Financial Briefing for the Fiscal Year
Ended March 2023
Progress towards Compliance with thePrime Market’s Continued ListingCriteria
May 26, 2023

1. Summary of results for the fiscal year ended
March 2023
71,054 million yen (+3.3％ year-on-year)

Consolidated
completed
construction
balance

The completed construction balance rose 3.3% from the previous fiscal year to 71,054 million yen
as a result of an increase in the construction balance carried forward from the previous fiscal year
and a significant increase in the order balance resulting from the receipt of large residential orders.
Reference: Construction balance carried over from previous fiscal year + order balance completed construction = Construction balance carried over to next fiscal year

86,958 71,054(Millions of yen)

62,90671,45355,68867,21659,998

Fiscal year ended
March 2020

68,79285,781

69,878

Fiscal year ended March 2021

Fiscal year ended March 2022

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

Fiscal year ended March 2023

1,887 million yen (consolidated operating margin: 2.6%)

Consolidated
operatingincomeConsolidated operating income fell 30.3% from the previous fiscal year to 1,887 million yen as aresult of factors including soaring building material costs and efforts to secure strategic orders inflagship business areas.
(Millions of yen)

3,000

3.9%

3.9%

4.0%

2.6%

2,000

2.0%

1,000
0

2,214

2,708

1,887

Fiscal year ended March 2021

Fiscal year ended March 2022

Fiscal year ended March 2023

Operating income

Operating margin
0.0%*Figures have been rounded down to the nearest million yen.

2

2-1. Trend in consolidated sales
Sales rose 3.1% from the previous fiscal year to 71,834 million yen as a result of increases in the construction
balance carried over from the previous year and in the order balance.
We’re making steady progress towards achieving the 2030 Vision’s sales target of 100 billion yen.
(Millions of yen)

80,00069,645

1,393
3,657

809

874
5,780
60,00077,10071,834
7,839

56,49024,036

1.8%

846
5,723

18,30018,3701.1%

1.3%
40,00020,0000

14,630

1.5%

8.3%

10.1%

26.4%

25.9%

64.0%

62.5%

4.7%

10.9%

31.2%

25.5%

62.3%

62.5%
48,011

44,61944,885

Fiscal year ended
22/3期
March
2022

Fiscal year ended
23/3期
March
2023

35,289Fiscal year ended
21/3期
March
2021

■Residential ■Non-residential ■Renovation ■Other

Fiscal year ending
24/3期(計画)March
2024 (plan)

Breakdown*The classification standards changed as of the fiscal year ended March 2023. Figures for previous fiscal years have been adjusted in line with the new classification standards.

32-2. Principal completed construction
Residential

Brillia Nerima-Kasugacho

Latierra Otorii

Proud Omiya-Sakuragicho

Tokyo Tatemono Co., Ltd. / Tokyo

Tokyo Gas Real Estate Co., Ltd. / Tokyo

Nomura Real Estate Development Co., Ltd. /Saitama Prefecture

Non-residential

Ref Kanku-Izumisano by Vessel Hotels

Logicross Osaka-Katano

PremistYokohama-Tanmachi
JA Mitsui
Leasing Tatemono Co., Ltd. / Osaka Prefecture

Mitsubishi Estate Co., Ltd. / Osaka Prefecture43-1. Trend in gross margin on sales and factors
affecting operating income
Gross margin on sales fell 11.0% from the previous fiscal year to 5,384 million yen while operating income
fell 30.3% to 1,887 million yen, reflecting factors including (1) soaring building material costs and (2) efforts
to secure strategic orders in core business areas.

