Financial Briefing
Material for the Period
Ended March 2022
May 11, 2022

Contents
Consolidated Performance Summary
Full-Year Financial Closing Highlights
Full-Year Earnings Forecast for the
Period Ending March 2023
Progress Status of Mid-Term
Management Plan
Our Sustainability Initiatives
Reference: DATA FILE (Full Year)2

Full-Year Financial Results for
the Period Ended March 2022

Consolidated
Performance
Summary3

Consolidated Performance Summary
Overview of consolidated management indicators, etc. (operating results)(Millions of yen)
Period ended
March 2021

Period ended
March 2022

Increase(Decrease)

Major factors behind increase/decrease andannotation items

Change rate

Net sales of uncompleted construction
contracts at beginning of period

124,228

143,043

18,81415.1%

Net sales of construction contract orders
received

176,526

183,668

7,141

4.0% construction contracts

Net sales of completed construction
contracts

157,712

162,9295,217

3.3% construction work due primarily to increased orders

Gross profit on completed construction
contracts

21,521

20,723

(798)

13.6%

12.7%

-0.9p

8,754

7,584

(1,169)

5.6%

4.7%

-0.9p

9,262

8,095

(1,167)

Ordinary profit margin (%)

5.9%

5.0%

-0.9p

Net profit attributable to owners of parent

6,318

5,778

(540)

Net profit margin (%)

4.0%

3.5%

-0.5p

291.96 yen

270.16 yen(21.80) yen

Gross profit margin of completed
construction contracts (%)
Operating profit
Operating profit margin (%)
Ordinary profit

Earnings per share (EPS)

Increase in orders received mainly for large-scale
The increase is attributable to the progress ofreceived in the 4th quarter.

-3.7%-13.4% Decrease in gross profit on completed construction
contracts-12.6%

Decrease in operating profit

-8.6%
-7.5%

10.1 times

7.8 times-2.3 times–

Return on equity (ROE)

8.9％

7.6%

-1.3p

–

Return on assets (ROA)

7.3％

6.0%

-1.3p

–

Price earnings ratio (PER)

Decrease in gross profit margin of completed
construction contracts(Reference) Closing stock price as of Mar. 31, 2021:
2,963 yen
Closing stock price as of Mar. 31, 2022:
2,099 yen

Business environment
 Net sales of construction contract orders received decreased for renovations as a whole in the previous fiscal year due to the effects of theCovid-19 pandemic. In the current fiscal year, large-scale construction orders remained at a high level mainly for medical facilities, Tokyo
metropolitan area redevelopment projects, and industrial facilities. Additionally, orders for mid- to large-scale renovations were favorable
and net sales of completed construction contracts increased as well.
 Please see the next page for the operating profit breakdown.
© 2022 DAI-DAN Co., Ltd.

4

Consolidated Performance Summary
Breakdown of decrease in consolidated operating profit(Millions of yen)300

(1,563)
Increase Decrease

960
8,754

(290)
(577)
7,584

March 2021
ResultDecrease in value ofwork done for general
construction contracts

Increase in value ofwork done forrenovations

Foreign exchange
effects due to yen
depreciation

Decrease in gross profit
margin of completed
construction contracts

Due to an increase in
SG&A expenses andother factors

March 2022
Result The decrease in profit from general construction is attributable to decreased net sales of completed construction contracts of large-scaleconstruction projects compared to the previous year. Meanwhile, the increase in profit from renovations is attributable to increased net sales ofcompleted construction contracts especially for mid- to large-scale factory projects.
 The profit margin of completed construction contracts decreased due mainly to intensifying competition for order acquisition and soaring prices
of materials and equipment. Additionally, in unfinished construction work, there were only a small number of projects that were to be completed
during the current year, which did not improve profit very much just before completion. Additional construction work also decreased.
© 2022 DAI-DAN Co., Ltd.

5

Consolidated Performance Summary
Trends in consolidated net sales by construction type

Orders received(Millions of yen)

Net sales(completed)

Major factors behind increase/decrease andannotation items

0.1%

104,878

117,966

13,087

12.5%

Increase in orders received for office, hospital, andindustrial facilities

Plumbing
installations

44,41038,447(5,963)-13.4%A series of air conditioning installation orders werereceived for large-scale construction work.

