Financial Briefing for the Fiscal Year
Ended March 2024
May 24, 2024

FY2023 Financial Results
Overview

1. Summary of results for the fiscal year ended
March 2024
Consolidated
order balance

94,324 million yen (+8.5％ YoY)
The consolidated order balance stood at 94,324 million yen, rising 8.5% from the end of the previous fiscal
year. The amount is the highest level in recent years.
Reference: Construction balance carried over from previous fiscal year + order balance completed construction balance = Construction balance carried over to next
fiscal year

94,324 76,453(Millions of yen)

71,453

86,95868,792

71,054

103,716*¹

67,216

FY 202085,84569,878FY2021

FY2022

FY2023*¹ Carried-over construction balance of FY2022 includes that of Kamisima Corporation,
which became our wholly owned subsidiary in November 2023

(Fiscal year starts in April and ends in March)

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

1,590 million yen (consolidated operating margin: 2.0%)
Consolidated operating profit dropped to 1,590 million yen, decreased by 15.7% from FY2022, mainly due tosluggish progress in efforts to adjust pricing to adjust pricing to pass the soaring cost of construction materials
on to prices, with a focus on orders received during the previous fiscal year.
（Millions of yen）

3,000

3.9%
2.6%

2,000
1,000

4.0%
2.0%

Operating Profit
2.0%
Operating Margin

2,708

1,887

1,590

0

0.0%
FY2021

FY2022

3

FY2023*Figures have been rounded down to the nearest million yen

2-1. Trend in consolidated net sales
Net sales increased to 77,815 million yen, up 8.3% from FY2022, as a result of improving
orders and the large amount of carried-over construction balance(Millions of yen)

90,00083,90077,81571,834

69,645
874
5,780

809
7,839

18,37018,300

1,553
2,803

44,61913,423

21,85060,00030,000

1,290
4,401

2.0％

1.3％

1.1％

8.3％

10.9％

26.4％

44,88564.0％

64,783

1.5％

3.6％

5.3％

25.5％

28.1％

16.0％

62.5％

66.3％

77.2％

51,6070

FY2021

FY2022

FY2023

FY2024 (forecast)■Residential ■Non-residential ■Renovation ■Others
4

Breakdown2-2. Major completed constructions*In order of prefectural code

ClientBuilding (project)

Nomura Real
Estate Development Co., Ltd.

Proud Ichiban-cho 1-chome

Prefecture

Use

Miyagi

Condominiums/
apartment buildings

Meirikai Medical foundationIMS Fujimi General Hospital
bldg. C

SaitamaMedical, welfare andhousing for the elderly(renovations)

ITOCHU Property Development,
Ltd.

CREVIA Sangenjaya

Tokyo

Condominiums/
apartment buildings

PREMIUM RESIDENCE
Yokosuka Chuo

Kanagawa

Condominiums/
apartment buildings

NIPPON STEEL KOWA REALESTATE CO., LTD.

LOGIFRONT Atsugi

Kanagawa

Logistics warehouses andfactories

TODA CORPORATION

MAKE A GOOD LOGI
Amagasaki

Hyogo

Logistics
warehouses and factories

Brillia Shukugawa
Takatsukacho

Hyogo

Condominiums/
apartment buildings

Alpha States
Matsueekiminami

ShimaneCondominiums/
apartment buildings

San Shin Jyuken ltd.
KEIKYU REALESTATE Co., Ltd.
Taisei-Yuraku Real Estate Co., Ltd.

Tokyo Tatemono Co., Ltd.
NTT Urban Development Corporation

ANABUKI KOSAN INC.

5

2-3. Major completed constructions

Proud Ichiban-cho 1-chome

CREVIA Sangenjaya

Nomura Real Estate Development Co., Ltd.
/ Miyagi

ITOCHU Property Development, Ltd.
/ Tokyo

MAKE A GOOD LOGI Amagasaki

Brillia Shukugawa Takatsukacho

TODA CORPORATION / Hyogo

プレミスト横濱反町

Tokyo Tatemono Co., Ltd.

