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TOTECH Group Second Medium - term Management Plan FY2026 - FY2030 Redesign TOTECH -A Bridge to Our 100th Year- TOTECH CORPORATION May 14 , 2026 Digest Version Totech Group ここちよい 未来 を アシスト
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© 2026 TOTECH CORPORATION 1 Corporate Profile (Long-term Vision and Business Domains) 3 2 Recap of First Medium-term Management Plan 6 3 Second Medium-term Management Plan FY2026–FY2030 Redesign TOTECH —A Bridge to Our 100th Year— 11 2
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© 2026 TOTECH CORPORATION 1 Corporate Profile (Long-term Vision and Business Domains) 3 2 Recap of First Medium-term Management Plan 6 3 Second Medium-term Management Plan FY2026–FY2030 Redesign TOTECH —A Bridge to Our 100th Year— 11 3
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© 2026 TOTECH CORPORATION Purpose and Long-term Vision Long-term Vision: Slogan FY2030 FY2025 FY2055 1 Founding 70th anniversary Joining the ranks of 100-year companies The Totech Group creates a comfortable environment that is rich in spirit. Our mission is to seek not only economic efficiency and convenience, but also the spiritual richness that lies beyond them. PURPOSE 4 Taking comfort to the next level. Comfort to people, society, and the earth. We pursue that "comfort" of a new era by capturing the changes in technological innovation and social organization, and aim to be a group that creates a comfortable environment that is one step ahead.
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© 2026 TOTECH CORPORATION Business HVAC business ◼ Distributer sales, installation, and maintenance and repair of HVAC for commercial buildings, etc. ◼ Major distributor (equipment dealer) of Daikin’s HVAC for commercial buildings in Japan Instrumentat ion business ◼ Design and installation of instrumentation equipment (including building automation and management systems) as well as distributer sales, construction, and maintenance and repair operations, etc. ◼ Major distributor of Azbil Corporation Energy solution business ◼ Distributer sales, installation, maintenance and repair of energy saving and generation equipment (solar panels, storage batteries) and generators ◼ Energy solutions (ESCO business) Domestic group companies ◼ Maintenance, repair and renewal of equipment (Nippon Builcon) ◼ Design, installation, distributer sales, construction, maintenance and repair of instrumentation equipment (I.B. TECHNOS) ◼ HVAC, instrumentation, and energy solution business in the Hokkaido area (TOTECH HOKKAIDO) Overseas group companies (Consolidated) ◼ BMS* business operated by Quantum Automation Pte. Ltd. (Singapore) Business Domains ◼ Under the product sale and construction business segments, the pillars of our business activities are the HVAC business, instrumentation business, energy solution business, and domestic and overseas group companies. *BMS:Building Management SystemGross profit 5 0% 20% 40% 60% 80% 100% Product 93.7 billion yen 55% Construction 76.1 billion yen 45% Construction ２6.5 billion yen 55% Product 21.6 billion yen 45% Net sales Segment HVAC system 74.9 billion yen 43% Instrumentation 31.6 billion yen 18% Energy solution 20.5 billion yen 12% Domestic group companies 43.0 billion yen 24% Overseas 5.6 billion yen 3％ Net sales *Figures for each business segment do not include internal sales. * ＜FY25＞ ＜FY25＞
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© 2026 TOTECH CORPORATION 1 Corporate Profile (Long-term Vision and Business Domains) 3 2 Recap of First Medium-term Management Plan 6 3 Second Medium-term Management Plan FY2026–FY2030 Redesign TOTECH —A Bridge to Our 100th Year— 11 6
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© 2026 TOTECH CORPORATION Progress Toward Numerical Targets 7 (100 million yen) FY22 results FY25 plan FY25 results FY25 versus FY22 FY25 results versus plan Consolidated net sales 1,266 1,500 1,700 +34.3% +13.3% HVAC business 615 700 749 +21.8% +7.0% Instrumentation business 199 230 316 +58.8% +37.4% Energy solution business 146 170 205 +40.4% +20.6% Domestic group companies 315 330 430 +36.5% +30.3% Overseas group companies 38 53 56 +47.4% +5.7% Consolidated ordinary profit 81 100 179 +121.0% +79.0% Consolidated ordinary profit margin 6.5% 6.7% 10.6% +4.1pt +3.9pt ROE 12.0% 10% or more 14.7% +2.7pt +4.7pt By segment 1,266 1,500 1,700 － － Product sales 788 870 937 +18.9% +7.7% Construction 477 630 761 +59.5% +20.8% ◼ HVAC business A founding business and still posts years with double-digit growth. With workforce remaining largely unchanged, we focused on securing large-scale projects and delivering higher added value proposals as key sales drivers. By increasing project unit prices, we expanded the scale of the business and contributed to profit growth as well. ◼ Instrumentation business By expanding workforce and improving technological capabilities as key profit drivers, we enhanced our market reputation and achieved growth far exceeding our projections. This was the primary factor behind the increase in consolidated profits, contributing significantly to improved profitability. ◼ Energy solution business A new business area for our Group that is steadily growing against the backdrop of societal demand. Through initiatives to explore new technological fields and expand our customer base, we contributed to our overall performance in terms of both sales and profit. ◼ Domestic group companies Our main businesses are instrumentation and maintenance and repair services. Services form the foundation of our continuous lifecycle business; as a revenue model that bridges the gap between product sales and construction projects, they play a vital role in supporting the Group’s current and future operations. ◼ Overseas group companies New business areas for the Group where growth exceeding that of the domestic market is expected. While achieving steady growth, we also laid the groundwork for further business expansion. Based on this positive momentum, we anticipate making significant strides during the next Medium-term Management Plan. *Figures are for Quantum Automation only (consolidated entity) Main points for performance evaluation during the First Medium-term Management Plan ◼ Working as a unified Group toward value creation, we exceeded expectations in the final year of the plan, which also marked our 70th anniversary *Figures for each business segment do not include internal sales. * * * * *
