Financial Briefing Material
for the Second Quarter of
the Period Ending March2023
November 8, 2022

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 2023

Consolidated
Performance
Summary3

Consolidated Performance Summary
Overview of consolidated management indicators, etc. (operating results)(Millions of yen)
2nd Quarter of
period ended
March 2022

2nd Quarter of
period ending
March 2023

Increase(Decrease)

Change rate

Net sales of uncompleted construction
contracts at beginning of period

143,043

163,782

20,738

14.5%

Net sales of construction contract orders
received

107,423

124,966

17,542

16.3%

65,78082,69016,90925.7%

Gross profit on completed construction
contracts
Gross profit margin of completed
construction contracts (%)

8,857

10,364

1,507

17.0%

13.5%

12.5%

-0.9p

–

Operating profit

2,768

3,650

881

31.8%

4.2%

4.4%

0.2p

–

3,044

4,330

1,286

42.3%

Ordinary profit margin (%)

4.6%

5.2%

0.6p

–

Net profit attributable to owners of parent

2,077

3,045

967

46.6%

Net profit margin (%)

3.2%

3.7%

0.5p

–

Net sales of completed construction
contracts

Operating profit margin (%)
Ordinary profit

Business environment and the Company’s performance summary Net sales of construction contract orders received increased significantly year-on-year as a result of strong orders for redevelopment
projects and industrial facilities against the backdrop of corporations’ increasing demand for capital investment.
 Amid intensifying competition for order acquisition and soaring prices of materials and equipment, profits did not improve as expected, andthe gross profit margin of completed construction contracts declined. Uncompleted construction contracts, however, carried over from theprevious period and the increase in construction contract orders received during the current period pushed up net sales of completed
construction contracts, and gross profit on completed construction contracts increased accordingly.
 As a result of the above, both sales and profits increased.
© 2022 DAI-DAN Co.,Ltd.

4

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

363
Increase Decrease

95
2,003
(1,051)
(528)

3,650

2,768

Results of 2Q ofperiod ended March
2022

Increase in value ofwork done for general
construction contracts

Increase in value ofwork done forrenovations

Foreign exchange Decrease in gross profit Due to an increase ineffects due to the yen’s margin of completed
SG&A expenses anddepreciation
construction contracts
other factors

Results of 2Q ofperiod ending March2023

 The increase in profit from general construction is attributable to considerable progress on large-scale construction projects such as medical facilities,
airports, and redevelopment projects. The increase in profit from renovations is attributable to the considerable progress on large-scale construction
projects such as factories and data centers.
 The rapid depreciation of the yen that began at the end of the previous period continued in the current period, resulting in an increase in foreign
currency-denominated sales at our overseas branches, which contributed to profits.
 For construction projects making progress in the current period, amid intensifying competition for order acquisition and soaring prices of materials andequipment, the expected improvement in profits was not realized, resulting in a decline in the gross profit margin of completed construction contracts.
© 2022 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 2022

2nd Quarter of
period ending
March 2023

Increase(Decrease)

Change rate

12,34018,647

6,306

51.1%

Air conditioning installations

70,667

78,799

8,132

11.5%

Plumbing installations

24,41527,519

3,103

12.7%

Subtotal

95,082

106,318

11,236

11.8%

Total

107,423

124,966

17,542

16.3%

Electrical installations

10,418

13,970

3,551

34.1%

Air conditioning installations

38,63049,091

10,461

27.1%

Plumbing installations

16,732

19,628

2,896

17.3%

Subtotal

55,362

68,72013,357

24.1%

Total

65,78082,69016,90925.7%

Electrical installations

23,80728,140

4,332

18.2%

Air conditioning installations

117,975

135,341

17,366

14.7%

Plumbing installations

42,90342,575

(327)

-0.8%

160,878

177,917

17,03910.6%

184,685

206,057

21,371

11.6%

Electrical installationsAir
conditioning
and plumbing
installationsAir
conditioning
and plumbing
installationsAir
conditioning
and plumbing
installations

Subtotal
Total

 Orders received posted an increase in both electrical installations and air conditioning and plumbing installations thanks to orders mainly for
airports, data centers, factories, and heat source construction works for overseas resort facilities.
 Net sales (completed) increased due to progress on large-scale construction projects such as airports and medical facilities.
 Net sales (uncompleted) increased as uncompleted construction contracts carried over from the previous period and construction contract
orders received during the current period increased.
* The “Air conditioning and plumbing installations” category has been set as a total of air conditioning installations and plumbing installations.
© 2022 DAI-DAN Co.,Ltd.

6

Consolidated Performance Summary
Overview of consolidated management indicators, etc. (financial position)(Millions of yen)
Period ended
March 2022

2nd Quarter of
period ending
March 2023

Increase(Decrease)

Change rate

Major factors behind increase/decrease andannotation items

Net assets

77,242

79,055

1,813

2.3%

Quarterly net profit exceeded dividend of surplus.

Total assets

139,099

137,220(1,879)-1.4%

Liabilities recorded in the previous period were paid
off.

3,603.11 yen 3,684.74 yen

81.62 yen

2.3%

Book value per share (BPS)

Price book-value ratio (PBR)

Equity capital ratio

0.58 times

0.58 times

–

–

55.4%

57.5%

2.1p

–

(Reference) Closing stock price as of Mar. 31, 2022:
2,099 yen
Closing stock price as of Sept. 30, 2022:
2,141 yen

Overview of consolidated management indicators, etc. (cash flows)(Millions of yen)
2nd Quarter of
period ended
March 2022

2nd Quarter of
period ending
March 2023

Increase(Decrease)

Change rate

Major factors behind increase/decrease andannotation items

Cash flows from operating activities

(846)

8,509

9,356

–

Trade receivables were collected at a good pace.

