Financial Results Material for
the Second Quarter of the
Period Ending March 2024
November 9, 2023

Contents

Consolidated Performance Summary
Second Quarter Financial Closing
Highlights
Full-Year Earnings Forecast
Progress Status of the Mid-Term
Management Plan
Our Sustainability Initiatives
Reference: DATA FILE

2

Second Quarter Financial Results
for the Period Ending March 2024

Consolidated
Performance
Summary3

Consolidated Performance Summary
Overview of consolidated management indicators, etc. (operating results)(Millions of yen)
2nd Quarter of
period ended
March 2023

2nd Quarter of
period ending
March 2024

Increase(Decrease)

Change rate

Net sales of uncompleted construction
contracts at beginning of period

163,782

184,158

20,375

12.4%

Net sales of construction contract orders
received

124,966

128,523

3,557

2.8%

Net sales of completed construction
contracts

82,69091,306

8,615

10.4%

Gross profit on completed construction
contracts

10,364

10,483

119

1.1%

12.5%

11.5%

-1.1p

–

3,650
4.4%
4,330
5.2%
3,045
3.7%

3,031
3.3%
3,595
3.9%
2,411
2.6%

(618)
-1.1p
(735)
-1.3p
(633)
-1.0p

-16.9%–-17.0%–-20.8%–

Gross profit margin of completed
construction contracts (%)
Operating profit
Operating profit margin (%)
Ordinary profit
Ordinary profit margin (%)
Net profit attributable to owners of parent
Net profit margin (%)

Business environment and the Company’s performance summary Net sales of construction contract orders received increased thanks to orders secured for large-scale construction projects, mainly forindustrial facilities and Osaka Kansai Expo-related facilities.
 The increase in uncompleted construction contracts carried over from the previous period, mainly large-scale general construction projects,
pushed up the net sales of completed construction contracts. On the other hand, gross profit margin of completed construction contracts
declined due to deteriorating profitability of certain construction projects.
 Despite the year-on-year increase in gross profit on completed construction contracts, operating profit decreased. The main reason for thedecrease is an increase in SG&A expenses, specifically, expenses for “DX investments, including investment for raising efficiency in field
operation and office work,” “R&D and depreciation for new businesses and construction efficiency improvement,” and an “increased
number of hires and business activities associated with the recent business expansion.”© 2023 DAI-DAN Co.,Ltd.

4

Consolidated Performance Summary
Breakdown of increase/decrease in consolidated operating profit(Millions of yen)

1,080
Increase Decrease

3,650

(961)
3,031

(738)

Results of 2nd Quarter of
period ended March 2023

Increase in net sales ofcompleted construction
contracts

Decrease in gross profit marginof completed construction
contracts

Increase in SG&A expenses

Results of 2nd Quarter of
period ending March 2024

 Net sales of completed construction contracts increased significantly due to steady progress with the large amount of construction work
carried over from the previous period.
 Gross profit margin of completed construction contracts declined due to deteriorating profitability in certain construction projects.
 SG&A expenses increased from the previous period, as described on the previous page.

© 2023 DAI-DAN Co.,Ltd.

5

Consolidated Performance Summary
Trends in consolidated net sales by construction type(Millions of yen)

Net sales(uncompleted)

Net sales(completed)

Orders received

2nd Quarter of
period ended
March 2023

2nd Quarter of
period ending
March 2024

Increase(Decrease)

Change rate

Electrical installations

18,64723,735

5,088

27.3%

Air conditioning andplumbing installations

106,318

104,787(1,531)

-1.4%

Total

124,966

128,523

3,557

2.8%

Electrical installations

13,97014,269299

2.1%

Air conditioning andplumbing installations

68,72077,036

8,316

12.1%

Total

82,69091,306

8,615

10.4%

Electrical installations

28,14028,791651

2.3%

Air conditioning andplumbing installations

177,917

192,583

14,666

8.2%

Total

206,057

221,375

15,3177.4%

 Orders received increased thanks to orders for large-scale construction work for logistics facilities, laboratories, factories, etc. in electricalinstallations.
 Net sales (completed) increased thanks to steady progress in large-scale construction projects including industrial facilities and airports aswell as heat source construction work for overseas resort facilities.
 Net sales (uncompleted) increased, supported by construction contracts carried over from the previous period and orders for large-scale
projects such as medical facilities, redevelopment projects, and industrial facilities.
© 2023 DAI-DAN Co.,Ltd.

6

Consolidated Performance Summary
Overview of consolidated management indicators, etc. (financial position)(Millions of yen)
Period ended
March 2023

2nd Quarter of
period ending
March 2024

Increase(Decrease)

Major factors behind increase/decrease
and annotation items

Change rate

Net assets

82,42485,082

2,657

3.2%

Retained earnings increased.

Total assets

148,544

146,498(2,045)-1.4%

Payment of liabilities recorded in the previous
period made progress.

Book value per share (BPS)

1,920.67*yen

1,979.89*yen

59.23 yen

3.1%

Price book-value ratio (PBR)

0.62 times

0.75 times––*(Reference) Closing stock price as of Mar. 31, 2023:
1,184 yen
Closing stock price as of Sept. 30, 2023:
1,485 yen
* The value represents the stock price after thestock split executed as of October 1, 2023.
For details, see page 18.

