Corporate Overview

February 2021

Shimizu Corporation

* *Reflects application of ASBJ Statement No. 28 Partial Amendments to Accounting Standard for Tax Effect Accounting

ROE

(Ordinary income, Net income: JPY Billions) (Net sales: JPY Billions)

200 2000 1,698.2 180 1,664.9 1800 160 1,567.4 1,519.4 1,485.0 1600 137.9 140 131.1 133.9 124.1 1400 120 98.9 99.6 98.9 1200 100 84.9 84.0 1000 80 61.0 800 60

600 40

20 400

0 200 FY2016 17 18 19 20 Forecast

Ordinary Income Net Income Attribute to Shareholders of the Corporation Net Sales

(JPY Billions) 2000 1,816.0 1800 1,608.2 187.8 1,565.9 1600 74.3 141.5 166.4 1400 29.8 246.6 1,318.7 129.3 1,230.0 311.5 124.0 1200 280.7 130.0 152.5 40.0 1000 187.5 220.0 800 600 1,307.1 1,082.9 1,031.6 400 854.6 840.0 200 0 FY2016 17 18 19 20 Forecast

Note: The figures for subsidiaries show the amount after subtraction of non-consolidated orders received from consolidated orders received.

Gross margin on completed construction for Total gross profit and gross margin on completed construction Building Construction & Civil Engineering 2,400 (total for Building Construction & Civil Engineering) 14.0% 2,400 13.2% 13.2% 13.0% 14.0% 20.0% (JPY Billions13.2%) 13.2% 12.8% 13.0% 20.0% 2,400 12.8% 14.0% 13.2% 13.2% 13.0% 20.0% 19.0% 240 13.2% 13.2% 12.8% 13.0% 14.0% 12.0% 19.0% 2,400 2,000 12.8% 14.0% 12.0% 18.0% 13.2%2,000 13.2% 19.0% 12.8% 13.0% 12.0% 20.0%18.0% 2,400 2,000 14.0% 10.6% 18.0% 13.2% 13.2% 12.0% 16.7% 12.8%200 13.0% 10.6% 10.6% 10.0% 20.0% 19.0% 176.112.0% 10.6% 16.0% 16.7% 2,000 1,600 171.9 10.0% 18.0% 16.7% 164.3 158.0 10.0% 16.0% 19.0% 1,600 12.0% 537 10.0% 16.0% 2,000 1,600160 356 502 10.6% 18.0% 16.7% 374 502 53753710.0% 8.0% 13.5% 356 35.6356 50.2502 53.7 16.0% 14.0% 13.2% 1,600 13.9% 374 37.410.6%374 127.0 8.0% 8.0%8.0% 13.5%16.7% 13.5% 1,200 10.0% 14.0% 14.0% 13.2%13.2% 13.9% 13.9% 537 16.0% 13.2% 1,600 3561,200 1,200120 502 340 13.2% 13.2% 374 8.0% 6.0% 13.5% 12.3% 11.6% 537 34.0340 14.0% 12.0%13.2% 11.6%356 13.9% 11.4% 502 340 6.0% 6.0% 12.3%11.6% 1,20037411.4% 8.0% 6.0% 12.0% 12.3%12.0%13.2% 11.4% 14.0% 13.5% 80080 340 13.2% 13.9% 1,200 800 6.0% 13.2% 12.3% 11.6% 4.0% 4.0% 12.0% 10.0% 11.4% 800 1,286128.6 340 4.0% 10.0% 9.7% 1,286 120.51,205 6.0% 121.71,217 122.4 1,224 12.3% 11.6% 800 9.7% 1,205 1,217 1,224 4.0% 12.0% 10.0% 11.4% 1,286 1,217 1,224 93.0 930 9.7% 40040 1,205 4.0% 930 2.0% 10.0% 800 1,286 1,205400 1,217 1,224 2.0% 8.0% 8.0% 9.7% 930 2.0% 1,286 400 4.0% 930 10.0% 2016年度FY20162016年度 17 17 18 18 19 400191,205 202020 1,217 1,224 2.0% 8.0% 9.7% 0 2.0% 0.0% 8.0% Forecast予想予想 930 2016年度 17 18 400 19 20 0 0 FY2016 17 18 19 20 0.0% 0.0% 2016年度 17 18 19 20 2.0% 8.0% 建築利益率建築利益率Gross margin土木利益率 on Building土木利益率 Construction予想 20162016年度年度 1717 1818 19 19 Forecast20 20 予想 0 0.0% 2016年度 17 18 19 20 0 0.0% 予想予想建築利益率土木利益率Gross margin on Civil Engineering 2016年度 17 18 19 20 建築利益率予想土木利益率 2016年度 17 完成工事利益（建築）18 19完成工事利益（土木）20 完成工事利益率（建土合計） 0 完成工事利益（建築）(Building construction) 0.0%完成工事利益（土木）予想完成工事利益率（建土合計）予想建築利益率土木利益率 2016年度 17 18 19 20 完成工事利益（建築）完成工事利益（建築）完成工事利益（土木）(Civil engineering)予想完成工事利益（土木）完成工事利益率（建土合計）完成工事利益率（建土合計）完成工事利益（建築）完成工事利益（土木）完成工事利益率（建土合計）(total for Building Construction& Civil Engineering)