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© 2026 TOTECH CORPORATION Achievement Status of the Four Key Strategies in the Strategic Framework 8 Investment in human resources Domestic ratio of technical qualification holders exceeds 50% Proactive recruitment of new graduates and mid-career employees Salary increases for three consecutive years Internal recruitment system and commendation system Establishment of a career planning program ESG-focused management Executing efficiency by reviewing inefficient processes and automating tasks that can be standardized Strengthening governance through shift to a company with an Audit and Supervisory Committee Expanding investor dialogue through proactive IR activities Disclosure of GHG emissions by scope Awarded “B” score from CDP Certified for the first time as a Health & Productivity Management Outstanding Organization Improving operational quality and risk resilience through compliance training Recycled refrigerant / Reduced construction work Acquisition of Eruboshi and Kurumin certifications Strengthen core business Expansion of product sales while also improving the gross profit margin Increasing gross profit margin of construction segment to 34.8% Stable acquisition of maintenance and repair contracts Increasing the contribution of group companies to consolidated financial results SANNOU KIKOU becomes a subsidiary Strengthening of continuous lifecycle business Expand overseas business Strengthening BMS with Quantum Automation as the core, building a foundation for expansion into ASEAN Strengthening presence within the TOTECH Group through sales growth Reinforcement of management foundation through initiatives to enhance employee skills and motivation Shortage of personnel for overseas business and development of the next-generation management leadership Promoting M&A Issues in the Second Medium-term Management Plan ◼ Response to workstyle reform ◼ Further strengthening of sales capabilities ◼ M&A◼ Securing and utilizing stable human capital ◼ Further improvement of operational efficiency
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© 2026 TOTECH CORPORATION Investment and Cash Allocation 9 Human capital investment Investment for business expansion and creation of added value Measures to improve both the scale and quality of human capital, including hiring, upskilling, increasing employee motivation, and retention initiatives Expansion of sales bases, solution bases, M&A, etc. Investments in broadly defined human capital Investment to reinforcement of management foundation IT investment to support talent by improving productivity and saving labor, office environment improvement, and recruitment support through brand awareness, etc. Updating enterprise systems, operational efficiency, etc. Major initiatives ◼ Investment in human capital and sales initiatives is supporting earnings growth, while reinforcement of management foundation will be carried over to the second medium-term plan Actual Dividends About 12.8 billion yen Cash and deposits End-FY2025 balance About 11.3 billion yen Strategic investment <Three-year total> About 12.3 billion yen Human capital investment ◼ Increase in workforce ◼ Performance bonus ◼ Recruiting expenses ◼ Development expenses, etc. Business expansion and creation of added value ◼ Strengthening sales bases ◼ M&A Reinforcement of management foundation ◼ System investment Main details Forecast Operating CF 20–25 billion yen Cash and deposits About8 billion yen About 27 billion yen Cash and deposits Strategic investment Dividends End-FY2022 balance Accumulated CF during 3 years Three-year investment plan About 20 billion yen Shareholder returns About 7 billion yen Investment CF 0–5 Finance CF 0–2 About8 billion yen End-FY2025 balance About 3 billion yen About 8.5 billion yen About 0.8 billion yen
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© 2026 TOTECH CORPORATION Construction market Labor market Macroenvironment Expanding construction investment backed by public investment and low interest rates Expanding demand for capital investment in factories, data centers, and logistics Strong appetite for investment in manufacturing and ICT Expanding demand for replacement and high-performance equipment due to ZEB/GX compatibility Risk of capability gaps arising from increasingly diverse and specialized demand Rising material and labor costs + external environment risks (overseas and policy-related) Supplementing the labor force through the utilization of a diverse workforce Labor savings and productivity improvements through DX and automation Structural labor shortage (tight supply/demand) Aging workforce + and shortage of younger workers Difficulty in retaining younger employees (quick attrition) Increase in personnel and recruiting costs Construction and schedule constraints due to workstyle regulations Microenvironment Demand driven by continued large-scale investment in data centers, semiconductors, logistics, and other sectors Growing demand for renovation and maintenance of non-residential properties and expansion of the continuous lifecycle business Increasing opportunities for high added value proposals through GX and energy conservation initiatives Stable sourcing capability through special contractual relationships Intensifying price and project competition due to increased market entrants Difficulty in ensuring profitability due to persistently high costs + delivery schedule risks Mid-career hiring opportunities increase Improving in-sourcing productivity through training and business reform Focusing engineers on high added value tasks through specialization and DX Difficulty in significantly increasing the number of engineers (due to structural constraints) Rising labor costs Reduced operational capacity due to labor regulations Our Business Environment 10 Key opportunities ◼ Increased opportunities for winning orders resulting from the continued expansion of private and public investment ◼ Acquisition of major projects ◼ Expansion of equipment renovation and maintenance services for existing buildings ◼ Advancement of recruitment methods ◼ Diversification of measures to enhance awareness Key threats ◼ Increasingly competitive landscape ◼ Fiscal year lags from projects becoming larger and longer in duration ◼ Increasingly competitive landscape ◼ Rising recruitment costs ◼ While the construction market is expected to remain strong, excessive optimism is unwarranted. It is essential to prepare for an increasingly challenging labor market
