Definitions of major terms used in the integrated report and the Company's medium- to long-term business plans are as follows.
| Subject | Definition in business plan |
|---|---|
| Availability payment method | Of the PFI contracts, and the like (including comprehensive private outsourcing contracts, and others) that the administrator of a public facility, or the like (Article 2, Paragraph 3 of the PFI Act ) mainly implements for infrastructure that does not generate usage fees, a method that sets indices that correspond to the function and sustainability of the infrastructure, and some or all of the amount, or the like to be paid when entrusted to a private business operator is determined according to the status of the achievement of the indices. |
| Infrastructure | Constructed structures, such as schools, medical facilities, prisons, stadiums and the like, and civil structures, such as roads, water supply and sewer systems, airports, ports, and renewable energy facilities and the like; indicates tangible (hard) facilities of all social infrastructures. Note: An intangible (soft) infrastructure other than the above is indicated separately as XX infrastructure. (e.g., “information infrastructure”) |
| Infrastructure service | The maintenance and operation of the above infrastructure and services provided directly and indirectly through the infrastructure; indicates "soft" as opposed to "infrastructure" that indicates a tangible (hard) facility. |
| A world of boundless infrastructure services | Providing services beyond the established mechanisms, regulations and rules of the infrastructure industry and market. A state making it possible for the beneficiaries to make "optimal choices." |
| Engineering capabilities | A construction technology capability that demonstrates the strengths of each business company of INFRONEER in the contracting business. This includes not only technical capabilities at the construction stage, but also sales capabilities, design and proposal capabilities, and technical development capabilities and others. |
| Concession | A PFI project in which a private business operator acquires the right to operate a public facility or the like (the right to operate a public facility, or the like owned by the public and to receive usage fees of the facility as its own income) based on the PFI Act (Act on Promotion of Private Finance Initiative). This enables private business operators to operate and maintain public facilities and the like in a stable manner over the long term, making it easier to demonstrate private ingenuity. |
| ‟De-Construction“ | By “de-construction,” we mean our commitment to going beyond the “construction” business and taking on project risks as a business operator while continuing with the conventional “construction” business. The term also implies the philosophical concept of “deconstruction” proposed by philosopher Jacques Derrida, which means to dismantle and rebuild the existing system. “De-construction” is not simply about creating something, but also about covering the full scope of a project from investment to operation and EXIT, including PPP projects and renewable energy projects. |
| PPP/PFI | PPP (Public Private Partnership): A partnership between the public administration and the private sector in the construction, maintenance, and operation of public facilities to achieve efficient use of financial funds and administrative efficiency by utilizing the ingenuity and ingenuity of the private sector. Based on the PFI (Private Finance Initiative) Act, utilize private funding, management capabilities, and technical capabilities for the construction, time, and operation of public facilities, and the like. |
| Contribution amount to consolidated profits | Contributing amount to consolidated profits of infrastructure management business set by INFRONEER. Numerical values that combine “construction work (EPC) profit generated by the infrastructure management business” and “consolidated profits from SPCs involved in infrastructure operation, gains on sales, and revenue from M&A, etc.” |