The basic policy of Shimizu is to declare dividends in line with business results, and we view strengthening the company’s financial position to build a foundation for long-term growth and maintaining stable dividends (ordinary dividends) as issues of importance to management. Midterm Management Plan (FY2019–FY2023) sets a consolidated 40 payout ratio target of 30% from the profits36 earned through38 growth. 35 40 (Dividends per share, JPY) 3640 38 38 30 18 36 35 16 2635 24 25 22 30 30 18 4 18 16 20 26 12 16 26 24 24 25 16 2225 22 15 4 4 20 12 20 12 16 16 10 15 20 20 15 14 14 5 10 10 20 20 10 20 14 20 14 0 14 14 5 10 5 10 2016年度 17 0 18 19 20 0 FY20162016年度 17 18 予想 19 20 2016年度 17 18 19 20 Forecast予想普通配当Ordinary Dividend特別配当(stable dividend予想 portion) 普通配当特別配当普通配当特別配当Special Dividend (variable portion according to profits; target 30% consolidated dividend ratio) FY2020 FY2016 FY2017 FY2018 FY2019 Forecast Net income per share 126.11 108.31 127.04 128.31 79.96 (JPY) Dividends per share (JPY) 16 26 36 36 24 Dividend payout ratio 20.6 24.0 28.3 29.6 30.00 (%)

(100 Million Yen)

Increase (Decrease) Nine months ended Nine months ended Year ending Progress % December 31, 2020 December 31, 2019 March 31, 2021

Net Sales

Construction contracts

Real estate development and other

Gross Profit

Construction contracts

Real estate development and other

Ordinary Income

Net Profit

Breakdown of construction contracts and gross profit for the nonconsolidated forecast has been changed.

(100 Million Yen)

Increase (Decrease) Nine months ended Nine months ended Year ending Progress % December 31, 2020 December 31, 2019 March 31, 2021

Net Sales

Construction contracts

（Building construction）

（Civil engineering）

Real estate development and other

Gross Profit

Construction contracts

（Building construction）

（Civil engineering） Real estate development and other

Ordinary Income

Net Profit Breakdown of construction contracts and gross profit for the nonconsolidated forecast has been changed.

➢ Due to the COVID-19 pandemic, customers have postponed capital spending for some projects such as hotels and production facilities.

➢ As the pandemic settles down, signs of resumed capital spending have begun to emerge for automobiles, precision machinery, chemicals, electric machinery, data centers, and distribution facilities.

➢ Large redevelopment projects in the Tokyo metropolitan area and elsewhere, capital spending for enhanced functionality and energy savings, and capital spending for disaster prevention and mitigation are expected to continue.

➢ Although at present the number of projects is not expected to drop dramatically, there are concerns that profits from new orders may decrease due to greater competition to win orders, especially for large construction projects.

➢ A changing business environment presents companies with opportunities. New demand is expected to arise in the construction industry due to: capital spending in medical care and pharmaceuticals; remodeling to reduce crowding; spending on decentralization to outlying regions of Japan; the return of production facilities to Japan to mitigate the risk of broken supply chains; etc.

Government pandemic response

➢ April 7: A state of emergency lasting until May 6 was declared for seven prefectures. Affected prefectures: Tokyo, Kanagawa, Chiba, Saitama, Osaka, Hyogo, Fukuoka

➢ April 16: The state of emergency was expanded. Warnings were issued in 13 prefectures to focus infection control efforts. Additional six affected prefectures: Hokkaido, Ibaraki, Ishikawa, Gifu, Aichi, Kyoto

Shimizu's response

➢ April 13: Jobsites closed in the seven prefectures affected by the state of emergency.

➢ April 17: Jobsites generally closed in prefectures where special warnings were issued.* Measures were also strengthened at jobsites in areas outside the affected prefectures, depending on their specific circumstances.

➢ May 7: Construction gradually resumed, beginning with jobsites that had prepared controls which satisfy safety rules set by Ministry of Land, Infrastructure, Transport and Tourism (MLIT) guidelines and by Shimizu. *Shimizu compensated subcontractors for standby expenses during closures.

➢ Shimizu is taking thorough measures tailored to the situation at each jobsite, in accordance with the company's safety rules, which are based on MLIT guidelines for controlling COVID-19.

➢ Moving forward, while monitoring the pandemic, Shimizu's policy is to be mindful of maintaining construction industry jobs and otherwise sustaining business activity, and to continue construction while generally keeping jobsites open.

Examples of Measures

Worker health checks Avoiding the Three Cs onsite Infection control Workers wait for tests. A construction manager and foremen Mouth shields have been distributed to hold a morning meeting. There are jobsites across Japan. They prevent both fewer participants, who line up to heat stroke in summer and the spread of maintain distance. COVID-19.

Response at overseas construction sites ➢ Worksites have been closed according to local governments' policies and instructions in response to COVID-19. ➢ Japanese expatriates and their families have been temporarily brought back to Japan from countries and regions with considerable increases in infections or weakened healthcare systems. ➢ After the pandemic has settled down in those countries and regions, worksites gradually reopen according to the COVID-19 guidelines issued by local governments. ➢ Worksites where Japanese expatriates cannot return due to immigration regulations or the like have moved construction forward by managing remotely online from Japan.

