INFRONEER Holdings

FY2024 1st Quarter Financial Presentation

CEO Presentation Material
August 9, 2024

We are capturing market changes and responding strategicallyOur understanding and responses to the market environment, order environment, andmaterial prices, etc.
Segments

Marketcondition

OurCondition

PointsBuildingConstruction• Although capital investment is strong, there is a challenge in securingsubcontractors.
• By implementing a strategic order acquisition plan, we expect to achieve bothorder volume and the profit margin of orders.

CivilEngineering• In addition to orders from the Ministry of Defense and NEXCO, there is a robust
demand for renewable energy projects, particularly related to Japan WindDevelopment.
• In addition to the above, we have changed our sales and construction structure
to respond to projects related to renewable energy (Japan Wind Development)
and continue to secure profitable orders.

InfrastructureManagement• Demand for green power is on the rise, enhancing environmental value.
PPP(Public Private Partnership) are increasingly materializing in sectors such as
Arena and Water-PPP.
• Consistent results are being achieved through proactive proposals from theupstream and strategic partnerships.

Road CivilEngineering• The reorganization of our sales structure is smoothly leading to successful orderacquisition.
• A shift in the sales structure is leading to successful order acquisition.

Machinery• Domestic and international markets are moving steadily.
• We aim to increase value with high-value-added products such as ICT
construction equipment and electric (EV) machinery.

2

Financial Summary
CompanySegments

INFRONEER Holdings

Maeda Corp.

Japan WindDevelopment

Financial Highlights• FY24 1Q results were in line with plan (special factors in the civil engineering segment in the previous
fiscal year and higher general and administrative expenses), although revenue increased, and incomedecreased YoY.
• Each segment is performing well, and the full-year plan is expected to be achieved

Building
Construction• In 1Q, sales and income increased YoY• Orders are progressing smoothly, with a high profit margin secured at the time of order receipt, and theoutstanding construction order amount is expected to reach a record high.

CivilEngineering• 1Q results showed a YoY decrease in sales and profit. Progress was as usual, except for special factors related todesign changes in the previous year.
• Orders are generally favorable, and the amount of work in hand at the end of the fiscal year is expected to be thehighest in the last three years.

InfrastructureManagement• Won 3 concession projects (Arena) in 1Q.
• Continue to focus on sports entertainment and water business concessions• Focusing on project development to enhance future profitability.

MAEDA
ROAD

Road CivilEngineering• 1Q results showed an increase in revenue and profit compared to the same period last year, achieving the highest
revenue and profit in the past three years.
• Orders and sales in both the construction and manufacturing businesses are maintaining high levels, and the fullyear plan is on track to be achieved.

MAEDA
SEISAKUSHO

Machinery• 1Q results showed a significant increase in sales compared to the same period last year.
• Orders received are progressing smoothly, and the full-year plan is on track to be achieved.

Others• 1Q results were generally lower YoY, mainly due to construction period delays and inflation. Since the company
expects to be able to recover the cost of sales in 2Q and beyond, the full-year plan is expected to be achieved.

3Strategically and reliably acquiring arena concession projects in progress Aim to be a pioneer in the stadium/arena business, anticipated to grow
Our company's
across Japan.
 Build a regional network using the arena as a springboard foraim
infrastructure operations in each region.
Ecosystem for regional revitalization using Stadiums/Arenas as a catalyst
Providing knowledge andstructuring projects in line withlocal government needs

Utilize the established local
network for infrastructure
operationsConducting sales activities andconstruction of facilities incooperation with local
companies

Creating a lively community
with the Stadium/Arena at its
core

Type１：Metropolis × Global・Large-scaleevents

Type2：Metropolitan area × Domestic・Mid-scale events

Type3：Local area × Community-based

National Stadium Concession

Toyohashi Arena Concession

Toyama city Gymnasium
Renovation-Concession

Apr. 2024 to Dec. 2024
（Under discussion）
Apr.
to Mar. 2055
Management （302025years）
Renovation

Construction Sep. 2025 to Jun. 2027
2027 to Sep. 2057
Management Oct.
（30 years）

Renovation

Oct. 2024 to Sep. 2026
2026 to Sep. 2039
Management Oct.
(13 years)

4Japan Wind Development Steadily implementing development centered on onshore wind power• Steady progress in development, with projects expected to reach around 1,400 MW inoperation by FY30
(MW)
1,800
1,600

1,628
46

284

1,400

1,129

1,200

454

1,000

1,175

633

600

496
772

429

214
161
3961

269

200

90

161
39
50

179

179

219

24

25

26

314
38

50

258

319

357

407

27

28

2930

※ Including offshore wind power generation which acquired FIT within the Kodomari fishing port area.