Cash flows from investing activities

(945)

(686)

258

–

Reconstruction of Hokuriku Branch, demonstration
test building of Technical Research Laboratory, etc.

Cash flows from financing activities(1,404)(1,494)(89)–

Dividend payment

Cash and cash equivalents at
beginning of period

31,747

16,037(15,710)-49.5%

Increase/decrease in cash and cash
equivalents(3,203)

6,621

9,824

–

Cash and cash equivalents at end ofquarter

28,54422,659(5,885)-20.6%© 2022 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)

(686)
Investing CF

Period-end
cash and cash
equivalents
16,037

Period ended March 2022

8,509
Operating CF

Increase Decrease(1,494)
Financing CF

Period-end
cash and cash
equivalents
22,659

2nd Quarter of period
ending March 2023

 Regarding the breakdown of cash flows, while Operating CF (trade receivables collected at a good pace) increased, Investing CF(reconstruction of Hokuriku Branch, demonstration test building of Technical Research Laboratory, etc.) and Financing CF (dividend
payment) decreased due to different factors.
 We have signed commitment credit line agreements with three banks for efficient working capital financing.
© 2022 DAI-DAN Co.,Ltd.

8

Second Quarter Financial Results
for the Period Ending March 2023

Second Quarter
Financial Closing
Highlights
9Status of construction orders received
Renovations, direct orders, and public works(Millions of yen)
Period ending March
2023

Period ended March 2022
First half year

Second half year

Full year

First half year

Year-on-year change
Increase(Decrease)

Change rate

49,32639,89889,224

49,121

(204)

-0.4%

Ratio of renovations (%)

45.9%

52.3%

48.6%

39.3%

-6.6p

–

Mid-to-large renovations

33,014

21,591

54,60523,578(9,435)-28.6%

Small-scale renovations

16,312

18,307

34,61925,543

9,231

56.6%

General construction works

58,09636,346

94,44375,844

17,747

30.5%

Total orders received

107,423

76,245

183,668

124,966

17,54216.3%

Of which, direct orders

50,52436,46086,98555,333

4,809

9.5%

47.0%

47.8%

47.4%

44.3%

-2.8p

–

21,127

10,27531,403

12,381(8,746)-41.4%

19.7%

13.5%

17.1%

9.9%

-9.8p

–

Renovations

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

 Renovations remained almost unchanged year-on-year due to a reactionary drop following large-scale projects received in the previous
period, although small-scale projects posted an increase.
 General construction works increased year-on-year thanks to orders received for redevelopment projects and industrial facilities in Japan,
and heat source construction works for overseas resort facilities.
 The increase in direct orders is attributable to the above-mentioned industrial facility and overseas construction works.
 The decrease in public works is attributable to the reactionary drop following large-scale projects received in the previous period.
© 2022 DAI-DAN Co.,Ltd.

10

Status of construction orders received
Industrial facilities(Millions of yen)
Period ending
March 2023

Period ended March 2022
First half year
Total industrial
facilities(Share of totalorders: %)Total orders
received

Second half year

Full year

First half year

Year-on-year change
Increase(Decrease)

Change rate

37,09037,54374,63353,744

16,654

44.9%

34.5%

49.2%

40.6%

43.0%

8.5p

–

107,423

76,245

183,668

124,966

17,542

16.3%* Factories, labs, data centers, and logistics facilities are classified as “industrial facilities.”

Trends in industrial facility orders received(Millions of yen)
Industrial facilities

Of which, small-scale work

Industrial facilities' share of total orders

60,000

50.0%
6,823

50,00040,000046,921

6,238

20,00010,000

30.0%

5,686

30,00028,32527,225

2Q of period
ended
March 2019

2Q of period
ended
March 2020

© 2022 DAI-DAN Co.,Ltd.

21,196
2Q of period
ended
March 2021

31,404

2Q of period
ended
March 2022

40.0%

20.0%

 New factory construction and data center
expansion are on an increasing trend,
backed by corporations’ recovering interest
in investment. During the current period,
we received multiple orders for related
projects.
 As a result of the above, we received thelargest amount of orders in the last five
years.

10.0%

2Q of period
endingMarch 2023

0.0%

11

Status of construction orders received
Overseas operations
 Singapore Branch, DAI-DAN INTERNATIONAL ASIA PTE. LTD. (Singapore), DAI-DAN (THAILAND) CO., LTD., and DAI-DAN (VIETNAM)
CO., LTD. are the bases of our overseas operations.
 As our new overseas bases, we established DAI-DAN Taiwan Co., Ltd. in the current fiscal year.
(Millions of yen)
Period ending
March 2023

Period ended March 2022
First half year

Second half year

Full year

First half year

Year-on-year change
Increase(Decrease)

Change rate

Total overseas orders
received (consolidated)

6,449

4,937

11,386

13,486

7,037

109.1%(Share of total orders: %)

6.0%

6.5%

6.2%

10.8%

4.8p

–

107,423

76,245

183,668

124,966

17,542

16.3%

Total orders received

 Singapore is moving toward “coexistingwith Covid-19,” and now order receiving(Consolidated)
activities and construction site operation
DAI-DAN INTERNATIONAL ASIA
are returning to the pre-pandemic condition.
Overseas share of total orders During the current period, orders were
12.5%
received for heat source construction
768
works for large-scale resort facilities in
3,818
Singapore and total overseas orders
7.5%
doubled from a year earlier.

