Corporate Report 2013 Data Book

CORPORATE REPORT 2013 DATA BOOK Contents 02 Communication Tools Editorial Policy 03 Our Basic Concept of CSR This report is designed in order to build understanding Major Themes and Items of CSR Activities among stakeholders of TAISEI corporate activities, which are and Their Relationships with KPIs for conducted in line with the TAISEI Group ideal, and the Group FY 2012 action guidelines. The report is composed primarily of TAISEI 07 Environmental Data data and information content. The Environment Organizations Covered 21 Social Data TAISEI Corporation and main Group companies Consumer Issues Reporting Period Community Involvement and Development FY 2012 (from April 1, 2012 to March 31, 2013) Human Rights and Labor Practices (Some content from other fi scal years is also included.) Labor Practices Reference Guidelines 31 Governance Data ▲ Ministry of the Environment, “Environmental Reporting Organizational Governance Guidelines (FY 2007 Version)” ▲ Fair Business Practice ISO 26000 (Guidance on Social Responsibility) 37 KPIs (Key Performance Indicators) Issued October 2013 TAISEI KPIs A Note About Forward-Looking Statements Group Company KPIs Opinions, outlooks, and other forward-looking statements in this report are based on information available to us at the time of writing. 45 Financial Data Please understand, therefore, that changes in various factors may cause actual Consolidated Balance Sheets target fi gures and results to differ from these projections. Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Net Assets Consolidated Statements of Cash Flows 53 Corporate Data Corporate Profi le / Board of Directors, Corporate Auditors and Executive Offi cers TAISEI Corporation Organization Chart Overseas Network External Awards / External Evaluations 58 Third Party Opinion

1 TAISEI CORPORATE REPORT 2013 DATA BOOK Communication Tools

TAISEI CORPORATE REPORT 2013 The Corporate Report introduces main CSR initiatives of the TAISEI Group aimed at resolving social issues in special reports. Also introduced are the advanced technologies that support those initiatives and construction achievements.

CORPORATE REPORT 2013

TAISEI CORPORATE REPORT 2013 DATA BOOK The Data Book provides information on the status of TAISEI Group CSR activities. It

contains primary fi nancial information together with non-fi nancial information such as CORPORATE REPORT 2013 the issues, objectives, and current status of CSR activities established with reference to DATA BOOK ISO 26000, the status of environmental management activities (the TAISEI Agenda), and main KPIs.

TAISEI ANNUAL REPORT 2013 Directed mainly to overseas investors, the Annual Report contains fi nancial information together with information on main CSR activities aimed at resolving social issues, the latest technologies, and overseas construction achievements.

ANNUAL REPORT 2013

TAISEI CSR Website http://www.taisei.co.jp/english/csr/index.html TAISEI Group fi nancial information is published in the annual security report, and non- fi nancial information is published on the CSR website. On the CSR website, information is presented in individual e-books, and is also published via links to information about our CSR activities in general that have been disclosed.

TAISEI CSR Website Content Our Basic Concept of CSR Labor Practices Corporate activities of the TAISEI Group aimed at Basic conceptual approaches and measures relating to sustainable growth of society are reported here. safe construction and services are presented here. The Environment Human Rights and Labor Practices Basic conceptual approaches and measures relating to Basic conceptual approaches and measures relating to preservation of the environment are presented here. the assurance of a work environment that is pleasant Consumer Issues and rewarding for everyone are presented here. Material about assuring quality and improving customer Organizational Governance satisfaction as well as research and technological Information disclosure on organizational governance, development aimed at resolving social issues are which is the foundation for CSR management, is presented here. introduced here. Community Involvement and Development Fair Business Practices Various initiatives that contribute to local communities Basic conceptual approaches and measures relating to are presented here. the promotion of compliance are presented here.

TAISEI CORPORATE REPORT 2013 DATA BOOK 2 Our Basic Concept of CSR

Promote CSR with Shared Group Ideal and Values The TAISEI Group has sought to realize the Group Ideal, “To create a vibrant environment for all members of society,” by having all employees share the TAISEI Spirit and by implementing our Overall Management Perspective (TAISEI VISION 2020, Mid-Term Business Plan) and Overall Principles of Conduct (Group Action Guidelines) when pursuing our business activities.

TAISEI Group Ideal To create a vibrant environment for all members of society • Continuing Objectives to be Pursued by the TAISEI Group (Goals)

TAISEI Spirit

TAISEI Group Ideal Commitment Creation of Evolution of TAISEI to Openness Value Sprit Traditions

A slogan that concisely • Conceptual approaches valued by all TAISEI Group members for the pursuit expresses the “Group and realization of the Group ideal Ideal,” the “TAISEI Spirit,” and the “Group Action Guidelines.” TAISEI Spirit Mid-Term Business Plan • Basic Policy 1. Fulfi llment of social responsibilities imposed on the construction industry 2. Establishment of a business structure for the creation of high-added value Business issues Overall Overall • Construction business: Strengthening of the core business Principles Management • Development/improvement of social infrastructure: of Conduct Perspective Contribution to post-earthquake reconstruction Action Guidelines Mid-Term • Overseas business: Establishment of an earnings structure for TAISEI Business Plan • Strengthening of initiatives and expansion of business fi elds to create high Personnel and the (FY 2012-2014) added value TAISEI Group as a • Development/improvement of robust business foundations Whole Group Action Guidelines • The “basic principles” for action by the TAISEI organization and the “standards for action and judgment to be strictly observed and positively acted on by TAISEI Group members at all levels”

The 14 points in the Group Action Guidelines are organized along the 7 core subjects of the ISO 26000 standard*

The seven core Main Issues and Commitment to Openness subjects of ISO26000 Objectives • Promote environmental management 1. The Environment 1. Cultivating an open corporate culture activities 2. Securing a pleasant working environment • Quality control and customer 3. Respect for fundamental human rights and diversity 2. Consumer issues satisfaction improvement

3. Community Creation of Value involvement and • Contributions to local communities development 4. Creating a vibrant environment for all members of society • Respect for human rights 5. Striving to create value 4. Human rights and • Creating a pleasant work environment Labour practises • Support for employees’ career development Overall Principles of Conduct of Principles Overall 6. Pursuing customer satisfaction 7. Ensuring and improving safety and quality • Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Evolution of traditions Subcontractors for Health, Safety, and 5. Labour practises the Environment 8. Respect for traditions • Supply Chain Management 9. Promoting partnerships with subcontractors and • Promoting compliance 6. Fair operationg suppliers • Protection management and use of practices 10. Promoting environmental conservation and intellectual property creation • Information security measures 11. Communication with local communities • Corporate governance and internal 12. Conduct in the international community controls 13. Appropriate disclosure of information 7. Organization • Risk management 14. Fulfi lling social responsibilities • Information disclosure and dialogue with stakeholders

* ISO 26000: International guidance on social responsibility for all kinds of organizations, including companies

3 TAISEI CORPORATE REPORT 2013 DATA BOOK Development of CSR Activities Utilizing ISO 26000 The TAISEI Group takes the perspective of our stakeholders (interested parties) when considering CSR issues and objectives and establishing challenges and concrete measures. In fiscal 2012, we established key issues to focus on as KPIs* after using our own unique checksheet based on ISO 26000 to organize our initiatives and exchanging opinions with external CSR experts.

■ STEP 1: Interview employees to investigate current conditions • Holding a department CSR managers’ meeting Interview employees to STEP 1 TAISEI’s CSR Promotion Section held a briefing for the 40 CSR managers in each investigate current conditions division and the 10 in our main Group companies to inform them of our intention to investigate the status of CSR activities. The employees at the briefing increased Identify challenges for the STEP 2 their consciousness towards ISO 26000 and confirmed and shared the process for agenda pursing CSR challenges in the future. Implementing measures for STEP 3 • Taking inventory of CSR activities based on ISO 26000 issues within the PDCA cycle In order to survey the status of CSR activities, the CSR Promotion Section drafted Steps Towards Implementation an original checksheet based on the 36 issues established under 7 core subjects in the ISO 26000 standard. The checksheets were distributed in advance to the CSR managers from each division and from the main Group companies who were later interviewed regarding their responses to take an inventory of the current state of CSR activities. ■ STEP 2: Identify challenges for the agenda • Extracting issues and objectives and setting KPIs The status of the CSR activities in the inventory were then evaluated with the help of the CSR experts at Craig Consulting, and CSR issues and objectives were extracted for each division. These were then used to establish KPIs. • Addressing issues and promoting measures As one issue identified was supply chain management (CSR procurement), a CSR Procurement Council was established as an internal working group and a procurement policy was formulated. In addition, a workshop was held for the CSR managers from each TAISEI division and from the main TAISEI Group companies. ■ STEP 3: Implementing measures for issues within the PDCA cycle • PDCA Cycle Starting with the TAISEI Group Plan comprised of Overall Principles of Conduct and the Overall Management Perspective (Plan), main initiative items were undertaken (Do). The CSR Promotion Section worked with Craig Consulting to set key issues as part of

the TAISEI Agenda and/or as KPIs and Sustained growth to assess the status of those initiatives of the enterprise Plan (Check). Yearly improvements (Act) will Overall Management Act be made to achieve sustained growth Perspective • Identify points of improvement to • Mid-Term Business Plan and Business Plan Act address issues and objectives of CSR of the enterprise. The following pages Issues activities and set issues and objectives Overall Principles of Conduct for the next fiscal year detail the status of initiatives in fiscal • Group Action Guidelines (Basic conceptual approach to CSR activities) 2012 (pages 5-6). Check • TAISEI Agenda 2012 performance Do Check figures and degree of achievement Do • Main initiative items and main KPI • Main Initiative Items performance figures and degree of achievement

Message from an Expert

The objective of CSR for the TAISEI Group is to realize the Group Ideal and is based on the Group Action Guidelines and Mid-Term Business Plan. The 7 core subjects of ISO 26000 were referenced when establishing CSR issues and KPIs previously as well, but in fiscal 2012, an original checksheet based on ISO 26000 was used to analyze activities carried out until then more deeply, after which discussions were held with main departments. This approach deserves high praise as an initiative that will raise the level of the Group’s CSR activities so that they are better suited to the global field within the industry-specific practices of a contracting business. The results of the analysis demonstrated that one issue is promoting CSR throughout the supply chain. In upcoming years, I hope that TAISEI can expand this initiative beyond it to other Group companies and other partners in the supply chain as well. Mr. Mitsuo Ogawa, President of Craig Consulting

* KPI: Key Performance Indicator

TAISEI CORPORATE REPORT 2013 DATA BOOK 4 Major Themes and Items of CSR Activities and Their Relationships with KPIs for FY 2012

The Seven Core Subjects of ISO26000 Action Guidelines for TAISEI Personnel and the TAISEI Mid-Term Business Plan and Group as a Whole, Individual Policies, Guidelines Business Issues Plan

1. The Environment

••Prevention of pollution ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Strengthening of initiatives and expansion ●●Promote environmental management ●●Contribute to realizing a low-carbon ●●CO2 emissions reduction rate during building use (u) P7-20 ••Sustainable resource use ●●Environmental Policies of business fields to create high added activities (achieve TAISEI Agenda society ●●CO2 emissions reduction rate during construction (u) (CSR Activities) ••Climate change mitigation and ●●Declaration of TAISEI on Biodiversity Preservation value 2012) ●●Promote energy conservation ●●Rate of decrease of electric power use (offices) ¯( ) P37, P43, P44 adaptation ●●TAISEI Agenda 2012 Performance ●●Development/improvement of social ●●Promote 3R (reduce, reuse, recycle) ●●Number of proposals given to customers to improve (KPIs) ••Protection of the environment, ●●Eco First Company infrastructure: Contribution to post- activities energy conservation in their facilities (¯) P9 biodiversity and restoration of natural earthquake reconstruction ●●Promote green procurement ●●Rate of recycling of construction waste (ê) (TAISEI Agenda) habitats ●●Proper control of construction waste ●●Rate of green procurement (u) (1) Present ideas and technologies ●●Provide environmentally friendly ●●Rate of electronic manifest penetration (ê) that differentiate us in terms of the technology ●●Amount of media coverage of environmental environment The environment ●●Conduct comprehensive environmental technologies / PJ using these technologies (u) (2) Develop and provide environmental activities ●●Rate of participation in environment-related training (¯) technology 2. Consumer issues

••Fair marketing, factual and unbiased ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Strengthening of initiatives and expansion ●●Quality control and customer ●●Establishment and observance of quality ●●Customer satisfaction surveys (ê) P21-24 information and fair contractual ●●Quality Policy of business fields to create high added satisfaction improvement management standards and procedures ●●Number of patent applications filed and patents granted (CSR Activities) practice ●●Policy on the Protection of Personal Information value ●●Development and provision of (u) P38, p44 ••Protecting consumers’ health and ●●Standards of Conduct for the Use of Social Media technologies for resolving social issues ●●Amount of media coverage of development of (KPIs) safety (1) Expand TAISEI QUALITY activities technologies / Projects in which technologies were ••Sustainable consumption (2) Develop and provide technologies, such applied (u) ••Consumer service, support, and as base isolation and vibration control, complaint and dispute resolution that help resolve the problems facing ••Consumer data protection and privacy society ••Access to essential services ••Education and awareness 3. Community involvement and development

••Community involvement ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Development/improvement of social ●●Contributions to local communities ●●Promoting activities contributing to ●●Number of activities contributing to society and the P25-P26 ••Education and culture infrastructure: Contribution to post- society environment (u) (CSR Activities) ••Employment creation and skills earthquake reconstruction ●●Expansion of employees’ volunteer ●●Number of employees who participated in volunteer P39 ••Technology development and access ●●Development/improvement of robust activities (Support activities in disaster- activities (u) (KPIs) ••Wealth and income creation business foundations affected areas, etc.) ••Health ••Social investment Continuous implementation of community- based activities with local residents

4. Human rights and Labor practises Society

••Due diligence ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Development/improvement of robust ●●Respect for human rights ●●Human rights awareness raising activities ●●Rate of attendance in human rights training (u) P27-29 ••Human rights risk situations business foundations ●●Creating a pleasant work environment ●●Promotion of diversity ●●Number of participants in education and training for (CSR Activities) ••Avoidance of complicity ●●Support for employees’ career ●●Support for work-life balance female leaders / Number of female managers / Number P39, P40 ••Resolving grievances (1) Strengthen human resources and development ●●Promotion of personnel training of female officers / Physically challenged employment (KPIs) ••Discrimination and vulnerable groups promote diversity rate / Number of re-employed individuals (u) ••Civil and political rights (2) Create a system that maximizes ●●Number of employees taking childcare leave (u) ••Economic, social and cultural rights employee potential ●●Rate of paid leave utilization (u) ••Fundamental principles and rights at ●●Number of former employees registered with the Job- work Return system (u) ••Employment and employment ●●Training hours per employee (u) relationships ●●Number of trainees at overseas construction sites (u) ••Conditions of work and social ●●Number of trainees at overseas research institutes, etc. protection (u) 5. Labor practises

••Social dialogue ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Development/improvement of robust ●●Thoroughgoing occupational health ●●Continuous practice and improvement of ●●Number of fatal accidents and frequency rate (u) P30 ••Health and safety at work ●●Health and Safety Policy business foundations and safety management, collaboration TAISEI OHSMS ●●Accident frequency rate (¯) (CSR Activities) ••Human development and training in the with the TAISEI Association of ●●Number of occupational accidents (¯) P41, P43, P44 workplace Establishment of safety-first posture Subcontractors for Health, Safety, and (KPIs) the Environment 6. Fair operating practices

••Anti-corruption ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Development/improvement of robust ●●Promoting compliance ●●Ongoing implementation of compliance ●●Rate of participation in compliance training (Group P31-P34 ••Responsible political involvement ●●Policy on Intellectual Property business foundations ●●Supply Chain Management training training) (ê) (CSR Activities) ••Fair competition ●●Procurement Policy ●●Protection management and use of ●●Promoting CSR procurement ●●Number of branches conducting compliance training for P41, P44 ••Promoting social responsibility in the Strengthening of compliance and ICT intellectual property ●●Intellectual property risk management subcontractors (u) (KPIs) value chain governance ●●Information security measures initiatives (to be set in FY2013) ••Respect for property rights ●●Protection and management of ●●Number of training sessions on intellectual property information rights (u) ●●Increasing awareness of information ●●Number of major information security breaches (u) security ●●Number of company-wide education programs regarding information security (u)

7. Organization Governance

••Organizational governance ●●Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ●●Development/improvement of robust ●●Corporate governance and internal ●●Dissemination and establishment of the ●●Rate of TAISEI Group Ideal e-learning implementation P35-P36 ●●Basic Poliy for the Development of Systems Necessary to Ensure the business foundations controls TAISEI Group Ideal Structure of Values (u) (CSR Activities) Properness of Operations ●●Risk management and Policies ●●Rate of participation in major disaster response training P42, P44 ●●Observing the Charter of Corporate Behavior of the Nippon Keidanren Enhancement of internal controls throughout ●●Information disclosure and dialogue ●●BCP initiatives (ê) (KPIs) ●●Risk Management Policy the TAISEI Group with stakeholders ●●Promoting dialogue with stakeholders ●●Number of dialogues, etc. (u) ●●Action Guidelines concerning Countermeasures to New Strains of Influenza ●●Policy on Business Continuity in Times of Disaster ●●Information Disclosure Policy

5 TAISEI CORPORATE REPORT 2013 DATA BOOK TAISEI Group Main Issues and TAISEI Group Initiative TAISEI Group Main KPIs* Field Pages Objectives Items Degree of Achievement Improvement Do Check Act

1. The Environment

4. Human rights and Labor practises Society

7. Organization Governance

* KPI(s): Key Performance Indicator(s) u : TAISEI KPIs, ¯ : TAISEI Group of companies KPIs, ê : TAISEI and TAISEI Group of companies KPIs

TAISEI CORPORATE REPORT 2013 DATA BOOK 6 Environmental Data

The Environment

Plan (Overall Principles of The TAISEI Group is formulating Environmental Policies aimed at the formation of an environmentally Conduct) friendly society. We will determine objectives and measures for taking action, strive for “preservation and Basic Conceptual Approaches creation of the environment” and promote “advanced environmental business.” • Strengthening of initiatives and expansion of (Overall Management (1) Present ideas and technologies that Perspective) business fields to create high added value differentiate us in terms of the environment Mid-Term Business Plan • Development/improvement of social infrastructure: (2) Develop and provide environmental technology and Business Issues Contribution to post-earthquake reconstruction

Plan Do Check Act Main Issues and Main Initiative Items Objectives (FY 2012) (FY 2012) Degree of Main KPIs*(Key Performance Indicators) achievement Improvement

●●Promote environmental ●●Contribute to realizing a ●●CO2 emissions reduction rate during building management activities low-carbon society use (achieve TAISEI Agenda 2012) ●●CO2 emissions reduction rate during construction ●●Promote 3R (reduce, reuse, ●●Rate of recycling of construction waste recycle) activities ●●Rate of green procurement See the TAISEI Agenda ●●Promote green procurement 2012 on P9 ●●Proper control of ●●Rate of electronic manifest penetration construction waste ●●Provide environmentally ●●Amount of media coverage of environmental friendly technology technologies / PJ using these technologies

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fiscal 2012 improvements (Act) are described on page 37.

Environmental Business Promotion Framework Plan The TAISEI Group is working on a promotion framework for improvement of environmental technology that contributes to “achievement of a low-carbon society,” “preservation of biodiversity,” and “formation of a recycling society.”

Environmental Policies With the group ideal of “To create a vibrant environment for all members of society,” TAISEI, through its construction activities, strives for the development of quality social infrastructure and the improvement of the living environment in harmony with Nature. As environmental problems worldwide increase, TAISEI’s business activities are necessarily a part of the burden on the environment. With these environmental management principles as a guide, and working for an environmentally sensitive society, TAISEI and its group companies strive for “Environmental Protection and Innovation,” and promote “Pioneering Environmental Projects” in all corporate activities. Action Guidelines

1. We shall prevent environmental pollution through compliance with environmental laws, regulations, and agreements and, through the effective application of our Environmental Management System (EMS), expand and continually improve environmental conservation activities. 2. We shall develop environmental technologies that contribute to the realization of a low-carbon society, the conservation of biological diversity, and the formation of a recycling-based society, and use these technologies to benefit our clients and resolve environmental problems. 3. During both planning and design phases, we shall give proper consideration to global and regional environments, and propose to our clients the creation of facilities that harmoniously coexist with the natural environment, conserve energy and resources throughout their life-cycle, and reduce CO2 emissions. 4. During construction, we shall reduce CO2 emissions, give proper consideration to biological diversity, and promote the efficient use of resources, thereby reducing the burden on the environment. In cooperation with specialty contractors and business partners, we shall promote the 3R of construction byproducts (Reduce, Reuse, Recycle), along with other environmental conservation activities. 5. We shall communicate effectively with local communities, and as a worthy corporate citizen, contribute to the conservation of regional environments. 6. We shall proactively cooperate with other nations, NGO’s and NPO’s in creating and protecting the environment.

7 TAISEI CORPORATE REPORT 2013 DATA BOOK Declaration of TAISEI on Biodiversity Preservation

Based on the TAISEI Group Ideal “To create a vibrant environment for all members of society,” and in order to remain an organization that learns from and cares for nature, TAISEI proclaims the following action policy. 1. Analyze the risks the Company’s construction activities pose to biological resources and the ecosystem, utilize environmental management systems, and minimize the impact of those risks to the maximum extent possible. 2. Develop environmental technologies to preserve and re-create biodiversity, and utilize those technologies with clients to sustain ecological services. 3. Perform urban development and facilities design that coexists in harmony with nature, and aggressively submit proposals that serve to preserve and increase biodiversity. 4. Cooperate with business associates, including specialty sub-contractors, in pursuing biodiversity preservation. 5. Promote communication with local communities, cooperate with domestic/overseas NPO/NGO’s, engage in proactive biodiversity conservation activities, and disclose the accomplishments of those activities.

TAISEI Environmental Management Organization Chart

President

Environment Committee Environment Committee Subgroup

Subgroup & Working groups Taisei Group Environmental Action Meeting Central Safety Committee*1

Specific Environmental Corporate EMS Secretariat Representative (CCMO)*2 Internal Environmental Audit Staff

Head Office General Manager Head Office Environment Committee

Environmental Manager

Head Office EMS Secretariat

Branch Branch Manager Branch Environment Committee Environmental Manager

Branch EMS Secretariat

*1 Central Safety Committee From fiscal 2012, environmental accidents are subjects for investigation and deliberation of the Central Safety Committee. *2 CCMO Having appointed the General Manager of the Environment Division as our Chief Carbon Management Officer (CCMO) in FY 2011, TAISEI continues to promote the Carbon Management Working Group (CMWG) across all its divisions with a view to reducing company-wide carbon emissions. CMWG prepares plans and makes strategic decisions regarding risks and business opportunities related to carbon emissions.

TAISEI CORPORATE REPORT 2013 DATA BOOK 8 Environmental Data

Promote Environmental Management Activities (Performance and Objectives) The data on P9-18 is rounded off and therefore may not tally with totals.

TAISEI’s Environmental Management Targets for Fiscal 2013 Regarding the recovery and reconstruction from the Great East Japan Earthquake as important, we have set the following environmental management targets for fiscal 2013 in line with our Charter of group action guideline, environmental policies, and medium-term management plan.