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© 2026 TOTECH CORPORATION 1 Corporate Profile (Long-term Vision and Business Domains) 3 2 Recap of First Medium-term Management Plan 6 3 Second Medium-term Management Plan FY2026–FY2030 Redesign TOTECH —A Bridge to Our 100th Year— 11 11
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© 2026 TOTECH CORPORATION Toward Becoming a 100-year Company 12 Celebrating its 70th anniversary, the Totech Group is refining itself as a corporate group that integrates technology x people x culture, with an eye toward becoming a 100-year company. • The Earth is becoming increasingly warm • Energy demand and the need for greater efficiency are growing steadily • Stagnation in domestic new construction demand and an increase in aging buildings • Declining population and shortage of human resources • Advances in AI and other technologies = Perspective of global warming countermeasures = Expansion of energy business = Expansion of the renovation and replacement business = Increasing difficulty in ensuring a stable supply of human capital = The gap in proficiency in IT utilization is widening External environmental factors leading to becoming a 100-year company • We seek individuals who possess expertise, a diligent work ethic, a spirit of taking on challenges, and a warm, caring nature. • To build an organization capable of adapting flexibly to environmental changes, we will establish a self-directed organizational structure that combines individual skill development, leadership, and clear delegation of authority with collaboration, organizational learning, and governance. • By taking a flexible approach to product sales, considering not only procurement methods but also climate change mitigation, we can expand into a business that creates added value • In anticipation of a slowdown in new construction demand, we aim to expand our services for replacement, renovation, and maintenance and repair of existing properties • Enhancing capability for making technology proposals through a cross-functional, one-stop solution approach that integrates sales, engineering, and service operations • Creating new value through cross-functional mindset that transcends conventional divisional boundaries • Expand overseas business • Given the challenges in recruiting talent, we will reinforce our management foundation by making investments in broadly defined human capital, including labor-saving measures and productivity improvements through IT, M&A aimed at talent acquisition, enhancing our brand recognition to support recruitment, and using outsourcing. Business development Personnel sought by the Totech Group
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© 2026 TOTECH CORPORATION Positioning 13 FY25 70th anniversary FY22FY20 FY55 100th anniversary FY30Long-term vision FY23 COVID-19 pandemic Workstyle reform and stricter labor regulations Rising material prices and construction costs Promoting construction DX and productivity enhancement Deepening labor shortage Stronger decarbonization and environmental regulations Stagnant demand for new construction ◼ Positioning • Meeting the responsibilities of becoming a TSE Prime Market-listed company • Demonstrated our ability to implement the long-term vision formulated in FY20 ◼ Outcomes and issues • Achieved performance exceeding expectations • Improved the labor environment • Reinforced the management foundation toward becoming a 100- year company Joining the ranks of 100-year companies Second Medium-term Management PlanFirst Medium-term Management Plan FY30 Transition to the TSE Prime Market ◼ Positioning Realigning our management approach to mark our 70th anniversary and become a corporate group capable of becoming a 100 - year company ◼ Expected outcomes • We are deepening our human capital management as a corporate group that places people in a leading role (the integration of business strategy and HR strategy) • Shift to a high - profit structure • Establishing the management foundation toward becoming a 100 - year company
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© 2026 TOTECH CORPORATION Basic Policies 14 ◼ Allocating resources to profitable businesses ◼ Strengthening measures to create added value ◼ Improving cost control ◼ Strengthening initiatives to improve productivity Shift to a high-profit structure ◼ Accelerating aggressive business reforms ◼ Enhancement of investments in broadly defined human capital ◼ Enhancing governance ◼ Stable returns to shareholders supporting business Establishment of management foundation Strengthening human capital management Enhancing the value of human capital and pursuing optimization Aiming to become a 100 - year company by playing a vital role in social infrastructure and continuing to deliver value to our stakeholders
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© 2026 TOTECH CORPORATION Business Portfolio 15 ◼ HVAC business [Rev] Profit contribution in the core project price band through high added value proposals [Sus] Revenue scale = embodiment of market needs = foundation for creation of social credibility ◼ Instrumentation business [Rev] Driver of profit expansion through high operating leverage [Rev/Sus] Simultaneous pursuit of earnings in the current fiscal year and investment in future growth (continuous lifecycle business) ◼ Energy solution business [Rev] Broadening new market domains leveraging energy efficiency, renewable energy, and BCP as hooks [Sus] A role focused on expanding our customer base and range of solutions through direct proposals [Sus] Through solutions aimed at the realization of a decarbonized society, we are committed to addressing social challenges from an ESG perspective ◼ Domestic group companies [Rev/Sus] Capability to meet a wide range of customer needs in the provision of products and services, through the complementary strengths of TOTECH and its group companies [Rev/Sus] Maintenance and repair services as the cornerstone of the continuous lifecycle business ◼ Overseas group companies [Rev/Sus] Strengthening the construction and maintenance and repair services business [Sus] Contribution to diversification of country risk [Rev] Shift to a high-profit structure [Sus] Sustainability ◼ Transformation into a high-profit structure through unified Group management, alongside clarification of roles contributing to sustainability Concentration of management resources Intensive investment in the future Qualitative transformation as a pillar HVAC system 89 billion yenHVAC system 74.9 billion yen Instrumentation 31.6 billion yen Instrumentation: 49 billion yen Overseas group companies 10 billion yen Domestic group companies 50 billion yen Energy storage 22 billion yen Energy storage 20.5 billion yen *Internal sales are not included. FY30FY25 * Overseas group companies 5.6 billion yen Domestic group companies 43 billion yen ProfitabilityCreation of added value Growth potential Sales CAGR