55.4%

57.9%

2.5p

Equity capital ratio– –Overview of consolidated management indicators, etc. (cash flows)(Millions of yen)
2nd Quarter of
period ended
March 2023

2nd Quarter of
period ending
March 2024

Increase(Decrease)

Major factors behind increase/decrease
and annotation items

Change rate

Cash flows from operating activities

8,509(4,155)(12,664)–

Advance payment of construction costs

Cash flows from investing activities(686)(1,695)(1,008)–Reconstruction of Niigata Branch andconstruction of offsite facilities

Cash flows from financing activities(1,494)(1,540)(46)–

Dividend payment

Cash and cash equivalents at
beginning of period

16,03725,3489,310

58.1% –

Increase/decrease in cash and cash
equivalents

6,621(7,185)(13,807)– –Cash and cash equivalents at end ofquarter

22,65918,162(4,496)-19.8% –© 2023 DAI-DAN Co.,Ltd.

7

Consolidated Performance Summary
Breakdown of cash flows (Trends in period-end balance of cash and cash equivalents)(Millions of yen)

Increase Decrease(4,155)
Operating CF(1,695)Investing CF
Period-end
cash and cash
equivalents
25,348Period ended
March 2023

(1,540)Financing CF

205
Translationdifferences
Period-end
cash and cash
equivalents
18,162

2nd Quarter of
period ending
March 2024

 Regarding the breakdown of cash flows, net cash decreased in all three categories due to different factors: Operating CF (advancepayment of construction costs), Investing CF (Reconstruction of Niigata Branch and construction of offsite facilities), and Financing CF(dividend payment).
 We have signed commitment credit line agreements with three banks for efficient working capital financing.
© 2023 DAI-DAN Co.,Ltd.

8

Second Quarter Financial Results
for the Period Ending March 2024

Second Quarter
Financial Closing
Highlights
9Status of construction orders received
Renovations, direct orders, and public works(Millions of yen)
Period ending
March 2024

Period ended March 2023
First half year

Second half year

Full year

First half year

Year-on-year change
Increase(Decrease)

Change rate

49,121

34,56983,691

41,737(7,384)-15.0%

Ratio of renovations (%)

39.3%

42.5%

40.6%

32.5%

-6.8p

–

Mid-to-large renovations

23,57815,44039,01818,626(4,952)-21.0%

Small-scale renovations

25,543

19,12944,673

23,111(2,431)-9.5%

General construction works

75,84446,801

122,646

86,785

10,941

14.4%

Total orders received

124,966

81,371

206,337

128,523

3,557

2.8%

Of which, direct orders

55,333

34,95990,29349,358(5,975)-10.8%

44.3%

43.0%

43.8%

38.4%

-5.9p

–

12,381

7,449

19,83018,097

5,716

46.2%

9.9%

9.2%

9.6%

14.1%

4.2p

–

Renovations

Ratio of direct orders (%)
Of which, public works
Ratio of public works (%)

 Renovations decreased as we focused on receiving large-scale general construction project orders to increase order receipts.
 General construction work increased thanks to orders received mainly for industrial and amusement facilities.
 Direct orders showed a reactionary drop following the overseas large-scale projects received in the previous period.
 Public work grew substantially thanks to large-scale project orders received.

© 2023 DAI-DAN Co.,Ltd.

10

Status of construction orders received
Industrial facilities(Millions of yen)
Period ending
March 2024

Period ended March 2023
First half year
Total industrial facilities(Share of total orders: %)Total orders received

Second half year

Full year

First half year

Year-on-year change
Increase(Decrease)

Change rate

53,74437,436

91,181

65,76412,019

22.4%

43.0%

46.0%

44.2%

51.2%

8.2p

–

124,966

81,371

206,337

128,523

3,557

2.8%

* Factories, labs, data centers, and logistics facilities are classified as “industrial facilities.”

Trends in industrial facility orders received
Industrial facilities

Of which, small-scale work

Industrial facilities' share of total orders(Millions of yen)

70,00060%
6,218

60,000
6,823

50,00040,0005,686

30,0006,238

20,00027,225

10,0000

2Q ofperiod ended
March 2020

© 2023 DAI-DAN Co.,Ltd.

21,196
2Q ofperiod ended
March 2021

40%
59,54746,92130%
20%

31,404

2Q ofperiod ended
March 2022

50%

10%
2Q of
period ended
March 2023

2Q ofperiod ending
March 2024

 In the first half of the year, orders received
for industrial facility construction increased
significantly, mainly from pharmaceuticalfactories. Orders were well over theprevious period’s record high andexceeded 50% of total orders received forthe first time.
 As orders for large-scale semiconductor
plants and automotive battery plants will bereceived in the second half of the year,
orders for industrial facility construction
work are expected to continue to grow.

0%11

Status of construction orders received
Overseas operations
 Singapore (Branch and DAI-DAN INTERNATIONAL ASIA PTE. LTD.), Thailand (DAI-DAN (THAILAND) CO., LTD.), Vietnam (DAI-DAN(VIETNAM) CO., LTD. (non-consolidated)), and Taiwan (DAI-DAN Taiwan Co., Ltd. (non-consolidated)) are the bases of our overseas
operations.
 In February 2023, we acquired 40% of shares of Presico Engineering Pte. Ltd., a Singaporean company, and made it an equity method
applied affiliate.
(Millions of yen)
Period ending
March 2024

Period ended March 2023
First half year
Total overseas orders received(consolidated)(Share of total orders: %)Total orders received

Second half year

Full year

20,3907,149(6,337)-47.0%

10.8%

8.5%

9.9%

5.6%

-5.2p

–

124,966

81,371

206,337

128,523

3,557

2.8%

(Consolidated)

15,000768
10,0000-5,00012,719

338
496
3,270

4,706

2Q of
period ended
March 2020

2Q ofperiod ended
March 2021

© 2023 DAI-DAN Co.,Ltd.

