Financial Briefing
Material for the Period
Ended March 2023
May 11, 2023

Contents
Fraudulent Act Conducted by theCompany’s Employees
Consolidated Performance Summary
Full-Year Financial Closing Highlights
Full-Year Earnings Forecast for the
Period Ending March 2024
Progress Status of Mid-Term
Management Plan
Our Sustainability Initiatives
Reference: DATA FILE (Full Year)2

Financial Briefing Material for
the Period Ended March 2023

Fraudulent Act
Conducted by theCompany’s
Employees
3Fraudulent Act Conducted by the Company’s Employees
Details of the fraudulent act
It was found that several employees working at the Company’s Osaka Head Office, in cooperation with a specificconstruction subcontractor, accepted from the subcontractor a portion of the amount of padded or fictitious orders placedwith the subcontractor in kickbacks and used them as entertainment expenses. The kickbacks were also used to replaceconstruction costs with other construction projects that the Company ordered the subcontractor.
As a result of the kickback fraud, damages incurred by the Company for the period from the fiscal year ended March 31,
2015 to the fiscal year ended March 31, 2023 amounted to approximately 173 million yen in total. The occurrence of such an
incident is truly regrettable, and we deeply apologize to our shareholders and all other concerned parties for any
inconveniences this may have caused.

Cause analysis and recurrence prevention measures
This fraudulent act was committed in collusion by our employees and a business partner, which is difficult to detect throughour internal control system. Major causes of this are a lack of compliance awareness and education, and ineffective
governance and risk management processes in some divisions.
We take this situation very seriously, and have formulated multiple measures to prevent recurrence, which include raisingcompliance awareness and ensuring a thorough understanding of compliance within the company and at our business
partners, and to improve workflow. We will do our utmost to restore our stakeholders’ trust through the implementation ofthese recurrence prevention measures.

Impact on our business performance
The impact of this misconduct on our business performance for the period ended March 2023 is limited.

© 2023 DAI-DAN Co.,Ltd.

4

Full-Year Financial Results for
the Period Ended March 2023

Consolidated
Performance
Summary5

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

Period ended
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

183,668

206,337

22,66912.3%

Net sales of completed construction
contracts

162,929

185,961

23,032

14.1%

20,723

22,624

1,900

9.2%

12.7%

12.2%

-0.6p

–

7,584

8,428

844

11.1%

4.7%

4.5%

-0.1p

–

8,095

9,288

1,193

14.7%

5.0%

5.0%

0.0p

–

5,778

6,626

848

14.7%

3.5%

3.6%

0.0p

–

Earnings per share (EPS)

270.16 yen

309.56 yen

39.40 yen

14.6%

Price earnings ratio (PER)

7.8 times
7.6%
6.0%

7.7 times
8.3%
6.5%

-0.1 times
0.7p
0.5p

–
–
–

Gross profit on completed construction
contracts
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 (%)

Return on equity (ROE)
Return on assets (ROA)

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 andindustrial facilities against the backdrop of corporations’ increasing demand for capital investment.
 Due to soaring prices of materials and equipment, the gross profit margin of completed construction contracts declined. Uncompleted construction
contracts, however, carried over from the previous period and the increase in construction contract orders received during the current period
pushed up net sales of completed contracts, leading gross profit on completed construction contracts to increase accordingly.
 As a result of the above, both sales and profits increased.
© 2023 DAI-DAN Co.,Ltd.

6

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

2,930

349
Increase Decrease(1,378)(1,057)

7,584

Results of period ended
March 2022

Increase in value ofwork done

Foreign exchange effects
due to the yen’s depreciation

Decrease in gross profit
margin of completed
construction contracts

Due to an increase in SG&A
expenses and other factors

8,428

Results of period ended
March 2023

 The increase in value of work done is attributable to considerable progress on large-scale construction projects such as industrial
facilities, airports, and medical facilities.
 Japanese currency began depreciating rapidly at the end of the previous period and remains flat, 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, high prices of materials and equipment pushed down the gross profit
margin of completed construction contracts.
© 2023 DAI-DAN Co.,Ltd.