Current situation and outlook ➢ Still, just under 70% of overseas jobsites are operating normally. About 90% of jobsites managed remotely from Japan are operating. ➢ In Singapore, an important market for Shimizu, all worksites have resumed operations, but some jobsites are operating under strict government regulations and have been unable to return to pre-pandemic productivity. ➢ Since waves of infections are predicted to come and go depending on the country or region, for the time being, it appears difficult to completely reopen all jobsites. ➢ We are gradually returning Japanese expatriates to jobsites as we monitor the situation with regard to infections and healthcare systems. As worker safety is our top priority, decisions to resume construction are taken deliberately. 8 (C)Copyright 2020 Shimizu Corporation. All rights reserved. 11 3. SHIMZ VISION 2030

⚫ According to estimate of the Japan Federation of Construction Contractors, the number of skilled workers in the construction industry will decline by 1.28 million by FY 2025, compared to FY 2014. ⚫ It is important to improve benefits to secure new young employees in addition to promoting improvements in productivity to ensure a sustainable construction production structure.

【Figures on Technicians 】【 Company-wide Goals for the Five-day Work 】 as of Dec. 2018

FY2018 FY2019 FY2020 FY2021 Job sites closed 5 days every 4 weeks (on the 2nd Saturday, in principle)

Job sites closed Job sites closed 8 days every 4 weeks 6 days or more every 4 weeks (2nd and 4th Saturdays in principle)

50% or higher 50% or higher

*Excluding job sites with special circumstances such as disaster recovery and the competition venues for the Tokyo Olympics and Paralympics. 【 Status of Job Site Closure】

Actual results for FY2019 Source: Japan Federation of Construction Contractors Closed 8 days Approx. 50% Closed 6 days or more every 4 weeks Approx. 90%

Standard for the number of days closed: Closed 8 days every 4 weeks: 104 days a year, Closed 6 days every 4 weeks: 77 days a year

(C)Copyright 2020 Shimizu Corporation. All rights reserved. 20 Opened Takumi Training Center as an Educational and Training Facility for Skilled Workers ⚫ Shimizu established the new Takumi Training Center and began the operation on July 27, 2020. ⚫ This facility was opened as one part of the measures implemented to secure and train skilled workers, who are essential to construction sites. ⚫ We are operating the center together with the Kanekikai, an organization of Shimizu’s suppliers and subcontractors. Course participants will mainly be recruited from Kanekikai member companies. 【 Lecture Building 】 Provides introductory training to new employees and for special education to obtain qualifications.

【 Training Building】 Equipped with various kinds of equipment and materials for training. The cross- training to develop multiple skills that forms the core of the curriculum offers fire-resistant coating, raised floors, plaster boards, floor finishing, wallpaper hanging, and other types of interior finishing. The training also develops The training center is placed at Chiba Prefecture. operators to use construction robots and various other assistive tools to Expects to be used by 1,000 people a year. improve productivity.

Site Area 1,650.00m2

Total floor space 1,010 m2 Lecture Training Building Building 2 floors above Single story, ground, total total floor Scale floor space of space of 290m2 720m2 Lecture Building Training Building

⚫ Shimizu has begun developing the Shimizu Smart Tunnel, which uses the latest ICT, IoT, artificial intelligence (AI), and other technology. ⚫ The system collects information on tunnel construction workers and equipment, the work environment, and the surrounding natural environment. It is a digital twin* integrated management system that seeks to raise productivity and safety for tunnel work by providing worksites with real-time feedback in the form of guidance information based on AI analysis. ⚫ Development of the system's underlying technology is currently underway. The full system is slated for completion in FY2020.

*Digital twin: technology that reproduces real-world objects and events in a digital space.

Examples of the Shimizu Smart Tunnel's underlying technology

Blast Master, an overbreak mitigation system Automated compaction of concrete lining This technology reduces waste in the form of overbreak from Sixty vibrators installed along the arch center (slip form) automatically compact blasting excavation (i.e. excess excavation beyond the the concrete poured in at their height. Conventional concrete compaction is planned amount). Can reduce overbreak by over 40% labor-intensive and prone to falls and other accidents. Shimizu's technology compared to conventional technology. saves labor and improves safety.

LiDAR point group image

Surveillance camera feed Thermal camera feed Activity monitoring Real-time remote inspection system Special cameras capture 3D data on positions and routes of While using a tablet to remotely check live feeds and inspection data from a machinery and workers in narrow tunnel shafts to assess and tunnel shaft, a construction worker can inspect quality and progress. analyze work methods and environments, thus improving safety. It enables checks and authorization of inspection results from the desk.

Shimizu Smart Site is a next-generation production system in which autonomous robots equipped with the latest technology perform construction work in collaboration with human workers by using BIM-centered ICT in construction work to improve productivity at construction job sites, reduce hard labor and repetitive work, and achieve high efficiency in inspection and management tasks. It was first introduced at a job site in Osaka in FY2018, and was rolled out to multiple job sites in the Tokyo Metropolitan Area in FY2019. We intend to expand use of the system throughout Japan in the late FY2020.