Trend in gross margin on sales

Factors affecting operating income(Millions of yen)

(Millions of yen)

9.7%

10.0%Operating margin

3.9%

8.7%

8.0%

5,384

210
684
3.9%

161
3.5%

899

110

6.0%

1,887

3.0%
5.0%

-829

1,176
449

1,239
14.9%

8.4%

58.6%

70.3%

66.8%

3,197

-154

4.0%

22.7%

4,258

52

21.8%

11.3%

14.8%

2,708

7.0%

6,051
212
805

2.6%

9.0%

7.5%

5,455

Operating margin

3.0%

3,597

Increase in selling,
general andadministrative
expenses: -154

Decrease in grossmargin on sales: -667

2.0%
1.0%

Operating income: -821
0.0%
Fiscal year ended
21/3期
March
2021

Fiscal year ended
22/3期
March
2022

Fiscal year ended
March 2022

Fiscal year ended
23/3期
March
2023

■Residential ■Non-residential ■Renovation ■Other

Fiscal year ended
March 2023

22/3期
OperatingincomeBreakdown

23/3期

Completed
construction
balance

Construction profit

Other

Selling, generaland administrative
expenses*The classification standards changed as of the fiscal year ended March 2023. Figures for previous fiscal years have been adjusted in line with the new classification standards.

5

Operatingincome3-2. Factors behind the decrease in profitability
and improvement initiatives
The decrease in profitability is due to two principal factors–(1) soaring building material costs and (2) efforts to create a strategic trackrecord of participation in projects in core business areas–and will have a temporary effect. We expect profit to improve going forward as
building material costs settle down and as a trend towards improved profitability takes hold in the non-residential segment of our business.

Factor (2) Efforts to create a strategic track record ofparticipation in projects in core business areas

Factor (1) Soaring building material costsPrice hikes for building materials exceeded our initialexpectations, pushing down profitability in multiple
projects.
The trend since August 2022 has been for prices tocreep down, and we’re seeing signs of stability.



Construction material price index (nationwide)*1
150

145

Illustration of order balance and profitability at the time oforder receipt

143

Downward
creep starting inAugust 2022

100

Increase in orderbalance for nonresidential
projects

Profitability at thetime of order
receipt (nonresidential)

120
110

Order balance (nonresidential)

Profitability at the timeof order receipt(residential)

140

130

During the fiscal year ended March 2022, we secured orders for
non-residential projects (particularly for logistics projects) at
strategic prices in order to build a track record of success while
gaining expertise.
Profitability at the time of order receipt started to improve
during the fiscal year ended March 2023 as we accumulate a
track record of success and expertise.

Rising building material
costs since July 2021

0Declining
profitability as we
secure orders at
strategic prices

July 2020 January 2021 July 2021 January 2022 July 2022 January 2023

We’re currently bolstering structures so we can deal with pricefluctuations in a timely manner (more aggressive pricenegotiations in times of inflation, sales DX, etc.) as a way to prepare
for additional upward price pressure on building materials.

Fiscal year ended
March 2021

*1: Compiled based on data released by the Economic Research Association; April 2020 = 100.

6

Improvement trend in
profitability as we
accumulate a track recordof success and expertise
Fiscal year ended
March 2022

Fiscal year ended
March 2023

4-1. Trend in consolidated order balance
We added orders for large condominium buildings as well as orders for logistics warehouses and other facilities,
both of which are flagship business areas, pushing the consolidated order balance up to 86,958 million yen.

86,958(Millions of yen)

90,00036
5,213

77,7000.0%

71,453
19
6,662

62,90660,000

27
5,672

6.0%

0.0%
9.0%

24,52628.2%
0.0%

18,9185,250

6.8%
17,88365.8%

17,736

26.5%

62.8%

64.2%

30,00057,18154,565

Fiscal year ended
23/3期
March 2023

24/3期（計画）
March 2024 (plan)

45,85339,4700

Fiscal year ended
21/3期
March 2021

Fiscal year ended
22/3期
March 2022

■Residential ■Non-residential ■Renovation ■Other

Fiscal year ending

Breakdown*The classification standards changed as of the fiscal year ended March 2023. Figures for previous fiscal years have been adjusted in line with the new classification standards.

