute to improving the functionality and comfort of buildings(buildings, bridges, tunnels, roads, dams, and others)

Customer privacy

Promoting design, construction/development and manufacturing of construction
methods, technologies and products that save labor and contribute to efficiency on
the construction site

Promoting support for ESG in the entire supply chain

Expanding our infrastructure management business (contribution to solving social
issues through the concession business)

Strengthening of risk management

Identifying Issues for Our Materiality
In FY2022, after converting to a Holdings structure, INFRONEER set up a Sustainability Committee composed of the three business companies. In addition
to discussions at management meetings and the Board of Directors meetings, INFRONEER asked members from a variety of fields of the three businesscompanies to have discussions for about six months, to solve social issues and to identify materiality issues that should be addressed specifically.
To give our stakeholders a broader understanding of the challenges surrounding the infrastructure andthe activities of INFRONEER, the materiality issues had been summarized in a simple and easy-tounderstand expressions. We have also been careful to specifically clarify the association between ourbusiness plan, each segment business and the priority issues. We will continuously review our materiality
continuously through discussions with management as the main body, based on the changes in theenvironment and the opinions and expectations of our stakeholders.
Eleven Sustainability Committee meetings, have been held.

Extracting materiality issues

Value chain analysis

Stakeholder analysis

Mega-trend analysis

Requests and obligations for the
future based on business plan
PLAN

Management/
business analysis

Risk analysis

Integrating critical sustainability themes
for the three business companies

Requests and obligations
according to current project
FACT

Other requests from society
Stakeholders + a

Extracting critical sustainability
themes by business company(segment)

Weighting based on assessment ofsocial and environmental impact +financial impact assessment

Specific action
KPIs

Value creation

Implementing SDGs and VMVIn addition to the relationship between the materiality issues and the SDGs, INFRONEER also links its own VMV to the SDGs as a company
whose business area is infrastructure, with a diverse and broad social infrastructure. Our mission (MISSION) is to create value provided
directly and indirectly from initiatives, business content, domains and value chains (VALUE), as well as to identify what society as a whole
can achieve through our initiatives and businesses (VISION).

VisionOur Vision for the Future

A world where there's no limit to what can be asked from and what can bedelivered by infrastructure services.

MissionValue

Our Mission

We challenge status quo of existing infrastructure businesses and deliver
the most suitable service globally with innovative ideas.
The Value We Promise

Safety, security, and sustainability of our society and local communities.

31

Ensuring the safety and quality of buildings, structures and products

Overall KPIs - INF Value Added Amount(Billions of yen)

INF value added amount =Σ (Operating profit + total labor expenses +depreciation expenses + R&D expenses)

150
120
90
60
30
0

88.5

88.6

FY2018FY2019

145.1

140.2

147

FY2020

FY2021

FY2022 (Forecast)

INFRONEER Holdings Inc.

32

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Materiality & KPIs

Materiality

Sub-issues

2030 Medium- to Long-term Goals(Achievement Vision)

2 Operating profit from infrastructure management is the amount of profit contribution
See page 85 (Infrastructure Management Business)

Earn high ratings from customers (quality,
safety, functionality, comfort and valueadded proposals)

Targets• Building construction: Customer satisfaction survey:
80 points or higher• Civil engineering: Construction performance rating: 80
points or higher• Road civil engineering: Customer satisfaction survey:
80 points or higher• Machinery: Customer satisfaction survey: 80 points or
higherThree
Strategic
Pillars• Introduce non-fossil fuel certificates to the entire
Company• Reducing greenhouse gas
emissions across the entire value
chain• Reduce greenhouse gas emissions from plants• Improve the utilization rate of recycled materials• Reducing raw materials derived
from fossil resources• Reduce waste in new construction projects
significantly• Reduce waste at plants significantly• Improve the utilization rate of the recycled roadmaterials• Improving the utilization rate ofrecycled materials to achieve zerowaste
• Conserving biodiversity

Targets• Developed cumulative total power generated
1 million MWh/year (1,000 GWh/year)

Targets• Design and construction ratio are being formulated• Number of wooden buildings adopted is being
formulated
Results in previous fiscal year
• Design and construction ratio: 66.4% (3-year average)• Cumulative number of wooden buildings adopted: 14
Targets• Local recruitment rate of locally based employees isbeing formulated
Targets• Construction career advancement system site
registration rate: FY2023: 100%

Labor saving, efficiency and optimizationon the construction site

Appropriate allocation of management
resources by maximizing operational
efficiency and minimizing SG&A expenses
by sharing
Accelerate development of certified
technologies and products that save laborand contribute to an efficient construction
site

Page 59• Education for the Group's humanresources strategy (increasing andimproving training)• Improving the working environmentand conditions of workers/
promoting safety and health• Promoting diverse humanresources and expanding
opportunities for them to play anactive role/improving
understanding of human rights andpreventing violations• Prevention of illegal work/forcedlabor (support for foreign laborers)

Results in previous fiscal year
• Business registration rate at the registration site: 63%• Registration rate of technicians at the registration site:
60%
Targets• Net sales of completed construction contracts perperson is being formulated
Results in previous fiscal year
• Net sales of completed construction contract perperson in civil engineering: ¥105 million/person

Strengthening Governance

Productivity refo rms

Strengthening value chain

Improve the supply capacity of partnercompanies and train workers

Value-creating Human Capitaland Mutual Respect

Results in previous fiscal year
• 546,000 MWh/year (546 GWh/year)

Targets• ROIC is being formulated
Page 63

Targets• Formulated in conjunction with certified technicalstandards

2030 Medium- to Long-term Goals(Achievement Vision)• Reduce greenhouse gas emissions across the entire
value chain• Building an effective governancesystem• Observance of compliance andprevention of unfair competitionand corruption

S t r engthening and improving our physica l structure

Expand businesses involved in renewableenergyExpand local recruitment rate of locally
based employees and intra-regional orders• Strengthening collaboration with partnercompanies/strengthening of supply
capacities and improving productivity(hiring and training of workers)

Sub-issues

Note: When the total score is 100 points

Strengthen efforts at design andconstruction facilities that contribute to
reducing CO2 emissions over the productlife cycle• Improving public benefit for local
communities/ preferential procurementin the region

Page 55

Strengthening business foundatio n• Promoting design, construction andmanufacturing of construction
methods, equipment and productsthat reduce environmental impact(ZEB, wooden construction,
geothermal and others)• Promoting design, construction/
development and manufacturing of
construction methods, technologies
and products that save labor andcontribute to the efficiency on theconstruction site

33

1 See page 36

Results in previous fiscal year
• 81:19

Es t ablis hing a new r ev enue base

Building a society that is
proactively conscious of
the environment

Solving social issues through our infrastructure services business• Generating electricity using renewableenergy and construction and operationof power generation facilities

Materiality

Building a society that is conscious ofprotecting our environment

Creating a safe, secure and more
comfortable society

Enhance portfolio and increase profitability• Ensuring the safety and quality ofbuildings (buildings, bridges, tunnels,
roads, and dams and others) andproducts• Promoting disaster prevention andmitigation

KPIs(Targets for FY2030)

Targets• Operating profit ratio2 between contracting and decontracting1 50:50• Expanding our infrastructure
management business (contributing tosolving social issues through theconcession business)• Promoting the development, sales, andconstruction of products andconstruction methods that contributeto improving the functionality andcomfort of buildings (buildings,
bridges, tunnels, roads, dams, andothers)Page 55

Three
Strategic
Pillars• Establish a management system for biodiversity
conservation• Develop preservation technology for biodiversity• Continue forestry activities and development• Give each employee the full training required

KPIs(Targets for FY2030)

Targets
Reduce greenhouse gases
Scopes 1 and 2• 40% reduction by FY2030(Compared to FY2018)• Substantially zero emissions by FY2050
Scope 2
• Utilization rate of renewable energy(electrical power)
RE60 in FY2030
RE100 in FY2050
Scope 3
• 40% reduction by FY2030(Compared to FY2018)

Results in previous fiscal year
Note: See page 101 for details

Targets

Improve employee engagement bybuilding a corporate culture and system• Improve leave of absence/vacation rate for childbirth/ in which diverse human resources playchild care, and the likean active role
• Implement correct working hours• Reduce occupational accidents• Maintain physical and mental health of workers• Build a workplace in which people want to work
• Improve the employment rate of persons withdisabilities, female employees and skilled female
employees• Ensure that all employees are aware of respect forhuman rights and can make appropriate decisions
and take appropriate actions• Continue to ensure legitimate working conditions
for all foreigners working on the construction site

• Run the Nomination Committee, the Compensation
Committee and the Audit Committee• Establish a Sustainability Committee• Form a Board of Directors with a majority of outside
directors• Build a governance system that can be trusted bystakeholders• Information security• Reduce the number of serious legal violations to zero

• Customer privacy• Eliminate serious information security accidents• Strengthen our advantages and improve ourroom to grow (weaknesses)(Feedback and implementation of measures)Note: See page 61 for details• Improve the employment rate of female employees• Zero major accidents
Reduce frequency rate

Implement human resource training to
improve individual skills• 100% participation in required training

Results in previous fiscal year
Note: See page 101 for details• Employment rate of female employees: 17.5%• Frequency rate: 0.51%• Strength rate: 0.03%

Targets
Strengthen the governance function byintroducing a Nomination Committee into
the company system
Note: See page 65 for details• Outside director ratio: 50%• Appoint independent outside directors as thechairpersons of the Board of Directors and theNomination, Compensation and Audit Committees• Implement PDCA under a Sustainability
Committee led by the president

Results in previous fiscal year
Note: See page 101 for details• Strengthening of risk management• Eliminate customer privacy breaches• Operate an effective risk management system• Outside director ratio: 55.5% (5 people/9 people)• Appoint independent outside directors as thechairpersons of the Board of Directors and theNomination, Compensation and Audit Committees

INFRONEER Holdings Inc.

34

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Three Business Models That Are Challenging the Future of Our Infrastructure
1. Comprehensive system (Line) × Area Expansion (Surface) Model

2. Contracting × De-contracting Model (Strengthening Advantages and Utilization Model)

Comprehensive System

Contracting × De-contracting

Taking the entire life cycle of the infrastructure, including planning proposals, construction, and operation and maintenance, as a businessarea, we strive to achieve consistency, maximize the value added throughout the infrastructure life cycle and the value chain, andmaintain and expand the Company's revenue base.

While aiming to stabilize and expand our own revenue, we will take business risks and improve our corporate value through the creationof added value that can be realized because we are a comprehensive infrastructure services company. In this way, we aim to continuously
provide infrastructure services to society.

One-stop management throughout the infrastructure life cycle of any project2
Capture and create opportunities
Finance, regional networks, partnerships

Reinvestments

Operations
andmaintenanceLarge-scalerenovation

RenewalConstruction

Manufacturing
andprocurement

Planning and design

Planning and proposal

Added value

Take the entire life cycle as a business area

Upstream

Downstream

Sales configuration(FY2021)

1
Maintain advantages,
strengthen,differentiate
Engineering capabilities

Area Expansion
By expanding our business portfolio into a variety of infrastructure fields, including roads, airports, water and sewerage concession, andcombining multiple fields, we will be able to provide more comprehensive and efficient services to towns and cities, and to all of society.
As a result, we will contribute extensively to solving various problems faced by the government, local governments, and private businessowners. Also, in order to increase corporate value through our growth strategy, we will expand our business through M&A and alliances,in addition to the growth of our own business and that of cooperating companies.

Group companies

2.7% 5.5%
5.2%

4.9%
18.7%

31.6%

3

23.8%

Utilize advantages
andexpand revenue

4.7%

34.1%

8.5%
20.9%

39.4%

Building construction¥216.1 billion
Civil engineering¥142.6 billion
Road civil engineering ¥232.8 billion
Machinery¥35.3 billion
Infrastructure management ¥18.7 billion
Others¥37.4 billion

Building construction¥9.2 billion
Civil engineering¥15.2 billion
Road civil engineering¥3.3 billion
Machinery¥1.8 billion
Infrastructure management ¥7.2 billion*¥1.9 billion
OthersOperations and maintenanceDe-contracting

Operating profit ratio* between contracting and de-contracting
Target for FY2030: 50:50
Result of FY2021: 81:19

4

Comprehensive Infrastructure Services Company
Alliance companies

Contracting

Operating profit configuration(FY2021)

Reinvestments and technical developments

Cooperating companies*Contribution amount to consolidated profits (See page 109 Glossary)

Expand and strengthen the business scope to all upstream and downstream areas, with contracting as the axis
Expand operations to all infrastructure fields with the focus
on de-contracting

UpstreamBusiness plan
Evaluation
Investments

Building materials
and equipment
Manufacturing
Sales

Plan setting

Procurement
Logistics

New construction

MaintenanceRepairManagement

RenewalInfrastructure
management

Reinvestments

Downstream

Strengthen and maintain engineering capabilities and advantages through contracting projects (construction, etc.)
Create opportunities and reduce risks by combining engineering and financing

Airports
Roads
ArenasWater and sewerage
concession
Harbors

R-tecconsultant

Open new areas utilizing our advantages and expand revenue (De-contracting infrastructure business)

MAEDA ROADMAEDASEISAKUSHO

Aichi Road Concession

MAEDA

Obtain stable and continuous returns and make further reinvestments

FBS

NICHIYUU
Fujimi Koken
TOYO CONSTRUCTION
JM

Public facilities...

Global InfrastructureManagement

The phrase “de-contracting” or “exiting contracts” includes not only our conventional contracting business, but also the intention to takeon business risk of projects as a construction vendor. Specifically, a business acquires the right to operate social infrastructures such as
airports, water and sewerage systems, and toll roads, and comprehensively manages all related businesses, such as its construction,
operation, and maintenance. Contracting business is a kind of fee-earning business, but infrastructure business with such investments
can also generate returns beyond contracting business by utilizing engineering and financial know-how. These will also lead to further
growth investments.

DX (digital links/back office)35

INFRONEER Holdings Inc.

36

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Three Business Models That Are Challenging the Future of Our Infrastructure

Six Business Foundations to Support Growth
Human Capital

3. Creation of Capital Recycling

Human resources who can create value through passion

Creation of Value Through Capital Recycling

Page 98, page 101 to page 102 Non-financial Information

INFRONEER will supply society with its infrastructures taking on development risks and generating long-term returns. Based on ourengineering capabilities we will create buildings and infrastructures all across the stages of planning, design, construction, andmaintenance and operation.
This makes it possible to do the following.
(1) Pass on equity to investors such as in pension funds while continuously contributing to operational management.
(2) Through PPP/PFI business, the government and local governments will invest in new infrastructures using the income obtained fromthe sale of operating rights.
Further, we will contribute to the revitalization of the energy market and the attaining of carbon neutrality by creating a high-quality
power generation business in the renewable energy market and supplying society. In this way, we believe that by proactively
implementing initiatives to recycle capital and to create a secondary market, we will contribute to solving the problems faced by thedevelopment and renewal of infrastructures, and pension finances.

[Ethics and compliance][Health and safety indicators (workers employed by our company)]• Types and number of complaints filed• Number of labor-related accidents (incidence rate) • Number of labor-related fatalities• Ratio of employees who have been trained in ethics and compliance• Percentage of health and safety training participants[Diversity][Human resource development]• Diversity of the workforce (gender, age, disability, nationality)• Investments in human resource training • Training time per employee• Content and participation rate of training sponsored by human resources department

Financial Capital

Offensive and defensive financial management

Pa ge 9 7 IR Inf or ma ti on
FY2021 results
Net sales: ¥682.9 billion; gross profit: ¥91.6 billion (gross profit margin: 13.4%); general administrative expenses: ¥54.1 billion; operating profit: ¥37.5 bil-lion

Government
Local government
Capital recycling froma government and local
government perspective

Investments(operating profit to net sales: 5.5%); ordinary profit: ¥38.0 billion (ordinary profit to net sales: 5.6%); profit: ¥26.7 billion (profit to net sales: 3.9%); equity: ¥346.9

Sale

Total of gains from the sale of cross-shareholdings: ¥7,808 million

Payment

Acquisition of treasury shares:
Accumulated treasury shares acquired up to April 13, 2022

2

Investments 1(1) Total number of shares acquired: 19,180,600 shares (2) Total amount of acquisition ¥19,999,983,864

Pension funds
and others

New infrastructuresand others
Infrastructure investment
multiplier effectbillion; ROE: ¥15.0%; EPS: ¥94.7; EBITDA: ¥69.1 billion; value-added: ¥140.2 billion

Private sector

Investments

Individual pensions,retirement benefits,
and others

Business Know-how

PPP/PFI(Concessions) Capital
recycling by renewableenergy businesses

Pa ge 6 7 Cha l l e nge s i n E xpa ndi ng the Inf r a str uc tur e B usi ne ss

Pa ge 6 9 Se gme nt I n tro d u ctio n

Achievements of designing, manufacturing, sales, rental and services of civil engineering, building construction, road civil engineering, infrastructure
management, construction machinery, and other related businesses

Domestic and International Bases

Providing Development Projects to Society (Secondary Market Creation)
FY2021 Sale of two solar power projects to infrastructure funds
FY2022 Sale of one wind power projects to an infrastructure fund

100 years of know-how, technology, and intellectual property

Community-based services

Pa ge 1 0 7 Compa ny Ov e r v i e w
[

M

A

E

[ M A E D A

DA] 44 domestic bases (16 head offices and branches, 28 sales offices), 15 overseas bases

R O A D ] 223 domestic bases (11 branches, 111 sales offices, 100 plants), 1 overseas base

[MAEDA SEISAKUSHO] 29 domestic bases (2 branches), 1 overseas base, 56 dealers

Global Infrastructure Management Co., Ltd.: Established Two Infrastructure Funds
As part of our efforts in the capital recycling model, together with TOKYU CORPORATION (hereinafter referred to as "TOKYU"), we have established
Global Infrastructure Management Co., Ltd., which plays a role in supporting infrastructures from a financial aspect. Utilizing the different strengthsof our own companies, which have been involved in the infrastructure business for many years, we aim to respond quickly and effectively to thegrowing market needs for new infrastructures in recent years. The company is responsible for providing financing and investment support for
infrastructure projects, mainly through its specialist human resources in the financial field. In Japan, many policies have been announced in recent
years such as promoting public-private partnerships and the introduction of renewable energy, aiming to promptly respond to infrastructure issues.
In June 2022, the Cabinet Office announced the “PPP/PFI Promotion Action Plan (Revised Edition, 2022)*.” We believe that the company’s role will
expand as attention focuses on new investment opportunities for capital needs and capital markets that are seeking stable cash flow.
In order further to develop businesses in the PPP (public-private partnerships) and environmental energy sectors and to foster the domestic
infrastructure capital market, the company has also made preparations for the establishment of two infrastructure funds in FY2021 forestablishment in FY2022. Specifically, they are the Asset Creation Fund Series (hereinafter referred to as "ACF") and the Income Fund Series(hereinafter referred to as "ICF"). The establishment of these two types of infrastructure funds to create and promote recycling of capital is also amajor step forward for our shareholder Tokyu, and our company in which to take the initiative.
Global Infrastructure Management Co., Ltd.

https://www.gimc.jp/

[

J

M

] 14 domestic bases (34 satellite offices), 3 overseas bases

Long-term Partnerships

Cooperating companies, alliances, customers

Pa ge 2 6 V a l ue Cr e a ti on Pr oc e ss Pa ge 2 9 Sta k e hol de r R e ma r k s Pa ge 6 9 Se gme nt I n tro d u ctio n[Cooperating companies] Civil engineering and building construction segment Zenyu-kai (number of member companies: 567), road civil engineering segment Kyoei-kai (number of member companies: 98), Rekiyu-kai (number of member companies: 57)[ A l l i a n c e s ] Nippon Telegraph and Telephone Corporation, Tokyu Corporation, Accenture Japan Ltd, Fukuoka Jisho Co., Ltd., GL events, AEG, and others[ C u s t o m e r s ] Government agencies, real estate companies, transportation infrastructure and energy companies, and others

Natural Capital

Earth

Pa ge 5 5 Ini ti a ti v e s f or the E nv i r onme nt[ E n e r g y ] Power (crude oil conversion) 39,119.445 kl, green power 4,538,000 kwh, heavy oil 47,856.01 kl[ M a t e r i a l s ] To be disclosed in FY2023[Water resources] To be disclosed in FY2023*See PPP/PFI Promotion Action Plan (Revised Edition, 2022) https://www8.cao.go.jp/pfi/actionplan/action_index_r4.html

37

INFRONEER Holdings Inc.

38

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Catalysts for the Early Establishment and Stabilization of Evolved Business Models
Accelerating Reforms Through DX

Ensuring a Competitive Advantage

INFRONEER's DX Strategy

Conversion to Holdings Structure

The essence of INFRONEER's idea of DX is to break through the traditional conventions embedded in the construction industry, not merely
to improve the efficiency of conventional businesses, but also to improve business management itself, to improve profit margins and toattain management stability.
By utilizing digital technologies, including contracting and de-contracting areas and back offices, INFRONEER is promoting DX
specifically by transforming into a comprehensive infrastructure services company as yet unseen in the world, that provides low-cost,high-quality infrastructure services worldwide from construction to operation.

In October 2021, the three MAEDA Group companies (MAEDA, MAEDA ROAD and MAEDA SEISAKUSHO) shifted to the Holding structure andestablished INFRONEER Holdings, through a business integration.
INFRONEER Holdings is responsible for medium- to long-term strategy planning for the entire Group, ensuring stable capital through IR
activities, and enhancing our business portfolio through effective capital allocation. Furthermore, with a focus on business management based on
growth and capital profitability, we aim to build a system that achieves Group-wide added value and ROE goals through timely decision-making.
In addition to being able to focus on their own core businesses as well as operating autonomously, the companies will accelerate collaborative
participation in high-compatibility business areas that had previously been difficult for individual companies, and improve corporate value for theentire Group.

INFRONEER’s DX

Businesstransformation

Digital technology(1) Efficiency of conventional business(2) Advanced business management(3) Profit margin improvement(4) Stabilized management

Application area

Specific measures

Contracting area

(1) Management decisions and performance fore-casts that utilize real-time production information(2) Improving accuracy of costings and estimations by analyzing actual data
(3) Minimization of lost profits by analysis and feedback of rework risks

De-contracting area

(1) Digitization of operational information and business processes(2) Visualization of various operational information, including history of EAM inspections and repairs(3) Improving the quality of infrastructure services and reducing costs, and maximizing operating profits

Breaking away from the customs of theconstruction industry

Back offices

Transformation into comprehensive
infrastructure services company(1) Thorough elimination of inefficient work, mini-mization of general administrative
expenses by BPR1 and BPO2 using digital technology(2) Conversion to a more profitable structure throughout the organization by distributing resources from the cost center
1 Optimization of business processes

Synergy = Expansion x Centralization (centrif ugal f orce and cent r i pe t a l for c e )From now
Until now
Role of

Role of MAEDA

Role of MAEDA

2 Outsourcing of business processes

In construction and production, it is necessary to assemble a tailored, optimal production process based on different project conditions andflexibly dealing with uncertainties such as market conditions and the weather over a long period of time. For that reason, it has been difficult tomake predictions and to standardize, and the process of making judgments and decision-making also tended to be based on personal knowhow. At INFRONEER, we are transforming these traditional approaches into data-driven mechanisms wherever possible, thereby ensuring morereliable management decision making.
In the civil engineering, building construction, and road civil engineering segments of the contract area, we will focus on construction costdata, share in-formation including costs with stakeholders, and aim to stabilize our income structure by agreeing on ap-propriate costs and fees.
In the area of de-contracting, we aim to expand our business to all areas of infrastructure operations, regardless of the country or
region. Aichi Prefecture toll roads have introduced EAM (Enterprise Asset Management System), and implementing data-driven
management decisions, including repair plans based on inspection and repair history. In the future, we will improve the quality of
infrastructure services and reduce costs to maximize operating profits while utilizing construction and production data accumulated in thecontracting area.

Role of
MAEDA ROAD

Role of
MAEDA
SISAKUSHO

Role of
MAEDA ROAD

Role of
MAEDA
SISAKUSHO

Domestic and International Offices and Regional Networks Providing Comprehensive Services
In addition to the headquarters of each business company in Japan and overseas,
INFRONEER has its own base and regional network that realize comprehensive responses
such as our sales offices for MAEDA ROAD and the satellites (franchise companies) of JM (a100% subsidiary of MAEDA). We aim further to strengthen our business base and ensure
our competitive advantage by utilizing and collaborating with this regional network.

Collaboration with Business Partners
In our collaboration with Accenture, we are committed to eliminating inefficient operations in the back-office sector and to BPR and BPO
using digital technology. We are focusing on conversion to a more profitable structure throughout the organization by distributing
resources from the cost center. In order to maximize acceleration of digital utilization, we will proactively expand collaboration with ourpartners that have leading-edge technologies, such as Accenture and NTT DOCOMO.
Collaborative Structure at INFRONEER Holdings
Board of Directors/Executive Officers
NTT DOCOMO

Accenture

Collaboration
Road operations

IT & DX Strategy Meeting

Collaboration

IT/DX Strategy OfficeConstruction and infrastructure
Back offices

Sharing DX policies and strategies
MAEDA

MAEDA ROAD

MAEDA SEISAKUSHOINFRONEER Digital
Solutions

Collaboration with and Support for Business Partners
In addition to internal strengthening through M&A, and the like, we will accelerate problem-solving in a wider range of areas throughbusiness alliances to supplement deficient areas of shortage, collaborative and joint technical development with partner companies thatcan share strategies, and investment in business partners that understand our strategies. In addition to establishing long-term
partnerships by enhancing our economic and human resources, and technical support for cooperating companies, we will proactively
develop future partners through investment in future venture companies (Page 62 Revitalize the Community and Support Partners).
Business Portfolio Management and Competitive Advantage
In pursuing the enhancement and utilization of the strengths of contracting and de-contracting, and in promoting the expansion ofsegments and areas (enrichment), we intend to accelerate reforms through strict business portfolio management by Holdings, and throughDX. We will evaluate each business by combining market growth potential with ROIC, and optimize the allocation of management
resources based on timely and rational judgments and decision-making.