Change rate

6,904

DAI-DAN (THAILAND)SINGAPORE (BRANCH & DAI-DAN INTERNATIONAL ASIA)
Overseas share of total orders

5,000

Increase(Decrease)

13,486

Trends in overseas construction orders received(Millions of yen)First half year

Year-on-year change

6,833

986
6,163

-384
2Q of
period ended
March 2022

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

 Singapore saw a decrease in construction
orders received as several large projectorders that we had expected to receive
during the current period were postponed
12.5%
to the third quarter.
 Thailand saw an increase in construction
orders received due to increased orders for7.5%
factory projects in comparison with last
year.
2.5%

-2.5%

12

Status of completed construction contracts(Millions of yen)
Second quarter of period
ended March 2023

Second quarter of period
ending March 2024

Monetary amountComposition ratio

Total net sales of completed
construction contracts

82,690100.0%

91,306100.0%

8,615

10.4%

Of which; (Renovations)

36,092

43.6%

31,69834.7%(4,393)-12.2%

32,305
7,794

39.1%
9.4%

42,983
9,040

47.1%
9.9%

10,678
1,245

33.1%
16.0%

(Industrial facilities)(Overseas operations)Monetary amountYear-on-year change

Composition ratio

Monetary amount

Change rate

* The figures in the table include a certain amount of overlap, as calculation is done by construction type: renovations, industrial facilities, and overseas operations.

Consolidated net sales of completed construction contracts(Millions of yen)

100,000

80,00060,00040,00020,0000
2Q ofperiod ended
March 2020
Renovations© 2023 DAI-DAN Co.,Ltd.

2Q ofperiod ended
March 2021

Industrial facilities

2Q ofperiod ended
March 2022

Overseas operations

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

 Although an increase is posted forsmall-scale projects, overallrenovations decreased in thereactionary drop following our focused
efforts in receiving general construction
projects, aiming at overall order receipt
expansion.
 Industrial facility construction work andoverseas operations increased due
primarily to progress in large-scaleconstruction projects for factories anddata centers.
 In addition to the above, progress with
airport and redevelopment projects
pushed up net sales of completed
construction contracts.

Total net sales of completed construction contracts

13

Status of uncompleted construction contracts(Millions of yen)
Second quarter of period
ended March 2023
Monetary amountSecond quarter of period
ending March 2024

Composition ratio

Monetary amountYear-on-year change

Composition ratio

Monetary amount

Change rate

Net sales of uncompleted
construction contracts at
beginning of period

163,782–

184,158–

20,375

12.4%

Net sales of construction
contract orders received

124,966–

128,523

–

3,557

2.8%

Net sales of completed
construction contracts

82,690–91,306

–

8,615

10.4%

Net sales of uncompleted
construction contracts

206,057

100.0%

221,375

100.0%

15,3177.4%

Of which; (Renovations)

49,92524.2%

46,341

20.9%(3,584)-7.2%(Industrial facilities)

66,69932.4%

83,34837.7%

16,64825.0%(Overseas operations)

18,531

9.0%

14,105

6.4%(4,425)-23.9%Of these, contracts to be completed
in the second half of the year

80,256–86,003

–

5,746

7.2%

Of these, contracts to be completed
in the next period onward

125,801–

135,372

–

9,571

7.6%

* The figures in the table include a certain amount of overlap, as calculation is done by construction type: renovations, industrial facilities, and overseas operations.

Consolidated net sales of uncompleted construction
contracts(Millions of yen)
250,000
200,000
150,000
100,000
50,0000Renovations

2Q ofperiod ended
March 2020

2Q ofperiod ended
March 2021

Industrial facilities

Overseas operations© 2023 DAI-DAN Co.,Ltd.

2Q ofperiod ended
March 2022

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

Total net sales of uncompleted construction contracts

 As for uncompleted construction contracts for thecurrent period, net sales of construction contract
orders received exceeded net sales of completed
construction contracts, posting year-on-year growth.
(The highest level in the last five years)
 A sufficient volume of unfinished construction projects
has been secured, especially for large-scale projects
such as medical facilities and industrial facilities, andthese will contribute to the future value of work done.
 There has been a trend over the past year wherematerial equipment and labor costs increased due to
inflation and were passed onto contracted amounts.
 In correspondence with the above-mentioned pricetransfers onto contracted amounts, we expect to seea year-on-year increase in profits for contracts
completed in the second half of the year.

14Quarterly operating results(Millions of yen)

Net sales of
construction
contract orders
received
Net sales ofcompleted
construction
contracts

Operating profit

Period ended March
2023

Period ending March
2024

Increase(Decrease)

April–June

66,71267,005292

0.4%

July–September

58,25361,518

3,265

5.6%

April–September

124,966

128,523

3,557

2.8%

April–June

35,342

40,731

5,389

15.2%

July–September

47,34850,574

3,226

6.8%

April–September

82,69091,306

8,615

10.4%

April–June

818

691

(126)

-15.5%

July–September

2,832

2,340

(492)

-17.4%

April–September

3,650

3,031

(618)

-16.9%

Change rate For the period from April to June, operating results were as favorable as the previous period due to orders secured for large-scaleconstruction projects, mainly for industrial and medical facilities. Although uncompleted construction contracts carried over from theprevious period made steady progress mainly in large-scale general construction projects, the increase in SG&A expenses resulted in adecrease in operating profit in spite of an increase in net sales of completed construction contracts.
 For the period from July to September, orders received for large-scale construction projects such as industrial facilities and Osaka Kansai
Expo-related facilities caused net sales of construction contract orders received to increase from the previous period. Consistent progressin uncompleted construction contracts pushed up net sales of completed construction contracts but pushed down operating profit
adversely affected by the deteriorating profitability of certain construction projects and increased SG&A expenses (the increase in SG&A
expenses is as described on page 4).
© 2023 DAI-DAN Co.,Ltd.

