Dai Dan : Consolidated Financial Statements for the Third Quarter of the Period Ending March 2026

Consolidated Financial Statements for the Third Quarter of the Period Ending March 2026 [Japanese Standard]

February 6, 2026

Name of listed company: DAI-DAN Co., Ltd. Stock Exchange Listing:

Code No.: 1980 URL: https://www.daidan.co.jp/ Tokyo Stock Exchange Prime Market Representative of Company: Yasuhiro Yamanaka, Representative Director, President

Inquiries to be addressed to: Yoji Sasaki, Director, Senior Executive Corporate Officer,

CIO, Head of General Administration Tel. (06) 6447 - 8003 Creating supplements to the financial statement: Yes

Holding a briefing session on the financial statement: None

(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated business results for the Third quarter of the period ending March 2026 (From April 1, 2025 to December 31, 2025)

   1. Consolidated management performance (Cumulative total) (Percentage indications show increase or decrease from the previous period.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      Third quarter of the period ending March 2026	180,189	(3.0)	26,525	61.7	27,553	62.3	19,176	58.6
      Third quarter of the period ending March 2025	185,850	33.2	16,400	158.6	16,977	146.7	12,088	136.3

      (Note) Comprehensive income Third quarter of the period ending March 2026 20,161 Million yen 79.2%

      Third quarter of the period ending March 2025 11,251 Million yen 77.3%

      	Profit per share	Diluted Profit per share
      	Yen Sen	Yen Sen
      Third quarter of the period ending March 2026	148.60	-
      Third quarter of the period ending March 2025	93.98	-

      (Note) The Company conducted a 3-for-1 share split of shares of common stock, with an effective date of January 1, 2026. "Profit per share" is calculated assuming that the share split was executed at the beginning of the previous consolidated accounting year.

   2. Consolidated financial position

   	Total assets	Net assets	Equity capital ratio
   	Million yen	Million yen	%
   Third quarter of the period ending March 2026	203,862	121,814	58.6
   Period ending March 2025	215,309	109,206	49.7

   (Reference) Equity capital Third quarter of the period ending March 2026 119,536 Million yen

   Period ending March 2025 107,020 Million yen

2. Dividends

   	Annual dividends per share
   	End of first quarter	End of second quarter	End of third quarter	Period end	Through year
   	Yen Sen	Yen Sen	Yen Sen	Yen Sen	Yen Sen
   Period ending March 2025	-	52.00	-	111.00	163.00
   Period ending March 2026	-	82.00	-
   Period ending March 2026 (Forecast)				45.00	-

   (Note) 1 Presence of revision from dividend forecast published most recently: Yes

   2 The Company conducted a 3-for-1 share split of shares of common stock, with an effective date of January 1, 2026. Dividends before the third quarter of the fiscal year ending March 31, 2026, are the actual dividend amount before the share split. The period end dividend for the period ending March 31, 2026 (forecast) shown in the table above reflects the effect of the share split, and the total annual dividend is shown as "―". The total annual dividend per share as calculated before the share split will be 217 yen.

3. Estimate of consolidated performance for the period ending March 2026 (From April 1, 2025 to March 31, 2026)

(Percentage indications show increase or decrease from the previous period.)

(Reference) Estimated net sales of construction contract orders 320,000 Million yen (Note) 1 Presence of revision from estimate of performance published most recently: Yes

2 The consolidated financial results forecast for earnings per share for the fiscal year ending March 31, 2026, is presented in an amount after the share split. Not taking the share split into consideration, net income per share would be 537.02 yen.