7

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

Period ended
March 2022

Electrical installations
Air conditioning
and plumbing
installations

Air conditioning installations
Plumbing installations

Subtotal
Total

Net sales(completed)

Electrical installations
Air conditioning
and plumbing
installations

Air conditioning installations
Plumbing installations

Subtotal

Net sales(uncompleted)

Total
Electrical installations
Air conditioning
and plumbing
installations

Air conditioning installations
Plumbing installations

Subtotal
Total

27,254
117,966
38,447
156,414
183,668
25,676
98,27038,982
137,253
162,929
23,462
105,634
34,685140,319
163,782

Period ended
March 2023

28,741
133,219
44,377
177,596
206,337
32,879112,452
40,630153,082
185,961
19,324
126,401
38,431
164,833
184,158

Increase (Decrease)

1,487
15,252
5,929
21,182
22,6697,202
14,182
1,647
15,82923,032(4,137)
20,767
3,746
24,513
20,375

Change rate

5.5%
12.9%
15.4%
13.5%
12.3%
28.1%
14.4%
4.2%
11.5%
14.1%
-17.6%
19.7%
10.8%
17.5%
12.4%

 Orders received posted an increase in both electrical installations and air conditioning and plumbing installations thanks to orders mainly
for factories, data centers, and heat source construction works for overseas resort facilities.
 Net sales (completed) increased due to progress on large-scale construction projects such as factories, data centers, and redevelopment
projects.
 Net sales (uncompleted) increased significantly as uncompleted construction contracts carried over from the previous period andconstruction 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.
© 2023 DAI-DAN Co.,Ltd.

8

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

Period ended
March 2023

Increase(Decrease)

Major factors behind increase/decrease andannotation items

Change rate

Net assets

77,24282,424

5,182

6.7%

Recording of retained earnings and other factors

Total assets

139,099

148,544

9,444

6.8%

Increase in cash and cash equivalents, acquisition ofshares of subsidiaries and affiliates, and other factors

3,603.11 yen 3,841.33 yen 238.22 yen

6.6%

As per the increase in Net assets stated above

Book value per share (BPS)

Price book-value ratio (PBR)

Equity capital ratio

0.58 times

0.62 times

–

–

55.4%

55.4%

-0.0p

–

(Reference) Closing stock price as of Mar. 31, 2022:
2,099 yen
Closing stock price as of Mar. 31, 2023:
2,369 yen

Overview of consolidated management indicators, etc. (cash flows)(Millions of yen)
Period ended
March 2022

Period ended
March 2023

Increase(Decrease)

Major factors behind increase/decrease andannotation items

Change rate

Cash flows from operating
activities(11,718)

15,941

27,659–Trade receivables were collected at a good pace.

Cash flows from investing
activities(873)(4,729)(3,855)–Acquisition of shares of subsidiaries and affiliates

Cash flows from financing
activities(3,214)(2,218)995–

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(15,710)

9,310

25,020–Cash and cash equivalents
at end of year

16,03725,348

9,310

58.1%

© 2023 DAI-DAN Co.,Ltd.

9

Consolidated Performance Summary
Breakdown of cash flows (Trends in period-end balance of cash and cash equivalents)
15,941
Operating CF(Millions of yen)

Increase Decrease

317
Translationdifferences(4,729)Investing CF(2,218)Financing CF

Period-end
cash and cash
equivalents
16,037

Period ended
March 2022

Period-end
cash and cash
equivalents
25,348Period ended
March 2023

 Increases in Operating CF (collection of trade receivables related to large projects recorded in the previous period at a good pace) and translationdifferences (an effect of the yen’s depreciation) exceeded decreases in Investing CF (acquisition of shares of subsidiaries and affiliates) 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.

