Financial Briefing for the Fiscal Year
Ended March 2022
Progress towards Compliancewith the Prime Market’s Continued
Listing Criteria
May 19, 2022

1. Summary of results
68,792 million yen (+23.5% year-on-year)

Consolidated
completed
construction
balance(Millions of yen)

The completed construction balance rose 23.5% from the previous fiscal year to 68,792 million yen as aresult of factors including significant increases in the construction balance carried over from the previous
year and in the order balance. Reference: Construction balance carried over from previous fiscal year + order balance completed construction = Construction balance carried over to next fiscal year

Previous Medium-term Business Plan

150,000

61,017

Current Medium-term Business Plan
71,45355,68862,90664,31568,792120,000
90,00059,99867,21669,878

Fiscal year ended
March 2020

Fiscal year ended
March 2021

Fiscal year ended
March 2022

63,29760,00030,000Fiscal year ended
March 2019

Consolidated
operatingincome(Millions of yen)

4,000

■ Carried-overconstruction
balance■ Order balance■ Completed
construction
balance

2,708 million yen (consolidated operating margin: 3.9%)
Operating income rose 22.3% from the previous fiscal year to 2,708 million yen thanks to rising sales.
(+22.3%/±0 points year-on-year)

Previous Medium-term
Business Plan

4.2%

Current Medium-term Business Plan
3.9%

6.0%

3.9%
3.0%

2,000

2,763

2,214

Operating income
Operating margin

2,708
0.0%

0
Fiscal year ended March
2020

Fiscal year ended March
2021

Fiscal year ended March2022

2*Figures have been rounded down to the nearest million yen.

2-1. Trend in consolidated order balance
The order balance rose 13.6% from the previous fiscal year to 71,453 million yen,surpassing 70 billion yen as residential, non-residential, and renovation orders rose.
Current Medium-term Business Plan

Previous Medium-term Business Plan

(Millions of yen)

80,00075,20071,45360,00062,90661,017

700
5,930

378
6,304

853
5,030

1,251
6,974

18,918

8,873

27,167

17,552

2.1%

1.4%

0.5%

0.9%

11.4%

8.0%

8.8%

7.9%

14.5%

27.9%

40,00020,00043,91739,47045,85336.1%
41,401

64.2%

62.7%

72.0%

26.5%

55.1%

0
Fiscal year ended
2020/3期
March 2020

Fiscal year ended
2021/3期
March 2021

Fiscal year ended
2022/3期
March
2022■Residential ■Non-residential ■Renovation ■Affiliates, etc.

Fiscal year ending

2023/3期（計画）March 2023 (plan)
Breakdown*The classification standards changed as of the fiscal year ended March 2022. Figures for previous fiscal years have been adjusted in line with the new classification standards.

32-2. Trend in consolidated order balance
By application Orders in the “Logistics warehouses and factories” category,a core segment, rose.
Education, culture and sports(Millions of yen)
Medical, welfare and elderly housing
Fiscal year ended
March 2020

Breakdown

Fiscal year ended
March 2021

Breakdown

Fiscal year ended
March 2022

Commercial facilities

Governmentbuildings andoffices

Condominiums and apartmentbuildings

Logistics warehouses and factories
Government buildings and offices

Logistics
warehouses
andfactories

Event halls
Commercial facilities
Education, culture and sports

Other

Event halls

Breakdown

Fiscal year
ended March
2022

Breakdownbyapplication

Medical, welfare and elderly housing

Condominiums
and apartmentbuildings

Other
Total

* Renovation work is classified on the basis of building application, while affiliates areincluded in the “Other” category.

KyushuBy region Orders in the “Kanto” category rose. (Millions of yen)
Fiscal year ended
March 2020
Breakdown

Fiscal year ended
March 2021
Breakdown

Fiscal year ended
March 2022
Breakdown

Chugoku and Shikoku
Tohoku

Kanto
Kinki

Fiscal year
ended March
2022

Chubu

Chubu

Breakdown
by region

TohokuChugoku and Shikoku
Kyushu

Kinki

Total

*Affiliates are included in the “Kinki” category.