Trends in overseas construction orders received
Singapore Branch
DAI-DAN (THAILAND)(Millions of yen)

15,00010,0005,000
0-5,000

509

496

4,381

3,270

2Q of period
ended
March 2019

2Q of period
ended
March 2020

338
4,706
2Q of period
ended
March 2021

6,833
-384

2Q of period
ended
March 2022

8,900
2.5%
2Q of period
endingMarch 2023

-2.5%

* The negative figure in DAI-DAN (THAILAND) for 2Q of the period ended March 2022 is due to cancellation of an order received for large-scale construction.

© 2022 DAI-DAN Co.,Ltd.

12

Status of completed construction contracts(Millions of yen)

Second quarter of period ended March 2022 Second quarter of period ending March 2023
Monetary amountComposition ratio

Monetary amountComposition ratio

Year-on-year change
Monetary amount

Change rate

Total net sales of completed
construction contracts

65,780100.0%

82,690100.0%

16,90925.7%

Of which;(Renovations)

34,125

51.9%

36,092

43.6%

1,966

5.8%

27,565
3,931

41.9%
6.0%

32,305
7,794

39.1%
9.4%

4,740
3,863

17.2%
98.3%

(Industrial facilities)(Overseas operations)* The figures in the table include a certain amount of overlap, as calculation is done by construction type: renovations, industrial facilities, andoverseas operations.
(Millions of yen)

Consolidated net sales of completed construction contracts

90,00080,00070,00060,00050,00040,00030,00020,000 The increase in renovations, industrial
facilities, and overseas operations islargely a result of progress in largescale construction projects, especiallyfactories and data centers, with adoubling of overseas operations.
 In addition to the above, large-scaleconstruction projects such as airports
and medical facilities made progress,
causing net sales of completed
construction contracts to grow for thecurrent period.

10,0000

2Q of period ended
March 2019

Renovations© 2022 DAI-DAN Co.,Ltd.

2Q of period ended
March 2020

Industrial facilities

2Q of period ended
March 2021

Overseas operations

2Q of period ended 2Q of period ending
March 2022
March 2023

Total net sales of completed construction contracts

13

Status of uncompleted construction contracts(Millions of yen)
Second quarter of period ended March 2022
Monetary amountSecond quarter of period ending March 2023

Composition ratio

Monetary amountComposition ratio

Year-on-year change
Monetary amount

Change rate

Net sales of uncompleted
construction contracts at
beginning of period

143,043–

163,782–

20,738

14.5%

Net sales of construction
contract orders received

107,423–

124,966–

17,542

16.3%

Net sales of completed
construction contracts

65,780–82,690–16,90925.7%

Net sales of uncompleted
construction contracts

184,685

100.0%

206,057

100.0%

21,371

11.6%

Of which; (Renovations)

48,05526.0%

49,925

24.2%

1,870

3.9%

(Industrial facilities)

49,781

27.0%

66,69932.4%

16,91834.0%(Overseas operations)

14,384

7.8%

18,531

9.0%

4,146

28.8%

Of these, contracts to becompleted in the second half ofthe year

74,743–80,256

–

5,513

7.4%

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

Consolidated net sales of uncompleted construction contracts

220,000
165,000
110,000
55,0000

2Q of period ended 2Q of period ended 2Q of period ended 2Q of period ended 2Q of period ending
March 2019
March 2020
March 2021
March 2022
March 2023

Renovations© 2022 DAI-DAN Co.,Ltd.

Industrial facilities

Overseas operations

Total net sales of uncompleted construction contracts

 As for uncompleted construction contracts
for the current period, net sales of
construction contract orders received
exceeded net sales of completed
construction contracts, posting year-onyear growth.
 The highest net sales of uncompleted
construction contracts in the last five years
were posted in the current period, meaninga sufficient volume of construction works
has been secured.
 A sufficient volume of unfinishedconstruction projects has been secured,
especially for large-scale projects such as
medical facilities, redevelopment projects,
and industrial facilities, and these willcontribute to the value of work done for thesecond half of the year and beyond.

14

Quarterly operating results(Millions of yen)

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

Operating profit

Period ended March
2022

Period ending March
2023

Increase(Decrease)

April–June

44,69866,71222,014

49.3%

July–September

62,72558,253(4,471)-7.1%

April–September

107,423

124,966

17,542

16.3%

April–June

27,25735,342

8,085

29.7%

July–September

38,52347,348

8,825

22.9%

April–September

65,78082,69016,90925.7%

April–June

528

818

289

54.7%

July–September

2,240

2,832

592

26.4%

April–September

2,768

3,650

881

31.8%

Change rate For the period from April to June, net sales of construction contract orders received posted an increase from the previous period asorders for redevelopment and industrial facility projects were received on a steady basis. Consistent progress in uncompleted
construction contracts carried over from the previous period, causing both net sales of completed construction contracts and operating
profit to grow.
 For the period from July to September, net sales of construction contract orders received decreased from the previous period due to areactionary decline following large-scale projects received in the previous period. Consistent progress in uncompleted construction
contracts, however, pushed up both net sales of completed construction contracts and operating profit increased compared to theprevious period.

© 2022 DAI-DAN Co.,Ltd.