10

Full-Year Financial Results for
the Period Ended March 2023

Full-Year Financial
Closing Highlights
1

Status of construction orders received
Renovations, direct orders and public works(Millions of yen)
Period ended March 2022
First half year

Second halfyear49,32639,898

Ratio of renovations (%)

45.9%

Mid-to-large renovations
Small-scale renovations

Period ended March 2023

Year-on-year changeFirst half year

Second halfyear

89,224

49,121

34,56983,691(5,533)

-6.2%

52.3%

48.6%

39.3%

42.5%

40.6%

-8.0p

–

33,014

21,591

54,60523,57815,44039,018(15,586)-28.5%

16,312

18,307

34,61925,543

19,12944,673

10,05329.0%

58,09636,346

94,44375,84446,801

122,646

28,203

29.9%

Total orders received

107,423

76,245

183,668

124,966

81,371

206,337

22,66912.3%

Of which, direct orders

50,52436,46086,98555,333

34,95990,293

3,308

3.8%

47.0%

47.8%

47.4%

44.3%

43.0%

43.8%

-3.6p

–

21,127

10,27531,403

12,381

7,449

19,830(11,572)-36.9%

19.7%

13.5%

17.1%

9.9%

9.2%

9.6%

-7.5p

–

Renovations

General construction work

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

Full year

Full year

Increase(Decrease)

Change rate Renovations decreased due to a reactionary drop following large-scale projects received in the previous period, although small-scale
projects posted an increase.
 General construction work increased thanks to orders received for redevelopment projects and industrial facilities in Japan, and heatsource construction work for overseas resort facilities.
 Direct orders increased thanks to the above-mentioned industrial facility and overseas construction works.
 Public works decreased due to a reactionary drop following large-scale projects received in the previous period.

© 2023 DAI-DAN Co.,Ltd.

12

Status of construction orders received
Industrial facilities(Millions of yen)
Period ended March 2022
First half year
Total industrial
facilities

Second half
year

Period ended March 2023
Full year

First half year

Second halfyear

Year-on-year change
Full year

Increase(Decrease)

Change rate

37,09037,54374,63353,74437,436

91,181

16,547

22.2%(Share of totalorders: %)

34.5%

49.2%

40.6%

43.0%

46.0%

44.2%

3.6p

–

Total orders received

107,423

76,245

183,668

124,966

81,371

206,337

22,66912.3%* 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)

50.0%

100,000

12,09980,00060,00010,83040,00053,206

55,69554,820Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

20,0000© 2023 DAI-DAN Co.,Ltd.

12,02362,611

40.0%
30.0%

79,082

20.0%
10.0%

Period ended
March 2022

Period ended
March 2023

0.0%

 Both orders received and industrial facilities’
share of total orders reached record highlevels.
 With progress in labor-saving anddigitalization, investment in DX-related
construction, such as data centers, has beensteady, and multiple orders were received
for large-scale projects.
 Going forward, we will continue toproactively work on large-scale industrial
facility projects that contribute to national
policies, such as “semiconductor
manufacturing infrastructure development”
and “domestic vaccine production.”

13

Status of construction orders received
Overseas operations
 Singapore Branch, DAI-DAN INTERNATIONAL ASIA PTE. LTD. (Singapore), DAI-DAN (THAILAND) CO., LTD., DAI-DAN (VIETNAM)
CO., LTD. (non-consolidated), and DAI-DAN Taiwan Co., Ltd. (non-consolidated) are the bases of our overseas operations.
 On January 26, 2023, the Board of Directors resolved to conclude a share transfer agreement with Presico Engineering Pte. Ltd. andmake it an equity method applied affiliate, and on February 28, 2023, we completed the acquisition. We aim to expand our business andincrease corporate value through synergies with Presico’s track record in the Singapore equipment construction market, its technologicalcapabilities, and its business areas.
(Millions of yen)
Period ended March 2022

Period ended March 2023

First half year

Second halfyearFirst half year

Second half
year

6,449

4,937

11,386

13,486

6,904

20,390

9,004

79.1%

6.0%

6.5%

6.2%

10.8%

8.5%

9.9%

3.7p

–

107,423

76,245

183,668

124,966

81,371

206,337

22,669

12.3%

Total overseas orders
received (consolidated)(Share of total orders: %)Total orders received

Full year

Trends in overseas construction orders received(Consolidated)

SINGAPORE BRANCHDAI-DAN INTERNATIONAL ASIA(SINGAPORE)

DAI-DAN (THAILAND)

Overseas share of total orders(Millions of yen)

20,0002,553

15,000

5,570

10,000

1,250

889

1,228

5,000

8,959

9,369

8,511

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

0

© 2023 DAI-DAN Co.,Ltd.

