Obayashi : Formulation of Obayashi Group Medium-Term Business Plan 2022

March 11, 2022

Formulation of Obayashi Group Medium-Term Business Plan 2022

Obayashi Corporation hereby announces that it has resolved Obayashi Group Medium-Term Business Plan 2022, "Strengthening the Business Foundation and Accelerating Company-wide Transformation," the five-year business plan starting in FY2022, at its Board of Directors' meeting held today.

As announced in a press release on November 8, 2021, the final-year targets for Obayashi Group Medium-Term Business Plan 2017 ending in FY2021 are not expected to be achieved mainly due to a loss related to domestic construction projects.

The Obayashi Group has newly formulated Obayashi Group Medium-Term Business Plan 2022 toward its corporate philosophy of "contributing to realizing a sustainable society," taking into account the changes in the global social situation, the conditions in the domestic construction market, which is the Group's core business, and the analysis of causes behind the shortfall relative to targets set in the Medium-Term Business Plan 2017.

Under its new Medium-Term Business Plan, the Obayashi Group will work on the following three pillars of fundamental strategies: (i) Strengthen and Expand the Foundation of the Construction Business, (ii) Innovate Technologies and Businesses, and (iii) Expand Business Portfolio for Sustainable Growth. Pursuing the strategies, we will develop a business foundation capable of generating stable profits with consolidated operating income of 100.0 billion yen as the bottom line, and further improve earnings within the period of the new business plan. We will also establish a path to sustainable growth in corporate value by continuing to make decisive investments.

The Obayashi Group is committed to "Strengthening the Business Foundation and Accelerating Company-wide Transformation" by mobilizing all the diverse capabilities to carry out Obayashi Group Medium-Term Business Plan 2022.

Please see the attached material for the details of Obayashi Group Medium-Term Business Plan 2022.

Obayashi Group

Medium-Term Business Plan 2022

"Strengthening the Business Foundation and

Accelerating Company-wide Transformation"

(2022-2026)

The Obayashi Group will conduct the following three pillars of fundamental strategies under its new Medium-Term Business Plan 2022,

"Strengthening the Business Foundation and Accelerating Company-wide Transformation."

• "Strengthen and Expand the Foundation of the Construction Business"
  Enhance productivity and the ability to provide added value for customers by "re-engineering business processes of the domestic construction business," "expanding the construction value chain" and "implementing innovative construction production systems"

• "Innovate Technologies and Businesses"
  Capture growth opportunity generated from social demand for "carbon neutrality" and "well-being (safety, security, comfort and health)" by materializing new value with in-depth integration of innovative technology and business model

• "Expand Business Portfolio for Sustainable Growth"
  Continuously acquire new profit opportunities through open innovation and active investments, leveraging strengths in technologies and networks cultivated in a variety of global business fields centered on construction

Pursuing the strategies, we will establish a business foundation capable of generating stable profits with consolidated operating income of 100.0 billion yen as the bottom line, and further improve earnings within the period of the new business plan. We will also establish a path to sustainable growth in corporate value by continuing to make decisive investments.

The Obayashi Group will continue to take on the challenge of ceaseless transformation driven by talent and innovation to keep providing a variety of solutions for the sustainability of places where we reside: spaces, cities, and the environment.

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I N D E X

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Vision and Social Issues

Review of Medium-Term Business Plan 2017

Background and Key Effort to Pursue

Medium-Term Business Plan 2022

1. Overall Picture
2. Two Phases of the Fundamental Strategy
3. Three Pillars of the Fundamental Strategy
4. 1. Strengthen and Expand the Foundation of the Construction Business, (ii) Innovate Technologies and Businesses, (iii) Expand Business Portfolio for Sustainable Growth
5. Performance Indicator Targets
6. 1. Financial Indicators and Investment Plan, (ii) Non-financial Qualitative Indicators
7. Platform Development Strategy
8. 1. Human Resource Strategy, (ii) Organization Strategy, (iii) DX Strategy, (iv) Technology Strategy, (v) Supply Chain Strategy, (vi) Finance and Capital Strategy, (vii) Sustainability Management System
9. Business Strategy
10. 1. Domestic Construction Business, (ii) Overseas Construction Business, (iii) Real Estate Development Business, (iv) Green Energy Business, (v) New Businesses Initiatives

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Vision and Social Issues

Obayashi Philosophy	Contribute to realizing a sustainable society
Obayashi Code of Conduct	"Fulfill our social mission" "Ensure strict adherence to corporate ethics"	Basic
Obayashi Three Pledges	"Quality, Value, and Efficiency"	Principles

Social Vision	Realization of sustainability of "the Planet, Society, and People"	Obayashi
Obayashi Group's Three Targets	"Decarbonization," "Provide valuable spaces and services"	Sustainability
	"Co-creation of sustainable supply chains"	Vision 2050

• Uncertain, complex era in which existing values are changing significantly
• Globally growing concern, such as carbon neutrality and well-being

In the light of these social changes, the Obayashi Group's vision for 2050

is defined as follows:

• The Obayashi Group will continue to take on the challenge of ceaseless transformation driven by talent and innovation to keep providing a variety of solutions for the sustainability of places where we reside: spaces, cities, and the environment. "

Obayashi Group in 2050

Our brand vision, "MAKE BEYOND Transcending the art and science of making of things," supports the achievement of our basic principles and vision.

Obayashi Sustainability Vision 2050 :https://www.obayashi.co.jp/en/sustainability/vision.html

brand vision "MAKE BEYOND" :https://www.obayashi.co.jp/en/company/corporate_message.html

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