15

Second Quarter Financial Results
for the Period Ending March 2023

Full-Year Earnings
Forecast for the
Period Ending
March 2023
16

Full-year earnings forecast
Environment and strategy to obtain orders[Current status]
 Orders for shops and department stores have recovered to pre-pandemic levels, and orders forfactories and data centers have further expanded. Additionally, overseas operations are growing fasterthan originally planned.
[Outlook] Capital investment, which had been postponed due to the impact of Covid-19, has resumed. Capital
investment is increasing more than the pre-pandemic level in semiconductors and data centers associety becomes more digital, as well as in EV (electric vehicle) components and vehicle-mounted
batteries trending toward a decarbonized society.
 With regard to pharmaceutical facilities, projects subsidized by the Ministry of Economy, Trade andIndustry (METI) to strengthen the vaccine production system have driven expansion of facilities,
leading to an increase in inquiries.
 Orders for large-scale projects such as industrial facilities are also strong. Our strategy is to secureorders for construction works to be carried over to the next period and beyond, taking into
consideration installer capacity and profitability.
Regarding profitability
 Amid a sharp rise in material and equipment costs and labor costs, we are making efforts to reduce theimpact by placing orders early and examining costs before placing orders, though the situation remains
severe.
© 2022 DAI-DAN Co.,Ltd.

17

Full-year earnings forecast
Consolidated full-year earnings forecast(Millions of yen)
Period ended March 2022

Second half year
(Forecast)

Full year(Forecast)183,668

124,966

68,034

193,000

9,332

5.1%

97,149

162,929

82,69097,310180,000

17,071

10.5%

8,857

11,866

20,723

10,364

12,63623,000

2,277

11.0%

13.5%

12.2%

12.7%

12.5%

13.0%

12.8%

0.1p

–

2,768
4.2%
3,044
4.6%

4,816
5.0%
5,051
5.2%

7,584
4.7%
8,095
5.0%

3,650
4.4%
4,330
5.2%

4,850
5.0%
4,370
4.5%

8,500
4.7%
8,700
4.8%

916
0.1p
605
-0.1p

12.1%
–
7.5%
–

2,077

3,701

5,778

3,045

2,955

6,000

222

3.8%

3.2%

3.8%

3.5%

3.7%

3.0%

3.3%

-0.2p

–

Second half year

Net sales of construction
contract orders received

107,423

76,245Net sales of completed
construction contracts

65,780Gross profit margin ofcompleted construction
contracts (%)
Operating profit
Operating profit margin (%)
Ordinary profit
Ordinary profit margin (%)
Net profit attributable toowners of parent
Net profit margin (%)

Year-on-year change, full year

First half year

First half year

Gross profit on completed
construction contracts

Period ending March 2023
Full year

Increase(Decrease)

Change rate

Preconditions for earnings forecast
 Net sales of completed construction contracts are expected at 180,000 million yen, an increase of 5,000 million yen from the previously
announced forecast of 175,000 million yen, mainly due to strong orders received in the first half year, which will contribute to the value ofwork done for the current period.
 Although net sales of construction contract orders received were favorable in the first half of the year, there is no change from the forecast
announced on May 11, 2022, taking into consideration installer capacity for the next period onward and other factors.
 As for profits, given future price and labor cost increases and other factors, there is no change from the earnings forecast announced on
May 11, 2022.
© 2022 DAI-DAN Co.,Ltd.

18

Shareholder return
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.
 We have a dividend policy of striving for a payout ratio of 30% or more as per the numerical targets in our Mid-Term Management Plan.

Dividend status
Full-year dividend
End of second
quarter

End of period

Total

Total dividend(Total sum)

Dividend ratio(Consolidated)

Dividend on equity
ratio(Consolidated)

Yen SenYen SenYen SenMillion yen%%

Period ended March 2021

45.00

45.00

90.00

1,949

30.8%

2.7%

Period ended March 2022

45.00

45.00

90.00

1,935

33.3%

2.5%

Period ending March 2023
(Forecast)

45.00

55.00

100.00

–

35.7%

–

 We will celebrate the 120th anniversary of our company’s founding on March 4, 2023. We would like to express our sincere gratitude to allof our shareholders and other stakeholders for their support.
As a token of our gratitude to all the shareholders who have supported us, we will pay an ordinary dividend of 90 yen, plus a dividend of
10 yen to commemorate the 120th anniversary of our company’s founding, totaling 100 yen as an annual dividend per share (an interim
dividend of 45 yen and a year-end dividend of 55 yen) for the current fiscal year.

Purchase of treasury shares We will consider it as appropriate aiming for returning profits to our shareholders and improving capital efficiency.
© 2022 DAI-DAN Co.,Ltd.

19

Second Quarter Financial Results
for the Period Ending March 2023

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

© 2022 DAI-DAN Co.,Ltd.

Implementation status of
measures

Details are provided in“Our Sustainability Initiatives.”

21

Mid-Term Management Plan Progress<Orders received, Net sales, Operating profit> Promote measures to achieve targets in the Mid-Term Management Plan “Preparation Stage.”
Increase orders toward the final-year targets of 200 billion yen in net sales and 10 billion yen in
operating profit for the fiscal year ending March 31, 2024, and add up net sales in the current
period.
Continue to increase new hires and move ahead with DX to improve productivity.
Earnings forecast for the Mid-Term Management Plan

<Mid-Term Management Plan period>

250,000

Orders received / Net sales

200,000

176,526
170,121
157,712169,229

183,668(208,000)(193,000)(200,000)(180,000)(175,000)

162,929(8,500)150,000
9,063

8,754

100,000(10,000)

12,50010,0007,500

124,966

5,000
82,6902,500

2Q results© 2022 DAI-DAN Co.,Ltd.

15,000

7,584

50,0000(Millions of yen)

Operating profit(Millions of yen)March 2020

Period ended
March 2021

Period ended
March 2022

Orders received

Net sales

Period ending
March 2023

Period ending
March 2024

0

Operating profit

22

Productivity improvement by DX promotion
Construction Visualizer 4D

Remote Worksite Assistance Team

Omnidirectional camera
capturing the site

Worksite participation

Drawing review on the branch side
Camera-centered images
in all directions can berecorded at once.

