INFRONEER Medium-term Vision 2024

October 1, 2021
Challenge the status quo

Contents

1. Overview of a Holding Company

13. Machinery strategies

2. Business Environment forecast

14. Capital strategies & Return policies

3. Our Goal

15.Cash flows

4. 3 Core Strategies and Important
Measures16.IT and DX Strategies

5. Concrete Measures of 3 Core
Strategies

17.ESG management for maximize ouradded value

6. Positioning of Medium-term Vision

7. Basic policy of Medium-term Vision
8. Performance target figures
9. Civil engineering strategies
10.Building construction strategies
11.Infrastructure operation strategies
12.Pavement strategies
1１．Overview of a Holding Company
Name
Established

INFRONEER Holdings Inc.

Capital20 billion yen

October 1, 2021

Structure of
Corporate Organs

Company With Nominating
Committee, etc.

Security code

TSE 1st Section No. 5076

The will that is put in this logo

The will that is put in this name

【INFRONEER ARROW】• Creating future of infrastructure & expanding freedomof infrastructure services. Overcoming preconceptions& expressing intention to innovate through dynamic
motif【 Infrastructure/ Innovative/ Pioneer/Engineer/Frontier 】• Coined word representing innovators, pioneers,
engineers and frontier for infrastructure services in past,present and future

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

We challenge the status quo of existing infrastructurebusinesses and deliver the most suitable service globally with
innovative ideas.

バリュー

Value
Value

私たちが約束する価値

Safety, security, and sustainability of our society and local
communities
2２．Business Environment Forecast• The Japanese market of new construction is predicted to shrink due to shortage of national and local government
budgets.
• As a solution, it is predicted that new markets such as infrastructure maintenance, repair, renewal and new construction
by using public-private partnership method(PPP) will expand rapidly.
• Furthermore, by policy promotion for the carbon neutral, it is predicted that the renewable energy market will also
expand rapidly.
• In order to deal with the shortage of workers, it is essential to promote work style reforms and make drastic productivity
reforms.
• For long-term corporate growth, it is necessary to reinforce ESG management and corporate governance.
• The speed of social changes is accelerating, such as the rapid progress of digital technology, and there is an urgent needfor a prompt and agile system.

Expansion of new market
Public infrastructure going to PPP market⚫ *1Availability Payment Method will be
introduced⚫ *2Green field also will be introduced by
PFI Law amendment■Currently adopted as*3 DBT+ concession method

Renewable energy markets expanding more
Future market size
(FY20～30 total)

Creating new markets＋

Government expressed support
for expanding PPP market
Market size of PPP②New PPP market(including Availability Payment)
170 billion yen/year(FY30)*4③Existing PPP market
1.6 trillions yen/year(FY30)*5

Market size of Renewable energy①New construction market
created by the greenfield
concession

About 7.0 trillion yen

About 2.2 trillion yen
solar

FY24

FY27

FY30

*1～3 see the references*4 originally calculated from the MIC “Local Finance Survey Materials (Reiwa 1st
Revised Edition)”*5 originally calculated from the Cabinet Office "PPP / PFI Promotion Action Plan
(Reiwa 3rd Revised Edition)"

About 1.3 trillion yen

geothermal heatbiomass
hydro

FY20
FY21

About 5.8 trillion yen

windAbout 1.3 trillion yen

FY30*6*6 originally calculated partially from the sixth basic energy plan (draft)3３．Our Goal
• Strongly promote “integrated infrastructure service company” that manages both upstream anddownstream of infrastructure operation business aiming to establish a business model that realizes
sustainable growth without being influenced by external factors.
• Create stable and highly profitable revenue base by uniting the engineering of each group company,
expanding the business fields by M&A and reinforce competitiveness.
• Aim for "company trusted by all stakeholders" by establishment of an effective corporate governancesystem, promote Digital Transformation (DX), realize prompt and appropriate management andreinforcement our "ability to deal with social changes."
Deal with Social Changes”Integrated Infrastructure Service Company”
Expand business fields & manage both upstream anddownstream of infrastructure operation business

Reinforcement of Governance● Company with nominating committee, etc.
● Speed up management decision making