15

Second Quarter Financial Results
for the Period Ending March 2024

Full-Year Earnings
Forecast for the
Period Ending
March 202416

Full-year earnings forecast
Consolidated full-year earnings forecast(Millions of yen)
Period ended March 2023
First half year

Second half year

Period ending March 2024
Full year

First half year

Second half year
(Forecast)Year-on-year change, full year
Full year(Forecast)

Increase(Decrease)

Change rate

Net sales of construction
contract orders received

124,966

81,371

206,337

128,523

111,477

240,000

33,663

16.3%

Net sales of completed
construction contracts

82,690103,271

185,961

91,306108,694

200,000

14,0397.5%

Gross profit on completed
construction contracts

10,364

12,26022,624

10,483

13,917

24,400

1,776

7.9%

12.5%

11.9%

12.2%

11.5%

12.8%

12.2%

0.0p

–

3,650

4,778

8,428

3,031

5,469

8,500

72

0.9%

4.4%

4.6%

4.5%

3.3%

5.0%

4.3%

-0.3p

–

4,330

4,958

9,288

3,595

5,305

8,900

(388)

-4.2%

5.2%

4.8%

5.0%

3.9%

4.9%

4.5%

-0.5p

–

3,045

3,581

6,626

2,411

4,089

6,500

(126)

-1.9%

3.7%

3.5%

3.6%

2.6%

3.8%

3.3%

-0.3p

–

–

–

8.3%

–

–

7.7%

-0.6p

–

Gross profit margin ofcompleted construction
contracts (%)
Operating profit
Operating profit margin (%)
Ordinary profit
Ordinary profit margin (%)
Net profit attributable toowners of parent
Net profit margin (%)
Return on equity (ROE)

Preconditions for earnings forecast As shown on page 4, we have upwardly revised our full-year forecast for net sales of construction contract orders received, mainly due to
steady order receipt in the first half of the year along with orders for large semiconductor and automotive battery plants to be received in
the second half of the year. (210,000 million yen  240,000 million yen)
 In terms of earnings, net sales increased but profits decreased year-on-year in the second quarter of the current period. However, as
shown on page 14, we expect an increase in profits with the increase in construction projects to be completed in the current period, andthe full-year earnings forecast remains unchanged from our most recent announcement.
© 2023 DAI-DAN Co.,Ltd.

17

Stock split
Stock split
The Company conducted a stock split as of October 1, 2023, based on a resolution at the Board of Directors meeting
held on August 4, 2023.
1. Stock split(1) Purpose of the stock split
The purpose of the stock split is to create a more investment-friendly environment, improve market liquidity, andexpand the investor base by reducing the price of share-trading units of the Company’s stock.
(2) Outline of the stock split[1] Split method
The record date of the stock split was Saturday, September 30, 2023 (the determination of shareholders listed on
the shareholder register was effectively made on Friday, September 29, 2023, because September 30, 2023 wasa non-business day). Each share of the Company’s common stock held by shareholders listed on the final
shareholder register as of the record date was split into 2 shares.
[2] Increase in the number of shares resulting from the stock split
Total number of shares issued before the stock split

22,981,901 shares

Number of shares to be increased by the stock split

22,981,901 shares

Total number of shares issued after the stock split

45,963,802 shares

Total number of authorized shares after the stock split

80,000,000 shares[3] Schedule for the stock split
Date of public notice of record date: September 14, 2023 (Thursday);Record date: September 30, 2023 (Saturday); and Effective date: October 1, 2023 (Sunday)© 2023 DAI-DAN Co.,Ltd.

18

Shareholder return
Revision of dividend forecast
 To further enhance returns to our shareholders who provide us with continued support, we plan to increase the year-end dividend pershare for the period ending March 31, 2024 by 5 yen from 55 yen per share before the stock split to 60 yen per share before the stock split(30 yen after the stock split), as announced on August 4, 2023.
Full-year dividend
End of second
quarter

End of period

Total

Total dividend

Dividend ratio

Dividend on
equity ratio(Total sum)(Consolidated)(Consolidated)

Yen SenYen SenYen SenMillion yen%%

Period ended March 2022

45.00

45.00

90.00

1,935

33.3%

2.5%

Period ended March 2023

45.00

55.00

100.00

2,150

32.3%

2.7%

Period ending March 2024 (Forecast)(On the pre-stock split basis)

55.00

30.00
(60.00)–(115.00)

–

37.9%

–

Shareholder return policy
 We consider returning profits to our shareholders through profit distribution as the most important management issue and strive to build asound financial structure.
 Aiming to further promote profit returns to shareholders, we have set a new dividend policy of a dividend payout ratio of 35% or more
(previously 30%) for the period ending March 2024 and onward.

Purchase of treasury shares We will consider it as appropriate aiming for returning profits to our shareholders and improving capital efficiency.
© 2023 DAI-DAN Co.,Ltd.

19

Second Quarter Financial Results
for the Period Ending March 2024

Progress Status of
Mid-Term
Management Plan
“Preparation Stage” FY2021–2023
20

Strategies and measures for the Mid-Term Management Plan
“Preparation Stage”
 A “Preparation Stage” to improve and strengthen our domestic and overseas foundations toward the Long-term Vision 2030.
 Take on the challenges of entering new businesses and establish a group structure to expand consolidated sales.
 Aiming to become a “company that creates space value,” and deliver value to a wide range of customers.