238

10.0%

5.0%

11,14912,268Period ended
March 2022

Period ended
March 2023

Year-on-year change
Full year

Increase(Decrease)

Change rate During the current period, orders werereceived for heat source construction
works for large-scale resort facilities in
Singapore and total overseas orders
increased compared to a year earlier.
 Thailand also saw a significant year-onyear increase resulting mainly fromorders received for large plants.
 As a result of the above, we managed toreceive the largest amount of orders
and highest share in the last five years.

0.0%

14

Status of completed construction contracts(Millions of yen)
Period ended March 2022
Composition
ratio

Monetary amount
Total net sales of completed
construction contracts

Period ended March 2023
Monetary amountYear-on-year change

Composition
ratio

Monetary amount

Change rate

162,929100.0%

185,961

100.0%

23,03214.1%

85,18352.3%

84,285

45.3%

(897)

-1.1%

(Industrial facilities)

69,62942.7%

75,874

40.8%

6,244

9.0%

(Overseas operations)

10,414

6.4%

17,233

9.3%

6,819

65.5%

Of which, (Renovations)* 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

200,000
175,000
150,000
125,000
100,000
75,00050,00025,0000

Period ended
March 2019

Renovations© 2023 DAI-DAN Co.,Ltd.

Industrial facilities

Period ended
March 2020

Period ended
March 2021

Overseas operations

Period ended
March 2022

 Renovations remained almost
unchanged.
 The increase in industrial facilities andoverseas operations is largely a resultof progress in large-scale construction
projects such as airports, factories, anddata centers. In particular, net sales inoverseas operations have increased
significantly.
 In addition to the above, large-scaleconstruction projects such as medical
facilities made progress, causing net
sales of completed construction
contracts to grow for the current period.

Period ended
March 2023

Total net sales of completed construction contracts

15

Status of uncompleted construction contracts(Millions of yen)
Period ended March 2022
Monetary amount

Period ended March 2023

Composition ratio

Monetary amountYear-on-year change

Composition ratio

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

183,668–

206,337–

22,66912.3%

Net sales of completed
construction contracts

162,929–

185,961–

23,032

14.1%

Net sales of uncompleted
construction contracts

163,782

100.0%

184,158

100.0%

20,375

12.4%

36,89645,26012,839

22.5%
27.6%
7.8%

36,30260,567
15,996

19.7%
32.9%
8.7%

(593)
15,306
3,157

-1.6%
33.8%
24.6%

102,837–

123,323–

20,486

19.9%

Of which, (Renovations)(Industrial facilities)(Overseas operations)

Of which, those to becompleted in the next fiscal
year* 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

200,000
150,000
100,000
50,0000

Period ended
March 2019

Renovations© 2023 DAI-DAN Co.,Ltd.

Industrial facilities

Period ended
March 2020

Period ended
March 2021

Overseas operations

Period ended
March 2022

Period ended
March 2023

 The highest net sales of uncompleted
construction contracts in the last five
years were posted in the current period,
meaning a sufficient volume of
construction works has been secured.
 A sufficient volume of unfinishedconstruction projects has been secured,
especially for large-scale projects suchas medical facilities, redevelopment
projects, and industrial facilities, andthese will contribute to the value ofwork done for the next period andbeyond.

Total net sales of uncompleted construction contracts

16

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 ended March
2023

Increase(Decrease)

April–June

44,69866,71222,014

49.3%

July–September

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

October–December

42,69540,617(2,078)-4.9%January–March

33,55040,754

7,204

21.5%

April–March

183,668

206,337

22,66912.3%

April–June

27,25735,342

8,085

29.7%

July–September

38,52347,348

8,825

22.9%

October–December

42,47747,398

4,921

11.6%

January–March

54,67255,873

1,201

2.2%

April–March

162,929

185,961

23,032

14.1%

April–June

528

818

289

54.7%

July–September

2,240

2,832

592

26.4%

October–December

1,292

1,521

229

17.7%

January–March

3,524

3,257

(266)

-7.5%

April–March

7,584

8,428

844

11.1%

Change rate Following a large increase during the April-June period, net sales of construction orders received decreased during the July-December
period, in line with our order-taking activities that take into consideration installer capacity, but posted an increase on a full-year basis.
 Net sales of completed construction contracts increased for the full year as a result of steady progress in construction work carried overfrom the previous year and orders received during the current year.
 Operating profit decreased during the January-March period, but increased on a full-year basis as a result of higher net sales ofcompleted construction contracts.
© 2023 DAI-DAN Co.,Ltd.