Objective Targets for Fiscal 2013 Promoting1 Div./Dept. 8

Dispose properly and promote1 reuse for Building Construction, Civil Engineering, Manage disaster waste reconstruction Environment

Building Construction, Civil Engineering, Decontaminate devastated areas quickly and not Marketing & Sales, Nuclear, Environment, proliferate radioactive materials Technology Center 1. Contribute to Manage radioactive the recovery & contaminated materials reconstruction Consideration for local citizens and ensure safety Building Construction, Civil Engineering, of devastated of workers & employees Safety, Administration areas by the Great Improve environmental skills of workers & East Japan Address environmental Building Construction, Civil Engineering, employees and execute patrol to prevent Earthquake risks Safety, Environment environmental accidents

Building Construction, Civil Engineering, Contribute to reconstruct & develop Marketing & Sales, Urban Development, Address recovery environmentally friendly town and infrastructures Building Design, Technology Center, Environment

Reduce CO2 emissions at the operation stage of Building Design, Environment buildings by 30% compared with fiscal 1990 level Contribution to low carbon society Reduce CO2 emissions at the construction stage by Building Construction, Civil Engineering, 2. Address global 40% compared with fiscal 1990 level Environment warming

Promote1 reduction in energy consumption rate Promote1 reduction in per floor area at offices (Reduce consumption rate Administration, Environment energy consumption by 10% compared with fiscal 2010 level)

Increase construction waste recycling rate2 Building Construction, Civil Engineering, (Construction waste recycling rate: 95%) Safety

Reduce mixed waste weight rate3 of new building Building Construction, Safety Promote1 3R activities construction projects (Less than 30%) 3. Effectively Utilize Reduce construction waste processing amount4 resources per value of finished work (Less than 350t/ Civil Engineering, Safety hundred million yen)

Promote1 the adoption of green procurement for Promote1 green Building Construction, Civil Engineering, major items following the green procurement procurement Building Design, Procurement, Environment guideline (Green procurement index: 30%)

Enforce and execute activities & trainings to Corporate planning Office, Environment, preserve biodiversity (Over 6 activities & trainings) Urban Development 1 4. Conserve Promote biodiversity biodiversity conservation and creation Building Construction, Civil Engineering, Develop and evolve biodiversity technologies in and Building Design, Environment, Technology both design and construction stages activities for Center, Urban Development, environmental contribution Environment-related Promote1 environment-related contribution Building Construction, Civil Engineering, contribution to local activities5 Administration, Environment community

9 TAISEI CORPORATE REPORT 2013 DATA BOOK Non occurrence of Improve knowledge of environmental laws and Building Construction, Civil Engineering, environmental accident ensure prevention measures Safety

Appropriate management Dispose construction waste properly and improve Building Construction, Civil Engineering, of construction waste electronic manifest penetration rate6 (Rate: 80%) Safety 5. Address environmental Ensure appropriate management and disposal Appropriate management risks of harmful and/or chemical substances such as Building Construction, Civil Engineering, of harmful and/or sprayed asbestos, building materials containing Safety, Administration, Urban Development chemical substances asbestos, and equipment containing PCB

Appropriate management Ensure management and disposal of contaminated Building Construction, Civil Engineering, of contaminated soil soil7 are both appropriate and thorough Safety Urban Development, Environment

Promote research, development, and application of technologies related to CO2 reduction Technology Center, Building Design, and energy conservation (Over 20 media Environment, Engineering presentations) 6. Research, develop, Provision of Promote1 comprehensive proposals for and propose environmentally friendly Building Design, Marketing & Sales, environmentally friendly technologies (Over environmental technologies Environment, Engineering 50 proposals) technologies

Develop technologies related to radioactive material contamination and remote controlling of Nuclear, Technology Center, Environment equipment

7. Promote1 excellent Promote1 eco-model Building Construction, Civil Engineering, environmental Conduct more than 26 projects projects Safety, Environment activities in many fields

1. The word “promote” is used here to mean the realization of specific targets set by the promoting divisions and/or departments 2. Construction waste recycling rate (excluding sludge) = [(amount of waste - final disposal amount) / amount of waste] × 100 3. Mixed waste weight rate does not include the weight of concrete waste, asphalt waste, and sludge 4. Construction waste includes sludge, but disaster waste 5. Environment-related contribution activities include volunteers, local community activities at construction sites, and other related activities 6. Electronic manifest penetration rate = (number of electronic manifests issued/number of manifests issued) × 100 7. Contaminated soil includes radioactive contamination The targets above apply only to Japan.

Targets beyond 2014 (For reference only) Objective Targets for Fiscal 2014

1. Reduce CO2 emissions at the operation stage of Reduce CO2 emissions at the operation stage of buildings by 40% by fiscal 2020 buildings compared with fiscal 1990 level

Reduce CO2 emissions at the construction stage by 50% by fiscal 2020 compared with 2. Reduce CO2 emissions at the construction stage fiscal 1990 level

3. Improve electronic manifest penetration rate Improve electronic manifest penetration rate up to over 80% by fiscal 2014

4. Promote eco-model projects 30 projects including overseas projects by 2014

TAISEI CORPORATE REPORT 2013 DATA BOOK 10 Environmental Data

This presents data on activities for environmental preservation and creation through construction projects. Plan Items that involve independent assurance report (P20) are marked Measures to Address Global Warming with a checkmark symbol.

Projected CO2 emissions and reduction rate at the CO2 emissions during construction Do operation stage of buildings Do Civil engineering Building construction Total Value of work in current ¢ Figure calculated from 1990 benchmark (1000 t-CO2) 199,572 768,009 967,581 ¢ Projected CO2 emissions (1000 t-CO2) period (millions of yen) Projected CO2 reduction rate 2 CO2 quantity (1000 t-CO2) 103.0 96.8 199.8 Emissions by floor area (kg-CO2/year • m ) CO2 emissions reduction rate (%) 55.1* 56.7* 55.9 Projected CO2 FY 2013 target 30% reduction in projected reduction rate Emissions by floor area CO2 emissions (compared to FY 1990) 2 (%) (kg-CO2/year • m ) ¢¢¢ CO2 emissions 45 37.5 CO2 emissions intensity 36.2 CO2 emissions 43.6* 27.9 (1000 t-CO2) (kg-CO2/million yen) 25.7 30 60 600 274 300 30.0 252 241 236 15 49 47 230 37 41 30 453 206 23 400 FY 2013 target 40% 200 0 0 reduction in CO2 emissions CO2 emissions (1000 t-CO2) (compared to FY 1990) 272 65 60 60 238 223 204 189 200 40 200 100 47 34 37 30 38 25 25 21 0 0 0 2008 2009 2010 2011 2012 FY2013 1990 2008 2009 2010 2011 2012 FY2013 * KPIs P37 * KPIs P37

Environmental Performance Index Computation Standards Aggregation period: April 1, 2012-March 31, 2013 Subject organization: Taisei Corporation (Japan domestic only) Aggregation standards: Data is aggregated on the basis of in-house regulation for environmental information management and in accordance with the Act on the Rational Use of Energy, Act on Promotion of Global Warming Countermeasures, Waste Disposal and Public Cleaning Act, Fluorocarbons Recovery and Destruction Act, GHG Protocol, etc. Purpose Item Computation method Classifi cation by business category Classifi ed under civil engineering business (worksite), construction business (worksite), offi ces (including development and other businesses) The scope of aggregation for offi ce data covers the TAISEI head offi ce, branches, and the Technology Center

CO2 emissions Scope 1: CO2 emissions from burning of fossil fuels Scope classifi cation Scope 2: Indirect CO2 emissions from electric power use, steam use, and hot/cold water use Scope 3: CO2 emissions from removal of construction waste from construction sites and from outgoing and returning transport of soil generated by construction (offsite emissions).

CO2 emissions CO2 emissions coeffi cients Calculation methods Diesel oil, fuel oil, and kerosene: Calculated using the fuel consumption data by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients in the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures Electric power: Calculated using the 2011 user-end emissions coeffi cient (before refl ection of Kyoto credit) of 0.510 t-CO2 / MWh announced by the Federation of Electric Power Companies of Japan. Emissions for the previous fi scal year were also updated using this coeffi cient. City gas: Calculated using the standard calorifi c value from city gas providers and the emissions coeffi cient in the Act on Promotion of Global Warming Countermeasures. NOx and SOx emissions Calculated NOx and SOx emissions from diesel oil, fuel oil, and kerosene Calculation methods Calculated in the past fi ve years, using the fuel consumption given by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients published in “Revised LCA Index for Architectural Structures: A Tool for Assessing Measures Against Global Warming, Resource Consumption, and Waste Production” by the Architectural Institute of Japan. Amounts used during two-month period of fi scal year 2012 sampled from 144 construction sites were aggregated and Calculation method for energy used, fossil fuel used usage (intensity) per value of work performed in that two-month period was calculated. Annual emissions were calculated (diesel oil, fuel oil, kerosene), electric power used, by multiplying the value of work for the year by this intensity. The calculations for civil engineering are performed by work water used category.

Material Flow-Related Material < O f fi c e s > Starting in the current fi scal year, the annual amount purchased and amount used are calculated on a monthly basis at each Calculation method for energy used, fossil fuel used offi ce, for all offi ces. (diesel oil, fuel oil, kerosene), electric power used, city gas used, water used Main building materials and construction materials purchased directly for TAISEI independent projects and for joint projects Calculation method for main building materials and in which TAISEI is the representative. construction materials purchased Amount of chlorofl uorocarbons and halons recovered for disposal contracted by TAISEI Calculation method for amount of chlorofl uorocarbons, halons recovered Waste soil generated and removed from construction sites Calculation method for amount of soil generated by construction and removed Construction by products, etc. (waste, valuable materials) generated by TAISEI independent projects and by joint projects in Calculation method for amount of construction which TAISEI is the representative. waste removed Forms purchased directly for TAISEI independent projects and for joint projects in which TAISEI is the representative. Calculation method for amount of concrete forms and replacement forms used

Projected CO2 emissions and reduction rate during Calculated using energy-saving plans for each of 42 projects for architectural structures designed by TAISEI with total fl oor building use area of 2,000 m2 or more, a total of approx. 890,000 m2.

2 2 2 Global Global CO emissions and reduction rate during Worksite CO emissions and rate of reduction in CO emissions compared to fi scal 1990 Warming Prevention construction Results for use of green procurement items Portion introduced into design specifi cations calculated using Eco-Sheet CASBEE for architectural structures designed by TAISEI Resource Recycling Recycling rate ((Amount generated – Amount for fi nal disposal) / Amount generated) × 100

11 TAISEI CORPORATE REPORT 2013 DATA BOOK This presents data on activities for the purpose of environmental Environmental Impact of Business preservation and creation through construction business activities. Items that involve independent assurance report (P20) are marked Activities Do with a checkmark symbol.

Material Flow INPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 Total energy usage 109MJ 4.08 3.57 3.52 3.96 3.55 Worksites (building construction) 109MJ 1.60 1.54 1.40 1.71 1.56 Worksites (civil engineering) 109MJ 2.32 1.87 1.98 2.13 1.64 Offices 109MJ 0.17 0.16 0.15 0.12 0.35 Total for fossil fuels (diesel fuel, fuel oil, and kerosene) 1,000kℓ 68 61 48 62 55 Diesel fuel 1,000kℓ 67 60 47 61 53 Kerosene 1,000kℓ 1 1 1 1 0.9 Fuel oil 1,000kℓ 0.3 0.3 0.9 Total for electric power 106kWh 151 127 170 161 143 Worksites (building construction) 106kWh 57 56 55 50 58 Worksites (civil engineering) 106kWh 78 56 101 99 56 Offices 106kWh 16 15 14 12 29 City gas (offices) 1,000m3 115 108 117 85 150 Total for main building materials used 1,000t 7,043 5,549 5,958 6,742 6,676 Ready-mixed concrete 1,000t 6,021 4,627 5,082 5,440 5,200 Aggregate (gravel, crushed rock, etc.) 1,000t 288 189 248 461 870 Cement 1,000t 272 361 193 164 130 Steel 1,000t 408 335 393 647 440 Wood building materials 1,000t 33 24 20 26 30 Asphalt 1,000t 21 14 22 4 6 (Amount of which was green procurement)*1 1,000t 2,621 2,732 2,079 1,761 2,161 Total amount of concrete forms used 1,000m2 7,006 4,629 4,216 4,741 4,407 Tropical plywood forms 1,000m2 4,975 3,605 3,079 3,094 3,543 Substitute forms 1,000m2 2,031 1,024 1,137 1,647 864 Replacement forms as percentage % 29.0 22.1 27.0 34.7 19.6 Water 1,000m3 3,188 2,537 3,122 3,063 1,663

OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 2 Total CO2 emissions 1,000t-CO 246 210 195 228 216 Worksites (building construction) 1,000t-CO2 97 91 81 104 97 Worksites (civil engineering) 1,000t-CO2 141 113 108 119 103 Offices 1,000t-CO2 8 7 6 5 16 2 Total CO2 emissions 1,000t-CO 246 210 195 228 216 Scope1 1,000t-CO2 156 139 108 134 118 Scope2 1,000t-CO2 62 52 70 67 73 Scope3 1,000t-CO2 27 20 17 26 25 NOx t 1,177 1,045 811 1,054 921 SOx t 175 160 123 158 143 Amount of chlorofluorocarbons and halons recovered t 11 6 4 5 3 Soil generated by construction works (offsite emissions) 1,000m3 1,669 1,118 1,757 1,717 2,753 Construction waste 1,000t 1,980 1,687 1,228 1,633 2,236 Recycled amount and intermediate treatment amount 1,000t 1,950 1,646 1,213 1,614 2,220 Direct final disposal amount 1,000t 30 41 15 19 17 (Amount of which was asbestos) 1,000t 11 8 5 4 6

INPUT DATA OUTPUT DATA

*2 ■■Energy usage ■■CO2 emissions ¢ ¢ ¢ (X109 MJ) ¢ Worksite (civil engineering) ¢ Worksite (building construction) ¢ Offices (1,000 t-CO2) Worksite (civil engineering) Worksite (building construction) Offices ¢ Scope1 ¢ Scope2 ¢ Scope3 6 300 246 228 216 4.08 8 210 3.96 27 195 5 4 0.17 3.57 3.52 0.12 3.55 7 26 16 0.15 20 6 25 0.16 0.35 200 97 62 17 1.60 1.71 52 104 67 1.54 1.40 1.56 91 81 70 97 73 2 100 156 2.32 141 139 119 134 1.87 1.98 2.13 1.64 113 108 108 103 118 0 0 2008 2009 2010 2011 FY2012 2008 2009 2010 2011 FY2012

*1 Amount of green procurement items as component of main building materials used *2 Calculation of diesel oil for FY 2011 and previous fiscal years includes adjustment by subtraction of 20% for diesel oil equivalent of fats and oils

TAISEI CORPORATE REPORT 2013 DATA BOOK 12 Environmental Data

This presents data on activities for environmental preservation and creation through construction projects. Plan Items that involve independent assurance report (P20) are marked Effective Use of Resources with a checkmark symbol.

Waste recycling rate improvement and proper disposal Do ■■Emissions and recycling rate by construction waste category Unit: 1,000 t Civil Building construction Construction waste Total Recycling rate* engineering New construction Demolition Subtotal Concrete remnants 257 80 737 817 1,074 99.9% Asphalt and concrete remnants 64 27 24 51 116 99.9% Construction site sludge 309 385 11 396 705 — Mixed waste 12 42 6 48 59 75.4% Wood scrap 27 14 6 20 48 99.9% Metal scrap 2 76 38 114 116 100.0% Miscellaneous 35 55 29 84 119 79.2% Total 706 679 851 1,530 2,236 — ■■Construction waste treatment breakdown ■■Construction waste emissions (excluding sludge and portions of waste not originating in TAISEI) (1,000 t) ¢ Resource recovery amount ¢ Intermediate treatment amount ¢ Direct final disposal amount Sale of valuable materials, Figures in parentheses are amounts excluding sludge and portions of waste wide-area certification, on-site use, etc. Resource (1,000 t) not originating in TAISEI. 2,236 109 recovery 2,500 1,980 (1,522) amount Recycled (1,509) 1,687 17 Recycling facility 1,281 amount 2,000 1,633 666 435 30 (1,275) (14) 1,173 1,479 (17) (1,117) (227) (168) 41 1,228 19 1,500 329 498 ←みえるように調整してます。 Recycling (14) (828) (13) Intermediate (109) 15 (201) 197 treatment 1,000 334 (9) 1,515 (89) 1,554 1,413 amount Intermediate 1,317 (1,323) 879 1,116 (1,281) 227 treatment residue 500 (1,152) (903) Amount generated 1,522 30 Final disposal (730) amount 0 Contracted disposal amount Direct final disposal amount 14 43 2008 2009 2010 2011 FY2012 * KPIs P37 Operating on the Basis of Green Procurement Guidelines Do TAISEI has formulated Green Procurement Guidelines for the purpose of applying materials, equipment, and methods that have less environmental impact during the design, construction, and demolition of structures. Green procurement item categories are reviewed annually. TAISEI’s green procurement rate for fiscal 2012 was 30.6%*. One item (energy-saving electric toilet seats) was added to the 76 items in fiscal 2011, making 77 items. In fiscal 2012, 61 of these items were adopted in 65 construction design projects, and the number of items adopted per project came to 9.2 items. Meanwhile, the construction divisions have designated priority items, including ready-mixed concrete using blast- furnace cement, blast-furnace cement, recycled aggregate, slag aggregate, recycled steel (recycled reinforcing bars and steel frame), liquefied stabilized soil, high-efficiency fluorescent light fixtures, and environmentally-friendly thermal insulation. TAISEI is promoting introduction of these items to our construction sites.

■■Green procurement item adoption results from Eco-Sheet CASBEE Construction-related items Facility and equipment-related items Structural items Thermally insulated sashes and doors 26 Automatic water faucets 49 Recycled steel 31 Environmentally friendly thermal insulation 18 Western-style toilet bowls (water-saving type) 45 Blast-furnace cement 9 Ceramic tile 17 High-efficiency fluorescent light fixtures 42 High-strength concrete 9 Recycled vinyl flooring 14 Automatic flushing devices with built-in urinals (water-saving type) 42 Metal concrete form panels 7 Permeable pavement (including water retaining 10 LED light fixtures 42 Concrete frames 6 pavement) Electric heat-pump air-conditioning equipment (multi-unit 40 Ready-mixed concrete using blast-furnace cement 4 Recycled gypsum board 8 type for large buildings) Recycled aggregate 4 Recycled carpet tile 8 High-efficiency transformers 29 Fly ash cement 3 Sun control film 6 Solar power systems 13 Slag aggregate 2 Particle board 5 Stainless steel pipe 11 Ready-mixed concrete using fly ash cement 1 Lumber and lumber products (laminated wood, 5 Environmentally friendly street lighting 9 Eco-cement 1 plywood, laminated veneer lumber) Absorption chillers/heaters 7 Fly ash 1 Paving blocks made with recycled material (burned, 4 Lead-free electrical wire and cable 6 plain concrete (PC) products) Forms mixed with recycled material 1 Inert gas fire extinguishing equipment 5 Primer coating (multilayer anti-corrosion) 4 Stabilized soil recycled from construction sludge 1 High-efficiency gas water heaters 5 (liquefied stabilized soil) Building greening (roof greening) 4 High-efficiency ventilation equipment 5 Wall construction method using reduced-slurry soil 1 Building greening (wall greening) 4 Recycled polyvinyl chloride tubing for drainage and ventilation 3 cement columns in rows Wood-based cement boards 3 Cardboard ducts 3 Method for rebuilding the road surface 1 Recycled hot asphalt mixture 3 High-efficiency pumps 3 Highly solar reflective waterproofing 3 * Figures indicate the number of projects. Energy-saving electric toilet seats 3 Environmentally friendly flooring 2 EM (Eco-material) wires and cables 2 Low-volatility organic solvent-type water-based 2 coating for pavement marking Garbage disposal units 2 * KPIs P37 High solar reflective coating 1 Gas-engine heat-pump air-conditioners 2 Median blocks made of recycled plastic 1 Ice heat storage air conditioners 2 Solar heating systems 1

13 TAISEI CORPORATE REPORT 2013 DATA BOOK Preservation of Biodiversity and Environmental Preservation Activities Plan

Promote education for understanding of TAISEI involvement in biodiversity issues Do Conducted two biodiversity e-learning sessions for all employees with a response rate of over 90%. Promote environmental contribution activities Do Conducted activities that included helping create local green areas (Tokyo Greenship Action), helping create nest boxes for dormice, and Shinjuku cleanup activities (Zero Garbage Day), among others. Assisted Animal-pathway & Wildlife Association (a company) that was established to disseminate the results of animal pathway reseach. The TAISEI 1 Ton Club was launched in 2010 as an activity to purchase Kyoto carbon credits (CO2 emissions credits) based on the goal of cutting CO2 emissions. The Club was held again in 2012 based on the goal of carbon dioxide absorption, with employees giving donations to support preservation of the Kamaishi forest and tree planting activities in Borneo. A total of 747 employees donated to Kamaishi forest preservation activities and 675 to Borneo tree planting activities.

Respond to Environmental Risks Plan

Achieve zero environmental law violations ■ Do ■Percentages of findings categories (FY2012) by improving knowledge of related laws Waste Management Our worksite environmental patrols, which conduct and Public Cleansing in-house supervision regarding compliance with Education, Law 29% environmental laws and regulations at construction training, etc. Laws, Construction Material 32% sites, conducted a total of 1,214 patrols at 695 regulations, Industrial Safety and Recycling Act 6% etc. Health Act 3% Law for Promotion of construction sites throughout Japan. Patrol findings 55% Water Pollution Effective Utilization of are shown in the graph. We took correction and Worksite Control Act 2% Resources 5% plans Local regulations 2% prevention measures regarding the findings, and we 13% Ordinance on Prevention of are working continuously to make improvements. Health Impairment due to Off-road Act 2% Asbestos 2% Miscellaneous 4% Improve electronic manifest penetration rate Do In the interest of proper disposal of waste material, we are promoting the computerization of paper manifests to prevent mistaken entries and omissions from manifests by emitting business operators, collection and transport business operators, and disposal contractors. We achieved a penetration rate of 85.9%* (civil engineering 79.0%* and * construction 88.9% ) in fiscal 2012. * KPIs P37 Proper disposal and rigorous control of spray-on asbestos and construction materials Do containing asbestos We published a notice regarding measures to take in construction work that may cause dispersion of asbestos, and took measures to prevent dispersion of asbestos powder. In addition, we began work to store the results of preliminary surveys on asbestos in demolition and repair work for a period of 40 years.

Thoroughgoing implementation of proper disposal and control of contaminated soil Do On the real properties owned by TAISEI for marketing purposes, five surveys were conducted in fiscal 2012 on the basis of the Soil Contamination Countermeasures Act and other such statutes. There were two cases of countermeasure construction being implemented.

Complaints regarding construction sites and our responses Do The main complaints received from neighboring areas regarding environmental issues at the construction sites of all our branches during fiscal 2012 are as follows, with their content and response measures taken.

■■Breakdown of complaints to construction sites (FY 2012) Type % Content Response measures Noise 43 ●●Complaints about noise from construction work (such as work noise ●●Provide explanations and information to people in the area concerning the schedule from demolition, use of heavy machinery and generators, and of form and details of the construction work, make every effort to use low-noise, low-vibration placement). heavy equipment, and take noise reduction measures such as using sound-proof ●●Complaints about noise during pile driving. sheets. ●●Prohibit thrown placement of forms. ●●Adjust working hours to reduce the amount of work in the daytime producing intense noise. Vibration 14 ●●Complaints about vibration during use of heavy machinery and pile ●●Explain to nearby residents what work is being done and obtain their consent. Also, driving. take measures to reduce vibrations, such as switching to slightly smaller machines. Traffic 6 ●●Complaints about parking of construction vehicles. ●●Request remediation by the vehicle management companies and provide traffic safety obstruction ●●Complaints about reduced visibility of intersections due to temporary education. enclosures. ●●Change temporary enclosures to clear panels to increase visibility. Dust 4 ●●Complaints about dust from workyards. ●●Perform water-spraying. ●●Scattering of dust during work on existing connections. ●●Clean up workyards and nearby streets. Air 4 ●●Complaints about gas emissions from work vehicles. ●●Change the positioning and parking locations of the vehicles to reduce the impact of pollution gas emissions, and ensure thorough use of eco-driving, such as idling stop practice. Odors 3 ●●Complaints about burnt odors from asphalt waterproofing. ●●Explain to nearby residents what work is being done and obtain their consent. Also, ●●Complaints about paint odors and unusual odors from generators during take measures to reduce foul odors, such as ventilation with a blower fan. repair work. ●●Move generators and take measures, such as conducting work that produces foul odors during breaks.

TAISEI CORPORATE REPORT 2013 DATA BOOK 14 Environmental Data

Improve Environmental Technology Research and Development and Proposal-Making Capability Plan

Main Environmental Laws, Application of Research and Development Planning and Design Execution Operation, Renovation, Demolition Creation of New Business Regulations, Etc. Technology *1 EMS specifi es environmental laws, regulations, Planning and design are carried out to optimize environmental friendliness Noise, vibration, construction waste, and CO2 We engage in earthquake proofi ng to give building structures We engage in research and development of methods and We create new businesses in the environmental fi eld. etc. and meet client requirements based on grasp of circumstances at location emissions are limited as much as possible while longer lives, we extend the life of existing structures, and we technologies related to construction, and push the level of where construction business is undertaken as well as in surrounding area. performing construction work with speed and effi ciently demolish structures. technology up to practical application. ImpactItems Environmental certainty.