Shimizu Smart Site Next-generation Production System All-weather cover Ceiling & floor Column welding robot construction Horizontal sliding crane

Collaboration between people and robots equipped with the Automated transport latest technology of materials to We have achieved labor savings of temporary material around 70% in work processes yard where robots are used. In the future, we will work to boost productivity even more by developing robots that are capable of performing many different kinds of work.

Labor-saving Effect（Estimated for a 30 story 3,000 m2 base-floor-area class building）

Steel column welding Material transport System ceiling construction

Welders Lifting Center Interior finish work Robo-Welder Robo-Carrier Robo-Buddy • 48 workers/day/floor x 30 floors • 8 workers/day x 450 work days • 90 workers/day/floor x 30 floors 1,450 workers/man-day 3,600 workers/man-day 2,700 workers/man-day (36 locations/floor, average diameter of columns 800) • 2 workers/day x 450 work days • 20 workers/day/floor x 30 floors 900 workers/man-day 600 workers/man-day • 10 workers/day/floor x 30 floors 300 workers/man-day

Labor savings: Labor savings: Labor savings: 1,150 workers/man-day 2,700 workers/man-day 2,100 workers/man-day Labor-saving rate for relevant construction Labor-saving rate for relevant construction Labor-saving rate for relevant construction -79% -75% -78%

➢ To raise the construction industry's overall productivity and Kajima Corporation Takenaka Corporation appeal, three general contractors concluded a basic agreement on technological collaboration in robotic construction and IoT. (October 2020) Shimizu joined the collaboration in the fields that Kajima and Takenaka started in December 2019. Autonomous Concrete finishing robot transport robot ➢ The construction technology covered by the collaboration Remote machine control relates to robotics, machinery, equipment, software, and IoT. In addition to reaching across barriers in the industry to conduct Exterior wall construction Marking robot joint R&D on new technology and to improve and modify support robot features of existing technology, the companies are sharing existing practical robotics.

➢ The goal of the collaboration is to boost the construction Robo-Buddy Exter industry's productivity by accelerating the spread of construction robots, thus leading to lower R&D and production costs. Shimizu Corporation These images are for illustration purposes only. *The technologies that will be covered by the collaboration between the three companies are still under consideration.

⚫ Most of our work in the overseas construction business is based in Asia. We are also expanding to North America, Africa, and other regions, and will continue to work to improve profitability of projects. ⚫ We will work mainly on highly complex projects ordered by Japanese companies as well as multinational corporations and governments and companies in various regions. We will also build organizational capabilities. ⚫ The overseas construction business will partner with the Real Estate Development Business, Engineering Business, and LCV Business to create new business opportunities and accelerate global expansion.

(JPY Billions) Trend in Completed Construction (consolidated) 2,500250

200.02,000 2,000200

1,500150 141.41,414 122.1 127.21,272 1,221 1,150115.0

1,000100 90.0900

50500

0 2016FY2016年度 2017 2018 2019 2020 20232023 Forecast予想 Target

FY2019 FY2023 (Target) Completed construction (consolidated) Completed construction (consolidated)

Middle East & Europe 1% Middle East Africa Europe & Africa 3% 3% 4% N. America N 9% America 9%

Asia Asia 84% 87%

Singapore 18％ Indonesia 17％ China & Hong Kong 16％ Singapore 15％ Indonesia 12％ China & Hong Kong 14％ Vietnam 10％ Vietnam 13％ Other 34％ Other 28％

Jakarta Office Tower Project (temporary name)

Location : Jakarta, Indonesia

Owner : PT Mitra Panca Persada (joint venture between Mori Building and local capital)

Completion: 2021

Purpose : offices, dining facilities

Floor area : 190,000 m²

Floors : 58 above ground (height ~266 m)

➢ Shimizu‘s work was evaluated in Jakarta; received a special and design and construction order.

➢ The building (large office tower of the most premium grade in Jakarta ) will be located on a

main street with many skyscrapers. Manila Subway

Location : Manila, Philippines

Owner : Philippines Department of Transportation

Completion: October 2026

➢ STEP yen-denominated loan

➢ The Philippines' first subway. Intended to relieve serious traffic congestion. Along underground segments stretching 32.4 km, Shimizu is

constructing 3 station buildings, 1 railyard, 6 tunnels (3 each direction) connecting along 3 segments, with a total of 9.3 km of shield tunnel.