NTT Urban Development Corporation / Hyogo

6

PREMIUM RESIDENCE Yokosuka Chuo

San Shin Jyuken ltd., KEIKYU REALESTATE Co., Ltd.
Taisei-Yuraku Real Estate Co., Ltd. / Kanagawa

Alpha States Matsueekiminami
ANABUKI KOSAN INC. / Shimane

3. Trend in gross profit and factors affecting
operating profit
Gross profit increased along with net sales rising. Gross profit margin declined by 0.2 points from FY2022 due to sluggish
progress in efforts to adjust pricing to pass the soaring cost of construction materials on to prices, while the ratio turned
upward in the latter half of FY2023 (Q2: 5.8% ⇨ FY2023: 7.3%). Operating profit fell 15.7% from FY2022 to 1,590 million
yen

Trend in gross profit

Factors affecting operating profit(Millions of yen)

(Millions of yen)

,000

10.0%

8.7%

9.0%

7.5%

,000

7.3%

5,384

210
684

161

899

,000

1,176
3.5％

449

11.3％

,000

Operatingmargin

2.6％

8.0%

2.0％

1,887

7.0%

6,051

,000

Operatingmargin4,258 14.9％

3.0％

5,646

6.0%

829

5.0%

466
698

70.3％

8.4％

3,651

Increase in gross profit
+261

12.4％
2.0%
1.0%

0

(559 )

4.0%

64.6％

66.8％

(569 )

1,590

408

14.7％

8.3％3.0%

21.8％

3,597

422

Increase in
SG&A expense(559)

Operating Profit (297)

0.0%

FY2021

FY2022

FY2022

FY2023■Residential ■Non-residential ■Renovation ■Other

Completed
SG&A
OperatingConstruction Real estate
construction
profitbusiness, etc. expense
profitbalanceBreakdown

7

FY2023Operatingprofit4-1. Trend in consolidated order balance
The order balance rose 8.5% from FY2022 to 94,324 million yen, attributed to orders for large
condominium buildings(Millions of yen)

94,324

100,000

86,958

127
3,685

82,70036
5,213

12,883420
5,469

80,00071,453
19
6,662

24,52623,26760,00018,91840,00045,853

0.5％

6.0％

3.9％

6.6％

28.2％

13.7％

65.8％

82.3％

0.0％

9.3％
26.5％
20,0000.1％

0.0％

57,181

64.2％

77,62753,54264.8％

0FY2021

FY2022

FY2023■Residential ■Non-residential ■Renovation ■Other
8

FY2024(Forecast)
Breakdown

28.1％

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

Robust orders for condominiums and apartmentbuildings(Millions of yen)
FY2021

FY2022

FY2023

Commercial facilities

Breakdown

Breakdown

Breakdown

Condominiums andapartment builindings

46,775 65.5%

58,337 66.9%

78,137 82.8%

Logistics warehouses and factories

13,947 19.5%

16,919 19.5%

5,281

5.6%

Commercial facilities

2,634

3.7%

5,979

6.9%

4,015

4.3%

Government buildings and offices

3,241

4.5%

2,415

2.8%

3,443

3.7%

Medical, welfare and housing forthe elderly

1,055

1.5%

1,956

2.3%

3,130

3.3%

Education, culture, and sports

2,657

3.7%

675

0.8%

96

0.1%

Event halls

1,122

1.6%

614

0.7%

78

0.1%

20

0.0%

59

0.1%

141

0.1%

Other

Total

71,453 100.0%

86,958 100.0%

Medical, welfare and housing for the elderly
Governmentbuildings and offices

Breakdown
by type
Condominiums
and apartmentbuildings

94,324 100.0%

Kyushu*Order of renovation is classified by type

Chugoku and Shikoku

By region Robust growth in Chubu region(Millions of yen)
FY2021

FY2023

Logistics
warehouses andfactories

FY2022

FY2023

Breakdown

Breakdown

Breakdown

Kanto

33,069 46.2%

39,315 45.3%

38,194 40.6%

Kinki

18,920 26.5%

28,085 32.3%

18,886 20.0%

Chubu

6,977

9.8%

8,630

9.9%

19,386 20.6%

Tohoku

3,764

5.3%

2,906

3.3%

6,227

6.6%

Chugoku and Shikoku

4,739

6.6%

3,947

4.5%

5,587

5.9%

Kyushu

3,983

5.6%

4,072

4.7%

6,042

6.4%

Total

71,453 100.0%

86,958 100.0%

Tohoku94,324 100.0%

9FY2023

Breakdown
by region

Chubu

Kinki

Kanto

4-3. Major ordered constructions*In order of prefectural code

ClientBuilding (project)

Prefecture

Use
Condominiums/
apartment buildings

Takara Leben Co., Ltd.

