■ The future outlook of Tobishima Holdings <256A>

3. "Innovate the future plan": Pathway to Transformation

(1) About the "Innovate the future plan"

"Innovate the future plan" represents the group's "transformation vision" (process of transformation) and the "management strategy towards its realization (pathway)" within the "story of innovating the future." With an awareness of innovation towards the future, it focuses on creating new value and possibilities without being confined to traditional frameworks and methods. With the key phrase "solving social issues," it redefines the future of the construction industry through the concept of "infrastructure anti-aging industry*1" while promoting the "reskilling initiative in construction business*2" from the perspective of balancing the sustainability of corporations and society.

*1 A complex industry that provides not only technologies related to construction but also a series of construction-related services aimed at maintaining the safety and reliability of infrastructure, supported by the upcoming "circular society".

*2 A project aimed at maintaining its functions by providing the group's management resources particularly to the construction industry within the region.

As for specific business frameworks, efforts will be made to promote from three aspects: "construction business (integrated construction business)," "growth business (construction-related businesses: creating synergy)," and "innovation business (construction DX Resistance business: digitalization of the construction industry and QITABANKUAI)."

(2) Management strategy towards "transformation"

Short-term perspective: Pursue the advancement of production processes through the promotion of Construction DX to solve current challenges.

Batton zone: Promote the expansion of business areas and the scaling up of operations towards transformation into a next-generation business portfolio.

(Construction business)

Extend and expand the current comprehensive construction business, particularly deepening efforts in the renewal sector.

(Growth business)

Develop into other businesses related to construction and those that can create synergy with the construction industry. This includes the areas of 'longevity', 'environment-related', 'disaster prevention and reduction', ETC, and advance collaboration with specialized companies aimed at transitioning to a circular society. A specific example of collaboration is the establishment of a joint venture with NICE Ltd (8089) in the field of non-residential wooden construction called Wood Engineering Co., Ltd.

(Innovation business)

Expand into new areas such as digitalization in the construction industry and other businesses outside of construction. In anticipation of future construction supply Gap Inc measures, advance collaboration with innovative companies.

Additionally, in each business, the time frame will be promoted in three categories: 'short term', 'baton zone', and 'long term'.

Short term: A period to solve and promote current challenges and issues.

Baton zone: The Start is from now. The expansion of business areas and the scaling up of the business will be promoted towards the transformation into a next-generation business portfolio.

Long term: Depending on the speed of changes in social environments, only the direction will be indicated without setting a clear year.

(Written by FISCO guest analyst Noboru Terashima)