(Gross profit: JPY Billions) (Net sales: JPY Billions) 60 400

330.0

180.4 200 157.3 164.8 160.3 165.0 50.0 20

26.9 24.5 21.8 21.4 19.8

0 0 FY2016 17 18 19 20 23 Forecast Target

Basic Policy Create new value in office buildings and increase our global presence through a portfolio optimized for growth

Strategies 1. Expand asset portfolio ⚫ Increase the amount of assets for sale and lease ⚫ Expand the logistics facility business and develop other growth markets

2. Create new value through all facets of urban development ⚫ Create new value in office buildings through ecoBCP, renovation, and innovations in sustainability ⚫ Increase activities in regionally focused community development and large scale urban planning and development

3. Optimize overseas portfolio ⚫ Diversify the countries targeted for investment based on growth potential and risk profile i : Singapore: New development and leasing of offices and other buildings, and redevelopment of former company sites ii : ASEAN: Housing development lots, development and leasing of offices and other buildings iii : U.S.: Renovation and development to increase the value of existing properties, and new development of rental housing and industrial properties ⚫ Strengthen alliances

(Temporary name) Toyosu 6-chome, Blocks 4-2 & 4-3 Project S.LOGI Niiza West Location: Niiza, Saitama Pref. Location: Koto-ku, Tokyo Completion: Aug 2019 Completion: Sep 2021 (planned) Purpose: warehouse Purpose: offices, shops Floor area: 132,036 m2 Floor area: 88,000 m2 (planned) Floors: 4 above ground Floors: 11 above ground Outside certification: ABINC- certified Location: Koto-ku, Tokyo Completion: Sep 2021 (planned) Purpose: hotel Total floor area: 31,998 m2 (planned) Floors: 14 above ground Rooms: 582 (planned) Yokohama Grangate NY 305 East 46th Street Building Location: Yokohama, Kanagawa Pref. Location: New York, U.S.A. Completion: Feb 2020 Purchased: Nov 2019 Purpose: offices, shops, parking, Purpose: offices childcare Floor area: 14,278 m2 facilities, conference facilities Floors: 1 below ground, Floor area: 100,928 m2 16 above Floors: 18 above ground, 2 for penthouse Outside certification: LEED Gold- certified, WELL-pre-certified

Basic Policy Leverage our EPC expertise and focus efforts in alternative energy, environmental remediation, life sciences, and digital

Strategies

1. Expand the EPC business in the four core areas of energy, environment, production plants, and information technology

⚫ Increase Shimizu`s share of large onshore and offshore wind farm projects

⚫ Broaden environmental decontamination engineering capabilities building on existing soil decontamination technologies

⚫ Increase orders of efficient plant turnkey operations by automating advanced production facilities

⚫ Expand ICT systems projects

2. Enter new markets and diversify our revenue base

⚫ Break into new areas such as next-generation energy, life sciences, advanced digital technology, and marine resource development; pursue alliances with venture firms and cross-industry players

⚫ Move into advanced facility operation and management

Energy Engineering Plant Engineering

Akita Katagami Wind Farm Pharmaceutical Sterile Filling Systems for Eye Drops (Teika Pharmaceutical Co.) [Renewable energy] [Focus on pharmaceutical production related to the COVID-19 response] EPC (Engineering, Procurement, Construction) for renewable energy Greater production of the drugs and vaccines, stronger domestic production, and a shift facility for power generation (solar, onshore/offshore wind power, etc.) to mostly at-home drug treatment are expected to accompany the spread of COVID-19.

Environmental Engineering Information Engineering

Vietnam Dioxin-Contaminated Soil Washing Plant Building OS "DX-Core" Digitalized Platform Features [Environmental cleanup] [Development of building operating system "DX-Core" Soil-washing pilot test with thermal treatment and dioxin-contaminated Development underway of basic software equipped with platform features to digitalize building soil washing rendered the soil completely harmless. Report submitted. operations, enabling easy interlinking of building equipment, IoT devices, and applications.

Constructing a highly efficient self-propelled vessel equipped with the world’s largest transporting and crane capacity to obtain EPC orders※. Shimizu will target the top share of 8 and 12MW class wind turbines for offshore windfarm construction, a market estimated to be over 5 trillion yen in Japan

⚫ Advantages of constructing the SEP vessel ➢ There are currently no SEP vessels in Japan capable of installing wind turbines of the 8MW class or larger and because of high demand in Europe, it is not easy to charter a large SEP ship. Shimizu therefore decided to build a SEP vessel to increase its competitiveness in the construction of the offshore windfarms that are being planned in Japan. ➢ It will be possible to build inhouse expertise related to the entire offshore windfarm construction business (wind turbine construction, ship operation, etc.)

⚫ Specifications of the SEP vessel ➢ Wind turbine loading capacity ：8MW×7, 12MW×3 ➢ Maximum crane lifting capacity ：2,500t Current standard size of the wind turbine is 5MW class ➢ Maximum crane lifting height ：158m ➢ The design will enable the vessel to be jacked up and down during the 10-second long swells that are characteristic of the Pacific Ocean. ➢ October 2022, completion of our SEP vessel

⚫ Designation as project promotion areas under the Act to Promote Offshore Use by Offshore Renewable Energy Facilities

➢ Apr 2019: Enactment of the Act to Promote Offshore Use by Offshore Renewable Energy Facilities (Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry) ➢ Jul 2019: Announcement of designations for project promotion areas (for FY2019) 11 areas designated as having completed certain preparations 4 of these are promising areas where surveys on wind conditions and geology began ➢ June 2020~: 4 promising areas’ (1 in Nagasaki, 2 in Akita and 1 in Chiba prefectures) ※EPC orders: Construction contracting agreementブレード取付け for the project, open recruitment of enterprises began including engineering(E), procurement (P) and Construction (C).