7

23.0%

70.2%

9.3%

28.2%

0.0%

4-2. Breakdown of the consolidated order balance
By application

Orders for condominium and apartmentbuildings as well as orders for logistics
warehouses and commercial facilities, allflagship business areas, rose.
(Millions of yen)2021/32022/32023/3

Breakdown
構成比

Breakdown
構成比

Breakdown
構成比41,851 66.5%

46,775 65.5%

58,337 66.9%

9,745 15.5%

13,947 19.5%

16,919 19.5%

商業施設
Commercial facilities

2,809

4.5%

2,634

3.7%

5,979

6.9%

Government buildings and offices
庁舎・オフィス

1,878

3.0%

3,241

4.5%

2,415

2.8%

Medical, welfare and elderly
医療・福祉・高齢者住宅
housing

2,195

3.5%

1,055

1.5%

1,956

2.3%

Education, culture and sports
教育・文化・スポーツ

2,737

4.4%

2,657

3.7%

675

0.8%

Event halls
イベントホール

1,662

2.6%

1,122

1.6%

614

0.7%

27

0.0%

20

0.0%

59

0.1%

Condominiums and apartment
マンション・集合住宅
buildings
Logistics warehouses and物流倉庫・工場
factories

Other
その他
Total
合計

62,906 100.0%

71,453 100.0%

Breakdown
構成比

Breakdown
構成比

Kanto
関東

28,562 45.4%

33,069 46.2%

39,315 45.3%

Kinki
近畿

22,193 35.3%

18,920 26.5%

28,085 32.3%

Chubu
中部

4,852

7.7%

6,977

9.8%

8,630

9.9%

Kyushu
九州

4,572

7.3%

3,983

5.6%

4,072

4.7%

Chugoku and Shikoku
中国・四国

2,284

3.6%

4,739

6.6%

3,947

4.5%

440

0.7%

3,764

5.3%

2,906

3.3%

62,906 100.0%

71,453 100.0%

Condomini
ums andapartment
buildings

TohokuKyush

2023/3

Breakdown
構成比

合計
Total

Breakdownbyapplication

Chugoku and Shikoku

Orders rose in the Kanto, Kinki, and Chubu regions,

Tohoku東北

Fiscal year
ended March
2023

86,958 100.0%

By region all of which are major markets for Daisue. (Millions of yen)2022/3

Commercial
facilities
Logistics
warehouses
and factories*Renovation work is classified on the basis of building application.

2021/3Government buildings and offices

Chubu

Fiscal year
ended March
2023

Breakdown
by region
Kinki

86,958 100.0%

8

Kanto

4-3. Favorable factors in the residential segment 1/2
The urban small and medium-size condominium market is a major business segment for Daisue, and we have aleading track record in that domain. In recent years, we’ve also focused on strengthening our ability to handle large
projects, reflecting a recent trend towards larger and higher condominium buildings.
The urban small and medium-size condominium market
is a major business segment for Daisue.

In recent years, we’re strengthened our ability to handle
large projects as well.

We’ve accumulated a track record of success by focusing on
urban small and medium-size condominium buildings even as
other companies have focused on non-residential projects inrecent years.
We have a leading track record of success in the domain.

We're strengthening our ability to handle high-rise condominium
projects, reflecting a recent trend towards larger and higher
condominium buildings.
The value of orders is trending up, and we’re starting to see
results.

1,000
condominiums
and upTrend in Daisue order value

Large projects

Major generalcontractors(Hundreds of millions of yen)

20

Quasi-major andmainstay generalcontractors

16
14

100 condominiums
and upSmall and mediumsize projects

18

18
14
13

13

13
Order value is rising due
to a trend towards larger
projects.

12
Small,
medium-size,and local generalcontractors

0
Fiscal year
ended March2019

We have a leading track record in urban small and medium-size
condominium buildings*.

Urban

Fiscal year
ended March
2020

Fiscal year
ended March
2021

Fiscal year
ended March2022

Fiscal year
ended March
2023

Track record of securing orders for large projects• Grand Maison Kitahorie 2-chome Project (official name to be determined) (178
condominiums)• Residential Building, Miyamotocho District 2 Improvement Program for Select
Structures (250 condominiums)

Suburban

Source: Daisue estimates based on “Nationwide Condominium Market Trends,”
published by the Real Estate Economic Institute Co, Ltd.