● Basic Environment Act ● Design energy-saving architectural structures ● Promote CO2 Zero Action, Eco Model projects ● General renovation work ● Use renewable energy ● Inter-seasonal ice storage air-conditioning system ● Kyoto Protocol · Super-Eco buildings ● Carbon Navios (system for projecting CO2 emissions · Extending building life, installing information · Mega-Solar power generation system ● Plant factory with inter-seasonal ice storage air- ● Kyoto Mechanism · T-Façade Air (thin double-skin system) during building construction) telecommunications capability, conversion to barrier free design, · Concentrated Solar power generation system conditioning system *6 ● Outline for Promotion of Efforts to Prevent · Eco-Sheet CASBEE (CO2 emissions) ● Application of energy-saving construction methods conversion to energy-saving design · Tidal current power generation system ● Vegetable plant (thin LED grow light unit) D Global Warming · Carbon Navigator (building CO2 emission planning system) · Continuous belt conveyor tunnel construction method ● Energy-saving renovation work · Geothermal utilization system ● Aquarium using artifi cial seawater ● Act on Promotion of Global Warming · T-SEEK (structure environmental performance evaluation system) · Harmonica method (large-section divided shield ● Energy management ● CO2 underground sequestration technology ● Methane hydrate gas leak monitoring Countermeasures ● Air conditioning and lighting equipment construction method) · T-Green BEMS ● Develop liquefi ed CO2 storage facilities ● CO2 underground sequestration (CO2 injection simulation, ● Kyoto Protocol Target Attainment Plan · T-Zone Saver (automatic ultra-energy-saving environment control system) · Upward shield construction method · T-Carbon Conductor ● Heat-recovering solar battery louvers CO2 transportation) ● Act on the Rational Use of Energy · T-Personal II (personal environment control technology) · PavingA using Visco-Mix (medium-temperature · T-Smart Monitor ● Light-modulating ceiling system ● Electric power stabilization by electric power storage ● Act on the Promotion of New Energy Usage · Geothermal air-conditioning system using cast-in-place piles compound material) ● Demand response technology*12 ● T-Smart Focus (next-generation human detection sensor) evaluation system (NaS battery*14) ● Urban Green Space Conservation Act · North Country Air Conditioning (eco-air-conditioning system for cold · Fiber-reinforced ferro concrete segments ● ESCO business*13 B, D ● Low-carbon city block and city simulator ● Distributed energy network technology (smart grid, smart ● Housing Quality Assurance Act climates) ● Improvement of transport methods ● Recovery and destruction of fl uorocarbons ● BIM and VR*7 coupled functionality city construction) ● Fluorocarbons Recovery and Destruction Act · T-Breeze Floor System (total fl oor-vented air-conditioning system) · Reduced transport distance ● Recovery of SF6 ● T-Site View (on-site panoramic photography system) ● Mega-Solar power generation system using the top of fi nal ● Tokyo Metropolitan Ordinance on · T-Soleil 100 (solar lighting system for tall buildings) · Education in fuel-economical driving (Eco-Drive) ● Mole navigator (underground location fi nding system using landfi ll site Environmental Preservation · Original TAISEI LED lighting · Modal shift (surplus soil, industrial waste) sound waves in the ground) ● Wind power generation ● Miscellaneous ● Reduce CO2 by shortening construction periods

Global Warming Prevention · Smart thermal/electrical storage system · Continuous long-distance boring by shield machine · DC powered offi ce with double bits · BIM and VR*7 coupled functionality ● Adopt energy-saving machines and equipment · Application of renewable energy (solar light, solar heat, wind power · Electric-powered backhoe, LED lighting, solar power generation, etc.) ● Use biodiesel fuel · CO2 underground sequestration simulation, CO2 underground sequestration- related facilities ● Basic Environment Act ● Zero emissions plans (3Rs of waste) ● Zero emission construction (3Rs of waste) ● Zero-emission demolition (3Rs of waste) ● TAISEI super concrete ● Business of improving and operating fi nal disposal sites ● The Basic Act for Establishing a Sound · Eco-Sheet CASBEE (green procurement) · Designated worksite with implementation of zero- ● Conversion (technology to change use of building) ● T-POP construction method (ultra-light long-span precast through PFI, DBO*15 Material-Cycle Society ● Long-life design (develop materials, construction methods) emissions priority ● Renovation (improving the performance of buildings) concrete beam) ● Business of restoring fi nal waste disposal sites ● Law for Promotion of Effective Utilization of · T-RESPO construction method (long-period ground motion countermeasure · E-DAM (environmental data management system) ● Life-extending repair ● Reuse demolished concrete as aggregate ● Business of carbonizing and recycling city waste through Resources technology) · Recycle wood building materials generated by · Earthquake resistance, base isolation, seismic vibration control ● Use tree cuttings for charcoal, compost PFI ● Construction Material Recycling Act · TASMO (next-generation intelligent seismic control*8 system) construction · Use of ground fl ex mole method (fl exible boring) for anti-seismic ● Use dehydrated cake produced after chitosan fl occulant ● Biogas fermentation of domestic animal waste, garbage, ● Law on Promoting Green Purchasing · T-Grid, T.G-WALL, T.T-WALL · Use tree cuttings for mulch, compost, charcoal reinforcement of tank conforming to old law treatment for planting base and use for electric power generation ● Waste Management and Public Cleansing · TASS-fl oor (3D fl oor base isolation system) · Effective use of soil generated by construction (soil · Embankment structure anti-seismic reinforcement method ● Produce ethanol from rice straw ● Methane fermentation without dilution by water Law · TASS unit (equipment seismic isolation system for production facilities) stabilization material, etc.) · Anti-seismic reinforcementF by Post-Head-bar (retrofi tted steel ● Act on Sophisticated Methods of Energy · Automatic warehouse rack vibration control system · Construction method using reduced-slurry soil bar reinforcement against shear) Supply Structure · T-RESQF (earthquake emergency management system for production cement columns in rows ● Pipe refreshing method (restoration of marine pipes) facilities) ● Resource-saving ● Measures against liquefaction of existing facilities with the · Ultra high-strength concrete construction planning technology · Precasting ultra high-strength concrete groundwater level lowering method · TAS-Fine (ultra high-strength thin RC columns) · Ultra high-strength concrete with 300 N compressive ● Measures against liquefaction of existing facilities with the · Ductal ultra high-strength fi ber-reinforced concrete (UFC) strength WinBLADE method (improved soil mixing method by opening · T-Feels (TAISEI Eco-material comprehensive evaluation system) · Fc 200N precast column application impellers in the ground) ● Resource-saving · nePre (structures made of precast ferro concrete)C ● Effi cient use of concrete debris · Eco-friendly concrete · Reuse of existing pilings during building

Establishing a Recycling Society · T-POP construction method (ultra-light long-span precast concrete beam) reconstruction · CFT construction method (steel-frame construction method using concrete- · Green procurement (fl y ash concrete, etc.) fi lled steel tubes for columns) · LNG tank dual PC dike · Corrugated air duct (eco-air-conditioning duct made of high-performance corrugated cardboard) · TAS-Clean (Clean room air-conditioning unit) · Data center construction with cooling by introduction of outside air · T-Flexible Clean room, T-Smart Clean room ● Basic Environment Act ● Ecological Planning ● Rooftop greening, wall greening, rooftop vegetable ● Relocation and preservation of historic buildings ● Ecosystem survey following biotope construction ● Aquatic environment restoration ● Basic Act on Biodiversity ● Landscape design (landscape planning, planning and design of building gardensE ● Inherit and develop local culture ● Greening plan based on cluster analysis ● Restoration of tidal fl ats and Zostera beds ● Act on the Promotion of Nature Restoration greening) ● Friendly to raptors and other rare organisms ● Conservation of cultural assets ● Technology for spraying local wild grasses ● Placement and promotion of animal pathways on existing ● Nature Conservation Act ● Planning for harmony with the environment, ecosystem conservation ● Transplant rare plants ● Forest saver project ● Purifi cation system using adsorbent and aquatic plants roads ● Natural Parks Act ● Mitigation, biotope ● Turbid water treatment system using chitosan ● Forest restoration ● National Biodiversity Strategy of Japan ● Nature-friendly greening, green space ecology planning fl occulantF 2012-2020 ● Natural environment conservation and disaster mitigation design method ● Local forest creation ● Act on Conservation of Endangered Species using GIS*9 ● Bottom sediment purifi cation method of Wild Fauna and Flora ● Wetland environment impact assessment ● Invasive Alien Species Act ● Wetland environment restoration ● Urban Green Space Conservation Act ● Water purifi cation using high-density oxygen water ● Forest Act ● Simplifi ed biodiversity assessment tool*10 Preservation of Biodiversity ● Wildlife Protection and Proper Hunting Act ● Landscape Act ● Basic Environment Act ● Environmental Assessment ● Environmentally Friendly Construction ● Environmentally friendly demolition planning ● Local environment assessment system ● Drinking water business ● Vibration Control Act ● T-Heats (heat island countermeasure analysis and evaluation system) ● Automatic noise and vibration monitoring system ● TECOREP system (environmentally friendly method for demolition ● Vibration analysis system ● Sewerage Act ● Low-carbon city block simulator ● Temporary enclosure greening (green curtain, water of very tall buildings) ● Forecasting fl oods from localized severe rainstorms ● Act on Regulation, Etc. of Emissions From ● TSounds (comprehensive noise prediction system) curtain) ● Low-noise, low-vibration work method using wire saw ● Water purifi cation system using photocatalytic air purifi er Non-road Special Motor Vehicles ● T-Diff (air pollution prediction and evaluation system) ● Water retaining pavement technology with water ● Laser non-slip work method ● Air Pollution Control Act ● TWinds-II (building wind prediction and evaluation system) supply functionality (cool road)A ● Environmental Impact Assessment Act ● Low-maintenance rooftop greening system using TEPSAM greening ● Underground water reservoir construction methodA ● Act on Prevention of Marine Pollution and foundation ● UD-HOMET construction method (low-noise, low- Maritime Disaster ● TEPSAM Cool Wall (high-tech water sprinkling system) vibration construction method) ● Water Pollution Control Act ● Closed system disposal site ● Large-diameter curved pipe roof method ● Noise Regulation Act ● Application of photocatalytic air purifi er in ● NOx*2/PM*3 Act underground construction ● River Act ● ICT-based management technology for dam Local Environmental Issues ● Purifi cation Tank Act construction (4D-DIS) ● Unmanned construction equipment system ● Tunnel blasting noise reduction system ● Basic Environment Act ● Remediation of contaminated soil (volatile organic compounds, petroleum, ● Remediation of contaminated soil (volatile organic ● Remediation of contaminated soil (volatile organic compounds, ● Soil and groundwater remediation ● Indoor air pollution prevention ● Soil Contamination Countermeasures Act heavy metals, PCBs, dioxins, etc.) compounds, petroleum, heavy metals, PCBs, dioxins, petroleum, heavy metals, PCBs, dioxins, etc.), in situ remediation ● Sick house countermeasures ● In-situ remediation of soil contaminated with benzene/ ● Act on Special Measures Concerning Dioxins ● Groundwater remediation etc.), in-situ remediation ● Asbestos countermeasures ● Robot to remove spray-on asbestos cyanogen activating microorganisms ● Law Concerning Special Measures Against ● Healthful housing plans · Water injection bio-sparging method · Robot to remove spray-on asbestos inside elevator shafts ● On-site asbestos abatement detoxifi cation system PCB*4 Waste ● Soil remediation double-cap insurance · Biodegradation method · Asbestos removal in subways using specialized wagon ● Radiation decontamination ● Building Standards Act ● Radiation decontamination · Soil remediation methodF ● Incinerator demolition system compliant with laws ● Ordinance on Prevention of Health ● Groundwater remediation ● Proper storage of PCBs Impairment due to Asbestos · Permeable purifying barrier (Multi-barrier) methodF ● Radiation decontamination ● PRTR*5 Law ● Guidance regarding MSDS*11

Hazardous SubstancesHazardous ● Law Concerning Special Measures Against ● Radiation decontamination Contamination by Radioactive Materials

*1 Environmental management system *2 Nitrogen oxides *3 Particulate matter *4 Polychlorinated biphenyls *5 Pollutant release and transfer register *6 Comprehensive Assessment System for Building Environment Effi ciency *7 BIM: building information model; VR: virtual reality (both 3D technologies) *8 Commonly referred to as “vibration damping” because it addresses vibration from wind-induced motion. Here, where it specifi cally refers to seismic motion, it is referred to as “seismic control” to make it more readily understood. 15 TAISEI CORPORATE REPORT 2013 DATA BOOK Environmental Hazardous Substances Local Environmental Issues Preservation of Biodiversity Establishing a Recycling Society Global Warming Prevention Impact Items ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● EMS etc.

Contamination by MaterialsRadioactive Against Measures Special Concerning Law PRTR Asbestos to due Impairment Health of Prevention on Ordinance Act Standards Building PCB Against Measures Special Concerning Law Dioxins Concerning Measures Special on Act Soil Contamination Countermeasures Act Act Environment Basic PurifiAct Tank cation Act River NOx Act Regulation Noise Act Control Pollution Water Disaster Maritime and Pollution Marine of Prevention on Act Act Assessment Impact Environmental Act Control Pollution Air Vehicles Motor Special Non-road From Emissions of Etc. Regulation, on Act Act Sewerage Act Control Vibration Act Environment Basic Act Landscape Act Hunting Proper and Protection Wildlife Act Forest Act Conservation Space Green Urban Act Species Alien Invasive Flora and Fauna Wild of Species Endangered of Conservation on Act 2012-2020 Japan of Strategy Biodiversity National Act Parks Natural Nature Conservation Act Restoration Nature of Promotion the on Act Biodiversity on Act Basic Act Environment Basic Supply Structure Energy of Methods Sophisticated on Act Law Cleansing Public and Management Waste Purchasing Green Promoting on Law Act Recycling Material Construction Resources of Utilization Effective of Promotion for Law Material-Cycle Society aSound Establishing for Act Basic The Act Environment Basic Environmental Preservation on Ordinance Metropolitan Tokyo Act Destruction and Recovery Fluorocarbons Act Assurance Quality Housing Act Conservation Space Green Urban Usage Energy New of Promotion the on Act Energy of Use Rational the on Act Plan Attainment Target Protocol Kyoto Countermeasures Warming Global of Promotion on Act Warming Global Prevent to Efforts of Promotion for Outline Mechanism Kyoto Kyoto Protocol Act Environment Basic *1 specifies environmental laws,regulations, *4 *2 *5 Waste Main Environmental Laws, Laws, Environmental Main /PM Law *3 Act Regulations, Etc. ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● where construction business is undertaken as well as in surrounding area. surrounding in as well as undertaken is business construction where on at based grasp of location circumstances and client meet requirements Planning and design are carried out to optimize environmental friendliness

· · · · · · · · · · · · Radiation decontamination Soil remediationinsurance double-cap plans housing Healthful Groundwater remediation etc.) dioxins, PCBs, metals, heavy petroleum, compounds, organic (volatile soil contaminated of Remediation site disposal system Closed system) sprinkling water (high-tech Wall Cool TEPSAM foundation greening TEPSAM using system greening rooftop Low-maintenance system) evaluation and prediction wind (building TWinds-II system) evaluation and prediction pollution (air T-Diff system) prediction noise (comprehensive TSounds simulator block city Low-carbon system) evaluation and analysis countermeasure island (heat T-Heats Assessment Environmental tool assessment Simplifibiodiversity ed water oxygen high-density purifiusing Water cation Wetland environment restoration assessment impact environment Wetland GIS using method design mitigation disaster and conservation environment Natural planning ecology space green greening, Nature-friendly Mitigation, biotope conservation ecosystem environment, the with harmony for Planning greening) building of design and planning planning, (landscape design Landscape Planning Ecological · · · · · · · Resource-saving · · methods) construction materials, (develop design Long-life · waste) of (3Rs plans emissions Zero · · · Miscellaneous · · · · · · · equipment lighting and conditioning Air · · · structures architectural energy-saving Design ·

CO generation, etc.) power wind heat, solar light, (solar energy renewable of Application T-SEEK (structure environmental performance evaluation system) evaluation performance environmental (structure T-SEEK T-Feels (TAISEI Eco-material comprehensive evaluation system) evaluation comprehensive Eco-material (TAISEI T-Feels (UFC) concrete fi ber-reinforced high-strength ultra Ductal columns) RC thin high-strength (ultra TAS-Fine technology planning construction concrete high-strength Ultra facilities) production for system management emergency (earthquake T-RESQF system control vibration rack warehouse Automatic facilities) production for system isolation seismic (equipment unit TASS system) TASS-fl (3D oor isolation base oor fl T.T-WALL T.G-WALL, T-Grid, T-Flexible Clean room, T-Smart Clean room Clean T-Smart room, Clean T-Flexible air outside of introduction by cooling with construction center Data unit) air-conditioning room (Clean TAS-Clean corrugated cardboard) high-performance of made duct (eco-air-conditioning duct air Corrugated columns) for fi tubes concrete- using steel lled method construction (steel-frame method construction CFT beam) concrete precast long-span (ultra-light method construction T-POP Eco-friendly concrete control seismic intelligent (next-generation TASMO technology) countermeasure motion ground (long-period method construction T-RESPO procurement) (green CASBEE Eco-Sheet VR and BIM offi powered ce DC system storage thermal/electrical Smart lighting LED TAISEI Original buildings) tall for system lighting (solar 100 T-Soleil system) flair-conditioning (total System oor-vented Floor T-Breeze climates) cold for system (eco-air-conditioning Conditioning Air Country North piles cast-in-place using system air-conditioning Geothermal technology) control environment (personal II T-Personal system) control environment ultra-energy-saving (automatic Saver T-Zone CASBEE Eco-Sheet system) double-skin (thin Air T-Façade buildings Super-Eco related facilities Carbon Navigator (building CO (building Navigator Carbon 2 underground sequestration simulation, CO simulation, sequestration underground *9 *7 coupled functionality coupled *6 (CO Planning and Design and Planning 2 emissions) 2 emission planning system) planning emission *10 2 underground sequestration- *8 system) Noise, vibration, construction waste, and CO and waste, construction vibration, Noise, ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● certainty. and speed with work construction performing while possible as much as limited are emissions

· during building construction) · · · Radiation decontamination MSDS regarding Guidance · Groundwater remediation · · · remediation in-situ etc.), dioxins, PCBs, metals, heavy petroleum, compounds, organic (volatile soil contaminated of Remediation system reduction noise blasting Tunnel system equipment construction Unmanned construction (4D-DIS) dam for technology management ICT-based underground construction purifi air in er photocatalytic of Application method roof pipe curved Large-diameter vibration construction method) low- (low-noise, method construction UD-HOMET method construction reservoir water Underground road) (cool functionality supply water with technology pavement retaining Water curtain) water curtain, (green greening enclosure Temporary system monitoring vibration and noise Automatic Environmentally Friendly Construction purifimethod cation sediment Bottom creation forest Local flocculant chitosan using system treatment water Turbid Transplant rare plants organisms rare other and raptors to Friendly gardens vegetable rooftop greening, wall greening, Rooftop · · · · Resource-saving · · · · · · waste) of (3Rs construction emission Zero fuel biodiesel Use · equipment and machines energy-saving Adopt CO Reduce · · · Improvement of methods transport · · · · methods construction energy-saving of Application CO projecting for (system Navios Carbon CO Promote ·

Fiber-reinforced ferro concrete segments concrete ferro Fiber-reinforced compound material) LNG tank dual PC dike PC dual tank LNG etc.) (fl concrete, ash y procurement Green reconstruction building during pilings existing of Reuse Permeable purifying barrier (Multi-barrier) methodF (Multi-barrier) barrier purifying Permeable method remediation Soil Biodegradation method method bio-sparging injection Water concrete) ferro precast of made (structures nePre application column precast 200N Fc strength Ncompressive 300 with concrete high-strength Ultra concrete high-strength ultra Precasting rows in columns cement soil reduced-slurry using method Construction etc.) material, stabilization (soil construction by generated soil of use Effective charcoal compost, mulch, for cuttings tree Use construction by generated materials building wood Recycle system) management data (environmental E-DAM emissions priority zero- of implementation with worksite Designated power solar lighting, LED backhoe, Electric-powered waste) industrial soil, (surplus shift Modal (Eco-Drive) driving fuel-economical in Education distance transport Reduced Paving Upward shield construction method construction method) shield divided (large-section method Harmonica method construction tunnel conveyor belt Continuous with double bits double with machine shield by boring long-distance Continuous A E using Visco-Mix (medium-temperature (medium-temperature Visco-Mix using F 2 by shortening construction periods construction shortening by 2 Zero Action, Eco Model projects Model Eco Action, Zero F Execution *11 A 2 emissions emissions 2

C A *15 A business method similar to the private fi nance initiative (PFI) in which the public sector takes on fund-raising and contracts design, construction, and operation to the private sector. private the to operation and construction, design, contracts and batteries fund-raising on takes *14 Sodium-sulfur sector public management. the and which in maintenance, (PFI) fi facilities, private of initiative the to nance similar provision method *15 proposals, Abusiness energy-saving including services demand. comprehensive and supply providing *13 visit. Business between abalance potentially may that achieve to demand organisms the energy the showing by varies that *12 Asystem sheet biodiversity data considers safety that *11 aspace Material creating of effects *10 Assesses system information Geographic *9 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● effi ciently demolish we structures. and structures, existing of life the extend we lives, longer structures proofibuilding give to ng earthquake in engage We

Radiation decontamination PCBs of storage Proper laws with compliant system demolition Incinerator · · countermeasures Asbestos remediation situ in etc.), dioxins, PCBs, metals, heavy petroleum, compounds, organic (volatile soil contaminated of Remediation method work non-slip Laser saw wire using method work low-vibration Low-noise, buildings) tall very of demolition for method friendly (environmentally system TECOREP planning demolition friendly Environmentally Forest restoration project saver Forest assets cultural of Conservation culture local develop and Inherit buildings historic of preservation and Relocation debris Efficoncrete of use cient ground) the in impellers opening by method mixing soil (improved method WinBLADE the with facilities existing of liquefaction against Measures groundwater level lowering method the with facilities existing of liquefaction against Measures pipes) marine of (restoration method refreshing Pipe · · · · repair Life-extending buildings) of performance the (improving Renovation building) of use change to (technology Conversion waste) of (3Rs demolition Zero-emission SF6 of Recovery fl of uorocarbons destruction and Recovery business ESCO technology response Demand · · · Energy management Energy-saving renovation work · General renovation work

bar reinforcement against shear) Asbestos removal in subways using specialized wagon specialized using subways in removal Asbestos shafts elevator inside asbestos spray-on remove to Robot reinforcement Anti-seismic method reinforcement anti-seismic structure Embankment law old to conforming tank of reinforcement anti-seismic for (fl fl boring) ground of method Use exible mole ex control vibration seismic isolation, base resistance, Earthquake Monitor T-Smart T-Carbon Conductor BEMS T-Green design energy-saving to conversion design, free barrier to conversion capability, telecommunications information installing life, building Extending Operation, Renovation, Demolition A : Taisei Rotec Corporation; B Corporation; Rotec : Taisei *13 B, D B, F by Post-Head-bar (retrofi tted steel steel (retrofi tted Post-Head-bar by *12 D : Taisei-Yuraku Real Estate Co., Ltd.; C Ltd.; Co., Estate Real : Taisei-Yuraku technology up to practical application. of level the push and construction, to related technologies and methods of development and research in engage We ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Radiation decontamination system detoxifi cation abatement asbestos On-site asbestos spray-on remove to Robot countermeasures house Sick Soil and groundwater remediation purifi air er photocatalytic using purifisystem Water cation rainstorms severe fllocalized from oods Forecasting system analysis Vibration system assessment environment Local plants aquatic and adsorbent using Purifisystem cation grasses wild local spraying for Technology analysis cluster on based plan Greening construction biotope following survey Ecosystem straw rice from ethanol Produce base planting for treatment fl chitosan occulant after produced cake dehydrated Use compost charcoal, for cuttings tree Use aggregate as concrete demolished Reuse beam) concrete precast long-span (ultra-light method construction T-POP concrete super TAISEI ground) the in waves sound fiusing system location nding (underground navigator Mole system) photography panoramic (on-site View T-Site VR and BIM simulator city and block city Low-carbon sensor) detection human (next-generation Focus T-Smart system ceiling Light-modulating Heat-recovering solarlouvers battery liquefied CO Develop CO · · · · Use renewable energy

Geothermal utilization system utilization Geothermal system generation power current Tidal Concentrated Solar power generation system system generation power Mega-Solar Application of Research and Development Development and Research of Application 2 underground sequestration technology : Taisei U-LEC Co., Ltd.; D Ltd.; Co., U-LEC : Taisei *7 coupled functionality coupled 2 storage facilities storage Technology : Taisei Setsubi Co., Ltd.; E Ltd.; Co., Setsubi : Taisei : Taisei Housing Corporation; F Corporation; Housing : Taisei We create new businesses in the environmental fi eld. ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Methane fermentation without dilution by water by dilution without fermentation Methane generation power electric for use and garbage, waste, animal domestic of fermentation Biogas PFI through waste city recycling and carbonizing of Business sites fidisposal restoring of waste nal Business DBO PFI, through fi sites operating disposal and nal improving of Business Wind power generation landfisite ll fi of top the using nal system generation power Mega-Solar city construction) smart grid, (smart technology network energy Distributed battery (NaS system evaluation storage power electric by stabilization power Electric CO monitoring leak gas hydrate Methane artifiseawater using cial Aquarium unit) light grow LED (thin plant Vegetable conditioning system air- storage ice inter-seasonal with factory Plant system air-conditioning storage ice Inter-seasonal cyanogen activating microorganismscyanogen benzene/ with contaminated soil of remediation In-situ prevention pollution air Indoor business water Drinking roads existing on pathways animal of promotion and Placement flbeds tidal of Zostera and ats Restoration Aquatic environment restoration CO 2 2 transportation) underground sequestration (CO Creation of New Business New of Creation *15 TAISEI CORPORATE REPORT 2013 DATA REPORT TAISEI BOOK CORPORATE : Seiwa Renewal Works Co., Ltd. Co., Works Renewal : Seiwa *14 ) 2 injection simulation,injection * (As of April 1, 2013) April of (As

KPIs

P37 16 Environmental Data

Comprehensive Environmental Activities Plan

Implementation of Eco-Model Projects Do Expansion of Eco-Model Projects Do • Recipient of 2 Awards from the Minister of Land, Overseas Infrastructure, Transport and Tourism for Promoting In fi scal 2012, we attempted Reduce, Reuse, Recycle Activities expanding Eco-Model Projects to The Midosuji shield construction site (Eco-Model overseas locations. Projects site, Osaka) and Keisei Sugano construction In Taiwan, we calculated the amount of site (Chiba) each received an award from the Minister CO2 emissions at one civil engineering of Land, Infrastructure, Transport and Tourism for site, three building construction sites, Promoting Reduce, Reuse, Recycle Activities given and the offi ce and discovered that the total amount of for active implementation of the three R’s (reducing, emissions was approximately 40,000 tons. reusing, and recycling) and ongoing activities. The Midosuji shield construction site was Assessing the Environmental Load Do recognized for its ingenious 3R activities utilizing the Throughout the Supply Chain unique materials and facilities of shield tunnels and In fi scal 2012, we joined the CDP Supply Chain Program activities to reduce CO2 emissions. The Keisei Sugano construction site was recognized for its activities to hosted by CDP, an internationally recognized authority (British NGO). This program involves assessing the reduce CO2 emissions by solar power generation and reduction in sludge production using the CRM volume of carbon dioxide emissions (GHG Protocol, (Continuous Walls Using Recycled Mud) method. Scope 3) related to TAISEI’s business activities at domestic and overseas business partner companies.