Contracting back office work

39

INFRONEER Holdings Inc.

40

Chapter 3

INFRONEER's Business Plan
The Group's overall strategy as an "integrated infrastructure service
company," which manages infrastructure operations from upstream todownstream as a one-stop service
Page 43 Roundtable Discussions of Financial and Corporate Strategies with Executive Officers
Page 47 Overview of INFRONEER Medium- to Long-term Vision
Page 50 Capital Policy and Dividend Policy

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Roundtable Discussions of Financial and Corporate Strategies with
Executive Officers

Keiichiro Hashimoto

Discussion meetingE x pa n d i n g I n f r a s t r u c t u r e I n v e s t m e n t s W h i l e Set t i n g u p a
St r u c t u r e f o r I N F RO N E E R

We held roundtable discussions with the executive officers responsible
for financial strategy and corporate strategy, and the chairman of theBoard of Directors on INFRONEER Holdings' underlying governance andRyuji Endo

initiatives regarding finances, management planning and ESG.

We will adopt a holding company structure to
give clarity to the evolution of our governance.

Shinya Sakaguchi

43

Sakaguchi: We have held comprehensive discussions on theinstitutional design of our new company, INFRONEER Holdings,
recognizing that the most important thing in maximizing our corporate
value is our governance structure. We came to the conclusion that acompany with a nominating committee monitored by the Board of
Directors, comprising a majority of outside directors, is the mostsuitable structure to achieve our goal of speed in a drasticallychanging business environment.
Hashimoto: I was appointed the chairman of the tentative Nominating
Committee through a detailed process before INFRONEER Holdings
was established. There were more than 20 candidates for directors
and executive officers. We prepared detailed work histories andpersonnel evaluation reports. Following each presentation, fivetentative Nominating Committee members asked detailed questions toevaluate the candidates in accordance with the requirements specified
by the tentative Board of Directors. This process was repeated foreach of the candidates, and each time we held discussions among thecommittee members and submitted written answers to the tentative
Board of Directors. Those members selected by the tentative
Nominating Committee became the directors and executive officers of
INFRONEER Holdings when it was established.
Sakaguchi: It is now more than six months after INFRONEER Holdings
was established. What is your opinion of our governance as a
Chairman of the Board of Directors?

Hashimoto: Looking at the Board of Directors from my position as
Chairman, since INFRONEER Holdings was established on October 1of last year, we are constantly reviewing its structure and issues. I feelthat our ability to take action speedily and without hesitation is very
good. Let me also ask you, from your executive perspective, what isyour opinion of the Board of Directors and the operation of the threecommittees?
Endo: Because the majority of directors are outside people,
relationships in the Board of Directors and the three committees are
more tense than in the business company. The chairman is skillful inobtaining opinions from all the directors. I think that the discussion ismore lively than ever before. Also, outside directors can also speak on
the basis of their professional knowledge in their respective fields,
and as the executive officer responsible for finance in a company witha high demand for capital, their advice on financing methods, balanceof liabilities and capital and other financial aspects is very helpful.
Sakaguchi: As Chairman Hashimoto pointed out, our governancestructure is developing. The biggest reason for shifting to a company
with a nominating committee was to increase the speed of execution.
Establishing INFRONEER Holdings immediately maximized theauthority of the Board of Directors, but this is gradually beingtransferred to the Board of Executive Officers. I think the same is true
for the three committees.
Hashimoto: In particular, it's also important how we make investment
decisions in the infrastructure management business, which is ourbiggest growth driver.
Sakaguchi: I agree. The infrastructure management business,
including concessions, should be understood not only by MAEDA, butalso by the entire Group. Initially, all the projects were discussed by
the Board of Directors. However, from the viewpoint of increasing
speed, we are considering transferring the authority to the Board of
Executive Officers while keeping our eyes on the status of each case.

INFRONEER Holdings Inc.

44

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Round-table Discussions with Executive Officers of Financial and Corporate Strategies

In addition, although we are currently using MAEDA's investment
standards for evaluation, the economy and society are constantly
changing, so we want to create investment standards for INFRONEER
Holdings as soon as possible.

We will promote the aims of INFRONEER Holdings bylinking corporate planning department and financedepartment so that they can play a central role.
Endo: As an executive officer responsible for finance, my biggest
responsibility is to support the financial achievements of our
INFRONEER Medium-term Vision to improve our corporate value. Of
particular note, I will steadily advance our capital strategy and return
policy as we have promised to our stakeholders, with an eye on
FY2024. Currently, we are progressing faster than we had expected,
but we want to continue to maintain a sense of tension in our work.
There are many issues to be addressed, such as how INFRONEER can
reduce capital costs as Holdings, and the search for an optimal
portfolio balance sheet for sustainable growth, but we will continue tomake steady progress with the entire Group.
Sakaguchi: As the executive officer responsible for corporate
strategy, I will be proactive in promoting investments that area sourceof competitiveness in order to improve our corporate value. In addition
to investing in our infrastructure management business, I will expand
M&A, IT and DX investments, and our investment in human resources.
We have announced the INFRONEER Medium-term Vision covering theperiod up to FY2024 and the INFRONEER Medium- to Long-term
Vision covering the period up to FY2030. I believe that the key toachieving these is implementing growth investments.
Hashimoto: When large projects such as concessions are offered asplanned, I think that they will be the key to finance. For example, whatkind of balance sheet structure will be used? I hope that the balance
between our corporate planning and financial departments will decide
what kind of procurement is desirable for our business plan.
Sakaguchi: I agree. The basic structure is centered around eachbusiness department responsible for the contracting business and thede-contracting business, and they will support it by linking with thecorporate planning and finance departments. Also, while INFRONEER
Holdings maintains an optimal balance between centripetal andcentrifugal forces, we are committed to implementing various
measures to improve the Group's corporate value as a whole.

Earning half of our operating profit in theinfrastructure management business in the future
Sakaguchi: We announced the INFRONEER Medium-term Vision andthe INFRONEER Medium- to Long-term Vision on October 1 last year.
The framework is based on the Medium- to Long-term Business Plan,

NEXT 10, announced by MAEDA in FY2019. We had a lively discussion
with three companies based on NEXT 10, and considered how we
could improve our corporate value in the context of future changes inthe business environment. Looking at anticipated changes in thebusiness environment, we set specific numerical targets, including an
operating profit of ¥100 billion, together with our future aims. Next,
we analyzed our current situation clearly, centering on the type oforganization we want to be, and incorporated strategies and tactics
that would allow us to fill the gap. Naturally, we cannot solve allissues only with our internal resources, so we have incorporated
policies that use external capabilities proactively. For example, in thecase of DX, we are thinking of responding promptly to the speed ofchanges in the business environment by partnering with Accenture
Japan Ltd.
Hashimoto: I think that you were able to predict the demand forconventional construction to some extent when you formulated theplan, but I think it is very difficult to predict in infrastructure
management businesses such as concessions. What were thedifficulty areas?
Sakaguchi: Yes. In the INFRONEER Medium- to Long-term Vision, we
indicated how the public-private partnership market will expand as amarket for infrastructure management businesses. For example, by
FY2030, the public-private partnership market is estimated to expand
to about ¥1.6 trillion, and to about ¥170 billion in terms of theavailability payment method*, and in total, to approximately ¥1.8
trillion. There was also some debate about whether it would reallyexpand that much. However, on June 3, this year, the Cabinet Officeissued the "PPP/PFI Promotion Action Plan (Revised Edition, 2022),"
which showed a market scale of ¥30 trillion over 10 years. I think there
is a difference in definitions, but it is a market size forecast that far
exceeds our forecasts. We were able to reconfirm that our direction iscorrect.
We also aim to earn half of our FY2030 operating profit target of ¥100
billion in infrastructure management. We understand empirically that it
is also very difficult to predict the demand for conventional construction.
Conventional construction demand is a highly volatile market that isheavily affected by the external environment. Recognizing that themarket is on a declining trend in the long term and fluctuates greatly, I
believe that increasing the ratio of infrastructure management, which
can reliably be anticipated to grow in the market, is a way tocontinuously improve the Group's corporate value as a whole.
Our employees are the driving force in increasing corporate value.
Therefore, at the same time as our message to the market aiming for
an operating profit of ¥100 billion, we also sent a message to ouremployees that their remuneration would be set according to theCompany's performance. We have committed to this internally andexternally. In addition to remuneration, we will improve trainings andsystems for employees, and proactively invest in our human resources.
Hashimoto: Your aggressive growth strategy aims to achieve morethan a 12% ROE in FY2030. Is that correct?
Endo: Yes. We are not aiming to expand our profit by inflating ourbalance sheet. For ROE, we aim to achieve more than 12% in FY2030
in our INFRONEER Medium- to Long-term Vision. Firstly, we arecommitted to achieving 9.5% for the entire Company in the
INFRONEER Medium-term Vision by FY2024. In addition to improving
our operating profit margin, our capital strategy is to reduce our net
asset ratio for our cross-shareholdings to less than 20%, D/E ratio to
0.6 times or less, equity ratio to 30% or more and ¥40 billion as atreasury share acquisition by FY2024. We aim to expand our profit
while working to strengthen our constitution.

Organizing efforts to date to build an ESG strategy
Sakaguchi: We implemented initiatives for ESG at each businesscompany, but the entire Group has organized E and S initiatives so far.
We will dig deeper into the parts that are insufficient, formulate
strategies and tactics, and prioritize our responses. We believe thatafter the flow of this series is in place, we will have an INFRONEERGroup ESG strategy.
Hashimoto: I think that a significant part of our company's businessis worth E and S. Japan's total infrastructure assets amount to ¥800
trillion, and it is aging significantly. It is now clear to everyone that
accidents occur frequently because of the aging infrastructure, so I
think that updating these is the biggest S initiative. In addition,
infrastructure management businesses such as renewable energy
have been sold to the secondary market for operation by financial
institutions. If this continues and local residents are allowed to invest
on their own, they may start to realize that they are supporting the
local infrastructure on their own. Enriching the secondary market isvery important in the sense of connecting E and S.
Sakaguchi: Actually, at our Group company, we have alreadylaunched two infrastructure funds last year and this year. In the
future, we are working with the idea that we will create a secondary

market. Right now, we are only dealing with renewable energy
projects, but in the end, we want to add concession projects as well.
As J-REITs have combined finance and real estate, we want not only
to revitalize aging infrastructure by fusing finance and infrastructure,
but also to provide new infrastructure services to society. Various
projects have already been launched to achieve this object.
Endo: As far as finance is concerned, ESG initiatives are becoming
increasingly important from the viewpoint of how to raise capital to
implement our INFRONEER Medium- to Long-term Vision. While there
are capital investments in environmental issues, we also conduct
renewable energy projects and concession projects. It is necessary to
optimize financing for each. We are positioning the Earth as one of our
stakeholders. MAEDA has paid dividends for the Earth (2% ofconsolidated profit for the fiscal year), but we have a policy tocontinue as INFRONEER Holdings as a whole.
Hashimoto: In addition to the perspective of ESG, the infrastructure
management business has a stock effect on the safety and security ofpeople and society. Furthermore, it has a flow effect of promoting
infrastructures that were abandoned for financial reasons throughpublic-private partnerships. It is also a grand attempt to expand
previously stagnant infrastructure investments by introducing new
methods such as availability payments with the help of the private
sector. So we believe that we can reliably move forward with ourbusiness.
Sakaguchi: The Company logo is INFRONEER ARROW. The thought
behind the logo is to open up the future for infrastructure and toachieve a world where there's no limit to what can be asked from andwhat can be delivered by infrastructure services. The dynamic motif
expresses our willingness to take on the challenges of our establishedconcept and to innovate. Along with our company name which carries
our philosophy as infrastructure innovator, pioneer, engineer at thefrontier in each era, all employees of the Company are united inworking for a world where there's no limit to what can be asked fromand what can be delivered by infrastructure services.

Shinya Sakaguchi (photo left)
Joined MAEDA CORPORATION in 1999; after working in the field, design, and research, served asGroup Director of the Corporate Planning Department and General Director of the General Planning
Department in 2017; became Executive Officer and Deputy General Manager of the Management
Innovation Division in April 2020; became Executive Director of INFRONEER Holdings in October 2021.

Keiichiro Hashimoto (photo center)
Joined The Mitsubishi Bank, Ltd. (now MUFG Bank, Ltd.) in April 1974; served as Director, Executive
Officer, Executive Vice President and Chief Financial Officer (CFO) of Mitsubishi Motors Corporation inJune 2003; served as an Outside Director of FANCL Corporation in June 2020. In October 2021,
became an Outside Director of INFRONEER Holdings, Chairman of the Board of Directors, andChairman of the Audit Committee.

Ryuji Endo (photo right)
Joined MAEDA ROAD CONSTRUCTION Co., Ltd. in 1986; served as the Manager of the Accounting Section
at the Head Office and the General Manager of the Accounting Department; in April 2019, became the
Executive Officer, Deputy General Manager of the Administration Division and the General Manager of the
Accounting Department. In October 2021, became Executive Officer of INFRONEER Holdings.

*Page 109 Glossary

45

INFRONEER Holdings Inc.

46

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Overview of INFRONEER Medium- to Long-term Vision
The Organization as Envisioned by INFRONEER

Three Strategic Pillars and Important Measures• Prioritize our promotion as an "integrated infrastructure service company" that manages both upstream and downstream in theinfrastructure operation business aiming to establish a business model that achieves sustainable growth unaffected by external factors.
• Create a stable and highly profitable revenue base by uniting the engineering know-how of each Group company, expand our businessfields by M&A and reinforce competitiveness.
• Aim to be a company trusted by all our stakeholders by establishing an effective corporate governance structure, promoting Digital
Transformation (DX), ensuring prompt and appropriate management and reinforcing our "ability to deal with social changes."

To achieve our envisioned organization, we have formulated key measures for each strategy with productivity reforms, establishing a newrevenue base, and strengthening and improving our physical structure as the three pillars of our strategy.

Take the entire life cycle as a business area

Downstream

Four keys to demonstrating competitive advantages (our strengths)
Engineering
capabilities
accumulated to date

Performance andknow-how ininfrastructure
operations

Financing capabilities
based on minimizing of
LLC* and appropriate
risk assessment

Regional networksof each company

Strengthening our ability to respond to changes• Ability to respond quickly and appropriately with ICT and DX• Expand business areas through proactive M&A• Strengthen support for ESG and SDGs
• Faster decision-making through delegation of authority

Ability to respondto social changes

Reinvestments

Operations
andmaintenanceLarge-scalerenovation

RenewalConstruction

Manufacturing
andprocurement

Planning and design

Planning and proposal

Added value
UpstreamStrengthening our governance• A company with a nominating committee, etc.
• Setup with a majority of independent directors• Chairman of the Board of Directors is an independent,
outside director• N om i n at i n g , C om p en s at i on an d A u d i t Com m i ttee
chairpersons are independent, outside directors• Ensure that our human resources are diverse.

Establishing a high income
and a stable, new revenue
base

One-stop management throughout the infrastructure life cycle of any project

Strengthening our ability to respond to social changes

Earning the trust by all our stakeholders

Holdings' business model: Integrated infrastructure service company

Envisioned organization

Required elements

Three strategic pillars

Important measures• Maximizing added value

Profitability

Productivity reforms• Optimizing fixed expenses andadministrative costs• Promoting Group financial strategy

Rationalization
Efficiency

Establishing a newrevenue baseStrengthened
Group power

Creditworthiness
Reliability

Physicalstrengthening andimprovement

Promptness• Establishing a position at home andabroad in infrastructure services• Further expanding business areas• Promoting a Group human resources
strategy• Strengthening governance*LCC: Lifecycle Costs

Specific Medium- to Long-term Measures in the Three Strategic Pillars
Establishing a high income and a stable, new revenue base

Ability to respond to social changes

Three strategic pillars

Important measures

Becoming a company trusted by all our stakeholders
Maximizing added value

Basic Policy for INFRONEER Medium-term Vision

Productivity reform

Measures that will be of particular focus in the infrastructure construction phase for significant growth after FY2025(INFRONEER Medium-term Vision 2024)

Pursue Group synergy

Establish a system for new
business areas

Promote DX/shared services

Improve competitive power

Mutual application of the performance and know-how of the Group companies

Strengthen business infrastructure

Maximum utilization of Group regional/customer networks at each company

Ensure quality shared ability

Integrate cooperating company information at each company in the Group and strengthen
cooperation

Reduce costs

Effectively utilize Group assets (elimination and consolidation)

Improve competitive power in infrastructure
operating markets
Expand the renewable energy business

Optimizing fixed expenses andadministrative costs
Promoting a Group financial strategy
Establishing a position at home
and abroad in infrastructureservices

Establishing a newrevenue baseAmalgamate the strengths of the Group companies' technical capabilities, infrastructure
operation performance and know-how, finance capabilities and regional networking capabilities

Further expanding businessareas

Accelerate the renewable energy business to date

Expand business areas

Fuse together the business areas of each Group company

Reduce costs by sharing services

Consolidate duplicate business processes in each Group company, sharing and streamlining
functions, and shifting resource to department creating value-added services.

Use digital technology to advance business andmake it more efficient.

Aggregate and centralize management of data at each company in the Group

Promoting a Grouphuman capital strategy

Physicalstrengthening andimprovement
Strengthening governance

Promote M&A

47

Complement insufficient areas through M&A

Use M&A to rapidly complement areas that are insufficient (upstream and downstream areas,
fields, and others) but necessary for an integrated infrastructure service company

ESG

Specific measures

ES

Share application of the performance and know-how of the construction contracting business and the infrastructure management business to improve competitiveness.

ES

Use regional/customer networks at each Group company to the full to strengthen the business base (including global expansion)

ES

Reduce procurement costs through Group collaborative procurement and centralized purchasing

S

Ensure stable and good quality supply capabilities by integrating cooperative company information from each company in the Group, and strengthen our cooperation.

S

Introduce digital technologies across the entire Group to maximize productivity in all businesses

ES

Improve the quality and speed of R&D by bringing together the strengths and know-how developed by each company in the Group.

G

Improve our rate of return by executing growth investments with a focus on capital efficiency.

G

Consolidate duplicate business processes in each Group company, sharing and streamlining functions, and shifting resources to departments creating added value.

S

Make business more efficient and advanced through aggregation and unified management of data possessed by every company in the Group, and use of digital tools.

EG

Optimize fixed expenses by using Group assets effectively (elimination and consolidation).

G

Minimize capital costs by integrated operation of Group capital.

ES

Improve our competitive power in the infrastructure operation market by assembling the strengths of our technical capabilities, infrastructure
operation performance and know-how, financing capabilities and regional networking capabilities from each company in the GroupSG

Extensively develop the infrastructure management business in Japan and overseas by maximizing use of each Group company's networks.

ES

Expand the renewable energy business to support the creation of a decarbonized society and the development of sustainable and autonomous local communities.

ES

Expand business areas by sharing the Group's diverse strengths (technology, know-how and networks).

ESG

Complement insufficient areas through M&A and expand business areas

ESG

Actively recruit specialized human resources that will become an immediate fighting force, and rapidly expand into new business areas.

SG

Improve employee motivation by monitoring engagement surveys and feeding back to management policy.

SG

Improve employee job satisfaction and motivation by proactively investing in human resources training and improving the personnel system.

ESG

Disseminate our management philosophy and establish CSV thinking through joint training and dialogs with management.

S

Promote sustainable growth of individuals and companies by acquiring and developing strategic human resources across the entire Group.

G

Speed up management by introducing transparent, fair, prompt and decisive decision-making mechanisms.

ESG

Strengthen compliance awareness through continuous training.

SG

Develop a strong and effective governance structure that contributes to improving our corporate value

SG

Adopt a corporate culture in which diverse human resources can play a role by promoting diversity.

INFRONEER Holdings Inc.

48

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Overview of INFRONEER Medium- to Long-term Vision

Capital Policy and Dividend Policy
Management Target Values

Capital Strategy and Return Policy

We aim to achieve net sales of more than ¥1.2 trillion, an operating profit of ¥100 billion or more (operating profit margin of 8.0%
level), profits of ¥70 billion or more, and a ROE of ¥12% or more by FY2030.

We will set targets for capital efficiency, optimal capital structure and shareholder returns, and implement countermeasures on a regularbasis, giving top priority to improving our corporate value.
INFRONEER Medium-term Vision 2024

Base building phase

Growth phase• Pursuing Group synergy• Building a system for new
business areas• Promoting DX/shared services• Promoting M&A• Expanding concessions in Japan and overseas• Increasing availability payment contracts• Improving productivity through DX/shared services• Further promoting M&A

Target for FY2030
Returns toremuneration according
to performance

30

25

100

100 billion or more

¥

40

36

70 billion or more
Shareholder
returns

ROE

12 % or more

(8.3)

FY2021 and beyond

FY2022

FY2024¥6.6 billion goodwill from
MAEDA ROAD TOB,
¥1.7 billion amortization ofmachinery, etc.

FY2027

Transition to International
Financial ReportingStandards (IFRS) in FY2023

FY2030*Unit: Billions of yen *Profit figures assume the application of IFRS (including profit from sales, profits from application of equity method, and M&A without goodwill amortization)

FY2022

FY2024

Net sales

757.5

Net sales

875

Gross profit

101

Gross profit

114.5

26

Civil engineering1

25.5

Building construction1

31

Infrastructure management2

5.5

Infrastructure management2

11.5

Road civil engineering3

35

Road civil engineering3

38.5

Machinery4

7.5

Machinery4

Others55

Pay increase according to performance (for cost)-1.5

General administrative expenses
Pay increase according to performance (included in general administrative expenses)
6

50.5
(1.5)
50.5

Operating profit

36

Profit101

50.5

Others5
Pay increase according to performance (for cost)-6.0

General administrative expenses
Pay increase according to performance (included in general administrative expenses)
659Profit40

Gross profit

114.5
50.5

55.5
(4.0)

Operating profit

Pay increase totals

Operating profit

Assetefficiency

30% or more

Purchase of treasury
shares¥

Cross-shareholdings /net
asset ratio

20% or lower

Sale of owned assets

Carefully examine the status of use of the Group’s owned assets and the like, and consider selling or
integrating inefficient assets

Implement while remaining aware of the following situations:

40 billion or more by FY2024• Capital efficiency• Optimal capital structure• Returns to remuneration• Growth investments• Degree of achievement of profit goals• Indices such as ROE
Use WACC (weighted average cost of capital) as a guide toinvestment efficiency; constantly review the reasonableness ofholding, and sell

Cash Flow

Cash In (Total up to FY2024)

Sale of crossshareholdings¥20 billion to¥30 billion

55.5

Sale of noncurrent assets

constantly review the reasonableness of holdings,
and sell.

assets and the like, and consider selling or
integrating inefficient assets.
• Implement effective and timely sale of subsidiary/
SPC (special purpose company)* shares.

Appropriate
procurement ofinterest-bearing
debt

Operating profit

59

Cash flow frombusiness profits¥170 billion to¥180 billion¥36 billion scale in three years• Reduce procurement costs by unifying funding as aGroup
• Effectively utilize interest-bearing debt with a focus
on capital efficiency.

Pay increase totals

10Cash Out (Total up to FY2024)• Infrastructure management business (EIRR10% or higher)• Use WACC as a guide to investment efficiency;• Examine the status of use of the Group’s owned

5

Generaladministrative
expenses3

Dividend payout ratio• Improve profitability in existing businesses• Ensure stable revenues in the infrastructure
management business.

Returns that link to improved
corporate value

Gross profit

0.6 times or less9

*Unit: Billions of yen 1. MAEDA (non-consolidated); 2. Considering profit increase due to profit from sales and M&A; 3. MAEDA ROAD (consolidated); 4. MAEDA SEISAKUSHO (consolidated); 5. MAEDA subsidiaries;
6. Profit figures assume the application of IFRS (Amortization of goodwill is not recorded)

Generaladministrative
expenses

D/E ratio

Investments that are a source ofcompetitiveness

Building construction

Utilize interest-bearing debt in a flexible and effective manner while
maintaining financial soundness• We will verify the Group’s owned assets, including cross-shareholdings, and add to the cash flow from business profits.
• We will implement timely shareholder returns based on capital efficiency, an optimal capital structure, returns to remuneration, growthand constant investments and achievement of profit targets.

Performance Target Values

23.5

30% or more

30 % or more

8.0%level

1

Equity ratio

Improve business profits by efficient investments

Dividend payout ratio

Operating profit margin

Civil engineering1

Optimalcapitalstructure¥

Operating profit

57

50.5

9.5%

Profit*
70

59

ROE

Operating profit*

80.5
10

Capitalefficiency

Growthinvestments¥105 billion to¥110 billion• M&A¥50 billion scale in three years• Investment in IT and DX (ROI 3.0 or higher, etc.)¥8 billion scale in three years• Switch to environmentally friendly systems and installhigh-efficiency production facilities.

Permanent
investments¥45 billion to¥55 billion

Shareholder
returns¥60 billion to¥70 billion• Invest in office buildings and production equipment in aplanned manner, while eliminating or consolidating
duplicated Group assets.

• Implement while remaining aware of the following
situations:
Capital efficiency
Optimal capital structure
Returns to remuneration
Growth investments
Degree of achievement of profit goals
Indices such as ROE• Dividend payout ratio 30% or more
• Acquire ¥40 billion or more of treasury shares by FY2024*SPC (special purpose company): A company whose purpose is to operate a certain business. In the INFRONEER Group, this includes operating companies such as the concession business.

49

INFRONEER Holdings Inc.