9

4-3. Favorable factors in the residential segment 2/2
The shrinking of Japan's population is having little impact in the urban areas that are Daisue’s major
markets; therefore, the current, stable order environment is expected to continue, and we expect ordervalue to rise as part of the trend towards larger projects.

Although the condominium market is shrinking as a result of nationwide population loss...
The impact of the shrinking population in the urban areas that are
Daisue’s major markets is limited, and Tokyo’s 23 wards are
expected to continue to experience population inflows in theimmediate future.

The recent trend to larger condominiums has beenpronounced, and order value is rising steadily.

Estimated future population (coefficient of change)*1

110

Number of completed construction projects in fivelargest cities*2

Fukuoka

400

Tokyo’s
23 wards

105

350
300

100

Sapporo250

Nagoya

200

Osaka

95

The number of large and super-large
condominium buildings is rising.
332
308
59
70
235

90
0
’15

’20

’25

’30

’35

100

273
191

238

50
0

’20

’21

’22

*1 Compiled based on Japan's national census. 2015 population = 100.
*2 Compiled based on “Newly Built Condominium Building Property Data (2020 to 2022 Supply),” published by the Real Estate Economic Institute Co., Ltd.

10Large andsuper-large
projects

44

150
Nationwide(Outside 5 largest
cities)(Buildings)

Small andmediumsize
projects

4-4. Principal ordered construction* An artist’s conception of thecompleted building is shown foreach project.

Residential

Lions Kakuozan

Albio Garden Shin-Kurashiki Ekimae

Grand Maison Kitahorie 2-chome Project(official name to be determined)

Daikyo Incorporated /Aichi Prefecture

Misawa Homes Chugoku Co., Ltd. /Okayama Prefecture

Sekisui House, Ltd. / Osaka
Prefecture

Non-residential

Logifront Atsugi (official name to be
determined)

Commercial Building, Miyamotocho District 2 Improvement Program for Select
Structures*1

PremistYokohama-Tanmachi
Nippon Steel
Kowa Real Estate Co., Ltd. /Miyamotocho District 2 Improvement Program for Select Structures
Joint Contractor Conference / Gunma Prefecture

Kanagawa Prefecture

11*1 This composite
redevelopment project
includes a department store,
condominiums, and otheroccupants. Daisue received
the general order.

5. Summary of the plan for the fiscal year ending
March 2024
77,100 million yen (+7.3% year-on-year)

Consolidatedsales

We expect sales for the fiscal year ending March 2024 to rise 7.3% to 77,100 million yen thanks tofactors including a significant increase in the order balance for the fiscal year ended March 2023.
(Millions of yen)

Consolidated
operatingincome69,64571,834

77,100Fiscal year ended
22/3期
March 2022

Fiscal year ended
23/3期
March 2023

Fiscal year ending
24/3期
March 2024

2,200 million yen (consolidated operating margin: 2.9%)
We expect consolidated operating income to rise 312 million yen from the previous fiscal year to
2,200 million yen thanks to gradual improvement in construction profitability as we approach the endof the fiscal year. (+16.6% year-on-year)(Millions of yen)
3.9%

3,000

4.0%

2.6%

2,000

2.9%
Operating income
2.0%
Operating margin

1,000
0

2,708

1,887

2,200

Fiscal year ended March 2022

Fiscal year ended March 2023

Fiscal year ending March 2024

12

0.0%

6. Consolidated balance sheet
With regard to assets, among current assets, trade receivables (notes receivable, unpaid income from completed
construction, and electronically recorded monetary claims) fell compared to the previous fiscal year. With regard to liabilities
and net assets, current liabilities fell as a result of factors including decreases in accounts payable (notes payable, accounts
payable for construction work, and electronically recorded liabilities), while net assets rose as a result of an increase inretained earnings and other factors.