Video data is processed by dedicated software.

For the purpose of efficient support from the head office and branch offices toconstruction sites scattered throughout various regions, multifaceted support is provided
for process management and mutual on-site drawing preparation, utilizing web
conference tools, cloud file servers, and common CAD software. Support is also provided
from the head office to local branch properties.

3D modeling of recorded current situation

Previous period(Full year)

Current period(First half of the year)

339 projects

279 projects

BIM Promotion

Even properties to be renovated without existingdrawings can be utilized for construction planning.
Previous period(Full year)

Current period(First half of the year)

12 projects

9 projects© 2022 DAI-DAN Co.,Ltd.

We are promoting the use of
BIM as an important measure
to improve design andconstruction quality andoperational efficiency.
We will continue to develop
an operational environment
for general-purpose BIM
software, aiming to start fullscale operation in the next
period.

Previous period(Full year)

Current period(First half of the year)

52 projects

57 projects
23

Important measures for the Mid-Term Management Plan
<Expansion of industrial facility construction>
 In industrial facilities, expansion of electronic device factories and data centers is remarkable.
 Establishment of the Engineering Division in April 2022 to strengthen the design and installer
capacities specializing in industrial facilities has contributed to an increase in orders.
(Millions of yen)

Trends in orders received for industrial facilities

100,000<Mid-Term Management Plan period>

90,000(83,500)

80,00074,633

Orders received

70,00065,64960,00050,06950,00040,000(77,200)

53,206

55,69553,74432,511

30,00020,0002Q results

10,0000

Period ended
March 2017

Period ended
March 2018

Factory-related

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Data centers, logistics facilities, and laboratories

Period ended
March 2022

Period ending
March 2023

Period ending
March 2024

Small-scale construction work

* Following the review of the construction category, small-scale construction work related to industrial facilities has been added from theperiod ended March 31, 2021.
© 2022 DAI-DAN Co.,Ltd.

24

Important measures for the Mid-Term Management Plan
<Strengthening of overseas operations> Business operations centered on Singapore and Thailand. Establishing local subsidiaries in Vietnam in
October 2020 and Taiwan in April 2022.
 Since orders are favorable and net sales of completed construction contracts are growing steadily, we
have added extra amounts to the initial plan.
[Orders received: 14.6 billion yen → 15.0 billion yen, Net sales of completed construction contracts: 12.5
billion yen → 15.0 billion yen]
Trends in overseas operations

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

20,000<Mid-Term Management Plan period>

18,000(17,500)(15,000)(15,000) (16,000)

16,000(14,600)

14,00012,0006,000

10,258

10,20810,000
8,000

4,246
4,560

7,295

4,695
5,233

6,709

10,414

9,738

13,486

6,423

7,794

4,000
2,000
0

2Q results
Period ended
March 2017

Period ended
March 2018

Period ended
March 2019

Orders received© 2022 DAI-DAN Co.,Ltd.

(12,500)

11,386

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ending
March 2023

Period ending
March 2024

Net sales of completed construction contracts

25

Second Quarter Financial Results
for the Period Ending March 2023

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

Contribute to a decarbonized society
Keep up with changes in business environment
through DX

Concrete measures

Increase in ZEB-related
construction works
On-site adoption of ICT-based
technology

Realize a high-quality medical environment

Initiatives in the field of
regenerative medicine

Achieve innovation and improve productivity
through research and fostering of humanresources

Increase in intellectual
property ownership

Health and safety conscious work environmentthat makes employees feel their work is
rewarding

Improvement in employee
satisfaction

Partnership with subcontractors and suppliers

Improvement in Meister
retention rate

© 2022 DAI-DAN Co.,Ltd.

SDGs

27

Initiatives toward decarbonization

Dissemination and expansion of ZEB
 Social trend toward 2050 carbon neutrality• Growing expectations for ZEB that contribute to theleveling of energy supply amid unstable international
conditions• Gradual strengthening of energy saving
standards in accordance with the ZEB policy• Enhancement of subsidy programs to encourage

12,00012• New buildings will be ZEB in 2030 (government roadmap)→ ZEB technology is essential.

10,000

10

8,000

8

6,000

6

4,000

4

2,000

2

 ZEB orders received• DAI-DAN’s efforts, including the conversion of its own
buildings to ZEB, have been highly regarded, establishinga corporate image that ZEB is DAI-DAN’s strength.
As a result, the number of orders received is increasing as
the market expands.

 Orders received through REMOVIS(cloud-based automatic control system)• Continuous tuning after the construction completion isimportant for ZEB.

Floor area (x1,000 m2)

ZEB conversion

0

FY2019FY2020ZEB-certified floor area in Japan

FY2021

FY2022(Forecast)

Number of orders received

ZEB market and number of orders received

0

Number of orders received• REMOVIS is a system (developed by DAI-DAN) thatenables remote management, control, and tuning of facilities.
• The system is expected to be adopted to three projects during the current period.
© 2022 DAI-DAN Co.,Ltd.

28

Initiatives toward decarbonization

Dissemination and expansion of ZEB
 Promoting decarbonization by converting
own buildings to ZEB• Following Kyushu Branch in 2016,
Shikoku Branch in 2019, andHokkaido Branch in 2021,

Hokuriku Branch was completed in May 2022.

• Many government agencies, design firms, generalcontractors, and other customers visited our branches.
→ Contributed to the dissemination of ZEB.