4

Kanto

3. Trend in consolidated sales
Sales rose 23.3% from the previous fiscal year to 69,645 million yen as a result of increases in theconstruction balance carried over from the previous year and in the order balance.
Sales in the “Non-residential” category, which we’re working to strengthen, rose 28.4% from the previous
year to 18,281 million yen.
(Millions of yen)

Current Medium-term Business Plan

Previous Medium-term Business Plan

77,50080,000

1,700
6,599

69,6451,334
5,410

65,16760,000

2,126
6,650

56,49013,62818,281
3.3%

1.9%

2.2%

10.2%

8.9%

7.8%

8.5%

20.9%

25.2%

3.3%
40,00020,00024,0981,865
5,000
14,236

26.2%

31.1%
45,101

44,61942,762

65.6%

35,388

64.1%

62.6%

58.2%

0
Fiscal year ended
2020/3期
March 2020

Fiscal year ended
2021/3期
March 2021

Fiscal year ended
2022/3期
March 2022

■Residential ■Non-residential ■Renovation ■Affiliates, etc.

Fiscal year ending
2023/3期（予想）
March 2023 (outlook)

Breakdown*The classification standards changed as of the fiscal year ended March 2022. Figures for previous fiscal years have been adjusted in line with the new classification standards.

5

4. Trend in gross margin on consolidated sales
Gross margin on sales rose to 6,051 million yen thanks to rising sales.

(Millions of yen)

Current Medium-term Business Plan

Previous Medium-term Business Plan

10,000

9.7%
10.0%

9.0%

8.7%

8.6%
8,000

6,940
6,000

1,096

6.4%

355
713

778

19.5%

1,186

13.8%
2,000

3,386

298
637

5,455

357

4,000

360
744

6,051

5,618

60.3%

6.5%
13.1%
21.7%

3,200

8.0%

6.0%

4.9%

1,472

5.2%

889
10.7%

10.5%

4.0%

21.2%

14.7%
4,226

58.7%

4,363

62.9%

69.9%

2.0%

0

0.0%

Fiscal year ended
2020/3期
March 2020

Fiscal year ended
2021/3期
March 2021

Fiscal year ended
2022/3期
March 2022

■Residential ■Non-residential ■Renovation ■Affiliates, etc.

Fiscal year ending
2023/3期（予想）
March 2023 (outlook)

Breakdown*The classification standards changed as of the fiscal year ended March 2022. Figures for previous fiscal years have been adjusted in line with the new classification standards.

6

5. Consolidated balance sheet
Current assets rose as a result of growth in trade receivables (notes receivable, unpaid income from completed construction,and electronically recorded monetary claims), cash and deposits, and other accounts. Current liabilities rose as a result ofgrowth in accounts payable (notes payable, accounts payable for construction work, and electronically recorded liabilities) andother accounts. Net assets grew due to increase in retained earnings.

 Assets +8,128

 Liabilities and net assets +8,128 (Millions of yen)

(Millions of yen)

Total liabilities
and net assets

Total assets
Total liabilities
and net assets

48,662

Total assets

40,533

48,66240,533
Accounts payable

19,05135,248Cash and deposits

1,302

Trade receivables

6,124

Current assets

7,927

Tangible and intangible fixed
assetsInvestments and other assets

1,842
3,442
Fiscal year ended
2021/3期
March 2021

43,1762,367-46Advances received on
construction in progress

486

Income taxes payable-196

Current liabilities

6,740Interest-bearing debt

-70

Fixed liabilities-127

Retained earnings

1,396

Net assets

1,514

25,792

2,240

20,62919,114247■Current assets■Tangible and intangible fixed assets■Investments and other assets

6,167■Current liabilities■Fixed liabilities■Net assets

1,795
3,689
Fiscal year ended
2022/3期
March 2022

Fiscal year ended
2021/3期
March 2021
Capital adequacy ratio

7

Fiscal year ended
2022/3期
March 2022
Fiscal year ended
March 2021

Fiscal year ended
March 2022

47.2%

42.4%

6. Consolidated cash flows
The balance of cash and cash equivalents at the end of the fiscal year rose 1,302 million yen to 7,320 million yen as factors
including the posting of income before income taxes and other adjustments and growth in accounts payable (notes payable,accounts payable for construction work, and electronically recorded liabilities) offset increases in trade receivables (notes
receivable, unpaid income from completed construction, and electronically recorded monetary claims) and decreases inincome tax and other payments.
(Millions of yen)
10,000