Businessstrategies
Expand corebusinesses

Reinforce overseas
business

Strategy of“Preparation Stage”
FY2021–2023•

Engineers are appropriately assigned to electronic
device factories, data centers, and other largesized industrial facilities.

• Strengthen businesses ofrecurring revenue model•

Customers are retained through active
maintenance order acquisition activities incooperation with subsidiaries.

• Develop a foundation to control
overseas operations•

Domestic headquarters are supporting sales,
technical proposals, and quality control for eachproject.

•

Amid the Covid-19 pandemic, remote sales
activities have been strengthened in Vietnam,
where we started operation in fiscal 2020.

• Increase industrial installations• Develop new bases

Strengthen
technologicalcapabilities• Strengthen on-site capabilities• Expand ZEB＆IoT business

Find newbusinesses• Contribute to commercialization ofregenerative medicine• Promote business that reduces
environmental load

© 2023 DAI-DAN Co.,Ltd.

Implementation status of
measures

Details are provided in“Our Sustainability Initiatives.”21

Numerical targets for the Mid-Term Management Plan
“Preparation Stage”
Item

Period ended March 2023

Preparation Stage

Results

Target for period ending
March 2024

200 billion yen

Period ending March
2024
Forecast

Consolidated net
sales

185.9 billion yen

Consolidated
operating profit

8.4 billion yen

10 billion yen

8.5 billion yen

ROE

8.3%

8% or more

7.7%

Dividend payout
ratio

32.3%

30% or more

35% or more

Investment plan

DX promotion (construction sites,
work style reform)
Strengthening of the corporategroup
New businesses, R&D, etc.

20 billion yen* Cumulative total for three
periods

Increase in the ratio of sales
at consolidated subsidiaries

200 billion yen

Realizing business management with emphasis on cost of capital and stock prices: We aim to achieve top-line growth and earn revenue that exceeds our cost of capital while maintaining financial
soundness.
 We plan to announce a new Mid-Term Management Plan starting from April 2024.
© 2023 DAI-DAN Co.,Ltd.

22

Mid-Term Management Plan progress<Orders received, Net sales, Operating profit> Promote measures to achieve targets in the Mid-Term Management Plan “Preparation Stage.” Strengthening our capability to respond to construction projects that are growing in size andincreasing orders in our area of focus, such as industrial facilities and overseas projects, we expect
to achieve our sales target of 200 billion yen for the final fiscal year ending March 31, 2024.
 Orders received are expected to be well above the target, from 210 billion yen to 240 billion yen.
 Although stable profits will be secured, operating profit is expected to stand at 8.5 billion yen, thesame level as last year, due to increasing prices of materials and equipment, promotion of work
style reform, and other factors.
Increase in net sales by 26% compared to the period before the Mid-Term Management Plan
Earnings forecast for the Mid-Term Management Plan
<Mid-Term Management Plan period>(Millions of yen)

(Millions of yen)

200,000

176,526
157,712

183,668
162,929(240,000 )
15,000(200,000)
206,337
185,961
12,50010,000150,000

8,754
7,584

100,000(8,500 )

8,428

5,000

50,0002,500

00Period ended
March 2021

Period ended
March 2022

Orders received© 2023 DAI-DAN Co.,Ltd.

7,500

Operating profit

Orders received / Net sales

250,000

Period ended
March 2023

Net sales

Period ending
March 2024

Operating profit
23

Important measures for the Mid-Term Management Plan
<Expansion of industrial facility construction> There has been a remarkable increase in orders received for electronic device factories due to increases in investment insemiconductor-related sectors from companies supported by government subsidies, and in orders received for data
centers due to the advancement of DX and AI in society.
 In addition, orders for large automotive battery plants are also expected amid the shift to EVs.
 Industrial facility-related orders have increased to 50% of total orders received due to increased capital investment,
contributing to growth in earnings.
 The Engineering Division, which specializes in industrial facilities, has been reinforced as a measure to strengthen designand construction requiring sophisticated technology.
Orders received are expected to increase by 1.8 times compared to the period before the Mid-Term Management Plan.
(Millions of yen)

Trends in orders received for industrial facilities<Mid-Term Management Plan period>

140,000(120,000)

Orders received

120,000

91,181

100,000
80,00065,6492Q results
65,764

74,63360,00040,00020,0000Industrial facility orders ratio

Factory-related© 2023 DAI-DAN Co.,Ltd.

Period ended
March 2021

Period ended
March 2022

37.2%

40.6%

Period ended
March 2023

Data centers, logistics facilities, and laboratories

44.2%

Period ending
March 2024
50.0%

Small-scale construction work24

Important measures for the Mid-Term Management Plan
<Strengthening of overseas operations> Our business operations are centered in Singapore and Thailand. By establishing local subsidiaries inVietnam in October 2020 and Taiwan in April 2022, our overseas (Southeast Asia) business is being
expanded.
 We acquired 40% of shares of Presico Engineering Pte. Ltd., which operates an equipment installation
business mainly in Singapore and now contributes to profits as an equity-method affiliate.
 During the Mid-Term Management Plan, orders received and net sales have been growing strongly in
Singapore and Thailand.
Orders received are expected to increase by 2.8 times compared to the period before the Mid-Term Management Plan.
Trends in overseas operations<Mid-Term Management Plan period>

Orders received / Net sales of completed
construction contracts(Millions of yen)

25,00020,390(18,000 )17,233 (17,000 )

20,00015,00010,000

9,738

9,040
7,149

6,423

5,000
0
Period ended
March 2021
Orders received© 2023 DAI-DAN Co.,Ltd.