Leben Fukushima Otamachi

Warabieki Nishiguchi area
Urban Redevelopment
Project association

Type 1 urban redevelopment project
Saitamain Warabieki Nishiguchi area *1

Condominiums/
apartment buildings

OK Tenpo Hoyu

OK Matsudo Ohashi

Chiba

Commercial facilities

Daiwa House Industry Co., Ltd.
Tokyo Tatemono Co., Ltd.

Kagetsuen-ekimae Project

Kanagawa

Condominiums/
apartment buildings

MITSUBISHI ESTATERESIDENCE CO., LTD.

Okazaki-shi Hane-cho plan in Aichi
Prefecture

Aichi

Condominiums/
apartment buildings

Nippon Life Insurance Company

Nissay Shijo Building *1

Kyoto

Government buildings andoffices

Fukushima

San Shin Jyuken ltd.

KUBOTA Corporation

KUBOTA Sakai B5 and B6 wing

Osaka

Logistics warehouses andfactories(renovation)

ANABUKI KOSAN INC.

Alpha States Iizukaeki

Fukuoka

Condominiums/
apartment buildings*1 accepted as a joint venture group105. Summary of the plan for FY2024
Consolidated
net sales

83,900 million yen (+7.8％ year-on-year)
We expect net sales rise to 83,900 million yen, up 7.8% from FY2023, due to the large amountof carried-over construction balance(Millions of yen)

90,00089,00088,00087,00086,00085,00084,00083,00082,00081,00080,00079,00078,00077,00076,00075,00074,00073,00072,00071,00070,00069,00068,00067,00066,00065,00064,00063,00062,00061,00060,00059,00058,00057,00056,00055,00054,00053,00052,00051,00050,00049,00048,00047,00046,00045,00044,00043,00042,00041,00040,00039,00038,00037,00036,00035,00034,00033,00032,00031,00030,00029,00028,00027,00026,00025,00024,00023,00022,00021,00020,00019,00018,00017,00016,00015,00014,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

Consolidated
operatingprofit83,90071,83477,815

FY2022

FY2023

FY20242,600 million yen (+63.5％ year-on-year)
We expect operating profit to increase 1,009 million yen to 2,600 million yen from FY2023, due toreduction of unprofitable construction orders received since the previous fiscal year
(Millions of yen)

3,000
2,000
1,000

2.0%

2.6%

3.1%

4.0%
Operating profit
2.0%

1,887

1,590

2,600

0

Operating margin
0.0%

FY2022

FY202311

FY2024

6. Consolidated balance sheet
With regard to assets, trade receivables*1 of current assets increased. With regard to liabilities and net
assets, trade payables*2 increased from the previous fiscal year.
*1 Trade receivables consist of notes receivable, accounts receivable from completed construction contracts and contract assets, andelectronically recorded monetary claims*2 Trade payables consist of accounts payable for construction contracts, and electronically recorded obligations – operating Assets +13,482

 Liabilities and net assets +13,482(Millions of yen)

Total assets(Millions of yen)
Total liabilities andnet assets

Total liabilities andnet assets

Total assets

59,107

59,10745,62545,625
Cash and deposits
Trade receivable
Inventories
Current assets(1,410)11,280(780)
9,132

Tangible and intangible
fixed assets

4,122

48,65521,982

39,523

Investments and otherassets2,105

227■Current assets■Tangible and intangible
2,337
3,764
FY2022

fixed assets■Investments and otherassets

21,5366,460

Trade payable
Interest-bearing debt

8,555
1,486

Advances received on
construction contracts inprogress(822)

Current liabilities

8,866Interest-bearing debt
Deferred tax liabilities
Non-current liabilities

2,984
594
3,601

Retained earinings
Net assets

512
1,014

■Current liabilities■Non-current liabilities■Net assets

30,848

5,707

22,551

3,991
FY2023

FY202212Equity ratio

FY202247.2%

FY202338.2%

FY2023

7. Consolidated cash flows
The balance of cash and cash equivalents declined by 1,210 million yen to 8,775 million yen at theend of March 2024, due to an increase in trade receivables *1 and purchase of shares of subsidiaries.
*1 Trade receivables consist of notes receivable, accounts receivable from completed construction contracts and contract assets, andelectronically recorded monetary claims(Millions of yen)

9,986

8,775

(1,919)Balance of cash andcash equivalents
at the beginning ofProfit before
the fiscal year

income taxes
Trade receivables
Accounts payables
Advances received
on construction
contracts in progress