1,960
7,320
-122

6,017

-535

5,000
Current税金等調整前当期純利益
net profit before
income taxes and other
売上債権
adjustments

仕入債務
未成工事受入金
Accounts
payable
法人税等
Advances
received on
Trade receivables

Cash andcash
construction in progressequivalents
Income taxes(Beginningof-year
balance)

2,689
2,689
▲ 6,124
6,167-6,124486
6,167▲ 1,126
486

Fixed
assets
固定資産

-112
▲ 112

Borrowing
借入金

-102
▲ 102
Dividend
payments ▲ 415
-415
配当金支払

Cash andcash
equivalents(End-of-year
balance)-1,1260
Fiscal year
2021/3期
ended March
2021

Sales
cash flow
営業CF

Investment
cash flow
投資CF

8

Financing
cash flow
財務CF

Fiscalyear ended
2022/3期
March 2022

7. Factors affecting consolidated operating income
Consolidated operating income rose 493 million yen from the previous year thanks to factors including
growth in the completed construction balance.

Construction
profit(Millions of yen)
3,000

Completed
construction
balance

Other

Selling, generalandadministrative
expenses

Operating margin
3.9%

2,708

Operating margin
3.9%

-52

2,214

-102

2,000

-502

1,151

1,000

Increase in gross margin on sales: +596

Increase in selling, generaland administrative
expenses: -102

Operating income: +493
0
Fiscalyear ended
2021/3期
March 2021

Fiscalyear ended
2022/3期
March 20229

8-1. Principal completed construction(October 2021 to March 2022)*In order of prefectural code

ClientBuilding

Prefecture

Use

Mitsubishi Estate Co., Ltd.
ENEOS Real Estate Corporation

Logicross Funabashi

Chiba

Logistics warehouses andfactories

JKK Tokyo Public Corporation

Metropolitan Sasazuka 2-chome
Apartments

Tokyo

Condominiums andapartment buildings(renovation)

Isseikai Social Medical Corporation

Isseikai Kimura Hospital

Tokyo

Medical, welfare andelderly housing

Shimizu Comprehensive Development
FUJISAWA THE TOWERTokyo Tatemono Co., Ltd.

Kanagawa

Condominiums andapartment buildings

Daiwa House Industry Co., Ltd.

Premist Yokohama-Tanmachi

Kanagawa

Condominiums andapartment buildings

Kanden Realty & Development Co.,Ltd.
Kintetsu Real Estate Co., Ltd.

Cielia Minoo-Senba

Osaka

Condominiums andapartment buildings

Kubota Corporation

Building C6, Sakai Plant

Osaka

Logistics warehouses andfactories (renovation)

Seino Transportation Co., Ltd.

Kawachi Branch, Seino Transportation
OsakaCo., Ltd.

Logistics warehouses andfactories (renovation)

Osaka Gas Co., Ltd.

Osaka Gas Imazu Athletic Field
Gymnasium

Hyogo

Educational, cultural, andsports facilities (renovation)

Takara Leben West Japan Co., Ltd.

Leben Haruda SILVISTA

Fukuoka

Condominiums andapartment buildings108-1. Principal completed construction(October 2021 to March 2022)

Logicross Funabashi

Premist Yokohama-Tanmachi

Isseikai Kimura Hospital

FUJISAWA THE TOWER

Cielia Minoo-Senba

Leben Haruda SILVISTA

11

8-2. Principal ordered construction(October 2021 to March 2022)*In order of prefectural code

ClientBuilding (project)

Prefecture

Use

IbarakiLogistics warehouses
and factories (renovation)

Tachibana Syoji Co., Ltd.