Reinvest

Operation &MaintenanceLarge-scale
Renovation

RenewalConstruct

Manufacture&
Procurement

Engineering

Plan & Design

Plan & Propose

Profitability

Upstream● Independent directors are majority

Existing Business× Finance Strategy ×/Audit is Independent director● Director of the board is Independent director● Value diversity

Downstream

Reinforce flexibility of dealing with changes

Each company’s
×
Network●Promote ICT・DX●Expand business field by M&A●Strengthening ESG/SDGs activities

4 keys to obtain competitiveness (our strengths)
Knowhow of
infrastructure
operation● Chairperson of Nominating/Compensation

Create stable and highly profitable revenue base

Deal with social changes

Company trusted by all stakeholders
4４．3 Core Strategies and Important Measures• In order to realize our goals, we have set “roductivity reform”, “Create new revenue bases”, and “Strengthen andimprove corporate culture ” as 3 core strategies.
• In order to achieve the strategies, we formulate important measures for each 3 core strategies.
Our goals

Necessary elements

Deal withsocial changes

Company trusted by all stakeholders

Create stable and highly
profitable revenue baseProfitability

3 Core Strategies• Maximize added value
Productivity
reformRationalization&
efficiency

Groupstrategy

Important Measures

Create newrevenue bases• Optimization of costs• Promote group financestrategies• Enhance competitivenessin infrastructure operating
business globally• Expansion of businessfieldsReliability

Quickness

Strengthen andimprove corporate
culture• Promote group humanresources strategies• Strengthen corporate
governance5５．Concrete Measures (Medium-to-Long term) of 3 Core Strategies
3 CoreStrategies

Important Measures

ESG

ES

Enhance competitiveness in existing business fields by gathering achievements and knowhow of
infrastructure operation business.
Reinforce business foundation by using the group company's networks (including global expansion)

ES

Reduce costs for materials and equipment by group joint procurement and centralized purchasing

S

Secure stable and good-qualified supply through cooperation with subcontractor companies

S

Maximize productivity in all business fields through promoting digital technology across the whole group

ES

Accelerating research and development speed by gathering our strengths

G

Investment for growth considering capital investment efficiency and profitability

G

Relocate workforce to high added-value business by integrating overlapping departments

ES

Productivity reform

Maximize
added value

Optimization of costs
Promote group financestrategies

Create newrevenue bases

Enhance competitiveness ininfrastructure operating
business globally

Expansion of business fields

Strengthen and improve
corporate Culture

Promote group humanresources strategies

EG

Optimizing and streamlining workloads through accumulation and centralized management of big data anddevelopment of digital tools
Optimization of fixed costs by effective utilization (consolidation) of group assets

G

Reduce capital cost by managing group financeES

Enhance competitiveness in infrastructure operating business by mutually sharing management resources

SG

Global business expansion of infrastructure operation business with our overseas networks

ES

Reinforce renewable energy business that leads to a carbon free society and sustainable urban development

ES

Expand business fields by sharing our various (engineering technology, know-how, network, etc.) strengths

ESG

Expand into new fields of business by mergers and acquisitions

ESG

Active recruitment of specialist human resources

SG

Carry out employee engagement surveys to improve employee’s motivation

SG

ESG

Improve employees’ motivation thorough investment for education and improvement of human resources system
Establishment of CSV thinking and dissemination of management philosophy through joint training and discussion
with executives
Promote sustainable development of company and employees through strategic recruiting and education
Implementation of management that realizes transparent, fair, speedy and decisive decision
making
Improve compliance awareness by continuous training

SG

Improve corporate value by strengthening corporate governanceSG

Fostering a corporate culture in which diverse human resources can play an active role

S

ESG
S

G
Strengthen corporate
governanceConcrete Measures

6６．Positioning of Medium-term Vision
Point

Medium-term Vision is phase of establishing foundations for phase of growth after FY25

INFRONEER Vision 2030

Medium-term Vision

Phase of establishing foundations

Phase of growth•Expansion of concessions (domestic and overseas)•Expansion of availability payments business•Productivity improvement by DX and sharing
systems
30•Further promotion of M&A•Pursuit of group synergies•Establish a system for new
business fields•Promotion of DX andsharing systems•Promotion of M&A

