Taisei : FY2023 Presentation materials with text

• In this section, I will be discussing our consolidated performance unless otherwise noted.

• Comparing the results of the current fiscal year with the results of the previous fiscal year, new orders of Building Construction remained at almost the same level as in the previous fiscal year. New orders of Civil Engineering increased due to new multiple large projects won.
• Net sales increased due to the steady progress of backlogs, but overall each line- item profit decreased due to a significant decrease in Building Construction, despite an increase in Civil Engineering and Real Estate Development and Other.
• Regarding the financial forecast for the next fiscal year, the new orders in the next fiscal year is expected to be almost the same level as in the current fiscal year.
• Net sales in the next fiscal year is expected to increase due to an increase in backlogs at the beginning of the period in civil engineering business and building construction business. Each line-item profit in the next fiscal year is expected to increase due to an increase in net sales and an improvement in profit margin ratio in Building Construction.

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【FY2023 Result】

• New orders in the current fiscal year were 1,962.4 billion yen, up 152.0 billion yen YoY.
• New orders of Civil Engineering increased due to new multiple large projects won.
• New orders of Building Construction and Real Estate Development and Other were almost the same level as in the previous fiscal year.

【FY2024 Forecast】

• New orders in the next fiscal year are expected to be 1,910.0 billion yen, which will be almost the same level as in the current fiscal year.
• Although new orders of Civil Engineering are expected to decrease due to a reactionary drop from new large projects won in the previous fiscal year, new orders of Building Construction are expected to be almost the same level as in the previous fiscal year.
• New orders of Real Estate Development and Other are expected to decrease due to a reactionary drop from the sale of property to private REIT in the previous fiscal year.

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• These are the major new projects won by Civil Engineering of Taisei Corporation.
• For your information, major new projects won not listed above include the following:
• • Construction work for facility and land from the central government agency 〔 1Q 〕
  • Construction work for land formation from the electric and gas industry 〔 2Q 〕

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• These are the major new projects won by Building Construction of Taisei Corporation.
• For your information, major new projects won not listed above include the following:
  ・ Construction work for condominium from the service industry 〔 4Q 〕

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【FY2023 Result】

• Net sales in the current fiscal year were 1,765.0 billion yen, up 122.3 billion yen YoY.
• Net sales of Civil Engineering and Building Construction increased due to an increase in backlog at beginning of period, mainly in large-scalecarry-over projects.
• Net sales of Real Estate and Other grew due to the sales of properties to private REIT.

【FY2024 Forecast】

• Net sales in the next fiscal year are expected to be 1,990.0 billon yen, up 225.0 billion yen compared to the current fiscal year.
• Net sales are expected to increase due to the reflection of the full-year performance of the newly consolidated subsidiary in Civil Engineering through M&A, and the progress of large domestic projects in Building Construction.
• Net sales of Real Estate Development and Other are expected to decrease due to a reactionary drop from the sale of property to private REIT in the previous fiscal year.

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【FY2023 Result】

• Gross profit in the current fiscal year was 127.4 billion yen, down 20.4 billion yen YoY.
• Gross profit of Civil Engineering increased due to an increase in net sales and the contribution of newly consolidated subsidiaries through M&A.
• Although net sales of Building Construction increased, gross profit thereof drastically decreased due to mainly a decline in the profit margin caused by the provision for loss on construction contracts recorded.
• Gross profit of Real Estate Development and Other grew due to the sale of properties to private REAT.

【FY2024 Forecast】

• Gross profit in the next fiscal year is expected to be 206.0 billion yen, up 78.6 billion yen compared to the current fiscal year.
• Gross profit of Civil Engineering is expected to increase due to an increase in net sales and gross profit of Building Construction is expected to increase due to an increase in net sales and an improvement in the profit margin.
• Gross profit of Real Estate Development and Other is expected to decrease due to a reactionary drop from the sale of property to private REIT in the previous fiscal year.

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【FY2023 Result】

• Gross margin in the current fiscal year was 4.3%, down 3.1 percentage points YoY.
• Gross margin of Civil Engineering was 19.8%, which was almost the same level as in the previous fiscal year.
• Gross margin of Building Construction was minus1.0%, down minus4.6 percentage points YoY due to the following reasons for domestic construction projects.
• The first one is that, as the overall trend, our efforts to improve the profits was offset by the rise in the construction prices, and the target profit level could not be achieved. The second one is that we recorded the provision for loss on construction contracts for some large-scale projects, which have been severely affected by rises in construction prices after our submission of estimates, and for some large-scale projects, which required promotion costs in response to the tightening of the process.

【FY2024 Forecast】

• Gross margin in Civil Engineering in the next fiscal year is expected to be 19.4%, down 0.4 percentage points, and that in Building Construction is expected to be 5.8%, up 6.8 percentage points. Consequently overall gross margin in the next fiscal year is expected to be 9.0%, up 4.7 percentage points.
• Although both in Civil Engineering and Building Construction, we cannot reflect to the forecast the favorable events such as the acquisition of additional works, which are not decided at this stage, Building Construction is expected to improvement of profit margin due to mainly a reactionary rise from large loss recorded in the previous fiscal year.

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【FY2023 Result】

• SG&A in the current fiscal year was 100.9 billion yen, up 7.8 billion yen YoY due to an increase in personnel expenses as a result of a pay raise and implementation of the investment plans.

【FY2024 Forecast】

• SG&A in the next fiscal year is expected to be 119.0 billion yen, up 18.1 billion yen compared to the current fiscal year due to the continued increase in personnel expenses as a result of a pay raise and investment in human resources, and research and development expenses based on the investment plan of the New Medium-Term Business Plan.

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【FY2023 Result】

• Operating income in the current fiscal year was 26.5 billion yen, down 28.2 billion yen YoY due to a decrease in gross profit and an increase in SG&A.

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