Former Toda Chuo Rehabilitation Hospital,
Institute, and Clinic

SaitamaMedical, welfare andelderly housing(renovation)

Logi Flag No. 1 LLC

Logi Flag Kuki I

Saitama

Logistics warehouses
and factories

Takara Leben Co., Ltd.

L.biz Nihonbashi

Tokyo

Government buildings
and offices

Tokyo Tatemono Co., Ltd.

Meguro Ohashi Condominium Project
Leased Building

Tokyo

Condominiums andapartment buildings

San Shin Jyuken Ltd.
Keikyu Real Estate Co., Ltd.
Taisei-Yuraku Real Estate Co., Ltd.

Yokosuka Hinodecho Project

Kanagawa

Condominiums andapartment buildings

Pressance Corporation

Pressance Loger Kamejima 1-chome

Aichi

Condominiums andapartment buildings

Mitsubishi Estate Co., Ltd.

Logicross Osaka-Katano

Osaka

Logistics warehouses
and factories

Tokyo Tatemono Co., Ltd.
Nishinomiya Takatsukacho Project
NTT Urban Development Corporation

Hyogo

Condominiums andapartment buildings

Anabuki Kosan Inc.

ShimaneCondominiums andapartment buildings

FP Corporation

FP Kanto No. 3 Center FM

AlphaStates Matsue Station South12

9. SDG initiatives (from the Medium-term
Business Plan)
Area

Resolvingenvironmental
problems

Environment
Resolving social
issuesS

ocial

Corporate
governance

Governance

Example initiative

Target

SDG targets

2021/32022/3
Performance Performance

Extending theservice life ofexisting buildings

Value of update
and renovation
orders

4.7
billionyen

5.3
billionyen

Making existingbuildings more
resilient

Number ofearthquake
resistancerenovation orders
received

4

6

Conducting R&D
into construction
technologies

Number of newtechnology
development
initiatives

3

5

Improvingproductivity

Per capita sales
improvement rate

Raisingcomplianceawareness

Number of
educationalsessions forofficers andemployees
13-17.7%+0.8%*Versus fiscal year
ended March 2020

*Versus fiscal year
ended March 2020

15

15

Progress towards Compliance with
the Prime Market’s Continued
Listing Criteria

Compliance with the Prime Market’sContinued Listing Criteria
Fiscal year As of transition
Compliance
ended Marchreferenceplan*32021*1
date*2

Fiscal year
ended March
2022*1Marketcapitalization

5.93 billion yen 6.48 billion yen 7.4 billion yen 8.63 billion yen

Trading value

10 million yen
per day

9 million yen
per day

Fiscal year
Fiscal year
Fiscal year
ending March ending March ending March
2023
2024
2025
At least 10
billion yen
At least 20
million yen perday

20 million yen 20 million yen
per day
per day

Reference: Progress towards targets listed in our compliance plan
Dividend ratio

26.2%

―

―

34.6%

ROE

8.7%

―

―

9.1%

At least 10%

ROIC

7.8%

―

―

9.1%

At least 10%

Consolidated sales 56.4 billion yen――

69.6 billion yen 77.5 billion yen

80 billion yen

Consolidated
current net profit(Consolidated
operating income)――1.81 billion yen 1.99 billion yen(2.7 billion yen) (2.9 billion yen)

2.8 billion yen(4 billion yen)

1.6 billion yen(2.21 billion
yen)

At least 50%*1 Market capitalization has been calculated by multiplying the average final share price on the Tokyo Stock Exchange during the three months leading up to the last day of the business yearby the number of outstanding shares as of the last day of the business year; trading volume has been calculated as the average value from January through December for each year.
*2 From “Primary Decision Results Concerning Compliance with New Market Section Continued Listing Criteria.”*3 From “Plan for Achieving Compliance with New Market Section Continued Listing Criteria,” as disclosed on December 15, 2021.
Market capitalization as of November 30, 2021; average trading value from January 2021 to November 2021.
The number of outstanding shares as of March 31, 2021, was used to calculate *1, *2, and *3.