25

Return to employees according tobusiness performanceNet
income※36

Operatingprofit※

10

80.5

70

100

57

50.5

（83）

FY22
Goodwill 6.6 billion JPY
Machinery depreciation 1.7 billion JPY

40

59

FY24
Starting IFRS(FY23)FY27

FY30※Net income and operating profit are
based on IFRS (except goodwill
amortization)

7７．Basic policy of Medium-term Vision
Point

Measures to focus on especially at phase of establishing foundation after FY25

Pursuing
group strategy

Establish a system
for new businessfieldsPromotion of DX
and sharing
systems

Promotion of
M&A

Improve competitivenessMutual application of achievements and know-how of groupcompanies

Enhance business foundation

Maximum utilization of regional / customer networks of groupcompanies

Ensure high-quality sharing
capability

Integrate the information and strengthen cooperation with partnercompany of each group company

Cost reduction

Effective use of group assets (consolidation)

Improve competitiveness in theinfrastructure operation market

Bringing together the strengths of engineering of each groupcompany, the experience and know-how of infrastructure operation,
finance and regional network

Further expansion of therenewable energy business

Further accelerate the existing renewable energy business

Expansion of business fields

Fusion of business fields of group companies

Cost reduction by sharing
systems

Integration of overlapping business processes at each groupcompany, sharing and efficiency of functions, and resource shift tovalue creation section

Efficiency and advancement ofworking by the digitalutilization

Data aggregation and centralized management of each groupcompany

Complementing insufficientbusiness fields by M&A

Complementing quickly insufficient business fields necessary for“Integrated Infrastructure Service Company”

8

８．Performance target figures (Billions of yen)(Billions of yen)

FY22

FY24

757
101

Net Sales
Gross Profit

23
26
5
35
7
5

Civil Engineering※1
Building Cnstruction※1

Infrastructure Operations※2
Pavement※3
Machinery※4
Other※5

Return to employees according tobusiness performance (included in costsales of each segment )

▲1.5

SG&A
Return to employees according tobusiness performance (included in SG&A)

Operating profit※6
Net income

50
(1.5)

50
36

875
114

Net Sales
Gross Profit

25
31
11
38
9
5

Civil Engineering※1

Building Cnstruction※1

Infrastructure Operations※2

Pavement※3
Machinery※4
Other※5

Return to employees according tobusiness performance (included in costsales of each segment )

▲6

SG&A
Return to employees according tobusiness performance (included in SG&A)

55
(4)

59
40

Operating profit※6
Net income※1 Maeda Corporation (Non-consolidated) ※2 including increase of profit by M&A ※3 Maeda Road(Consolidated)※4 Maeda Seisakusho (Consolidated) ※5 Maeda Corporation (Subsidiary) ※6 Profit is based on IFRS (no including goodwill )GrossProfit
101

SG&A
50

Gross
Profit114

Reward UP
3
Operating
Profit50

SG&A
55

Reward UP
10
Operatingprofit59

9

９．Civil engineering strategies
FY22

FY24

Gross profit

Gross profit

23.5 billion JPY

25.5 billion JPY※Based on salary in FY21

Market trends
Public sector will remain strong, PPP and renewal market will
expand• New constructions of public sector are expected to increase slightly or
remain flat
• Expand PPP market because of financial difficulty• Increase renewal projects in public and private sector such as toll roadcompanies due to aging infrastructure• Expand renewable energy and environmental business ( land &offshore wind power generation etc.) with carbon neutrality

Strength
Industry-leading order rate and rate of winning 1st place oftechnical evaluation score in general evaluation system• Technical evaluation score in general evaluation system・・・Rate of

winning 1st place 37％ (average in 5 years)• The project which win 1st place of technical evaluation score・・・Orderrate 53％ (average in 5 years)• Achievement of renewable energy business, EPC, CM, etc.・・・Total
construction expense 44 billion JPY (past 5 years)

Concrete strategies to achieve our goals
Enhance ordering capability including design & construction
projects• Strengthen design organization by Ｍ&A, mid-career recruitment andimprovement education system• Strengthen approach of sales at early phase by improving value proposal thatmeets customer needs

Expand infrastructure renewal business• Enhance competitiveness by accumulating experience and renewal
technology development• Strengthen relationship between specialized companies and establishment of
network

Minimize lost profits by utilizing DX• Strengthen organization capability by knowledge management ofconstruction management skills• Improve rate of winning design changes and accuracy of cost managementby systemization of management