Basic Policy Increase value and improvements in user satisfaction over the life cycle of buildings, infrastructure, and residential areas by providing a variety of services including energy, management, and operations

Strategies

1. Expand service businesses ⚫ Become a one-stop Building Service Provider (BSP) through facility operations based on equipment servicing and further expand Facilities Management, Property Management, and Building Management businesses with group alliances and advanced technology ⚫ Provide health and well-being to users through the WELL (wellness) service business

2. Expand power and concession businesses ⚫ Expand power generation and supply of renewable energy sources ⚫ Strengthen infrastructure concessions business for airports and roads

3. Leverage advanced technology to promote services business and create smart cities ⚫ Create an infrastructure and facilities database, participate in new businesses using IoT and AI for cutting edge community development (voice navigation service, location information service, etc.) ⚫ Create smart cities by building an urban OS (Operating System)

Locations of Renewable Energy Shinshu Wood Power (Biomass Power Plant) Power Generation Projects

As of end of Oct 2020 Operating: 22 Under construction: 9

Solar power plant Front: raw wood storage. Building on right: chip factory Inside the chip storage yard Hydropower plant and chip storage yard. Back left: power generation area. Front left building: administration. Biomass power plant

Thinnings from forest maintenance and conservation, wood from trees damaged by Ako Solar Power Plant pine weevils, and other unused wood serves as fuel. For sustainable forest management, the business operates at a scale that is no more than forest growth and it uses damaged and surplus wood to generate power, thus conserving and nurturing forests. Location: 519-1, Gorintachi, Hakeyama-aza, Tomi, Nagano Pref. Size: property area 19,389 m2, building area 935 m2 Structure: steel and wood construction Output: 1,990 kW (enough for ~5,400 typical homes)

The Toyosu district was selected as a leading model project under the METI La Vista Tokyo Bay MEBKS Toyosu Smart City Model Project in May 2019. That November, the Toyosu Smart City (Hotel) (Office building) Liaison Group and the Toyosu Smart City Promotion Council were established, with Shimizu as one executive company, to begin a review of efforts to solve issues of the Toyosu district. Deck ➢ Large leased office space (approx. 6,600 m2/floor) ➢ One of largest urban resort hotels in the area Traffic Plaza ➢ Transportation plaza (Tokyo BRT, etc.) ➢ Large deck (approx. 1,700 m2) Source: Bureau of Urban Development, ➢ Opening scheduled for autumn 2021 Tokyo Metropolitan Government

Underlying Technology for Building a Smart City Digital Twin Application: Digital Twin Building OS "DX-Core" Energy Management

Real-time data collection

SolarSolar power power plant plant

Building OS Solutions provided City-level energy exchanges Physical Space Virtual Space PowerPower companycompany WindWind power

Data on the operating status of facilities A platform that integrates a building's Buildings accommodate each other‘s and equipment, environmental info, etc. is numerous devices and equipment into one energy needs. The city makes effective use collected in real time from the physical control system. Digital data from digital twin of renewable energy like solar and wind, space to reproduce it digitally in a virtual simulations provides feedback on the which is stored when available for release space. Various simulations lead to physical space via the building OS. later when needed. This alleviates the city's improvements in the physical space. overall peak energy demand and mitigates the burden on energy suppliers. (C)Copyright 2020 Shimizu Corporation. All rights reserved. 38 Frontier Business: Key Strategies

Basic Policy Expand the sphere of human activities from “onshore” to “offshore,” and from “earth” to “space,” while contributing to environmental protection and the revitalization of local communities

Strategies 1. Expand ocean and space businesses

⚫ Create a new market for “ocean cities of the future” and establish a one-stop business model for design, construction, and facility management

⚫ Enter the small rocket launching business, develop businesses that utilize satellite data, and pursue R&D on use of lunar resources, construction of lunar structures, and other uses of the moon

2. Launch environmentally innovative agri-businesses

⚫ Further development of plant factory business with a closed farming system

⚫ Production of microalgae, a highly efficient method of producing non-animal proteins and fats, bioplastics (new materials derived from wood), and other forms of petrochemical-free materials

⚫ Utilize agricultural crop residues and revitalize local agriculture

3. Invest in next-generation construction technology and global-scale solutions

⚫ Enter new businesses by investing in promising venture firms and cultivating current collaborations

Initiatives in Areas Targeted for Commercialization 1 . Participation in Small Satellite Launching Business ➢ Space One Co., Ltd. is a joint venture that began in 2017 with Canon Electronics Inc., IHI Aerospace Co., Ltd., and Development Bank of Japan, Inc. (DBJ). ➢ There is currently only one company in the U.S. that has a dedicated launching pad for small rockets and we determined that this was commercially feasible. Artist's rendition of launch complex area (courtesy Space One Co., Ltd.) ➢ This business includes also launchpad construction, which provides access to Shimizu’s knowledge ranging from permit acquisition to design and actual construction. ➢ The permits and approvals were obtained and the design completed in FY 2018. Construction began in August 2020. Our goal is to launch the first rocket in FY 2021.