15Basic plan for increasing shareholder value Building interconnected business and capital strategies with the goal of increasing shareholder value, along withgovernance structures to support them
 For the time being, striving to achieve growth and improvement through high-priority investments that help resolve
issues and balance-sheet management

Increasing
shareholder
value

Achieve market capitalization of at least 10.0 billion yen at the end of
the fiscal year ending March 2025 through management that’s aware of
our share price. Achieve operating profit of 4.0 billion yen (operating
margin of 5.0%) and net profit of 2.8 billion yen during the fiscal year
ending March 2025.

New businessstrategy
Investing 5.0 billion yen to improve corebusiness profitability by the fiscal year
ending March 2025

New capital strategy
Achieving a dividend ratio of at least 50% andusing interest-bearing debt

ESG

 Aggressive DX (strengthening core businesses) + defensive DX (increasing
productivity)
 Strengthening our core businesses by capturing large projects
 5.0 billion yen in peripheral and new businesses from a long-term perspective that
extends to 2030 (Total: 10 billion yen)
 Maintaining ROE and ROIC of at least 10% while maintaining connections with ourbusiness strategies (growth investments)
 Achieving a dividend ratio of at least 50% as a way to return profits toshareholders based on capital markets’ perspective
 We’ve cleared financial robustness criteria, including with regard to use of interestbearing debt
 Moving to build governance structures that put independent outside
directors in at least one-third of all Board positions
 Fostering awareness of the Board of Directors’ skill matrix and promoting
female directors
 Recognizing the need to realize a person- and planet-friendly society as animportant issue as we work to achieve a low-carbon, recycling-oriented society andconnecting that awareness to our business strategy

16Strategic growth investment (1) (DX plan overview)
Quickly realizing DX plan formulation, system development,

and companywide deployment
Giving efforts to increase corporate value top priority and establishing the DX Implementation
Headquarters, which is chaired by the president, on April 1, 2022, in an effort to implement our Mediumterm Business Plan and Vision 2030

Focusing investment on profit centers that yield orders and profits

Sales DX
•

•

•

•

Building DX systems that dramatically
boost quotation speed and estimation
precision
Contributing to customers’ highprecision business planning andexpanding opportunities to be involved
from the business planning stage
Deploying DX systems and increasing
our ability to secure orders in newmarkets
Reducing post-order profit fluctuation
risk through use of the most recent data
to secure reliable profits

Construction DX•••

Streamlining operations by putting inplace mobile environments atconstruction sites and deploying ICT
tools, construction BIM, and otherresources
Establishing structures for handling 100
billion yen projects by increasing per
capita productivity, defined as
construction value
Further improving profitability during theconstruction stage by building VE andCD support systems

17

Design DX•••

Increasing profit through front-loading by
boosting the percentage of jobs forwhich we handle both design andconstruction by enhancing our BIM
design capabilities
Strengthening our ability to participate inlarge-scale construction projects byimproving our ability to offer compelling
proposals to customers through BIM
Improving our ability to secure orders bystrengthening our design capabilities in
the non-residential segment through BIM

Strategic growth investment (2) (DX plan overview
and roadmap)
 Establish a roadmap expressing DX investment benefits for FY2024, the final year of the current Medium-term Business Plan.
 Formulate a DX plan for all domains by October 31, 2022, and determine our approach to new operational processes and datautilization.
 Put in place DX infrastructure and a DX environment in advance so that DX systems can operate in an effective manner.

Current Medium-term Business Plan
FY2022
1Q

FY2023
2Q

DX
environment
development

DX plan formulation

Construction
DX

Principal DX targets

DX infrastructure

4Q
Trial of new
operational
processes

Sales DX

DesignDX

3Q

Trial ofconstruction
management app

Systemdesign1Q

FY2024
2Q

3Q

4Q

1Q

FY2025
2Q

System testing
and revisions

Development of sales DX
system

3Q

4Q

1Q

2Q

Full deployment of DX systems

Companywide rollout of apps, etc., and progressive development and rollout of sitemanagement system

VE/CD simple system rollout + DX systemdevelopment

Full deployment of DX systems

Expansion of construction BIM

Standardization of construction BIM

Development of design BIM platform

BIM testing

Development of platforms for data andsystem interoperation
Companywide mobile
conversion, etc.