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© 2026 TOTECH CORPORATION Numerical Targets <Growth and Profit Level> 16 ◼ Revised up the performance targets for FY2030 (the final year of the Second Medium -term Management Plan), which were set as part of our long-term vision ◼ Based on our strong performance during the first Medium -term Management Plan, we have determined that further strengthening of h uman capital and the consolidation of our management foundation are essential for sustainable growth moving forward, with an eye t oward becoming a 100-year company. Accordingly, we have set targets that incorporate investments to achieve these goals. 0 500 1,000 1,500 2,000 2,500 (100 million yen) 2022 2025 FY20301999–2022 *1 Figures for each business segment do not include internal sales. *2 Bar chart = Net sales (left axis); Line chart = Ordinary profit (right axis) 126.6 billion yen 8.1 billion yen 0 50 100 150 200 250 Second Medium-term PlanFirst Medium-term Plan Net sales 170 billion yen (Initial plan: 150 billion yen) Ordinary profit 17.9 billion yen (Initial plan: 10 billion yen) Ordinary profit 22 billion yen (I nitial plan: 15 billion yen) Net sales 220 billion yen (Initial plan: 200 billion yen) 749 43% 316 18% 205 12% 430 24% 56 3% Net sales and composition by business 1,700 billion yen FY25 890 40% 490 22% 220 10% 500 23% 100 5% HVAC business Instrumentation business Energy solution business Domestic group companies Overseas group companies Net sales and composition by business 220 billion yen FY30 *1 *2
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© 2026 TOTECH CORPORATION Numerical Targets <Capital Policy/Shareholder Value> 17 13.6 13.1 14.9 15.6 13.5 11.8 12.0 14.2 19.5 19.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 5 8 11 14 17 20 ◼With the Corporate Governance Code requirements in mind, by end-FY2030, the company will limit its strategic shareholdings to 15% or less of consolidated net assets -> The company’s policy to use the proceeds from the sales for investment, debt reduction, and shareholder returns ◼With respect to our policy on optimizing cash and deposit levels, we recognize the need to balance the allocation of excess liquidity to investments and shareholder returns with the retention of an appropriate level of cash and deposits as part of BCP (Business Continuity Planning). Accordingly, we use about 1.5 months of monthly sales as a benchmark ◼ The Company estimates its cost of equity at approximately 9–10%, revised upward from the previous medium-term management plan period, taking into account recent increases in long-term interest rates and investors’ expected returns. ◼ ROE has remained above 10% annually over the past 10 years, and we aim to maintain a target range of 12– 15% going forward, while keeping the equity spread in positive territory Change in ROE and cost of equity Cost of equity 9–10% (%) Cost of equity 8–9% ◼ We aim to maximize capital efficiency and shareholder value by achieving a ROE that exceeds the cost of equity and optimizing the levels of strategic shareholdings and cash and deposits. ROE
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© 2026 TOTECH CORPORATION Human Capital Management 18 ◼ Revamping the basic HR strategy with a view to becoming a 100- year company To ensure we remain a resilient organization capable of demonstrating our value even amid an uncertain social environment, we are re-examining our approach to ideal personnel, recruitment, development, measures to increase employee motivation, and workplace environment improvements. ◼ HR system transformation To achieve sustainable, medium- to long-term growth for the Group, we will establish a personnel system that “supports the growth of human resources who can think and act independently and create new value by taking on challenges and accepting failure,” while building an organizational structure capable of effectively managing this platform. ◼ Strengthening technological capabilities In addition to increasing the number of technical staff—the source of our competitiveness—we are strengthening our skills development initiatives to enhance technological capabilities company-wide, regardless of job role. The company plans to systematize its training programs and begin establishing the (working name) Integrated Technical Training Center, which will serve as a symbol of these initiatives, to create an environment conducive to continuous learning. ◼ Establishing human capital management that strikes a balance between offense and defense We are establishing an optimal personnel structure that supports the achievement of performance targets and addresses risks based on a thorough understanding of the external environment, available management resources, and business structure. Furthermore, to improve labor productivity while ensuring an appropriate labor distribution ratio, we will comprehensively promote proactive workforce expansion, effective staffing, enhanced HR development, measures to increase employee motivation, and improvements to the work environment. ◼ Investments in broadly defined human capital In addition to direct investment in human resources, we are making proactive investments as part of our initiatives to build a Group management foundation aimed at becoming a 100-year company. These measures include developing IT systems to support employees in improving operational efficiency and productivity, implementing measures to raise our brand recognition to aid recruitment, and enhancing the work environment to increase motivation. Initiatives to integrate business strategy and human resources strategyValue creation cycle model of human capital management Society Customers, business partners, shareholders, local communities, etc. Organization Each and every employee Job satisfaction/growth opportunities/improvement of labor environment/stability of life Skill improvement/Contribution to earnings/Contribution to reinforcement of management foundation/Retention Enhancing mutual commitment Investment and system reform1 Effectiveness and awareness reform2 Economic and social value Revenue and social credibility
