Kumagai Gumi : Notice Concerning the Formulation of Medium-term Management Plan for a Period from FY2021 to FY2023

May 13, 2021

Company Name: Kumagai Gumi Co., Ltd.

Representative: Yasunori Sakurano, President

Securities Code: 1861

List: Tokyo Stock Exchange, First Section

Notice Concerning the Formulation of Medium-term Management Plan for a Period from FY2021 to FY2023

To whom it may concern:

We are pleased to announce that Kumagai Gumi Co., Ltd., has formulated and released a three-year strategic business plan that is compiled in the Medium-term Management Plan beginning in fiscal year 2021.

Through its construction business, Kumagai Gumi has been committed to help solving the social issues of the day and contributing to the development of society, in accordance with the motto of its founder, "Integrity with a Competitive Mindset," which has been passed down from generation to generation.

In recent years, natural disasters have become more severe and frequent in Japan. Social infrastructures built during the rapid economic growth period from the mid-1950s through early 1970s are aging and deteriorating. These factors are having a major impact on the infrastructure that supports people's lives, as well as industrial development in Japan. In addition, the spread of new coronavirus infections is changing people's values and behavior, which is truly increasing the uncertainty of the future.

Given such a business environment, Kumagai Gumi and its group companies will continue to commit themselves to supporting their customers and society in general in the future as a leader in the construction service industry sought by society. We will seriously address and confront the social issues that have emerged in these changing times. Our goal is to contribute to the creation of a sustainable society, a society where people can live comfortably, and a

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society where the economy continues to grow. Through these efforts, we recognize that the role of the Kumagai Gumi Group is to contribute to the realization of a society in which limited resources are recycled, and people, the community, and nature continue to be enriched.

Following the approach of the previous plan, the current Medium-term Management Plan has set the following basic policies:

1. deepen the construction business to increase profitability,
2. accelerate the construction-related peripheral businesses,
3. develop new business domains, and
4. strengthen the management foundation.

Every Kumagai Gumi Group company, working together as a team, is committed to working closely together to achieve its goal of sustainable growth. We would appreciate your continued support in the future.

For inquiries regarding this matter, please contact:

Kumagai Gumi Co., Ltd.

Corporate Communications Department: [phone]

Administration Division: [phone]

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The Kumagai Gumi Group

Medium-term Management Plan

FY2021-2023

Proactive Measures for Sustainable Growth

May 13, 2021

The Kumagai Gumi Co., Ltd.

2021 KUMAGAI GUMI CO., LTD.

Table of Contents

1	Preface					P.	2
2	Summary of the Previous Plan (FY2018-2020)								P.	3
3	Management Planning Process Based on the Group Vision						P.	4
4	Addressing Social Issues to Create an Ideal Society			P.	5
5	The Role We Play in Realizing the Society We Seek					P.	6
6	Basic Policies			P.	7
7	Business and Management Strategies				P.	8
8	Financial Targets			P. 12
9	Non-financial Targets			P. 14
10	Investment Plan				P. 15

2021 KUMAGAI GUMI CO., LTD.

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1 Preface

Kumagai Gumi Co., Ltd. has developed a three-year strategic business plan that is described in the Medium-term Management Plan beginning in fiscal year 2021.

Inheriting the integrity with a competitive mindset from its founder, Santaro Kumagai, who used to say, "I'd like to do the work that will benefit the world someday. If there is any challenging construction work, let me do it.", Kumagai Gumi has been responding to the social issues of the day and working tirelessly for the development of society.

Given the frequent natural disasters that have become more severe in recent years, and the aging social infrastructure built during the economic growth period from the mid-1950s through early 1970s, the current situation in Japan has had a major

impact on the infrastructure that supports people's lives and industrial development. In addition, the spread of new coronavirus infections is changing people's values and behavior, which is truly increasing the uncertainty of the future.

Against this backdrop, the Medium-term Management Plan that we have just formulated is based on a "long-term vision" as its basic premise, which is described in the first part of the plan. It is a new management policy that looks ahead to 2030 and beyond, while following the Medium-to-long-term Management Policy established in 2017.

In light of the social issues that have emerged with the changing times, this plan envisions the society in which we want to live in the future, and describes the role of the Kumagai Gumi Group in achieving this goal.

The second part of the Medium-term Management Plan sets out our policies, strategies, and targets for the next three years based on our long-term vision. Although we were not satisfied with the financial results of the previous plan, we have set 50 billion yen in consolidated ordinary income as our medium-to-long-term financial target for sustainable growth. We have described the initiatives on which we will focus to achieve this goal.

As a leader in the construction services that society requires, the Kumagai Gumi Group is committed to contributing to the creation of an ideal community in which people would want to live by solving social issues to the best of our ability at all

times.

2021 KUMAGAI GUMI CO., LTD.	2