50

Chapter 4

Initiatives for Safety,
Security and Reliability
Initiatives for ESG to solve infrastructure problems
Segment strategies and related initiatives
Page 53
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Page 93

ESG Strategy
ESG Strategy - Environment
ESG Strategy - Society
ESG Strategy - Governance
Challenges in Expanding the Infrastructure Business
Segment Introduction
Segment Introduction - Civil Engineering Business
Segment Introduction - Building Construction Business
Segment Introduction - Road Civil Engineering Business
Segment Introduction - Infrastructure Management Business
Segment Introduction - Machinery Business
Segment Introduction - Main Related Businesses (Others)
Bases for Generating Synergies - ICI General Center -Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

Promote ESG Strategy

Promote ESG strategies for creating sustainable value

Build an offensive and defensive environment-conscious society

E

Reduce greenhouse gas emissions andbuild a decarbonized society

In addition to initiatives to recycle resources andand introduce efficient, leading-edge technologies,

reduce greenhouse gases in the business value chain itself, we will also promote new renewable energy businesses to develop
and construction methods that contribute to reducing our environmental impact (see page 33 “Materiality”).

Approve TCFD recommendations anddisclose information

In accordance with the TCFD* framework, we willon responding to climate change risks andanalyze the financial impact of climate change, and disclose climate-related information in line with TCFD's recommendations
opportunities (published: June 30, 2022 on our website).

Strengthen environmental management

We took over “Environmental Management No.
"Dividends for the Earth (page 58),"continue and1,” which MAEDA Group advocated in 2009. As part of the overall initiatives of INFRONEER Holdings, we will implement thestrengthen efforts to preserve biodiversity and build a society that coexists with nature.

Environment*See page 107 “TCFD”

Produce value-creating human capital, build a mutually respectfulSsociety, and pursue ease of work and value of work

Contribute to solving social issues

We will work to resolve social issues and promoteensure a stable supply capacity through management

regional revitalization by participating in public-private partnership projects including the concession projects, and we will
support and human capital development for cooperating companies that are our partners.

Formulate a Group human capital
strategy

We formulated a Group human capital strategy withcapital (page 59). We will improve employee
properly assign human resources, and make strategic

the aim of increasing added value and improving corporate value through the sustained generation of value-creating humanengagement by building a corporate culture and system in which diverse human resources can play an active role, and will
investments in training our employees to improve our human capital.

Formulate a Group human rights policy

We published our INFRONEER Group Human Rights
We will provide all our officers and employees withactivities.

Policy on our website on June 30, 2022, recognizing that our business activities may directly or indirectly affect human rights.
appropriate training and education and will disclose relevant initiatives to ensure effective execution of our overall corporate

Society

Develop strong and effective governanceG
Governance

53

Strengthen the governance structure

We are strengthening our governance structure bymanagement skills. Each committee is chaired by anincreasing the ratio of outside directors (50% or more) and establishing a company with a nominating committee with diverse
independent outside director.

Establish effective structure andinitiatives

We will set up a Sustainability Committee, build aeffective structures for the environment, compliance,

governance structure for ESG, and work to achieve our goals in the medium to long term by employing the PDCA cycle to create
risk management, diversity, and other aspects of the entire value chain.

Allocate management resources
appropriately

We will allocate management resources accurately,
business models that challenge the status quo for the

speedily and with transparency, to each business segment that maximizes added value (maximizes corporate value) using
future of our infrastructure.

Use diverse investment funds

We will increase efficiency and speed with use of afinancial strategy that leverages diverse investment funds, not just our own, through an Investment Committee.

INFRONEER Holdings Inc.

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Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

Environment
The INFRONEER Group is moving forward with initiatives from a long-term perspective, focusing on decarbonization, resource recycling,
and coexistence with nature, to enable the sustainable use of and symbiosis with natural capital, which is our business base. In addition,
we are promoting activities through INFRONEER's own "Dividends for the Earth."
Initiatives for a Decarbonized Society• Policies and Philosophy Regarding Climate Change
As the world moves towards economic recovery after the convergence of the pandemic, we are raising greenhouse gas reduction targets
and accelerating the transition to a decarbonized and recycling economy. In the business environment surrounding us, we recognize thatthe new market for carbon neutral initiatives will expand rapidly in the maintenance, repair, renewal and new construction infrastructure
fields through public-private partnerships. We have set out a target value for CO2 emissions at zero by 2050 and we are driving forward
our initiatives.

• Reduce Greenhouse Gas (GHG) Emissions Across the Entire Value Chain
The Group is moving towards “carbon neutral 2050” by reducing emissions across the entire value chain. Going forward, in theinfrastructure management business, we will aim to build a one-stop management to reduce environmental impact by building an
mechanism for exchanging and sharing information to increase the effectiveness of GHG emissions reductions among our suppliers andstakeholders in the value chain. In FY2021, we received third-party assurance for our GHG emissions calculation reports (INFRONEER
Holdings supply chain emissions in FY2020). We plan to issue ESG bonds, and the first green bond will be issued in September 2022.
Main CO2 Emissions in Our Upstream and Downstream Business Activities

Upstream

Our company

Downstream

Scope 3

Scope 1

Scope 3Category 1

Direct emissions by fuelcombustions

Category 11

Commissioned construction andpurchased materials• Disclose Climate-related Information Based on TCFD Recommendations
Board of Directors

Governance
The Group recognizes climate change as one of the key management issues
and a major risk. While we have a strong sense of crisis, we also view it asan opportunity and will implement concrete initiatives to achieve our
INFRONEER Medium- to Long-term Vision. Our basic policies and issues
related to climate change are regularly reviewed by the Sustainability
Committee, and we have a structure in place to ensure proper oversight by
the Board of Directors.

ReportCapital goods

Supervision and Guidance

Sustainability Committee
ReportInstruction

Responsible department in INFRONEER (CSR andEnvironment Department, Corporate Strategy Department)
Report

MAEDA

Fuel and energy related activities
not included in Scopes 1 and 2

Scope 2
Indirect emissions by use ofpurchased energy

Transport, delivery (upstream)
Processing of waste generated
operation

End-of-life treatment of soldproducts
Leased assets (downstream)
Transport, delivery (downstream)

Scope 3Business travel

Instruction

MAEDA ROAD

Emissions associated with the useof our constructions and products

Employee commuting

MAEDA SEISAKUSHOScopeStrategy
The Group recognizes that climate change is having a significant impact on its business. After identifying changes in the social environment
and markets, we identified, analyzed and evaluated risks and opportunities related to migration and physical changes. In the past, we havebeen proactive in solving environmental and social issues in our businesses with the development of a renewable energy businesses. We
will continue to add value by expanding these businesses to support a decarbonized society and sustainable and autonomous local
development, with the aim of sustainable growth for the company. We will not only expand our renewable energy businesses as a supplier,but also, as a consumer of large amounts of energy, contribute to building a decarbonized society by reducing carbon emissions throughthe development of technologies for conserving energy, and by introducing wooden structures and buildings.
Risk Management
This indicates risks, opportunities, and responses related to migration and physical changes based on the assumed climate change scenarios for 2030.

Content of initiatives

Scope 1• Streamline work and use leading-edge construction machinery • Reduce emissions by using low-carbon fuels• Promote the above initiatives with the cooperating companies as the main entities• Reduce emissions during asphalt mixture production (promote foamed asphalt technology, and sell low-carbon mixtures)

Scope 2

• Conserve energy at each business office • Offset with non-fossil fuel certificates and the like• Develop infrastructure for climate change countermeasures through the renewable energy business• Reduce emissions during asphalt mixture production

Scope 3[Category 1: Commissioned construction, purchased materials]• Accelerate technical development with open innovation centered on ICI for resource recycling and decarbonization• Achieve environmentally friendly procurement through the visualization of scope 3 emissions and resource recycling rates in the infrastructure
management business, and promote DX[Category 2: Capital goods]• Contribute to reducing GHG in the supply chain when procuring asphalt mixtures[Category 11: Emissions from our construction projects and products during use]
• Submit customer proposals for added value including for the environment, health, and productivity through W ZEB (double ZEB) for new
construction projects and renovation and promote wooden structures and buildings.
• Expand the use of EV construction machinery in the machinery business

https://www.infroneer.com/jp/sustainability/environment/<Examples of reducing CO2 emissions during building operations: ZEB conversion through renovation of medium-sized office buildings>

Targets and Goals
CO2 Reduction Targets
TargetScope 1, and 2 emissions

Target (Compared to FY2018)

Substantially zero
emissions by FY2050

Indices

Disclose graph of results in emissions

40% reduction by FY2030
Scope 2 emissions

RE100 in FY2050

Utilization rate of renewable energy (electrical power)

RE60 in FY2030

Scope 3 emissions(Category 1: Commissioned construction, purchased materials)

Scope 3 emissions(Category 11: Emissions associated with the use of our constructions and products)

40% reduction by FY2030
40% reduction by FY2030

Disclose graph of usage rate of renewable energy (electrical power)
Disclose emissions from commissioned work and calculable
purchased materials
Disclose emissions
The service period of buildings is calculate with the LCCO2 method with CASBEE**CASBEE: A system for assessing and rating the environmental performance ofbuildings, targeting new and existing buildings in Japan*The calculation standard for Group emissions is in accordance with the GHG protocol (obtained third-party assurance in June 2021)

55

MAEDA has registered as a ZEB* leading owner and ZEB planner, and we are moving forward with our initiative as a comprehensive
energy-saving planner that designs, builds and offers consulting. In particular, while there are fewer examples of ZEB conversion
renovations in existing buildings compared to new constructions, in MAEDA, the heat load
was reduced by improving the outer skin performance with thermal insulation and solar
shielding in the MKD Nagoya Building (Nagoya City, Aichi Prefecture) and the Hitokuchizaka
Chuo Building (Chiyoda Ward, Tokyo), which are medium-sized office buildings, and the air
conditioning was redesigned. Furthermore, by combining universal energy-saving
technologies, both buildings are ZEB Ready. We are working to become a leading company
for ZEB by working on "W ZEB" (double ZEB) for new construction and renovation projects.
Hitokuchizaka Chuo Building*ZEB: Abbreviation of Net Zero Energy Building. Buildings with net zero or negative annual primary energy consumption Reducing CO2 emissions in the road civil engineering business (page 82)
Promoting renewable energy in the infrastructure management businesses (page 86) Expanding the use of EV construction machinery in the machinery business (page 90)

INFRONEER Holdings Inc.

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Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

Initiatives for Resource Recycling<Green Infrastructure Example: Hamamatsu Seawall>• Policies and Philosophy Related to Resource Recycling
There is a need to respond to international developments, including conversion to a circular businesses, the business model that results ina circular economy. From a comprehensive perspective as infrastructure operators (ordering parties), emitters, and processors, the
INFRONEER Group is introducing design for products that are environmentally friendly throughout their life-cycle to contribute to a circular
economy. Almost all of the recycled asphalt mixture and recycled roadbed materials used in our construction business use products
recycled and processed at our crushing plant in our road civil engineering business. As a one-stop management system for infrastructure
operations from upstream to downstream, we aim to centralize resources and by-product logistics (scope 3) data, improve productivity,and build a social implementation model.
Recycling Construction By-products and Long-term Resource Cycling Initiatives
MAEDA ROAD accepts debris mainly asphalt clumps and concrete clumps, that are waste material from our construction sites, andrecycles about 8 million tons of that per year (recycling rate is around 100%). Recycled aggregate is used as a material for recycledasphalt mixture, and is sold as a recycled roadbed construction material.
Industry Waste (Construction) Recycling Diagram

Clash and separate

Recycled roadbed material/
recycled aggregate

Circular type of social form
systemCrushing plant

AcceptConstruction site

SupplyAsphalt mixture
production plant

Manufacture and sell

There have been concerns that the quality of the recycled aggregate would be inadequate due to repeated recycling. However,the production of foamed asphalt assemblies suppressed any deterioration in the quality of the recycled aggregate. Also, by
reducing the heating temperature by approximately 30˚C compared to ordinary asphalt production, the thermal degradation of
the old asphalt in the recycled aggregate was suppressed. We will work to manufacture it at our factories nationwide, anddevelop our quality control and long-term resource circulation.
Towards a Society that Coexists with Nature• Policies and Philosophy for Biodiversity
The Earth’s environment is an indispensable foundation for achieving a world where there's no limit to what can be asked from and what
can be delivered by infrastructure services, which is one of our goals. The Group is committed to conserving biodiversity and thesustainable use of resources in all business areas, including procurement, operation and renewal, to increase social and community
safety, security, and sustainability. In addition, we are introducing green infrastructure that uses the functions of the natural environment
to solve various issues in society. In the civil engineering, building construction and road civil engineering businesses, we are committed
to the use of building materials with low environmental impact and the construction of a resource circulation model, especially because it
requires a great deal of natural capital input. This year, we built a new government building for Yatsushiro City, Kumamoto Prefectureusing local wood, and have worked to popularize wooden buildings. In addition, during development, we conduct environmental
assessments to help preserve ecosystems, and the like. We are committed to protecting endangered species and protecting local
ecosystems. In the machinery business, R&D in the forestry and processing machinery sectors contributes to the recycled use of forest
resources. In the infrastructure management business, in addition to conserving biodiversity with the use of sustainable resources, we are
maintaining water resources in connection with the water and sewage concession business.
https://www.infroneer.com/jp/sustainability/environment/biodiversity.html
See our website for details on wooden structures.
https://kidetatetemiyou.com/projects/

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MAEDA participated in a 17.5-kilometer seawall development project in Hamamatsu City, Shizuoka Prefecture. By using CSG material (page 74) at thecenter of the seawall, the CSG will remain firm despite the earth and sand shifting by tsunami, and will remain a firm structure that cushions against atsunami. Furthermore, the cover soil can be used to regenerate the disaster prevention forests that blend
with the environment and the landscape and also suppresses the damage to houses from flying sand andsalt. We also cooperated with local NPOs to take into account the natural environment, including
protecting sea turtles and transplanting rare plants. During the construction period, we have beenworking to conserve the Motschulsky (chaetodera laetescripta) with the local Hamamatsu Minami HighSchool. As a result of the school's efforts, which continued after the completion of the conservation
activities, they were awarded the Minister of the Environment Award in 2021.
Hamamatsu Seawall
Dividends for the Earth
Because we are conducting business activities with the benefits provided by the Earth's resources, we are introducing ”Dividends for the Earth”
to return a portion of the business profits to our investor Earth in the same way as we pay dividends to our shareholders. Specifically, those
dividends were set at 2% of our consolidated profit. Furthermore, we do not simply contribute funds as a company, we also promote activities
that actively involve our employees and their families while collaborating with local communities and NPOs. This scheme is the successor to
INFRONEER Holdings, which MAEDA had been undertaking since 2010 ”dividends for the Earth” comprises three frameworks. Green Commitment
and SII (Social Impact Investment) to promote the company’s activities, and an Eco Point System called Me-pon to promote individual activities.
Content of Dividends for the Earth
Green Commitment
INFRONEER Forest
Eco-Aid
Eco-system

Eco-Angel

Eco-School

Green R&D

SII(Social Impact Investment)
Eco Point System Me-pon• Green Commitment
This is mainly a mechanism to support activities designed to solve social issues related to the environment. Each issue is categorized, andthe content is carefully reviewed and supported for each of these activities.
• SII (Social Impact Investment)
We provide support through investments in businesses, technologies, and venture companies with ideas that contribute to solving social issues.
• Eco Point System Me-pon
This is an eco-point system designed to support employees and their families who proactively engage in environmental activities in their
daily lives, and to visualize individual environmental activities. Through our dedicated website, the Company awards points to employees
and their families for any voluntary environmental activities they are involved in outside of their work. The accumulated points allow
employees to select and purchase environmentally friendly products, and the like. It is a mechanism that is gentle on the Earth.
See our website for details on “Dividends for the Earth."http://www.maeda.co.jp/csr/sacca/cwsac/<Examples of Green Commitment: Forest development activities in the INFRONEER Forest Takamori>In FY2010, INFRONEER Forest Takamori (Takamori Town, Aso-gun, Kumamoto Prefecture) entered into an agreement with the corporate
forestry development system established by Kumamoto Prefecture and have been providing
ongoing support. In addition to carrying out forest conservation activities in collaboration with local
NPOs, we are expanding the forest creation circle together with our employees and their families
by conducting annual forest maintenance. This activity is in its tenth year. Our many years of ourefforts, including contributing to preventing global warming by planting trees, clearing forests andcontributing to community exchanges through volunteer activities, have been well received, and as
a result we received the Prefectural Governor's Award in Kumamoto Prefecture in 2022.
INFRONEER Forest Takamori

INFRONEER Holdings Inc.

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Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

Society
The INFRONEER Group has formulated a INFRONEER Medium- to Long-term Vision, and an INFRONEER Medium-term Vision policy toincrease added value and improve our corporate value through continuous production of value-creating human capital. Based on this, weformulated a Group human capital strategy based on social conditions, how people work, changes to how value our work, and the current
status of human capital management in the Group.
Overall View of the Group’s Human Capital

Strategy

C o rp o rate v alue

Challenging the Creation of the Future Infrastructures with All of Our Partners• Management of the Group’s Human Capital Management – To Continuously Produce Value-creating Human Capital"
Th Group recognizes that investments in human capital is the starting point for improving corporate value, because our human resources
are the driving force for maximizing added value. Based on this recognition, the Group will be proactive in promoting investment. We will
manage the Group’s human resources to produce continuous value-creating human capital that will challenge and co-create with a senseof ownership,” which is identified as the type of human capital the Group needs to improve our corporate value.
• The Group’s Concept of View of Human Capital: Value-creating Human Capital that Challenge and Co-create with a Sense ofownership
In the Group, human capital with a sense of ownership refers to employees who are able to manage things to make the business succeed.
Even if they do not actually take a management role, they are always conscious of the overall optimal solution and can move outside theirarea of responsibility, take the initiative, and think and act independently to solve problems. We believe that it is necessary to challenge
and co-create with a sense of ownership from a wider viewpoint to continue to create value.

M a x i m i z e d ad d ed v alue cycle
A d d ed v alue
A l l oca te

I nves t

Remuneration

Value-creating human capital(conceptual view of the Group's human capital plans)

The Group’s concept of human capital
Value-creating capital that challenge and co-create with asense of ownership

Training

Challenge

Sense of ownership

Co-createGroup’s human capital management to produce value-creating human capitalH u m a n cap ital s trateg y
Achieve management plan

Vision
INFRONEER Medium- to Long-term Vision
INFRONEER Medium-term Vision

Group human capital management
Aware internal environment

Gap
Solve issues

Continuously producing value-creating human capital

Current status of human capitalmanagement in the Group

RecruitTrain

AssignEvaluate andrewardAwareness of external environment

External environment and social situation of our human resources
Executing our Human Capital Strategy

HR-related departments of affiliated business
Optimize human capital strategies at policy-basedGroup companies

Maximized Added Value Cycle Through Value-creating Human Capital
The added value created by human capital is the Group's products and services. The revenue earned from the providing these tocustomers is related to the allocation of and investment in human capital; further added value is created and a cycle is created tomaximize added value. In terms of allocating value added to human capital, we use value-added productivity (page 07) as the standard
for calculating bonuses, and this allocates for the results in a clear fashion; we have started efforts to motivate employees to improve
productivity and foster a sense of organizational cohesion.

59

Group Human Capital Strategy
To prioritize issues that are important in managing the Group's human capital to continuously create value, we will formulate key
measures and invest through the four pillars of our medium- to long-term human capital strategy.
Conceptual view of required
human capital

Human capitalmanagement

Strategy pillar

Specific measures

Value-creating human capital

In implementing specific measures, the Holdings Human Resources Strategy
Department is responsible for launching an initiatives policy that will optimize
companies Group-wide and determine the implementation status of themeasures, and demonstrate Group synergy. The Human Resources Department
and HR-related departments of the affiliated business implement the measuresin the way that best suits their own company, based on the Group's policies.

Human Resources Strategy Department of
INFRONEER Holdings
Overall optimization and Group synergy

Recruitment

Strengthen competitiveness inacquiring human resources

Ensure diversity in recruitment
branding

Training

Invest in strategic training of humanresources

Train managers and executives systematically
Improve basic skills of entire Group

Assignment

Assign human resources optimally

Group talent management*

Evaluations andremuneration

Pursue ease of work and value ofwork

Improve engagement
Establish Group human resources system

Challenge

Sense ofownership

Co-create*Talent management: A management method that manages information such as employee abilities, qualities and experience values centrally; it is useful for the strategic development and allocation human resources

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Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy• Strengthen Competitiveness in Acquiring Human Resources
We will strategically secure human resources who have diverse values, knowledge, and abilities, and create value through our“comprehensive system ×area expansion” and “contracting × de-contracting” business models. We will build an effective system to that
addresses the Group’s future, mission, business and content of work, corporate culture, and that attracts human resources and achieves
our targeted human capital.
• Invest in Strategic Human Resources Training
The INFRONEER Group has been investing significantly in developing its human resources so far, but we recognize that to overcome more
powerful changes and to continue to grow, it is necessary to plan for the development of capable managers and executives who will leadthe entire Group, to invest in the training that is optimal for individual employees and that does not stop at standard training, which
retrains employees, but that puts them through continuous re-learning in response to environmental changes, and improves the businessbasic skills of the entire Group. We will increase the value created by our human capital and the value of our human resources themselves
by investing in the standard training across the entire Group and training that imparts the expertise required in each affiliated business.
• Optimally Assign Human Resources
We will maximize value-added by assigning the necessary human resources to implement the strategy, and assigning a sufficient numberof employees when needed. By promoting talent management throughout the entire Group, we will systematically train and secure humanresources necessary for our medium- to long-term strategy, and aiming to achieve optimal allocation of our human resources.
• Pursue Ease of Work and Value of WorkAn employee engagement survey was conducted immediately after the business integration. Our aim is to improve engagement,
motivation and productivity by reviewing results, implementing countermeasures and developing PDCA cycles. We will build a system andcorporate culture in which diverse human resources can actively participate by promoting a performance-based remuneration system,
proactively investing in employee engagement-improvement measures, promoting health management, supporting the work-life balance,
and introducing flexible working formats.
Strengths of each Group company• Enhancing the facility environment and IT facilities (MAEDA)• Links within the workplace and willingness to achieve goals (MAEDA SEISAKUSHO)• Stable customer base (MAEDA ROAD)• Sound financial condition (MAEDA ROAD)

Work to maintain and strengthen

Engagement survey

Improvement Measures for the Whole Group• Human Rights
We take the impact that risks and opportunities related to human rights have on companies seriously. At the Board of Directors meeting
held on June 23, 2022, we decided to implement an the INFRONEER Group Human Rights Policy (hereinafter referred to as the "Human
Rights Policy"). We recognize that our business activities may directly and indirectly affect human rights. We will provide all our officers
and employees with appropriate training and education to ensure that our Human Rights Policy permeates INFRONEER and the Group andis implemented effectively across all of our corporate activities. Furthermore, we will regularly disclose our commitment to respect forhuman rights on our website and in our integrated reports.
https://www.infroneer.com/jp/sustainability/social/
Revitalize the Community and Support Partners
We will work to resolve social issues and regional revitalization by participating in public-private partnership projects such as the concession
project and others, and we will introduce initiatives that will contribute to improving the stability and productivity of the management ofcooperating companies, who are our partners nationwide and who are indispensable in sustaining growth in our company (page 40).

Cash flow• Create an advance payment system and abolish the reserve money system
In an effort to reduce the load on cash flows and upfront investments at cooperating companies regarding
cash flow and upfront investments, we abolished the construction fee payment reserve money system forthe purpose of collateral and shortened conventional payment terms. We also created a system for thepayment of advance payments for specific sets of contracted work.

Securing andtraining humanresources• Support the dissemination of cooperating company recruitment information and training
Securing and training skilled construction workers will make the construction industry more attractive andlead to the development of a more developed social infrastructure. Posting recruitment information on thework environment and welfare benefits of our cooperating companies on each Group company’s website
will support human resources training and secure more workers, and encourage workers to obtain thequalifications necessary for construction work. We plant to hold study meetings and establish an award
system that evaluates the performance and technical capabilities at the Group's construction sites andintroduce a payment system that is based on the work performance.

• Revitalize the Community and Support Partners

Common weaknesses ofeach Group company

Promote Communication and Foster a Sense of Unity

MAEDA's cooperating company association (Zenyu-kai)

Organizational
culture• We held the president’s caravan involving all employees in 13 areas around the country; we disseminated ourmanagement philosophy, explained our strategies and measures, and exchanged opinions.
• Group-wide disclosure of materials produced for the Board of Directors and the Board of Executive Officers (excluding
insider information)• The president's caravan, comments from employees during the engagement survey; questions were answered by thesupervisor and shared with the entire Group• Establishing an internal contact for the entire Group• Review and implementation of measures at individual companies, business segments and organizational units to deal
with individual and specific issues according to the characteristics of each affiliated business

As MAEDA's best partners, Zenyu-kai members strive toimprove safety and quality through group activities to createa Group that is trusted by all its stakeholders. In addition,
TEAM-Z, a recruitment site of Zenyu-kai, disseminates arange of information to members to increase solidarity.

• A sense of Company-wide solidarity• Communication between hierarchies• Spirit of mutual respect• Collaboration between departments

Kenji Kaido, Representative Director and President of Kaido Construction Co., Ltd.; Chairman of Zenyu-kai

Currently, the issues facing the construction industry and companies are accumulating. There
are urgent issues, including a shortage of workers, but we need to think about what the world
will look like in the future and tackle the issues before the change occurs. We have establishedan association for Zenyu-kai's next-generation of leaders,
comprising managers responsible for the next generation. We hope
to expand our business opportunities following our expansion of the
new business areas set out by INFRONEER Holdings. The resulting
experience, such as de-contracting initiatives with members of
MAEDA's next-generation leaders’ association, present us with thesustained challenge of facing social changes.
Koichi Sakamoto, Representative Director and President of Sakamoto
Kogyo Co., Ltd., the Next-generation Leaders’ Association of Zenyu-kai

President’s caravan venue

61

MAEDA ROAD's cooperating company association(Kyoei-kai, Rekiyu-kai)
In 1968, the Kyoei-kai, and Rekiyu-kai systems were started to strengthen MAEDA
ROAD's construction and transportation system. For more than half a century, we
have worked as a dedicated cooperative company to create close relationships
with each region. Currently, there are 98 Kyoei-kai member companies and 57
Rekiyu-kai member companies including the original members, giving a total of
approximately 3,500 people. Meanwhile, the pavement industry today isexperiencing severe challenges, including high crude oil prices and a chronic
shortage of construction technicians. We need to develop into a group ofcompanies that can continue to grow even under these circumstances. As apartner of INFRONEER
Holdings, we will continue towork together on a variety ofissues to ensure that we act
as one.