17

Full-Year Financial Results for
the Period Ended March 2023

Full-Year Earnings
Forecast for the
Period Ending
March 202418

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

Period ending March
2024

Full year

Current forecast[Full year]

Year-on-year change, full year
Increase (Decrease)

Change rate

Net sales of construction contract
orders received

206,337

210,000

3,663

1.8%

Net sales of completed construction
contracts

185,961

200,000

14,0397.5%

22,624

24,400

1,776

7.8%

12.2%

12.2%

0.0p

–

8,428

8,500

72

0.8%

4.5%

4.3%

-0.3p

–

9,288

8,900

(388)

-4.2%

5.0%

4.5%

-0.5p

–

6,626

6,500

(126)

-1.9%

3.6%

3.3%

-0.3p

–

8.3%

7.7%

-0.6p

–

Gross profit on completed
construction contracts
Gross profit margin of completed
construction contracts (%)
Operating profit
Operating profit margin (%)
Ordinary profit
Ordinary profit margin (%)
Net profit attributable to owners ofparentNet profit margin (%)
Return on equity (ROE)

Preconditions for earnings forecast
 In response to the extended top-line targets in the Stage 2030 Phase 1 “Preparation Stage” of the Mid-Term Management Plan, both net
sales of construction contract orders received and net sales of completed construction contracts are expected to increase.
 The profit margin on completed construction contracts is expected to remain generally unchanged due largely to high prices of materials
and equipment and labor costs, although profit improvement is expected in some unfinished construction projects.
 Although gross profit on completed construction contracts is expected to increase, operating income will record only a minor increase due
to an increase in expenses resulting from DX investments associated with the promotion of workstyle reforms and ongoing increases inrecruitment.
© 2023 DAI-DAN Co.,Ltd.

19

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.
 Aiming to further promote profit return to shareholders, we will adopt a new dividend policy of striving for a dividend payout ratioof 35% or more (previously 30%) starting from the period ending March 2024.

Dividend status
Full-year dividend
End of second
quarter

End of period

Total

Total dividend(Total sum)

Dividend on equity
ratio(Consolidated)

Dividend ratio(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

55.00

55.00

110.00

–

36.2%

–

(Forecast)

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.

20

Full-Year Financial Results for
the Period Ended March 2023

Progress Status of
Mid-Term
Management Plan
“Preparation Stage” FY2021–2023
21

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.

Business strategies

Expand corebusinesses

Reinforce overseas
businessStrengthen
technologicalcapabilities

Find new businesses© 2023 DAI-DAN Co.,Ltd.

Strategy of“Preparation Stage”
FY2021–2023• Increase industrial installations• Strengthen businesses of recurring
revenue model• Develop a foundation to control
overseas operations• Develop new bases

Implementation status of measures•

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

•

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

•

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

•

Amid the pandemic, remote sales activities havebeen strengthened in Vietnam, where we started
operation in 2020.

• Strengthen on-site capabilities• Expand ZEB & IoT businesses• Contribute to commercialization ofregenerative medicine

Details are provided in “Our Sustainability
Initiatives.”• Promote businesses that reduce
environmental load
22

Progress of the Mid-Term Management Plan
<Orders received / Net sales / Operating profit> Promoting measures to achieve the targets of the Mid-Term Management Plan “Preparation Stage”
 By strengthening our ability to respond to construction projects, which are growing in size, and obtaining
more orders in focused areas such as industrial facilities and overseas operations, we expect to steadily
achieve our sales target of 200 billion yen for the period ending March 2024, the final year of the plan.
 Operating profit recovery has been delayed because of increased workstyle reform expenses andinvestments for productivity improvement, in addition to the adverse effects of the pandemic and highmaterial and equipment costs due to inflation.
We forecast operating profit of 8.5 billion yen against the target of 10 billion yen for the period ending
March 2024.
Net sales up 26% from the period ended March 2021 (planned)