TAISEI Group Environmental Data Promoting Environmental Management in whole TAISEI Group We analyze material data from seven group companies participating in the TAISEI Group Environmental Action Meeting, including Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., Taisei U-LEC Co., Ltd., Taisei Setsubi Co., Ltd., Taisei Housing Corporation and Seiwa Renewal Works Co., Ltd., and collaborate with them to reduce CO2 emissions and industrial waste as well as save energy. As a fi ve-year plan starting in fi scal 2012, we have also begun work to standardize environmental data collection methods. We are aiming for independent assurance in fi scal 2016. Material Flow Group Companies INPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 Energy Consumption: Total 106MJ 1,775 1,788 1,649 1,762 1,743 Worksites 106MJ 289 290 255 300 279 Factories 106MJ 1,321 1,327 1,232 1,311 1,302 O f fi c e s 106MJ 165 172 162 152 162 Fossil Fuel Consumption: Total 1,000kℓ 31 31 28 29 30 Light oil 1,000kℓ 9 8 8 9 8 Kerosene 1,000kℓ 3 3 3 3 2 Heavy oil 1,000kℓ 18 18 15 17 17 Gasoline 1,000kℓ 2 2 2 1 3 Power Consumption: Total 106kWh 45 46 46 44 45 Worksites 106kWh 1 1 1 1 1 Factories 106kWh 34 35 35 35 35 O f fi c e s 106kWh 10 11 10 8 9 City gas 10m3 3,380 2,900 2,590 3,190 2,853 LPG t 198 133 145 150 133 Water 10m3 170 140 200 100 105

OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012 2 CO2 Emissions: Total 1,000t-CO 109 107 99 107 107 Worksites 1,000t-CO2 20 19 17 20 18 Factories 1,000t-CO2 81 80 74 78 81 O f fi c e s 1,000t-CO2 9 8 8 8 8 Industrial waste: Total 1,000t 299 343 354 437 278 Waste recycled 1,000t 293 334 338 423 267 Final waste disposal 1,000t 6 9 16 14 11

Message from an Environmental Manager Yoshiya Kanmuri, Head of the Environmental Safety Department, Taisei U-LEC Co., Ltd. The PC (precast concrete) construction method is an eco-friendly method that uses fewer concrete forms and construction vehicles than previous methods. Our company, that is a pioneer in industrialized residential construction using the PC method, will celebrate 50 years in business this coming August. With the strong determination of the management executives, we successfully used the PC method to reduce gas usage rate by 50%, carbon dioxide rate by 45%, electric power usage by 30%, and industrial waste production by 40% over the past fi ve years. Going forward, we will continue to expand into new technology markets and strive to even further reduce the environmental load.

17 TAISEI CORPORATE REPORT 2013 DATA BOOK Environmental Accounting Do

Value of construction work and sales (Fiscal 2012) (Millions of yen) Civil engineering Building construction Development projects, etc.* Value of construction work 199,572 768,009 — TAISEI Corporation (Japan) Sales 204,377 760,314 32,500 *Environmental data for development projects is taken from head office and branch offices and has been included in “Office” below

Environmental preservation costs (Millions of yen) Fiscal 2012 Classification Details of Major Initiatives Investment Cost Total Year-on- Civil Building Year-on- Year Engineering construction Office Total Year 1. Environmental Preservation Costs by Business Area — — 6,066 9,839 31 15,935 1,233 (1) Pollution prevention ●●Costs to prevent air pollution, water contamination, noise and — — 642 213 21 876 –535 costs vibration caused by temporary work at construction sites (2) Environmental ●●Costs to recover CFCs and halons, and in purchasing green electricity — — 1 23 4 28 12 Preservation costs (3) Resource recycling ●●Waste disposal costs at construction sites, etc., recycling costs, and — — 5,422 9,604 6 15,031 1,756 costs recovery and disposal costs for asbestos and PCB 2. Upstream and ●●Personnel and management expenses incurred in taking the — — 0 0 1,060 1,060 –151 downstream costs environment into account in design and engineering 3. Administrative ●●Personnel, training and review costs related to EMS, costs for greening — — 40 17 1,016 1,074 –428 costs around construction sites, regional cooperation, etc. 4. R&D costs ●●Personnel and management expenses for environment-related R&D 32 0 0 0 1,532 1,532 –327 5. Social activity costs ●●Donations to environmental NGOs, etc. — — 0 0 66 66 61 ●●Soil survey and clean-up costs for Company property up for sale 6. Environmental (¥27.6 million), as well as cost of repairing land subsidence, roads and — — 0 3 28 31 3 remediation costs neighboring areas (¥600,000) Total environmental 32 — 6,106 9,860 3,732 19,697 390 preservation costs

Environmental preservation benefits Type of Environmental Fiscal 2012 Environmental Performance Indicator Unit Preservation Benefit Civil Engineering Building construction Office Total Year-on-Year ●●Power Million kWh 56 58 29 143 –18 Environmental preservation ●●Light oil kℓ 28 25 — 53 –60,816 benefits related to resources ●●Kerosene kℓ 0.3 0.5 — 0.8 –1,199 invested in business activities ●●City gas 1,000m3 — — 150 150 65 ●●Water 1,000m3 884 696 83 1,663 –1,400

●●CO2 emissions 1,000t-CO2 103 97 16 216 –12 Environmental preservation ●●NOx emissions t 480 441 — 921 –214 benefits related to environmental ●●SOx emissions t 77 66 — 143 –271 impact and waste generated from ●●Construction waste 1,000t 706 1,530 — 2,236 603 business operations ●●Construction soil generated 1,000m3 2,113 640 — 2,753 1,036 (amount removed from construction site) Environmental preservation benefits ●●Estimated annual CO2 reduction in related to goods and services t-CO2 — 20,634 — 20,634 –1,996 operations (effect of eco-friendly design) produced by business operations* * Compared to the 1990 level for buildings to which the Law Concerning the Rational Use of Energy applies; projected emissions are calculated using the CASBEE eco-sheet

Economic effects of environmental preservation measures (Millions of yen) Economic Effects of Environmental Total Preservation Measures Profit ●●Recycling of waste generated in main business operations 232 ●●Savings in energy costs in offices due to energy conservation –15 Economic effects of environmental ●●Savings in energy costs at construction sites –404 preservation measures (Actual effects) Cost savings ●●Savings in waste disposal costs through resource conservation and –2,124 recycling Economic effects produced by environmental Reduction in environmental 4 preservation measures (Estimated effects) impact in monetary terms

■■Proportion of environmental R&D ■■Environmental impact ratio ■■Environmental efficiency costs to total R&D costs *Only TAISEI-derived impact

(%) (Environmental R&D costs / Total R&D costs) (kg/¥1 million) (Amount of direct final disposal / (¥1 million/t-CO2) (Sales/ CO2 emissions Value of construction work) (construction sites and offices)) 25 20 17 6 22.4 15 15 4.4 4.4 4.5 21.7 14 4.2 4.1 21.2 15 11 4 20.0 20 19.0 10 2 5

0 0 0 2008 2009 2010 2011 FY2012 2008 2009 2010 2011 FY2012 2008 2009 2010 2011 FY2012

TAISEI CORPORATE REPORT 2013 DATA BOOK 18 Environmental Data

Environmental Topics & Environment-related External Evaluation Environmental chronology Date Environment-related Topic New administrative employees participated in an environment and social contribution activity to create local green 2012 April areas Selected as a Ministry of the Environment Eco First Company Received the Chairman’s Award from the Japan Construction Machinery and Construction Association for the TECOREP May system Co-sponsored the Japan Pavilion at the United Nations Conference on Sustainable Development (Rio+20) Began a plan to expand the Technology Center to create a safe, secure, and comfortable space Worked to expand and implement the “Goya de eco” project nationwide (Association of Subcontractors for Health, June Safety, and the Environment) Signed a business collaboration agreement for decontamination work with CH2M HILL, a company with vast experience in decontamination and facility dismantling in American nuclear complexes Successfully created ultra-high-strength CFT columns made of 780N/mm2 steel and Fc150N/mm2 concrete Employees participated in a volunteer activity to create local green areas with the aim of coexisting with the July environment Received the Japan Environmental Management Grand Prize for renovation work at Waseda Setsuryo Junior High School and High School (Host: Japan Environmental Management Grand Prize Awards Committee, Mie prefecture). September Exhibited at the Radioactive Decontamination & Radioactive Waste Disposal International Exhibition Exhibited at the Exhibition for Geo-Environmental Restoration General Manager of the Environment Division gave a lecture at United Nations University for the CDP 2012 Debriefi ng October Employees participated in a volunteer activity to create local green areas with the aim of coexisting with the environment Received an award from the Japan Committee for United Nations Decade on Biodiversity for the project to create local green areas November Designed and constructed a ‘disaster mitigation’ refrigerator-freezer facility in preparation for a tsunami December Exhibited at Eco Products 2012 Held an Exhibition to Commemorate the 140th Anniversary, “Passing the torch to the future” 2013 January Started testing energy control technology in a Smart City Implemented the TAISEI 1 Ton Club to support preservation of the Kamaishi forest and tree planting activities in Borneo Received authorization from the Minister for Eco-friendly high-strength concrete Supported the Gratitude-to Borneo Project — Helped build a rescue center, helped install vending machines with a donation function, and assisted in a lecture February meeting by Gen Bando, Director of the Asahikawa City Asahiyama Zoo — Received commendation from the Japan Federation of Construction Contractors for Pollution Control Measures and Recycling and Proper Disposal of Construction Byproducts — Kyushu Branch TAISEI JV Chiwata Tunnel Site — March Held volunteer project to create nest boxes for dormice

Environment-related external evaluation

Recipient of the Watt Sense Award Recipient of Excellence Award in the Eco Products TAISEI was recognized for the Awards “CO2 Zero Action” and the “Eco- We received an Excellence Award for Energy-Saving Model Projects” CO2 reduction Product in the 9th Eco Products Awards for the Smart activities in construction sites, and DC Offi ce, a system for powering offi ces in buildings received an award of excellence in with DC power that is being tested in the Yokohama the action category in the Watt Smart City Project (YSCP). Sense Awards sponsored by the Ministry of the Environment Named High CDP Disclosure Leader Company for being a company with Selected as a company with outstanding disclosure for outstanding initiatives concerning the third consecutive years. power conservation and effective use of energy. Nikkei Environment Management Survey Company Ranking Ranked second in the construction division.

TAISEI gained approval in the Ministry of the Environment Eco First System

19 TAISEI CORPORATE REPORT 2013 DATA BOOK Independent Assurance Report

TAISEI CORPORATE REPORT 2013 DATA BOOK 20 Social Data

Consumer Issues

Plan (Overall Principles of The TAISEI Group aims to contribute to society as a whole and to develop sustainably as a corporate group. Conduct) For such purposes, we will continue to provide our customers and society as a whole with ensured quality Basic Conceptual Approaches in our products and services as well as such technologies as necessary for the resolution of social issues. (1) Expand TAISEI QUALITY activities (Overall Management • Strengthening of initiatives and Perspective) (2) Develop and provide technologies, such as base expansion of business fields to create Mid-Term Business Plan and isolation and vibration control, that help resolve the high added value Business Issues problems facing society

Plan Do Main Issues and Main Initiative Items (FY2012) Objectives (FY2012) Main KPIs* (Key Performance Indicators) Pages ● Quality Control and Customer ● Establishment and observance of quality ● Customer satisfaction surveys P38 Satisfaction Improvement management standards and procedures ● Number of patent applications fi led and granted ● Development and provision of ● Amount of media coverage of development of technologies for resolving social issues technologies/Projects in which technologies P38 were applied

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 38.

Quality Control and Customer Satisfaction Improvement Plan

Establishment and observance of quality Do ➊ Developing human resources that support quality management standards and procedures On the job training is provided to young employees in the Providing high quality construction products and related Civil Engineering Division and the Building Construction services is a TAISEI’s key mission. To fulfi ll this mission, we Division who will bear the company’s future. We also have established our ”Quality Policy” and use it as a base implement an educational support system run by highly- for our corporate activities. experienced employees with a wealth of expertise and In addition, TAISEI has also developed our own strong technical skills to develop the workforce. quality management system that has been in operation for many years, and was the fi rst construction company ➋ Increasing customer satisfaction in Japan to acquire ISO 9001 certifi cation in 1996. To Following the handover of construction products, the provide our customers with safe, secure construction head offi ce and branch offi ces come together to provide products and after-sales service, we have established the whatever technical support is needed, and the different quality management system that covers all stages from divisions and departments collaborate to provide adequate construction to post-delivery operations. We always keep and timely quality maintenance (after-sales service). the manuals and standards required for construction- To determine the level of customer satisfaction (CS), related quality management, which are developed as we hold CS interviews after the handover of construction needed to improve quality management and to keep up products (for civil engineering projects) and have customers with new cutting-edge technology. In 2009, we launched fi ll out surveys (for building construction projects). The TAISEI QUALITY activities in connection with our quality survey and interview results are reported to the TAISEI management system. We pursue activities as a Group based QUALITY Committee and efforts are made to ensure on the three pillars of Increasing Productivity, Increasing quality and increase customer satisfaction. KPIs P38 Quality and Eliminating Quality Issues, and Fostering an Environment of Dedication to Construction.

Civil Engineering Division TAISEI QUALITY Committee / Building Construction Division TAISEI QUALITY Committee

Chair: Division General Manager Members: Department General Managers and equivalent

Production Tool Innovation Group (Tools) Quality Improvement Group (HR) Workplace Environment Improvement Group (Environment) Development of new construction technology Quality training and education programs Workplace reforms designed to foster an and IT productivity tools and elimination of quality issues environment of dedication to construction

TAISEI QUALITY Committees

Chair: Branch General Manager Members: Department General Managers and working group leaders Support and promotion Suggestions and reporting

Production Tools Innovation Quality improvement Workplace Environment Improvement [Implementation] Working Group (Tools) Working Group (People) Working Group (Environment) at construction sites

21 TAISEI CORPORATE REPORT 2013 DATA BOOK Develop and provide technologies for Do We invested 9.0 billion yen in research and resolving social issues development (consolidated amount for fiscal 2012) and actively promoted alliances outside the Company with The TAISEI Group conducts research and development research institutes such as universities and entities from the into technology with an emphasis on fundamental same and different industries. We also actively published technology, new material technology and cutting-edge our technological developments in newspapers, academic technology for urban redevelopment, environment and articles, and other outside media. We thus endeavor engineering, energy, design and construction. TAISEI’s towards “living technology” that answers the needs of aims are to meet the needs of society and customers society. KPIs P38 and cultivate new markets through technology.

* : Technical release : Event exhibition, etc. Main Media Presentations Reported on exhibition one year after the Great East Japan Earthquake on how to create societies that can withstand disasters (March 26-30, Tokyo) TECOREP system earned the Chairman’s Award from the Japan Construction Machinery and Construction Association —Method for demolition of very tall buildings that minimizes the environmental impact— Developed T-Fogless Flow air conditioning system for endoscopic surgery —Prevents fogging of the laparoscope and creates a comfortable and efficient environment for the patient and surgeon— Began a plan to expand the Technology Center to create a safe, secure, and comfortable space —Construction of new research facilities and enhancement of existing facilities for developing high value-added technology— Exhibited at FOOMA JAPAN (International Food Machinery and Technology Exhibition) (June 5-8, Tokyo) Exhibited at the Vietnam International Exhibition of Construction Technology (June 27-29, Hanoi) Signed a business collaboration agreement with U.S. company, CH2M HILL for decontamination work —Aiming for reconstruction as early as possible— Successfully created ultra-high-strength CFT columns made of 780N/mm2 steel and Fc150N/mm2 concrete —First application in a high-rise building in the Otemachi 1-6 Project (tentative name)— Exhibited at Concrete Techno Plaza 2012 (July 4-6, Hiroshima) Exhibited at the Japan National Conference on Geotechnical Engineering (July 14-16, Aomori) Held an earthquake-proofing Internet seminar on BCM from the viewpoint of resulting events and initiatives for earthquake disaster mitigation Exhibited at RADIEX 2012 (Radioactive Decontamination & Radioactive waste Disposal International Exhibition) (September 24-26, Tokyo) Construction Fair 2012 (September 30 - October 2, Tokyo) Exhibited at Exhibition for Geo-Environmental Restoration 2012 (October 17-19, Tokyo) Exhibited at the Data Center Expo (October 24-26, Chiba) Exhibited at EE Tohoku ‘12 (October 24-25, Miyagi) Exhibited at Construction Technology Fair 2012 in Chubu (October 25-26, Chubu) Exhibited at a concrete symposium on development of prestressed concrete (October 25-26, Shiga) Designed and constructed a ‘disaster mitigation’ refrigerator-freezer facility in preparation for a tsunami —Protecting buildings and property from a Level 1 tsunami— Held BCP drills for the entire TAISEI Group —Based on the scenario of an earthquake occurring directly beneath the Tokyo Metropolitan Area— Exhibited at the Lifestyle and Technology Construction Fair (November 2-3, Takamatsu) Exhibited at Messe Nagoya 2012 (November 7-10, Nagoya) Exhibited at the Construction Technology Forum (November 8-9, Saitama) Exhibited at Construction Technology Forum 2012 in Hiroshima (November 22-23, Hiroshima) Exhibited at Eco-Products 2012 (December 13-15, Tokyo) Developed an earthquake-resistant device for automated warehouses, and made the decision to install it in the Logistics Center —Facilities capable of business continuity following an earthquake— Held an Exhibition to Commemorate the 140th Anniversary, “Passing the torch to the future” (January 21-25, Tokyo) Started testing energy control technology in a Smart City —Start of full-scale tests in the Yokohama Smart City Project (YSCP)— Received authorization from the Minister for Eco-friendly high-strength concrete —First in Japan to be certified for a design basis strength of 80N/mm2— Developed a tsunami wave-making device that can precisely reproduce a large-scale tsunami —Reproduction of tsunami behavior near breakwaters and on shore structures— Exhibited at JFMA Forum 2013 (March 12-14, Chiba)

TAISEI CORPORATE REPORT 2013 DATA BOOK 22 Environmental Data

Main Technical and Development Initiatives (Consolidated)

* Mark on the right of the project name g : Corporate Report 2013 : Corporate Report 2012 ¢: 2012 Securities Report £: Technology Center Report (Brochure, web site)

Published in (*) Item Category Title Details Example of application Page Structural Closed Type Ultra-high A demolition method in which an ultra-high rise Grand Prince Hotel Akasaka, P21 Construction Rise Building Demolition building is dismantled so that the dismantled etc. ¢ P18 Method Method “TAISEI Ecological members can be reused £ No.45 Reproduction System” 300N/mm2 Class Ultra-high New structural method using 300N/mm2 class Underground plaza of P21 Strength Concrete “TAISEI ultra-high strength concrete belonging to Ochanomizu Sola City, etc. ¢ P18 Super-concrete” “Advanced concrete technology T-RC+” Natural ground prediction Natural ground prediction system for condition of Mountain tunneling sites ¢ P17 system for front of a tunnel the ground in front of a tunnel cutting face £ No.45 cutting face Materials Effective Utilization of Technology to reuse concrete rubble generated in Kamaishi disaster waste P21 Concrete Rubble earthquakes as hardened cement materials disposal ¢ P17 Disaster “T-RESPO Method” for Vibration control method for protecting Ultra Shinjuku Center Building, P19 prevention protecting against long high-rise building construction from resonance etc. ¢ P18 period seismic motions with long period seismic motions £ No.44 Vibration Control System Vibration control device to minimize goods falling Kobayashi Kako Co., Ltd. P20 for Automated Warehouse from automated warehouse racks Logistics Center P21 Racks ¢ P18 £ No.45 Tsunami BCP related Device capable of reproducing the behavior of Used in measures against P19 technology, tsunami wave- tsunami around tsunami wave defenses and tsunami along coasts and ¢ P18 making device above ground structures, based on testing and for formulating BCPs analysis Technology for in-situ Technology for purification of cyanide Toho Gas Co., Ltd. P21

Taisei Corporation Taisei purification of groundwater compounds in groundwater that are difficult to ¢ P17 contaminated with cyanide decompose Measures against New ground improvement technology using a 1.2 Development and P21 liquefaction m diameter wide blade agitation device that can verification complete, yet to £ No.45 open and close in the ground be applied Environment Yokohama Smart City Verification of comprehensive energy Taisei Technology Center, P22 Project(YSCP) verification management system as an undertaking in the etc. ¢ P18 project Ministry of Economy, Trade and Industry’s “Next- £ No.45 generation Energy and Social System Verification Project”. T-Flexible Cleanroom Air conditioning and ventilation system that Electronic device factories, P22 enables the air flow, air cleanliness, temperature, etc. ¢ P18 and humidity of clean spaces to be freely set ICT “Field Pad”, cloud-linked Construction management system for viewing Building construction sites P22 application - “Field Pad” drawing information and change notifications, and some civil engineering etc., using a smart device, and automatically sites of Taisei Corporation registering construction record photographs, by linking to the cloud Unmanned Construction A system that enables construction by remote Disaster recovery sites, etc. P21 System operation in severe working sites where humans £ No.44 cannot enter Structural Wall type precast concrete An industrialization method in which floors and Hulic Court Yukigaya, etc. P23 Construction construction method (Taisei walls of a building are produced in the company’s Method U-LEC Co., Ltd.) factory, transported to site, and assembled Wall type reinforced Custom-built housing with excellent seismic Detached housing, rental P24 concrete housing “Palcon” resistance and durability, by applying Taisei’s housing, etc. ultrahigh-rise building construction technology to detached housing Post-Head bar (PHb) A seismic retrofit method in which Post-Head- Existing underground P24 construction method bar shear reinforcement that is anchored with structures, water purification £ No.44 (Seiwa Renewal Works) post-construction plates is embedded within works, pump houses, structures. tunnels, etc. Environment Air conditioning eco-duct Corrugated board ducts using aluminum foil. A Taisei Technology Center, P23 £ Group companies “Corru-Airduct” (Taisei joint development of Taisei Corporation, Rengo Rengo Co., Ltd., Kyoto No.41 Setsubi Co., Ltd. Co., Ltd., and Kurimoto Ltd. factory ICT Three-dimensional machine Use of Information and Communication Introduced into sports P23 control system (Taisei Rotec Technology (ICT) in road pavement construction facility (tennis courts) Co., Ltd.) construction sites Others Condominium renewal Delicate support ranging from reaching an OberOfuna Marks Court P24 projects agreement with the residents regarding (Taisei-Yuraku Real Estate condominium block rebuilding, and finding new Co., Ltd.) housing for those that wish to change residence

23 TAISEI CORPORATE REPORT 2013 DATA BOOK NOW Technology for Resilient Urban Development * Reference) Corporate Report 2013 Special Edition P17-P18 A resilient society with resistance and recovery mechanisms is needed and that has the attitude of facing up to natural disasters. In that way even, when threatened by global scale natural phenomena such as climate change, etc., or when an abnormal event such as a fire occurs or toxic material is released, etc., the society is almost unaffected. And even if affected, the impact is limited and does not become a serious situation, and immediately the recovery capability operates to bring about restoration. In order to increase the resilience of society to these threats and abnormal events, here we introduce several of the technologies for resilient urban development from among the research and development being undertaken by Taisei Corporation,.