(From left to right in the photo)
Shinichi Matsubashi, Representative Director and President of Matsubashi Komuten Co., Ltd.; Chairman of Kyoei-kai
Tokuji Morita, Chairman of the Board of Directors of Morita Shoji Co., Ltd.; Chairman of Rekiyu-kai* Overview of Zenyu-kai: 12 branches nationwide; 567 member companies. Kyocho-kai was started in 1948 as an association of civil engineering companies, and Zenshin-kai was started in 1967 as an association ofbuilding constructors. In 1969, they merged and became Zenyu-kai. (https://team-z.jp)

INFRONEER Holdings Inc.

62

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

GovernanceWith the growing awareness of governance in society and to further its aim of becoming an "integrated infrastructure service company,"
INFRONEER has formed a company with a nominating committee, with a majority of outside directors, to give emphasis to investment
decisions and management evaluations from a social perspective.

Director

Director/Executive Officer

Director (Outside)

Director (Outside)

Director (Outside)

Hirotaka Nishikawa

Masaaki Shioiri

Seiichiro Yonekura

Koichi Moriya

Atsushi Takagi

Chairman of the Nominating Committee

Chairman of the Remuneration Committee

Capital Investment Strategy Officer

Director (Outside)

Keiichiro Hashimoto
Chairman of the Board of Directors
and Chairman of the Audit Committee

Chairman of the Company

Director, Representative Executive Officer, and President

Director (Outside)

Soji Maeda

Kazunari Kibe

Rie Murayama

Position in the Company

INFRONEER Holdings is proud of its business, which creates a living foundation for people and contributes to a prosperous society, and is confidently
implementing its social mission. For this, INFRONEER Holdings has established a basic Code of Ethics for its corporate activities, established acompliance system for laws and regulations, and has implemented appropriate operations. The basic standpoint of our management is to identify anderadicate corruption, breaches of trust, and unauthorized construction at every opportunity. In addition to the basic compliance items in our Code of
Ethics, we will focus on the following items to conduct fair and large-scale corporate activities at all times.
Anti-corruption
Both in Japan and abroad, the prevention of corrupt practices including bribing public officials, giving and receiving excessive
entertainment and gifts, collusive relationships, embezzlement and trespassing is positioned as one of the most important issues inensuring compliance. In our "Code of Ethics,” we have commit ourselves not to conduct acts that are illegal or that could be misconstrued
by society, and to maintain a healthy and appropriate relationship with public officials and political organizations. We have signed the UN
Global Compact and we support and affirm the principles related to anti-corruption.
Anti-competitive Acts
We have set out a "bid rigging prevention policy" to prevent bid rigging at each affiliated business more effectively. In line with policy
revisions, employees need to comply with our highly effective "bid rigging prevention rules." For example, we have clarified the rules
governing leaving a meeting that apply when an employee suspects a bid rigging is being discussed at a meeting with another company
in the same industry. We also fully implement compliance training.
Transparency of Taxes
We will respond appropriately to changes in local laws and regulations and provide timely and appropriate tax information to ensure transparency. Furthermore, we
are working to build trust with the tax authorities in each country and re-gion, such as by responding honestly to tax investigations and ensuring transparency andreliability in tax-related matters. We use appropriate and effective measures to reduce our tax burden, and if the tax risk is assumed to be high, we will seek advice
and guidance from tax experts to reduce tax risks when necessary.
We will strengthen the internal restraint mechanism and we will establish an internal audit system to ensure that these are implemented, Furthermore, we will
always clarify the difference between public and private, correct our own attitude, and respond to the trust of society by staying close to our management philosophy.

CEO

Governance Structure

Expected Roles and Expertise Items
Name

Basic Philosophy

Company
Management
M&A

Business
Strategy
Industry
Insights

Financial
Accounting

Sales
Marketing

Chairman of the Company
Compensation Committee Member

○

○

○

Kazunari Kibe

Director
Representative Executive Officer andPresident Nominating Committee
MemberCompensation Committee Member

○

○

○

Hirotaka Nishikawa

Director
Audit Committee Member○○

Masaaki Shioiri

Director
Executive Officer
Nominating Committee Member○○

Keiichiro Hashimoto

Outside Director
Chairman of the Board of Directors
Nominating Committee Member
Chairman of the Audit Committee○○

Seiichiro Yonekura

Outside Director
Nominating Committee Member
Compensation Committee Member

Koichi Moriya

Outside Director
Chairman of the Nominating Committee
Compensation Committee Member
Audit Committee Member○○

Board of Directors

Nominating Committee○

Report○Compensation Committee

ReportSupervise andTransfer Authority

Outside Director
Nominating Committee Member
Compensation Committee Member○○

Atsushi Takagi

Outside Director
Nominating Committee Member
Chairman of the Remuneration
Committee
Audit Committee Member

○

○

○

Collaborate

ReportCorporate Audit Department
ReportGroup Strategy Meeting (Tentative Name)

○

○

○

○

○

○

○

○

Board of
Executive Officers

Internal Control Subcommittee
Business Improvement Subcommittee

General IS Strategy Meeting

Financial Reporting Subcommittee

IT & DX Strategy Meeting (Tentative)

IT Governance Subcommittee

Human Resource Strategy meeting (Tentative)

Compliance Department

Collaborate

Risk Management Subcommittee

Communication Strategy Meeting (Tentative)

Instruct○Sustainability Committee

3 Strategy Meeting○○

Risk Management
Committee(Marketing, Construction Technology, Capital Investments)

Finance Strategy Meeting (Tentative)

Rie Murayama

Audit Committee Office

Audit Committee

Supervise○Internal Control Committee
Instruct○○

ReportRepresentative Executive Officer
and President

○

○

ESG
Sustainability

○

○

○

○

General Meeting of Shareholders
IT
DX

○

○

○

GlobalOverseas
Business
Management

Accounting Auditor

Soji Maeda

Human Resource Engineering
Internal Control
Training
R&D
Risk
Development
Quality
Management
Labor
SafetyManagement

ReportInstruct

Instruct

ReportReportEach Department in Holdings

Note: The above list does not represent the complete expertise of each officer.

63

INFRONEER Holdings Inc.

64

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

ESG Strategy

Overview of the Operational Status of the Structure to Ensure Our Business is Appropriate

System and Policy for Determining Executive Remuneration

INFRONEER has built and operates an internal control system to ensure the execution of appropriate administrative orders in the Groupand efficient business execution, and audit systems to respond to changes in the business environment quickly and flexibly with good risk
management, and compliance.

The policy that determines the remuneration for Company officers and others is set out by the Compensation Committee, which has ahigh degree of independence. The Compensation Committee has established an operational process that emphasizes objectivity andtransparency, and regularly reviews the rationality of the policy for executive remuneration. In FY2021, we also established Basic
Principles of the Executive Remuneration System and a Remuneration System.
Executive remuneration comprises a base remuneration, performance-linked remuneration and non-monetary remuneration.
Performance-linked remuneration is composed of annual incentives that are linked to the achievement of Company-wide performancegoals in a single year, and medium- to long-term incentive that is linked to the achievement of performance goals in the INFRONEER
Medium-term Vision. Non-monetary remuneration consists of shares with restricted transfers to share interest with shareholders. The
remuneration rate for each type of executive remuneration reflects the weight of responsibility for improving performance and corporate
value and is subject to a performance-related increase for top management positions.

1. System required for the execution of the instructions of the Audit Committee
The Audit Committee Office, a dedicated organization that assists the Audit Committee in its functions, comprises four employees. To enhance theeffectiveness of the audits carried out by the Audit Committee, we hold regular meetings with outside directors and accounting auditors, as well as
the presidents of subsidiaries, auditors and internal audit departments to exchange information and opinions.
2. Information storage and management system
All documents related to executive officers' execution of their duties, such as minutes of the Board of Executive Officers meetings and requests
for approval, are appropriately stored and managed by relevant departments in an easily searchable state based on relevant laws and regulations
and relevant internal regulations, and the status of execution of executive officers' duties is regularly reported to the Board of Directors.
3. Risk management system for the management of risk

INFRONEER Holdings FY2022 Risk Map

Approx. ¥1 billion
converted or more

We established the risk management regulations and established a Risk Management Committee, the highest level body relating risk management,
on a quarterly basis to establish risk management regulations and implement cross-cutting risk management across the entire Group. In FY2021,
we conducted cross-cutting evaluations and analyses on themes including governance, compliance, and disaster preparedness and climate change.
4. Compliance system

Approx.
¥10 million
converted

To ensure that our subsidiaries carry out their business adequately, we have developed a risk management system, a compliance system, asystem to eliminate anti-social forces and a system to ensure that documents and other information related to financial calculations relating
to Article 24, 4(4) of the Financial Instruments and Exchange Act are kept. These systems receive the approval of the Board of Executive
Officers or executive officers according to the level of importance, based on the rules of affiliated companies prescribed by the Company.

Approx. ¥100
millionconverted

5. Group management system

Impact leve

We disseminate our Code of Ethics, which defines the social roles and responsibilities our company must fulfill, to all employees via ourinternal intranet to ensure business ethics and compliance. We have also established an internal reporting system, set up methods ofcontact including a workplace hot-line telephone and a compliance hotline. We will work to prevent and detect fraud at an early stage. We
have also established and operate a system that prevents users from being adversely treated.

54• Conflicts and disputes
at the national level3• Natural disasters• Customers• Markets• Products and service
defects• Environment• Existing businesses• Compliance• Shareholder, IR• Financial• Competitor• Public relations• Communication• Human capital• New businesses• Labor(occupational health and safety)• Information systems• Laws and regulations• Trading partners• Asset preservation(Physical and intellectual
property)• Overseas business1
1

2

Less than once in 10 years

Designated Point of Contact for the Human Resources Strategy Department (External point of contact)

Compliance hotline leading to an external website (Internal point of contact)

Notify and consult

Chief

Legal and Compliance Department Manager, Corporate Audit Department Manager

Person in charge

Executive officer in charge of compliance

Report and consult

Appointment of investigators by the executive officer in charge of compliance/chief in charge of compliance
Notice in writing

Investigating Team

Appointment of corrective manager by the executive officer in charge of compliance/chief in charge of compliance
Notice in writing

Manager in charge of corrective measures

Measures to prevent
recurrence and for follow up

Implement measures to prevent recurrence and for follow-up
See our website for details.

65

4

5

Less than once in 3 years

Less than once in 1 year

Risk Management System
Disclose information to outside the Company

Internal Notification Response Structure (Partial Excerpt)

Corrective measures

3

Frequency (Frequency)

The Company has established a Corporate Audit Department that is responsible for conducting internal audits for the entire Group. During
an audit, we use a risk approach that reviews the reliability of financial reports, effectiveness of operations, and compliance with laws andregulations. We have also established an internal audit departments at our main subsidiaries that are linked with the Corporate Audit
Department to strengthen the Group's internal audit function.

Investigation• Governance• Organization/corporate
culture• Procurement2

6. Internal audit system

Reception

High-risk areas

Representative Executive Officer and President, and CEO (Chairman of Risk Management Committee)
ReportBoard of Directors

Risk Management Committee(Constituent members of the Board of
Executive Officers)

ReportInformation security
supervisor• Collection of information, identification of risks andreviews thereof• Consideration, development and maintenance ofcountermeasures• Formulation of response procedures in the event of an
emergency• Monitoring, evaluation, correction and improvement

Secretariat
Corporate Strategy Department
ReportInstruct and monitor

Each department in Holdings

Operate Committee
Gather information and maintain effectiveness of risk
management system

Business companies
Risk Management Committee• Collection and reporting of information • Identifying, consolidating and managing risks • Implementation of specific measures s • Implementation status
and effectiveness evaluation, correction, and improvement of effectiveness • Quick reporting and response in the event of an emergency • Others

https://www.infroneer.com/jp/sustainability/governance/

INFRONEER Holdings Inc.

66

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Challenges in Expanding the Infrastructure BusinessFor 100 years, the three businesses comapnies of the INFRONEER Group have been involved in infrastructure businesses that support
the growth and development of their communities and society. To anticipate and respond quickly to the diverse needs of infrastructuresthat is changing with the times, we have grown along with the communities and societies and made efforts to improve our corporate
value using the technology and knowledge that each company has developed and our eagerness to take on new challenges.
Now, the pace of change is increasing, and the challenges facing the infrastructure are becoming more complex and diversified. In themeantime, as a company that must survive for the next 100 years with the community and society, we will work together as a Group to
face each business challenge with integrity and develop future infrastructure services together with our stakeholders.

VisionA world where there's no limit to what can be asked
from and what can be delivered by infrastructure services.

2021 Established INFRONEER Holdings Inc.

Recent movement to revise
infrastructure related laws

• Safety, security and sustainability of our society and local communities
Becoming an integrated infrastructure service company
MissionWe challenge status quo of existing infrastructure businesses and deliver
the most suitable service globally with innovative ideas.

2020s Moved into comprehensive public

2022 Amended the PPP/PFI promotion action plan
2021 Amended the road act

2020 Amended the national strategic special zone act
2019 Amended the water supply act

facility management business• Diversity of regional issues
The challenge of building the best infrastructure services for each region

2010s Moved into the renewable energy concession business
Tenjin Business Center

Aichi Arena

1980s Transition to high-level

construction such as ultra high-risebuildings and domes• Urbanization and diversifying lifestyles
Transition to infrastructures to make life enjoyable

1960s Moved into the overseas civil engineeringand building construction business2013 Enforced the private airport
operation act
2011 Amended the PFI Act• Increasing environmental awareness and aging infrastructure
Promotion of de-contracting and "Environmental Management No. 1"

2000s Moved into the PFI business andthe retail business1999 Enforced PFI Act• Shrinking of markets
Moved into new
infrastructure services• Urbanization and population growth
Developed infrastructure for a safer, more secure and richer life

Asphalt mixture production businessFukuoka PayPay Dome

1962
Established
MAEDA
SEISAKUSHO

1930
Established
MAEDA ROAD
1919
Established
MAEDA

67

• Popularization of automobiles and expanded demand for roadmaintenance
Established a structure to provide our asphalt mixture
production and sales business to the whole country

Paving construction

Moved into the machinery business

Crawler Crane• Expanded demand for machinery
Ensured safety and quality and streamlined infrastructure
maintenance

1950s Moved into the civil engineering business• Post-war reconstruction
Setup infrastructure that provides a foundation for living

Legend:1920s Moved into the mountain civil engineering business• Social environment changes
INFRONEER’s challenges• Modernization of Japan
Beginning of setting up an infrastructure to support national development
Tagokura Dam

Umihotaru Parking Area at TOKYO-WAN-AQUA-LINE EXPWYINFRONEER Holdings Inc.

68

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction
As an integrated infrastructure service company thatprovides optimal infrastructure services around theworld outside of the established concepts, the
INFRONEER Group focuses on the civil engineering,

INFRONEER Holdings segment
Civil engineering business

MAEDA CORPORATION civil engineering business
MAEDA CORPORATION real estate business (civil engineering)

Building construction
business

MAEDA CORPORATION building construction business
MAEDA CORPORATION real estate business (construction)building construction, road civil engineering,

Road civil engineering business MAEDA ROAD CONSTRAUCTION Co., Ltd. (Consolidated)infrastructure management and machinery businesses,

MAEDA CORPORATION infrastructure management business
Anonymous association Goyozan solar-power generation
Infrastructure management Aichi Road Concession Co., Ltd.
business
Anonymous association Aichi road concession
Anonymous association Mine solar-power generation
Anonymous association Happo wind power development

and has expanded its range of businesses from retailbusiness to real estate. In addition to further
strengthening businesses in each segment, we will

Machinery business

MAEDA SEISAKUSHO CO., LTD. (Consolidated)

Related businesses

JM Corporation
FBS Corporation
Fujimi Koken Co., Ltd.
Thai Maeda Corporation Limited

continue to leverage the strengths of each segment todemonstrate synergy across Holdings and provide safety
and security for society and the regions.

Civil Engineering Business Continuing to be the backbone supporting companies and societyRoad Civil Engineering Business A spirit of working hard and taking on challenges

Page 79

The road civil engineering business consists of two businesses. Specifically, they are construction mainly focusing on pavement and asphalt mixture
production and sales.
Achieving physical improvement, one of INFRONEER's key goals for sustainable growth, requires deepening these two existing core businesses
and employees' taking on challenges to attain that. At MAEDA ROAD, the spirit of working hard to be able to faceeach one and move the business forward is a byword across the whole company, but I also want to cultivate thespirit of taking on challenges while valuing our commitment to the core business.
Our existing business is in a mature market; further growth will require a new revenue base. For this reason, weare also implementing initiatives in new areas such as comprehensive private contracting in Fuchu City, utilizing thetechnical skills we built up in our road civil engineering business. We will continue to build on our achievements by
taking on business in which we can demonstrate synergy as a Group.
In addition to using ICT to improve productivity by, we will implement and practice new ideas that complement
each of our other Group companies and mechanisms generated from the use of IoT and DX to attain reformed
productivity. We will switch the type of power and fuel used at our manufacturing plants to renewable energy andwork to achieve the target values set by the government.

Satoru Tsuchiya, Senior Managing Officer, MAEDA ROAD CONSTRUCTION Co., Ltd.
Page 71

Page 83

Infrastructure Management Business Leading the de-contracting business, and moving to create more value

The civil engineering business began with the construction of a hydroelectric power plant in 1919 in the mountains, and expanded in scope to include urban
civil engineering and overseas construction, as well as work on dams, tunnels, and shields. Based on MAEDA's founding philosophy of "doing a good job andgaining the trust of customers," we are proud to have been the backbone that supports the company and society through infrastructure development, throughmonozukuri (manufacturing) implemented with local companies and cooperating companies.
As society faces a declining birthrate and an aging population, and the fiscal situation deteriorates, the way in which
infrastructure is operated is changing dramatically. In the field of construction which is our core business, it is necessary to
improve our management capabilities and introduce significant improvements in productivity through automated construction,
DX, and other technologies. In addition, as the forms of infrastructure businesses diversify, I think that proactively introducing
concessions and and expanding our business areas will result in the capturing major business opportunities.
Even in this era, although the needs of society have greatly changed, human resource development and technology
succession still present the same challenges. This is becoming increasingly important. Each individual has the right sense of
responsibility, a sense of crisis, and takes action after observing their surroundings. If we can enjoy these things, our thinking
will be a source of organizational strength. We can move forward vigorously as an integrated infrastructure service company
that incorporates civil engineering business and INFRONEER Holdings.

The infrastructure management business has led the de-contracting business, mainly in the renewable energy business and the concession
business. These initiatives and the Holding's management plan also coincide with the government's action plan* announced in June this year. I
feel the responsibility to respond reliably to social demands in each business and lead us to the next business area.
Last fiscal year, we were able to provide society with a quality infrastructure, including the commercializationof woody biomass-power generation and the sale of two photovoltaic power generation businesses. We were able
to expand our earnings, and this will lead to the next business development and investments. In the concession
business, we also expanded our areas, adding the water supply business following airports and toll roads. We will
strengthen our links with external partners and Group companies to create a secondary market for infrastructure
as well as business development and operations. We will continue to provide society with a quality infrastructurethat is complete in both quality and quantity.
To respond to the different needs and issues of each region with optimal infrastructure services, we will
combine the engineering capabilities of each Group company with the know-how developed in our infrastructure
management business and finance, thereby expanding our de-contracting business and creating further added
value.

Takao Nakanishi, Representative Director and Senior Managing Officer, MAEDA CORPORATION

Motoi Higashiyama, Managing Officer, MAEDA CORPORATION*PPP/PFI Promotion Action Plan (Revised Edition, 2022) http://www8.cao.go.jp/pfi/actionplan/pdf/actionplan_r4_2.pdf

Building Construction Business Implementing growth as an equal partner in one group

69

Page 75

Machinery Business

Page 87

Contributing to the development of the social infrastructure by integrating
the technologies accumulated over the years with leading-edge technologies

The building construction business has developed a variety of building technologies to meet changing needs. The scale of the business has
expanded 1.5 times over the past decade as a result of the growth of the sales, design, and engineering divisions that create upstream businesses.
Importance is placed on both the ordering party and the cooperating company continuing to be partners. This is an equal relationship of trust inwhich we work together from upstream on any project to overcome challenges, and share the risks and value.
For example, we also ask the ordering party to understand so that we must obtain appropriate profits as abusiness. To do this, it is necessary to provide more value-added products without wasting costs. In fact, we areproud to be the only general contractor who not only incurred additional costs when prices soared, but also returned
them when prices fell. This was possible because we have unconventional ideas for sharing, such as the industry's
first cost disclosure method of “cost + fee."
This also leads to pride and rewards for our staff and skilled personnel at cooperating companies. We are notworried about the shortage of workers that will be future source of anxiety in the building construction business.
In addition to acquiring projects and developing technologies on our own, we are accelerating our links withpartner companies and Group companies, and we will grow together in response to the diverse needs of society andthe regions.

For 60 years, the machinery business has been responsible for designing, manufacturing, selling, leasing, and providing after-sales services for construction
machinery and the like, and it has played a part in the development of the social infrastructure. We develop original products including our spider cranes and crawler
cranes to meet diversified workplace needs. In recent years, we have made further efforts to reduce the impacts on the environment by expanding our lineup of fully
electric cranes to achieve carbon neutrality. In addition, we tirelessly develop and manufacture custom-made products based on
our extensive technological development. Further, we strongly support our customers with a comprehensive system from design
to after-sales services, which is the strength of our business.
As a master exclusive distributor for Komatsu, the world's leading brand, we are proud of our top ranking results in Japan. We
have a wide range of state-of-the-art machines, including hybrid construction equipment, machines with our "KOMTRAX" vehicle
management system installed and ICT construction equipment that incorporates an integrated construction site management
system called “smart construction." By solving the social issues resulting from the decrease in the working-age population
caused by the dropping birthrate and the aging population, we are contributing to making work sites more efficient and safer.
We will continue to work with both machine manufacturers and Komatsu master exclusive distributor to strengthen our
technical capabilities to meet a range of work site needs. We are committed to expanding our business areas by collaboratingwith Group companies.

Yuuji Hatakama, Director and Senior Managing Officer, MAEDA CORPORATION

Masahiko Ichigi, Executive Officer and Vice President, MAEDA SEISAKUSHO CO., LTD.

INFRONEER Holdings Inc.

70

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Civil Engineering Business
Opportunities

Strengths• Expansion of the public-private partnership markets as a result of
the financial difficulties in the national and local governments• Demand for infrastructure renewal has increased because of thedeterioration of both public and private infrastructure. Especially,large-scale renewal projects carried out by various road companies
have accelerated• Expansion of environmental businesses, including carbon neutrality, andrenewable energy businesses (onshore/offshore wind power and others)

Industry-leading technical evaluation score for an overall evaluation of projects:
Ranked in first place for technical evaluation and order acceptance rate
• Comprehensive evaluation of projects: technical evaluation
score: first place, acquisition rate: 37% (average of five periods)• Technical evaluation of #1 projects: Order acceptance rate 53%(average of five period)• Achievements in renewable energy, EPC, and CM1: Construction
value ¥44 billion (cumulative over the past 5 years)

INF
infrastructure
construction
measures

Strategy

Pursue Group synergy

Strengthen the ability to receive orders, including design and construction projects• Strengthen the design system by promoting M&A and mid-career recruitment and developing our training system• Improve the ability to propose value-added solutions that meet customer needs, and strengthen our approach upstream
Expand renewal efforts• Strengthen competitiveness by developing renewal technologies such as for roads and dams and power, and building on ourachievements

Initiatives for National Resilience through 100 Years of Civil
Engineering Capabilities Developed• Introduce BIM/CIM2 in all processes, build on and use knowledge• Develop tunnel construction automation technology (reduce target input labor by 40%)
• Develop a shield tunnel integrated management system (reduce target input labor by 50%)
Synergy through Group collaboration• Work with MAEDA SEISAKUSHO to reduce manufacturing costs for heavy machinery and shielding machines• Share the customer networks of each Group company to expand opportunities for orders
Train human resources• Train human resources that can expand business areas and play an active role in new areas
Use DX to minimize lost profits• Improve the construction management capacity of the entire organization by standardizing the traditional individual
construction management skills and aligning them at a high level• Improve cost control accuracy and ease of design changes by systematizing business management

Promote M&A

71

Develop and systematize productivity-enhancing technologies• Train human resources that can expand our share of the contracting business, establish a ranking, and secure profits
Promote DX/
shared service

Our civil engineering business was accompanied by growth in Japan, crisis response, and crisis circumvention. We have supported
Japan's high economic growth through construction projects, including the development of the power supplies needed after the war, thedevelopment of a mobile infrastructure centered on roads and railways and the development of social infrastructure as urbanization
progressed.
However, business opportunities have shrunk in Japan and overseas since the collapse of the bubble economy, making it difficult tomaintain technical capabilities.
With this as a background, using the Great East Japan Earthquake as an opportunity, we have raised public interest in the development
and maintenance of social infrastructure. In recent years, in the construction industry, especially the civil engineering business, national
resilience, the renewal of a crumbling social infrastructure, decarbonization, and improvements to our defense capabilities have becomepressing issues. Furthermore, due to budgets shortages and the failure of engineers for planning and management, plus a shortage ofworkers, we are also entering a situation in which smooth business continuity is becoming increasingly more difficult.
We are in an era in which various forms of business are working to solve these issues and problems, and to improve Japan's
infrastructure potential. For this reason, we are working to become an integrated infrastructure service company. To achieve this, we arestrengthening our core businesses to improve our construction, design, and technological development capabilities in the civil engineeringbusiness, and we are accelerating our expansion into new business areas, including in renewable energy, carbon neutrality, andenvironmental technologies.
Our civil engineering business has a long history , during which we acquired the technical skills that are indispensable for monozukuri(manufacturing). In the future, while valuing our history and traditions, we will acquire new technological capabilities and respond to thedemands of the era that our social infrastructures serves.