 Hokkaido Branch• Received the Encouragement Award,
Hokkaido Energy Saving and New Energy
Award• Rebuilding of Niigata Branch into a ZEB is scheduled
to be completed in December 2023.
→ Realization of DX in the installation process and workstyle

 Utilization of operation data available
only for our own buildings• Analysis and tuning of operation data using REMOVIS areunderway.
→ Compelling design and construction

proposals© 2022 DAI-DAN Co.,Ltd.

 Hokuriku Branch• A next-generation office building themed on a fusion of“tradition” and “innovation,” aiming for both eco-friendliness and a comfortable working
environment, harmonizing with the cityscape• A wellness office that improves the health andcomfort of workers as well as intellectual productivity

29

Realization of a high quality medical environment

Initiatives contributing to the practical application of regenerative
medicine Solving issues in the field of regenerative medicine by utilizing equipment technology[2] Establish facilities and systems necessary for cellmanufacturing.
→ Contract cell manufacturing business• Promote the above through a subsidiary specializing inregenerative medicine.
→ Contribute to the field of regenerative medicine interms of both hardware and software.

[2] Contract cell manufacturing business• We plan to start contract manufacturing ofcancer therapeutic cells developed by Gaia
BioMedicine, Inc., a Kyushu University venture business.
→ Start of Phase I/II clinical trials for lung cancer→ Start of investigator-initiated clinical trials for gastriccancer and pancreatic cancer[1] Equipment and system sales business• Propose facilities suited to customer needs based on ourengineering capabilities and experience inconstructing well-known properties in the field of
regenerative medicine to the market expected to be worth¥550 billion in 2030.

Domestic market(100 millions of yen)

(Blood (Kymriah), etc.)© 2022 DAI-DAN Co.,Ltd.

CUORiPS(myocardia)(Millions of yen)

10,000

6,000

7,500

4,500

5,000

4,800

2,500
0

Keio University Hospital

Domestic regenerative medicine market

3,000
1,500

0 47

900136272

FY2020

FY2025

FY20300

Estimated DAI-DAN’s sales[1] Provide low-cost, high-quality cell processing facilities.
→ Equipment and system sales business

Cells, etc. (DAI-DAN)

Equipment, systems, etc. (DAI-DAN)

Cells, etc. (Market)

Equipment, systems, etc. (Market)

Mie University(Cancer (CAR-T))

30

New sustainability-related initiatives
Waste reduction: Expansion of filter regeneration business CSV Business aimed at solving environmental
issuesCustomer (Factory)• Reuse business leveraging our one-of-a-kind“supercritical CO2 regeneration technology”

Used filter(Performance degraded)

Regenerated filter(Performance recovered)• Filter regeneration service business recycling used air
filters for semiconductor manufacturing equipment thatwere previously disposed of• Decarbonization technology that not only contributes towaste reduction but is also expected to reduce CO2
emissions by approx. 30%

Sales plan for filter regeneration service business Operations not only in Japan but also overseas• Expand plant operations for business expansion both inJapan and overseas→ Expected to start operations in April 2023.
• New customers are being developed by leveraging ourachievement in regeneration aiming to increase order
receipt in Japan.

© 2022 DAI-DAN Co.,Ltd.

[Millions of yen]

• A local subsidiary was established in Taiwan in April 2022.
→ Sales activities started in Taiwan.

400
350
300
250
200

100

150

60

100
50
0

150

0
45

0
50

100

FY2021

FY2022Japan

FY2023
Overseas

150

160

FY2024FY202531

Promoting sustainability-related initiatives• Disclosure in line with TCFD recommendations• Conclusion of the “DAI-DAN Forest Making” agreement
Forest Making
agreement sites
as of October 31, 2022
• Hokkaido• Saitama Prefecture• Mie Prefecture• Ishikawa Prefecture• Shiga Prefecture• Okayama Prefecture• Ehime Prefecture• Kumamoto Prefecture• Improvement of ESG rating agency FTSE score
Overall score 2.7 in 2021 ⇒ 3.0 in 2022
• Selected as a constituent of the FTSE Blossom
Japan Sector Relative Index (493 companies)• Introduction of green electricity
to head office, branch offices,etc.

• Certified as a Health &Productivity Management
Outstanding Corporation 2022
(Large Enterprise Category).

© 2022 DAI-DAN Co.,Ltd.

• Company-wide Overtime
Work Reduction Project<SMILE 2024 Project>launched.

32Reference:
DATA FILE(Full Year / Second
Quarter)33

Consolidated net sales of construction orders received
by construction type (Full year)(Millions of yen)
Period ended
March 2018

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

22,73525,69030,88527,23627,254Air conditioning
installations

92,09393,289102,515

104,878

117,966

Plumbing
installations

32,50639,55336,72044,41038,447

124,600

132,843

139,236

149,289

156,414147,335

158,533

170,121

176,526

183,668

Electrical installationsAir
conditioning
and plumbing
installations

Period ended
March 2019

Subtotal

Total

Consolidated net sales of construction orders received(by construction type)(Millions of yen)
200,000

160,000

22,73525,69030,88527,236

120,000

80,000124,600(92,093)

132,843(93,289)

149,289
139,236(104,878)

27,254

156,414(117,966)Electrical installations
Air conditioning andplumbing installations((

Air conditioning installations）
Plumbing installations）(102,515)

40,000(32,506)0© 2022 DAI-DAN Co.,Ltd.