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© 2026 TOTECH CORPORATION Concept of human capitalBusiness ◼ Since controlling fixed costs is key, we will continue to explore the optimal balance between sales growth and minimal increases in headcount. ◼ From the perspective of investments in broadly defined human capital, we will actively implement IT investments aimed at supporting our workforce, improving efficiency, and reducing the need for workforce ◼ Given the strong correlation between increased sales and an expanded workforce, we will focus on increasing the size of our workforce as a strategic initiative to transition to a high- profitability business model. ◼ We will strengthen measures to improve technological capabilities and improve employee retention. ◼ Given the strong correlation between increased sales and an expanded workforce, we will focus on increasing human capital ◼ Strengthening measures to foster engineers and retain talent ◼ Facility development to acquire expertise in new technological fields Investments in broadly defined human capital ◼ Across the Group as a whole, we aim to expand our human capital on a scale that exceeds the increase in workforce at TOTECH on a non-consolidated basis ◼ Strengthening group-wide recruitment, technical training, and talent retention measures ◼ Focusing on measures to increase the motivation of local employees and reducing attrition ◼ Identifying and developing talent capable of becoming executives in the future 1,267 1,700 0 500 1,000 1,500 2,000 2,500 FY2022 FY2025 2,200 FY2030 Human Capital Management <Human Capital KPIs> 19 Main KPIs FY2022 Number of employees 2,505 persons Qualification holders in Japan*1 1,179 persons Engineers in Japan*2 998 persons Education and training expenses About 30 million yen Average hours worked per year 2,025 hours Average annual income 7.46 million yen Investments in broadly defined human capital ― Engagement score 74.5pt Attrition rate 5.2% (100 million yen) Consolidated net sales FY2025 2,855 persons 1,302 persons 1,159 persons About 50 million yen 2,048 hours 9.18 million yen About 6.1 billion yen 76.4pt 4.3% FY2030 3,595 persons 1,536 persons or more 1,391 persons or more About 110 million yen Separately, a comprehensive training facility About 2,000 hours About 10 million yen About 11.7 billion yen 76.4pt or more 5.0% or less (Consolidated) (Consolidated) (Non- consolidated) (Non- consolidated) (Non- consolidated) (Non- consolidated) (Non- consolidated) (Non- consolidated) HVAC business Instrumentation business Energy solution business Domestic group companies Overseas group companies *１ Number of employees in the Construction segment *2 Number of employees with technical qualifications recommended by the Company for domestic employees ◼ Quantitative expansion (No. of employees) ◼ Quality improvement (skills/motivation) ◼ Improvement of labor environment (time/compensation/organizational support) (Consolidated)
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© 2026 TOTECH CORPORATION Strategic Framework for Businesses 20 Deeper development of high added value solutions Expansion of continuous lifecycle business Maximization of profit opportunities through Group collaboration ◼ We aim to create high added value opportunities to drive strong profitability across the entire Group by accurately identifying the challenges faced by our customers and the external environment, and by executing the business strategies of each organization.
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© 2026 TOTECH CORPORATION Initiatives to increase margins ◼Offsite production Expanding offsite production in collaboration with Nippon Builcon. We will simultaneously reduce onsite labor hours, address the shortage of skilled workers, and resolve logistics challenges, thereby enhancing the added value provided to our customers. ◼Maintaining market share of core products and boosting orders received for maintenance and repair services While maintaining and expanding our market share in packaged and central air conditioning systems, we will intensify our promotion of units compatible with R32-refrigerant (multi-split systems for buildings) to effectively capture demand for eco- friendly solutions. We will accurately identify renewal needs and strengthen our efforts to win maintenance and repair contracts. ◼Expansion of product lineup In addition to core products, we propose a broader range of offerings (through-flow boilers, dehumidifiers, industrial chillers, etc.) By offering bundled packages of multiple products, we aim to meet our customers’ diverse needs and maximize order value per project. We will also strengthen our offerings of unique products tailored to specific applications, such as fan filter units, radiant HVAC systems, and industrial water chillers. ◼Entry into growth markets Augmenting large-scale redevelopment projects in major cities, we are building a track record of supplying solutions for specific applications with strong growth potential, including data centers operated by non-Japanese entities, semiconductor factories, PFI projects for school HVAC, HVAC for school gymnasiums, and BCP measures. Business Strategy <HVAC Business> 21 Strengthening the business foundation (Millions of yen) 65,110 72,341 74,939 89,000 0 20,000 40,000 60,000 80,000 100,000 FY23 FY24 FY30FY25 Offsite production (Unitization of equipment at Nippon Builcon) HVAC business Net sales ◼ Propose solutions for creating high added value, such as offsite production We will work to improve profitability by increasing margins while also pursuing new business opportunities ◼ HR development and operational efficiency ・Creation of training programs to encourage individual growth ・Enhancing employee growth and improving corporate productivity and competitiveness through appropriate staff placement ・Differentiating through operational efficiency such as onsite shipping management by back-office staff