Establish a structure for new business areas

Civil Engineering Project: Work to Take Measures for Sediment Flow at Yamasubaru Power Plant Dam (Higashiusuki-gun Morotsuka, Miyazaki Prefecture)• Strengthen relationships and build institutions with specialist companies, and others

Establish a sustainable, good-quality supply capacity and system• Take on the challenges of improving work site productivity in collaboration with cooperating companies• Implement measures to reduce the load on the cash flow and upfront investments of cooperating companies

Risks• Worsening profitability caused by soaring prices of construction material • Drop in work site productivity because of the aging and shortage of workers• Loss of opportunities to get orders because of problems relating to quality or safety • Inadequate adaptation to major environmental changes
1. EPC: Acronym for Engineering Procurement Construction. Work flow system comprising design, procurement, construction and test runs in the engineering business
CM: Acronym for Construction Management. A method in which the construction manager manages the design, construction ordering, and process management integrally from the position of the ordering party
2. BIM: Acronym for Building Information Modeling. A method for utilizing streamlined information on planning, design, construction and maintenance by constructing buildings in 3D space on computers
CIM: Acronym for Construction Information Modeling. An attempt to use the concept of BIM, which is becoming popular in the construction field, in civil engineering.

INFRONEER Holdings Inc.

72

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

FY2021 Initiatives and Performance Review

TOPICSIn recent years in the civil engineering business, demands for national resilience, renewal of a crumbling social infrastructure,
decarbonization and improvements to our defense capabilities have become increased. With this as a background, we have responded
to the diverse needs of society, including developing new markets and improving productivity and the like from a long-term
perspective.
In our core business, we maintain industry-leading overall evaluation capabilities with high technical proposal capabilities andaccurate budgeting, which results in us receiving orders. In actual construction, during the large-scale renovation of a dam, we used
our high technical capabilities to challenge the social issues including the major natural disasters of recent years and aging, andimplemented a flood control recovery function.
This technology allowed us to carry out high-precision construction, achieving significant labor-savings, and shortening theconstruction cycles for steel shoring work and improving the quality. It has also greatly improved safety when face cutting to prevent
rockfall3.
In its recent results, despite factors such as the shrinkage emanating from the Ministry of the Environment and the decrease in net
sales of completed construction contracts of large-scale shielding constructions, the Company maintained net sales of about ¥150
billion thanks to robust orders for large-scale private construction projects and other government construction projects. In FY2021,
there was a decrease in domestic civil engineering work, including large completed construction projects, and net sales were morethan ¥142.6 billion. However, while orders for domestic government construction projects were struggling to grow, orders for private
construction projects were robust. For this reason, we obtained a construction volume of more than ¥161.5 billion.
3. Loose rockfalls occurring during face cutting: With the leading-edge technology (face cutting) for excavating at mountain tunnels, the rock face becomes exposed, and industrial accidents can occur as a result of falling rocks.

Results (Net Sales/Profit Margins)
Net sales

Gross profit margin_results(Billions of yen)

150

Orders (Government)

Gross profit

Gross profit margin_forecast

154.3

147.7

Domestic*

Overseas*

Gross profit

140.9

Profit margin on orders
received_results(%)(Billions of yen)

30

4.5

4.3

150
20

3.0

15.5
14.1

15.2

10

30.7
0

FY202021.8
FY2021

1.5

1.3
0.7

23.3
FY202200(Forecast)

0.8

0FY2020

FY2021

FY2022(Forecast)

159.9

160.0

97.4

62.0

9.7

100

1.8

15.1

50

48.4

12.6

(%)

(Billions of yen)

20

1.0

Since the Great East Japan Earthquake, the need to be prepared for natural disasters
has increased. In this project, we carried out maintenance work on the seawall of a17.5-km section of the coastal area of Hamamatsu City as a defense against a
massive earthquake in the Nankai trough. CSG* dam technology was use as the core.
This business is financed with local donations. This project served as a businessmodel for the local region; we were responsible for the general management of thisproject to strengthen the country’s resilience.

Unmanned Construction that Improves Safety and Eliminates Labor Shortage

15

10

Technological inheritance, safety improvements, and productivity improvement have been
issues in the construction industry for many years. This project is a new construction of aflat-bottom tunnel (extension 1,665 m) on the Takachiho Hinokage Road, General National
Route No. 218.With special geological layers and severe constraints, we maximized ourtechnical capabilities and successfully penetrated the ground. We also actively took on
the challenge of technology development and established technologies that included
unmanned steel shoring construction. We will expand the know-how we have developed
here into future tunnel and shield construction.

0.5

0.5

9.5

9.0

9.0

115.1

62.5

98.0

FY2020

FY2021

FY2022500Initiatives for National Resilience Using Dam Technology*CSG: Acronym for cemented sand and gravel. A new type of dam in which cement and water are added to the locally sourced materials, and a cement-based solidified material produced by simple
kneading and mixing is used. By making the cross-section of the embankment a trapezoidal shape, three types of rationalizations of design, materials and construction can be attained.

Profit margin on orders
received_forecast

200

20.8

Civil Engineering Project: Measures for Sediment Flow at Yamasubaru Power Plant Dam
Facility Usage: Power plant/Location: Morotsuka-mura Higashiusuki-gun, Miyazaki
Prefecture
Year of Completion: 2022/Received 3rd Civil Engineering Award from the Japan
Federation of Construction Federations in 2022

Orders (Direct control)(Billions of yen)

163.5
100

Overseas*

Orders (Private)

Many dams in Japan suffer from diminished functional degradation caused by sandand aging. The number of natural disasters such as typhoons has also increased inrecent years. Renewal work is one of the major initiatives we use to solve those
problems. This project was the first in Japan to undergo a major modification whilestill generating power.

Construction of Hamamatsu Seawall : Maintenance Business of Tsunami
Control Facilities in Coastal Zone at Hamamatsu City
Facility Usage: Embankment (Coast)/Location: Hamamatsu City, Shizuoka Prefecture
Year of Completion: 2020/ Received 3rd Civil Engineering Award from the Japan
Federation of Construction Federations in 2022

Results (Orders/Profit Margins)Domestic*
Net salesFirst Large-scale Dam Renovation Project for an Aging Infrastructure

5(Forecast)

0.05
0

0

FY20200
FY2021

FY2022(Forecast)*Because of the numerical values include the real estate business, the numerical values before FY2021 are different from the published data.
*For overseas, the amounts were calculated using the exchange rate at that time.

Future Outlook
The issues to be addressed by the civil engineering business are diverse; they include introducing public-private partnerships to solve
the deterioration in the infrastructure and the shortage of financial resources for the future, and reforming working styles against a
backdrop of a shortage of workers and required improvements in productivity.
One risk we have recently identified is the rise in material prices caused by delays in large-scale construction projects that havebeen impacted by major social accidents and changes in the global situation. To seize new market opportunities, we are further
strengthening our initiatives in the wind power market, nuclear power plant-related projects, highway re-basing, dam renewal, andlocal government water supply projects.
In the current technical cooperation to design and construct a tunnel to reroute sediment transportation at the Omachi dam, andothers, which is currently being designed, the sediment countermeasures technology is being used to evaluate the flood adjustment
capacity of the existing dam. This is the first project we have received the Ministry of Land, Infrastructure, Transport and Tourism ECI4,
and we are moving forward with initiatives to sign an agreement after the designs are completed. To improve productivity, we are
introducing introduction of new technologies including DX, automation, and unmanned vehicles, as well as the training andstrengthening cooperation with cooperating company staff.
From the next period onwards, we will continue to maintain our first place ranking in the technical evaluation of comprehensive
evaluation projects, and we expect to maintain our performance with orders for solid domestic government construction projects andexpand private construction projects.

Miyazaki No. 218 Flat Bottom Tunnel Construction
Facility Usage: Road Tunnel (Mountain)/
Location: Hinokage-cho, Nishiusuki-gun, Miyazaki Prefecture/Year of Completion:
2020

Employees Views
Currently, I am responsible for the construction of a bridge over the Kumano River, which flows along theborder between Wakayama and Mie Prefectures. In addition to improving the convenience of public
transport, this bridge will also play a role as an evacuation site for a Nankai trough earthquake. This
construction project has enabled me to understand the importance of infrastructure development moredeeply. In my private life, I’m married to one of the civil engineering staff members at MAEDA. Our firstchild was born in July. After giving birth, my wife also returned to work. We are discussing how we canwork together both in raising our children and working. However, we believe that it is necessary to improvethe child-rearing support system, which has no vacancies; people are denied admission to any daycare
facility pathway through the school year when there is a transfer. If we have the opportunity to be involvedin planning-related work in the future, we are enthusiastic about trying to introduce an in-house nursery as
part of our company’s child-rearing support system.

Takahiro Fukuroi who joined MAEDA CORPORATION in 2015; he’s working at Kumano River Bridge Work Site

4. ECI: Acronym for Early Contractor Involvement. One of the ordering methods that involves the construction vendor from the design stage73

INFRONEER Holdings Inc.

74

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Building Construction Business
Opportunities

Strengths• Expansion of the public-private partnership market to solve
social issues• Expansion of large-scale redevelopment projects• Expansion of renewable energy markets through carbon
neutrality• Creating new building needs, such as measures to cope with
infectious diseases• The digital revolution that is expanding around the world• Strategy for receiving large-scale redevelopment project and abundant experience• Industry-leading ultra-high-rise building performance• Securing profit rates unaffected of market conditions• Technical ability to meet changing customer needs• High design capabilities familiar with knowledge of workability andmaintenance• EPC through links with the infrastructure management business• Highly technical and collaborative ability with trustworthy cooperative
groups1

INF
infrastructure
construction
measuresPursue Group synergy

Diverse construction technologies to meet the changing needs increating cities
In an era of rapid development of urban areas that resulted from the high economic growth, the Architecture Department was establishedin 1960 as a foothold for business activity in urban areas. In the following year, it fully expanded into the housing sector. Construction

Establish a structure for new business areas

Vision Hotels; Hotel Building New Construction (Taki-cho, Taki-gun, Mie Prefecture)

field of ultra high-rise residential buildings. We have also used this technology to participate in projects exceeding ¥100 billion for the
Tokyo Olympics.
regions and strengthening disaster-prevention functions against places gathered with wooden houses. Over a long period of time, theGroup has worked with local residents and related parties to discuss and plan for the optimal redevelopment of the region.
In recent years, we have begun to achieve this. Now we are able to provide more value-added services that focus on customer

Create more value-added not just through contracting, but through our de-contracting philosophy.
• Collaborate with developers on redevelopment areas, and participate from the upstream stage with a view to purchasing
seed lots.
• Introduce proprietary technologies such as Floor Chamber Air Conditioning Systems and Space Disinfection and
Deodorization Equipment for infection control technology, and increase the number of orders by providing more valueadded services that focus on customer satisfaction.
Minimize construction costs, and improve profit rates.
• To accelerate constructability and reduce costs, we will implement menu/standardization of design and construction work to
standardize buildings, including tower apartments, logistics warehouses, and factories.
Establish a sustainable supply system by strengthening links with partner companies, including the Zenyu-kai• Strengthen the supply capacity of cooperating companies centered on the Zenyu-kai by using a combined ordering system(framework and interior and exterior construction,), and support the introduction of and training for ICT technologies that
contribute to labor-saving operations, and improve the productivity of cooperating companies.
• Activate recruitment support for cooperating companies and improve the supply capacity of Zenyu-kai
Improved workplace productivity• Improve the productivity of work place staff by verifying ICT technology and deploying it as a standard tool in the• Activate and diversify design BIM and construction BIM, and improve workplace productivity.
Initiatives to close work sites eight days every four weeks• Support for cooperative companies and their associated workers to improve productivity to enable work sites to be closed
for eight days every four weeks.
Development and implement a new business model based on our de-contracting philosophy

Promote M&A

In the metropolitan area and its surrounding areas, we are facing challenges that include updating urban functions and revitalizing

Promote DX/
shared services

in Japan at that time. To date, we have completed more than 40 ultra high-rise buildings and are proud to be a leading company in theStrategy

workplace to save labor.

technology was steadily developed, and in the 1990s, the challenge of ultra-high-rise buildings (more than 100 m high) began. In 2008,
our capabilities grew to take on THE TOKYO TOWERS (58 stories above ground and two buildings), which were the largest condominiums

1. Zenyu-kai: See page 62 Revitalizing the Community and Support Partners• We will expand business orders by strengthening links with the infrastructure management business division and the CSV
strategy division, including the Integrated Infrastructure Services Strategy Office at INFRONEER, to solve local social
issues.

satisfaction, with the urban redevelopment project as the axis of our business. We are committed to creating a new city that takes
advantage of the history and characteristics of the region, and to turning it into a safe and secure city.
With the new Holdings structure, we are committed to building a new business model that takes full advantage of the synergies
between segments. In the previous year, we received an order for a new gymnasium in Aichi Prefecture and we will be involved from thebusiness plan. We are currently moving forward with that construction. We will continue to use the technical capabilities we havedeveloped as a building construction business to focus on solving social issues.

75

Risks
• Worsening performance due to price competition • Revenue is affected by fluctuations in building materials prices • Construction delays,
generation of extra costs, and loss of credibility because of quality bugs • Loss of important workers because of industrial accidents • Lack ofawareness of social responsibility for environmental issues • Low supply and construction capacity resulting from a shortage of workers • Loss ofbusiness opportunities resulting from misreading the market

INFRONEER Holdings Inc.

76

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

FY2021 Initiatives and Performance Review

TOPICS

Since FY2014, we have strengthened our efforts to secure large-scale construction projects, and from FY 2015 we have maintained arobust completion profit ratio of approx. 10% by strengthening VE/CD2 that has been thoroughly managed for profit rates, low-costpurchasing through centralized procurement and efficient management at the construction sites. At the Tokyo Olympics, we expanded
our business area by constructing and dismantling temporary observation seats at several competition venues. Furthermore, we
received orders to construct five blocks (six buildings) at Harumi Flag (Athlete's Village), and after the Olympic Games, we arerenovating our rentals and subdivided houses and are constructing a new 50-story ultra high-rise housing comples.
In FY2021, we were concerned about the special needs after the Tokyo Olympics and the impact of the new coronavirus. However,by promoting business strategies, including orders for the Build/Transfer+ concession Aichi Arena, manufacturing from upstream ofredevelopment projects, and expanding the number of stable customers, we received multiple large-scale orders exceeding ¥10billion, and achieved a record high order value of ¥260 billion. As the construction industry in general struggled to earn profits becauseof constant price increases, we exceeded the previous fiscal year in both orders and completion profits.

Results (Net Sales/Profit Margins)
Overseas direct control

Gross profit margin_results

Domestic*

Overseas*

Gross profit
Gross profit margin_forecast

Main overseas direct control local companies

Orders (Government)

Gross profit

Profit margin on orders
received_results(Billions of yen)(%)(Billions of yen)(%)(Billions of yen)

300

30

15

30

300

218.4

215.5

245.1

239

200

100

20

10

10.7

10

10.7

21.5
0

FY202023.5
FY2021

213.8

10

10

6.9

20

200

6.9

6.8

6.5

11.1

10

5

26.5
FY20220

0

0.4
Net sales(Forecast)

0.1

10

7.5

7.2
0.5 0.4

Gross profit

FY20200.04
Net sales

0.5 0.5

Gross profit

FY2021

0.1
Net sales

0.6 0.5

Gross profit

FY2022 (Forecast)

0

100

0

Overseas*

Orders (Private)
Profit margin on orders
received_forecast

259.6

256.0

186.9

224.0

8.0
7.0

7.0

31.3

72.7

32.0

FY2020

FY2021

FY2022

6.5

Orders received(Major local subsidiaries)(%)(Billions of yen)

15

15

10

10

(Forecast)

Orders (Direct control)

11.0

5

0

In the regional revitalization of local cities, it is necessary to create cities
that will attract tourists and generate local employment. This project is acomposite hot spring facility on the themes of healing and food that utilizes
the nature surroundings and ingredients from the region. Our company
participates as part of the business.
New Construction of Hotel Building at Vision Hotel
Facility Usage: Resort Hotels and Inns/
Location: Taki-Cho, Taki-gun, Mie Prefecture; Year of Completion: 2021
Support the Diverse Construction Needs of Sporting Events
We constructed facilities for athletes to stay and temporary observation
seats for one of the world's largest international sporting events. After thegames, we renovated the facility into rentals and subdivision housing andconstructed ultra-high-rise residential buildings (50 stories).

Results (Orders/Profit Margins)Domestic*
Net sales

Participate in the Super City Project, the Detonator for Regional
Revitalization

Redevelopment of type 1 urban area; western area of Harumi 5-chome
New Construction at 5-5 Tower Building
Facility Usage: Shared House/Location: Chuo-Ku, Tokyo/
Year of Completion: 2025 (Planned)

4.0

7.4

7.3

0.1

0.5

7.3

6.8

7.0

FY2020

FY2021

FY202250Introduction of Japan's first Build/Transfer+ concession Method* at the Arena
A World-class Arena Project that Implemented State-of-the-Art Technology
The Ministry of Economy, Trade and Industry and the Sports Agency arecommitted to stadium and arena reforms. This is a core of urban
development and regional revitalization that will act as a hub for exchanges
between diverse generations. As one of the model businesses for that, theArena has adopted Japan's first Build/Transfer+ concession method, making
full use of private sector vitality, to provide high-level hospitality services.

(Forecast)*Numerical values include the real estate business, and so the numerical values before FY2021 are different from the published data.
*For overseas, the amount was calculated using the exchange rate at that time.

Future Outlook
With increased competition and the recent surge in material prices caused by a shrinking construction market after the Tokyo
Olympics, our business base, the redevelopment and housing complex businesses, has always secured ¥1 trillion in sales information.
Based on this information, we will stabilize our performance in the medium to long term by anticipating future orders and profits forseveral years with manufacturing from the upstream.
We will also focus on strengthening our efforts to reorganize and rearrange large-scale meat processing facilities, which will be
increasing in the future, by leveraging our production engineering capabilities and turnkey3 achievements.
We recognize that it is the responsibility of building engineers to build a decarbonized society. To obtain ZEB/ZEH-M4 certificationthat our company significantly conserves energy, we will introduce design technology that contributes to reducing CO2 emissions,collaborate in developing floor chamber air conditioning (central air conditioning), and develop medium-sized or larger scale woodenbuildings that have a proven track record in each region. We will reduce of CO2 emissions during construction and building operation.
In the new revenue base of the de-contracting business, the public-private partnership market is expected to expand, so we will
increase our fusion of the contracting and de-contracting businesses to create EPC through links with the infrastructure managementbusiness. In addition, we will take advantage of our achievements with Aichi Arena and actively participate in the stadium and arena
reforms promoted by the Ministry of Economy, Trade and Industry and the Sports Agency.
Based on our extensive construction achievements, we are committed to working with partner companies to build complex resorts
such as Auberge that will take advantage of local characteristics and lead to regional revitalization.
2. VE/CD: Acronym for Value Engineering & Cost Down
3. Turnkey: To deliver the product to the customer in a ready-to-run state.
4. ZEM/ZEH-M: Acronym for Zero Energy Building & Net Zero Energy House Mansion. Buildings and homes with net zero or negative annual primary energy consumption

77

Construction work related to the development and operation of a new
gymnasium in Aichi Prefecture (Aichi Arena)
Facility Usage: Gymnasium/Observatory/Location: Nagoya City, Aichi Prefecture/
Year of Completion: 2025 (Planned)* Build/Transfer+ concession method: A method in which a business operator designs and builds based on its own proposal, transfers ownership to the prefecture government after completion, and then the prefecture
assigns the operating rights for public facilities to the business operator to implement maintenance and operation.

Employees Views
For the last two and a half years, I have been engaged in construction work at construction sites for largecommercial facilities. I noticed that the children's park in the commercial facility for which I was
responsible became a walking route for the local nursery school, and that students, couples with children
and elderly people come to the commercial facility to shop. I felt that I had connected with the local
residents through this construction work. I want to continue to take leadership as a member of the
INFRONEER Group and create value for society by constructing buildings that will continue to be loved.
Also, although the number of key female staff has been increasing since I joined the Company, I still feelthat the ratio is low. In the future, I would like to think carefully about how to build an environment where
women can work, I would like to think carefully about it and keep my eyes open to see our strengths.
En Chon who joined MAEDA CORPORATION in 2015; she’s working at South Ikebukuro 2-Chome Redevelopment Workshop

INFRONEER Holdings Inc.

78

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Road Civil Engineering Business
Opportunities

Strengths• Maintenance market expands because of the aging infrastructure

Achieve stability and high profitability with a wide customer network
based on two axes: construction and products.

• Accelerating large-scale renewal projects carried out by roadmanagement companies• Expanding society's demand for ESG and SDGs(low-carbon asphalt
mixtures)

INF
infrastructure
construction
measuresPursue Group synergy

Technical Innovation to Create a Path that Connects People
The road civil engineering business began operations in 1930 as a pioneer for asphalt paving work. We have worked on roads and various
exterior facilities nationwide, including highways, and have supported the development of social capital and worked to provide attainmentof a rich life for the local community for more than 90 years.
In the 1960s, in order to quickly respond to an the automobile-based society and changes in people's lives during the period of highgrowth, we began installing asphalt mixture factories in various regions of Japan to sell our products and expand our business area.

Establish a structure for new business areas

2nd Tomei Expressway Fuji Nishi Pavement Works Fuji City, Shizuoka Prefecture

Currently, we have 111 sales offices and 100 asphalt mixture factories that manufacture and sell asphalt mixture nationwide. Taking
asphalt mixture. We are addressing various regional issues such as creating safe and secure roads.
In the future, while the new road construction market will shrinks, the maintenance market for aging roads and the like is expected to
expand. Therefore, in the road civil engineering business, we have positioned the infrastructure maintenance and management business

Promote DX/sharing

advantage of the community-based company, we implement construction directly linked to roads and people’s lives and the supply of

as a third pillar using the construction and product technology capabilities that we have developed so far. The pressure for solving
which we are already involved in; we will continue to focus more on that in the future, taking advantage of the achievements that othercompanies have made.
We will make the depth of our links to regional construction companies and municipalities, which have been a source of strength in the

Promote M&A

problems for the local governments all over the country to solve problems is increasing in the area of comprehensive private contracting,• Secure a good business base... 111 sales offices, 100 plants,
and over 10,000 customers.• Stable cash flow creation capability• Build up our road operation know-how from the operation results ofthe comprehensive private contracting for local municipalities (3cases).

Strategy
Establish a new revenue base in addition to private construction, which is our strength• Build our own comprehensive private contracting model that uses the abundant private construction achievements to date.
• Develop new products and new manufacturing technologies (environmentally friendly technologies and environment-preserving
technologies)• Use the network of each company in the Group to expand the sales channels for high value-added products such as mild patches.
• Develop a comprehensive private contracting nationwide through M&A in the road sector (construction and manufacturing plants)• Expand business areas through planning and proposals for new environmental construction laws.
• Expand share through manufacturer and sales of low-carbon asphalt mixtures.
Productivity reforms through DX• Streamline business management by visualizing and sharing customer and asset information and the like in real time
• Systemize by standardizing sales know-how and business processes, and introduce sales support tools, to increase sales
efficiency and expand orders.
• Maximize production efficiency and labor utilization rate by systematizing construction, manufacturing and shipping operation
management, and optimizing resource allocation using analysis results of operation data.
• Improve productivity and quality through the use of digital technologies (ICT construction, etc.)
Synergy through Group collaboration• Share the know-how of the comprehensive evaluation system of each company in the Group, and strengthen our efforts forgovernment agency construction projects• Use the sales networks of each company in the Group to expand opportunities for obtaining orders and stabilize the amount ofconstruction on hand.
• Establish a new department specializing in infrastructure operations (PPP/PFI Division) for MAEDA ROAD, and build a full-scalecollaboration structure with each company in the Group.
• Expand orders for the comprehensive private contracting and road concession business using the bidding support and operational
know-how held by MAEDA.
• Leverage the overseas network of each company in the Group to strengthen our initiatives in overseas markets.
Human capital strategy• Give continuous training to employees to raise awareness of compliance (compliance with laws and regulations).
• Implement training in collaboration with companies in the Group to improve safety awareness.
• Implement planned training for human resources with a management perspective.

road civil engineering business, one of the driving forces behind our integrated infrastructure service company.
In recent years, the road paving industry has faced many challenges, including soaring raw material prices caused by soaring crude oil
prices and exchange rate fluctuations, and environmental problems. In our countermeasures for environmental problems, the particularfocus of our company is on low-carbon asphalt mixtures. We will work to maintain and improve both the living and natural environments
and nature through these people-friendly paths.

79

Risks
• Higher crude oil prices caused by the global situation and interest rate fluctuations between Japan and the United States • Labor shortage causedby fewer skilled construction technicians • Construction delays caused by quality bugs, generation of extra costs and loss of credibility • Loss ofsocial trust because of late adaptation to environmental problems

INFRONEER Holdings Inc.

80

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

FY2021 Initiatives and Performance Review

TOPICSIn FY2021, we focused on the following three areas because of the growing interest in ESG and SDGs.
• Initiatives to manufacture of low-carbon mixtures • Promotion of DX • Started Comprehensive Management Project Including Roads in Fuchu City
This was a year in which our initiatives for decarbonization accelerated. As a road civil engineering business, we have been working
to promote foamed asphalt technology and to manufacture and sell low-carbon mixtures to achieve decarbonization. Foamed asphalt
generators have been installed in 44 plants nationwide, and we will move forward with installing them in all mixing factories during
this period. By reducing CO2 emissions when manufacturing the asphalt mixture, we are creating a path that is friendly to people andthe environment.
We are also introducing ICT construction as a response to the shortage of construction skilled construction workers. We are working
to improve the construction productivity and reducing the number of workers on the site. At the same time, we are improving
construction precision and safety.
In the construction sector, efforts have been increased not only in private construction projects, which has been one of ourstrengths, but also in government construction projects and comprehensive road commissioning. We are working on a wide variety of
construction projects using the know-how of each company in the Group. In April 2021, we launched the Comprehensive Management
Project Including Roads in Fuchu City (East Area), a joint venture between MAEDA ROAD, MAEDA and six other companies. We provide
high-quality services that are unique to the private sector and that fuse the engineering capabilities of MAEDA ROAD in road
construction with MAEDA's know-how in infrastructure operations.
We experienced a very difficult year because of soaring crude oil prices. However, the new initiatives described above produced
significant results that will lead to future success.