Sub total

149,289
176,526
24,865

156,414
183,668
25,676

7,124
7,141
810

4.8%
4.0%
3.3%

See Pages 10-12 for the factors behind the increase.

Air conditioning
installations

96,526

98,270

1,744

1.8%

Plumbing
installations

36,32038,982

2,662

7.3%

Sub total

132,846
157,71221,884

137,253
162,929
23,462

4,406
5,217
1,577

3.3%
3.3%
7.2%

Air conditioning
installations

85,938105,634

19,696

22.9%

Plumbing
installations

35,22034,685

(535)

-1.5%

Sub total

121,158

140,319

19,16115.8%

143,043

163,782

20,738

14.5%

Electrical installations
Net sales(uncompleted)

Change rate

17

Total

Total

Increase(Decrease)27,254

Electrical installationsAir
conditioning
and plumbing
installations

March 2022

27,236

Total

Air
conditioning
and plumbing
installations

Period ended

March 2021

Air conditioning
installations

Electrical installationsAir
conditioning
and plumbing
installations

Period ended

See Page 13 for the factors behind the increase.

Increased net sales of uncompleted construction
contracts as at the end of FY2021, and an increase inorders received for FY2022

 Both orders received and net sales of completed construction contracts increased. In particular, orders received exceeded 180 billion yen
for the first time in 24 years. (See Page 9 onward for details.)
 Compared to the previous year, the increase in orders received exceeded that of net sales (completed). Meanwhile, net sales(uncompleted) recorded a significant increase.
 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 2021

Period ended
March 2022

Increase(Decrease)

Change rate

Major factors behind increase/decrease andannotation items

Net assets

74,837

77,242

2,404

3.2%

Recording of retained earnings and other reasons

Total assets

132,210139,099

6,889

5.2%

Increase in notes receivable, accounts receivablefrom completed construction contracts and other3,491.84 yen

3,603.11 yen

111.27 yen

3.2%

As per the increase in Net assets stated above

Book value per share (BPS)

Price book-value ratio (PBR)

Equity capital ratio

0.85 times

0.58 times

–

–

56.4%

55.4%

-1.0p

–

(Reference) Closing stock price as of Mar. 31, 2021:
2,963 yen
Closing stock price as of Mar. 31, 2021:
2,099 yen

Overview of consolidated management indicators, etc. (cash flows)(Millions of yen)
Period ended
March 2021

Period ended
March 2022

Increase(Decrease)

Change rate

Major factors behind increase/decrease andannotation items

Cash flows from operating activities

14,241(11,718)(25,960)–

Net profit decreased year-on-year, and factors forfund decrease, such as an increase in tradereceivables, exceeded those for fund increase.

Cash flows from investing activities

(718)

(873)

(154)

–

Reconstruction of Hokkaido Branch and Hokuriku
BranchInvestment in new businesses

Cash flows from financing activities(3,487)(3,214)272–

Dividend payment

Cash and cash equivalents at
beginning of period

21,616

31,747

10,131

46.9%

Increase/decrease in cash and cash
equivalents

10,131(15,710)(25,841)–

Cash and cash equivalents at end ofyear

31,747

16,037(15,710)-49.5%© 2022 DAI-DAN Co., Ltd.

7

Consolidated Performance Summary
Cash flow comparison with the previous period(Trends in period-end balance of cash and cash equivalents)(Millions of yen)

(718)
InvestingCF

14,241
OperatingCF

Increase Decrease(3,487)
FinancingCF
Period-end
cash andcash
equivalents
31,747

Period-end
cash andcash
equivalents
31,747

Period-end
cash andcash
equivalents
21,616

Period ended
March 2020

Period ended
March 2021

Period ended
March 2021

(11,718)
OperatingCF(873)
InvestingCF(3,214)
FinancingCF

Period-end
cash andcash
equivalents
16,037

Period ended
March 2022

 There were few projects that were to be completed and delivered among unfinished construction work for the current fiscal year. Payment
was made before completion, resulting in negative operating cash flows.
 We have signed commitment credit line agreements with three banks for efficient working capital financing.
© 2022 DAI-DAN Co., Ltd.