 Assets -3,037

 Liabilities and net assets -3,037(Millions of yen)

(Millions of yen)

Total assets

Total
liabilities andnet assets

Total assets

48,662

48,662
45,625

Cash and deposits

2,666

Trade receivables-6,493Current assets-3,65325,792

Total
liabilities andnet assets
Accounts payable-2,462

Interest-bearing debt

-93

Advances received on
construction in progress-392

Income taxes payable-580

Provision for loss on
construction contracts-224

Current liabilities

43,176

1,795
3,689
Fiscal year ended
22/3期
March
2022

Tangible and intangible fixed
assets541

Investments and other assets

74■ Current assets■ Tangible and intangible fixed
assets■ Investments and other assets

39,523

21,982-3,809Interest-bearing debt

-83

Fixed liabilities

-134

2,105

2,240

20,6292,337
3,764
Fiscal year ended
23/3期
March
2023

Fiscal year ended
22/3期
March
2022

13

45,625Retained earnings

587

Net assets

906

21,536■ Current liabilities■ Fixed liabilities■ Net assets

Capitaladequacy ratio

Fiscal year ended
March 2022

Fiscal year ended
March 2023

42.4%

47.2%

Fiscal year ended
23/3期
March
2023

7. Consolidated cash flows
The balance of cash and cash equivalents at the end of the fiscal year rose 2,666 million yen to 9,986 million yen as
factors including a decrease in trade receivables (notes receivable, unpaid income from completed construction,
contract assets, and electronically recorded monetary claims) and posting of income before income taxes and otheradjustments offset decreases in accounts payable (notes payable, accounts payable for construction work, andelectronically recorded liabilities) and decreases due to payment of income taxes, payment of dividends, and otherfactors.
(Millions of yen)

9,986

-516

-1,0097,320

4,192
Net income before taxes

税引前当期純利益

Balance of
cash and cash
equivalents atthe beginningof the fiscal
year
Fiscal year ended
22/3期
March
2022

Provision for loss on
工事損失引当金construction
contracts
Trade売上債権
receivables

仕入債務

Accounts payable

Advances received on
未成工事受入金
constructionin progress

法人税等
Income
taxes

1,930

1,930
-224
▲ 224
6,493
6,493
-2,462▲ 2,462-392▲ 392▲ 1,046-1,046

営業CF
Sales
cash flow

Fixed assets
固定資産
Investment securities
投資有価証券

-659
▲ 659
9696

投資CFcash flow
Investment

14

借入金
Dividend payments
配当金支払
自己株取得
Borrowing

Financing
cash flow
財務CF

-176
▲ 176
-727
▲ 727
▲ 102

Balance of
cash and cash
equivalents at
the end of the
fiscal year
Fiscal year ended
23/3期
March 2023

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

Exampleinitiative

Resolvingenvironmental Extending theservice life ofproblems
existing

E

Target

SDG targets

Implemented Implemented
during fiscal during fiscal
year ended
year ended
March 2022
March 2023

Value of update andrenovation orders

5.3 billion
yen

3.84
billionyen

Making existingbuildings more
resilient

Number of earthquake
resistance renovation
orders received

63Conducting
R&D into
construction
technologies

Number of newtechnology
development
initiatives

5

2

+0.8%

-0.0%

15

15

buildings
nvironment

Resolving social
issuesS

ocial

Improvingproductivity

Corporate
governanceG

Raisingcomplianceawareness

Per capita sales
improvement rate
*Versus fiscal year ended
March 2020

Number of educationalsessions for officers
and employees

overnance
15

9. SDG initiatives (reference)
Participating as a member organization of the Osaka Zero Carbon Smart City Foundation(OZCaF) because we support its mission
What is the Osaka Zero Carbon Smart City Foundation (OZCaF)?
The Osaka Zero Carbon Smart City Foundation was foundedwith the goal of giving shape to more ambitious, advanced
initiatives related to the Sustainable Development Goals (SDGs)
from Osaka, facilitating their spread nationwide, and playing aleading role in the realization of a decarbonized society by 2050.

A Daisue representative participated as a panelist at the OZCaF Innovation Conference, which washeld on March 14, 2023.
Participants discussed topics including initiatives to help realize a decarbonized society.

16

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

Summary of compliance with the Prime Market’s
continued listing criteriaWith regard to the continued listing criteria, we did not meet the market capitalization criterion
as of the judgment for the fiscal year ended March 2023, but we met the trading value
criterion, as we disclosed on March 23, 2023.