Income taxes paid
FY2022

1,904(11,165)
8,554
(822)
(389)

Cash flows from operating
activities

3,701(2,992)
Tangible andintangible fixed
assets(720)

Investment
securities

395

Purchase ofshares of
subsidiaries(2,770)Cash flows from investing
activities

13

Balance of cash andcash equivalents
at the end of the
fiscal year

Borrowings
Dividends paid

4,471
(716)

Cash flows from financing
activities

FY2023

Compliance with
the Prime Market’s
continued listing criteria

8. Compliance with the Prime Market’s
continued listing criteria
We fulfilled the Prime Market’s continued listing criteria as of end March 2024, one year before we planned
As of transitionreference date*1

Compliance plan*2

FY2021 *3

FY2022 *3

Market capitalization of
tradable shares

6.48 billion yen

7.40 billion yen

8.63 billion yen

Trading value

9 million yen
per day

20 million yen
per day

FY2023*4

Criteria

7.71 billion yen

10.74 billion yen

10 billion yen
and more

20 million yen
per day

70 million yen
per day

50 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％

58.7%

ROE

8.7%

―

9.1%

6.3%

5.6%

ROIC

7.8%

―

9.1%

6.2%

4.1%

Consolidated sales

56.4 billion yen―

69.6 billion yen

71.8 billion yen

77.8 billion yen

Consolidated current net profit(Consolidated operating profit)

1.6 billion yen(2.21 billion yen)―

1.81 billion yen(2.70 billion yen)

1.32 billion yen(1.88 billion yen)

1.25 billion yen(1.59 billion yen)

*1 From “Primary Decision Results Concerning Compliance with New Market Section Continued Listing Criteria.”*2 From “Plan for Achieving Compliance with New Market Section Continued Listing Criteria,” as disclosed on December 15, 2021. Market capitalization of tradable share as of November 30, 2021; trading value has been calculated as the average value fromJanuary 2021 to November 2021
*3 Market capitalization of tradable shares 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 thelast day of the business year; trading value has been calculated as the average value from January through December for each year
*4 Figures of Market capitalization of tradable shares and Trading value are based on compliance with the continued listing requirements (distribution requirements) of the Tokyo Stock Exchange dated May 9, 2024, and January 11, 2024, respectively
The number of tradable shares as of March 31, 2021, was used to calculate *1 and *2.

15

Progress of the
New Medium- and Long-TermBusiness Plan

9. New Medium- and Long-Term Business PlanThree Challenges and 10 Key Policies“Road to 100th anniversary: Embracing new challenges”
We will realize significant growth as a Prime Market listed company
through fundamental reforms pursued by embracing

three challenges by our 100th anniversary .
Increasing the tenacity of ourconstruction business

Enhancing our highly
profitable portfolio

Bringing the foundations of ourbusiness into the next generation

Developing even moreadvanced condominium
construction techniques by
pursuing standardization

Re-entering the civilengineering market

Building a human resource basethat lets a diverse workforce dotheir jobs in an energetic manner

Pursuing sole-source orders
in general construction area by
securing differentiating domains

Entering the real estatedevelopment andreconditioning market at scale

Focusing on building
reconditioning, an area ofgrowing demand

Creating new businesses tosolve social issues

17

Reforming organizational structures
so that we can more readily
accumulate and utilize expertise
Increasing productivity and passing
on skills to younger workers through adigital transformation (DX)

Developing more sophisticatedworkflows through operational
reforms

10-1. Launch of DX system
We developed our proprietary systems, “DXS” (Daisue DX Systems), and started operating
DXS company-wide from April 1, 2024. Using/utilizing data accumulated by DXS and DXS
itself, we are accelerating our DX process and reforming our business
Daisue’s proprietary DX
systems

Instant roughestimation system

Quality, scheduling,
cost management andforecasting system

Monitoring results
systemVE/CD search system using
up-to-date pricing data

Integrated construction management system
Implement and promote construction BIM

Construction defect forecasting system
Optimal personnel deployment support
systemSales
process
innovation

Construction
process
innovation

Management
process
innovation

DaisueIncreasing sole-source
orders
Improving profitability
ratio at orders

Improving construction
profitability by
sharing knowledge ofexperienced site managers

Preventing loss of profit
caused by human error
Maximizing profit throughadvanced order management

Customers

Innovation in projectplanning velocity

Increasing building value

Shareholders
Markets

Quick and precise timely
disclosure
Enhancing data for high-value-added space such as super-high-rise buildings and super-cold storage
warehouses as well as new businesses1810-2. Launch of DX system
Concluded partnership MOU with FPT Software JapanOn April 22, 2024, aiming to implement
DX in the construction sector, Daisue
concluded a global partnership MOU
with FPT Software Japan, a company
that co-developed our DX system.
By continually improving its DX systemand boosting value, Daisue expands
collaboration with FPT Software Japanand both will accelerate innovation in theconstruction sector.