8

Full-Year Financial Results for
the Period Ended March 2022

Full-Year Financial
Closing Highlights
9Status of construction orders received
Renovations, direct orders and public works(Millions of yen)
Period ended March 2021
First halfyear

Secondhalf year

39,731

Ratio of renovations(%)

Period ended March 2022

Year-on-year change

Full year

First halfyear

Secondhalf year

Full year

38,02277,75449,32639,89889,224

46.9%

41.4%

44.0%

45.9%

52.3%

48.6%

Mid-to-large
renovations

23,805

21,83045,63533,014

21,591

Small-scalerenovations

15,926

16,192

32,11816,312

General construction
work

44,92453,846

98,771

Total orders received

84,65691,869Of which, directorders30,097

Renovations

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

Increase(Decrease)

Changerate

Major factors behindincrease/decrease andannotation items

11,47014.8%

54,605

8,969

19.7%

18,307

34,619

2,500

7.8%

58,09636,346

94,443(4,328)-4.4%

176,526

107,423

76,245

183,668

7,141

4.0%

38,63968,73650,52436,46086,985

18,24926.5%

Orders for large-scale
hospitals and factories

35.6%

42.1%

38.9%

47.0%

47.8%

47.4%

10,59015,71826,30921,127

10,27531,403

5,093

19.4%

Orders for the abovementioned hospitalprojects

12.5%

17.1%

14.9%

19.7%

13.5%

17.1%

Due mainly to orders formid- to large-scale factory
projects

 Renovations decreased in the previous year due to the effects of the Covid-19 pandemic but increased in the current fiscal year, supported
by strong orders received for mid- to large-scale factory projects.
 Direct orders were received for large-scale hospital and factory projects. Since the large-scale hospital projects were public works, both
direct orders and public works increased remarkably year-on-year.
 For the 5-year transition of renovations, see Page 34.
© 2022 DAI-DAN Co., Ltd.

10

Status of construction orders received
Industrial facilities(Millions of yen)
Period ended March 2021

Total industrial
facilities(Share of totalorders: %)Total orders
received

First halfyear

Secondhalf year

Full year

27,434

38,21565,649

32.4%

41.6%

84,65691,869Period ended March 2022
First halfyear

Year-on-year change

Secondhalf year

Full year

37,09037,54374,633

37.2%

34.5%

49.2%

40.6%

176,526

107,423

76,245

183,668

Increase(Decrease)

Change rate

8,984

13.7%

7,141

4.0%

Major factors behindincrease/decrease
and annotation items

Orders received forlarge-scale factoryand logistics facility
projects* Factories, labs, data centers, and logistics facilities are classified as “industrial facilities.”

Trends in industrial facility orders received on a full-year basis(Millions of yen)

Industrial facilities

Of which, small-scale work

Industrial facilities’ share of total orders

100,000

50.0%

80,00040.0%

12,023
10,83060,00030.0%

40,00020,000 Industrial facility orders reached a record
high since the start of the disclosure of our
financial results in 2015.
 Following the recovery in capital
investment with the growth in demand forsemiconductors and electric commerce,orders received for large-scale factory andlogistics facility projects, in particular,
contributed to the year-on-year increase.

20.0%

50,06953,206

March 2018

March 201955,69554,82062,611
10.0%

0

0.0%
March 2020

March 2021

March 2022

* As a result of reviewing the construction classification from the current period, part of small-scale construction work has been included in “Industrial facilities.”
The previous fiscal year also indicates the value after retrospectively applying the revision of the construction classification.
© 2022 DAI-DAN Co., Ltd.