Marketcapitalization

Tradingvalue

As of transitionreference dateFiscal year ended
March 2023

Fiscal year ending
March 2025

6.48

7.71

billionyenbillionyen

At least 10

978

millionyen perday

millionyen perday
As disclosed on
March 23, 2023

*For details, including the timing of calculations, please see the following page.

18

billion yen

At least 20
million yen
per dayDetails concerning compliance with the Prime
Market’s continued listing criteria
We will continue to work to achieve compliance with the Prime Market's criteria by the end of the fiscal year ending March 2025.
Fiscal year
ended March
2021*1

As of transitionreference date*2

Complianceplan*3Fiscal year
ended March
2022*1

Fiscal year
ended March
2023*1

Fiscal year
ending March2024

Fiscal year
ending March
2025

Market capitalization

5.93 billion yen

6.48 billion yen

7.4 billion yen

8.63 billion yen

7.71 billion yen

At least 10 billion
yen

Trading value

10 million yen
per day

9 million yen perday

20 million yen
per day

20 million yen
per day

70 million yen
per day

At least 20
million yen per
day

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

26.2%

―

―

34.6%

50.7%

ROE

8.7%

―

―

9.1%

6.3%

At least 10%

ROIC

7.8%

―

―

9.1%

6.2%

At least 10%56.4 billion yen――

69.6 billion yen

71.8 billion yen

80 billion yen

Consolidated current
net profit
1.6 billion yen(Consolidated(2.21 billion yen)operating income)――1.81 billion yen 1.32 billion yen(2.7 billion yen) (1.88 billion yen)

2.8 billion yen(4 billion yen)

Consolidated sales*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 year by 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 *2 and *3.

19Basic plan for increasing shareholder value
Striving to comply with the listing criteria while increasing medium- and long-term value Starting to study whether to move the next Medium-term Business Plan forward from the fiscal year ending March 2024
in an effort to realize a medium- and long-term transition to profitability while increasing shareholder value Building interconnected business and capital strategies with the goal of increasing shareholder value, along with governancestructures to support them
 For the time being, striving to achieve growth and improvement through high-priority investments that help resolve issues andbalance-sheet management

Basic policies and progress
Increasing
shareholder
value

Businessstrategy
Capital strategy

ESG

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.
 Aggressive DX (strengthening core businesses) + defensive DX(increasing productivity)
 Strengthening our core businesses by capturing large projects
 Investing 5 billion yen (for a total of 10 billion yen when combined withexisting business investments) in entering peripheral and new segments
over the medium and long term through 2030

Moving forward
investments inentering peripheraland newbusinesses to thefiscal year ending
March 2025

 Maintaining ROE and ROIC of at least 10% while maintaining
connections with our business strategies (growth investments)
 Achieving a dividend ratio of at least 50% as a way to return profits
to shareholders based on capital markets’ perspective
 We’ve cleared financial robustness criteria, including with regard to useof interest-bearing debt

Continuing adividend ratio ofat least 50%

 Completing the introduction of and continuing governancestrengthening measures to ensure independent outside directors makeup one-third of the Board of Directors and appointing 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 and connecting that awareness to our business strategy

Progress
according toschedule

20

Businessstrategy

Capital strategy

ESG

Business growth and investment policies
In addition to strengthening the business platforms that underpin our existing businesses, wewill invest a total of 10 billion yen by the fiscal year ending March 2025 as we move forwardthat spending from the Medium-term Business Plan in an effort to accelerate our entry into
peripheral and new segments.