2. Satellite Data Utilization Business ➢ Invested in Synspective Inc. in 2019. ➢ The satellite data utilization business offers major potential as the number of small satellites launched increases. ➢ Shimizu sees great potential in business using satellite data and has invested in Synspective, whose operations range from satellite design, development, and operation to satellite data processing and sales. ➢ We will also be able to use this in the construction sector for projecting infrastructure aging, etc. We will pursue activities aimed at commercialization of effective data use in the future that includes these sorts of possibilities.

3. Addressing Space Debris ➢ Invested in Astroscale Holdings Inc. in 2020. ➢ Space debris of parts from retired satellites and rockets is a global problem. The debris causes destructive damage when it collides with satellites and spacecraft. Since this affects activity in space, as well as the use of GPS and weather satellites, addressing the debris is an important issue for Shimizu's space business. ➢ Shimizu will work toward a solution by investing in Astroscale and its debris removal service, with technology for approaching and maintaining close distance with satellites and debris serving as a foundation. ➢ In March 2021, Astroscale plans to launch the world's first space debris removal test satellite on a Soyuz rocket from the Baikonur Cosmodrome in Kazakhstan.

Shimizu seeks to create stable, sustained access to space by being involved throughout the satellite life cycle, from design and launch to data usage and post-mission satellite removal.

➢ Shimizu has set an investment allowance with a maximum cap of 10 billion yen（US$94 million） to invest in venture firms and venture funds in Japan and overseas. (July, 2020) The purpose of such investment is to strengthen R&D and expand business domains, which is based on the key strategy of “Invest in next-generation construction technology and global-scale solutions” in Mid-Term Management Plan (2019－2023).

➢ Areas Targeted for Investment Venture firms engaged in AI, robotics, drones, BIM and CIM, sensors, project management, new materials, Smart cities, environment and energy, and new business domains, and venture capital targeting such venture firm projects.

➢ The first investment will be in PicoCELA Inc. which is drawing interest as a venture that is developing high-performance wireless communications technology. We will work to create more advanced ICT infrastructure at construction sites through R&D performed in collaboration with PicoCELA Inc.

■Profile of PicoCELA Location ：Chuo-ku, Tokyo Capital ： 581,599,900 yen Established ：August 8, 2008 Business description： Licensing and sales of products and networking solutions utilizing cable-free multi-hop wireless routing technology. Development of high-performance edge computing master units with built-in wireless multi-hop in addition to multi-hop wireless backhaul networks for enterprises.

Non-financial KPI of our Midterm Management Plan

Shimizu has also set ambitious targets for reducing CO2 emissions 33% by FY2030 and 65% by FY2050 (compared to FY2017), and in September 2019 received SBT certification.*

*Science Based Targets: An internationally embraced, scientifically- based certification to help achieve the Paris Agreement goal of holding global temperature increases to 1.5˚C.

(C)Copyright 2020 Shimizu Corporation. All rights reserved. 42 Climate Change Measures for Construction (E) (1) Energy productivity improvement with full use of ICT (example: Shin-Tomei Expressway, Kawanishi construction)

➢ Design verified with 3D models Design data By layering measurements and design data on a 3D map, it is easy to visually spot where the design does not match the conditions. ⇒ efficient design verification Measurements ⇒ avoid having to rework tasks Machine guidance bulldozer ➢ ICT earthwork Send data

Machine guidance vibration roller

A computer at the construction site office can set the embankment areas and send data to heavy Heavy machinery operators work while checking machinery location information with an onboard monitor

In addition to higher quality, heavy machinery work is streamlined

Streamlined construction reduces CO2 emissions, leading to higher energy productivity)

(2) Green power usage at jobsites Obtained the 20-GWh Renewable Energy Certificate and introduced renewable energy at model site in all branches. Will continue procuring Renewable Energy Certificates and Non-FIT power.

Introduced Euglena biodiesel fuel

Shimizu‘s Institute of Technology shuttle bus began using biodiesel in July 2020. We are now examining the use of biodiesel for construction machinery at key sites in Tokyo.

From Aug 27, 2020 news release by Euglena Co., Ltd.

TCFD stands for the "Task Force on Climate-related Financial Disclosures" which was established by Financial Stability Board (FSB). In June 2017, FSB issued the TCFD Declaration to propose an approach to information disclosure that involves proper assessments of climate-related risks and opportunities — such as the physical impact of abnormal weather and other climate change, and a sudden transition to a low-carbon society — and the use thereof in investment decisions.

*1 BSP: Building Service Provider. Comprehensively provides facility operation and management services after completion of construction. *2 ZEB: Zero Energy Building. A building with a perfect balance of primary energy consumption and generation. *3 BEMS: Building Energy Management System. *4 Sustainability Renovation: Renovation of a building focused on improving environmental performance, BCP performance, health, and comfort.