[1] Technologies for recovery from earthquake disasters and to contribute to rebirth of Japan • Investigation of surface decontamination methods prior to converting timber materials into chips • Development of technologies for effective utilization of concrete rubble generated in the Great East Japan Earthquake • Development of tsunami shelters (development of tsunami refuge buildings) • Structural schemes and construction of elevated urban plazas • Proposal of local area rebirth by converting the upper floors of existing suburban residential complexes into local industrial facilities [2] Technologies to prepare for future earthquakes • Simulation of seismic motions • Earthquake and wind measurement and monitoring system • Prediction of seismic motions in the Tokyo area • Seismic disaster prevention system for industrial facilities • Seismic risk evaluation system • Countermeasures against long period seismic motions for existing ultra high-rise buildings • Seismic performance of structural steel column-beam connections subject to long period seismic motions • The effect of seismic isolation and vibration control buildings • Seismic isolation devices for semiconductor manufacturing plant • Concentrated energy absorption type vibration control system • Analytical investigation of vibration control of automated warehouse racks • Large-scale ceiling construction methods with excellent seismic resistance • Structural steel framework seismic retrofit method taking architectural design into consideration • Embedded post construction plate shear reinforcement • Development of seismic resistant joints that are repairable • Tsunami propagation simulation • Technology for analysis of internal flooding due to tsunami • Methods of removal of salt on agricultural land inundated by tsunami • Analysis of ground liquefaction • Ground improvement methods as measures against liquefaction • Method of seismic retrofit of embankments on liquefied ground • Development of measures against liquefaction using the overburden pressure of direct foundations • Development of in-ground wide blade type ground agitation and improvement method • Unmanned construction system [3] Technologies for achieving a resilient energy system • Technology center smart community plan • Development of simulation technology for determining a building shape from its sunlight environment • Analysis of the internal and external environment and energy of a building using the Low Carbon City Block Simulator® • Measurement survey of office lighting environment improvement method when saving electricity

(From Taisei Technology Center Report No. 45 “Technology for Resilient Urban Development Research and Development Initiatives for Recovery from Major Disasters, and to Lead to Regeneration of a Sustainable Japan that is Strengthened against Disasters” / Taisei Technology Center Building Engineering Research Institute, Civil Engineering Research Institute, Building Technology Development Department, Civil Engineering Technology Development Department)

TAISEI CORPORATE REPORT 2013 DATA BOOK 24 Social Data Community Involvement and Development

Plan (Overall Principles of Conduct) TAISEI Group, as a good corporate citizen, will build sound relationships with local communities and promote Basic Conceptual Approaches dialog and harmony with society. We will also contribute to the development of society as a whole. • Development/improvement of social infrastructure: (Overall Management Perspective) Continuous implementation of community- Mid-Term Business Plan and Business Contribution to post-earthquake reconstruction based activities with local residents Issues • Development/improvement of robust business foundations

Plan Main Issues and Do Main Initiative Items (FY2012) Objectives (FY2012) Main KPIs* (Key Performance Indicators) Pages ● Contributions to local ● Contributions to local communities ● Number of activities contributing to P39 communities society and the environment ● Expansion of employees’ volunteer activities ● Number of employees who participated P39 (Support activities in disaster-affected areas, etc.) in volunteer activities

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 39.

Contributions to Local Communities Plan

Promoting social contribution activities appreciation from Tokiwa The TAISEI Group works hand-in-hand with a region‘s Elementary School and the people in the fi elds of local community, environmental Tokiwa east district. preservation, academics and culture. All TAISEI branches à Cooperation with the Ecocap and construction sites worldwide play a role. Movement Here, we introduce some of the initiatives being TAISEI cooperated with the undertaken. NPO Ecocap Movement to Aokigawa sketching contest donate vaccines for about Social Contribution Activities (Image) 2,700 children in fi scal 2012. à Donated TAISEI Charity Seats Six “TAISEI Charity Seat” tickets to see a Nippon Ham Fighters baseball game in Hokkaido were donated to the Bureau of the Future of Children in Sapporo that were then distributed to a social welfare organization. à Gold Medal for Merit for 20 years of employee blood Local community Environment preservation Academics and culture donations Every year, employees at the head offi ce and branches TAISEI Group donate blood for the Japanese Red Cross Society at the NPO employees Shinjuku Center Building. We received a Gold Medal for Connections volunteer activities Merit in recognition for 20 consecutive years of blood donation activities. à Gave independence support to physically and mentally Local Community Do challenged The Technology Center supports the independence of ● The Taisei Corporation Natural and Historical physically and mentally challenged by allowing use of the Environment Fund company cafeteria each Wednesday for practical training The Taisei Corporation Natural and Historical Environment in face-to-face bread selling by people from the Hikari Fund was established in 1993. In the 20 years since, we Higashitotsuka Community Activity Home. have provided aid to a total of 419 groups, including NPOs, à International goodwill cooperation in the amount of approximately ¥15 million annually. Employees stationed in Sri Lanka assisted as volunteers in the construction of the country’s fi rst baseball Main Recipients of Funding (Last 3 Years) stadium from the planning stages including drafting FY2010 Nature Works, and 22 others of the preliminary design. With the support of Grant FY2011 CORE Community Road Empowerment and 25 others Assistance for Cultural Grassroots Projects from the FY2012 Animal-pathway and Wildlife Association (company) and 31 others Japanese Government, the stadium was completed ● Holding regional contribution activities throughout Japan in 2012. The same year, a friendly match was held at the stadium between Japanese high school students à Offering tours and a select team of Sri Lankan players as an event to We offer tours of the Taisei Technology Center (Yokohama) commemorate 60 years of diplomatic relations between and civil engineering and construction sites nationwide the two countries. with the aim of ensuring good communication with local communities. ● Employee volunteer activities to support areas affected à Cooperation with local communities by the Great East Japan Earthquake Employees at the Second Tomei Expressway Aokigawa Following activities in fi scal 2011, employee volunteer Bridge construction site (Aichi) participated in a sketching activities* were held again from April to June 2012, contest, cleaning activities, and other events with people hosted by the Employees’ Association in Ishinomaki, from the neighboring community. In recognition of the Miyagi prefecture that was destroyed in the earthquake. site’s regional exchange efforts, it received letters of As many as 119 employees participated. * KPIs P39

25 TAISEI CORPORATE REPORT 2013 DATA BOOK Environmental Preservation Do Academics and Culture Do

●●Participated in activities to create local green areas ●●GALERIE TAISEI activities TAISEI participates in the Tokyo Greenship Action GALERIE TAISEI (Yokohama) celebrates the achievements initiative run by the Bureau of Environment to preserve of Le Corbusier (1887-1965), one of the most prominent the remaining local green areas in Tokyo through architects of the 20th century. For fiscal 2012, an cooperation with local environmental groups, NPOs, exhibition on “Le Corbusier and World Heritage and businesses. A total of 71 people participated from Residential Architecture” was opened in June. among employees and their family members in activities carried out on July 14 and October 20. In addition, an environmental volunteer workshop was held on April 26 for new employees, with 34 people participating. ●●Supported the Animal-pathway and Wildlife Association A total of 52 people from among employees and their family members participated* in volunteer activities to make nest boxes for dormice in an effort to support the Animal-pathway and Wildlife Association in its aim to protect the Japanese dormouse, a tiny tree mammal that The exhibition (Photo: Masaaki Aihara) lives in the forests. ●●Cooperation with private company training of teachers TAISEI cooperates with a private business training program for teachers by the Japan Institute for Social and Economic Affairs. In fiscal 2012, tours were given of various TAISEI facilities for 3 days from August 1 to teachers from schools in Machida, Tokyo, and dialogues were held between the teachers and employees to Making nest boxes for dormice exchange ideas and opinions. The program is held each ●●Cooperated with the Gratitude-to Borneo Project year with the aim of providing teachers with experience à Making donations through vending machines with a that can be used in the classroom. donation function ●●Held a special lecture at Yokohama National University Through vending machines installed at branches and (YNU) construction sites, TAISEI supports a project to protect The Technology Center sends an instructor to YNU wildlife in Borneo that is being carried out by The NPO every year. A lecture is given 12 times a year for 3rd Borneo Conservation Trust (BCT) Japan with the help of year students and higher in the College of Engineering Gen Bando, director of the Asahiyama Zoo. A total of Science on the subject of “The Latest Trends and Social around 3.5 million yen was donated in 2012. Contribution in Construction Technology.” à Lecture meeting on building wildlife rescue centers ●●Examples of other activities On February 15, 2013, TAISEI assisted in a lecture TAISEI provides annual financial assistance to the Okura meeting at the head office by Gen Bando, Director of Cultural Foundation, which runs the Okura Museum of the Asahikawa City Asahiyama Zoo on the Gratitude-to Art (Japan’s first private art museum). Borneo Project promoted by the NPO BCT Japan. TAISEI provided expertise on rescue center building construction for the project. ●●Expansion of the Goya de Eco project The TAISEI Association of Subcontractors for Health, Safety, and the Environment implemented the Goya de eco project at construction sites nationwide as one measure to prevent global warming.

KPIs P39 * Okura Museum of Art

TOPICS Entrusted works of art to the National Museum of Western Art and cooperated in a special exhibition The National Museum of Western Art is the only building in Japan designed by Le Corbusier, and is designated as an important cultural property of Japan. Sharing the architectural principles held by Le Corbusier, TAISEI entrusted a portion of its vast collection of his pieces to the Museum with the hope of introducing his achievements to a wide audience. The National Museum of Western Art will also hold an exhibition “Le Corbusier and 20th Century Art” from August to November, 2013, for which TAISEI has been providing special cooperation from the planning stages. The exhibition is centered around 60 or so paintings and sculptures from the TAISEI collection. It introduces the achievements of the Le Corbusier as an artist and also features pieces by other artists of the same period, such as Picasso and Léger. Still life (1953)

TAISEI CORPORATE REPORT 2013 DATA BOOK 26 Social Data Human Rights and Labor Practices

Plan TAISEI aims to create an open corporate culture that advocates respect for basic human rights and diversity. (Overall Principles of Conduct) It is our basic policy that we will not tolerate any form of discrimination on the basis of race, religion, Basic Conceptual Approaches gender, nationality, social status, physical condition or other grounds and that we comply with the laws and regulations of local communities and respect local cultures and customs in our overseas operations. (Overall Management Perspective) • Development/improvement of robust (1) Strengthen human resources and promote diversity Mid-Term Business Plan and Business Issues business foundations (2) Create a system that maximizes employee potential

Plan Do Main Issues and Main Initiative Items (FY2012) Objectives (FY2012) Main KPIs* (Key Performance Indicators) Pages ● Respect for human rights ● Human rights awareness raising ● Rate of attendance in human rights training P39 activities ● Creating a pleasant work ● Promotion of diversity ● Number of participants in education and training for environment ● Support for work-life balance female leaders / Number of female managers / Number of female executives / Physically and mentally challenged P39 employment rate / Number of re-employed individuals to ● Number of employees taking childcare leave P40 ● Rate of paid leave utilization ● Number of former employees registered with the Job- Return system ● Support for employees’ career ● Promotion of personnel training ● Training hours per employee development ● Number of trainees at overseas construction sites P40 ● Number of trainees at overseas research institutes, etc. * KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 39-40.

Respect for Human Rights Plan

Respect for human rights and diversity Do ➊ Promoting human rights education TAISEI respects the Universal Declaration of Human TAISEI carries out human rights training as an integral part Rights and the 8 Fundamental Conventions by the ILO, of its company-wide basic education scheme provided and has articulated in the TAISEI Group Action Guidelines to all employees in group training sessions designed for its commitment to respecting basic human rights and each organizational level or division. The basic position in diversity. We have indicated in our policy that we will reject our human rights training* is to respect every employee’s discriminatory treatment and will respect local cultures and independence, encouraging them to think, learn, and act customs outside Japan and have shown this policy to all on their own initiative rather than merely instructing them employees. We also prohibit child labor, forced labor, and to memorize what is taught. We also held several lectures discrimination in respect to employment and occupation, and workshops with outside instructors for Human Rights and we guarantee freedom of association and the right to Awareness Committee members nationwide. collective bargaining. * KPIs P39 Promotion system for human rights Do ➋ Publishing of a human rights handbook awareness TAISEI publishes a Human Rights Handbook every year as TAISEI established the TAISEI Human Rights Awareness supplementary material for its training. We also solicited Committee in 1984 to support the character formation of human rights slogans and essays from throughout the personnel and the development of employees with high Company in connection with Human Rights Week in awareness of human rights. This committee, chaired by the December. executive in charge of human resources with the general ➌ Establishment of an internal hotline manager of the personnel department as the vice-chair, annually formulates basic policy and action plans and TAISEI has established an internal hotline to provide advice reports the results of the previous year. and resolve problems regarding human rights, and sexual We also assign a member of the committee to each and power harassment at an early stage. Moreover, another division in the head offi ce and every branch, in order to hotline has been set up to report violations. Through this create a promotion and implementation system that system, we can investigate the facts and make efforts to spreads human rights awareness raising and education prevent similar violations, including requesting related throughout the company. divisions to take corrective action where necessary, without infringing the whistleblower’s rights. Human rights awareness raising activities Do ➍ Human rights in the supply chain Under the slogan “Aiming at a friendly and supportive society In April, TAISEI established a Procurement Policy that in which all people lead vibrant lives,” the TAISEI Human stipulates a commitment to human rights, in order to Rights Awareness Committee attempts to disseminate promote consideration for human rights throughout the awareness of respect for human rights to all employees. supply chain.

27 TAISEI CORPORATE REPORT 2013 DATA BOOK Creating a Great Place to Work Plan

Promotion of diversity Do Support for work-life balance Do Recognizing that it is important to provide a place where TAISEI is committed to creating an environment where all diverse personnel can work energetically in order to employees can work energetically with satisfaction, by vitalize our Company, we are putting effort into creating accepting diversity, and balancing and enhancing work and workplace environments in which diverse employees can personal life. maximize their potential. ➊ Programs to support balance between work ➊ Encouraging female employees to play an and nursing/childcare active role in operations TAISEI offers various programs to support different work TAISEI has been increasing recruitment of women, and in styles. In addition to introducing programs, we also offer recent years women have come to account for about 20% seminars and supply information to encourage employees of its employment of new graduates. to start preparing early for nursing care and to review their We are also putting effort into expanding the range working styles in light of the aging of the population. We of work open to women and conduct female leader also hold meetings for employees on childcare leave* to development training. The number of female employees ensure a smooth return to work. As a result, awareness in construction projects and sales divisions, typically male- of balance between work style and nursing/childcare has dominated areas, is increasing, and we now also have improved, and the usage rate of each system is increasing. * female offi cers . * KPIs P39 * KPIs P40 Main work-life balance support programs • Nursing care leave • Family care leave program VOICE • Spouse maternity leave I play an active role as a structural designer. • Fertility treatment leave program • Yumi Suzuki, Group Manager, • Childcare leave program Seismic Engineering Group, • Nursing leave Design Division • Relocation program (makes it possible to relocate away from where one was hired) I am an expert in seismic retrofi tting • Short-hours programs (four types) and base isolation retrofi tting. I make • Job-return system (for former employees who had to leave out efforts to increase the value of old of necessity to return to work) buildings and make it possible to keep • Program to move working hours up or down using them for a long time. ➋ Promotion of leave and shortening of work hours To encourage employees to take annual paid holidays, TAISEI introduced a new paid holiday system that includes ➋ Opportunities and support for the physically and half-day and hourly paid time-off. We also offer other mentally challenged holiday systems that include refresher holidays, milestone holidays, and volunteer days off for social contribution TAISEI is committed to employment promotion* aimed activities. at creating a society in which the physically and mentally Furthermore, to reduce total working hours, we challenged can play active roles. We also conduct training designate two months of shortened working hours per year, for skills development and provide information to encourage and every Wednesday as a no-overtime day throughout understanding among other employees. * KPIs P39 TAISEI. We also conduct time management training for ➌ Promoting employment of middle-aged and older managers, using case studies of efforts to reduce working people and recruitment of foreign personnel hours, to enhance management capabilities. We have prepared a re-employment system* to create a ➌ Promotion of mental health care workplace that allows employees who are experienced TAISEI strives to reduce the mental, emotional and and skilled to work for TAISEI again after their mandatory physical stress of employees and their families through the retirement. Moreover, we have expanded our re-employed introduction of an EAP. personnel systems, including the introduction of a meister system (in the architectural fi eld) and an education support system (in the civil engineering fi eld) to create an environment where veteran men and women with TOPICS know-how and advanced technical skills can work with Kurumin Mark acquired for third time satisfaction even after mandatory retirement and hand down their skills and knowledge gained through long Following on from 2007 and experience to the next generation. 2009, in 2012 TAISEI once again received the Kurumin Mark from Additionally, we actively recruit foreign personnel, the Ministry of Health, Labour and including through recruitment seminars for international Welfare in recognition of its efforts students, in an effort to secure diverse human resources. and results in supporting childcare. * KPIs P39 ➍ Dialogue with the employee union TAISEI conducts questionnaire surveys and holds various dialogues between management and labor every year to facilitate smooth business operations.

TAISEI CORPORATE REPORT 2013 DATA BOOK 28 Social Data

Support for Employees’ Career Development Plan

Promotion of human resources Do ➌ Development of global human resources development TAISEI has prepared a series of professional education We plan and implement many kinds of training for programs that start with new recruits and then continue employees in order to foster autonomous independent from an employee’s 3rd through 12th year in the Company. human resources with specialized skills that embody the ● Training outside the Company TAISEI Spirit of “Commitment to Openness,” “Creation of We send employees to universities, design offi ces, Value,” and “Evolution of Traditions.” We also support the research institutes, and other places in and outside Japan acquisition of qualifi cations. to acquire knowledge and skills they cannot obtain in ➊ Training system the Company. As of April 1, 2013, 11 employees were trainees outside the Company. We offer a variety of integrated training* for employees after entering TAISEI in order to develop autonomous ● Training before an overseas assignment independent human resources with specialized skills, We provide pre-departure training to employees who originality, and creativity. are scheduled to go on an overseas assignment. These employees learn basic practical knowledge such as an KPIs P40 * overview of the host country, contract management related to overseas construction, and crisis management, New recruit ~ early 30s Early 30s ~ mid 40s Mid 40s ~ Retirement as well as mental preparation for being an expatriate. ● Management Training at overseas construction sites OJT and Step-up Training training for High-level annual young training for We provide training at overseas construction sites for for new employees executive persons managerial six months to facilitate the acquisition of negotiating recruits promoted to training training positions managers abilities, understanding of different cultures, and language skills through overseas work experience, in Overseas order to develop project managers who can operate training successfully overseas. About 140 people have participated in this overseas * Divisional training (sponsored by every division branch) construction site training since it started in fi scal 2002. In fi scal 2012, 16 employees were sent to nine countries Self-development and company support for language and qualification acquisition including Turkey, Vietnam, and Sri Lanka.

KPIs P40 Compliance training, human rights training *

➋ Support for qualifi cation acquisition We support employees throughout the Company in their endeavors to acquire qualifi cations, in order to develop engineers and managers with specialist knowledge.

Example of qualifi cation acquisition Construction works Civil engineering works

● First-class qualifi ed architect ● Professional engineer ● First-class building operation ● First-class civil engineering and management engineer works execution managing ● First-class plumbing work engineer operation and management ● Concrete engineer and chief engineer engineer ■ : Countries to which employees have been sent for construction site Design (qualifi ed) International training since fi scal 2002

● First-class architect ● Licensed architect ● First-class architect (structural ● Professional engineer design) ● Project management ● First-class architect (facility professional design) ● APEC architect / engineer Urban Development Engineering

● ARES certifi ed master ● Professional engineer ● Redevelopment planner ● First-class building operation ● Professional engineer and management engineer ● First-class electrical work operation and management engineer Business Administrative

● Construction accountant ● Registered real-estate broker

29 TAISEI CORPORATE REPORT 2013 DATA BOOK Labor Practices

Plan TAISEI’s basic concept on our Health and Safety Policy is that all work-related accidents are preventable. (Overall Principles of Conduct) Basic Conceptual Approaches Safety must be our top priority as a member of the construction industry. To this end, we call for a safety- fi rst posture in the workplace, endeavoring to provide a safe, anxiety-free working environment. (Overall Management Perspective) Mid-Term • Development/improvement of robust Establishment of safety-fi rst posture Business Plan and Business Issues business foundations

Plan Main Issues and Objectives Do Main Initiative Items (FY2012) (FY2012) Main KPIs* (Key Performance Indicators) Pages ● Thorough occupational health and ● Continuous practice and improvement of ● Number of fatal accidents and safety management & cooperation TAISEI OHSMS frequency rate with the TAISEI Association of P41 Subcontractors for Health, Safety, and the Environment * KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 41.

Thorough Occupational Health and Safety Management & Cooperation with Plan the TAISEI Association of Subcontractors for Health, Safety, and the Environment

Improving safety and health through Do ● Construction site patrols by the president the TAISEI OHSMS Aiming to eliminate In line with our safety-fi rst attitude, we have operated accidents and disasters, the TAISEI Occupational Health and Safety Management top management System (TAISEI OHSMS) company-wide since 2001, in order conducts safety patrols to continuously increase our level of health and safety at construction sites. management with the aim of eliminating accidents and This helps to convey disasters and preventing disasters to third parties. the strong intention of the top management to The TAISEI OHSMS is based on health and safety The president on patrol management methods and knowhow we have developed ensure safety among all over many years. On top of this system, we steadily go employees and construction site workers. through the P-D-C-A (plan, do, check, act) cycle in an ● Supporting safety education at specialty construction attempt to prevent accidents and disasters. operators Specifi cally, in line with the Health and Safety Policy In cooperation with the TAISEI laid out by the president, we formulate a Health and Safety Association of Subcontractors Management Policy that contains annual priority items to for Health, Safety, and the be addressed. Branches and construction sites prepare and Environment, which consists implement health and safety management plans based on of specialty construction fi rms this Policy. Patrols are conducted to verify that the items throughout Japan, TAISEI aims to in the Health and Safety Management Policy have been eliminate accidents and disasters properly implemented. By analyzing the results of audits as well as protect the environment. conducted by the head offi ce’s Safety Administration Association members participate Department and the causes and background to disasters in health and safety management that have occurred at construction sites, we continuously conferences held by TAISEI and make use of the implement measures adapted to the trends in disasters in Company’s publications and collections of accident an effort to prevent them. examples as education and guidance tools for their own health and safety management systems. In this

Head office Branches Construction sites way, TAISEI helps to prevent accidents and disasters at Health and Branch Health and Safety Construction Health subcontractors as well. Safety Management policy Management Plan and Safety Plan ● Safety record President’s Health and Construction Site Safety Policy Manager’s Management Policy TAISEI’s safety record is following a downward trend

Central Safety Committee Branch Safety Committee thanks to thorough occupational health and safety · Targets · Branch targets · Health and Safety management. In 2012, the frequency rate of accidents · Action priorities · Action priorities Management Policy * was 0.81 . KPIs P41 · Management · Health and Safety * and specific items to be addressed

Specific causes of danger and harm priorities, other Management Plan · Emergency Response Plan · Head office plan · Branch action plan · Basic Construction Work Plan (Guidance) (Guidance) TOPICS Accident database Implementation and operation Implementation and operation Implementation and operation information Earned Outstanding Performance Award from the Accident Accident Ministry of Health, Labour and Welfare analysis (Warning) analysis (Warning) Accident Prevention of Prevention of response reoccurrence reoccurrence The following construction site earned the FY2012 Ministry Internal audits/guidance Construction site patrols On-site inspections/remediation of Health, Labour and Welfare Award in the category of Outstanding Performance by a Workplace, Group or Individual Records/storage Records/storage Records/storage in Health and Safety: analytical information System review • Shonan C-X A-1 District SC New Construction Project Accident investigation and

TAISEI CORPORATE REPORT 2013 DATA BOOK 30 Governance Data

Fair Business Practice

Plan TAISEI recognizes corporate ethics and compliance as the fundamentals of our business operations. We (Overall Principles of Conduct) not only make this clear in our Action Guidelines to TAISEI personnel and the TAISEI Group as a whole, Basic Conceptual Approaches but also engage in a variety of measures to encourage self control and self-awareness of each and every executive and employee on this matter. (Overall Management • Development/improvement of robust Perspective) Mid-Term Business Strengthening of compliance and ICT governance Plan and Business Issues business foundations

Plan Do Main Issues and Main Initiative Items (FY2012) Objectives (FY2012) Main KPIs (Key Performance Indicators)* Pages ● Promoting compliance ● Ongoing implementation of ● Rate of participation in compliance training compliance training (Group training) P41 ● Number of branches conducting compliance training for subcontractors ● Supply Chain Management ● Promoting CSR procurement (to be set in FY2013) — ● Protection management and use ● Intellectual property risk ● Number of training sessions on intellectual P41 of intellectual property management initiatives property rights ● Information security measures ● Protection and management of ● Number of major information security breaches information ● Number of company-wide education programs P41 ● Increasing awareness of information regarding information security security * KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 41.