Development of technology and system for improvement of
productivity• Introduce BIM/CIM at all processes ,accumulate and knowledge• Development of tunnel construction automation technology ( input labor
reduction target is 40%)
• Development of shield integrated management system (input labor reduction
target is 50%)

Establishment good-qualified and sustainable supply system• Challenge “improvement productivity at construction sites” with joint efforts
with subcontractor• Reduce the burden of cash flow and prior investment of partner companies• Establishment of BCP system through enhancement collaboration with groupcompanies and subcontractors

Human resources development• Develop human resources who can expand the market share of the contract
businesses, establish a position, and make profit business• Develop human resources who can expand business fields and perform well

Synergy of group cooperation• Reduce cost of manufacturing by cooperation with Maeda Seisakusho• Increase opportunities of order through sharing sales network of entire group10

１０．Building construction strategies
FY22

FY24

Concrete strategies to achieve our goals

Gross profit

Gross profit

Ordering strategy and securing profits by sales activities from earlyphase of project

26.0 billion JPY

31.0 billion JPY※Based on salary in FY21

Market trends
Cost competition will continue in the contract market• Cost competition will constantly emerge in new construction contract
market• Public-private partnership market will expand in the future due tofinancial difficulties (BT + concession etc.)• Further expansion of the renewable energy market through carbon
neutrality• Drastic productivity reform is urgently needed due to the shortage oflabors and the impact of work style reform.
• Increasing importance of infectious disease control

Strengths
Ordering strategy that does not get involved in costcompetition thorough management of profit margin at thetime of ordering for more than 10 year
• Expansion of stable customers・・・ increase to 1.5 times (134companies) (past 7 years)• Securing information on large-scale projects ・・・ Information morethan 1 trillion JPY (in the next 5 years)• Improvement of design and construction rate・・・
improve to 1.3 times (62.9%) (the past 3 years)• EPC by cooperation with infrastructure operation business (secure profit
rate of construction by cost + fee contract at an order) ・・・ Order record
over 40 billion JPY（ As of the end of the September FY21 ）• Improve proposal capability and order competitiveness by strengthening
cooperation with sales, design, construction section at the sales stage• Promote participation from the planning stage of the redevelopment businessbased on abundant achievements and experience for social issues such as
disaster prevention problem areas• Further strengthen cooperation with infrastructure operation section, increase
orders for BT +concession projects, etc.
• Improve competitive advantage through joint technological development withthe ordering party (floor chamber air conditioning, etc.)• Increase orders due to improvement of design skills and constructionengineering of wooden and wood-based buildings

Productivity improvement through operational efficiency andsystem development• Increase orders, enhance cost management and maximize profit creation byrealization DX of design, quotation, and construction through digitizing costmanagement and construction process information• Realize labor saving by promoting to use in-house developed tool (TPMs) andBIM• Minimize cost and aim for efficiency of construction management bystandardizing and centralizing routine work at all construction sites (inconstruction center)

Human resource development• Implement selective educational program for human resource ofmanagement, project manager and global

Synergy through group cooperation• Increase stable customer by expanding sales area through sharing customer
network of each group company (around more than1.2 times)• Reduce construction cost such as pavement domestic and overseas bycooperation with Maeda Road
• Improve productivity and safety through cooperation with Maeda Seisakusho
for the manufacture of temporary machinery, etc.

11

１１．Infrastructure operation strategies
FY22

FY24

Gross Profit

Gross Profit

5.5 billion JPY

11.5 billion JPY※Based on salary in FY21

Market trends
Public-private partnership market : Expand continuously• Many local governments are considering to start the sports andeducation facilities PFI operation and “BT + Concession” and “Normal
PFI ”will expand• The water and sewage operation business will expand in in all fields ofconstruction and sewerage, especially DB Concession and PFI including
maintenance and renewal• With the promotion of comprehensive road consignment by thegovernment, local governments tend to expand it

Renewable energy market：Expand by reviewing of basic
policy by the government• Expand renewable energy business by government promotion ofcarbon neutrality

Strength
Human resource and achievement of infrastructure operationin various fields• Based on the achievement of infrastructure operation, the staff who
have knowledge are trained and rotated, and in addition to utilizing
know-how to win new projects, it makes possible to approach the"essence" of infrastructure operation, such as extracting data necessaryfor DX

Deepening businesses by collaboration with core businesses
・The growth of infrastructure operation to a certain business scale
promotes human interaction across core businesses division
・As a result, a remarkable synergistic effect has been realized in thequality of work required for design, development, quantity survey,
construction management and infrastructure operation.