Earnings forecast for the Mid-Term Management Plan
<Mid-Term Management Plan Period>

Orders received / Net sales

250,000
200,000

176,526
157,712

183,668
162,929

12,50010,0008,754(8,500)

8,428

7,584

7,500
5,000

50,00002,500Period ended
March 2021

Period ended
March 2022

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

15,000(210,000)
206,337(200,000)
185,961

150,000
100,000(Millions of yen)

Operating profit(Millions of yen)

Period ended
March 2023

Net sales

Period ending
March 2024

0

Operating profit
23

Workstyle reform and productivity improvement
Development of off-site bases

Strengthening of support department

Developed off-site bases, our prefabricated processing plants, inthe Tokyo and Osaka area.
• Reduction of on-site man-hours• Shortening of on-site work process• Leveling of on-site work and improvement of construction quality
Store side support department

Participation at worksite

We have newly established a “Support Department” and haveestablished a system to provide multifaceted support such asprocess management and drawing creation remotely from theoffice to the construction site using web conferencing, BIM, andother means.

Construction Visualizer 4D

FY2022

FY2023339 cases

432 cases (out of 788 cases)

Full-scale BIM promotion

3D-modeled current situation
recordCreating drawings is easy
even for repaired properties
without existing drawings,
and this is used forconstruction planning, suchas loading and unloading.

Utilization of BIM is being promoted as an important measure to
improve design and construction quality and increase operation
efficiency.
We will develop an operating
environment for the de facto
standard BIM software, aiming for
full-scale operation.

FY2022

FY2023

FY2022

FY202314 cases

14 cases

52 cases

93 cases© 2023 DAI-DAN Co.,Ltd.

24

Key measures for the Mid-Term Management Plan
<Increase industrial installations> Data centers show a marked increase in orders thanks to the expansion of orders for semiconductor
manufacturing facilities and automotive battery factories in Japan, as well as advances in big data and AI.
 Against the backdrop of vigorous capital investment related to industrial facilities, we will increase thepercentage of industrial facility-related orders received, contributing to an increase in total orders received.
 As a measure to strengthen design and construction that require advanced technologies, we will enhance theEngineering Division, which specializes in industrial facilities.

Orders received up 45% from the period ended March 2021 (planned)
Trends in industrial facility-related orders received<Mid-Term Management Plan Period>

100,000

91,18190,000Orders received

80,00070,00065,649(95,000)

74,63360,00050,00040,00030,00020,00010,0000Percentage ofindustrial f acilities

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

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

37.2%

40.6%

44.2%

Data centers / Logistics facilities / Labs

Period ending
March 2024

45.2%

Small-scale construction work
25

Key measures for the Mid-Term Management Plan
<Reinforce overseas operations> We are developing our business mainly in Singapore and Thailand, with local subsidiaries established in
Vietnam in October 2020 and in Taiwan in April 2022 to expand business overseas (Southeast Asia).
 We concluded a share transfer agreement with Presico Engineering Pte. Ltd., which operates equipment
construction business mainly in Singapore, and made it an equity method applied affiliate.
 Now that impact due to Covid-19 has lessened to a degree, large-scale orders received in Singapore,strengthened order-receiving activities in Thailand, new orders in Vietnam, and similar factors resulted in asignificant increase in orders year-on-year.