2Q results

11,386
10,414

Period ended
March 2022

Period ended
March 2023

Period ending
March 2024

Net sales of completed construction contracts
25

Second Quarter Financial Results
for the Period Ending March 2024

Our Sustainability
Initiatives

26

Progress of materiality
With the aim of creating CSV businesses that generate new businesses from social issues, wereport on items to be promoted in the global environment and life science fields, which areclosely related to our technologies.
Our materiality items

Concrete measures

Contribute to a decarbonized society

Increase in ZEB-related
construction works

Keep up with changes in businessenvironment through DX

On-site adoption of ICT-based
technology

Realize a high-quality medical
environment
Achieve innovation and improve
productivity through research andfostering of human resources

Initiatives in the field of
regenerative medicine
Increase in intellectual property
ownership

Health and safety conscious work
environment that makes employees feel
their work is rewarding

Improvement in employee
satisfaction

Partnership with subcontractors andsuppliers

Improvement in Meister
retention rate

© 2023 DAI-DAN Co.,Ltd.

SDGs

27

Contribution to a decarbonized society
 Promoting decarbonization by
converting own buildings to ZEB• Numerous awards received for achieving both
decarbonization and an environment that improves work
engagement
Gained social recognition as a leading ZEB

Number of ZEB buildings owned: 5(forecast)Niigata Branch nearly ZEB: To be completed
during the current period

Number of ZEB buildings planned: 12(forecast)company
Hokkaido Branch:• Distinguished Technology Award at theSociety of Heating, Air-Conditioning
and Sanitary Engineers Awards• Grand Prize at the Northern Regions
Energy-efficiency and New EnergyAwards• Grand Prize at the Hokkaido Energyefficiency and New Energy Promotion
Awards• Japan Wood Design Award 2022, etc.

• Going forward, we will propose andreceive ZEB refurbishment orders.
Utilizing analyses of actual operation at
our own ZEBs, expand ZEB refurbishmentthat allows equipment companies todesign and create proposals.

Hokuriku Branch:• The Nikkei New Office Awards• The Wooden Architecture Awards• Kanazawa Urban Structure Award• Grand Prize at the Ishikawa Scenery Awards
and Ishikawa Advertising Landscape Awards• IEIJ Good Lighting Award• Japan Wood Design Award 2023, etc.
© 2023 DAI-DAN Co.,Ltd.

Hachinohe-Nishi Health Checkup
Plaza ZEB Refurbishment Project:
Made ZEB-ready by introducing RIMOVIS, acloud-based automated control system.

28

Productivity improvement by DX promotion
Development of “offsite” bases for prefabrication

The newly established Support Department
further expands support• Offsite bases for prefabrication are now in operation in the Tokyo
metropolitan area and the Kansai region.
• Started to be developed also in Hokkaido and Kyushu.
• Contribute to the improvement in productivity and construction
quality, as well as time-saving with reduced field operations.

Drawing review on the branch side

Worksite participation• The Remote Worksite Assistance Team was expanded as adepartment.
• As efficient support from the head office and branch offices toconstruction sites, multifaceted support is provided for process
management, drawing preparation, and other tasks.
• This contributes to diverse work styles, the most effective measure
for work style reforms (overtime cap).

Construction Visualizer 4D
3D modeling of recorded
current situation
3D modeling makes thecreation of drawings easier,even for properties to berenovated without existingdrawings, and is utilized forconstruction planning, such asplanning for loading andunloading.
Previous period(Full year)

Current period(First half of the year)

14 projects

8 projects© 2023 DAI-DAN Co.,Ltd.

BIM Promotion
We are promoting the use of BIM as an important measure to
improve quality of design and construction, as well as operational
efficiency. Usage is growing substantially.
In addition to drawing creation,
extend BIM usage to include
integration, order placement formaterials and equipment, andcoordination with productmanufacturing (ducts and processed
pipes).
Previous period
Current period(Full year)(First half of the year)

93 projects

82 projects
29Realization of a high-quality medical environment
Making regenerative medicine accessible to everyone

 Regenerative Medicine Business
Target sales for FY2029[1] Our unique low-cost, high-quality cell processing facility “Cellab Tonomachi”
was approved by the Ministry of Health, Labour and Welfare.

[Expansion of equipment and system sales business][2] Acquired cancer therapeutic cell manufacturing technology making useof investment in a venture company.

[Contract cell manufacturing business has started]
Taking advantage of our capacity in both equipment and manufacturing, we
will develop and expand both businesses.
[3] Our unique cell processing facility “Cellab Haneda” was establishedin the Fujita Medical Innovation Center Tokyo, Fujita Health University.
 Visitors can observe cell processing on site.
[Entry into the self-funded medical treatment market, which is growing in
the regenerative medicine area][4] At the Kobe City Eye Hospital, clinical research was
conducted on retinal regeneration using iPS cells andgeneral-purpose humanoid robots in our proprietarycell processing facility.
[Entry into the automated cell manufacturing market]

3,000 million yen
Target sales for FY2026

1,000 million yen
Target sales for FY2023
350 million yen* Including CPF construction

Cellab Haneda in the
Fujita Medical Innovation
Center Tokyo, Fujita
Health University

All-in-one CP Unit in the Kobe City Eye Hospital© 2023 DAI-DAN Co.,Ltd.

30

Contribution to a sustainable society Air Filter Regeneration Business• Reuse business based on our one-of-a-kind “supercritical CO2
regeneration technology”• Decarbonization technology that not only contributes towaste reduction but is also expected to reduce CO2

emissions by approx. 30%

Target sales for FY2029

850 million yen
Target sales for FY2026

300 million yen• The main target is semiconductor plants in Japan,
where an upturn in investments has been seen and growth indemand is expected.
• Enhance regeneration plants to increase filter regeneration
volume.