(39,553)(36,720)(44,410)(38,447)

Period ended March Period ended March Period ended March Period ended March Period ended March
2018
2019
2020
2021
2022

34

Trends in consolidated orders received(Orders received / Renovations) (Full year)(Millions of yen)
Period ended
March 2018
Net sales of
construction contract
orders received

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

147,335

158,533

170,121

176,526

183,668

Renovations

71,748

82,10985,00177,75489,224

Percentage ofrenovations

48.7%

51.8%

50.0%

44.0%

48.6%

Trends in consolidated orders received(Orders received / Renovations [Orders received / Percentage])(Millions of yen)
200,000

60.0%
50.0%

150,000
40.0%
30.0%

100,000

20.0%
50,00071,7480Period ended
March 201882,10985,00177,754

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Orders received

Percentae of renovations

Of which, renovations© 2022 DAI-DAN Co.,Ltd.

89,224

Period ended
March 2022

10.0%
0.0%

35

Percentage of consolidated orders received by division(Full year)
Percentage of orders received
Period ended
March 2018

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

East Japan Division

41.6%

38.6%

39.1%

40.0%

41.2%

Central Japan Division

16.7%

18.1%

18.3%

17.5%

16.8%

West Japan Division

38.5%

36.9%

36.6%

37.0%

35.8%

International Division

3.2%

6.4%

6.0%

5.5%

6.2%

Percentage of orders received by division
100%

80%

41.6%

38.6%

39.1%

40.0%

41.2%

18.1%

18.3%

17.5%

16.8%

60%
16.7%

East Japan Division
West Japan Division

40%

International Division

36.9%

36.6%

37.0%

35.8%

3.2%

6.4%

6.0%

5.5%

6.2%

Period ended
March 2018

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

20%

38.5%

0%

© 2022 DAI-DAN Co.,Ltd.

Central Japan Division36

Consolidated net sales of completed construction contracts
by construction type (Full year)(Millions of yen)
Period ended
March 2018

Period ended
March 2021

Period ended
March 2022

24,393

26,84024,86525,676Air conditioning
installations

85,926

92,939102,432

96,526

98,270Plumbing
installations

31,52538,232

39,95636,32038,982

117,451

131,171

142,388

132,846

137,253

143,448

155,565

169,229

157,712

162,929

Subtotal

Total(Millions of yen)

Period ended
March 2020

25,996

Electrical installationsAir
conditioning
and plumbing
installations

Period ended
March 2019

Consolidated net sales of completed construction contracts(by construction type)200,000

160,000

24,393120,000

80,00026,84024,86525,67625,996

117,451(85,926)

Electrical installations
Air conditioning andplumbing installations

131,171(92,939)

142,388(102,432)

132,846(96,526)

137,253((

Air conditioning installations）
Plumbing installations）(98,270)

40,000(31,525)
0© 2022 DAI-DAN Co.,Ltd.

Period ended
March 2018(38,232)(39,956)(36,320)

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

(38,982)
Period ended
March 2022

37

Percentage of consolidated net sales of completed
construction contracts by division (Full year)
Percentage of net sales of completed construction contracts
Period ended
March 2018

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

East Japan Division

40.1%

37.1%

45.3%

41.3%

37.5%

Central Japan Division

17.3%

18.0%

15.8%

16.9%

17.2%

West Japan Division

39.0%

40.2%

34.9%

37.7%

38.8%

International Division

3.6%

4.7%

4.0%

4.1%

6.4%

Percentage of net sales of completed construction contracts by division
100.0%

80.0%

40.1%

37.1%

45.3%

41.3%

37.5%

60.0%
17.3%

18.0%
15.8%

16.9%

17.2%

0.0%

© 2022 DAI-DAN Co.,Ltd.

Central Japan Division
West Japan Division

40.0%

20.0%

East Japan DivisionInternational Division

39.0%

40.2%

3.6%
Period ended
March 2018

38.8%

34.9%

37.7%

4.7%

4.0%

4.1%

6.4%

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

38

Consolidated operating/ordinary/net profits (Full year)(Millions of yen)
Period ended
March 2018

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ending
March 2023
(Forecast)

Operating profit

7,385

7,661

9,063

8,754

7,584

8,500

Ordinary profit

7,674

8,057

9,282

9,262

8,095

8,700

Net profit

5,109

5,464

6,399

6,318

5,778

6,000

(Millions of yen)
10,000Operating profit

8,000

8,000

6,000

6,000

4,000

4,000

2,000

2,000

0

Period
ended
March
2018

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Ordinary profit(Millions of yen)
10,000Period
ended
March
2022

0

PeriodendingMarch
2023(Forecast)

Period
ended
March
2018

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

PeriodendingMarch
2023(Forecast)

Net profit(Millions of yen)
8,000
6,000
4,000
2,000
0

© 2022 DAI-DAN Co.,Ltd.

Period
ended
March
2018

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

PeriodendingMarch
2023(Forecast)

39

Consolidated net sales of construction orders received
by construction type (Second quarter)(Millions of yen)
Second quarter of
period ended March
2019

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 ending March
2023

10,20011,14015,824

12,34018,647Air conditioning
installations

49,30755,28847,51070,667

78,799Plumbing
installations

20,143

21,473

21,322

24,41527,519Subtotal

69,45076,761

68,832

95,082

106,318

79,65087,90284,656

107,423

124,966

Electrical installationsAir
conditioning
and plumbing
installations
Total

Consolidated net sales of construction orders received(by construction type)(Millions of yen)
125,000

18,647
12,340100,000

75,00011,140
10,20015,824

106,318
95,08250,00069,450(49,307)76,761(55,288)

68,832(78,799)(70,667)

Electrical installations
Air conditioning andplumbing installations((

Air conditioning installations）
Plumbing installations）

Plumbing installations(47,510)25,0000© 2022 DAI-DAN Co.,Ltd.