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© 2026 TOTECH CORPORATION Business Strategy <Instrumentation Business> 22 Initiatives to increase margins ◼Expansion of continuous lifecycle business Preparing to shift to a stock market in anticipation of changes in the market for new construction starts. As a contractor specializing in existing structures, we are actively pursuing renovation projects and, alongside the market for new construction starts, are focusing our efforts on maintenance and renovation projects for existing buildings. Currently, we aim to shift the ratio of new construction to existing projects from 70/30 to 50/50, with the goal of achieving sustainable growth. ◼Standardization of remote maintenance Remote maintenance is a service that remotely monitors the operational status of equipment based on data to verify operation, detect malfunctions, and evaluate controllability. Because we can monitor site conditions around the clock throughout the year, we are able to propose solutions in a timely and proactive manner. ◼Building a construction framework for growth markets We will expand our order intake in growth markets that demand highly sophisticated construction quality with a strong emphasis on system integration, such as large-scale data center projects centered in the Kansai region, mega-scale redevelopment projects centered in the Tokyo metropolitan area, and semiconductor and pharmaceutical plant projects across various regions, and establish a construction framework capable of meeting these demands. ◼Improving profitability and quality through VE proposals We promote timely and proactive value engineering (VE) proposals, including system evaluations from the start of construction and labor-saving construction methods. We aim to strengthen our technological capabilities and maximize revenues while reducing onsite management hours and cutting costs, thereby achieving both high-quality construction and profitability. Strengthening the business foundation ◼ Resolving labor shortages and improving operational efficiency Focusing on DX and securing human resources We are working to reduce man-hours by implementing construction management tools and promoting remote maintenance. Instrumentation business Net sales 23,564 27,441 31,603 49,000 0 10,000 20,000 30,000 40,000 50,000 (Millions of yen) FY23 FY24 FY30FY25 ◼ Maximizing technological capabilities and profitability, and building a high added value business structure resilient to environmental changes
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© 2026 TOTECH CORPORATION 15,725 15,487 20,550 22,000 0 5,000 10,000 15,000 20,000 25,000 (Millions of yen) FY23 FY24 FY30FY25 Business Strategy <Energy Solution Business> 23 Initiatives to increase margins ◼ Three major solutions We are expanding our solution portfolio with F-SOL (energy conservation), E-SOL (renewable energy), and BCP-SOL (emergency power supplies). Aiming to shift from simple renovations to added value proposals. ◼ Renewable energy and energy conservation products Reinforcing efforts to promote renewable energy through proposals for solar power generation facilities such as flexible PV systems, solar carports, and onsite PPAs. We provide support for energy conservation proposals involving the renewal of HVAC and heat source systems ◼ Sales expansion of generators and storage batteries We aim to achieve our sales targets for diesel generator systems for disaster prevention equipment and will also expand sales of gas turbines and large-scale equipment. We will strengthen sales of grid-use and industrial storage batteries, uninterruptible power supply (UPS) systems, and active voltage conditioners for instantaneous voltage drop, etc. to meet customers’ power supply needs. ◼ Cost reduction and procurement We promote direct orders with partner companies that handle design, construction, and maintenance to reduce intermediate margins. We will develop new suppliers for solar panel materials and panel modifications to strengthen our competitiveness. ◼ Plus-one proposals Obtain maintenance contracts and propose additional products for all projects and sites (plus-one proposal). Our aim is not just product sales, but to secure revenue throughout the entire product lifecycle. ◼ Approaching target markets We will focus our efforts on data centers, food and semiconductor factories, and logistics warehouses. We will propose integrated solutions combining power generation, heat sources, and renewable energy facilities to expand the scale of our projects. We aim to shift to a high-profit structure by leveraging our connections with stakeholders to secure properties in locations close to building owners. ◼ Shift to a lifecycle-based, added value, high-profit model through Group collaboration Leveraging Group synergies, we are rolling out proposals for “cross-group energy solutions” that integrate HVAC, power supply, renewable energy, and maintenance services and build on our established customer base for which we already provide maintenance and management. By leveraging our relationships with existing customers, we aim to increase the visibility of successful projects and expand the scope of our proposals. Strengthening the business foundation ◼ Embedding of corporate culture and human resource development This department has many mid-career hires and is home to a diverse group of employees, ranging from young professionals to mid-career staff. We work together to explore each individual’s aspirations for the future, career advancement, and goals, with the aim of fostering a strong corporate culture. Strengthening and promoting training tailored to each individual’s aptitudes. Energy solution business Net sales Lightning protection using a compact, low- cost active voltage conditioner for instantaneous voltage drop without a battery Contributing to decarbonization through fuel conversion (switching to natural gas) ◼ Creating added value through three major solutions: energy saving, renewable energy, and BCP Establishing a high-profit lifecycle model through Group collaboration