11

Status of construction orders received
Overseas operations
 Singapore Branch and DAI-DAN (THAILAND) are the pillars of our overseas operation.
 As our new overseas bases, we established DAI-DAN (VIETNAM) CO., LTD. in Vietnam in fiscal 2020, DAI-DAN INTERNATIONAL ASIA
PTE. LTD. in Singapore in fiscal 2021, and DAI-DAN Taiwan Co., Ltd. in fiscal 2022.
(Millions of yen)
Period ended March 2021
First half
year
Total overseas
orders received

Secondhalf year

Year-on-year change

Period ended March 2022

Full year

First halfyear

Secondhalf year

Increase(Decrease)

Full year

5,043

4,695

9,738

6,449

4,937

11,386(Share of totalorders: %)

6.0%

5.1%

5.5%

6.0%

6.5%

6.2%

Total orders received

84,65691,869176,526

107,423

76,245

183,668

Trends in overseas construction orders received on a full-yearbasis
Singapore Branch(Millions of yen)

DAI-DAN (THAILAND)

Overseas share of total orders

12,000

238
1,250

889

1,228

8.0%

6.0%

8,000

4,000

639

8,959

9,369

11,149

4.0%

8,511
2.0%

4,056
0

0.0%
March 2018

© 2022 DAI-DAN Co., Ltd.

March 2019

March 2020

March 2021

March 2022

Change
rate

1,647

16.9%

7,141

4.0%

Major factors behindincrease/decrease andannotation items

Increase in orders
received for overseas
industrial facilities

 In Singapore, movement restriction toprevent the spread of Covid-19 has beenrelaxed since the end of 2021 in line withthe government’s “coexisting with Covid19” policy. Now order receiving activities
and the operation of construction sites are
returning to the pre-pandemic condition. As
a result, net sales of construction contract
orders received posted growth compared
to last year.
 In Thailand, orders received declined
substantially. The large-scale construction
orders received last year were canceled
because the customers had stopped
construction at their convenience.
12

Status of completed construction contracts(Millions of yen)
Period ended March 2021

Period ended March 2022

Composition
ratio

Monetary amount

Monetary amountYear-on-year change

Composition
ratio

Monetary amount

Change rate

Total net sales of completed
construction contracts

157,712100.0%

162,929100.0%

5,217

3.3%

Of which, (Industrial facilities)

66,32742.1%

69,629

42.7%

3,302

5.0%

77,84449.4%

85,183

52.3%

7,338

9.4%

6,423

4.1%

10,414

6.4%

3,990

62.1%

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

Consolidated net sales of completed construction contracts

180,000

150,000

120,000

90,00060,00030,0000March 2018
Overseas operations© 2022 DAI-DAN Co., Ltd.

March 2019

Renovations

March 2020

Industrial facilities

March 2021

March 2022

Total net sales of completed construction contracts

 Looking at net sales of completed construction
contracts for the current fiscal year, overall net
sales of completed construction contracts
increased due primarily to the progress offactory renovation projects.
 Following this, industrial facilities, renovations,and overseas operations posted growth.
 Net sales of completed construction contracts
for industrial facilities reached the highest level
since the start of the disclosure of our financial
results in 2015.
 Net sales of completed construction contracts
for overseas operations exceeded 10 billion
yen for the first time in 14 years.
 Moreover, large-scale airport and medical
facility construction projects have also
contributed to the net sales of completed
construction contracts.
13

Status of uncompleted construction contracts(Millions of yen)
Period ended March 2021
Monetary amount

Period ended March 2022

Composition ratio

Monetary amountYear-on-year change

Composition ratio

Monetary amount

Change rate

Net sales of uncompleted
construction contracts at
beginning of period

124,228–

143,043–

18,81415.1%

Net sales of construction
contract orders received

176,526–

183,668

–

7,141

4.0%

Net sales of completed
construction contracts

157,712–

162,929

–

5,217

3.3%

Net sales of uncompleted
construction contracts

143,043100.0％

163,782

100.0%

20,73814.5%

Of which, (Industrial facilities)

40,25632,854
11,866

28.1％
23.0％
8.3％

45,26036,896
12,839

27.6%
22.5%
7.8%

5,004
4,041
972

12.4%
12.3%
8.2%

91,326–

102,837–

11,511

12.6%(Renovations)(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: industrial facilities, renovations and overseas operations.
(Millions of yen)

Consolidated net sales of uncompleted construction contracts

180,000
150,000
120,000
90,00060,00030,0000March 2018
Overseas operations© 2022 DAI-DAN Co., Ltd.