*5 ecoBCP: Facility and urban development for both energy conservation in normal times and business continuity planning in emergencies. Yanba Dam (Gunma prefecture) in the 2019 East Japan Typhoon (Oct 10-13, 2019)

Oct 11, 2019 Oct 13, 2019 The typhoon hit right after initial impoundment had begun. The reservoir retained a large amount of rainwater. This proved effective at reducing water flowing into the lower reaches of the Agatsuma River during a flood. Shimizu will actively join in further projects for building national resilience, contributing to society by building quality infrastructure

Focused Strategy: HR Development, Working Lifestyle Reforms ➢ Continuously raise job satisfaction - Make job satisfaction evident and work continuously to raise it - Create a work environment where employees can thrive in an era of 100-year lifespans - Efforts to establish work practices with high awareness of diverse, flexible schedules

Improve Job Satisfaction Welcoming Raise Motivation Ensure Health Workplace & Skills

Reduce Total Work Hours

In addition to reducing work hours, Shimizu's working lifestyle reforms focus on improving each employee's job satisfaction, thus raising productivity. The idea is that a company with high job satisfaction is one where employees take initiative and are eager to take on challenges, which then creates growth for individuals and the organization and further raises productivity and creativity.

(C)Copyright 2020 Shimizu Corporation. All rights reserved. 47 Job Satisfaction and Working Lifestyles（S） (1) Reduce total working hours ➢ We have held Workstyle Reform Week to encourage every employee to take the initiative to reform their work lifestyles.

➢ Set targets for the ratio of closed construction sites and continuously monitor situations.

(2) Make job satisfaction evident (Job Satisfaction Index) ➢ Use averages from the employee opinion poll (five-level evaluations) as KPIs

HR System Reform, etc. Achieve a 4.0+ - Increase retirement age (60 → 65) score for all - Categorize employees as Global or Local - Revamp evaluation system indicators by - Revamp system for job grades, qualification, FY2023 and compensation

Happiness Health Management - Create happy work - Health advice for those at risk of lifestyle environments that diseases and education about health promote job satisfaction - Discourage smoking - Reduce long working hours - Support balance between recovery and work

Based on the basic principles of management contained in The Analects and the Abacus (Ethics and Economics), Shimizu strives to manage the company in a highly timely, efficient, transparent, and lawful manner to achieve sustainable growth and increase corporate value over the medium and long-term, while also earning a greater degree of trust from our shareholders and investors, and all other stakeholders, including customers, employees, and local communities. We do so by fulfilling our social responsibilities through business activities.

To achieve this, Shimizu has established a structure that enables the Board of Directors and Audit and Supervisory Board to appropriately supervise and audit the performance of duties by executive officers, based on separation of the management strategy decision-making function from the execution of duties function. Our basic policy on corporate governance is for our directors, executive officers, audit & supervisory board members, and employees to implement compliance management based on high ethical standards.

➢ Establishment of executive nominating and compensation committees (Dec 2018) • A Nominating and Compensation Committee was set up to ensure fairness and transparency in decisions on election/appointment and dismissal, evaluation, and compensation of directors and executive officers. Main committee members consists of outside directors and other directors who do not perform executive duties. • There are six committee members, four of which are non-executive directors (including one chair).

➢ Increased the number of non-executive directors (Jun 2019) • The number of non-executive directors was increased from three to four (total directors: reduced from 12 at that time to the current 11) • The number of these directors who are outside directors was increased from two to three, and the number of female directors was increased from one to two.

➢ Changed the term of directors (Jun 2019) • The term of directors was shortened from two years to one. This was done to clarify the management responsibility of directors during a fiscal year, to build a management structure capable of responding swiftly to changes in the management environment, and to further strengthen corporate governance.

➢ Partial changes to the executive officers structure (Apr 2020) • Executive responsibilities were clarified to strengthen executive functions. Executive officers were appointed as President and Vice President, who handle executive matters. • The proportion of non-executive directors was raised to strengthen managerial oversight functions. An option was added to appoint a Vice President as an executive officer who is not a director.

• 4 of the 11 directors are non-executive directors (more than one-third) • Non-executive directors further enliven Board of Directors meetings and strengthen managerial oversight, thus overseeing Shimizu management and executive matters from a non-executive standpoint. • To make election/appointment, dismissal, evaluation, and compensation decisions for directors and executive officers fair and transparent, a Nominating and Compensation Committee has been set up.

Audit As of June,2020

➢ The Board of Directors determines whether to acquire shares of business partners for the purpose of sustaining and strengthening trust, comprehensively taking into account such factors as the benefits holding the shares brings to Shimizu, the cost of acquisition, and the risk of share price fluctuations. ➢ Every year, the Board of Directors examines the necessity of holdings, comprehensively taking into account the costs and risks associated with holding shares of each stock, as well as the profit impact and other economic logic, to gradually wind down cross-shareholdings and make effective use of capital.

Action to wind down policies ➢ Since the release of the Mid-Term Management Plan (2019-2023), corporate planning managers, finance managers, and branch managers have visited corporate customers to engage in dialog on winding down cross-shareholdings. 100 million yen FY FY FY FY 1st Half ending ending ending ending ending March March March March September 2017 2018 2019 2020 2020 Stocks 341 345 332 326 319 Balance sheet total 3,212 3,421 3,430 2,700 2,659 (100 mil. yen)

Consolidated net assets 5,769 6,563 7,352 7,364 7,588 (100 mil. yen)

Proportion 55.68% 52.12% 46.65% 36.67% 35.04%

The performance targets and forecasts in this document reflect judgments by management based on information available at the time this document was compiled. These targets and forecasts are subject to various risks and uncertainties.

Various factors may result in significant divergence from performance targets and other figures indicated in this document.