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© 2026 TOTECH CORPORATION 36,243 39,261 43,031 50,000 10,000 20,000 30,000 40,000 50,000 Domestic group companies Net sales FY23 FY24 FY30FY25 Business Strategy <Domestic group companies> 24 Initiatives to increase margins Strengthening the business foundation ◼ Improving productivity through better operational efficiency (Nippon Builcon) The company will bolster customer service capabilities by establishing five sales offices in the Tokyo metropolitan area, strengthening its community -focused brand, advancing DX (having obtained DX certification), and enhancing operational productivity through the consolidation and standardization of back-office operations. ◼ Strengthening recruitment (I.B. Technos Co., Ltd.) We are actively recruiting from a wide range of sources to address the growing shortage of personnel. We will develop individual training plans for each employee to enhance their skills. (IBG) ◼ Strengthening construction capacity through talent development (TOTECH HOKKAIDO CO., LTD.) We will expand the scope of in-house support by enhancing education. Also, we will strengthen construction capacity. (Millions of yen) ◼Expansion of Cycle Maintenance® (Nippon Builcon) Nippon Builcon delivers one-stop service that provides comprehensive support for the maintenance, repair, and renovation of building equipment, tailored to each customer’s specific requirements. Expanding the Cycle Maintenance®, they aim for a 50% share of total sales. They build a solid earnings base in the existing (stock) market. ◼Three major solutions (Nippon Builcon) They expand businesses based on the three major solutions of energy conservation, air quality, and BCP. At the Head Office Solution Plaza in Tokyo, visitors can view actual units such as “Ene-Suke-kun” and the “Power Supply Independent HVAC GHP,” while at the East Japan Technical Center, they hold tours and training sessions featuring mock-up units of their new R32 refrigerant multi-split systems for commercial buildings. They help customers solve their problems by proposing equipment solutions and R32 equipment. Cycle maintenance Nippon Builcon ◼Expanding sales of proprietary central monitoring system (I.B. Technos Co., Ltd.) I.B. Group is expanding sales of its proprietary open-architecture central monitoring system, IB-VISION and the cloud- based IB-VISION Cloud. They can construct systems by freely combining devices from multiple manufacturers. They are strengthening proposals for specialized facilities such as pharmaceutical and semiconductor plants. ◼Strengthening the response structure for special facilities (I.B. Technos Co., Ltd.) They expand installation work for power monitoring systems and automated control equipment at foreign-owned data centers. They strengthen their capabilities to handle specialized facilities such as pharmaceutical manufacturing plants and semiconductor cleanrooms. ◼Participation in growth sectors (TOTECH HOKKAIDO CO., LTD.) TOTECH HOKKAIDO participates in PFI projects as construction work. They also work to secure demand from semiconductor-related companies and expand sales of HVAC equipment, boilers, and other products. ◼ Leveraging each company’s specialized expertise and local presence to further develop our continuous lifecycle business Aim to expand our revenue base by leveraging the combined strength of our group collaboration
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© 2026 TOTECH CORPORATION 5,277 6,162 5,630 10,000 0 3,000 6,000 9,000 12,000 Business Strategy <Overseas Group Companies> 25 Initiatives to increase margins(Millions of yen) FY23 FY24 FY30FY25 Overseas group companies Net sales Real GDP growth (Annual percent change) Compared to mature, low-growth Japan, the economy is steadily expanding Bringing Prima Totech Indonesia and Totech Vietnam Solutions under the scope of consolidation by FY2030 ◼ Differentiate by developing and manufacturing BMS (Building Management Systems) and ELV (Extra-Low Voltage) systems in-house. ◼ By also performing maintenance, inspection, and adjustment work internally, we deliver a fully integrated, end-to-end solution—spanning the roles of manufacturer, SIer (system integrator), and maintenance provider—thereby demonstrating its unique strengths. ◼ They are creating added value by differentiating themselves from competitors through the development of technological capabilities and the enhancement of their customer service response. Quantum Automation (QA)/Singapore ◼ Totech Vietnam Solutions is expanding its business beyond Japanese-affiliated factories to include retail facilities and office buildings. They will work to have their products included in the specifications of Japanese subcontractors and aim to improve margins by gaining a competitive advantage in price negotiations. ◼ By strengthening capabilities at their hub in the south (Ho Chi Minh City), they will expand their commercial footprint to reach all of Vietnam. They will also solidify their foundation through collaboration with local sales agents and the expansion of their sales channels. ◼ They aim to expand HVAC-related products and services, including the sale of VAV, CAV, and FFU systems as well as duct-mounted sound attenuators, along with recycled refrigerants and refrigerant recovery businesses. Totech Vietnam Solutions (TVS)/Vietnam ◼ PT Prima Totech Indonesia provides design support during the early stages of projects. They also offer project management support and construction and provide added value in the form of high-quality Japanese-standard service. ◼ They also undertake projects such as applying salt-resistant coatings to outdoor units and manufacturing ducts in collaboration with Japanese companies to meet customer needs. ◼ They propose maintenance and repair for completed projects. By in-sourcing maintenance, they are building a high-margin business model. PT Prima Totech Indonesia (PTI)/Indonesia BMS system Salt-damaged paint-10 -5 0 5 10 15 Singapore Indonesia Vietnam Japan (%) ◼ Expanding our value chain and strengthening our capability for making technology proposals ◼ Building a high-profit business foundation by enhancing uniqueness and cost competitiveness suited to each country’s market Outdoor unit installation work
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© 2026 TOTECH CORPORATION Operational centralization and partial outsourcing of certain operations Functional Strategy <Establishment of management infrastructure> 26 First Medium-term Management Plan Establishment of the Business Reform Promotion Office to accelerate transformation Visualizing workload and identifying critical issues Reviewing and systemizing work processes • Implementation of various business systems, such as expense reimbursement and chatbots • Reorganization of the division of roles between head offices and bases in some processes Second Medium-term Management Plan Clarifying the roles of each department and standardizing processes 1 Unify processes by introducing systems2 Automating processes by utilizing IT tools3 Enhanced hiring and nurturing of specialized human resources Promotion of aggressive business reforms as a Group Enhancing governance Advancement of processes Strengthening Group capabilities ◼ As a company engaged in people-centric business model, the importance of a functional strategy is growing in the establishment of a sustainable growth structure that does not rely on workforce expansion ◼ Accelerating business reforms to build a management foundation aimed at becoming a 100-year company, promoting management system enhancements, operational efficiency, and DX to contribute to the sustainable growth of the Totech Group