In operation400

937

Start ofoperation
this term

800-

1,628
Construction
underto begin thisconstruction
quarter

1,583(FY)5Renewable Energy Strategy

Capital Recycling or Electricity Sales Revenue Model

When considering our renewable energy business strategy, the decision between adopting a capital recycling modelor an electricity sales revenue model can be made based on cost and environmental value as follows:
In practice, the choice will be comprehensively determined by considering the impact on performance, cash flow,
capital efficiency, and the overall business portfolio, among other factors.

Environmental value is increasing.

Impact on revenue.

Electricity sales revenue modelHybridenvironmental value⇧ × cost⇧environmental value⇧ × cost ⇩High costs but potential for increased profits

Low cost with potential for profit expansion.

from electricity sales.

➡Option to choose between electricity sales➡Retain and secure long-term electricity

revenue model or capital recycling model.

Yendepreciation
High costsales revenue.

current market environment
Suspension of plans

Capital recycling model

environmental value⇩ × cost ⇧environmental value⇩ × cost ⇩High costs make it difficult to expand profits

Electricity sales are unlikely to see athrough either sales or electricity sales.

➡Suspend until environmental value
increases or costs decrease.

Yenappreciation
Low cost
Impact on
investment
amount.

significant increase in profits.
➡Capital recycling through sales

No increase in environmental value.

6

Shift to cash flow-focused management.
Recover cash in a few
months to a few years.

Construction
 Small investment amount Cash recovery in a few
months to a few years

Generate cash
for investment.

“De-construction”
business
Renewable energy projectsconcession

 Large investment amount Recovery over themedium to long term

Investment required over several
years to more than five years.
high expected
investment returns
Investment
phase

Recovery phase

Accelerating high investment return, moving away from contracting to
infrastructure operation⇒Shifting towards more cash flow-focused management.

7

Reduce Cross-Shareholdings to zero by fiscal year 2027
Policy for the sale FY24 target:Sell over 25 billion yen of Maeda Corp.
of Cross(reduce the ratio to net assets to below 20%)
Shareholdings

Final goal Reduce to zero for the entire INFRONEER Group by FY27.

Implement distribution with awareness of financial discipline and capital
Policy for theallocation ofefficiency.
funds from sales. ➡The specific distribution policy will be announced as soon as it is decided
by the next medium-term management plan.

INFRONEER
140.0※The stock price is based on the market value at the end of the fiscal year.

26.4%

120.0
100.0

Group's transition of policy-held share sales amount and ratio to net asset ownership

94

19.8%
72

80.0
60.0
40.0
20.0
0.0
[Billion yen.]

11.0
FY2130.0%25.8%

22.0Over 25billion

3.9

FY22

FY23

20.0%
Aim for zeroby fiscal year2027.

End-of-period
Holding amountSale amount

25.0%

Reduce the ratio to net
assets to below 20% by fiscalyear 2024.

1080.0%
FY24

FY25

FY26

FY27

15.0%
10.0%
5.0%
0.0%
8

[Appendix]
Environmental value is expected to increase as renewable energy supply fails to keep up with demand growth●Share of renewable energy in Japan's
electricity mix

TargetExcerpt from 『6th Strategic Energy Plan』

38％

22％

Renewableenergy1.82 trillion kWh92.6FY2030 【Target】●Japan's electricity demand isexpected to grow(billion kWh)

Demand for electric
power is increasing
due to an increasein new data centersand semiconductor
factories.

Wind Power deployment is behind target

Renewableenergy

934 billion kWh

FY2022【Result】●Target amount of renewable energy
electricity to be introduced in FY30

FY2022
Results
Solar34 billion kWh

76.9

17 billion kWh
9.3

OnshoreWind0

Offshore
Wind37.1

3.0
Geothermal

Hydroelectric Biomass●Large shortage of renewable energy
supply relative to demand
Demand for renewable energyby RE100 companies

RE100924

2021（Result)

1081

1265

2040
2050
（Estimation） （ Estimation ）（Note: Figures for 2040 and 2050 are estimated for the maximum scenario among the three scenario cases.
(Source: Central Research Institute of Electric Power Industry)

International initiative
for companies toobtain 100% of theelectricity they use on
their premises fromrenewable energy
sources

Shortage of
再エネ不足分
renewableenergy9【Disclaimer】• This financial presentation document is originally in Japanese and has been translated in English. Any
texts, figures and descriptions etc. in Japanese document is the original and the English document is forreference purposes only. In case of any conflict or inconsistency between these two documents, theJapanese documents shall prevail.
•The figures in this document are based on financial results as of August 9, 2024, and rounded to thenearest 100 million yen.

•While every attempt has been made to ensure the accuracy of the information, the forecasts containedin this document are based on judgments made with information available as of August 9, 2024, and are
subject to risks and uncertainties that may cause actual results to vary.

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