5.0 billion yen

5.0 billion yen

Increasing the technical capability andprofitability of existing businesses

Entering peripheral businesses and new
segments

Residential

Nonresidential

Civil
engineering

Renovation

Real estate

Environment

Moving investment forward to the period from thisfiscal year to the fiscal year ending March 2025

• Implementing the DX (sales, construction, anddesign)• Entry into super-high-rise buildings and superlarge projects worth at least 5.0 to 10.0 billion yen• Developing and acquiring zero-energy
technologies like ZEB, ZEH, and woodconstruction techniques• Reentering the civil engineering business as adomain where we can build competitive
advantages in a business that’s not impacted bymarket conditions• Entering the real estate business in an effort toincrease added value for client proposals throughtechniques such as incorporating land offerings
into the sales process• Aiming to capture orders in growth domains while
contributing to the achievement of the SDGs inareas such as renewable energy
21

Businessstrategy

Capital strategy

ESG

Strengthening existing businesses: DX goals
Approach to DX for realizing the Medium-term Business Plan for
the fiscal year ending in March 2025 and 2030 Vision
Issues for realizing the Medium-term Business Plan for the fiscal year ending in March 2025 and 2030 Vision
 Expanding orders and strengthening construction capabilities in order toachieve sales of 100 billion yen
 Preparing young employees to make an immediate contribution bypassing on veterans’ technical skills and expertise

Using DX to resolve issues and working to makereforms with an overwhelming sense of speed

Sales DX:

Construction DX: Strengthening site

Strengthening sales capabilities

management capabilities• Strengthening sales capabilities by using DX
systems to apply veteran salespeople’s
expertise horizontally across the company• Increasing quotation speed by developing
systems• Strengthening site management capabilities byusing DX systems to apply veteran site managers’
expertise horizontally across the company• Improving productivity by using ICT tools to
streamline work

Implementing the DX to enable knowledge to bepassed on from veterans to young employees
and to allow use of integrated information
throughout the company

Reforms tofacilitate therealization of the2030 Vision

Design DX:

Management DX:

Improving the precision of design work

Accelerating decision-making• Increasing the precision of design drawings
through the use of BIM• Improving “buildability” by visualizing
drawings with BIM• Supporting prompt countermeasures and improvement
activities through the timely assessment and analysis ofadministration- and management-related data, forexample construction progress

22

Businessstrategy

Capital strategy

ESG

Strengthening existing businesses: DX implementation structures andschedule
Companywide DX implementation structures
DX as a way to aggregate and evolve companywide capabilities
Timely decision-making
by having various
teams report directly tothe president

Overall DX schedule
Design phase
Fiscal year ended March 2023
1Q
2Q
3Q
4Q
Sales DX
Construction
DX
Management
DX

Design DX

DX system
Structural
formulation
Definition ofrequirements

DX system
Overview
designFormulation of BIM implementation
plan

Robust systemdevelopment
partners

Composition of aDX team that cuts
across departments▼TodayDevelopment phase
Fiscal year ending March 2024
1Q
2Q
3Q
4Q
Development
Phase I

Operation
Phase I

Detailed
designDevelopment
Phase II

Development
Phase I

Operation
Phase I

Strengthening of proposal
capabilities through use of BIM

Reaping of benefits
Fiscal year ending March 2025
1Q
2Q
3Q
4Q

Start ofoperation
Reaping of
benefits

Evaluation
andimprovementplan

BIM human resource education

We're currently making progress according to schedule as we work to progressively start
operation and reap benefits from this fiscal year.
23Businessstrategy

Capital strategy

ESG

Entering peripheral businesses and new segments
Expanding our businessdomainReal estate
Securing business profit
from non-contract workthrough landdevelopment andleased real estate

Existing
businesses
Residential,
non-residential,
renovation

Environment
Securing stable profit
by entering
environmental
businesses likerenewable energy

Civil engineering
Entering the civil engineering
domain, including through useof M&As
Capturing orders from growthdomains related to national
resilience projects

We’re studying entering the civil engineering business, real estate business, and environmental
business in an effort to stabilize our portfolio through business diversification.
24

Businessstrategy

Capital strategy

ESG

Allocation of growth investments (by the fiscal year ending March 2025)
We've decided to allocate growth investments of 10 billion yen by the fiscal year ending March 2025. As of thisfiscal year, we’ve already invested 900 million yen to strengthen existing businesses and implement the DX, as well
as 500 million yen to enter peripheral businesses and new segments.