Concrete Measure to achieve our goal
Strengthen competitiveness by collaboration with domestic andoverseas companies and M&A• Establishment various partnership (Consortium, business alliance, joint
venture, etc.) with companies which have cutting-edge know-how andexperience• Expand renewable energy business and enhance functions of planning andoperation in new business fields such as forestry and waste through and M&A
and collaboration with external companies and experts

Stable and highly profitable revenue through promoting DX and
R&D• Reduce operating costs by deploying the operation system developed for the
Aichi Road Concession to other projects and centrally managing them
• Reduce operation cost by utilizing each company’s technologies which
benefit infrastructure operation and develop insufficient technology withgroup companies effectively• Establish of a data platform for collaboration with urban OS for participationin Super City and Smart City operations

Secure human resources and strengthen promotion system basedon long-term plan

• Systematic hiring of skilled personnel in accordance with development fields
and number of projects• Improve organizational capability by promoting systematic rotation of humanresources between the development and bidding departments and therenewable energy, concession, and other project operation companies (SPC)• Promote personnel exchanges within the Group and develop multi-talented
human resources who combine the strengths of each company

Strategic approach with utilizing benefit of HD• Enhance lobby activity to create projects by utilizing partner companies andsales personnel who works domestic and overseas• Improvement of productivity and competitiveness by accumulating know-how
and sharing good practice integrated in entire group• Establish special team (Integrated Infrastructure Service Office) and strategicplanning and promotion• Maximize the driving force by establishing a specialized division (Integrated
Infrastructure Service Office) in the Holding company to unify the
infrastructure operation strategies of each company and effectively utilize thestrengths and management resources of each Group company

12

１２．Pavement strategies
FY22

FY24

Gross Profit

Gross Profit

35.0 billion JPY

38.5 billion JPY※Based on salary in FY21

Market trends
Tough market trends are uncertain, business opportunities tocreate a new revenue base are expected to expand• Growth of maintenance market• Increasing demand from society for ESG and SDGs initiatives

Strength
Realize stable and high profitability with a wide customer
network through construction and products business• Good location business area ・・・Sales office 112, factories 102,
Customer more than 10,000 companies• Stable cash flow creation・・・average operating cash flow inpast 10 years 21billion JPY / year
• Accumulate technology and know-how by achievement ofComprehensive road management outsourcing business (3projects)

Concrete Measure to achieve our goal
In addition to maintaining business centered on private
construction, which is one of our strengths and Create new revenue
bases• Establishment of a comprehensive private consignment business model byutilizing abundant achievement of private construction• Development of new products and new manufacturing technologies ( forenvironment-friendly and environmental protection)• Expand sales channels for highly added-value products such as mild patches
by utilizing the network of group companies• Expand comprehensive road management outsourcing services throughM&A in the road field (construction and manufacturing plants)

Productivity reform by DX• Streamline business management by visualizing and sharing customer andasset information in real time
• Standardize and systemize sales know-how and business processes, andintroduce sales support tools to improve sales efficiency and increase orders• Maximize production efficiency and labor utilization by systemizing theoperation management of construction, manufacturing, and shipping, andoptimizing resource allocation based on the results of operation data analysis

Synergy through group cooperation• Enhance initiatives for public construction order by sharing know-how of thecomprehensive evaluation method among group companies• Expand opportunities for orders and secure a stable volume of backlogs byutilizing the sales networks of group companies• Establishment of a new department specializing in infrastructure
management (PPP/PFI business department) at Maeda Road to establish afull-scale collaboration system with group companies• Increase orders for comprehensive road management and road concession
projects by utilizing know-how that Maeda Corporation has in bidding andinfrastructure operation• Strengthen initiatives in overseas markets by utilizing the overseas networksof group companies

13１３．Machinery strategies
FY22

FY24

Gross profit

Gross profit

7.5 billion JPY

9.0billion JPY※Based on salary in FY21

Market trends
Interpenetration of work-style reform and reduction of
construction labors• Accelerating the trend toward automation of construction• Demand for automation and labors saving products (ICT construction
machinery )Growing demand for carbon neutrality• Expand electricity product use• Soundness of forest which absorb CO2