Construction Business Results(Net Sales/Profit Margins)PrivatePublicOthers2

Net sales

Gross profit

Net sales

Gross profit margin_results(Billions of yen)

200

165.6
7.7
150

21.7

162.1
8.1
12.7

170
6.8
18.6

Full Year*

Gross profit

Net sales

Gross profitGrossmargin_forecast
profit margin_results

Gross profit margin_forecast(Billions of yen)

(%)

(%)

(Billions of yen)

200

200

30

30

80

166.0
158 23.9

162.1

150

161

156

50

0

100
85.2

90.4

89.3
50

51.0

50.9

55.3

FY2020

FY2021

FY2022

100

10.7
10.8
17.3

0

(Forecast)

FY2020

10.5

9.8
9.2

10

38
17.4

14.9
FY202118.1

0FY2022
FY20200(Forecast)

1. Previous consolidated figures for MAEDA ROAD; does not take into account the consolidated elimination
within the INFRONEER Group. “Small scale" refers to work with a contract value of ¥5 million or less.
2. Others: Orders received by affiliated companies (mainly government construction) and elimination of
intra-segment transactions

Gross profit margin_forecast
(%)

73.5

77.0

72.9

30

21.5

20
100

Gross profit

Gross profit margin_results(Billions of yen)

160.5

20

14.4

13.8

12.4

7.3

20
40

18.1

12.6

10

15.8

19

12

FY2021

FY2022(Forecast)

0

14.4

0

FY2020

13.8

9.2

10.6

FY2021

FY2022

10

Initiatives to Improve Productivity at the Construction Management Stage
Using a Laser Scanner Equipped on Construction Machinery

0(Forecast)*The above figures are MAEDA ROAD's previous consolidated
figures and do not take into account the consolidated
elimination within the INFRONEER Group.

Future Outlook
In the road civil engineering business, we will continue to create diverse paths in the medium term to contribute to the development ofsocial capital and the enrichment of local communities. For that purpose, we are working to maintain and improve the environment bypromoting key measures such as physical improvement, productivity reforms, and establishment of a new revenue base.
In the construction business, we aim to develop the road comprehensive management business, based on the performance of theComprehensive Management Project Including Roads in Fuchu City (East District), and to develop multiple bases rooted in the region.
We will strengthen our ability to submit proposals for a wide range of needs that include rainwater control and landscaping projects,
and will use our strengths in taking on new challenges such as the development of ICT construction technology, which is important insmall-scale projects.
For this reason, from FY2022, we are introducing initiatives at the ICI General Center to develop technologies across businesssegments.
In our product business, we aim to reduce CO2 emissions by 2030 by expanding the use of low-carbon mixtures designed for theenvironment through the use of mid-temperature asphalt mixtures and biomass fuels.
This technical development and development of new materials will strengthen our core construction business and product sales
business, and expand into new business areas.

81

MAEDA ROAD sells an asphalt mixture (our name:
LEAB) manufactured using FA technology(mechanical microforming method), a mediumtemperature technology for asphalt mixtures. We
will use FA technology to reduce the
manufacturing temperature of asphalt mixtures toreduce CO2 emissions, and work to solve regional
problems by enabling future sustainable suppliesof asphalt mixtures to areas where supply is aconcern.
We are also introducing initiatives to reduce
GHG in our corporate activities through the sale of
low-carbon mixtures. "Low-carbon mixtures" is a
generic name for asphalt mixtures manufactured
using a method with lower CO2 emissions than theconventional method. The low-carbon production
method involves using biomass fuel, RE100
power, FA technology and a regenerative
deodorizing furnace. We are also introducing
initiatives to share value with our customers andevaluate low-carbon mixtures across our entire
supply chain.

Manufacturing and Sales Business Results (Net Sales/Profit Margins)

Net Sales and Gross Profit 1 第1四半期 ※Orders received 1
Small scale

Initiatives to Reduce CO2 Emissions Across the
Entire Supply Chain and to Solve Regional
Problems by Manufacturing and Selling Foamed
Asphalt (FA) Technology and Low-carbon Mixtures

An as-built management system that uses a laser scanner equipped on construction machinery
is a technology that performs real-time, three-dimensional as-built management of pavement
work. The acquired data can also be used as BIM/CIM at the maintenance management stage.
This technology has received a great deal of attention as one that will improve productivity
at the construction site. For example, it was awarded the 2020 i-Construction Award for
Excellence of the Ministry of Land, Infrastructure, Transport and Tourism.

Employees Views
Let me give you a simple description of the road maintenance business that we perform for Yashio City in
Saitama Prefecture. The work includes patrolling the roads (309.2 km) throughout the entire city, and using
our company's mild patches to maintain and repair road surfaces. This falls under preventive maintenancemanagement. Previously, City Hall consistently received complaints and implemented repairs. However, by
proposing and carrying out guaranteed road maintenance workers and strategic preventive maintenancemanagement and getting involved in system design to reduce LCC (Lifecycle Costs), our company has
outsourced road maintenance work that continues to the present day. In the future, we will play a role as anintegrated infrastructure service company by maximizing local advantages and expanding the scope of ourwork with road weeding operations and the management of ancillary facilities.
Hiroyoshi Yamauchi who joined MAEDA ROAD CONSTRUCTION Co., Ltd in 1994; he’s working at Saitama Sales Office

INFRONEER Holdings Inc.

82

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Infrastructure Management Business
Opportunities

Strengths

Continued expansion of the public-private partnership market• Expansion of Build/Transfer+ concession and conventional PFI invarious regions for sports and literary projects typical of arenas• Expansion of the public-private partnership market in all fields of water andsewage, especially the expansion of PFI projects, including the renewal of
pipelines, whose aging will problems will soon become apparent• Promotional support from the Japanese government, which ismoving forward with introducing the availability payment method forinfrastructure such as general roads.

Operational performance and human capital in diverse fields• Human resources with know-how accumulated throughinfrastructure business development and operations, and diverse
and in-depth knowledge and experience• Financing capabilities based on minimization of LLC and appropriate
risk assessment

Reviewing the basic energy plans to expand the renewableenergy market• The renewable energy market will expand rapidly with government
promotion to achieve carbon neutrality.
INF
infrastructure
construction
measuresPursue Group synergy

Diverse Initiatives to Make Regions More Attractive

Promote M&A

83

Promote DX/
shared services

In recent years, as requirements to maintain infrastructure have diversified and the pace of change has increased, it is not possible for us
to meet the expectations of society by simply following through on contracting projects. To develop sustainably and continue to return
value to society, it is essential to work in both contracting and de-contracting cycles to build a stable revenue base and create added
value that is unaffected by the external environment.
Since 2009, we would aim to become No. 1 in the environmental management field and from 2011 we have been deploying decontracting as our management strategy. We are leading the concession business in Japan, implementing initiatives with global partners
to operate the Sendai International Airport since July 2016, the toll roads in Aichi Prefecture since October of the same year, and the Aichi
Sky Expo since August 2019. In recent years, the social needs of the concession business have increased, and its scope extends tovarious sectors that now include arenas and water supply and sewage. In the renewable energy business, we have been involved in a
number of solar power businesses since 2013, and the wind power business since 2015. In the future, it will be necessary to respond to awider range of needs, including the biomass business.
In the future, we will not only need to work for single facilities, but also to solve issues related to the infrastructure and public facilities
that are specific to a region, while grasping the issues specific to that region and a vision for the future. One of these issues is thecomprehensive management business. We started work as the INFRONEER Group by combining the know-how accumulated through ourconcession business and renewable energy business with the strengths that include our maintenance management know-how andestablishing regional bases for each INFRONEER Group company.
In addition to our maintenance and operation performance for infrastructures across a wide range of sectors, we will promote DX andR&D to achieve stable and efficient operations and build and strengthen our promotional structure by developing and training the required
human resources. Through these initiatives, we will work to create high-quality and attractive infrastructure services.

Establish a structure for new business areas

First toll road concession in Japan
In our operation of toll roads in Aichi Prefecture, we are implementing the "Aichi Accelerated Field" initiative which uses actual infrastructure facilities to demonstrate technologies that will solve problems
with the operation and maintenance of the social infrastructure.
https://www.arcc.jp/

Deepening collaboration with core businesses• Synergy effect emerging from the fusing of engineering capabilities
and infrastructure operation know-how in core businesses in eachcompany of the Group• Diverse regional networks in each company of the Group

Strategy
Strategic approach that utilizes the benefits of establishing INFRONEER Holdings• Strengthen the lobbying activities for project creation by utilizing our sales staff at partner companies and for each company in theGroup that is expanding in Japan and overseas.
• Improve competitiveness and productivity by accumulating and deploying best practices in the infrastructure managementbusiness undertaken by each company in the Group• Establish an Integrated Infrastructure Services Strategy Office in INFRONEER Holdings to unify the infrastructure operational
strategies of each company, and maximize the driving force by effectively utilizing the strengths and management resources ofeach company in the Group.
Develop human resources and strengthen the promotional structure based on a long-term plan.
• Implement a plan for hiring of skilled workers according to the development field and number of projects.
• Improve our organizational capabilities by systematically promoting human resource rotation between the development and bidding
support departments and business management companies (SPCs) for renewable energy and concessions, etc.
• Promote human exchanges within the Group, and develop multi-personnel resources that combine the strengths of each company
Drive DX and R&D for more stability and profitability• Reduce operating costs by deploying the operating system developed for toll roads in Aichi Prefectures to other projects andmanaging them centrally.
• While making maximum use of the technologies possessed by each company in the Group, cooperate with each company toreduce infrastructure operating costs by efficiently developing and implementing the required technologies.
• Build a data platform that includes links with the City OS for participation in supercities and smart city operations
Improve competitiveness through collaboration with domestic and overseas companies and M&A.
• Build diverse partnerships (consortiums, business alliances and joint ventures, and others) with domestic and international
companies with leading-edge know-how and experience.
• Expand renewable energy PJ, and expand planning and management functions for new fields such as forestry and waste materials
through collaboration with external companies and experts, and through M&A.

Risks
• Intensified competition caused by market expansion related to public-private partnerships •Changes in policies and regulations related to theenvironment and energy •Rapid changes in market conditions and rising infrastructure construction costs led to lower business revenues. •Costsof capital procurement rose in line with fluctuating interest rates. •The occurrence of force majeure and reduced market for public-private
partnerships caused by the resurgence of the COVID-19 pandemic. •Risks associated with the agreement formation process with administrative
organs in public-private partnership projects

INFRONEER Holdings Inc.

84

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

FY2021 Initiatives and Performance Review

TOPICSIn the infrastructure management business, to contribute to building the integrated infrastructure service company that the Group is
working towards, we have been developing new projects centered on the public-private partnership business, including concessions,and the renewable energy business, and managing and selling existing projects. In FY2021, affiliated businesses including Aichi Road
Concessions Co., Ltd. and others had strong results. In addition, two solar power projects were sold, resulting in net sales of ¥18.7
billion and a gross profit of ¥7.6 billion.
As a new project in the field of concessions, since April 2022 we have been operating Osaka City Industrial Water Specific Operation
Project, the first industrial water concession in Japan to include work from pipeline maintenance to renovation and renewal. In addition,with the new gymnasium development and operation project in Aichi Prefecture (Aichi Arena), we established affiliated businesses withdomestic and overseas partners to produce a new value creation model that will revitalize the economy and local society through an
arena adapted to global-level specifications. (Construction began in July 2022 and operation is scheduled to begin in April 2025).
In the renewable energy business, we will implement a wood biomass power generation project in Ozu City, Ehime Prefecture.
(Construction started in June 2022, and power sales are scheduled to start from August 2024). Biomass power generation is one of therenewable energy power generation businesses that has been developing rapidly in Japan in recent years for carbon neutral power
generation business with a low environmental impact.
Both public-private partnerships and renewable energy are on the rise, and we have strengthened our structure by setting up a
special department in INFRONEER Holdings. We will use these as a tailwind to contribute to the growth of the Group.

Results (Profit Contribution and Profit Margins)
Operating profit at consolidated subsidiaries

Individual performance contribution(Aichi Road C, Happo Wind Power Generation, and others)(O&M, EPC, development andbusiness outsourcing profit, and others)(Billions of yen)

Other revenue*

What is the "Profit Contribution Margin?"
109

10

The contribution margin for consolidated profits in the infrastructure management business above is a numericalvalue that combines construction work (EPC) profit generated by the infrastructure management business andconsolidated profits from SPCs involved in infrastructure operation, gains on sales, and revenue from M&A, etc.

7.2
6.2
5

1.1
1.3

5.3

5.2

0
0.5

1.2

7.1
2.9
0.2

0.8

0

3.8

4.8

4.3

4

2.9

FY2018FY2019FY2020

FY2021

FY2022(results)(results)(results)(results)

FY2030Operating profit¥100 billion(full year forecast)*Other income includes gain on sales and dividends on non-consolidated SPC shares.

Operating profit in the civilengineering, building
construction, road civilengineering and machinery
segments

Operating profit in theinfrastructure
management segment

Construction work (EPC) profit generated by the
infrastructure management business

Consolidated profits from SPCs
involved in infrastructure
operation, gains on sales, andrevenue from M&A, etc.

Contribution margin forconsolidated profits in theinfrastructure managementbusiness described above

Osaka City Industrial Water Supply
Specified Operation ProjectJapan's First Industrial Water Concession ProjectThis is a one-stop management project for the operation and maintenance of water purification
plants and water distribution plant facilities, and the maintenance and renewal of pipelinesthat receives fees from users. It is operated under the approval of the Minister of Economy,
Trade and Industry. Based on the results of this project, we will strengthen our ability torespond to various water projects.
Project name: Osaka City Industrial Water Supply Specified Operation Project/Facility Usage:
Industrial Water/
Location: Osaka City, Osaka Prefecture/Project Period: 10 years (Commencing April 2022)

Promotion of the Renewable Energy Business to Attain Carbon Neutrality
by 2050This project is our company’s first large-scale, woody biomass power generation
project. We estimate that 200,000 tons of wood pellets will be used for fuelannually. In terms of fuel procurement, we will establish a structure for thecontinuous and stable supply of fuel from FSC-certified local suppliers (mainly inSoutheast Asia) to attain sustainable business activities. MAEDA also received our
first order for a large-scale biomass power generation project as a contractor.
Project name: Ozu Biomass Power Generation Project/Facility usage: Biomass
Power Plant/
Location: Ozu City, Ehime Prefecture/Year of completion: 2024 (Planned)
Miura City Eastern Treatment Area

Japan's First Sewage Concession Project

Miura Kaigan Station
Kaneda Relay Station
Misakiguchi Station

Future Outlook(Relay Pumping Station)

Kaneda Relay Station

Eastern Ceptic Center(Sewage Plant)

In June 2022, the Cabinet Office announced the PPP/PFI Promotion Action Plan (Revised Edition, 2022)*, thereby accelerating public-private
partnerships, as local governments were feeling the pressure from the effects of the COVID-19 pandemic and the declining population. In theconcession business, we will actively create projects in new fields such as education and cultural facilities and parks, and implement
horizontal developments in fields in which we have a proven track record, including airports, roads, exhibition halls, arenas, and water supply.
We believe that there is a high social demand for arena facilities against the backdrop of sports promotion and local regeneration.
We view them as the same type of local infrastructures such as airports and roads, and actively work to contribute to local coexistence
and development that embodies "sampo yoshi (three-way satisfaction)" for the public, the region, and private sectors.
In the water business, we will establish a technology that determines and monitors the status of pipelines and maintains themthrough our Osaka Industrial Water Specific Operation Project, the first concession project in Japan that includes renewals and upgradesin the maintenance of pipelines. We aim to expand nationwide with partners who have global knowledge at home and abroad.
In the field of renewable energy, power generation projects are being planned and are underdevelopment focusing on onshore wind
power, offshore wind power, and wood biomass.
In addition, we will create new business and expand revenue opportunities by expanding into new areas such as forestry and waste
treatment.
In addition, We will provide high-quality infrastructure services on the technological demonstration project, Accelerated Field, for
operating toll roads in Aichi Prefecture and on DX in pipeline operations in the water supply business, Osaka Industrial Water SpecificOperation Project.

Eastern Ceptic Center

This project is one of six concession projects supported by the government based on the PPP/PFI
promotion action plan*. It is the first scheme in Japan that includes from maintenance to renewalof all processing plants, pumping stations and pipelines in one processing area. The knowledge
gained from this project will lead to the solution of issues common to the sewage business with a
new sewage business model through systematization and further improvement.
Project name: Miura City Public Sewerage (Eastern Treatment Area) Operation Project/Facility
usage: Public sewage/
Location: Miura City, Kanagawa Prefecture/Project period: 20 years (Commencement scheduled
for April 2023)

Employees Views
Since February 2021, I have been working on the development and operation of the Ozu Biomass Power
Generation Project. As an employee of an SPC (special purpose company) representative company, I am daily
considering how to improve the company's operating structure while consulting and coordinating with various
related parties.
In some of the work that we do in our position as business owners, we consider and develop the necessary
paths to complete the project after detailed discussions on the rules and structures. Then, when the project is
actually implemented, I am able to experience a great sense of accomplishment. The strength of our businessstrategy department is that we have human resources with diverse experience and knowledge of,infrastructure development and operational know-how. These give us competitive power in implementing
projects. I will continue to contribute to projects by working to expand my own personal knowledge.
Mizuki Tsuchiya who joined MAEDA CORPORATION in 2020; she is in charge of Business Strategy*PPP/PFI Promotion Action Plan (Revised Edition, 2022) https://www8.cao.go.jp/pfi/actionplan/action_index_r4.html

85

INFRONEER Holdings Inc.

86

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Machinery Business
Opportunities

Strengths

Reducing the number of skilled construction workers andpopularizing work style reforms• Accelerated flow of automated construction work
• Increased demand for automation and labor-saving products (ICT
construction machines)

Technical capabilities to consistently handle design,
manufacture, sales, leasing, and after-sales services• Ability to plan and propose a wide range of products using mobility• High product quality resulting from over half a century of cranemanufacturing know-how• Wide sales and service (maintenance) network in Japan andoverseas• Service (maintenance) capabilities as a major construction machine
manufacturer dealer

Increasing demands to build a decarbonized society• Expansion of the use of electrical products• Restoration of forests that absorb and capture carbon dioxide
INF
infrastructure
construction
measures

Strategy

Pursue Group synergy

Ensure sales through development and introduction of strategic products.
• Develop products to meet needs in the field in addition to labor saving and safety on the work site.
• Expand the lineup of electric cranes equipped with lithium-ion batteries introduced to the market in FY2020 to reduce theimpact on the environment
Initiatives for DX• Strengthen the sales proposal by automating customer needs data

One-of-a-kind Technical Capabilities to Meet Diversified Field Needs
The Machinery Business has contributed to mechanization, labor savings, and safety in the construction and civil engineering
industries for more than half a century, providing a range of high-quality products, from designing, manufacture, sales, leasing, andEstablish a structure for new business areas

Crab Crane MC305• Propose construction methods using DX to improve efficiency on the work site
• Maximize production efficiency by systematizing the management of manufacturing and shipping operations andoptimizing resource allocation.
Human capital strategy• Actively invest in monozukuri (manufacturing) to develop multi-skilled workers to equalize work and improve productivity
amid concerns of a declining workforce due to the falling birthrate and aging population.
• Build a structure that does not compromise on technology or quality by systematically training human resources to meet
progressive needs in the field, including collaboration with external companies and experts
Synergy through Group collaboration

manufacturing civil engineering equipment, dam equipment, water gates, bridges and special vehicles, with the aim of creating new• Develop special custom-made machinery to meet the business needs of each company in the Group.

value. In our main crane business, our detailed attention to safety and security has been recognized by users around the world.
Today, we have sales agents in various parts of the world, and we are responding to every kind of demand from the market.
Whenever there have been requirements for labor saving and safety in the field, we have met the expectations of society throughPromote DX/sharing

after-sales services for construction and industrial machinery from 1962. In addition to cranes, we have pushed forward with

our machines, using the proposal and development capabilities that we have accumulated over many years. Today, with the decline
to improving labor-saving on the construction site and productivity/safety by proposing efficient ICT construction machines andstrengthening construction method proposals utilizing DX.

Promote M&A

in the working-age population, industrial labor shortages are issues for all of society. In the machinery business , we will contribute• Leverage the domestic network of each company in the Group to strengthen our business areas.
In addition, we will develop new products that meet the needs in the field by expanding into new business areas.
Create a strong company• Promote work-life balance to increase employee motivation.
• Foster a corporate culture in which diverse human resources play a role by promoting diversity.

In addition to the engineering capabilities of our machinery business, by using closer Group cooperation than ever before, we will
establish a business model that will build a stable revenue base and achieve sustainable growth, unaffected by external factors.
Specifically, we will work proactively to invest in growth products and environment-related businesses, promoting innovation with

Risks

DX, investing proactively in human capital and using the Group's networks to expand our business areas.

• Decline in productivity caused by increased product lineup •Obsolete commercial power resulting from the rise in competitor manufacturers• Production delays caused by insufficient or delayed parts supply due to supply chain disruptions• Product cost increases resulting from higher raw materials costs •Compensation for damages caused by product defects

87

INFRONEER Holdings Inc.

88

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

FY2021 Initiatives and Performance Review

TOPICSIn FY2021, although economic activities stagnated temporarily because of the COVID-19 pandemic in Japan. However, economic
activities resumed, including holding the Tokyo Olympic and Paralympic Games, which had been postponed during the coronavirus
pandemic. Overseas, although the situation varied by country and region, there were signs of recovery from the downturn causedby the pandemic. However, the global shortage of raw materials and components, as well as the soaring price of materials havesignificantly affected production in the machinery business, making it a year in which we needed to be able to respond to change.
Meanwhile, through our transformation, we introduced activities to capture new challenges and opportunities in leaps andbounds to improve growth and profitability. In FY2021, the final year of MAEDA SEISAKUSHO's medium-term three-year businessplan, our slogan of “achieving growth” became “transform change into growth.” We worked proactively to use digital technologies,
participate in fields outside construction and civil engineering, rebuild the safety and health system, and reduce the impact on theenvironment.
In addition to these activities, we introduced activities aimed at sharing information with suppliers and improving the efficiency ofparts procurement. Sales of construction machinery remained strong, and sales of our original product, the spider crane, were
improved mainly through overseas exports. Furthermore, we worked to reduce our production costs. As a result, both net sales andoperating profit increased from the previous year.

Lithium-ion Battery Powered Machines that are
Carbon Neutral
Up to now, we have contributed to reducing ourenvironmental impact by providing various types ofmachines that comply with emissions regulations
around the world. Currently, we are committed todeveloping and expanding battery-powered cranes tofurther reduce our environmental impact. Machines
equipped with lithium-ion batteries are compact andachieve zero emissions, and have a performance far
superior to engine driven machines.

Results (Net Sales/Profit Margins)1
Construction machinery 2
Net sales

Gross profit margin_forecast(Billions of yen)

12.5

23.8

22.4

(%)

(Billions of yen) (Billions of yen)

30

14.0

25.0

18.0

17.3

17.2

23.8 13.1

22.4

21.9

18.2

Net sales

Gross profit margin_results
Gross profit margin_resultsGross profit margin_forecast
Gross profit margin_forecast

17.4
15

7.0

12.5

3.9

4.1

3.8

FY2020

FY2021

FY20221.9
00(Forecast)

0

18.2
17.3

18.0
20.3

(%)

(%)

(Billions of yen)

40

30

14.0

20

15

2.1

4.1

(%)

40

13.1

2.6

3.8
0

FY2020 FY2020FY2021 FY2021FY2022 FY2022(Forecast) (Forecast)

0

8.9
21.1

20.3

19.1

18.8

7.0

18.8
3.9

Gross profit margin_forecast

11.2

17.4
19.7

17.2

Gross profit

Gross profit margin_results

21.9

11.2
8.9
21.1
19.1

0

Production and steel structure machines3

Net sales Net sales
Gross profit Gross profit

Gross profit margin_results

25.0

Production andConstruction
steel structuremachinery
machines3 2Gross profit

0

1.9

2.1

FY2020

FY2021

19.7

20

Use in Art and Other Forms of Expression
2.6

FY20220(Forecast)

1. Within the machinery segment, numerical values for the main business of the construction machinery business, industrial and steel structure machinery and others.
2. The business focuses mainly on the sales, servicing, and leasing of Komatsu products.
3. Business focused on the design, manufacture and sale of cranes and others of our own products

Future Outlook
In promoting mechanization, we have introduced hybrid machines and machines with excellent energy-saving performancesuch as ICT machines to the market, to build a low-carbon society. In the future, we will expand our lineup of cranes equippedwith lithium-ion batteries that can achieve zero emissions, in light of the demand for environmentally friendly products, andthis will increase globally.
MAEDA AMERICA Inc., a subsidiary of MAEDA SEISAKUSHO, was established to increase our market share in North America,
which is the largest market for construction machinery, and in which we have been struggling until now. We will increase ourmarket share in North America by building a strong dealer network through market-based activities.
We also want to focus on forests that function in various multifaceted ways to prevent global warming by capturing CO2,
conserving water resources, preserving biodiversity and preventing soil and sand disasters. We will actively work to develop
technology so that we can strongly support the use of wood materials and use mechanization to develop rugged forestry sites.
Although the environment we find ourselves in continues to change at a faster rate than ever before, we are committed toworking for economic development, solving social issues and preserving the environment, and we will use the technical,
proposal, and service capabilities that we have developed so far to build a sustainable society through monozukuri(manufacturing). We are working to establish a business model that will achieve sustainable growth unaffected by external
factors.