Orders received up 84% from the period ended March 2021 (planned)

Orders received /Completed construction contracts(Millions of yen)

Trends in overseas operations<Mid-Term Management Plan Period>

25,00020,39020,00017,23315,00010,00011,386
10,414

9,738
6,423

5,000
0

Period ended
March 2021

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

(18,000)(17,000)

Period ended
March 2022

Period ended
March 2023

Period ending
March 2024

Completed construction contracts
26

Full-Year Financial Results for
the Period Ended March 2023

Our Sustainability
Initiatives

27

Progress of materiality
Aiming for a CSV business that creates new businesses focusing on social issues, we reporton promotion items in the global environment area and life science area, which have a highaffinity with our technology.
Our materiality items

Specific measures

Contribute to a decarbonized society

Expansion of ZEB-related
construction work

Keep up with changes in businessenvironment through DX

Adoption of ICT utilization
technology at construction sites

Realize a high-quality medical
environment

Initiatives in the regenerative
medicine field

Achieve innovation and improve
productivity through research andfostering of human resources

Increase in intellectual rights
possession

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

Improvement in employee
satisfaction

Partnership with subcontractors andsuppliers© 2023 DAI-DAN Co.,Ltd.

SDGs

Improvement in retention rate ofMeisters
28

Contribution to a decarbonized society
 Promotion of decarbonization by converting

our own buildings to ZEB• Completed ZEB conversion at 4 branches

Currently, Niigata Branch is being converted to ZEB.
 Hokkaido Branch 
Received the Encouragement Prize,
Hokkaido Energy Saving and New
Energy Award and many otherawards Hokkuriku Branch 
Received the Ishikawa
Landscape Award and manyother awards• Our know-how gained through rebuilding is utilized indesign and construction.
• For ZEB, continuous optimization after construction isimportant.
→ “REMOVIS,” a cloud-based automatic control systemthat enables

remote management andtuning of equipment has been developed and ZEB orders received status

8• FY2022:
cases(FY2021: 8 cases, FY2023 target: 8 cases)• Under the ZEB policy of graduallyintensifying energy-saving
standards, the ZEB market is expected to
grow from April 2024.

 Hachinohe Nishi Medical Examination
Plaza ZEB Renovation Project ■ REMOVIS orders received status3• FY2022:
cases(FY2021: 1 case, FY2023 target: 4 cases)• Number of inquiries increases with the growing
need for more efficient facility management.

is in operation.

© 2023 DAI-DAN Co.,Ltd.

29

Developing new revenue sources■ Air Filter Regeneration
business expansion■ Entering the area of• Reuse business leveraging our one-of-a-kind“supercritical CO2 regeneration technology”• Best suited to chemical filters in semiconductor• Our original low-cost, high-quality cell processing facility

Regenerative Medicine

manufacturing facilities• Decarbonization technology that not only contributes towaste reduction but is also expected to reduce

CO2 emissions by approx. 30%• Expand regeneration plant operations and start sales
activities in Taiwan.
Customer (Factory)

Used filters(Performance degraded)

was approved by the Ministry of

Health, Labour and Welfare→ Expansion of equipment and system sales
business• Acquisition of cancer treatment cellmanufacturing technology by way of investment inventure companies→ Development of contract cell manufacturingbusiness• Leveraging strengths in owning both hardware andsoftware to promote development and expansion in bothareas of business

Regenerated filter(Performance recovered)

FY2022 Sales

FY2025 Sales

FY2030 Sales

FY2022 Sales

FY2025 Sales

FY2030 Sales

27 million yen  230 million yen  1,100 million yen 804 million yen  1,510 million yen 5,570 million yen© 2023 DAI-DAN Co.,Ltd.

30

Initiatives toward sustainability Improvement of FTSE (rating agency) ESG scores Promotion of “Dai-Dan Forest Making”

Overall score: 2.7 (2021) ⇒ 3.0 (2022)
 Selected as a component of the FTSE Blossom Japan
Relative Index.

Forest Managementagreement concluded in(as of April 30, 2023):• Hokkaido• Miyagi• Saitama• Mie• Ishikawa• Shiga• Okayama• Ehime• Kumamoto

 Introduction of green electricity to the head office,branch offices, etc.

 Company-wide project to reduce overtime work
Promotion of the <SMILE 2024 Project>

Responding to the upper limit of overtime work from April 2024
• Permeation of an industry-wide system of eight days off per four weeks (twodays off per week) to achieve work-life balance• Review of operations, enhancement of support ⇒ Establishment of Support
Department

 Employee satisfaction and treatment• Increase in starting salary, extension of retirement age to 65• Continuous improvements in treatment© 2023 DAI-DAN Co.,Ltd.