Expansion of design BIM
application

Deployment of interoperation platforms

Implementation of new workstyles

Cultivation of employee ICT literacy

Colored arrows indicate when the effects of measures will be felt.

18

Capital strategies

at least 50%

We will adopt a dividend ratio ofstarting with the fiscal year ending in March 2023.

Annual dividend

140

65.0%

120

55.0%

100

45.0%

Dividend ratio of 50%
80

34.6%
140

26.2%

60

40

0

11.3%
4.6%

60
40

10

20

Fiscal year ended Fiscal year ended
2016/3期
2017/3期
March
2016
March
2017

20

25.0%

15.0%
7.4%

5.9%

35.0%

120

22.1%
100

20

75.0%

40

5.0%

20

-5.0%
Fiscal year ended Fiscal year ended Fiscal year ended
2018/3期
2019/3期
2020/3期
March 2018
March 2019
March 2020

Fiscal year ended Fiscal year ended Fiscal year ending Fiscal year ending Fiscal year ending
2021/3期
2022/3期
2023/3期計画
March 2021
March 2022
March 2023 (plan)2024/3期計画
March 2024 (plan)2025/3期計画
March 2025 (plan)* The annual dividend during the fiscal year ending in March 2023 and beyond is determined in accordance with current
quantitative plans. Actual dividend amounts will vary with the extent to which the plans are being achieved.

19Specific initiative measures (governancestructures)
CG CodeInitiative

Fiscal year
ending March2023

Fiscal year ended Fiscal year ended Fiscal year ended
March 2016
March 2017
March 2022

Fiscal year
ending March2024

Fiscal year
ending March2025

Already implemented
4Transitioning to a corporate structure with an
Audit and Supervisory Committee

4-10 (1)

Establishing a Nomination and Remuneration
Committee and ensuring its independence

4-6

Revising operating officer structures (to reflect officers’
status as contractors rather than employees)

Complete
Complete
Complete
Introducing a new
performancelinked stockcompensation
program*1

4-2 (1)Introducing a performance-linked
compensation program

4-1 (3)

Formulating a succession plan

Complete

1-2 (4)

Implementing a platform allowing voting
rights to be exercised electronicallyComplete

3-1 (2)Disclosing information and providing
materials in English

Complete

Complete for
earnings
summaries(Gradually increasing the scope of disclosure)

Future initiatives
4-8

Ensuring independent outside directors
comprise at least one-third of the Board of
Directors (Formulating a skill matrix)

Scheduledcompletion

4-11 (1)Promoting female directors

Scheduledcompletion

3-1 (3)

Implementing TCFD disclosures

5-1

Revitalizing our IR activities

Scheduledcompletion
Disclosing
supplemental
end-of-year
financialinformation

Hosting briefings
for institutional
and private
investors*1 Scheduled to be discussed at the Regular Shareholders’ Meeting scheduled to be held on June 24, 2022.

20(Implementing as appropriate)Concerning the introduction of a performancelinked stock compensation program Overview of the program We will introduce a performance-linked stock compensation program (performance share unit program).
* Eligibility: Daisue directors other than outside directors and directors who serve on the Audit andSupervisory Committee, as well as operating officers who do not serve as directors.
* A resolution concerning the introduction of this program is scheduled to be considered at the 76th Regular
Shareholders’ Meeting scheduled to be held on June 24, 2022.

 Purpose of the program To establish a clearer link between eligible directors’ compensation and Daisue’s performance andshareholder value
 To raise awareness of the need to contribute to improving medium- and long-term performance andcorporate value

 Grant conditions and method for calculating number of shares The following factors will be considered as of June 30, 2025:(1) That Daisue’s market capitalization has exceeded 10 billion yen(2) That Daisue continues to be listed in the Tokyo Stock Exchange’s Prime Market, and that no decision
has been made to move its shares to another market
 Total shareholder return (TSR) will be used as a performance-linked coefficient.
*Calculation period: 3 years (March 31, 2022, to March 31, 2025)21

A company that creates spaces rich insecurity and joy