March 2019

Renovations

March 2020

Industrial facilities

March 2021

March 2022

Total net sales of uncompleted construction contracts

 As for net sales of uncompleted
construction contracts for the current fiscal
year, net sales of construction contract
orders received exceeded net sales ofcompleted construction contracts, postingyear-on-year growth. Construction
contract orders to be completed in thenext fiscal year increased especially andare expected to contribute to the earnings
for the next fiscal year.
 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 work has been secured.
14

Quarterly operating results(Millions of yen)

Net sales of
construction
contract orders
received

Net sales ofcompleted
construction
contracts

Operating profit

Period ended March
2021

Period ended March
2022

Increase(Decrease)

April–June

36,167

44,698

8,531

23.6%

July–September

48,48962,725

14,23629.4%

October–December

37,906

42,695

4,790

12.6%

January–March

53,96533,550(20,415)-37.8%

April–March

176,526

183,668

7,141

4.0%

April–June

34,81627,257(7,559)-21.7％

July–September

37,91838,523605

1.6%

October–December

38,36542,477

4,112

10.7%

January–March

46,61354,672

8,059

17.3%

April–March

157,712

162,929

5,217

3.3%

April–June

2,281

528

(1,752)-76.8%

July–September

2,789

2,240

(549)

-19.7％

October–December

2,135

1,292

(843)

-39.5％

January–March

1,549

3,524

1,975

127.5%

April–March

8,754

7,584

(1,170)-13.4%

Change rate Net sales of construction contract orders received posted an increase on a full year basis, spurred by the increase from April to
December.
 Net sales of completed construction contracts posted an increase on a full year basis as construction work progressed toward the second
half year.
 Operating profit decreased on a full year basis due to the slowdown from April to December.
© 2022 DAI-DAN Co., Ltd.

15

Full-Year Financial Results for
the Period Ended March 2022

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

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

Period ending March
2023

Full year

Current forecast[Full year]

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

Change rate

Net sales of construction contract
orders received

183,668

193,000

9,332

5.1%

Net sales of completed
construction contracts

162,929

175,000

12,071

7.4%

Gross profit on completed
construction contracts

20,72323,000

2,277

11.0%

Gross profit margin of completed
construction contracts (%)

12.7%

13.1%

0.4p

Operating profit

8,500
4.9%
8,700
5.0%

916
0.2p
605
0.0p

12.1%

Ordinary profit margin (%)

7,584
4.7%
8,095
5.0%

Net profit attributable to owners ofparent

5,778

6,000

222

3.8%

Net profit margin (%)

3.5%
7.6%

3.4%
7.6%

-0.1%
0.0p

Operating profit margin (%)
Ordinary profit

Return on equity (ROE)

7.5%

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 gross profit margin of completed construction contracts is expected to rise as serial completion of unfinished construction work will
improve profit.
 With the rise of gross profit margin of completed construction contracts and the increase in net sales of completed construction contracts,
operating profit is expected to increase as well.
 We will achieve our earnings forecast in the second year of the Phase 1 “Preparation Stage” and link it to the final year of Phase 1, or the
fiscal year ending March 2024.
© 2022 DAI-DAN Co., Ltd.

17

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 on equity
ratio(Consolidated)

Dividend 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

45.00

55.00

100.00

–

35.7%

–

(Forecast) 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 so far, 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 next 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.

18

Financial Briefing Material for
the Period Ended March 2022

Progress Status of
Mid-Term
Management Plan
“Preparation Stage” FY2021–2023
19

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
business

Strategy of“Preparation Stage”
FY2021–2023

Find new businesses© 2022 DAI-DAN Co., Ltd.

•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 two years ago.

• Increase industrial installations• Strengthen businesses of recurring
revenue model• Develop a foundation to control
overseas operations• Develop new bases

Strengthen
technologicalcapabilities

Implementation status of measures• 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 load20

Progress of the Mid-Term Management Plan
<Orders received / Net sales / Operating profit> The targets in the Mid-Term Management Plan “Preparation Stage” are expected to be achieved.
Aiming to achieve the targets of net sales of 200 billion yen and operating profit of 10 billion yen in
fiscal year ending March 2024, or the final year, we will accumulate orders, continue to hire about
100 persons, and promote DX, thereby improving productivity and achieving sales.
Earnings forecast for the Mid-Term Management Plan
<Mid-Term Management Plan Period>