31

Reference:
DATA FILE(Full Year)32

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

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

25,69030,88527,23627,25428,741

Air conditioning
installations

93,289102,515

104,878

117,966

133,219

Plumbing
installations

39,55336,72044,41038,44744,377

Subtotal

132,843

139,236

149,289

156,414

177,596

158,533

170,121

176,526

183,668

206,337

Electrical installationsAir
conditioning
and plumbing
installations

Period ended
March 2020

Total

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

240,000

200,000

28,741160,000
25,69030,885120,000

80,00027,23627,254

149,289

156,414(104,878)(117,966)

132,843

139,236(93,289)(102,515)(39,553)(36,720)(44,410)(38,447)

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Electrical installations

177,596

Air conditioning andplumbing installations
Of which,( Air conditioning installations)(133,219)(

Plumbing installations)

40,0000© 2023 DAI-DAN Co.,Ltd.

(44,377)
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)

60.0%

250,000

50.0%

200,000

40.0%
150,000
30.0%
100,000
20.0%
50,000083,691

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

Orders received

Percentae of renovations

85,00177,754

Period ended
March 2019

Period ended
March 2020
Of which, renovations© 2023 DAI-DAN Co.,Ltd.

89,224

82,109

10.0%
0.0%

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

38.6%

39.1%

40.0%

41.2%

36.4%

Central Japan Division

18.1%

18.3%

17.5%

16.8%

16.1%

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
100.0%

80.0%

38.6%

39.1%

40.0%

41.2%

60.0%
18.1%

18.3%

17.5%

16.8%

36.4%

16.1%

0.0%

© 2023 DAI-DAN Co.,Ltd.

Central Japan Division
West Japan Division

40.0%

20.0%

East Japan DivisionInternational Division

36.9%

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

37.6%

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 2022

Period ended
March 2023

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

92,939102,432

96,526

98,270112,452

Plumbing
installations

38,232

39,95636,32038,982

40,630Sub total

131,171

142,388

132,846

137,253

153,082

155,565

169,229

157,712

162,929

185,961

Total(Millions of yen)

Period ended
March 2021

24,393

Electrical installationsAir
conditioning
and plumbing
installations

Period ended
March 2020

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

32,879160,000

26,84024,393120,000

80,000131,171(92,939)

142,388(102,432)

24,86525,676

132,846

137,253(96,526)(98,270)

153,082(112,452)

Electrical installations
Air conditioning andplumbing installations
Of which,( Air conditioning installations)(

Plumbing installations)

40,0000© 2023 DAI-DAN Co.,Ltd.

(38,232)(39,956)(36,320)

Period ended
March 2019

Period ended
March 2020

Period ended
March 2021

(38,982)
Period ended
March 2022

(40,630)
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

37.1%

45.3%

41.3%

37.5%

38.5%

Central Japan Division

18.0%

15.8%

16.9%

17.2%

17.4%

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 construction contracts by division
100.0%

80.0%

37.1%

45.3%

41.3%

37.5%

38.5%

East Japan Division

60.0%

Central Japan Division

18.0%
15.8%

16.9%

17.2%

17.4%

West Japan DivisionInternational Division

40.0%

20.0%

0.0%

© 2023 DAI-DAN Co.,Ltd.

40.2%

38.8%

34.8%

4.1%

6.4%

9.3%

Period ended
March 2021

Period ended
March 2022

Period ended
March 2023

34.9%

37.7%

4.7%

4.0%

Period ended
March 2019

Period ended
March 202037

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

(Millions of yen)

10,000
8,000
6,000
4,000
2,000
0

Period
ended
March
2019

Ordinary profit

Operating profit

Period
ended
March
2020

Period
ended
March
2021

(Millions of yen)

Period
ended
March
2022

Period
ended
March
2023

10,000
8,000
6,000
4,000
2,000
0

PeriodendingMarch
2024(Forecast)

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2023

PeriodendingMarch
2024(Forecast)

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

© 2023 DAI-DAN Co.,Ltd.

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

38

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.

39