(20,143)(21,473)(21,322)(24,415)(27,519)

2Q of period ended
March 2019

2Q of period ended
March 2020

2Q of period ended
March 2021

2Q of period ended
March 2022

2Q of period ending
March 2023

40

Trends in consolidated orders received(Orders received / Renovations) (Second quarter)(Millions of yen)
Second quarter of
period ended March
2019

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 ending March2023

Net sales of
construction contract
orders received

79,65087,90284,656

107,423

124,966

Renovations

40,82845,321

39,731

49,32649,121

Percentage ofrenovations

51.3%

51.6%

46.9%

45.9%

39.3%

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%

50,0000© 2022 DAI-DAN Co.,Ltd.

20.0%

40,82845,321

39,731

2Q of period ended
March 2019

2Q of period ended
March 2020

2Q of period ended
March 2021

Of which, renovations

Orders received

49,32649,121

2Q of period ended
March 2022

2Q of period ending
March 2023

10.0%
0.0%

Percentage of renovations

41

Percentage of consolidated net sales of construction orders
received by division (Second quarter)
Percentage of orders received
Second quarter of
period ended March
2019

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 ending March
2023

East Japan Division

38.1%

38.0%

43.3%

43.3%

34.8%

Central Japan Division

17.0%

18.4%

17.9%

10.8%

14.6%

West Japan Division

38.8%

39.4%

32.9%

39.8%

39.9%

International Division

6.1%

4.3%

6.0%

6.0%

10.8%

Percentage of orders received by division
100%

80%

38.1%

38.0%

17.0%

18.4%

43.3%

43.3%

60%

34.8%

14.6%
17.9%

10.8%

Central Japan Division
West Japan Division

40%

International Division

39.8%

38.8%

39.4%

32.9%

6.1%

4.3%

6.0%

6.0%

2Q of period ended
March 2019

2Q of period ended
March 2020

2Q of period ended
March 2021

2Q of period ended
March 2022

20%

0%

East Japan Division© 2022 DAI-DAN Co.,Ltd.

39.9%

10.8%
2Q of period ending
March 2023

42

Consolidate net sales of completed construction contracts
by construction type (Second quarter)(Millions of yen)
Second quarter of
period ended March
2019

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 ending
March 2023

11,275

12,02910,40010,418

13,970Air conditioning
installations

41,13947,96343,64838,63049,091

Plumbing
installations

17,262

18,924

18,685

16,732

19,628Subtotal

58,402

66,88862,33455,362

68,72069,677

78,91772,73465,78082,690Electrical installationsAir
conditioning
and plumbing
installations
Total

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

75,00012,02911,27550,00058,402(41,139)

13,97010,40010,41866,888(47,963)

62,33468,720(43,648)

55,362(((49,091)

Electrical installations
Air conditioning andplumbing installations
Air conditioning installations）
Plumbing installations）

Plumbing installations(38,630)

25,0000© 2022 DAI-DAN Co.,Ltd.

(17,262)(18,924)(18,685)(16,732)(19,628)

2Q of period ended
March 2019

2Q of period ended
March 2020

2Q of period ended
March 2021

2Q of period ended
March 2022

2Q of period ending
March 2023

43

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
2019

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 ending March
2023

East Japan Division

35.5%

46.4%

37.9%

35.3%

39.4%

Central Japan Division

17.8%

14.8%

18.2%

16.9%

18.0%

West Japan Division

42.6%

35.0%

40.5%

41.8%

33.2%

International Division

4.1%

3.8%

3.3%

6.0%

9.4%

Percentage of net sales of completed construction contracts by division
100.0%

80.0%

60.0%

35.5%

46.4%

17.8%

37.9%

18.2%

35.3%

16.9%

14.8%

39.4%

18.0%

0.0%

© 2022 DAI-DAN Co.,Ltd.

Central Japan Division
West Japan Division

40.0%

20.0%

East Japan DivisionInternational Division

42.6%

35.0%

40.5%

41.8%

33.2%

9.4%

4.1%

3.8%

3.3%

6.0%

2Q of period ended
March 2019

2Q of period ended
March 2020

2Q of period ended
March 2021

2Q of period ended
March 2022

2Q of period ending
March 2023

44

Consolidated operating/ordinary/net profits (Second quarter)(Millions of yen)
Second quarter of period
ended March 2019

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 ending March
2023

Operating profit

3,649

4,091

5,070

2,768

3,650

Ordinary profit

3,939

4,230

5,366

3,044

4,330

Net profit

2,645

2,897

3,654

2,077

3,045

(Millions of yen)

Operating profit

6,000(Millions of yen)
6,000

4,000

4,000

2,000

2,000

0

2Q of period
ended
March 2019

2Q of period
ended
March 2020

2Q of period
ended
March 2021

2Q of period
ended
March 2022

(Millions of yen)
4,000

0

2Q of period
endingMarch 2023

Ordinary profit

2Q of period
ended
March 2019

2Q of period
ended
March 2020

2Q of period
ended
March 2022

2Q of period
endingMarch 2023

2Q of period
ended
March 2021

2Q of period
ended
March 2022

2Q of period
endingMarch 2023

Net profit

2,000

0

© 2022 DAI-DAN Co.,Ltd.

2Q of period
ended
March 2019

2Q of period
ended
March 2020

2Q of period
ended
March 2021

45

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 Office Tel: +81-3-5276-4568
2-15-10 Fujimi, Chiyoda-ku, Tokyo 102-8175© 2022 DAI-DAN Co.,Ltd.

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