Promoting Compliance Plan

Establishment of a Compliance Committee Ongoing implementation of compliance Do and promotion system training TAISEI has established a Compliance Committee composed TAISEI uses group training and compliance news in of seven members (two outside experts and fi ve company training and awareness-raising, in order to promote the directors) chaired by an outside expert as an advisory body dissemination and establishment of compliance awareness. for the president. The committee, which meets several times Group trainings* are conducted in small-group discussion per year as needed, compiles reports on specifi c initiatives format to inform all employees of the laws and regulations pertaining to compliance promotion. It also exchanges related to their actual works, based on topics related to opinions on the implementation of compliance training day-to-day work (conducted three times in fi scal 2012).

and on training plans, takes opinions and suggestions from KPIs P41 outside experts, and attempts to enforce the observance of * laws and regulations. Additionally, we publish columns that take up a wide We have also developed an internal system for variety of familiar and topical compliance-related issues as promoting and implementing company-wide compliance a monthly compliance communication on our intranet in an awareness-raising and education by assigning managers, effort to raise the awareness of executives and employees. promoters, and implementers in each division with the We also actively provide training materials to TAISEI president at the top. Group companies, ensuring that the TAISEI Group functions as an integrated entity in promoting compliance. President Administrative structure CP Committee Compliance training for subcontractors Do Head Office Business Administration Div. TAISEI conducts annual compliance training* for the CP General Manager CP General Promoter Secretariat (Business Administration Div. (General Affairs Dept. CP Promotion Section proprietors of subcontractors at TAISEI’s Occupational General Manager) General Manager) Health and Safety Convention. * KPIs P41 Implementation Structure Business Divisions Head Office and Branches Division CP Manager Division CP Manager (Corporate General Manager, Division General Manager) (Business Division General Manager, Branch Manager) Division CP Promoter Division CP Promoter (General Manager In Charge of Administration) (Administrative Manager) CP Implementers CP Implementers (All Department General Managers) (All Department General Managers) All Executives and Employees All Executives and Employees

* CP: Compliance * Compliance Promotion Section: Serves as the secretariat for the Compliance Committee and promotes dissemination and establishment of compliance awareness among executives and employees. * Compliance implementer: All department general managers are designated as compliance implementers; they implement awareness-raising and education on compliance for all executives and employees in their department.

31 TAISEI CORPORATE REPORT 2013 DATA BOOK Corporate ethics helpline Do Establishing a system for ensuring Do TAISEI has developed a Corporate Ethics Helpline as an appropriateness of bidding practices internal whistleblowing system to report violations of laws and determining the status of observance and regulations and the TAISEI Group Action Guidelines. It Branch managers check to make sure bidding practices also established an outside hotline in an attorney’s offi ce. are conducted appropriately, and we operate an internal We inform executives and employees of the hotlines system for preparing and storing those confi rmation through whistleblowing and consultation menu items on records. the company intranet and posters. We have also spread the Also, every year the Legal Department conducts a word by posting handling methods and other information study to determine the appropriateness of the bidding on the TAISEI website for whistleblowing by employees of practices of all branches and their status of observance subcontractors who are in a direct transaction relationship of the Construction Contractors Law and the Act with TAISEI. In addition, we have established a Group against Delay in Payment of Subcontract Proceeds, Etc. to Helpline for the 20 group companies in Japan as part of Subcontractors. our compliance system. Requiring reporting of serious legal Do violations TAISEI requires executives and employees to report to the company if they know that “they themselves or another offi cer or employee has or is trying to commit a legal violation that could cause serious detriment to the company (e.g., temporarily barred from public bidding, suspension of business).”

Supply Chain Management Plan

Establishment of a procurement policy Do Internal Study Session on CSR Do TAISEI established a Procurement Policy in April 2013 with Procurement the aim of fulfi lling its CSR throughout the supply chain, in TAISEI held a CSR procurement study session for about order to help create a sustainable society. We developed 50 CSR personnel from each division and six main group Procurement Guidelines based on this policy and will companies, in order to give them an understanding of the pursue CSR procurement through the establishment of signifi cance and purpose of TAISEI’s efforts to address CSR good partnerships with suppliers. issues together with suppliers. The participants deepened their understanding of the Procurement Policy (excerpt) fact that, within action toward the supply chain required by ISO 26000, it is important for TAISEI to work on CSR Under the TAISEI Group Ideal, “create a vibrant with all relevant suppliers, not just by itself, in order to help environment for all members of society,” we are achieve sustainable social development. committed to carrying out our procurement activities Promoting CSR procurement Do in accordance with this Procurement Policy in order to In March 2013, TAISEI launched a CSR Procurement create safe and attractive spaces, as well as work and Council composed of the Safety Administration Division, living environments of exceptional value, with the aim Building Construction Division, Civil Engineering Division, of providing products and services that are in harmony Procurement Division, Corporate Planning Department, with nature. and the Corporate Communication Department’s CSR 1. Compliance with Laws, Regulations and Social Promotion Offi ce, in order to disseminate CSR initiatives Norms in the supply chain. The council will develop Procurement 2. Fair Business Dealings Guidelines and promote CSR activities with suppliers. 3. Respect for Human Rights 4. Promotion of Safety and Hygiene 5. Commitment to Environmental Conservation 6. Ensuring and Improving Safety and Quality 7. Information Disclosure 8. Commitment to Information Security 9. Activities Contributing to Society 10. Business Continuity in Times of Disaster 11. Promotion of CSR (Corporate Social Responsibility) Procurement

TAISEI CORPORATE REPORT 2013 DATA BOOK 32 Governance Data

Protection Management and Use of Intellectual Property Plan

Intellectual property risk management Do In fi scal 2012, we provided an intellectual property initiatives course* for personnel from technology sections and branch site administration departments and made every effort Disputes over intellectual property involving the to enhance the level of intellectual property capabilities infringement of patents and other rights are increasing throughout the organization, with views toward increasing in the construction industry. It is therefore necessary to awareness of intellectual property and toward human enhance intellectual property risk management, in the resources development. We also conducted activities areas such as dispute management and prevention of to uncover inventions and discover and survey the technology outfl ow. infringement of other companies’ patented technologies at Based on our Intellectual Property Guidelines, main construction site offi ces. TAISEI promotes corporate management with a focus on * KPIs P41 intellectual property, and we strategically manage and Future actions utilize the full range of intellectual property, including We will continue awareness-raising activities to ensure copyright and construction business expertise, in addition that all employees possess a fundamental awareness of to patents. intellectual property and to prevent the infringement From the perspective of trademark strategy, we of other companies’ intellectual property, including appropriately manage product brands used in the names of conducting trainings for our Marketing & Sales and individual technologies and services, increasing recognition Business Administration Divisions aimed at the acquisition and credibility for customers, society, shareholders, and of fundamental knowledge of intellectual property and other stakeholders, in an attempt to increase our corporate providing e-learning programs and distributing information brand value. concerning intellectual property risks to all employees.

Information Security Measures Plan

Establishment of Taisei-SIRT Do with conventional measures alone. Accordingly, it is more TAISEI established Taisei-SIRT, which is an in-house important than ever to develop an emergency response Computer Security Incident Response Team (CSIRT), in system in case of information security incidents to prevent order to reinforce its preventive measures against damage the spread of damage from incidents and restore services from electronic information security incidents and its as quickly as possible. emergency response system. On March 1, TAISEI joined the Moreover, requests from the government and Nippon CSIRT Association. corporate clients to reinforce information security systems Taisei-SIRT shares information and cooperates with have been increasing, which made the strengthening of other in-house CSIRT in Japan to conduct activities to our electronic information security responses system a prevent damage from electronic information security pressing task. incidents and to respond quickly to stop the spread of ● Strengthening our electronic information security damage if an incident occurs. responses system TAISEI will continue striving to reinforce its electronic Improvement of the level of company-wide electronic information security response system, in order to provide information security and the establishment of a specialized security and safety that live up to the trust of its customers. organization that can take emergency responses in the ● Background event of an electronic information security incident further TAISEI has always taken a variety of security measures strengthens the electronic information security response and undertaken awareness-raising activities to protect system, including the determent of incidents and rapid customers’ information assets, corporate networks, and responses during an incident. executives and employees from computer crime and cyber Taisei-SIRT is composed of engineers from Taisei attacks in today’s highly information-based society. Corporation and its group company Taisei Information Nevertheless, with increasingly more advanced System Co., Ltd. The functions provided, incident response cyber attacks and complicated information security process, and organization were developed and standardized incidents occurring frequently, recently it has become with advice from Japan Computer Emergency Response diffi cult to completely defend against these incidents Team Coordination Center (JPCERT/CC) and members of the Nippon CSIRT Association.

33 TAISEI CORPORATE REPORT 2013 DATA BOOK Information protection and Do Increasing awareness of information Do management security Under the slogan “Safety First Applies to ICT Too!” we Increasing awareness of information security among are aiming, together with business partners such as executives and employees is an important information subcontractors, to achieve a zero level of information security measure, and we think that ongoing education * security breaches . KPIs P41 for all executives and employees is therefore essential. We * regularly provide executives and employees with education, ●●Thorough measures to prevent information leaks including knowledge related to information security and Out of the many IT devices within the company, we regard clear specification of internal regulations and rules, with computers, USB memory sticks, and external hard drives the aim of increasing awareness of information security as devices with an especially high risk of information leaks. among all executives and employees. Accordingly, we have reinforced management rules and ● taken technical countermeasures. ●Information security pocketbook We have installed encryption software on computers We have put the rules that all executives and employees that encrypts the entire internal hard disk. We prohibit should observe at the bare minimum together into an the use of personal USB memory sticks and external hard Information Security Pocketbook. We use this guidebook drives at work and enforce the use of only products that to continuously provide education to all executives and are automatically encrypted. employees and group training to new hires and mid-career Further, in order to reinforce management, we workers. have appointed people in charge of the management of We have also created a pocketbook specifically for different devices and periodically take full company-wide subcontractors and other partner companies. By explaining inventory counts to confirm the whereabouts of all devices the content of this pocket book at orientations for persons every year. entering construction sites, meetings of disaster prevention councils, and other venues, we are able to also provide ●●Initiatives aimed at the entire construction industry education and guidance to partner companies. Together with a security vendor, TAISEI has jointly ● developed a computer security diagnostic website that it ●Information security website has made freely available on the Internet, where partner We have created a website on our company intranet that companies and anyone can use the site to easily determine brings together content related to information security. whether they have antivirus software running and whether It includes internal regulations and rules pertaining to they have file-sharing software installed. information security, past notifications and education We also operate an Information Management content as well as techniques for preventing information System Ledger using a website shared by construction leaks. sites (Construction Site Net), in order to ensure thorough We strive to increase the awareness of executives and management of customer information by partner employees by making this website available so that they can companies. acquire information security knowledge on a daily basis. Nowadays it is not possible for a single company to ●●Education for all employees through e-learning completely handle information security countermeasures programs alone. By providing these systems to and jointly using We continuously conduct e-learning programs* on them with companies that we do business with and other information security several times per year, in order to companies in the industry, we aim to increase the level of ensure all executives and employees are informed about information security not only at TAISEI but also throughout information security. We make every effort to prevent the construction industry. information security breaches by providing timely education focusing on the content of common information security breaches and how to handle them and other topics related to information security. Moreover, we also use e-learning programs to explain changes in rules relating to information security and newly introduced systems (tools), and this has had a big effect on steadily informing executives and employees of important content. * KPIs P41

TAISEI CORPORATE REPORT 2013 DATA BOOK 34 Governance Data

Organizational Governance

Plan (Overall Principles of In order to earn and maintain the trust of society and also to realize sustainable corporate development, Conduct) our fundamental corporate governance policy relies on swift, appropriate, fair, and transparent decision- Basic Conceptual Approaches making by management. (Overall Management Perspective) • Development/improvement of robust Enhancement of internal controls throughout the TAISEI Mid-Term Business Plan and business foundations Group Business Issues

Plan Main Issues Do and Objectives Main Initiative Items (FY2012) (FY2012) Main KPIs* (Key Performance Indicators) Pages ● Corporate governance and ● Dissemination and establishment of the ● Rate of TAISEI Group Ideal e-learning internal controls TAISEI Group Ideal Structure of Values implementation P42 and Policies ● Risk management ● BCP initiatives ● Rate of participation in major disaster response P42 training ● Information disclosure and ● Holding of stakeholder dialogues, etc. ● Number of dialogues, etc. P42 dialogue with stakeholders

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 42.

Corporate Governance and Internal Controls Plan

Corporate governance system and Do Dissemination and establishment of Do appropriate auditing the TAISEI Group Ideal Structure of TAISEI has adopted an executive offi cer system, enabling Values and Policies the Board of Directors (including outside directors) to The TAISEI Group reorganized the TAISEI Group Ideal focus on decision-making and supervision. TAISEI’s Board Structure of Values and Policies in 2010, and we have of Directors also has various committees (such as the been conducting a variety of measures geared toward its Human Resources Committee, the Finance Committee, dissemination and establishment. and the Group Companies Committee). The Board of Following on from the previous year, we conducted Auditors (including external auditors) serves to ensure the an e-learning program* on the TAISEI Group Ideal Structure independence of audits and strengthen the TAISEI Group of Values and Policies in fi scal 2012. We also created “the audit system as a whole. The Board of Auditors conducts Group Action Guideline File” as a tool to assist employees internal audits in close cooperation with the company’s in establishing connections between the TAISEI Group accounting auditors and the internal audit organization. Ideal Structure of Values and Policies and their day-to-day individual work duties, and published it on our intranet. Internal control system Do We also conducted a questionnaire on employees to In order to ensure the appropriate and effective survey the degree of dissemination of the TAISEI Group implementation of our operations and reliability of our Ideal Structure of Values and Policies among employees. fi nancial reporting as a Group, our Board of Directors KPIs P42 has formulated the Basic Policy on the Establishment of a * System to Ensure Proper Operations and has implemented Corporate governance system a variety of related measures. General meeting of shareholders

Election Election Election Prior consultation and reporting Accounting Corporate Auditors/ Members of the Board/ Committees of the auditors Board of Auditors Board of Directors Board of Directors

Cooperation Auditor’s Secretarial Cooperation Election/Supervision Department President and Chief Reporting and advice Executive Officer

Operations Special

Auditing Committee Committee Department Internal audits Audit Division/ Division/ Division/ Support Branches Branches Branches Group companies (Operations) (Operations) (Operations) Cooperation

35 TAISEI CORPORATE REPORT 2013 DATA BOOK Risk Management Plan

Promoting company-wide risk Do Business Continuity Plan (BCP) Do management To fulfi ll our social responsibilities as a general constructor To ensure appropriate management of the risks associated that provides infrastructure for socio-economic activities, with our business activities, TAISEI established and operates we have established action guidelines and rules concerning a company-wide risk management system by identifying business continuity planning (BCP*) in anticipation of the risks involved in our business activities, classifying those disasters such as an earthquake. risks by their degree of severity as “company-wide risks,” TAISEI’s disaster prevention and business continuity “risks under division control,” etc., and clarifying those measures have been highly evaluated. The Kanto Regional responsible for managing said risks. Development Bureau and the Kinki Regional Development In the case of “company-wide risks” that could have Bureau of the Ministry of Land, Infrastructure, Transport a serious effect on business management, we practice and Tourism have approved TAISEI’s Basic Business effective risk management throughout the company by Continuity Capabilities during a Disaster as a Construction centralizing information in the CRO Secretariat and sharing Company and the Development Bank of Japan (DBJ) has information with the Risk Management Committee and given TAISEI the highest rank in its disaster preparedness Risk Management Council. rating (now known as the DBJ BCM rating). In addition, every year we follow the PDCA cycle, In addition to preparing for natural disasters such as ensuring that our risk management remains constantly earthquakes, we have also adopted and put into action effective. guidelines concerning countermeasures to new strains of infl uenza, including creating a website on our intranet System for the promotion of company-wide risk management about countermeasures to new strains of infl uenza. Emergency situation President Normal situation Emergency response Company-wide risk Major disaster response training in Fiscal 2012 system CRO* management system TAISEI conducted training drills* based on the scenario of damage from an earthquake directly beneath Tokyo, CRO Section Risk Management Committee Review of the risk as revised by the Tokyo Metropolitan Government factors/classification ahead of the national government. Through these drills, Risk Management Council Incorporation of recurrence headquarters, branch offi ces nationwide, and TAISEI Group prevention measures companies increased the effectiveness of their BCP by into risk management Emergency Head office Branches and strengthening the company-wide support and acceptance Headquarters Risk Management business divisions system in which they cooperate. KPIs P42 Promotion Risk Management * Committee Promotion Committee *CRO: Chief Risk Management Officer

Information Disclosure And Dialogue With Stakeholders Plan

Dialogues with stakeholders Do Environmental meeting Do TAISEI holds various dialogues with the purpose of TAISEI held an Environmental Meeting for investors at the reconsidering our business activities through exchanges Taisei Technology Center in Yokohama, in order to give of information* and communication with a wide range them an understanding of our business model and the of stakeholders. We have also established an information company’s latest technology concerning the environment. disclosure policy and conduct our business activities in A lively exchange of opinions took place over the issue of accordance with that basic policy. energy conservation.

Do Examples of dialogues * KPIs P42 Employee satisfaction survey TAISEI conducted an employee satisfaction survey to ¢ Customers investigate whether it has a company environment in which We conduct customer satisfaction surveys to accurately ascertain customer requests. employees can work enthusiastically. ¢ Shareholders The results of the survey, which included eight separate We encourage communication through general meetings of shareholders categories (management direction, immediate supervisor, and the publication of shareholder newsletters. one’s work, communication, ability improvement, ¢ Shareholders and investors workplace environment, human resources system, We hold fi nancial briefi ngs (twice a year) at which the president explains our performance and business strategies and engages in an exchange of and overall assessment), were 82.4% satisfi ed, 4.5% opinions, which we feed back to the management team. unsatisfi ed, and 13.1% neither satisfi ed nor unsatisfi ed. ¢ Suppliers We established a procurement policy and aim to help create a sustainable society together with suppliers. ¢ Employees We conduct employee satisfaction surveys to survey the company environment for employees. ¢ Local communities We hold various tours to give local residents an understanding of our business activities. ¢ NPOs/NGOs We carry out activities to preserve green areas and the environment together with the Tokyo Metropolitan Government, local environmental organizations, and NPOs.

TAISEI CORPORATE REPORT 2013 DATA BOOK 36 KPIs TAISEI KPIs

Environmental KPIs

Status of achievement: Achieved rPartially achieved ×Not achieved Contribution to the realization of a low-carbon society

Definition Rate of reduction in CO2 emissions for building operation and construction stages compared to fiscal 1990

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets

Projected CO2 emissions reduction rate during 37.5% 30% / 43.6% 30% building use

CO2 emissions reduction rate Civil engineering 47.9% 35% / 55.1% 35% during construction Building construction 53.6% 45% / 56.7% 45% At the building operation stage, we applied the Eco-sheet CASBEE in design. In addition, at the construction stage, at each construction site we reduced CO2 emissions by means of initiatives Explanation of results including using “eco drive” techniques for construction machinery and reducing the distances over which excavated soil was transported.

Act Improvements/ We are aiming to reduce CO2 emissions by 40% at the building operation stage and by 50% at the construction stage by issues fiscal 2020.

Promote 3R activities/Promote green procurement Rate of recycling of construction waste (excluding sludge) = (Amount generated – Amount for final disposal) / Definition Amount generated × 100 / Rate of procurement following Green Procurement Guidelines

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of recycling of construction waste 94.9% 95% / 95.6% r 95% Rate of green procurement 39.1% 30% / 30.6% 30% Our recycling rate in fiscal 2012 was 95.6% in the building construction category (new buildings construction: 89.0%; demolition: 97.9%), 95.7% in the civil engineering category, and 95.6% Explanation of results overall, a figure above our target for the fiscal year. Our rate of green procurement was 30.6% (building construction: 30.0%; civil engineering: 31.7%).

Promotion of use of wide-area certification system, effective use onsite, and separation into saleable resources and other Act Improvements/ issues waste, in order to increase our construction waste recycling rate. Realization of increase in green procurement rate through reexamination of products categorized for green procurement.

Proper control of construction waste Digitalization of manually input manifest data, creation of system for management by network of producers of construction Definition waste, collection and transportation contractors, and waste disposal contractors via a data processing center. Rate of electronic manifest penetration = (number of electronic manifests issued/number of manifests issued) × 100

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of electronic manifest Civil engineering 73.9% 70% / 79.0% 70% penetration Building construction 85.0% 80% / 88.9% 80% Explanation of results We achieved our targets in collaboration with each of our branches and construction site offices.

Act Improvements/ Establishment of concrete targets for each branch and construction site office in order to increase the rate of diffusion of issues electronic manifests by fiscal 2014.

Provide environmentally-friendly technologies

Definition Amount of media coverage of development of environmentally-friendly technologies and projects (PJ) in which they are applied.

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Amount of media coverage of environmental 32 cases 20 cases / 30 cases 20 cases technologies / PJ using these technologies The relevant departments conducted their activities with targets for media coverage of the Explanation of results development of environmental technologies and PJ using those technologies. (For related information, see P15-16 and P19)

Act Improvements/ Collaboration between departments responsible for research and development of CO2-reducing and energy-saving issues technologies and departments responsible for projects in which the technologies are applied.

37 TAISEI CORPORATE REPORT 2013 DATA BOOK Consumer Issues KPIs

Status of achievement: Achieved rPartially achieved ×Not achieved Establishment and observance of quality management standards and procedures Rate of implementation of surveys of customer satisfaction conducted after building handover (civil engineering) and rate of Definition return of customer satisfaction survey questionnaires (buiding construction)

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Civil engineering 100% 100% / 100% 100% Customer satisfaction surveys Building construction 80% 100% / 60% r 100% With regard to civil engineering surveys, 38 CS interviews were conducted with clients. Building Explanation of results construction surveys are still ongoing, and we continue following up with the aim of collecting 100% of questionnaire sheets from each of our branches in the future.

Act The content of questionnaires will be checked and factors involved in items that received low evaluations will be analyzed Improvements/ issues and countermeasures reflected in construction evaluation meetings, etc. We will also aim to increase satisfaction by obtaining understanding through close communication with customers.

Development and provision of technologies for resolving social issues Number of patent applications and patents granted (registered), and amount of media coverage of the development of new Definition technologies and projects in which those technologies are applied

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of patent applications filed and granted 256 cases 250 cases / 297 cases 250 cases Number of patents granted 193 cases 200 cases / 224 cases 200 cases Amount of media coverage of development of technologies / 66 cases 60 cases / 75 cases 60 cases Projects in which technologies were applied We do not compete in terms of the number of patent applications we file, but rather try to apply for Explanation of results patents for useful technologies that we will actually use, with a view toward differentiation with competitors and obtaining useful rights in our business.

Act Improvements/ We achieved over 80% patent registration rate, greatly exceeding the industry average of around 55%. In the future, we issues will aim for even higher quality patent applications and the securing of wide-ranging patent rights.

TAISEI CORPORATE REPORT 2013 DATA BOOK 38 KPIs

Community Involvement and Development KPIs

Status of achievement: Achieved rPartially achieved ×Not achieved Contributions to local communities

Definition Number of activities conducted at TAISEI Group offices and construction sites to contribute to the environment and society

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of activities contributing to society and the 779 cases 800 cases / 1,048 cases 1,000 cases environment Environmental management target values, which we call the TAISEI Agenda, have been introduced as a focus of our activities, and we conducted activities to contribute to society in close cooperation with Explanation of results local communities at our offices and construction sites throughout the country. Following on from fiscal 2011, activities related to the Great East Japan Earthquake are included.

We will continue to incorporate action items into the TAISEI Agenda. We will publicize activities that contribute to the Act Improvements/ issues environment and society in cooperation with local communities at construction sites and other operational areas in an effort to make them standard practice.

Expanding employees’ volunteer activities Number of employees participating in activities that contribute to the environment and society and activities to aid recovery Definition from the Great East Japan Earthquake, organized by TAISEI to provide support for employees’ volunteer initiatives

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of employees who participanted in 258 people 250 people / 247 people 150 people volunteer activities r A total of 128 employees participated in our annual environmental preservation activities and Explanation of results other voluntary activities, and 119 employees participated in activities following on from the previous year to aid recovery from the Great East Japan Earthquake, for a total of 247 employees.

Because the construction industry is a contract-based industry, depending on the specific period, sometimes employees are Act Improvements/ unable to take time off. However, employee volunteers try to use their limited time off for the benefit of society. In future, it issues will be necessary for us to promote the use of the volunteer leave system we established in April 2012. The target for fiscal 2013 was set at 150 employees, since recovery support related to the Great East Japan Earthquake has come to a conclusion.

Human Rights and Labor Practices KPIs

Human rights awareness raising activities The ratio of employees who have participated in training concerning human rights (e-learning programs, group training Definition sessions, etc.)

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of attendance in human rights training 100% 100% / 100% 100% This year as well, we conducted human rights awareness-raising activities aimed at the importance Explanation of results of fair employment selection and resolution of various human rights problems.