• Annotations

  1. Changes in key subsidiaries in the period (changes in specific subsidiaries requiring changes of consolidation scope): None

  2. Application of particular accounting to the preparation of quarter consolidated financial statements: None

  3. Changes in accounting policies, changes in accounting estimates, restatement

     ➀ Changes in accounting policies due to revision of accounting standards, etc.: None

     ➁ Changes in accounting policies other than ➀: None

     ➂ Changes in accounting estimates: None

     ➃ Restatement: None

  4. Number of issued shares (common stock)

     ➀ Number of issued shares at the end of period (including treasury shares)	Third quarter of the period ending March 2026	137,891,406	shares	Period ending March 2025	137,891,406	shares
     ➁ Number of treasury shares at the end of period	Third quarter of the period ending March 2026	8,511,162	shares	Period ending March 2025	9,232,455	shares
     ➂ Average number of shares in the period (quarter total)	Third quarter of the period ending March 2026	129,046,175	shares	Third quarter of the period ending March 2025	128,625,897	shares

     (Note) 1 The Company conducted a 3-for-1 share split of shares of common stock, with an effective date of January 1, 2026.

     "Number of issued shares at the end of period," "Number of treasury shares at the end of period" and "Average numbers of shares in the period" are calculated assuming that the share split was executed at the beginning of the previous consolidated accounting year.

     2 The number of treasury shares at the end of the period includes the Company's shares held in the BIP Trust for Directors (977,724 shares for the period ending March 2025, 813,042 shares for the Third quarter of the period ending March 2026). In addition, the Company's shares held in the BIP Trust for Directors (478,879 shares for the Third quarter of the period ending March 2025, 869,541 shares for the quarter of the Third period ending March 2026) are also included in treasury shares, which is deducted in the calculation of the average number of shares outstanding during the period.

• Review of the accompanying quarterly consolidated financial statements by CPA or an audit corporation : Yes (voluntary)

• Explanation about adequate use of achievement forecasts and other noteworthy matters (Caution regarding forward-looking statements and others)

The forward-looking statements disclosed herein are based on the information available at the time of preparation of this document and the assumption considered as reasonable.

Consequently, actual results differ materially from forecasts above due to changes in business results.

(How to obtain supplementary explanatory materials for quarterly financial results)

Supplementary explanatory materials for quarterly financial results will be available on the Company's website.

(Reference) Estimate of individual performance

Estimate of individual performance for the period ending March 2026 (From April 1, 2025 to March 31, 2026)

(Percentage indications show increase or decrease from the previous period.)

(Reference) Estimated net sales of construction contract orders 286,000 Million yen (Note) 1 Presence of revision from estimate of performance published most recently: Yes

2 The individual financial results forecast for earnings per share for the fiscal year ending March 31, 2026, is presented in an amount after the share split. Not taking the share split into consideration, net income per share would be 537.02 yen.

Contents of Information

1. Consolidated Financial Statements and Major Notes 2

   1. Consolidated Balance Sheets 2

   2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 4

      (Consolidated Statements of Income)

      (Third Quarter Consolidated Cumulative Period) 4

      (Consolidated Statements of Comprehensive Income)

      (Third Quarter Consolidated Cumulative Period) 5

   3. Annotation Items Concerning Quarterly Consolidated Financial Statements 6

      (Basis of Quarterly Consolidated Financial Statements) 6

      (Notes to Going Concern Assumption) 6

      (Notes in Case of Significant Changes in the Amount of Shareholders' Equity) 6

      (Notes regarding the Quarterly Consolidated statement of Cash Flows) 6

      (Significant Subsequent Event) 6

2. Supplementary Information 8

Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted construction contracts (consolidated) 8

1. ‌Consolidated Financial Statements and Major Notes‌

   1. Consolidated Balance Sheets

      		(Millions of yen)
      Previous Consolidated Accounting Year (As of March 31, 2025)		Current Third Quarter Consolidated Accounting Period (As of December 31, 2025)
      Assets
      Current assets
      Cash and deposits	51,761	68,782
      Notes receivable, accounts receivable from completed construction contracts and other	90,747	66,738
      Electronically recorded monetary claims - operating	11,267	8,329
      Costs on construction contracts in progress	892	3,185
      Other	10,849	4,730
      Allowance for doubtful accounts	(192)	(248)
      Total current assets	165,326	151,519
      Non-current assets
      Property, plant and equipment	7,952	7,928
      Intangible assets
      Goodwill	1,607	1,480
      Customer-related intangible assets	2,675	2,339
      Other	1,526	1,444
      Total intangible assets	5,809	5,264
      Investments and other assets
      Investment securities	17,116	18,962
      Retirement benefit asset	16,996	17,105
      Other	2,212	3,188
      Allowance for doubtful accounts	(105)	(104)
      Total investments and other assets	36,220	39,151
      Total non-current assets	49,982	52,343
      Total assets	215,309	203,862