89

A spider crane was used in a fashion show
held in Paris by Rick Owens, the global
fashion brand. The compact and flexible
nature of the crane can be exhibited not onlyat construction sites, but also at cultural sites
as an expression of art and fashion. You canview the show on INFRONEER’s social media.

Facebook

InstagramEmployees Views
Currently, I am responsible for developing a new spider crane model. With limitations on the chassis
weight, we are working to accommodate our customers' requirements to suspend heavier objects at
higher levels and farther away. In addition, we are making completely new innovations to thefunctions and structure of the crane. Because these innovations are without precedent, many things
that do not go as planned. Every day I have to use trial and error to move forward with my work.
I am involved in design work, which is often very difficult, but I love this environment because it
presents me with new challenges. Even if I fail, I am working in an environment where I can try
different things to investigate the causes and work out countermeasures. I have to think about whatneeds to improve to move the design forward. I enjoy working with my team members to create thenew product, and to motivate them in turn through anticipation of the satisfaction we will feel when
we finally ship the product to our customer.

Yuta Nakamura, Technical Headquarters (Joined MAEDA SEISAKUSHO in 2015)

INFRONEER Holdings Inc.

90

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Segment Introduction

Main Related Businesses (Others): FBS, JM, Fujimi Koken
Our other businesses cover from the retail business to the manufacture and sale of construction materials, building management
and real estate. Net sales were more than ¥37.4 billion and segment profits were over ¥1.8 billion.
Business overview

FBS Corporation(Billions of yen)

• Building management (building management and operation,equipment inspection and security, and others)• Construction (renovation, seismic reinforcement, and others)• Civil engineering (ground improvement, structural
reinforcement, and others)

30

Strengths

10• One-stop management for a wide range of applications fromdesign to construction and building management• Proposal-oriented company that improves the value of assets
with its ability to submit proposals that address both present
and future needs0

Businessoverview
Net sales
Operating profit margin(%)(Billions of yen)

23.0(Billions of yen)

5.0

4.6

Businessoverview
Net sales
Operating profit margin(%)(Billions of yen)

1530

21.4 Koken Co., Ltd.
Fujimi

21.0

10

5.0

4.6

FY2021

FY202250(Forecast)

20

(%)

Strengths

2.5

2.2

30

FY202219.8

50(Forecast)

Operating profit margin

2.5

2.2

(Billions of yen)3

• Differentiated from other companies by its proprietary
technologies (SEED, REED2, one-pass joints)
101• Nationwide business development by the Alliance Plant (SEED,
REED)
-0.5
• Stable and continuous supply of manufacturing services to0
othergeneral contractors
precast) -1
FY2020
FY2021 (construction
FY2022(Forecast)

Net sales

FY2021

FY202212

3-1(Forecast)

Operating profit margin

(%)

12

12

8.7
8

7.3

4.2
4

7.4

8

3.8

4

2.0

0

FY2020

FY2021

FY2022(%)(Billions of yen)

5

12

Net sales

Operating profit margin

0

(%)

12

(Forecast)

Review of the Previous Period and Future Outlook(Billions of yen)

5

1

FY2020Operating profit margin

In FY2021, the first periodof FBS 21-24,21.0our new medium-term management plan designed to transform the
8.7 company in a way that will improve the value
21.0
19.8
8 organization
3
8
7.4
7.3
of20our assets, the measures
restructuring theand focusing
our management resourceson specific areas. As a result,
2.5 we implemented included
2.2
we achieved both our net sales and operating profit targets.
4.2 plan, in addition to expanding our three existing businesses—construction,
In FY2022, which is the second period of the new medium-term management
3.8
10
4
1
4
civil engineering, and building management—we will work to improve our corporate value through initiatives
2.0 that will include expanding decarbonization-0.5
related proposals
in the area of the environmental, focusing on comprehensive management projects in the social area, and solving bottom-up issues-10
00
throughourinternal
governance.
FY2020
FY2021
FY2022
FY2020
FY2021
FY2022

(%)

21.0

21.0

Net sales(Forecast)

-0.5
0

5
• Manufacturing and sales of concrete secondary
products
including concrete segments, precast concrete building1
members and SEED form
21.0
21.0

19.8

Net sales

FY2021

4.6

10

5• A nationwide network system with franchises across all
regions of Japan00 • Use of IT to streamline the operations of local craftsmen
FY2020
FY2021
FY2022• Know-how accumulated through (Forecast)the maintenance andmanagement of 210,000 facilities

Operating profit margin

FY2020

5.0

30

20

(Billions of yen)

10

4.3

Review of the Previous Period and Future Outlook

(%)

15

21.4

21.0

15
• Building equipment maintenance and upkeep• Lifecycle management of building equipment
23.0• EV charger and small-scale
21.4battery maintenance21.0 solar/storage
autonomous
20 • Regional generation Comprehensive control work for10
bodies• BPO and outsourcing services

4.3
10 Strengths

Operating profit margin

20

30

JM Corporation

Net sales

Net sales

Operating profit margin

(%)

12

8.7 existing partnership with major private companies including SEVEN-ELEVEN JAPAN CO., LTD., Nissan Motor Co.,In FY2021, in addition to working for our
8 Idemitsu
8
7.3 Kosan Co., 7.4
Ltd.,Ltd., JAPAN POST Co., Ltd.,and Starbucks Coffee Japan, Limited, and others, the company began the comprehensive managementof local public facilities. In 2022, we are entering the comprehensive management business in Konosu City, Saitama Prefecture (118 facilities) and Izu City,
Shizuoka 4.2
Prefecture (913.8facilities). The number of electric vehicle (EV) charging facilities we installed exceeded 40,000 in total, and we are the top
4
constructor/providerof these installation in Japan4(related article: Go to the website and access TOPICS).
2.0
JM will continue to use its know-how in the maintenance and management know-how of private facilities and provide technological innovations and DX to
the people responsible for building maintenance in each region to address the aging of local buildings and facilities. We will also work with private
00
FY2020
FY2021
FY2022companies,
municipalities,
and citizens(Forecast)to provide both hard and soft technologies in the construction of regional platforms, and contribute to therevitalization of the local economy.

Review of the Previous Period and Future Outlook
In FY2021, the COVID-19 pandemic and soaring raw material prices did not significantly affect our performance. The company was unable to ship PC
products because of delays to the start of large-scale construction projects. Also, in the SEED and REED divisions, net sales dropped because of the decreasein the number of projects. However, the company's results showed an increase in sales and profits as production volumes increased and sales and profits
increased significantly thanks to an improvements in the productivity of large-scale segment projects under the segment division.
For the future, we are studying how to develop and use peripheral technologies with our own technologies and are exploring the development of new
businesses. We will actively work to introduce IT into each business, secure and train the human capital that will form the next generation of workers andreduce CO2 emissions.

(Forecast)

1. SEED form

TOPICS

Comprehensive public facility management in Konosu CityIn April 2022, the JM, FBS, and MAEDA CORPORATION consortium began the comprehensive
management of 118 public facilities owned by Saitama Prefecture's Konosu City. In this project,
we will unify business standards, improve the quality of maintenance and management, improvebusiness efficiency, and establish sustainable management and operation of the public facilities. In
doing this, we will prevent malfunctions by conducting inspection patrols, digitize work, introduce
facility-specific examination records, and setting up a management center. We will continue toshare data with Konosu City and contribute to reducing the work load. In FY2022, the consortium
will support the city's Digital Garden City Nation promotion grant project and build a foundation forleading-edge infrastructure management.
* Status of comprehensive management work within the Group: four projects are in operation; two projects have acquired priority negotiation rights and are being prepared for operation (at end of September 2022)

91

The SEED form is a precast form that significantly improves the durability and crack dispersion characteristics of structures by using highstrength mortar with a low water-cement ratio as the base material and mixing in vinylon fiber as a reinforcement material. This ensures thatthe buried form has adequate bending strength, and improves the durability of the concrete structure. The rear of the SEED form is given arough surface using a joint surface-treatment agent and high-pressure jet water cleaning, to ensure it bonds with the concrete. Use of the
SEED form can eliminate formwork removal work and concrete curing, shortening the construction period.

SEED form installation status

2. REED construction method
The REED method is a structural form and construction method for a steel-concrete composite structural pier that uses H-shaped steel withprotrusions and SEED forms. Because it involves repetition of a simplified process, it is possible to reduce the number of workers and labor
involved and speed up construction. The method gives excellent seismic resistance through the use of high-rigidity H-shaped steel. In
addition, the SEED form is set on the surface of the pier, which improves the aesthetic appearance.

REED construction status

INFRONEER Holdings Inc.

92

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Bases for Generating Synergies - ICI General Center Open Innovation Facilities that Solve Social Issues
In 2019, the ICI General Center (ICI) opened in Toride City, Ibaraki Prefecture as a base for corporate transformations on theoccasion of the 100th anniversary of the establishment of MAEDA CORPORATION. In addition to the functions of the Institute ofTechnical Research, our predecessor, we will promote business development that contributes to solving social issues through open
innovations. We are aiming further to accelerate and leap forward development related to integrated infrastructure services since
MAEDA ROAD and MAEDA SEISAKUSHO's technology research departments were joined.
https://www.ici-center.jp/

Phase 3 : Demonstration

The organization
desiredby INFRONEER

Solution• Permanent growthSocial• Stable and profitable constitution
implementation • Trusted by all stakeholders

Demonstration through the fields of construction sites
and infrastructure management projects (toll roads in
Aichi Prefectures, Aichi Sky Expo, Sendai International
Airport, ad others) and others.
Construction work site

BUSINESS

3• Solving social issues around theworld

Phase 2 : Verification

2

Infrastructure management business site

Verification with well-equipped equipment, space andhuman resources that support diverse and leading-edge
experiments and research

ICI LAB— Open Lab for Solving Social Issues Facing Infrastructures —[MAEDA CORPORATION and MAEDA SEISAKUSHO]
Accelerate Wood Utilization and Construction DX — WOODSTAR (Multi-axis Machining Tool) —WOODSTAR is a robotic arm-type wood processing machine developed in a joint venture of the Group
company. We began business in 2021, starting with a joint research project with the Hirasawa Lab at
Chiba University.

[MAEDA CORPORATION and Aichi Road Concession]
Demonstration Experiments Utilizing Infrastructure Facilities in Service— Aichi Accelerated Field —Together with Aichi Road Concessions, we are extracting issues related to the operation and maintenanceof infrastructures.
We are implementing technology demonstrations that use actual infrastructure facilities relating toissues extracted for the operation and maintenance of social infrastructures.
[FY2021: Results]• Reverse running vehicles and pedestrian intrusion prevention system using three-dimensional laser radar• Expansion of application bridge types and careful reviews of costs in application of UAV inspection of bridges

ICI CAMP— Connecting Local Memories to Make a Place for Sustainable Learning and Exchange —[MAEDA CORPORATION and Toride City, Ibaraki Prefecture]
Renovation of an Abandoned Primary School into a Training Facility

1
Actual business field

Phase 1: Creation and promotion
Matching needs and seeds

Discover issues

Communication with human resources co-creationand co-creation partners

Discover issues

Actual business needs
Exchange building

NEST building

Venture companies in Japan and overseas(technology seeds and business ideas)

We are renovating a part of the old Hakusan Nishi Elementary School that has been abandoned, into a
training facility, and we are taking on the challenge to make this abandoned school usable.
As an emergency evacuation facility for when a disaster strikes, we are cooperating with Toride Cityand implementing symbiosis with the local community.

[MAEDA CORPORATION and Venture Companies]
Conferences and Digging up Social Issues
The largest startup conference in Japan, "SVS*," was held at ICI Camp, hosted by Samurai Incubate Co.,
Ltd., a co-creation partner.
We have built a new network through workshops on the theme of water infrastructure and throughdiscussions with the participants.

Social issues
Regional issues
Future social issues

ICI LAB*ICI CAMPICI STUDIO

Note: The ICI Lab Exchange building has received multiple awards related to carbon neutrality and energy
conservation as a next-generation office that achieves ZEB and improvement of intellectual productivity.

*Samurai Vision Summit

ICI STUDIO— Fusing Old and New Technologies and Art to Attain a Base in a Living Area —Expectations for further leaps forward and acceleration thanks to the conversion to Holdings

Relocation of Historic Buildings — Residence of Jinkichi and W-ANNEX—

Employees Views (MAEDA ROAD)

Employees Views (MAEDA SEISAKUSHO)ICI and our Institute of Technical Research havebeen conducting technical exchanges throughfacility tours and the like since FY2019. Up to now,
we have made use of ICI's laboratory facilities andtheir technologies, and have made achievements inthe evaluation of thermal environmental risks inpaving work. Starting from this period, the Merger
Review Committee was launched in anticipation of
the relocation of our facilities to ICI. Our goal is tocreate valuable technologies by holding discussions
at the practitioner level on the study issues anddeepening our mutual ties.

I am responsible for the development of
mechanical equipment (hardware) for thecommercialization of WOODSTAR (multi-axis
machining tool). We had a frank exchange ofviews between the project members at thedevelopment meetings, and others. I have beenable to take advantage of my work experienceso far in practice, and I feel that my work isvery rewarding. I look forward to taking onchallenges in businesses into which we have
not yet ventured by becoming Holdings.

In April 2022, the former residence of Jinkichi Watanabe was relocated to the ICI General Center for the
purpose of preserving the historic buildings for future generations.
Parts that are corroding and cannot be repaired are 3D scanned. We cut out new parts using
WOODSTAR, and conducted our restoration. Furthermore, W-ANNEX has also been setup as a base foractivities that will lead to the promotion of culture and the arts.

Yasunari Shimizu, MAEDA ROAD CONSTRUCTION Co., Ltd.
Technical Research Market Strategy Information Office93

Wind and environment experiment facility
Winner of the Japan Society of Wind Engineers TechnicalDevelopment Award

Michiya Ito, MAEDA SEISAKUSHO CO., LTD.
Industrial Machinery Headquarters WS Promotion Division

Residence of Jinkichi

What is the former residence of Jinkichi Watanabe?
The former residence of Jinkichi Watanabe was built in the pre-war period of Japan's economic prosperity as the personal residence of Mr.
Jinkichi Watanabe, the 14th generation of the Watanabe family in Gifu who ran the banking business.
• It is one of the few authentic Tudor styles in Japan; an extremely sophisticated technique was used to decorate the home.
• The highest standards of experience and knowledge for Japanese residential construction at the time was employed in its construction.
• Its original appearance is almost completely preserved, including the characteristic decorations.
• There is a rich introductory literature and objective cultural value in this structure with relevant literature and furniture have been left behind

W-ANNEXINFRONEER Holdings Inc.

94

Chapter 5

IR Information
Highlights of our financial and non-financial information

Page 97
Page 99
Page 101
Page 103

Our Financial and Non-financial Highlights
11-Year Financial Summary
11-Year Non-financial Summary
Financial Statements

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Our Financial and Non-financial Highlights
Our Financial Highlights

Our Non-financial Highlights
Number of employees

Orders received

Net Sales

CO 2 Emissions (Scopes 1 and 2)(Billions of yen)(Billions of yen)(Thousand t-CO2)(People)

800

800

400

8,000

678.1
577.5

600

428.1

373.8

400

408.5

FY2017FY2018FY2019Operating Profit

400

200

4,000

200

100

2,000

0

FY2017492.1

FY2018(Billions of yen)(Billions of yen)

60

60

FY201935.9

FY2017FY2018FY2019FY20200

FY2021

Renewable Energy Rate

4,224

FY2017FY2018FY2019FY2020

FY2021

Female Employment Rate

Renewable energy rate (right axis)

Female employment rate

(%)

(MWh)

(%)

(%)

12

200,000

10

30

152,710

Holdings (non-consolidated)

8.7

152,082

8

6.1

20

4,133

25.7

40

23.1

7,149

10.4
9.3

37.5

34.0

0

FY2021All electrical energy usage

46.3
35.4

FY2020ROE (right axis)

11.2

6,929

487.9

Profit Attributable to Owners of Parent and ROE
Profit

40

309
6,000

467.7

FY2021

6,545

300

411.9

FY2020

313

600

200

0

682.9

24.0

20

23.3

26.7

100,000

15

0

0

15.7

FY2017FY2018

16.6

16.8

17.5

FY2019FY2020

FY2021

3.0%

4

14.3

5

15.2

0.4%
0

FY2017FY2018FY2019FY2020

FY2021Net Assets and Equity Ratio
Net assets

0

FY2017FY2018FY2019FY2020

FY20210

0

Dividend Payout Ratio

FY2017FY2018FY2019FY2020

FY2021

Note: Prior to FY2019, Green Electric Power Certificates were purchased at 600 MWh each year

Note: In FY2021, Holdings (non-consolidated) and the Group as a whole are recorded together

Contributed Amounts in Dividends for the Earth

Human Resource Training Investments and Training Time Per Person
Human Resource Training Investments

Equity ratio (right axis)(Billions of yen)

(%)

(%)

(Millions of yen)

(Millions of yen)

400

60

60

800

1,000

358.6

300

234.4
200

32.4

367.5

355.9

40

FY2018FY2019400

FY2021

833
701

60

500

40

289
20

FY2020

56

750

80

30.3
25.9

100

FY2017600

Hours/
Person

48.2

29.1
24.2

0

600

603

40

37.4

33.3

Impact of changes or postponement of face-to-facetraining caused by the coronavirus pandemic

823
42.2

252.6

Training time per person (right axis)

0

13.2

FY2017155200

FY2018

35.5

20

15.9

FY2019FY2020

FY20210

0

FY2017FY2018FY2019250

133

FY2020

FY2021

020

FY2017FY2018FY2019FY2020

FY20210Note: Human resource training investments: Total amount of training materials, outsourced instructor fees, systemcosts, and total statutory welfare expenses for salary and bonuses for the human resource development department
Note: Training time per person: The total number of training hours divided by the average number of all
employees during the period

97

INFRONEER Holdings Inc.

98

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

11-Year Financial Summary
INFRONEER(INF)

MAEDA (MK)MAEDA ROAD (MD)

MAEDA SEISAKUSHO (MS)

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2021

282.5

307.7

316.8

367.8

369.8

448.1

369.6

425.6

395.6

408.8

423.4

132.2

134.2

143.6

156.6

157

153.1

162.4

157.2

165

165.6

162.1

-

-

-

-

-

-

-

-

-

-

-

-

259

301.2

323.9

331.3

372.6

338.1

374.2

401.3

387.3

366.1

365.8

204.9

213.2

230.1

233

232.7

233.1

234.4

223.8

237.8

234.6

235.6

23.6

25.3

32.6

33.8

35

35.4

36.7

36.5

37

33.5

37.1

682.9

4.2

-8.7

5.3

8.2

15.6

17.5

27.9

29.8

28.6

29.7

27.3

14.5

16.7

20

23.7

28.8

26.6

23.4

17.1

19.6

20.7

11.7

0.4

0.6

1.4

1.5

1.4

1.8

1.9

1.7

1.9

1.4

1.8

37.5

2.9

-8

5.7

9.3

16.5

19.4

29.4

32.2

29.8

45.2

35.2

15.3

17.8

20.8

24.5

29.3

27

23.8

17.6

19.9

21.1

12.2

0.4

0.6

1.4

1.5

1.4

1.8

1.9

1.8

1.9

1.5

1.9

38

Profit Attributable to Owners of Parent

1.7

-8.6

5.5

7.3

12.9

19

19

20.4

21.4

36.2

28.5

7.6

10.1

12.6

13.4

17.5

17.9

9.2

11.5

18.8

16.8

9.6

0.3

0.6

0.9

1.1

0.9

1.3

1.3

0.9

1.3

1

1.2

26.7

Depreciation

2.7

2.3

2.2

2.4

3

2.6

2.6

3.7

5.1

4.7

5.4

7

7.3

7.2

7.6

7

7.2

7.5

8

8.4

8.5

8.8

1.5

1.6

1.7

1.7

2

2

2.1

2.1

1.9

1.8

1.8

31.6

Capital Investment Amount

1.6

2.6

2

5.7

1.7

3

7.9

13.5

11.5

7.5

7.1

8.4

8.5

10.2

8.2

9.9

15

11.6

10.1

8.2

11.2

11.8

1.7

2.6

2.8

2.4

2.1

1.8

1.9

2.3

2.2

1.9

2.4

21.7

EBITDA

6.8

-6.4

7.5

10.6

18.6

20.2

30.5

33.6

33.7

34.4

32.7

21.6

24

27.3

31.3

35.8

33.8

30.9

25.2

28

29.2

20.5

1.9

2.2

3.1

3.3

3.4

3.8

4

3.8

3.8

3.2

3.6

69.1

R&D Cost

1.5

1.5

1.1

1.4

1.7

1.8

2.1

3.6

5.2

4.3

4.2

0.4

0.4

0.5

0.4

0.4

0.5

0.4

0.5

0.7

0.9

1

0.1

0.2

0.5

0.4

0.3

0.3

0.4

0.4

0.3

0.3

0.4

5.7

Total Assets

317

341

351.2

363.3

359.4

384.3

411.3

455.7

519.6

555.4

482.4

195.2

199.6

215.6

227.8

247.1

258

287

290

264.1

222.9

218.9

20.9

22.3

25.3

26.2

27.4

28.9

30.7

31.4

29.4

31.2

30.7

926.4

Net Assets

93.3

90

100.1

118.8

125.4

151.2

173.6

190.1

187.7

233.3

245.3

132.9

141.8

150.2

164.7

173.7

194.4

202

207.7

206.9

163.6

164.5

4.5

5

5.8

7.5

7.9

9.6

11.2

11.5

12.1

14

14.8

355.9

Equity

93.3

90

100.1

118.8

125.4

151.2

173.6

190.1

187.7

233.3

245.3

132.8

141.6

149.8

164.3

172.6

193.3

200.8

206.2

205.3

162.2

163.1

4.5

5

5.8

7.5

7.9

9.6

11.2

11.5

12.1

14

14.8

346.9

Interest-bearing Debt

90.6

84.7

8.3

73.6

84.9

60

57

69.9

149.2

127

73.2

0

0

0

0

0

0

0

0

0

0

0

6.3

5.8

5.9

6.2

7.1

7.1

6.9

6.5

5.8

5.6

2.7

193.5

Retained Earnings

31.7

21.8

2.6

33.5

44.7

61.7

78

95.2

109

141.3

162.1

94.4

102.9

113.3

124.2

138.2

151.4

155.8

162.6

170.9

125.8

119.7

0.6

1.1

2

3.4

4.2

5.4

6.6

7.4

8.5

9.3

10.3

198.3

Cash Flows from Operating Activities

18.3

9.7

-1.3

18.3

-9.5

56

33.8

-28.9

22.7

39.4

-34.7

22.1

19

16.2

22.8

27.1

28.6

28.7

17.8

2.6

25.6

10.3

2.5

2.8

2.3

2.9

1.3

2.6

3.6

3.7

2.5

3.4

2.1

-16.3

Cash Flows from Investing Activities

-3.4

-0.7

0.4

-4.7

-0.6

-7.6

-10.3

-16.8

-106.5

-5

-5.9

-14.2

-15.8

-16.5

-14.1

-18

-21.7

-11.4

-5

21.6

0.2

-24.7

-0.7

-1.8

-2.1

-1.9

-1.8

-1

-1.3

-1.9

-1.8

-2.4

-2

-22.5

Cash Flows from Financing Activities

-9.5

-6.4

-2.3

-10.4

9.4

-16

-4.4

10

73.8

-25.7

33.3

-1.2

-1.8

-2.2

-2.6

-4

-4.8

-4.8

-4.3

-16

-62.2

-5.9

-0.8

-0.9

-0.2

-0.3

0.2

-0.7

-0.9

-1

-1.4

-0.7

-3.3

15.3

Free Cash Flows

14.9

9

-13.1

13.7

-10.1

48.4

23.5

-45.7

-83.8

34.3

-40.7

7.9

3.2

-0.4

8.8

9.1

6.8

17.3

12.8

24.2

25.8

-14.4

1.8

1

0.2

1.1

-0.5

1.6

2.3

1.9

0.7

1

0.2

6.2

Cash and Cash Equivalents at End of Period

28.7

31.9

16.8

20.4

19.4

51.8

70.7

35

24.9

33.9

26.6

39

40.4

37.9

44.1

49.1

51

63.6

72.2

80.7

44.3

24

2

2.1

2.2

3

2.8

3.7

5.1

6

5.2

5.6

2.5

76

Total Number of Shares Issued (in Thousands)

185,214

185,214

185,214

185,214

185,214

197,956

197,956

197,956

194,608

194,608

194,448

94,15994,15994,15994,15994,15994,15994,15994,15989,15989,15982,41916,100

16,100

16,100

16,100

16,100

16,100

16,100

16,100

16,100

16,10015,822

291,071

Average Number of Shares During the Period (In Thousands)

185,098

185,096

185,093

185,088

185,085

188,381

197,820

197,707

193,540

193,499

194,079

86,48286,42886,24586,23586,25886,30686,29986,334

84,41682,42082,41916,065

16,064

16,056

16,04816,042

16,041

16,03916,062

15,96815,891

15,845

281,729

Ending Number of Shares (In Thousands)

185,098

185,095

185,090

185,087

185,084

197,823

197,819

196,324

193,254

193,713

194,448

86,46886,25986,22986,24886,31086,30286,29586,42182,42082,41982,41916,064

16,063

16,052

16,045

16,041

16,04016,03916,073

15,875

15,873

15,822

264,376

7

7

7

9

11

14

16

20

20

38

0

18

25

30

40

55

55

55

70

750

70

0

0

6

7

7

7

7

9

10

10

10

0

40

Dividend Payout Ratio (%)

77.9

-

23.6

22.9

15.8

13.9

16.6

19.4

18.1

20.3

0.0

20.5

21.4

20.6

25.7

27.2

26.5

51.6

52.6

336.3

34.4

0.0

0.0

17.4

12.4

9.8

12.9

8.7

10.8

17.1

12.5

15.9

0.0

42.2

EPS (Earnings Per Share)

8.99

46.53

29.64

39.33

69.60

100.9996.23

103.31110.36187.33146.91

87.92

116.71145.71155.86202.46207.67106.62133.00223.02203.23116.47

17.37

34.55

56.43

71.41

54.29

80.92

83.42

58.65

79.97

62.80

75.01

94.73

504.00486.22540.90641.91

677.29764.24877.66968.15971.52

1,204.24

1,261.60

1,535.27

1,641.75

1,737.80

1,905.13

1,999.39

2,239.97

2,326.81

2,386.55

2,490.89

1,967.73

1,979.32

278.75313.14359.45465.19494.23600.76695.37714.88764.04880.30934.81

1,312.19

ROIC (%)

1.3

3.0

1.8

2.8

5.2

5.8

8.7

8.4

6.6

5.9

5.6

6.8

7.5

8.5

9.7

11.4

10.0

8.2

5.8

6.6

7.8

4.9

2.4

3.7

7.5

7.1

6.3

7.3

7.2

6.5

7.2

5.0

7.0

4.7

ROE (%)

1.8

9.4

5.8

6.7

10.6

13.8

11.7

11.2

11.3

17.2

11.9

5.9

7.4

8.6

8.6

10.4

9.8

4.7

5.6

9.1

9.1

5.9

6.2

11.7

16.8

17.3

11.3

14.8

12.9

8.3

10.8

7.6

8.3

15.0

ROA (%)

0.5

2.6

1.6

2.0

3.6

5.1

4.8

4.7

4.4

6.7

5.5

8.0

9.0

10.0

11.0

12.3

10.7

8.7

6.1

7.2

8.7

5.5

1.3

2.6

3.8

4.4

3.3

4.6

4.5

3.0

4.2

3.3

3.8

5.8

D/E Ratio (Times)

0.97

0.94

0.84

0.62

0.68

0.40

0.33

0.37

0.79

0.54

0.30

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.41

1.16

1.03

0.84

0.90

0.73

0.62

0.56

0.48

0.40

0.18

0.56

Operating Profit to Net Sales (%)

1.6

2.9

1.6

2.5

4.2

5.2

7.4

7.4

7.4

8.1

7.5%

7.1

7.8

8.7

10.2

12.4

11.4

10.0

7.7

8.2

8.8

5.0

1.8

2.6

4.3

4.5

4.0

5.0

5.1

4.6

5.0

4.2

4.8

5.5

Equity Ratio (%)

29.4

26.4

28.5

32.7

34.9

39.3

42.2

41.7

36.1

42.0

50.9

68.0

70.9

69.5

72.1

69.8

74.9

70.0

71.1

77.7

72.7

74.5

21.4

22.6

22.8

28.5

28.9

33.3

36.3

36.6

41.2

44.9

48.1

37.4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

2.91

3.01

3.07

4.49

3.72

4.49

5.44

4.81

5.26

3.34

6.28

-

Operating Results (Billions of Yen)
Orders received
Net Sales
Operating Profit
Ordinary Profit

Financial Condition (Billions of Yen)

Cash Flows (Billions of Yen)

Stock Information

Dividend (Yen)BPS (Book Value Per Share)

Management Index

Overseas Sales Ratio (%) *MS Only
MK:MAEDA; MD:MAEDA ROAD; MS:MAEDA SEISAKUSHO99

INFRONEER Holdings Inc.