Strength
Technology of handling design, manufacturing, sales, andservice consistently• Ability of planning and proposal a wide range of products• High quality product based on more than 50 years crane manufacturingknow-how• Service (maintenance) & sales network domestical and international• Service (maintenance) capability as an agency of major construction
machinery company

Concrete Measure to achieve our goal
Stable sales amount by strategic product development andintroduction• Introduce and expand electrified (battery-powered) products• Expand sales channels by development products which meet overseas needs

Action for IT & DX

• Promote efficiency on construction site by proposing construction methods
using DX
• Strengthen proposal sales by converting customer needs into data and using
analysis tools• Maximize production efficiency by systemizing the operation management of
manufacturing and shipping and optimizing resource allocation based on the
results of operation data analysis

Human resource strategies• Systematic training of human resources capable of responding to increasingly
sophisticated products, including collaboration with external companies andexperts• Aggressive investment in manufacturing education for multi-skilled workers

Synergy through group cooperation• Expand business areas by utilizing the domestic and overseas customer
networks of group companies• Create new business fields through product development in the forestry field,
etc., utilizing the networks of group companies• Expansion of rental products specialized in specific fields, such as linear,
forestry, and iron & steel, by utilizing the network of group companies• Manufacture of custom-made machinery to meet the needs of each groupcompany's business (temporary machinery, maintenance machinery, laborsaving machinery, etc.)14１４．Capital strategies & Return policies
Set goals for capital efficiency, optimal capital structure, and shareholder returns, with the highest priority

Basic policy on improving corporate value, and implement countermeasures on a regular basis
Medium-term Vision 2024
Capital effectOptimalcapitalstructure

ROE

9.5％

Equity ratio

More than30％

D/E ratio

Less than 0.6 times

Dividend payout
ratio

Shareholder
returnsMore than 30％
More thanShare buy-back

40 billion JPY

until FY24

Asset
efficiency

Crossshareholdings/
Net assets rate
Sales of crossshareholdings

Less than 20％

Improve profitability by effective
investment

Utilize interest-bearing debt and sharebuy-back effectively while maintaining
financial soundness
Implement the policy considered withthe situation as below•Capital efficiency•Optimal capital structure•Return to reward•Investment for growth•Achievement of net income target•Index of ROE etc.
Constant review of validity of ownershipand sell while using WACC as a measureof investment efficiency✓ Consider sale or integration of inefficient assets byexamining the usage status of group-owned assets
15１５．Cash flows
Point• Gain cash flows by arranging our group-held assets including cross-shareholdings• We perform appropriate shareholder return which are well balanced with our capital policy

Cash provided by (FY22 to 24 total)✓ Review validity of possessing
cross-shareholdings while
taking WACC into accountGain on sale of fixed
assets and shares ofsubsidiaries andassociates✓ Disposal or integration of
inefficient assets held bygroup companies✓ Effective and timely sale ofshares of subsidiaries andassociates

Gain on appropriate
borrowings✓ Improve profitability ofexisting business✓ Stable profits from of
infrastructure operations

Shareholder return forincreasing enterprise value

Cash flows fromoperating activities
around 170 to 180
billion JPY✓ Integrate group financeactivities to reduce financecosts✓ Effective utilization of debts
with capital efficiency

Investment for increasing
our competitivenessGain on sale of crossshareholdings
20 to 30 billion JPY

Cash used in (FY22 to 24 total)✓ Infrastructure operations （EIRR of
10% or more）, 36 billion JPY for 3
years

Investment for
growth105 to 110
billion JPY✓ 50 billion JPY M&A for 3 years✓ Investment for DX and IT（ROI 3.0
or more）, approx. 8 billion JPY for
3 years✓ Conversion for environmentally
Friendly or highly productive
production facilities

Investment fornormaloperations
45 to 55 billion
JPY✓ Combination and reorganizationfor overlapping assets held bygroup companies

shareholder
return
60 to 70 billion
JPY✓ Conducted while taking indexes
below into account• Capital efficiency• Optimal capital structure• Reward for employees• Investment for growth• Net income• Indexes such as ROE✓ Dividend payout ratio more than30%
✓ Share buy-back of 40 billion JPY
until FY 2024