      		(Millions of yen)
      Previous Consolidated Accounting Year (As of March 31, 2025)		Current Third Quarter Consolidated Accounting Period (As of December 31, 2025)
      Liabilities
      Current liabilities
      Notes payable, accounts payable for construction contracts	28,222	20,073
      Electronically recorded obligations - operating	5,479	4,081
      Short-term borrowings	22,927	2,751
      Income taxes payable	5,445	3,778
      Advances received on construction contracts in progress	6,937	8,467
      Provision for bonuses	-	4,435
      Provision for bonuses for directors (and other officers)	-	16
      Provision for share awards	104	62
      Provision for warranties for completed construction	114	150
      Provision for loss on construction contracts	1,218	214
      Deposits received	19,673	17,802
      Other	10,399	12,801
      Total current liabilities	100,523	74,637
      Non-current liabilities
      Long-term borrowings	675	698
      Deferred tax liabilities	3,882	5,634
      Retirement benefit liability	967	957
      Long-term accounts payable - other	2	2
      Other	49	116
      Total non-current liabilities	5,578	7,410
      Total liabilities	106,102	82,048
      Net assets
      Shareholders' equity
      Share capital	4,479	4,479
      Capital surplus	5,349	5,959
      Retained earnings	88,503	99,252
      Treasury shares	(3,578)	(3,251)
      Total shareholders' equity	94,754	106,440
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	7,443	8,557
      Foreign currency translation adjustment	512	463
      Remeasurements of defined benefit plans	4,309	4,075
      Total accumulated other comprehensive income	12,265	13,095
      Non-controlling interests	2,186	2,278
      Total net assets	109,206	121,814
      Total liabilities and net assets	215,309	203,862

   2. ‌ Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)‌

      ‌(Third Quarter Consolidated Cumulative Period)

      		(Millions of yen)
      Previous Third Quarter Consolidated Cumulative Period (From April 1, 2024 to December 31, 2024)		Current Third Quarter Consolidated Cumulative Period (From April 1, 2025 to December 31, 2025)
      Net sales of completed construction contracts	185,850	180,189
      Cost of sales of completed construction contracts	156,775	138,518
      Gross profit on completed construction contracts	29,074	41,671
      Selling, general and administrative expenses	12,673	15,145
      Operating profit	16,400	26,525
      Non-operating income
      Interest income	1	62
      Dividend income	320	369
      Insurance fee income	140	172
      Foreign exchange gains	115	475
      Share of profit of entities accounted for using equity method	135	-
      Rental income from real estate	25	25
      Other	37	79
      Total non-operating income	776	1,183
      Non-operating expenses
      Interest expenses	166	79
      Guarantee commission	0	10
      Rental expenses on real estate	11	12
      Commitment fees	15	15
      Other	5	37
      Total non-operating expenses	200	155
      Ordinary profit	16,977	27,553
      Extraordinary income
      Gain on sale of non-current assets	9	4
      Gain on sale of investment securities	1,140	389
      Reversal of allowance for doubtful accounts	-	0
      Gain on reversal of asset retirement obligations	64	-
      Gain on extinguishment of tie-in shares	-	113
      Total extraordinary income	1,214	507
      Extraordinary losses
      Loss on sale of non-current assets	-	2
      Loss on retirement of non-current assets	3	1
      Loss on valuation of investment securities	148	-
      Loss on step acquisitions	241	-
      Total extraordinary losses	393	3
      Profit before income taxes	17,798	28,058
      Income taxes - current	4,838	7,358
      Income taxes - deferred	849	1,351
      Total income taxes	5,687	8,709
      Profit	12,110	19,348
      Profit attributable to non-controlling interests	22	172
      Profit attributable to owners of parent	12,088	19,176