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© 2026 TOTECH CORPORATION Investments and Cash Allocation 27 Cash in Strategic investment About 50 billion yen Five-year total Cash and deposits About 27 billion yen End-FY2030 balance Shareholder returns About 26 billion yen +α Five-year total FCF About 92 billion yen FY2026–FY2030 *Before deduction of human capital investment *Sale of strategic shareholdings Cash and deposits About11 billion yen End-FY2025 balance Estimated cumulative total ◼ From the perspective of stable dividends, we shifted our policy to DOE + Progressive dividends. Projecting about 26 billion yen over five years ◼ Execute share buybacks in a flexible and timely manner *In the +α share buybacks, as part of human capital management in the following strategic investments, we will consider stock returns for the purpose of employee incentives and management awareness and education. ◼ With respect to our policy on optimizing cash and deposit levels, we recognize the need to balance the allocation of excess liquidity to investments and shareholder returns with the retention of an appropriate level of cash as part of BCP (Business Contingency Planning). Accordingly, we use about 1.5 months of monthly sales as a benchmark ◼ Promote the following as investment in human capital (including investment in broadly defined human capital) • Human capital investment Workforce increase, performance bonuses, fringe benefits, recruiting expenses, education and training expenses, etc. Stock returns to employees through share buybacks • Investment in broadly defined human capital IT investment aimed at improving operational efficiency and reducing the workforce Office environment improvement to increase employee motivation Development of training facilities for technological capabilities development Investment in brand awareness Utilization of external human resources ◼ Business expansion and creation of added value • Strengthening sales bases • M&A ◼ Reinforcement of management foundation • Strengthening information security and promoting effective utilization of data Cash out ◼ Strategic investment in human capital as a labor-intensive business, alongside balanced shareholder returns
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© 2026 TOTECH CORPORATION Shareholder returns <Dividend Results and Policy Change> We regard returning profits to our shareholders as a key management policy, and we distribute profits based on our business performance while striving to improve profitability and strengthen our financial affairs through effective business operations. Dividend policy During the Second Medium-term Management Plan, we will pay stable dividends that are not swayed by fluctuations in profits based on our basic policy of DOE 6%+ Progressive dividends. Specific metrics 28 ◼ With a view to achieving sustainable shareholder returns, we have revised our dividend policy to ensure stable dividends. * The company executed a three-for-one stock split of common shares effective April 1, 2024. Dividends for the past fiscal years a re calculated based on the number of shares after the stock split. （Yen） 17.3 22.3 26.6 28 46.3 Trend in dividends 68.3 54 116 * 128 128 * * ** * * 5.0 5.6 5.6 5.6 5.6 16.3 20.3 24.0 35.0 42.0 12.3 16.6 21.0 22.3 40.6 37.6 48.0 85.0 93.0 86.0 7.0 0.0 25.0 50.0 75.0 100.0 125.0 150.0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 (Planned) Interim dividends Year-end dividend Commemorative dividend
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© 2026 TOTECH CORPORATION Sustainability <Numerical Management> 29 Over the years, the Totech Group has pursued not only economic efficiency and convenience, but also the spiritual richness that goes beyond that, by providing comfortable spaces. We continue to create a comfortable environment that is “comfort to people, society, and the earth” in order to realize both a sustainable society and pleasantness. Our Vision E S G ◼ Contributing to a sustainable society by creating enriching and comfortable environments Details of initiatives Indicator Current status (FY2025) Target (FY2030) Reduction of greenhouse gas emissions Scope 1 + 2 emissions 1,202ｔ-CO2（estimated） 910t-CO2 Percentage of renewable energy in the electricity used for business activities 49.7%（estimated） 80% or more Improvement of job satisfaction and ease of working Engagement score 76.4pt 76.4pt or more Retention of talent Attrition rate 4.3% 5.0% or less Promotion of workstyle reforms Total hours worked per employee per year Rate of paid leave taken 2,048 hours 68.0% 2,000 hours 70% or more Strengthening talent development Education and training expenses About 50 million yen About 110 million yen Thorough compliance Number of serious legal violations 0 cases 0 cases Improving the effectiveness of the Board of Directors Improvement rate for issues identified in an effectiveness assessment conducted by a third-party evaluation organization ー 100% Constructive dialogue with investors Number of dialogues with institutional investors 99 cases 120 cases or more
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© 2026 TOTECH CORPORATION Notes 30 [Disclaimer] * The information on the future, including forecasts, planned figures and prospects, contained in this material is based on information available to the Company as of the date of publication of this material. The actual results may differ materially from these forecasts due to a variety of factors. Please refrain from making investment judgments based only on this material. * The company accepts no liability whatsoever for any losses incurred as a result of the use of this material. * This material is not a legal disclosure document under the Financial Instruments and Exchange Act and the accuracy and completeness of the information is not guaranteed. * This material has been prepared for the purpose of providing information to investors and is not intended as a solicitation to invest. [Contact] Public Relations and Investor Relations Group, Corporate Strategy Division MAIL:ir@totech.co.jp