16

１６．IT and DX Strategies
We break down preconceived notions which comes from characteristics of existing business

Basic policy collaborating with major consulting firm with measures backed by data and digital technologies
Approach • Collect, accumulate and analyze our business data and organize bases, systems and tools for allprocess of our business• Inspect and rebuild every process of our entire business to cross-departmental reorganization forimprovement of productivity of our group

Systems andOrganizations

Concepts

Analyzeandfeedback

Standardizationof businessprocess

Accurate
simulations andpredictions• Improve business management by visualization of information forclients and assets• Improve sales efficiency and quality of service by standardization andsystematization• Improve productivity by systematization of production management
and accumulation and analyzation of data

Common＋• Constant improvement of operation by visualization, accumulation
and analyzation of performance of each infrastructure operation
projects which already introduced in “Aichi Road Concession”• Build a system for sharing information and data of clients forconstant expansion of markets and sales

Road paving andMachineryShareknow-how• Sophistication of business management by sharing and visualizing ofproduction status of each construction site and minimize lost profit• Improve accuracy of quantity survey and estimation by accumulation
and analyzation of related data.
• Improve accuracy of construction budget and schedule andmaximize construction management efficiency by sharing andvisualizing of rerated data.

Infrastructure
operations

Collection
andAccumulationof data

Construction

Accelerate
decisionmaking process

Promotion of DX• Maximize operational efficiency and minimize of selling andadministration expenses by sharing back-office operations• Sharing information of technologies and sales between groupcompanies

Goals(Productivity
improvement)
Increase in sales
per employee＋(Cost reduction)
Optimization ofordering costs＋(Cost reduction)

Reduce SG&A

FY24
Achieve ourbusiness
objectives

17

１７．ESG management to maximize our added value• Before the concept of ESG was widely spread, we have been working on such as renewable energy businessand public-private partnership business, showing “No.1 company in environmental management.”• From now, we aim for achievement of both solution of social issues and sustainable development of ourcompany as integrated infrastructure service company.
• We formulate business plans such as greenhouse gas reduction target in accordance with TCFD frameworks.
• We will establish ESG governance systems to achieve ESG targets as below.
Greenhouse gas reduction＜SCOPE１＞2030 : Reduce greenhouse gas emission 30％ below 2018 levels. 2050 : Net-zero

E＜SCOPE２＞2030 : Reduce consumption of electricity in offices and plants 60% below 2018 levels. 2050 : Net-zero＜SCOPE３＞2030 : Reduce greenhouse gas emission from materials, products and services 30％ below 2018 levels

Contributions for carbon neutral society
・Further promotion of renewable energy business（Increase the rate of electricity created by renewable energy）
・Realize carbon neutral in infrastructure operation businessContributions for solving social issues
・Regional vitalization through concession business and “Super City Initiative” business・Support subcontractors to secure stable supply

Respect for diversity
・Establish company culture and rules which respect diversity and productivity for employees

S・Conduct human resources training to improve individual abilities

Reinforcement of company governance systems

G・Adoption of structure of corporate organs as company with nominating committee, etc.
・Majority of board of directors are outside directors
・Director of the Board and Chairperson of Nominating, Compensation, and Audit is Independent director
・Implementing the PDCA cycle under the supervision of the Group Sustainability Committee led by thepresident

18Challenge the status quo

Appendix

Reference*1 Availability Payment Method
A fee structure that public agency makes payments according to concession contractor’s performanceon operation and management of infrastructure.
The payments are covered by public agency budgets.
In Europe and the United States, Availability Payment have been introduced in many projects such as
schools, hospitals, courts, roads, transportation, and water service.

*2 Green field
Project structure that includes various stages of project such as new construction, acquirement ofoperating rights, maintenance, large-scale repairs and renewals.
On the other hand, Brown field is project structure that includes only acquirement with operatingrights of existing facility, large-scale repairs and renewals.
*3 DBT + concession
Project structure that combines DBT (Design Build Transfer) and the concession.
Private company constructs a facility and transfers ownership to the public agency.
After transferring the ownership to the public, a private company will acquire the operating right of
the facility and do maintenance, large-scale repairs, renewals.

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