19

11-1. Policy on shareholder returns
To stably return profit to shareholders, we shifted our indicator of policy on shareholder returnfrom dividend payout ratio to total payout ratio and DOE

Policy on shareholder returns under the new Medium- and LongTerm Business Plan

Total Payout Ratio of at least 50% and
DOE of at least 4.0%•

We will maintain active shareholder returns by maintaining a total payout ratio of at least 50% for
the time being- We plan to revise our policy in the event of unexpected changes in the future businessenvironment or the Company’s performance.

•

To facilitate stable returns of profit to shareholders, we will add a DOE of at least 4.0%
- We’re adopting DOE as a new indicator so that we can return profits to shareholders in astable manner, even if profits were to fall below anticipated levels.

FY2024 dividend forecast: annual total JPY89 (1st half JPY44.5, 2nd half JPY44.5)
FY2023 dividend: annual total JPY 70 (1st half JPY35, 2nd half JPY35)
20

11-2. Capital allocation
We will actively make investments for growth and continuously return profits to shareholders
Capital Allocation(FY2024 to FY2030)

Shareholder returns
Shareholder
returns
8.0 billion yen*1

Strategic investments

Operating cash flow
21.0 billion yen

M&A investments
Strategic
investments
20.0 billion yen

Financing cashflow
7.0 billion yen
Cash generation

 We will work actively to return profits to shareholders in astable manner by adopting a DOE of at least 4.0% and a total
payout ratio of at least 50% for the time being

 We anticipate making investments on a scale of about 12.0
billion yen in real estate company M&As as we look to make amajor expansion into the real estate development andreconditioning business and in design company M&As tostrengthen our design capabilities

Growth investments

Cash allocation

 We anticipate making investments on a scale of about 8.0 billion
yen to advance into new business domains, fund zero-energy
technologies, and fund digital transformation (DX) andsystems to revamp our DX technologies and core systems*1: Estimate assumes maintenance of 50% total payout ratio.

2112. Initiatives for SDGs
Disclosure based on TCFD
recommendations

Materialities (key issues) to beaddressed

We regard climate change as a serious issue,
and we expressed support for TCFD in Nov
2023 and make analyses based on its
recommendations. Taking actions to achieve
the goal, we attempt to realize a sustainable
society and improve our corporate value

Strive to steadily resolve these issues
through our business activities by pursuing
initiatives and disclosing their results■Indicators and goals
We set greenhouse gas (GHG) emissions as an indicator and set a goal to reduce
Scope 1 & 2 emissions by 31.0% from that of FY2021 by FY2030. CO 2 emissions
in FY2021 were 4,221.9 t-CO2 and 884.2 t-CO2, under the category of Scope 1(direct emissions), Scope 2 (consumption of purchased electricity, etc.)
respectively for a total of 5,106.1 t-CO2. To achieve the target, we make our effort
on energy saving as a major initiative. Emphasizing CO2 emissions in the supply
chain, we are working on reckoning. As we calculated that CO2 emissions in the
Scope 3 category amounted to 718,705.2t in FY2021, we are ramping up our
initiatives, for example to study the development of low-carbon technologies andproducts (i.e., low-carbon concrete) in order to reduce CO2 emissions in the
supply chain.
Indicator

GHG
emission

Scope

FY2021

Goal

Scope 1, 2

5,106.1 t‐CO₂

Reduce by 31.0% fromFY2021 by FY2030

Scope ３

718,705.2 t‐CO₂

⁻22

13. EXPO 2025
Daisue became the general contractor of the Czech pavilion at EXPO 2025
The glorious pavilion with a spiral cloister will be made of modern wood panelswith traditional art glass

Groundbreaking ceremony on May 15, 2024

23

Perspective drawing of Czech pavilion

A company that creates spacesrich in security and joy[Inquiries]
Corporate Planning Department
DAISUE CONSTRUCTION CO., LTD.
Tel:
+81-6-6121-7127
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 the realization or implementation of
future planned performance or policies.