Dai-Dan (1980) Corporate presentation summary

Revision of performance targets and financial strategy

• Performance targets for the period ending March 2027 have been revised upward, reflecting strong order trends and improved profitability in large-scale construction projects.

• Net sales target increased from 260.0 to 270.0 billion yen, and operating profit target raised from 16.0 to 24.0 billion yen.

• ROE target revised from over 10% to over 12%, driven by higher net profit margins and business expansion.

• Environmental factors such as rising material costs, labor shortages, and US tariff impacts were incorporated into the revised targets.

• Despite challenges, stable growth is expected through productivity improvements and appropriate order receipt policies.

Key drivers and challenges

• Improved order environment and higher unit prices have boosted profitability and net sales.

• Rising material and labor costs, as well as tight construction capacity, present ongoing challenges.

• US tariffs have led to concerns about postponed or canceled capital investment, especially in export industries.

• Human capital investments and increased fixed costs are necessary to address labor shortages.

• Construction capacity remains limited due to regulatory overtime caps.

Financial strategy and capital allocation

• Growth investments over three years increased from 30.0 to 43.0 billion yen, focusing on human capital, DX, R&D, and overseas expansion.

• Shareholder returns over three years raised from 14.0 to 23.0 billion yen, reflecting improved business performance.

• Dividend payout ratio maintained at 40% or higher, with a minimum DOE of 4.8%.

• Continued reduction of policy-owned shares to less than 20% of consolidated net assets by March 2027.

• Equity-to-asset ratio remains around 50%, balancing financial leverage and soundness.