Orders received / Net sales

250,000

200,000

176,526
157,712208,000
200,000

193,000

183,668

15,00012,500175,000

162,929(Millions of yen)

10,000150,000

10,0008,754

100,000

7,500

8,500

7,584

5,000
50,000Operating profit(Millions of yen)

2,500
Plan

0

0
Period ended
March 2021

Period ended
March 2022

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

Period ending
March 2023

Net sales

Period ending
March 2024

Operating profit

21

DX promotion case examples
Remote field support teamConstruction Visualizer 4D
Easy recording of 3D data that realistically
captures the status at worksites
Shooting at a worksite with anomnidirectional camera

Experienced
engineer

Head office
BranchCloud fileserverThis enables recording ofomnidirectional video centeredon the camera at once.

Processing of video data with dedicated software
3D modeling of the video that recorded thecurrent status

Web conferencing system
Construction
site at eachlocation

CAD engineer
who works
shorter hours

Common CAD software…

Young field
personnel

For the purpose of providing efficient support from the head office and branches toconstruction sites in various locations, we provide multifaceted support such asprocess management and mutual creation of drawings between construction sites
using web conferencing tools, cloud file servers, and common CAD software.

Utilized for construction planning even for renovation
projects, drawings of which no longer exist.
© 2022 DAI-DAN Co., Ltd.

Last year’s results: 339 projects
Utilized for about 70% of medium and large projects
22Key measures for the Mid-Term Management Plan
<Increase industrial installations> In recent years, the number of electronic device factories, data centers, and logistics facilities have been
increasing remarkably.
 The Engineering Division was established in April 2022 to increase and train engineers who can handle
sophisticated equipment and to strengthen the construction system specializing in industrial facilities.

Trends in industrial facility-related orders received(Millions of yen)

100,000<Mid-Term Management Plan Period>

90,00083,50080,00070,000Orders received

77,20074,63365,64960,00050,06953,206

55,69550,00040,00032,511

30,00020,00010,000Plan

0Periodended
March 2017

Factory-related

Periodended
March 2018

Periodended
March 2019

Periodended
March 2020

Periodended
March 2021

Data centers / Logistics facilities / Labs

Periodended
March 2022

PeriodendingMarch 2023

PeriodendingMarch 2024

Small-scale construction work

* With the revision of the construction classification, industrial facility-related small-scale construction work has been added since the fiscal year ended March 2021.
© 2022 DAI-DAN Co., Ltd.

23

Key measures for the Mid-Term Management Plan
<Reinforce overseas operations> While operating business mainly in Singapore and Thailand, we established local subsidiaries in Vietnam in October 2020
and in Taiwan in April 2022.
 Following the relaxation of movement restrictions as measures to prevent the spread of Covid-19, net sales of completed
construction contracts are expected to increase steadily.
 Net sales of completed construction contracts planned for the 2nd year of Mid-Term Management Plan (period ending
March 2023) 12.5 billion yen ⇒ Final year (plan) 16 billion yen

Trends in overseas operations(Millions of yen)

<Mid-Term Management Plan Period>

20,00017,50016,000Orders received /Completed construction contracts

18,00016,00014,60014,00012,000

10,208

10,25810,000
8,000
4,246
6,000

12,50011,386

4,560

4,695
5,233

7,295

6,709

10,414

9,738
6,423

4,000
2,000

Plan

0
Period ended
March 2017

Period ended
March 2018

Period ended
March 2019

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

Period ended
March 2020

Period ended
March 2021

Period ended
March 2022

Period ending
March 2023

Period ending
March 2024

Completed construction contracts
24

Financial Briefing Material for
the Period Ended March 2022

Our Sustainability
Initiatives

25

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© 2022 DAI-DAN Co., Ltd.

SDGs

Improvement in retention rate ofMeisters
26

Initiatives toward decarbonization

Dissemination and expansion of ZEB
 Acceleration toward 2050
carbon neutrality

The government declared that, in principle,
ZEB Oriented will be introduced for joint
government buildings designed by the
Ministry of Land, Infrastructure, Transport
and Tourism.
Gradual strengthening of energy saving
standards for buildings is being considered.