      ‌(Consolidated Statements of Comprehensive Income) (Third Quarter Consolidated Cumulative Period)‌

      		(Millions of yen)
      Previous Third Quarter Consolidated Cumulative Period (From April 1, 2024 to December 31, 2024)		Current Third Quarter Consolidated Cumulative Period (From April 1, 2025 to December 31, 2025)
      Profit	12,110	19,348
      Other comprehensive income
      Valuation difference on available-for-sale securities	(407)	1,113
      Foreign currency translation adjustment	75	(66)
      Remeasurements of defined benefit plans, net of tax	(343)	(234)
      Share of other comprehensive income of entities accounted for using equity method	(183)	-
      Total other comprehensive income	(859)	812
      Comprehensive income	11,251	20,161
      Comprehensive income attributable to
      Comprehensive income attributable to owners of parent	11,212	20,006
      Comprehensive income attributable to non-controlling interests	38	154

   3. ‌Annotation Items Concerning Quarterly Consolidated Financial Statements

      ‌(Basis of Quarterly Consolidated Financial Statements)

      We prepare the quarterly consolidated financial statements in accordance with the Article 4-1 of the Tokyo Stock Exchange's standard for preparation of quarterly financial statements and the accounting standards for quarterly financial statements generally recognized as fair and reasonable in Japan, omitting certain disclosures under the Article 4-2 of the Tokyo Stock Exchange's standard for preparation of quarterly financial statements.

      ‌(Notes to Going Concern Assumption)

      None

      ‌(Notes in Case of Significant Changes in the Amount of Shareholders' Equity)

      None

      ‌(Notes regarding the Quarterly Consolidated statement of Cash Flows)

      Quarterly consolidated statements of cash flows have not been prepared for the third quarter of the fiscal year under review. Depreciation (including amortization of intangible assets other than goodwill) and amortization of goodwill for the third quarter of the fiscal year under review are as follows.

      (Millions of yen)

      Previous Third Quarter Consolidated Cumulative Period (From April 1, 2024 to December 31, 2024)		Current Third Quarter Consolidated Cumulative Period (From April 1, 2025 to December 31,2025)
      Depreciation	688	1,017
      Amortization of goodwill	-	108

      ‌(Significant Subsequent Event) (Share Split)

      Based on the resolution of the Board of Directors held on November 7, 2025, the Company conducted a 3-for-1 share split of shares of common stock, with an effective date of January 1, 2026.

      1. Purpose of share split

         The Company aims to create a more accessible investment environment, enhance market liquidity, and expand its investor base by reducing the investment amount required per unit of its stock.

      2. Overview of share split

         ① Method of share split

         The record date for the share split is set for Wednesday, December 31, 2025 (effectively Tuesday, December 30, 2025, since the shareholder registry administrator is closed on the record date). Shareholders listed on the final shareholder registry as of this date will receive three shares for every one share of the Company's common stock they hold.

         ② Number of shares to be increased by share split

         Total number of issued shares before the share split 45,963,802 shares

         Number of shares to be increased by the share split 91,927,604 shares

         Total number of issued shares after the share split 137,891,406 shares Total number of shares authorized to be issued after the share split 240,000,000 shares

         ③ Timetable for the share split

         Date of public notice of the record date Monday, December 15, 2025 Record date Wednesday, December 31, 2025

         Effective date Thursday, January 1, 2026

         ④ Impact on per share information

         The impact on per share information is presented under "Profit per share" in the summary.

2. ‌Supplementary Information‌

Divisional net sales of construction contract orders received, completed construction contracts, and uncompleted construction contracts (consolidated)

(Millions of yen)

(Note) Industrial facilities and Overseas operations, Renovations are aggregated for each type of construction. These includes duplicated construction.