Anticipated investment amounts(Hundreds ofmillions of yen)

50
We’re moving the start of thoseinvestments up to the fiscal year
ending March 2025.
9
7

41

45
5

2

Total:
10 billion yen

34
Plan
results

7
Strengthening
existing
businesses

DX
implementation

Entry into
peripheralbusinesses
25

Investment
amounts

Businessstrategy

Capital strategy

ESG

Dividend policy geared to increase shareholder value
We’ve maintained a dividend ratio of at least 50% since the fiscal year ended March 2023,
and we will continue to actively return profits to shareholders.

at least 50%

We adopted a dividend ratio ofstarting with the fiscal year ended March 2023.

34.6%

Dividend ratio
50%

50.7%
70 (plan value)

5.9%

11.3%

7.4%

20

20

20

22.1%

26.2%

40

40

60

64

Annual dividend
(Yen)

4.6%

10

Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ending
16/3期
17/3期
18/3期
19/3期
20/3期
21/3期
22/3期
23/3期
24/3期
March
2016
March
2017
March 2018
March 2019
March 2020
March 2021
March 2022
March 2023
March 2024

1.3%

2.0%

1.9%

2.2%

5.2%

4.2%

4.8%

5.5%

Dividend
yield*The annual dividend during the fiscal year ending March 2024 is determined in accordance with current quantitativeplans. Actual dividend amounts will vary with the extent to which the plans are being achieved.

26

Businessstrategy

Capital strategy

ESG

Progress of initiatives to strengthen governanceWe've completed the implementation of various policies according to schedule.
CG CodeInitiative

Fiscal year
ended March2016

Fiscal year
ended March2017

Fiscal year
ended March2022

Fiscal year
ended March2023

Fiscal year
ending March2024

Fiscal year
ending March2025

Already implemented
44-10 (1)

4-6

4-2 (1)4-1 (3)
1-2 (4)3-1 (2)

Transitioning to a corporate structure with
an Audit and Supervisory Committee
Establishing a Nomination andRemuneration Committee and ensuring its
independence
Revising operating officer structures (toensure consistency with a delegation
approach)Complete
Complete
Complete

Introducing a performance-linked
compensation program

Introducing aperformance-linked
stock compensation
program (complete)Complete
Complete

Formulating a succession plan
Implementing a platform allowing voting
rights to be exercised electronicallyComplete
Complete for
earnings
summaries

Disclosing information and providing
materials in English

Future initiatives
Ensuring independent outside directors
4-8
comprise at least one-third of the Board of
Directors (Formulating a skill matrix)
4-11 (1)Promoting female directors
3-1 (3)5-1Complete
Complete

Scheduledcompletion

Implementing TCFD disclosures

Revitalizing our IR activities(Strengthening dialog with investors)(Gradually increasing the scope of disclosure)

Disclosing
supplemental
end-of-year
financialinformation

Hosting briefings
for institutional
and private
investors

27(Strengthening implementation)

Businessstrategy

Capital strategy

ESG

Strengthening dialog with investors
We’re strengthening our IR activities, for example by hosting briefings and one-on-one
meetings to help more institutional investors and private investors understand Daisue’sbusiness activities.
Hosting investor briefings
 During the fiscal year ended March 2023, we held two briefings for institutional investors and one briefing forprivate investors.
• We also began streaming briefings online (on YouTube).
 Plans for fiscal year ending March 2024
• For institutional investors: First half (May), second half (November)• For private investors: At least 1 briefing Starting during the fiscal year ending March 2024, we will adopt a policy of increasing the number of oneon-one meetings with institutional investors.

 Investor briefing (in person and on YouTube) Briefing for private investors in Tokyo hosted by Nihon Securities Journal
Inc. (November 22, 2022)

Kazunori Murao
President and Representative
Director
Daisue Construction Co., Ltd.
Tokyo Stock Exchange, Prime
Market (1814)

128

A company that creates spaces richin security and joy

Inquiries concerning this document
Management Strategy Department
DAISUE CONSTRUCTION CO., LTD.
Phone: 06-6121-7127
E-mail: dai-info@daisue.co.jp
The information in this document is based on Daisue’s best judgment as of the time of its
compilation. It should not be construed as representing a commitment or guarantee concerning therealization or implementation of future planned performance or policies.