 ZEB orders actually received
DAI-DAN’s efforts toward ZEB, such as
our Enefice series buildings, are highly
regarded, establishing a corporate
image with ZEB as DAI-DAN’s strength.
As a result, orders are increasing withthe growth of the market.
© 2022 DAI-DAN Co., Ltd.

120

110

100

5,217

60

66
3,000

3,206

2,000

40
20

5,000
4,000

80
60

6,000

1,583

1,000

Total floor area (x1,000 m2)



ZEB orders received and market trends
Orders received (100 million yen)

 Due to the instability of the internationalsituation, expectations for ZEB, which
contributes to the leveling of energy
supply, will increase.
 Trends in ZEB policy

00Period ended
March 2020
Orders received

Period ended
March 2021

Period ended
March 2022

ZEB-certified total floor area in Japan

27

Initiatives toward decarbonization

Dissemination and expansion of ZEB
 Completion of Hokuriku Branch, following
Enefice Hokkaido (Hokkaido Branch) Accumulation of know-how over the life cycle of ZEB, fromdesign to operation
 Building that pursues sustainability as well as designusing wood (Cross Laminated Timber or CLT) Development of wellness offices that promote user healthand comfort and contributes to improving intellectual
productivity
Acquisition of CASBEE-Smart Wellness Office S-rank

Appearance of Hokuriku Branchcompleted in May 2022
The design theme is “in harmony withtraditional townscapes.” Promoting verification using our own buildings
to disseminate ZEB, which contributes tosolving environmental issues
 Enefice Shikoku (Winner of Carbon Neutral Award) Enefice Hokkaido (complete realization of ZEB in cold regions) New Hokuriku Branch (completed in May)
Theme: “Innovative offices in harmony with traditional townscapes”

Office interior
Pursuing wellness with the use of wood
© 2022 DAI-DAN Co., Ltd.

28

Realization of a high quality medical environment

Regenerative medicine initiatives
 Build new CPF* concept*CPF: Clean room for processing cells for regenerative medicine

Increase of inquiries as
users with communicative skills
highly evaluate CPF, and also
through word-of-mouth

Keio University Hospital

CuoripsMie University(Blood (Kymriah), etc.)(Cardiac muscle)(Cancer (CAR-T))

We propose facilities that will meet customer needs based on
our construction achievements of well-known projects in the fieldof regenerative medicine and the engineering capabilities that
we have cultivated so far.

 Prepare prominent peripheral services and form
an alliance
We have built a CPF for contract manufacturing in Cellab
Tonomachi in preparation for contract manufacturing of cells forcancer treatment developed by GAIA BioMedicine, Inc. (GBM).
In addition, our subsidiary is building a manufacturing system byhiring specialized staff for cell manufacturing.
© 2022 DAI-DAN Co., Ltd.

Approach fields where early
expansion is expected, such as
cancer and retina.
Firmly establish a position as theshare leader in the CPF market,
worth one trillion yen.

Expand business fields
through solid cooperation
with venture companies

Enter the field ofcell preparation contract manufacturingservice for regenerative medicine
Aim to achieve 15 billion yen in 2030 with
CPF, equipment and service
29

New sustainability-related initiatives
Waste reduction: Filter Regeneration Business To create a CSV business aiming to solve environmental issues, we will draw on our
unique technology, “supercritical CO2 regeneration technology,” to expand theregeneration service business of air filters for semiconductor manufacturing
equipment.
 Contribute to waste reduction and CO2 emissions reduction not only in Japan but also overseas.
A local subsidiary was established in Taiwan in April 2022.
Customer (Factory)(Millions of yen)

Filter regeneration service business plan

400

Used filters(Performancedegraded)

Regenerated filter

350 (Performancerecovered)

Sales

300
250
200
150
100

Filter Regeneration Service

500Period ended Period ending Period ending Period ending Period ending
March 2022 March 2023 March 2024 March 2025 March 2026

Japan
© 2022 DAI-DAN Co., Ltd.

Overseas30

New sustainability-related initiatives• Support for TCFD recommendations• Selected as a component of the FTSE
Blossom Japan Relative Index.