Aiming to enable all of our employees to think, learn, and act on their own initiative, we will continue working at Act Improvements/ issues awareness building that leads to sensitivity in addition to imparting accurate knowledge of human rights and promoting the cultivation of awareness. Promotion of diversity (Creating a great place to work for employees with diverse attributes)

Definition Number and ratio of employees affected by diversity-related measures

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of participants in education training for 26 people 20 people / 26 people 40 people female leaders Number of female managers – people – people / 30 people — 31 people Number of female executives – people – people / 133 people — 135 people Physically and mentally challenged employment rate 1.88% 1.90% / 1.95% 2.00% Number of re-employed individuals 676 people 600 people / 582 people 600 people Seeking to promote diversity, TAISEI is creating workplaces in which a wide range of personnel Explanation of results can thrive. TAISEI promoted the employment of physically challenged individuals as one social contribution toward their self-reliance.

Act Improvements/ In the future, we will continue to support diverse working styles and create working environments suited to employees issues with diverse attributes.

39 TAISEI CORPORATE REPORT 2013 DATA BOOK Status of achievement: Achieved rPartially achieved ×Not achieved Support for work-life balance (1) (Number of employees taking child raising leave)

Definition Number of employees using child raising leave system

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of employees taking childcare leave (Male) 2 people 1 person / 1 person 2 people Number of employees taking childcare leave (Female) 27 people 20 people / 37 people 25 people Number of employees taking leave when their 70 people 60 people / 76 people 65 people spouse gives birth Number of employees taking nursing care leave (Male) 30 people 30 people / 36 people 30 people Number of employees taking nursing care leave (Female) 85 people 80 people / 82 people 80 people TAISEI conducts its own childcare support program, for example by holding nationwide meetings via a Web conferencing system for employees who would like to take childcare leave and providing Explanation of results information via our company intranet. This has produced positive results, with the number of employees making use of childcare-related leave increasing.

Act Improvements/ issues In the future, we will continue to publicize the system and to create an environment that encourages taking such leave.

Support for work-life balance (2) (Rate of paid leave utilization) Rate of employees taking annual paid leave, Refresh leave (special leave that can be taken when reaching certain milestones Definition concerning years of employment), and Milestone leave (special leave able to be taken when a employee at a construction site office is transferred or reaches certain milestones of the construction project)

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of Paid leave utilization 32.6% 35.0% / 34.2% r 35.0% Rate of Refresh leave utilization 88.9% 85.0% / 88.4% 85.0% Rate of Milestone leave utilization 78.2% 75.0% / 74.1% 75.0% TAISEI works to increase the leave usage rate by having employees eligible for leave consult with Explanation of results their superiors regarding a leave schedule at the start of the year. In fiscal 2012, the paid leave utilization rate exceeded the previous year’s rate by 1.6%.

Act Improvements/ TAISEI attempts to increase the leave usage rate by instructing personnel in supervisory positions to monitor the leave issues usage status appropriately, and encouraging employees who have not taken leave to do so.

Support for work-life balance (3) (Number of former employees registered with Job-Return system) The enrollment of former employees who resigned due to childbirth, childcare, nursing care, or the relocation of a spouse at Definition our Job Return system, which offers the opportunity for ex-employees to return to employment if it suits the company’s needs.

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of former employees registered with the Job-Return system 48 people 45 people / 49 people 45 people In order to support diverse types of work, TAISEI offers comprehensive guidance regarding the Job Explanation of results Return system, and attempts to increase the number of former employees registered.

Act Improvements/ issues We will continue to offer guidance.

Promoting the fostering of human resources Number of training hours per person for employee training programs conducted by the Head Office and branches, number of Definition employees who have received training at overseas construction sites or subsidiaries, research institutes, etc

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Training hours per employee 40.0 hours 40.0 hours / 42.1 hours 42.0 hours Number of trainees at overseas construction sites 26 people 22 people / 16 people 15 people Number of trainees at overseas research institutes, etc. 17 people 15 people / 10 people 10 people The purpose of training is to foster autonomous personnel with strong specializations and creativity. Explanation of results In fiscal 2012, we changed the program, narrowing the number of destinations and lengthening the training period for each trainee.

Act Improvements/ We will keep conducting more effective training, to enable us to respond to accelerating globalization. We will also expand issues our training system, in line with the promotion of diversity initiatives.

TAISEI CORPORATE REPORT 2013 DATA BOOK 40 KPIs

Labor Practices KPIs Status of achievement: Achieved rPartially achieved ×Not achieved Improving the safety and health level through TAISEI OHSMS The frequency rate is the ratio of the number of deaths and injuries caused by industrial accidents per million man-hours Definition worked. It is an indicator that expresses the frequency with which accidents occur.

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of fatal accidents 4 cases 0 case / 2 cases × 0 case Frequency rate 0.58* 1.12 or below / 0.81 1.00 or below 91 accidents occurred that required time off work (including accidents by business proprietors). Of Explanation of results these, 58 required four or more days off work and two were fatal accidents.

Act Improvements/ issues We aim to achieve our target through thorough implementation of the 2013 Health and Safety Policy. * Calculated for accidents entailing four or more days off work. From 2012, the target is set on the basis of all accidents entailing days off work, irrespective of the number of days.

Fair Business Practice KPIs

Ongoing implementation of compliance training Rate of participation in compliance training (group training) conducted for employees, number of branches (domestic) Definition conducting compliance training for subcontractors

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of participation in compliance training (Group 100% 100% / 100% 100% training) Number of branches conducting compliance 12 cases 12 cases / 12 cases 12 cases training for subcontractors Selecting themes related to day-to-day work, we inform employees of the laws and regulations related to their actual works in a small-group discussion format. Explanation of results Seeking to increase awareness of compliance in all specialist contracting companies, we conduct compliance training for the subcontractors at Occupational Health and Safety Conventions held at our branches.

Act Improvements/ issues We continuously conduct compliance training (group training) and training for subcontractors at all of our branches.

Intellectual property risk management initiatives

Definition Number of times training is conducted to increase awareness of support for patent applications and intellectual property

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of training sessions on intellectual 31 times 30 times / 36 times 30 times property rights In addition to conducting intellectual property-related training at the head office and branches, we Explanation of results are working to increase the level of IP awareness throughout the company by conducting a series of activities such as visiting 37 major construction sites.

We will continuously conduct training to increase awareness of intellectual property rights among all employees, not just employees Act Improvements/ issues working in Intellectual Property departments, and we will work to foster a culture of invention and strengthen risk management by means of close cooperation between the Intellectual Property Department and other technology-related departments. Information protection and management Number of major security breaches of electronic information related to TAISEI Group, and number of times company-wide Definition education programs regarding information security have been conducted

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of major information security breaches 0 case 0 case / 0 case 0 case Number of company-wide education programs regarding information security (group training and 12 times 10 times / 16 times 15 times e-learning throughout the TAISEI Group) As a result of the continuous implementation of technological and human measures, we have experienced no major information breaches. We also believe that the practice of conducting Explanation of results company-wide information security education classes has become well established, including at Group companies.

Act Improvements/ New threats relating to information security are appearing one after the other, and so there is a need keep employees issues informed of these threats.

41 TAISEI CORPORATE REPORT 2013 DATA BOOK Organizational Administration KPIs

Status of achievement: Achieved rPartially achieved ×Not achieved Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies

Definition Rate of implementation of e-learning for employees

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of TAISEI Group Ideal e-learning 90.5% 100% / 97.8% 100% implementation r Conducted one time in fiscal 2012. Had effect on the dissemination and establishment of the Explanation of results TAISEI Group Ideal Structure of Values and Policies.

Act Improvements/ Seeking further penetration and establishment of the TAISEI Group Ideal Structure of Values and Policies, we will continue issues conducting e-learning programs in the future, with a target of 100% employee participation.

BCP initiatives Rate of employee participation in major disaster response training conducted at the head office and branches (including the Definition number of employees participating in training in the use of safety confirmation systems)

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Rate of participation in major disaster response 99.6% 100% / 100% 100% training We increased the effectiveness of our BCP by conducting drills focusing on the priority issues of responding to a new damage estimation for an earthquake directly beneath Tokyo, establishing Explanation of results a company-wide support and acceptance system, and establishing a more rapid initial response system.

Act Improvements/ We will continuously conduct major disaster response training to increase the effectiveness of our BCPs, aiming towards issues a 100% employee participation rate.

Holding stakeholder dialogues, etc.

Definition Number of times TAISEI conducts dialogues with stakeholders

Check Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets Number of dialogues, etc. 5 cases 5 cases / 5 cases 5 cases We held five exchanges of opinions with various stakeholders, including a private training for Explanation of results teachers, a consumer roundtable, a results briefing, a construction site visit, and an investor environmental meeting.

Act Improvements/ issues We will continue to hold dialogues and exchanges of opinion with a variety of stakeholders.

TAISEI CORPORATE REPORT 2013 DATA BOOK 42 KPIs Group Company KPIs

Status of achievement: Achieved rPartially achieved ×Not achieved Taisei Rotec Corporation

The ratio of the number of fatalities and injuries caused by industrial accidents per million ISO 26000 Main Issues and Definition actual man-hours worked. It is an indicator that expresses the frequency with which accidents core subject Objectives entailing four or more days away from work occur. Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Thoroughgoing Frequency rate 0.5 / 0.6 r 0.5 occupational Eight accidents occurred that required four or more days away from work. Labor practices health and safety Explanation of results This was the second best record in the past five years, but was still below KPIs management the target.

Act Improvements/ Given that many accidents occur when a person is working alone, we will focus on establishing one-man safety practices issues to raise workers’ safety awareness, and on education that encourages workers to think on their own before acting. The ratio of construction projects using the Computerized Manifest System to all construction ISO 26000 Main Issues and Definition projects that generates industrial waste. core subject Objectives It is an indicator that measures the accuracy of appropriate management. Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of electronic manifest — / 12.6% — 15.0% Proper control of penetration Environmental construction waste Currently, it is difficult for industrial waste disposal companies to install the Explanation of results KPIs Computerized Manifest System, as many of them are small-sized businesses.

Act Improvements/ We will encourage subcontractors to install the Computerized Manifest System, emphasizing the fact that the system not issues only improves work efficiency but also contributes to compliance assurance.

Taisei-Yuraku Real Estate Co., Ltd.

Reduction rate for power consumption in offices (scope of aggregation: head office) ISO 26000 Main Issues and Definition compared to the base year (fiscal 2010) core subject Objectives Number of energy saving improvements suggested to customers in facilities management Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Power consumption 10% / 11% 11% reduction rate (offices) Number of facility energy saving improvements 13 cases / 20 cases 20 cases Promote energy suggested to customers Environmental conservation KPIs We achieved the targets for both the power consumption reduction rate and the number of energy saving improvements suggested, as a result of Explanation of results promoting EMS activities related to ISO 14001 in the head office. 17 out of the 20 energy saving improvements suggested were adopted.

Act Improvements/ We will aim to achieve the target for power consumption on a companywide basis, as we plan to expand the scope of issues aggregation to the entire company, including branches, by fiscal 2014.

Taisei U-LEC Co., Ltd.

Rate of recycling of construction waste (excluding sludge) Definition = [(Amount generated – Amount for final disposal) / Amount generated] × 100 ISO 26000 Main Issues and Rate of electronic manifest penetration core subject Objectives Check = (number of electronic manifests issued/number of manifests issued) × 100 Main KPIs FY2012 targets / results Level of achievement FY2013 targets Promote 3R (reduce, Rate of recycling of reuse, recycle) 97% / 97% 98% construction waste activities Rate of electronic manifest 90% / 92% 92% penetration Environmental KPIs Proper control of We achieved our target for the recycling rate with a rate of 97.0% in fiscal 2012. construction waste The electronic manifest penetration rate was high for new buildings construction Explanation of results and renovations (100%) and sludge (99.4%) but was low for demolition work (66.3%), resulting in an overall rate of 92%, achieving the target.

When roads to a demolition work site are narrow, Taisei U-LEC is forced to hire collection and transportation contractors Act Improvements/ issues that mainly use small dump trucks. However, most of those subcontractors have not registered for the Computerized Manifest System. Taisei U-LEC will encourage them to do so.

43 TAISEI CORPORATE REPORT 2013 DATA BOOK Status of achievement: Achieved rPartially achieved ×Not achieved Taisei Setsubi Co., Ltd.

Rate of participation in compliance training (small-group training and group training) and Definition ISO 26000 Main Issues and e-learning provided to executives and employees core subject Objectives Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in 100% / 100% 100% compliance training Promoting Selecting themes related to day-to-day work, we attempted to keep executives Fair Business compliance and employees fully informed through small-group (twice a year) and group Explanation of results Practice KPIs (once a year) trainings. Additionally, we also conducted e-learning (twice a year) after the training sessions to reaffirm the content, which has been effective.

Act Improvements/ We will continuously provide compliance training company-wide and attempt to establish compliance awareness among issues executives and employees.

Definition Rate of participation in environment-related education provided to all employees at the head ISO 26000 Main Issues and office and branches core subject Objectives Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in 100% / 90% r 100% Conduct environment-related training comprehensive This year we held study sessions three times for executives and employees Environmental environmental at the head office and branches, in order to raise their environmental Explanation of results KPIs activities awareness and increase their knowledge, including of industrial waste, energy conservation, ISO 14001, and revisions to environmental legislation.

Act Improvements/ We will continue providing education with the target of 100% participation, in order to increase environmental awareness issues and knowledge of environmental laws and regulations.

Taisei Housing Corporation

Customer questionnaire evaluation rate from questionnaires given to clients at the time of Definition ISO 26000 Main Issues and building handover core subject Objectives Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Customer satisfaction surveys (manufacturer recommendation 95% / 97% 100% Quality control and intention surveys)

improving customer Consumer We aggregated questionnaire surveys returned within one month after satisfaction customer questionnaire forms were given at the time of building handover. We issues KPIs Explanation of results achieved our target by improving the handling of sales personnel and increasing manufacturer recommendation intention.

The deciding factors for choosing a manufacturer were being a reliable company and providing excellent quality and Act Improvements/ issues performance. Going forward, we will continue trying to increase recommendation intention by improving our total quality and reinforcing our suggestion capabilities, in order to earn the trust of customers.

Seiwa Renewal Works Co., Ltd.

An indicator that expresses the frequency of occurrence of accidents that require four or more Definition ISO 26000 Main Issues and days off work. core subject Objectives Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Number of occupational Thoroughgoing accidents (requiring four or 0 case / 2 cases × 0 case occupational more days off work) Labor practices health and safety Two accidents occurred that required four or more days off work. This was the KPIs management Explanation of results worst record in the past five years.

Act Improvements/ Many accidents occurred in situations where work procedures were changed without careful consideration or left out. issues Accordingly, we will re-inform workers of the importance of work procedures.

ISO 26000 Main Issues and Definition Rate of participation in safety confirmation training during major disaster response training core subject Objectives Check Main KPIs FY2012 targets / results Level of achievement FY2013 targets Rate of participation in major 100% / 100% r 100% disaster response training Organizational Risk management We achieved 100% participation as the result of sending e-mails to all governance Explanation of results KPIs employees several times, calling for definite participation.

Act Improvements/ issues We will continue to communicate to employees the significance of training and we need to call for definite participation.

TAISEI CORPORATE REPORT 2013 DATA BOOK 44 Financial Data

Please see our Financial Statement (April 1, 2012 – March Consolidated Balance Sheets 31, 2013) for details of our financial reporting. TAISEI CORPORATION and Consolidated Subsidiaries http://www.taisei.co.jp/english/ir/index.html March 31, 2012 and 2013

Thousands of Millions of Yen U.S. Dollars ASSETS 2012 2013 2013 Current assets:

Cash and time deposits...... ¥ 243,737 ¥ 266,639 $ 2,835,077

Receivables:......

Trade notes...... 17,407 12,230 130,037

Trade accounts...... 367,373 417,869 4,443,052

Loans...... 43 39 415

Allowance for doubtful accounts...... (1,112) (960) (10,207)

Inventories:

Development projects in progress, real estate...... 145,359 133,829 1,422,956

Raw materials and supplies...... 10,250 5,375 57,150

Cost on uncompleted contract...... 111,012 83,926 892,355

Deferred income taxes...... 36,595 34,918 371,271

Prepaid expenses and other current assets...... 52,267 58,774 624,922

Total current assets...... 982,931 1,012,639 10,767,028

Property and equipment, at cost

Land...... 141,849 138,780 1,475,598

Buildings and structures...... 147,771 143,108 1,521,616

Machinery and equipment...... 57,960 57,462 610,973

Construction in progress...... 603 372 3,955

348,183 339,722 3,612,142

Accumulated depreciation...... (135,544) (133,646) (1,421,010)

Net property and equipment...... 212,639 206,076 2,191,132

Investments and other assets :

Investments in unconsolidated subsidiaries and affiliated companies...... 13,052 3,288 34,960

Investment securities...... 181,006 254,083 2,701,574

Deferred income taxes...... 38,277 11,141 118,458

Other assets...... 81,982 62,202 661,372

Allowance for doubtful accounts...... (15,191) (6,334) (67,347)

Total investments and other assets...... 299,126 324,380 3,449,017

Total assets...... ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

The accompanying notes are an integral part of these balance sheets.

45 TAISEI CORPORATE REPORT 2013 DATA BOOK Financial Data

Consolidated Balance Sheets (cont.) TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013

Thousands of Millions of Yen U.S. Dollars LIABILITIES AND NET ASSETS 2012 2013 2013 Current liabilities:

Short-term borrowings...... ¥ 102,523 ¥ 86,355 $ 918,182

Long-term debt due within one year...... 97,624 60,751 645,944 Trade payables:

Notes...... 54,968 55,326 588,262

Accounts...... 392,553 430,074 4,572,823

Advances received and progress billings on uncompleted contracts...... 132,007 115,698 1,230,175

Allowance for losses on order received...... 0 240 2,552

Income taxes payable...... 4,885 1,039 11,047

Deposits received...... 85,675 91,703 975,045

Allowance for losses on construction contracts...... 24,084 31,278 332,568

Other current liabilities...... 26,877 34,817 370,196

Total current liabilities...... 921,196 907,281 9,646,794

Long- term liabilities:

Long-term debt...... 219,101 231,966 2,466,411

Allowance for employees’ severance and retirement benefits...... 31,860 33,729 358,628 Allowance for accrued severance indemnities to directors and corporate auditors...... 386 427 4,540 Deferred income taxes for revaluation of land...... 5,922 5,696 60,564

Allowance for losses on investments in subsidiaries and affiliates...... 1,184 508 5,401

Allowance for environmental spending...... 308 308 3,275

Assets retirement obligation...... 1,210 1,223 13,004

Other non-current liabilities...... 20,927 18,657 198,373

Total long-term debt...... 280,898 292,514 3,110,196

Total liabilities...... 1,202,094 1,199,795 12,756,990

Contingent liabilities and commitments

Net assets

Shareholders’ equity :

Common stock

Authorized: 2,200,000,000 shares

Issued: 1,140,268,860 shares...... 112,448 112,448 1,195,619

Capital surplus...... 94,170 94,170 1,001,277

Retained earnings...... 78,293 93,020 989,048

Less-Treasury stock, at cost...... (197) (302) (3,211)

Total shareholders’ equity...... 284,714 299,336 3,182,733

Accumulated other comprehensive income:

Unrealized holding gains on securities, net of taxes...... 9,943 45,931 488,368

Unrealized losses on hedging derivatives, net of taxes...... (62) (208) (2,212)

Revaluation reserve for land...... (587) (960) (10,207)

Foreign currency translation adjustments...... (2,739) (2,569) (27,315)

Total accumulated other comprehensive income...... 6,555 42,194 448,634

Minority interests:...... 1,333 1,770 18,820

Total net assets...... 292,602 343,300 3,650,187

Total liabilities and net assets...... ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

TAISEI CORPORATE REPORT 2013 DATA BOOK 46 Financial Data

Consolidated Statements of Income TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013

Thousands of Millions of Yen U.S. Dollars 2012 2013 2013 Revenue:

Net sales......

Construction...... ¥ 1,171,927 ¥ 1,254,291 $ 13,336,427

Real estate (including other)...... 151,577 162,205 1,724,668 1,323,504 1,416,496 15,061,095

Costs and expenses

Cost of sales...... 1,206,014 1,304,677 13,872,164 Selling, general and administrative expenses...... 81,004 76,213 810,345 1,287,018 1,380,890 14,682,509

Operating income...... 36,486 35,606 378,586

Other income (expense):

Interest and dividend income...... 3,171 3,295 35,035

Interest expense...... (7,505) (6,312) (67,113)

Miscellaneous Taxes...... (365) (159) (1,691)

Foreign exchange gains (losses)...... (1,934) 2,710 28,814

Gains on sale of investment securities...... 1,365 - -

Gains on sale of property and equipment...... 78 464 4,934

Losses on sale of investment securities...... - (4) (43)

Losses on investments in related companies...... (1,570) - -

Impairment losses on fixed assets...... (12,174) (1,402) (14,907)

Losses on write-down of investment securities...... (558) (170) (1,808)

Losses on disposal of fixed assets...... (106) (200) (2,127)

Other, net...... (215) (1,000) (10,632)

(19,813) (2,778) (29,538)

Income before income taxes and other items...... 16,673 32,828 349,048

Income taxes

Current...... (6,337) (3,623) (38,522)

Deferred...... (9,143) (8,776) (93,312) (15,480) (12,399) (131,834) Income before minority interests...... 1,193 20,429 217,214

Minority interest in net income of consolidated subsidiaries...... (12) (378) (4,019) Net income ¥ 1,181 ¥ 20,051 $ 213,195

Yen U.S. Dollars Amounts per share of common stock:

Net income...... ¥ 1.04 ¥ 17.60 $ 0.187 Diluted net income...... ¥ - - - Cash dividends applicable to the year...... 5.00 5.00 0.053

The accompanying notes are an integral part of these statements.

47 TAISEI CORPORATE REPORT 2013 DATA BOOK Financial Data

Consolidated Statements of Comprehensive Income TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013

Thousands of Millions of Yen U.S. Dollars 2012 2013 2013 Income before minority interest ¥ 1,193 ¥ 20,429 $ 217,214 Other comprehensive income

Unrealized holding gains on securities, net of taxes ...... 5,159 35,990 382,669

Unrealized gains (losses) on hedging derivatives, net of taxes ...... 76 (144) (1,531) Revaluation reserve for land...... 848 0 0

Foreign currency translation adjustments...... 421 127 1,350 Share of other comprehensive income of associates accounted for using equity method...... (35) 99 1,053

Total other comprehensive income 6,469 36,072 383,541

Comprehensive income ¥ 7,662 ¥ 56,501 $ 600,755

Comprehensive income attribute to:

owners of the parent...... 7,581 56,065 596,119

minority interests...... 81 436 4,636

The accompanying notes are an integral part of these statements.

TAISEI CORPORATE REPORT 2013 DATA BOOK 48 Financial Data

Consolidated Statements of Changes in Net Assets TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013

Millions of Yen Unrealized Unrealized losses on Total holding hedging Foreign accumulated Total gains on derivatives, Revaluation currency other Common Capital Retained Treasury shareholders’ securities, net of reserve for translation comprehensive Minority Total net stock Surplus earnings stock equity net of taxes taxes land adjustments income interests assets Balance at March 31, 2011 ¥ 112,448 ¥ 94,170 ¥ 83,857 ¥ ( 1 9 3 ) ¥ 290,282 ¥ 4,792 ¥ (138) ¥ (2,483) ¥ (3,064) ¥ (893) ¥ 1,209 ¥ 290,598

Dividends...... - - (5,697) - (5,697) ------(5,697)

Net income...... - - 1,181 - 1,181 ------1,181

Sale of treasury stock...... - (0) - 1 1 ------1

Acquisition of treasury - - - (5) (5) ------(5) stock...... Reversal of revaluation - - (1,048) - (1,048) - - 1,048 - 1,048 - - reserve for land...... Changes other than shareholder's equity, - - - - - 5,151 76 848 325 6,400 124 6,524 net...... Balance at March 31, 2012 ¥ 112,448 ¥ 94,170 ¥ 78,293 ¥ ( 1 9 7 ) ¥ 284,714 ¥ 9,943 ¥ (62) ¥ (587) ¥ ( 2 , 7 3 9 ) ¥ 6,555 ¥ 1,333 ¥ 292,602

Dividends...... - - (5,697) - (5,697) - - - - 0 - (5,697)

Net income...... - - 20,051 - 20,051 - - - - 0 - 20,051

Sale of treasury stock...... - (0) - 1 1 - - - - 0 - 1

Acquisition of treasury - - - (106) (106) - - - - 0 - (106) stock...... Reversal of revaluation - - 373 - 373 - - (373) - (373) - 0 reserve for land...... Changes other than shareholder's equity, - - - - 0 35,988 (146) - 170 36,012 437 36,449 net...... Balance at March 31, 2013 ¥ 112,448 ¥ 94,170 ¥ 93,020 ¥ (302) ¥ 299,336 ¥ 45,931 ¥ (208) ¥ (960) ¥ (2,569) ¥ 42,194 ¥ 1,770 ¥ 343,300

Thousands of U.S. Dollars Unrealized Unrealized losses on Total holding hedging Foreign accumulated Total gains on derivatives, Revaluation currency other Common Capital Retained Treasury shareholders’ securities, net of reserve for translation comprehensive Minority Total net stock Surplus earnings stock equity net of taxes taxes land adjustments income interests assets Balance at March 31, 2012 $ 1,195,619 $ 1,001,277 $ 832,461 $ ( 2 , 0 9 5 ) $ 3,027,262 $ 105,720 $ (660) $ (6,241) $ ( 2 9 , 1 2 3 ) $ 69,696 $ 14,174 $ 3,111,132

Dividends...... - - (60,574) - (60,574) - - - - 0 - (60,574)

Net income...... - - 213,195 - 213,195 - - - - 0 - 213,195

Sale of treasury stock...... - 0 - 11 11 - - - - 0 - 11

Acquisition of treasury - - - (1,127) (1,127) - - - - 0 - (1,127) stock...... Reversal of revaluation - - 3,966 - 3,966 - - (3,966) - (3,966) - 0 reserve for land...... Changes other than shareholder's equity, - - - - 0 382,648 (1,552) - 1,808 382,904 4,646 387,550 net...... Balance at March 31, 2013 $ 1,195,619 $ 1,001,277 $ 989,048 $ (3,211) $ 3,182,733 $ 488,368 $ (2,212) $(10,207) $ (27,315) $ 448,634 $ 18,820 $ 3,650,187

The accompanying notes are an integral part of these statements.