Target sales for FY2023
75 million yen• Test cleaning has started in Taiwan, where we
conduct sales activities.
Customer (Factory)

Used filter(Performance degraded)

Regenerated filter(Performance recovered)

Expanded supercritical CO2 plant© 2023 DAI-DAN Co.,Ltd.

31

Reference:
DATA FILE(Full Year / Second
Quarter)32

Consolidated net sales of construction orders received
by construction type (Full year)(Millions of yen)
Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

Electrical installations

25,69030,88527,23627,25428,741

Air conditioning andplumbing installations

132,843

139,236

149,289

156,414

177,596

Total

158,533

170,121

176,526

183,668

206,337

Consolidated net sales of construction orders received(by construction type)(Millions of yen)
240,000

200,000

28,741160,000

25,69030,88527,23627,254
Electrical installations
Air conditioning andplumbing installations

120,000

80,000132,843

139,236

Period ended
March 2019

Period ended
March 2020

149,289

156,414

Period ended
March 2021

Period ended
March 2022

177,596

40,0000© 2023 DAI-DAN Co.,Ltd.

Period ended
March 2023

33

Trends in consolidated orders received(Orders received / Renovations) (Full year)(Millions of yen)
Period ended
March 2019
Net sales of
construction contract
orders received

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

158,533

170,121

176,526

183,668

206,337

Renovations

82,10985,00177,75489,224

83,691

Percentage ofrenovations

51.8%

50.0%

44.0%

48.6%

40.6%

Trends in consolidated orders received(Orders received / Renovations [Orders received / Percentage])(Millions of yen)
250,000

60.0%

50.0%

200,000

40.0%
150,000
30.0%
100,000
20.0%
50,00082,10985,00177,754

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Of which, renovations

Orders received

89,224

83,691

Period ended
March 2022

Period ended
March 2023

0

© 2023 DAI-DAN Co.,Ltd.

10.0%

0.0%

Percentae of renovations

34

Percentage of consolidated orders received by division(Full year)
Percentage of orders received
Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

East Japan Division

56.7%

57.4%

57.4%

58.0%

52.6%

West Japan Division

36.9%

36.6%

37.0%

35.8%

37.6%

International Division

6.4%

6.0%

5.5%

6.2%

9.9%

Percentage of orders received by division* The Central Japan Division was integrated into
the East Japan Division during the period ending
March 31, 2024, due to reorganization.

100%

80%
56.7%

57.4%

57.4%

58.0%

52.6%

60%

East Japan Division
West Japan DivisionInternational Division

40%

36.6%

37.0%

35.8%

6.4%

6.0%

5.5%

6.2%

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

20%

0%

© 2023 DAI-DAN Co.,Ltd.

37.6%

36.9%

9.9%
Period ended
March 2023

35

Consolidated net sales of completed construction contracts
by construction type (Full year)(Millions of yen)
Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

Electrical installations

24,393

26,84024,86525,67632,879Air conditioning andplumbing installations

131,171

142,388

132,846

137,253

153,082

Total

155,565

169,229

157,712

162,929

185,961(Millions of yen)

Consolidated net sales of completed construction contracts(by construction type)240,000

200,000

32,879160,000

26,84024,39324,865

Electrical installations

25,676Air conditioning andplumbing installations

120,000

80,000131,171

142,388

132,846

137,253

Period ended
March 2021

Period ended
March 2022

153,082

40,0000
Period ended
March 2019

© 2023 DAI-DAN Co.,Ltd.

Period ended
March 2020

Period ended
March 2023

36

Percentage of consolidated net sales of completed
construction contracts by division (Full year)
Percentage of net sales of completed construction contracts
Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

East Japan Division

55.1%

61.1%

58.3%

54.8%

56.0%

West Japan Division

40.2%

34.9%

37.7%

38.8%

34.8%

International Division

4.7%

4.0%

4.1%

6.4%

9.3%

Percentage of net sales of completed * The Central Japan Division was integrated into
the East Japan Division during the period ending
construction contracts by division
March 31, 2024, due to reorganization.
100.0%

80.0%
55.1%

61.1%

58.3%

54.8%

56.0%

60.0%

East Japan Division
West Japan DivisionInternational Division

40.0%

40.2%

© 2023 DAI-DAN Co.,Ltd.

34.8%

4.1%

6.4%

9.3%

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

37.7%

4.7%

4.0%

Period ended
March 2019

Period ended
March 2020

20.0%

0.0%

38.8%

34.9%

37

Consolidated operating/ordinary/net profits (Full year)(Millions of yen)
Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

Period ending
March 2024
(Forecast)

Operating profit

7,661

9,063

8,754

7,584

8,428

8,500

Ordinary profit

8,057

9,282

9,262

8,095

9,288

8,900

Net profit

5,464

6,399

6,318

5,778

6,626

6,500

Operating profit

Ordinary profit(Millions of yen)

(Millions of yen)

10,00010,000

8,000

8,000

6,000

6,000

4,000

4,000

2,000

2,000

0

0
Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

Period
ended
March
2023

PeriodendingMarch
2024(Forecast)

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

Period
ended
March
2023

PeriodendingMarch
2024(Forecast)

Net profit(Millions of yen)

8,000
6,000
4,000
2,000
0
Period
ended
March
2019

© 2023 DAI-DAN Co.,Ltd.