• “Dai-Dan Forest Management” agreement concluded

March 23, 2022
Copyright © Kumamoto Prefectural
Government. All Rights Reserved.
Copyright © 2010 kumamoto pref.kumamon.

Forest Managementagreement concluded in(as of March 31, 2022):• Hokkaido• Saitama• Mie• Ishikawa• Shiga• Okayama• Kumamoto• Introduction of green
electricity to the head
office, branch offices, etc.

• Recognized as an Outstanding
Health and Productivity
Management Organization 2022
(large enterprise category).
© 2022 DAI-DAN Co., Ltd.

• Acquired two stars in the“Eruboshi” certification program(awarded to excellent companies inpromoting women’s advancement).
31

Reference:
DATA FILE(Full Year)32

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

Period ended March
2020

Period ended March
2021

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(Millions of yen)
Period ended March
2022

Period ended March2018

Sub total
Total

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

200,000

27,236160,000

27,25430,88525,690Electrical installations

22,735120,000

124,600
80,000132,843

139,236

149,286(102,515)(39,553)(36,720)

Period ended
March 2019

Period ended
March 2020

PipingOf which,( Air conditioning installations)((104,878)(93,289)

156,614

Plumbing installations)(117,966)(92,093)

40,000(32,506)(44,410)(38,447)

0
Period ended
March 2018
© 2022 DAI-DAN Co., Ltd.

Period ended
March 2021

Period ended
March 2022

33

Trends in consolidated orders received(Orders received / Renovations) (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

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%

Net sales of
construction contract
orders received

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

200,000

60.0%

50.0%
150,000
40.0%

100,000

30.0%

20.0%
50,00071,748

82,10985,001

Period ended March
2019

Period ended March
2020

89,22477,754

10.0%

0

0.0%
Period ended March2018

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

Orders received

Period ended March
2021

Period ended March
2022

Percentae of renovations

34

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%

3.2%

80%

38.5%

6.4%

6.0%

5.5%

6.2%

36.9%

36.6%

37.0%

35.8%

18.1%

18.3%

17.5%

16.8%

38.6%

39.1%

40.0%

41.2%

60%
16.7%
40%

41.6%

20%

0%
Period ended March 2018 Period ended March 2019 Period ended March 2020 Period ended March 2021 Period ended March 2022
East Japan Division© 2022 DAI-DAN Co., Ltd.

Central Japan Division

West Japan DivisionInternational Division

35

Consolidated net sales of completed construction contracts
by construction type (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

25,996

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

Electrical installationsAir
conditioning
and plumbing
installations

Sub total
Total

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

200,000

160,000

26,84024,86524,39325,676
Electrical installations

25,996142,388

120,000

132,846

131,171
117,451
80,000(92,939)

137,253

PipingOf which,( Air conditioning installations)((102,432)(96,526)

Plumbing installations)(98,270)(85,926)

40,000(31,525)(38,232)(39,956)(36,320)(38,982)0Period ended March Period ended March Period ended March Period ended March Period ended March
2018
2019
2020
2021
2022
© 2022 DAI-DAN Co., Ltd.

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
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%

3.6%

4.7%

39.0%

40.2%

4.0%

4.1%

34.9%

37.7%

6.4%

38.8%

60.0%
15.8%
17.3%

16.9%
17.2%

18.0%

40.0%

20.0%

45.3%

40.1%

37.1%

41.3%

37.5%

0.0%
Period ended March 2018 Period ended March 2019 Period ended March 2020 Period ended March 2021 Period ended March 2022
East Japan Division© 2022 DAI-DAN Co., Ltd.

Central Japan Division

West Japan DivisionInternational Division37

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)

Operating profit

Ordinary profit(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
2018

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2022

Period
ended
March
2021

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
Period
ended
March
2018

© 2022 DAI-DAN Co., Ltd.

Period
ended
March
2019

Period
ended
March
2020

Period
ended
March
2021

Period
ended
March
2022

PeriodendingMarch
2023(Forecast)
38

Disclaimer
The forecast concerning future business results, including future plans and strategies, disclosed by the Company isbased on assumptions deemed reasonable at the time of announcement. Therefore, actual business results may differ
from the forecast 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.

39