100

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

11-Year Non-financial Summary
INFRONEER(INF)

MAEDA (MK)
2011

2012

2013

2014

2015

2016

MAEDA ROAD (MD)

2017

2018

2019

MAEDA SEISAKUSHO (MS)

2020

2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2021

Environment
CO2 Emissions: Scopes 1 (t-CO2)1

-

-

-

-

-

-

-

-

-

3,439

3,256

254,969

267,393

285,049

268,396

246,329

246,462

243,880

225,575

228,793

232,618

232,378

1,388

1,324

1,256

1,167

1,162

1,050

1,029

1,035

1,056

1,159

1,193

236,827

CO2 Emissions: Scope 2
Market Standards (t-CO2)

-

-

-

-

-

-

-

-

-

20,282

17,36541,08351,32257,44456,83068,20160,59264,05457,922

52,88854,63453,664

1,428

1,485

1,583

1,552

1,484

1,501

1,478

1,444

1,458

1,428

1,400

72,429CO2 Emissions: Scope 2
Location Criteria (t-CO2)

-

-

-

-

-

-

-

-

-

19,952

17,791

-

-

-

-

-

-

-

-

-

50,39750,669

-

-

-

-

-

-

-

-

-

1,491

1,599

70,059CO2 Emissions: Scope 3 (t-CO2)1

-

-

-

-

-

-

-

-

-

4,401,065

4,449,403

-

-

-

-

-

-

-

-

-

166,813300,867

-

-

-

-

-

-

-

-

-

175,796

184,396

4,934,666

Energy: Total Energy Consumption (Mwh)2

57,78335,211

51,73244,076

62,07540,165

38,13638,28732,581

33,97933,0091,122,053

1,167,537

1,193,873

1,131,037

1,096,318

885,489

1,092,581

1,006,652

1,010,400

1,025,265

1,106,589

-

-

9,776

8,805

8,693

8,649

8,101

8,250

8,769

7,639

8,295

1,147,892

Energy: Power Consumption (Mwh)273,195

218,263

312,547

287,539

343,166

264,294

262,506

338,875

331,291

236,688

287,636

115,377

119,809

122,896

122,959

122,554

122,302125,359

117,613

114,590

115,377

117,019

-

-

3,914

3,757

3,635

3,695

3,531

3,607

3,610

3,115

3,694

408,349

Waste: Total Emissions (t)626,079

512,126

614,364

566,392

586,118

560,127

593,102539,370

579,133

388,124

532,883

-

-

-

-

-

-

-

-

367,599406,653

507,590

-

-

77

88

104

115

145

168

188

201

221

1,040,694

Waste: Final Disposal Amount (t)3

34,000*45,000*31,000*19,000*30,000*26,000*20,000*15,000*20,768

17,117

31,973

-

-

-

-

-

-

-

-

12,165

12,215

17,356

-

-

-

-

-

-

-

-

-

-

-

49,329

29

40

46

52

90

200

603

289

155

133

600

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

600

Number of Employees (People)

2,504

2,588

2,683

2,811

2,956

3,008

3,127

3,275

3,488

3,640

3,684

2,120

2,140

2,201

2,246

2,247

2,223

2,219

2,231

2,215

2,196

2,233

545

539

533

556

578

590

591

588

589

596

592

6,509

Female Employment Rate (%)

9.9

10.2

10.6

11.4

11.8

12.1

12.7

13.7

15.0

15.7

16.7

18.0

19.0

19.6

20.0

20.2

19.9

20.1

19.9

20.6

20.0

20.1

10.8

10.6

10.3

10.8

10.7

10.5

10.8

11.4

11.2

11.7

12.3

17.5

Annual Paid Leave Rate (%)

16.4

17.8

16.9

20.2

24.1

36.9

42.6

46.0

56.6

56.1

60.5

30.9

31.8

29.8

31.0

32.1

35.2

38.3

38.2

48.3

55.4

57.8

39.7

48.8

40.6

51.8

52.6

57.8

69.7

67.7

72.0

70.0

70.0

Number of Bases (Locations)

54

61

65

59

60

62

62

62

61

58

57

232

231

231

232

232

235

234

232

229

229

226

33

33

33

27

27

28

28

26

25

25

29

292

485

478

473

475

507

522

524

525

533

545

561

127

129

138

149

151

154

154

156

156

155

155

-

-

-

-

-

-

-

-

-

-

-

-

1.13

1.28

1.38

0.97

0.59

0.75

0.57

0.44

0.9

0.8

0.51

-

-

-

-

1.51
4.46

2.10
3.31

2.55
2.19

1.50
3.56

1.77
1.06

0.87
1.41

1.58
4.13

2.91

1

1

1.05

1.01

0

0.9

0

0.87

4.21

0

0.51

Internal Directors (People)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4

Outside Directors (People)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5

Board of Directors Attendance Rate (%)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

99

Board of Auditors Attendance Rate (%)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100

Contributed Amounts in Dividends for the Earth(Millions of Yen)

Society

Number of Cooperating Companies (Companies)*MK and MD only

Frequency Rate
*MD only Upper section:Construction/Lower section: ProductGovernance

1 MAEDA has changed the categories of Scope 1 and 3 in 2020. For numerical values from before 2019, view the MAEDA CORPORATION website.
2 The numerical values from before FY2020 for MAEDA ROAD are calculated using estimated values based on FY2021 results
3 Numerical values for Maeda before 2018 are estimates only.

101

MAEDA ROAD has changed the aggregate range of Scope 3 since 2021.

Note: Numerical values before establishing INFRONEER Holdings in October, 2021 are listed separately for each business company.

INFRONEER Holdings Inc.

102

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Financial Statements
Unit: Millions of yen

Consolidated Balance Sheet

Consolidated Statement of Income

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed construction contracts and other
Securities
Real estate for sale
Merchandise and finished goods
Costs on construction contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures
Land
Leased assets
Construction in progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Right to operate public facilities
Assets related to replacement investment to operate public facilities
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Distressed receivables
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

78,035
310,801
30
1,987
1,573
13,6983,444
43,149-117452,602

107,476
171,647
83,5991,334
2,550-203,029
163,578
109,721
24,122
19,891
14,988
168,724
120,123221
354
840
14,907
5,418-402
141,464473,76762
926,432

Liabilities
Current liabilities
Electronically recorded obligations - operating
Account payable for works in progress and other
Short-term borrowings
Current portion of non-recourse loans
Lease liabilities
Accounts payable - other
Income taxes payable
Advances received on construction contracts in progress
Provision for repairs
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards
Provision for warranties for completed construction
Provision for loss on construction contracts
Liabilities related to right to operate public facilities
Liabilities related to replacement investment to operate public facilities
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Non-recourse loans
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Liabilities related to right to operate public facilities
Liabilities related to replacement investment to operate public facilities
Other
Total non-current liabilities
Total liabilities

Unit: Millions of yen

6,933
110,997
84,492
1,194
236
9,614
10,89634,862
181
8,080
406
379
1,083
836
4,555
1,016
23,468299,236
45,00052,851
9,947
451
14,305
16,767
103,843
24,5883,573
271,330
570,566

Fiscal Year Ended March 31, 2022

Net sales
Net sales of completed construction contracts
Sales in other businesses
Total net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit - other businessTotal gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated Statement of Comprehensive Income
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

390,678
292,234
682,912
338,718
252,583
591,30251,95939,651
91,61054,12037,489
221
2,253
543
652
407
4,078
2,571
960
3,531
38,036
331
7,808
320
8,460
529
686
494
261
1,972
44,524
14,64995
14,74429,7793,089
26,689Fiscal Year Ended March 31, 2022
29,779-11,080
46
-71
1,322
42
-9,73920,03917,0293,010

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

103

20,000134,117
198,273-24,342
328,048
18,2753-95
680
18,863
8,953
355,865
926,432

INFRONEER Holdings Inc.

104

Final Chapter

Sources of Value Creation
The passions and talents of INFRONEER believers

Page 107
Page 109
Page 110Page 111

Company Overview and Share-related Information
Post-Editing Notes and Glossary
INFRONEER Spirit
INFRONEER Believers

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

MAEDA SEISAKUSHOINFRONEER Holdings

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

Company Overview and Share-related Information
Company Overview (As of March 31, 2022)

Share-related Information

Trade Name

INFRONEER Holdings Inc.

Headquarters

2-10-2 Fujimi, Chiyoda-ku, Tokyo

Established

October 1, 2021

Business Category

Provision of all sorts of infrastructure services from planning and proposal to design, construction,and operation & maintenance of infrastructures, as well as management and control of the Groupand subsidiaries operating the construction business (civil engineering and architecture), paving andmanufacturing & sales of construction machinery, and all business incidental or related thereto

https://www.infroneer.com/en/

MAEDA

MAEDA ROAD

150

¥20 billion

Net Sales (Fiscal Year Ended March 31, 2022)¥682.9 billion

Number of Employees

7,149

Accounting Period (Business Year)

Every year from April 1 to March 31 of the following year

Listed Stock Exchange

Prime Market, Tokyo Stock Exchange (Stock Code: 5076)

Ordinary General Meeting of Shareholders

Held in June of every year

Administrator of the Shareholder Registry

Mizuho Trust & Banking Co., Ltd. 1-3-3 Marunouchi, Chiyoda-Ku, Tokyo

Number of Shares Per Unit

TOPI

(index)Paid-in Capital(As of the Issue Date of the Integrated Report)

S h a r e P r i c e T r a n s i t i o n s (As of March 31, 2022)

Established INFRONEER Holdings on October 1, 2021

125

100

75

50
Jan. 2021

100 sharesFeb. 2021

Mar. 2021

Apr. 2021

May. 2021 June. 2021 July. 2021

Aug. 2021

Sep. 2021

Oct. 2021

Nov. 2021

Dec. 2021

Jan. 2022

Feb. 2022

Mar. 2022

Apr. 2022

Note: From January 2021 to September 2021, the index is posted with December 30, 2020 set to 100. After October 2021, the index is posted with September 28, 2021 set to 100.

Dividend Per Share and Dividend Payout Ratio (Fiscal Year Ended March 31, 2022)

Group Company List (As of March 31, 2022)
MAEDA CORPORATION

2-10-2 Fujimi, Chiyoda-ku, Tokyo

https://www.maeda.co.jp/english.html

MAEDA ROAD CONSTRUCTION Co., Ltd.

1-11-3 Osaki, Shinagawa-ku, Tokyo

https://ssl.maedaroad.co.jp/en/

MAEDA SEISAKUSHO CO., LTD.

1095 Shinonoionbegawa, Nagano-shi, Nagano

https://www.maesei.co.jp/global/

Aichi Road Concession Co., Ltd.

3-100 Hikozu-cho, Handa-shi, Aichi

Japan Management

Nibancho 3, Chiyoda-ku, Tokyo

Fujimi Koken Co., Ltd.

1576-1 Tsukinowa, Namegawa-machi, Hiki-gun, Saitama

FBS Corporation

3-1-11 Nihonbashi Kayaba-cho, Chuo-Ku, Tokyo

75 other companies

UN Global Compact
We support the 10 principles related to humanrights, labor, environment and anti-corruption,
and will continue our efforts to achieve asustainable society.

40

Shareholder Name

Dividend Payout Ratio (%)

42.2

The Master Trust Bank of Japan, Ltd. (Trust Account)

42,037

15.34

Hikarigaoka Corporation

26,274

9.59

Stock Information (As of March 31, 2022)

Custody Bank of Japan, Ltd. (Trust Account)

12,583

4.59

Total Number of Shares Authorized
1,200,000,000 shares
Total Number of Shares Issued
291,070,502 shares
Number of Shareholders
20,507

Sumitomo Realty & Development Co., Ltd.

8,695

3.17

Mizuho Bank, Ltd.

5,505

2.01

STATE STREET BANK AND TRUST COMPANY 505001

5,368

1.96

Custody Bank of Japan, Ltd. (Trust E Account)

4,878

1.78

Sumitomo Mitsui Banking Corporation

4,610

1.68

MAEDA ROAD Employee Shareholding Association

4,377

1.60

MAEDA CORPORATION Employee Shareholding
Association

3,529

1.29

Status by Owner

TCFD(Task Force on Climate-related
Financial Disclosures)

RE100

Recognizing climate change as one of our
key management issues, we will continue ourefforts to achieve carbon neutrality.

We aim to procure 100% of the electricity weuse in our business activities from renewableenergy sources.

Others20,549,215 shares
43 shareholders

Individuals
49,417,127 shares
19,768 shareholders

7.06%
Foreigners
57,905,653 shares
274 shareholders

1 The shareholding ratio is calculated by deducting treasury shares (16,992,687 shares).
2 The Company holds 16,992,687 treasury shares, but is excluded from the above list of major shareholders.

16.98%IR Activities

19.89%
30.28%

Domestic
25.79%
corporations
75,073,672 shares
380 shareholders

107

Number of Shares Shareholding
Held (In Thousands) Ratio (%)

Dividend (Yen)

Note: As of the date of submission of this integrated report, the total number of shares issued was
274,845,024 due to the cancellation of 16,225,478 treasury shares on May 23, 2022.

Initiatives Valued by the INFRONEER Group

Major Shareholders (Top 10) 1

Financial institutions
88,124,835 shares
42 shareholders• Quarterly briefing for analysts (president in attendance)• Individual IR and small meetings
Held 114 times, 153 companies in total, 176 participants• Kibe-log distribution (president's blog)
https://www.infroneer.com/en/company/topblog.html

INFRONEER Holdings Inc.

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Introduction
Issue Awareness & Vision

Post-Editing Notes and Glossary
On Completing Our First Integrated Report

Chapter 1
A Passion for Management

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

INFRONEER Spirit
Corporate

In the winter, three months after we became INFRONEER Holdings, we decided to prepare this integrated report. It certainly was a task to produce anintegrated report.
In order to align our vectors, everyone searched for common use of language and a common philosophy. The social challenges we are taking on, theinfrastructure crises, may not be recognized in the first place. Then the significance our existence and creative value will never be recognized.
Nonetheless, our business is absolutely necessary and cannot be realized without the empathy of various stakeholders such as local governments,
companies, regions, and society.
Together, challenge the status quo for the future of our infrastructure
We began to see a large common concept. In parallel to this integrated report, the development of a code of conduct was also in progress. "A world ofboundless infrastructure services" is not self-righteous. It is based on "sampo yoshi (good for the seller, the buyer, and society)" as in our previous
projects. Also, there are things that should be changed and things to carry on like our "technical capabilities," "honesty," and "hard work." After a heateddiscussion that would beat the intense heat, INFRONEER^ (INFRONEER caret) was formulated as a signpost common to the INFRONEER believers tochange the ideas of “other companies and other people” to “our company and ourselves” and to lead to action changes.
Our generation in which we were raised in a safe and secure Japanese society, is now seeing our sense of safety and security begin to feel unstable.
As social situations and lifestyles change dramatically, we are happy to have the opportunity to share the sense of crisis and anxiety, and to think deeply
about the need for infrastructure services, and the significance of our initiatives.
We would like to express our heartfelt gratitude to all our collaborators, stakeholders and vanguards. We sincerely hope that this integrated report willbe the first step in our two-way communication with stakeholders with whom we are challenging the status quo for the future of our infrastructure toachieve the world for which we are aiming. We look forward to your encouragement moving forward. September 2022: Jumping in a clear autumn day

Chapter 2
Our Vision for the Future

Identity — Message Embedded in the Logo
Developing the future of infrastructures; innovating theinfrastructure services. This is a symbol of INFRONEER, taking
on the challenges of established concepts and creating
innovation.
The light green that indicates innovation to challenge establishedconcepts expresses acceleration. The deep blue which is gentle
and deep expresses sustainability, a sustainable society that isharmonious without being excessively deficient. Challenge andsustainability, innovation and stability. Or this expresses

INFRONEER ARROW

coexistence of the two conflicting logics to attain optimal living.
The symbiosis of two conflicting colors is a symbol of INFRONEER's
will to challenge established concepts and to create new value.

INFRONEER^ (INFRONEER Caret)
INFRONEER^ (INFRONEER Caret) is a source of new value creation and a path to care for, throughthe power (Caret) of the diverse strengths of INFRONEER believers.
As a pioneer in challenging the established concept of infrastructures toward achieving VMV in INFRONEER, we, the INFRONEER believers,
will always show respect and pride, have a positive attitude, and will not forget the perspective of the region and society and continue totake on challenges. We will expand the circle of the integrated infrastructure service business and INFRONEER believers while enjoying
ourselves, in order to attain a world where there's no limit to what can be asked from and what can be delivered by infrastructure services.

Glossary
The definitions of the key terms used in this integrated report and the INFRONEER Medium- to Long-term Vision are shown below.
Term

Definitions in Management Plan

Availability payment method

Of the PFI contracts, and the like (including comprehensive private outsourcing contracts, and others) that the administrator of a public
facility, or the like (Article 2, Paragraph 3 of the PFI Act ) mainly implements for infrastructure that does not generate usage fees, amethod that sets indices that correspond to the function and sustainability of the infrastructure, and some or all of the amount, or the
like to be paid when entrusted to a private business operator is determined according to the status of the achievement of the indices.

Infrastructure

Constructed structures, such as schools, medical facilities, prisons, and stadiums and the like, and civil structures, such as roads, waterand sewers, airports, ports, and renewable energy facilities and the like; indicates tangible (hard) facilities of all social infrastructures.
Note: An intangible (soft) infrastructure other than the above is indicated separately as XX infrastructure. (e.g., "information infrastructure")

109

Infrastructure service

The maintenance and operation of the above infrastructure and services provided directly and indirectly through the infrastructure;indicates "soft" as opposed to "infrastructure" that indicates a tangible (hard) facility.

A world of boundless infrastructure services

Providing services beyond the established mechanisms, regulations and rules of the infrastructure industry and market. A statemaking it possible for the beneficiaries to make "optimal choices."

Engineering capabilities

A construction technology capability that demonstrates the strengths of each business company of INFRONEER in the contracting
business. This includes not only technical capabilities at the construction stage, but also sales capabilities, design and proposal
capabilities, and technical development capabilities and others.

Concession

A PFI project in which a private business operator acquires the right to operate a public facility or the like (the right to operate a public
facility, or the like owned by the public and to receive usage fees of the facility as its own income) based on the PFI Act (Act on
Promotion of Private Finance Initiative). This enables private business operators to operate and maintain public facilities and the like ina stable manner over the long term, making it easier to demonstrate private ingenuity.

PPP/PFI

PPP (Public Private Partnership): A partnership between the public administration and the private sector in the construction,
maintenance, and operation of public facilities to achieve efficient use of financial funds and administrative efficiency by utilizing theingenuity and ingenuity of the private sector. Based on the PFI (Private Finance Initiative) Act, utilize private funding, management
capabilities, and technical capabilities for the construction, time, and operation of public facilities, and the like.

Contribution amount to consolidated
profits

Contributing amount to consolidated profits of infrastructure management business set by INFRONEER. Numerical values that combine“construction work (EPC) profit generated by the infrastructure management business” and “consolidated profits from SPCs involved
in infrastructure operation, gains on sales, and revenue from M&A, etc.”

INFRONEER^ (INFRONEER Caret)
PIONEERIt is okay to make mistakes. Taking initiatives into uncharted territory.
RESPECT

It is okay to meet deadends. Building trust through.
PRIDE

It is okay to be proud. Let everyone witness your skills and knowledge.
POSITIVE

There is no such thing as a worthless experience. Whatever happens, everything will be for our future.
FAIR

It is not just for us. Judging from the regional and social perspective.

INFRONEER Holdings Inc.

110

Introduction
Issue Awareness & Vision

Chapter 1
A Passion for Management

Chapter 2
Our Vision for the Future

Chapter 3
INFRONEER's Business Plan

Chapter 4
Initiatives for Safety, Security, and Reliability

Chapter 5
IR Information

Final Chapter
Sources of Value Creation

INFRONEER Believers

I feel that our free- thinking business withIn the future, I would like to consider
its free ideas will expand my career
measures that will have a synergistic
options as an employee.
CSR and Environment Dept. (Management)

effect on welfare.
General Affairs Dept. (Management)

IT & DX Promotion Office (Civil Engineering)

I believe that our efforts will bloom all over the world.
Let's change the future together!
CSR and Environment Dept. (Construction)

As an INFRONEER believer, I would like to create new social value for
MAEDA × MAEDA ROAD × MAEDA SEISAKUSHOI feel the strength of bringing together diverse forces every day.

Finance Strategy Dept. (Management)

President Strategy Office (Civil Engineering)Move forward as a Group without fear

Finance Strategy Dept. (Economics)

didn’t know that there was a company in Japan that had such a dream!

President Strategy Office (Law)

I think that our philosophy and attitudes go beyond areas that were unnoticed
by business companies alone and will continue to be stimulating.

We want to become an enviable company where people will say theyof failure or running into a dead end!

One year since converting three business companies into INFRONEER Holdings.We will offer the thoughts of INFRONEER employees
believers who are taking the lead to attain bring VMV in to INFRONEER, and who may at times have different opinionshit a dead ends, butwill continue to take on challenges together, build mutual trust, and grow.

See page110 for INFRONEER Caret.

When I talk to people outsideof the Company, I understandthe high expectations they
have for our company.
I want to live up to their
expectations.

Corporate Audit Dept. (Management)

future.

I would like to pursue the best

more evolve mored in thefrom now on, regardless of existing

For that reason, we will be

General Affairs Dept. (Financial Accounting)fusion of cultures.

conventions or practices.

Experiencing the clash andCorporate Strategy Dept. (Civil Engineering)

We are Infroneer!
I want to continue to increase the “We.”Corporate Planning Office (Business Law)

111

I want to work to solve social issues!
And I personally want to grow!
IT & DX Promotion Office (Management Engineering)

I would like to generate large synergy by

It doesn't matter what company

multiplying each strength rather than

you work for. I don't care who's thethrough simple addition.

boss. We are all colleagues working
together.
Corporate Strategy Dept. (Construction)

Every day, little by little, I feel that theCompany is taking steps towardbuilding a rich infrastructure society.
Legal & Compliance Dept. (Law)

Integrated Infrastructure Services Strategy Office (Civil Engineering)Days full of variety.
I will continue to challenge boldly with asmile!
CSR and Environment Dept. (Home Economics)

Together with cooperating companies,
create the future of monozukuri andsocial development.
Corporate Planning Office (Law)

INFRONEER Holdings Inc.

112

2-10-2, Fujimi, Chiyoda-ku, Tokyo 102-0071 Japan