News Release
May 30, 2024

Launching the Second Phase of Startup Investment and Collaboration Activities-Up to 3 billion yen to be invested in promising startups by 2026 -Toda Corporation (Head Office: Chuo-ku, Tokyo, President: Otani Seisuke) has announced
the establishment of a new investment budget, earmarking up to 3 billion yen to strengthen
its startup investment and collaboration activities. Our company intends to enhance its
initiatives towards actualizing innovation through collaboration with startup companies.
1. Overview of our Startup Investment and Collaboration ActivitiesSince 2018, our company has consistently worked on creating shared value with startups. Sofar, we have gathered information from more than 2,300 startups domestically and abroad andhave become involved in more than 45 Proof of Concepts (PoC, including trials), as shown inFigure 1. Further, with strategic and financial returns in mind, we have secured investments
to support startups' funding needs since 2020 and have funded ten companies and four venture
funds.
Now, to maintain and bolster our startup investment initiatives, we have set a new investmentbudget of up to 3 billion yen to be utilized by 2026. Through these investment andcollaboration activities, we are dedicated to accelerating collaboration with promising
startups not previously part of the traditional construction supply chain and delivering newvalue to our clients and society (Figure 2).

As of the end of March 2024.

Figure 1: Accomplishments in our Collaborative Activities with Startups※１: Investments were made in one company and two funds before 2019.

Prop Tech

the clientconstruction
supply chain

MobilityConTech

Subcontractors

ClimateTech

Wellness

ArtificialIntelligencefunctioning asa gatekeeper※２
Manufacturer

Robotics

IoT
Subcont
ractors

partners※2 A presence which enables a combination of information and values like never before, creating newfound value

Figure 2: Conceptual Diagram of our Value Creation Activities with Startups

XR/
Metaverse

DeepTech2. Investment Overview
Our investments in startups follow these under-listed policies
Table: Investment Policies etc.
We invest in companies that can work collaboratively to create value in the core
Investment
Policies

businesses*3 of the Toda Corporation Group or companies that can jointly contributeto solving our clientsʼ challenges.
*3 Architecture, Civil Engineering, Real Estate (Development, Acquisition, Management, Maintenance),
Renewable Energy, and others

Investment
Purposes

Investment
Amount (Total)①

New Business Development& Diversification②

Strengthen Toda Corporation Group's Core Businesses③

Nurturing of Startups

Invest up to 3 billion yen over three years (April 2024 to March 2027)
It includes investing in venture capital funds that make startup investments(LP investments)

 Services that can contribute to our clientʼs challenges
e.g., Prop tech, IoT, AI, SaaS, XR, IT/DX, Energy, etc.
Investment
Sectors

 Services that contribute to Smart Cities and Wellness
e.g., Smart City, Wellness, Energy, Climate Tech, Mobility, Metaverse, etc.
 Technologies, Products, and Services that contribute to the development of theconstruction industry
e.g. Con Tech, Robotics, AI, IoT, Deep Tech, XR, IT/DX, etc.

Business stageof theinvestment

seed, early, middle, and latercompanies

Investment
RegionMainly in Japan and the U.S.

3. Background and Past Initiatives
Our company has been continuously working on value co-creation with various stakeholders
to realize our future vision of CX150 establishment as 'realizing a co-creative society as avalue gatekeeper'. In recent years, as more and more startups are emerging, offering superior
products and services, our company established a department in 2020 that focuses on building
relationships with these startups and has been engaged in product and service verificationand joint experiments, mainly with startups in Japan and North America. In addition, we set
up an investment budget(phase 1) in the 2020, reconfirming our commitment to nurture ourrelationships with startups, demonstrating our good faith by investing in 10 companies and 4funds (Figure 3). Through these investment activities, we are steadily forging ahead indeveloping continuous activities that can generate business synergies for us and the startups
we have invested in.
There have been instances of these efforts, such as: - Incorporation of Toilet Signage "Unveil" provided by VACAN Inc. into our real estate,
introducing congestion visualization solutions to our facilities and adding these products
and services to customer-centric proposals
 - The application“HataLuck," provided by HataLuck and Person that transforms shift
worker’s working style through IT, was proposed to customers and group companies, leading
to its adoptionA system developed by BH Inc. to remotely control temporary distribution boards with asmartphone was introduced and operated at a construction site, leading to system
improvements based on feedback from the site.
 - Assisting the spread in Japan of superior products and services by foreign companies,
such as the laser layout system provided by Canada's Mechasys
We will establish a new investment budgetto continue developing startup investment andcollaboration activities.

Figure 3: List of investee companies (as of April 2024) *4*4: Waqua, Healthcare New Frontier Fund and DCI Venture have been financed prior to 2019.

Our company aimx to achieve ROE of 8%, which is a medium- and long-term
Goal. We will endeavor to further improve corporate value by optimizing the businessportfolio through the promotion of strategic investments in key managementbusinesses and intangible assets that underpin future growth.