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

Period
ended
March
2023

PeriodendingMarch
2024(Forecast)

38

Consolidated net sales of construction orders received
by construction type (Second quarter)(Millions of yen)
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending
March 2024

Electrical installations

11,14015,824

12,34018,64723,735Air conditioning andplumbing installations

76,761

68,832

95,082

106,318

104,787

Total

87,90284,656

107,423

124,966

128,523

Consolidated net sales of construction orders received(by construction type)(Millions of yen)
140,000
120,000

18,647
12,340100,000
80,00011,140Air conditioning andplumbing installations

95,082
76,761

Electrical installations

15,82460,00040,00023,735

106,318

104,787

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

68,83220,0000© 2023 DAI-DAN Co.,Ltd.

2Q ofperiod ended
March 2020

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

39

Trends in consolidated orders received(Orders received / Renovations) (Second quarter)(Millions of yen)
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending March2024

Net sales of
construction contract
orders received

87,90284,656

107,423

124,966

128,523

Renovations

45,321

39,731

49,32649,121

41,737

Percentage ofrenovations

51.6%

46.9%

45.9%

39.3%

32.5%

Trends in consolidated orders received(Orders received / Renovations [Orders received / Percentage])(Millions of yen)
150,000

60.0%
50.0%

100,000

40.0%
30.0%

50,00020.0%

45,321

39,731

2Q ofperiod ended
March 2020

2Q ofperiod ended
March 2021

49,32649,121

2Q ofperiod ended
March 2022

2Q ofperiod ended
March 2023

Orders received

Percentage of renovations

41,7370

0.0%

Of which, renovations© 2023 DAI-DAN Co.,Ltd.

10.0%

2Q of
period ending
March 2024

40

Percentage of consolidated net sales of construction orders
received by division (Second quarter)
Percentage of orders received
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending March
2024

East Japan Division

56.3%

61.2%

54.2%

49.3%

52.9%

West Japan Division

39.4%

32.9%

39.8%

39.9%

41.5%

International Division

4.3%

6.0%

6.0%

10.8%

5.6%

Percentage of orders received by division* The Central Japan Division was integrated into
the East Japan Division during the period ending
March 31, 2024, due to reorganization.

100%

80%
56.3%

61.2%

54.2%

49.3%

52.9%

60%

East Japan Division
West Japan DivisionInternational Division

40%
39.9%
20%

0%

© 2023 DAI-DAN Co.,Ltd.

39.8%

39.4%

32.9%

4.3%

6.0%

6.0%

2Q of
period ended
March 2020

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

10.8%
2Q of
period ended
March 2023

41.5%

5.6%
2Q of
period ending
March 2024

41

Consolidate net sales of completed construction contracts
by construction type (Second quarter)(Millions of yen)
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending
March 2024

Electrical installations

12,02910,40010,418

13,97014,269Air conditioning andplumbing installations

66,88862,33455,362

68,72077,036

Total

78,91772,73465,78082,69091,306

Consolidated net sales of completed construction contracts (by construction type)(Millions of yen)
100,000

14,26975,00013,97012,029

Electrical installations

10,40010,418Air conditioning andplumbing installations

50,00066,88862,33425,00068,72077,03655,3620
2Q ofperiod ended
March 2020

© 2023 DAI-DAN Co.,Ltd.

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

42Percentage of consolidated net sales of completed construction
contracts by division (Second quarter)
Percentage of net sales of completed construction contracts
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending March
2024

East Japan Division

61.2%

56.1%

52.2%

57.4%

54.4%

West Japan Division

35.0%

40.5%

41.8%

33.2%

35.7%

International Division

3.8%

3.3%

6.0%

9.4%

9.9%

Percentage of net sales of completed * The Central Japan Division was integrated into
the East Japan Division during the period ending
construction contracts by division
March 31, 2024, due to reorganization.
100%

80%
61.2%

56.1%

52.2%

57.4%

54.4%

60%

East Japan Division
West Japan DivisionInternational Division

40%

40.5%

41.8%

33.2%

35.7%

20%

35.0%

3.8%

3.3%

6.0%

9.4%

9.9%

0%

2Q of
period ended
March 2020

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

2Q ofperiod ended
March 2023

2Q ofperiod ending
March 2024

© 2023 DAI-DAN Co.,Ltd.

43

Consolidated operating/ordinary/net profits (Second quarter)(Millions of yen)
Second quarter of
period ended March
2020

Second quarter of
period ended March
2021

Second quarter of
period ended March
2022

Second quarter of
period ended March
2023

Second quarter of
period ending March
2024

Operating profit

4,091

5,070

2,768

3,650

3,031

Ordinary profit

4,230

5,366

3,044

4,330

3,595

Net profit

2,897

3,654

2,077

3,045

2,411

Operating profit

Ordinary profit(Millions of yen)

(Millions of yen)

6,000

6,000

4,000

4,000

2,000

2,000
0

0
2Q of
period ended
March 2020

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

2Q of
2Q of
period ended period ending
March 2023
March 2024

2Q ofperiod ended
March 2020

2Q ofperiod ended
March 2021

2Q ofperiod ended
March 2022

2Q of
2Q of
period ended period ending
March 2023
March 2024

Net profit(Millions of yen)

4,000

2,000

0

© 2023 DAI-DAN Co.,Ltd.

2Q of
2Q of
2Q of
2Q of
2Q of
period ended period ended period ended period ended period ending
March 2020 March 2021
March 2022 March 2023 March 2024

44

Disclaimer
The forecast concerning future business results, including future plans and strategies, disclosed by the Company is basedon assumptions deemed reasonable at the time of announcement. Therefore, actual business results may differ from theforecast due to various factors.

IR-related inquiries:
Corporate Communications Dept., Corporate Planning Division Tel: +81-3-5276-4568
2-15-10 Fujimi, Chiyoda-ku, Tokyo 102-8175© 2023 DAI-DAN Co.,Ltd.

45