49 TAISEI CORPORATE REPORT 2013 DATA BOOK Financial Data

Consolidated Statements of Cash Flows TAISEI CORPORATION and Consolidated Subsidiaries March 31, 2012 and 2013

Thousands of Millions of Yen U.S. Dollars 2012 2013 2013 Cash flows from operating activities: Income before income taxes and other items ¥ 16,673 ¥ 32,828 $ 349,048 Adjustments to reconcile income before income taxes and other items to net cash provided by operating activities: Depreciation and amortization...... 8,002 6,866 73,004 Impairment losses on fixed assets...... 12,174 1,402 14,907 Interest and dividend income...... (3,171) (3,295) (35,035) Interest expense...... 7,505 6,312 67,113 Foreign exchange losses (Gains)...... 1,934 (2,710) (28,814) Losses (Gains) on write-down of investment securities...... 12,658 401 4,264 Losses (Gains) on sale of investment securities...... (1,365) 4 43 Losses (Gains) on sale of property and equipment...... (78) (464) (4,934) Losses on disposal of fixed assets 106 200 2,127 Losses (gains) on write-down of real estate for sale...... 5,772 3,229 34,333 Changes in assets and liabilities: Decrease (Increase) in trade receivables...... (92,192) (45,069) (479,203) Decrease (Increase) in cost on uncompleted contract...... (2,131) 27,137 288,538 Decrease (Increase) in inventories other than cost on 8,425 uncompleted contract...... 17,333 184,296 Increase (Decrease) in trade payables...... 83,356 38,095 405,051 Increase (Decrease) in advances received and progress billings 31,761 on uncompleted contracts...... (16,606) (176,566) Increase (Decrease) in allowance for doubtful accounts...... (2,132) (9,012) (95,821) Increase (Decrease) in allowance for losses on construction 13,465 contracts...... 7,193 76,481 Increase (Decrease) in retirement benefits...... 2,305 1,866 19,841 Increase (Decrease) in deposit received...... 21,510 6,028 64,094 Other, net...... (12,378) 1,0712 113,894 112,199 82,450 876,661

Cash received (paid) during the year for: Interest and dividends received...... 3,100 3,619 38,480 Interest paid...... (7,572) (6,373) (67,762) Income taxes paid...... (2,627) (6,615) (70,335) Net cash provided by (used in) operating activities 105,100 73,081 777,044

Cash flows from investing activities: Decrease (Increase) in time deposits...... (2,259) 1,753 18,639 Purchase of marketable and investment securities...... (5,832) (11,627) (123,626) Proceeds from sale of marketable and investment securities...... 5,170 6,521 69,335 Purchase of property, equipment and intangible assets...... (6,722) (6,284) (66,816) Proceeds from sale of property, equipment and intangible assets...... 1,947 4,193 44,583 Other, net...... (399) 741 7,880 Net cash provided by (used in) investing activities (8,095) (4,703) (50,005)

Cash flows from financing activities: Increase (Decrease) in short-term borrowings...... (23,901) (16,168) (171,909) Payment for retirement by purchase of convertible bond...... 0 (20,276) (215,587) Proceeds from long-term debt...... 89,396 102,810 1,093,142 Repayment of long-term debt...... (118,323) (106,818) (1,135,758) Cash dividends paid, including those to minority interest...... (5,698) (5,697) (60,574) Other, net...... (296) (402) (4,274) Net cash provided by (used in) financing activities (58,822) (46,551) (494,960)

Effect of exchange rate changes on cash and cash equivalents.... (694) 2,783 29,590 Net increase (Decrease) in cash and cash equivalents...... 37,489 24,610 261,669 Cash and cash equivalents at beginning of year...... 203,674 241,163 2,564,200 Cash and cash equivalents at end of year...... ¥ 241,163 ¥ 265,773 $ 2,825,869

The accompanying notes are an integral part of these statements.

TAISEI CORPORATE REPORT 2013 DATA BOOK 50 Corporate Data

For details on our latest corporate profi le, please see TAISEI’s offi cial website. http://www.taisei.co.jp/english/profi le/corp_data.html Corporate Proﬁ le (as of March 31, 2013)

Name Taisei Corporation Established December 28, 1917 Paid-in capital ¥112.4 billion H e a d O f fi c e Shinjuku Center Building, 1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0606, Japan Number of employees 7,945 Representative Takashi Yamauchi, Representative Director, President and Chief Executive Offi cer Main business Construction, urban development, other construction-related business operations, operations and associated engineering services, etc. Consolidated Companies Consolidated subsidiaries: 25; equity method affi liates: 7

Board of Directors, Corporate Auditors and Executive Ofﬁ cers (as of July 1, 2013)

Board of Directors and Corporate Auditors Senior Audit &Supervisory Board Member Chairman of the Board (Representative Director) Atsushi Okamoto Takashi Yamauchi Nobuyuki Motegi

Members of the Board Audit &Supervisory Board Member Hirofumi Ichihara (Representative Director) Masakuni Sekimoto Hiroyuki Kimura (Representative Director) Terunobu Maeda Misao Akune (Representative Director) Shigeru Morichi Kazuhiko Dai Kiwamu Miyakoshi Yoshiyuki Murata Shigeyuki Sakurai Masahiro Sakai Tohru Tsuji Fumio Sudo

Executive Ofﬁ cers Managing Executive Offi cers Executive Offi cers President and Chief Executive Offi cer Fumihiro Yamada Hirofumi Kamata Takao Kanai Takashi Yamauchi Shigeki Watanabe Satoru Tsutae Hiroshi Shirakawa Junji Katsura Yukio Matsuno Haruhiko Kouno Executive Vice Presidents Junichi Ikeguchi Masahiro Oshima Yoshinori Nishida Hirofumi Ichihara Masatsugu Yamada Masafumi Anami Hiroshi Suzuki Hiroyuki Kimura Hisao Tamura Yoshitaka Inoue Kaoru Maruyama Misao Akune Toshio Matsuda Yasushi Yoshinari Tsuyoshi Nakanishi Hiroshi Tada Osamu Tsujita Katsuyuki Kanai Atsuo Ogawa Satoru Ogata Sumio Yabuki Yusuke Fukuda Takeshi Kagata Toshio Tominaga Tsuyoshi Hirono Takashi Ohkawa Masaharu Okada Senior Managing Executive Offi cers Kazuhiko Hombu Tamotsu Umehara Jirou Taniyama Kazuhiko Dai Michio Kuboniwa Tetsuya Shibayama Takao Doi Masatake Taniuchi Shigeru Konnai Takeo Horinouchi Yoshiro Aikawa Hidemi Omi Shigeyoshi Tanaka Shoji Kondo Keiji Hirano Hidetoshi Yasukawa Yoshiyuki Murata Norihiko Yaguchi Yasushi Suzuki Shigeyuki Sakurai Norimitsu Yoshihama Masahiro Sakai Motofumi Fujiwara Yoshinobu Shigeji

51 TAISEI CORPORATE REPORT 2013 DATA BOOK TAISEI Corporation Organization Chart (as of April 1, 2013)

Head Ofﬁ ce

Secretarial Dept. * Engineering Planning Dept. Auditing Dept. Corporate Planning Dept. Engineering Div. Groups Corporate Planning Offi ce Corporate Communication Dept. Strategic/Condominium Projects Support & Information Planning Dept. Technology Coordination Dept.

Personnel Dept. Technology Management Dept.

General Affairs Dept. Building Construction Dept. Business Administration Div. Legal Dept. Technology Promotion Dept. Building Construction Div. Accounting Dept. Estimate Dept. Finance Dept. Building Renovation Technology Dept.

Safety Administration Dept. Mechanical & Electrical Div. Mechanical & Electrical Dept. Safety Administration Division Environmental Administration Dept. Operations Planning Dept. Planning & Administration Dept. Architectural Design Depts. Environmental Development Dept. Structural Engineering Depts. Environment Division Environmental Planning Dept. Structural Planning Dept.

Soil Remediation & (Integrated) Division Engineering & Architecture M&E Engineering Depts. Geo-Environmental Services Dept. Design Div. M&E Planning Dept. Technology Planning Dept. Planning & Design Dept. Intellectual Property Dept. Technical Design Dept. Building Engineering Research Institute Taisei Technology Center Quality Management Dept. Civil Engineering Research Institute International Projects Dept. Building Technology Development Dept. Civil Engineering Technology Development Dept. Civil Engineering Dept. Construction Engineering Dept. Nuclear Facilities Planning Dept. Machinery Dept. Nuclear Facilities Engineering Dept. I Civil Engineering Div. Design Dept. Nuclear Facilities Division Nuclear Facilities Engineering Dept. II Estimate Dept. Nuclear Facilities Engineering Dept. III Project Analysis & Information Dept. Nuclear Facilities Construction Planning Dept. Next Generation Project Dept. Marketing & Sales Promotion Dept.

President Procurement Dept. I Planning & Business Promotion Dept. Marketing & Sales Promotion Div. Procurement Dept. II Real Estate Information Dept. Procurement Div. International Procurement Dept. Life Cycle Care Promotion Dept. Procurement Dept. III Customer Satisfaction Dept. Planning & Administration Dept. Proposal & Solutions Div. Project Solutions Dept. Business Solutions Dept. Marketing & Sales Marketing & Sales Depts. (Building Construction) Div. I Marketing & Sales Marketing & Sales Depts. Branches (Building Construction) Div. II Marketing & Sales Marketing & Sales Depts. Administration Dept. (Building Construction) Div. III Safety Administration & Environmental Dept. Medical & Welfare Business Div. Marketing & Sales Depts. Branch Marketing & Sales Depts. Planning & Management Dept. Building Construction Dept. Project Development Dept. I Design Dept. Project Development Dept. II Civil Engineering Dept. PPP Projects Dept. Reconstruction Project Dept. Urban Development Div. (Civil Engineering) Urban Redevelopment Dept. I *Tohoku Branch Urban Redevelopment Dept. II

Marketing & Sales Division (Integrated) Division Sales & Marketing Administration Dept. Asset Management Dept. Contracts & Claims Management Dept. Development Business Dept. International Operations Safety Administration & Environmental Dept. Marketing & Sales (Civil Engineering) Div. Marketing & Sales Depts. Headquarters Marketing & Sales Depts. Marketing & Sales (West Japan) Division Marketing & Sales Depts. Building Construction Dept. Reconstruction Department I Civil Engineering Dept. East Japan Reconstruction Div. Reconstruction Department II

Projects Creation Dept.

Sales Mindset/Skills Training Dept.

Corporate* Auditor Auditor’s Secretarial Dept.

TAISEI CORPORATE REPORT 2013 DATA BOOK 52 Corporate Data

Overseas Network (as of August 1, 2013)

Head Ofﬁ ce 1-25-1 Nishi-Shinjuku, Shinjuku-ku,Tokyo 163-0606, JAPAN TEL. 81-3-3348 -1111

Branches Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Hiroshima, Yokohama, Niigata, Takamatsu, Chiba, Saitama, Kobe, Kyoto

Major Subsidiaries in Japan Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co.,Ltd., Taisei U-Lec Co,Ltd., Taisei Setsubi Co.,Ltd., Taisei Housing Corporation, Seiwa Renewal Works Co., Ltd.,

International Operations Headquarters 1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0606, JAPAN TEL. 81-3-5381-5325 FAX. 81-3-5381-5516

Overseas Offi ces

TAIPEI OFFICE Zone B, 6F, No. 16, Sec. 4, Nan-Jing E. Road, Taipei, TEL. 886-2-2578-5656 Taiwan R.O.C. FAX. 886-2-2578-8288

MIDDLE EAST OFFICE Corner Abdullah Bin Jassim St. United Bank Bldg. 4th TEL. 974-4443-4174 (Doha) Floor, Facing QNB Bldg, Doha – Qatar, PO BOX 47366 FAX. 974-4443-7176

MIDDLE EAST OFFICE Emarat Atrium, Unit No.3, Ground Floor, Block-A(West), TEL. 971-4-323-7677 (Dubai) Al Wasl, Sheikh Zayed Road, P.O.Box 31202, Dubai, U.A.E. FAX. 971-4-323-7224

U.S.A OFFICE 6261 Katella Avenue, Suite 200, Cypress, CA 90630, TEL. 1-714-886-1530 U.S.A Ext.266 FAX. 1-714-886-1546

KUALA LUMPUR OFFICE 9-3, 9th Floor, Faber Imperial Court, Jalan Sultan Ismail, TEL. 60-3-2070-6155 50250 Kuala Lumpur, MALAYSIA FAX. 60-3-2070-6010

JAKARTA OFFICE Plaza PP 5F, JL Letjend TB Simatupang, No.57, Pasar Rebo, TEL. 62-21-840-3985 Jakarta 13760, INDONESIA FAX. 62-21-840-3986

INDIA OFFICE 4TH FLOOR, SCO-56, OLD JUDICIAL COMPLEX, CIVIL TEL. 91-124-466-9800 LINES, GURGAON, HARYANA-122001, INDIA FAX. 91-124-466-9888

PAKISTAN OFFICE House No.25-B, Street No.20, Sector F-7/2, Islamabad, TEL. 92-51-2656131 Pakistan FAX. 92-51-2656132

VIETNAM OFFICE 289 Khuat Duy Tien Road, Trung Hoa Ward, Cau Giay TEL. 84-4-3553-5032 (Hanoi) District, Hanoi, S.R.VIETNAM FAX. 84-4-3553-5002

VIETNAM OFFICE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY, TEL. 84-8-3932-1759 (Hochiminh City) Hochiminh City Branch Building 7th Floor, 171 Vo Thi Sau FAX. 84-8-3932-1758 St., Ward7, District-3, Hochiminh City, S.R.VIETNAM

53 TAISEI CORPORATE REPORT 2013 DATA BOOK Corporate Data

Overseas Network (as of August 1, 2013)

MYANMAR OFFICE 2nd Floor, Tokyo Enterprise Building, No.32, Pyay Road, TEL. 95-1-654-838 61/2 miles, Hlairg Township, Yangon, Myanmar FAX. 95-1-654-838

SRI LANKA OFFICE No.177, 3rd Floor, Galle Road, Colombo 03. TEL. 94-11-2446194 FAX. 94-11-2446198

NORTH AFRICA OFFICE 25th, Rd No.10, Station Sqr., Maadi, Cairo, TEL. 20-2-2378-3609 Arab Republic of Egypt FAX. 20-2-2380-1362

THAILAND OFFICE 9th Fl., Thanapoom Tower, 1550 New Petchburi Road, TEL. 66-2-207-0056, 57 Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, FAX. 66-2-207-0058 THAILAND

ISTANBUL OFFICE Barbaros Mah. Seyit Ahmet Deresi Sok.Bahar Sitesi Yani, TEL. 90-216-651-8160 34662 Altunizade – Uskudar Istanbul, TURKEY FAX. 90-216-651-8180

Overseas Subsidiaries & Affi liates

PT.PP-TAISEI INDONESIA 5th Floor, Plaza PP, JL Letjend TB Simatupang, No.57, TEL. 62-21-841-6037 CONSTRUCTION Pasar Rebo, Jakarta 13760, INDONESIA FAX. 62-21-841-6038

TAISEI (THAILAND) CO., 9th Floor, Thanapoom Tower, 1550 New Petchburi Road, TEL. 66-2-207-0330 LTD. Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, FAX. 66-2-207-0332 THAILAND

TAS PLAN, Inc. 23rd Floor, Equitable Bank Tower, Paseo de Roxas, TEL. 63-2-886-0667 Salcedo Village, Makati City, PHILIPPINES FAX. 63-2-886-0663

VINATA INTERNATIONAL H e a d O f ﬁ c e TEL. 84-4-3553-3839 J/V LTD. CO. VINATA Workshop, Khuat Duy Tien Road, Trung Hoa, Cau FAX. 84-4-3553-3788 Giay, Hanoi, S.R.VIETNAM

Hochiminh City Branch Ofﬁ ce TEL. 84-8-3932-1765 7th Floor, VIETNAM CHAMBER OF COMMERCE AND FAX. 84-8-3932-1764 INDUSTRY TOWER, 171 Vo Thi Sau St., District3, Hochiminh City, S.R.VIETNAM CSCEC-TAISEI H e a d O f ﬁ c e TEL. 86-10-6845-1267 CONSTRUCTION, LTD Zhong Da Bldg 23, Zizhuyuan S.road Haidian, Beijing, FAX. 86-10-8841-4846 100048,CHINA

Shanghai Branch TEL. 86-21-6209-9757 Room1307 XinDa Building, No.318 XianXia Road, FAX. 86-21-6209-9758 Shanghai, PRC 200336

TAISEI PHILIPPINE 23rd Floor, Equitable Bank Tower, Paseo de Roxas, TEL. 63-2-886-0670 CONSTRUCTION Salcedo Village, Makati City, PHILIPPINES FAX. 63-2-886-0663 INCORPORATED

PT. INDOTAISEI INDAH Kawasan Industri Indotaisei, Kota Bukit Indah Sector TEL. 62-264-351-003 DEVELOPMENT IA, Block B Karihurip, Cikampek, Karawan, Jawa Barat, FAX. 62-264-351-026 INDONESIA

TAISEI CORPORATE REPORT 2013 DATA BOOK 54 Corporate Data

External Awards / External Evaluations

Main awards received from April 2012 to March 2013 Name Type of award Details of award Japan Society of Civil • Japan Society of Civil Engineers (JSCE) • TBM (shield tunneling) and sunken tube method for joining the ocean floor in Engineers Awards 2011 the tunnel deep in the Bosphorus Strait Outstanding Civil Engineering Achievement Award Group I • Undergrounding the continuous grade separation in urban railways that fulfills strict construction requirements —Construction for continuous grade separation near Keio Corporation Chofu Station—

• Japan Society of Civil Engineers (JSCE) • Project to save and preserve the coral and seaweed colonies in the Awards 2011 subtropical remote islands Environment Award Group II

Architectural Institute • 2012 Architectural Institute of Japan • Ichiro Nagashima of Japan Awards (Research paper) Study on Active and Semi-active Vibration Control of Buildings

Japan Concrete • FY2012 • Design and construction of the Sangi Railway Kayogawa bridge Institute Japan Concrete Institute Award —World’s first UFC railway bridge — Technology Award

• FY2012 • Owl Tower Japan Concrete Institute Award Best Architectural Work

Japan Institute of • 14th Infrastructure Technology • TECOREP system Country-ology and Development Award Grand Award Subtitle: Method for closed demolition of superhigh-rise buildings Engineering • 14th Infrastructure Technology • Double Bits Development Award Excellence Award Subtitle: Method for automatic bit replacement in shield tunneling

Japan Construction • FY2012 • Development of the TECOREP system for demolition of superhigh-rise Machinery and Japan Construction Machinery and buildings Construction Construction Association Chairman’s Association Award

• FY2012 • Development and application of the TECOREP system for closed demolition Japan Construction Machinery and of superhigh-rise buildings over 100 m tall Construction Association Outstanding Research Paper Award

The Nikkan Kogyo • 41st Japan Industrial Technology • Development and practical application of the TECOREP system for closed Shimbun Grand Prix demolition of superhigh-rise buildings Review Committee Special Award

Institute of Noise • FY2011 Institute of Noise Control • Development of the TECOREP system for closed demolition of superhigh-rise Control Engineering of Engineering of Japan Awards buildings Japan Environmental Design Award

Incorporation in Key Global SRI Indexes In recent years, socially responsible investment has become the focus of attention. Socially responsible investment seeks to realize stable income from investments by Incorporation in Key Global evaluating and screening companies from the perspective of their observance of SRI Indexes laws and regulations and their contributions to society and the environment, rather than from an exclusively fi nancial perspective, and judging their sustainability on that basis. As of March 2013, in addition to the Morningstar Socially Responsible Investment Index,* a key domestic SRI index, TAISEI has been incorporated in the FTSE4Good Global Index and the Dow Jones Sustainability Asia Pacifi c Index.

* Morningstar Socially Responsible Investment Index: The Morningstar Socially Responsible Investment Index is Japan’s fi rst SRI stock price index, covering 150 companies selected by Morningstar Japan K.K. from among domestically listed companies as being superior in terms of social responsibility.

55 TAISEI CORPORATE REPORT 2013 DATA BOOK Third Party Opinion

Third Party Opinion

The TAISEI Group expressed more clearly that sustainable development of its companies is possible through contribution to the sustainable progress of society, and has placed initiatives to resolve social issues at the heart of its activities. At the same time, management of CSR activities at construction sites is slowly progressing.

Positioning of CSR Professor, Faculty of Commerce, Considering contribution to the sustainable progress of Waseda University society as a core corporate pursuit requires working on Ph.D., Business Administration those activities from an even longer-term perspective than before. Although it is not easy to adjust activities Kanji Tanimoto to this perspective and to the market environment that undergoes changes over a short term, it is possible for the TAISEI Group to contribute to society by producing high added value with its strong technological capabilities. entity, but rather will be considered as elements for the In last year’s report, I pointed out that “TAISEI overall management of the company and, even further, formulates business plans from a long-term perspective, for the overall Group. The same applies for issues of the and I believe that it would be benefi cial for the company supply chain management. to offer its stakeholders, in addition to reports of its short- Going forward, an important point will be to state term fi nancial and non-fi nancial activities, information the positive contributions and the negative evasions from a slightly longer-term perspective concerning related to increased effi ciency of management through matters such as the future direction of its initiatives the KPIs and how they relate to fi nancial matters. When and the vision the company is aiming for, as they relate creating an integrated report, incorporating CSR into to its business strategies and CSR and sustainability the management process and steadily implementing strategies.” This year, the overall positioning has been the PDCA cycle is more important than the method of expressed more clearly. This was done on pages 5-8 disclosure. of the main section and pages 3-6 of the data section, Regarding how to express the KPIs, clearly showing where the current mid-term business plan was expressed a number of points that are considered important for based on the long-term vision, “TAISEI VISION 2020” creating a sustainable society in the main section would that is itself based on the Group ideal and spirit and was facilitate comprehension by more stakeholders. linked to CSR issues to clarify the overall positioning. However, I look forward to a clearer message about CSR procurement in the supply chain what exactly comprises the TAISEI VISION 2020. It is also The TAISEI Group was late in starting management of CSR important for the top management to talk about that procurement in the supply chain, but fi nally established vision and clarify its positioning. and disclosed a basic procurement policy in April of this year. I understand that relevant departments that Management of CSR activities work with suppliers are cooperating together and that Regarding the management of CSR activities, a self- TAISEI will hold briefi ngs to assess the current situation, check sheet for CSR measures was drafted this year starting with its main suppliers. It is my hope that based on ISO 26000, and discussions were held with cooperation and understanding will be requested from each department on the various key issues to determine many suppliers to have them work together with TAISEI KPIs. It is the second year for the designation of KPIs, in the development of CSR procurement. Achieving and I understand that they have become concrete such an effort across-the-board will not be easy but will means for raising awareness throughout the company. have strong benefi ts for both parties. Employees from This is an important point. various departments such as compliance, environment, To address management of CSR at Group safety, and information security have been dealing companies that was a pending issue, TAISEI began with suppliers, but having these departments work holding briefi ngs last year in which CSR activity interview together in their relations with suppliers will be of great sheets befi tting the actual situation are brought along signifi cance. I hope that each company will reform to conduct interviews and designate KPIs. It is of fi rst and strengthen its management practices from the and foremost importance to determine the issues for perspective of CSR, and that the whole Group and the each entity and share the current situation. I hope that entire supply chain will understand that such actions will these will not end up as simple individual issues for each lead to higher valuation of the company in the market.

TAISEI CORPORATE REPORT 2013 DATA BOOK 56 Inquiries CSR Promotion Section, Corporate Communication Department, Corporate Planning Office, Taisei Corporation E-mail: [email protected] URL: http://www.taisei.co.jp