Daiei Kankyo (9336) Investor presentation summary

Strategic vision and market positioning

• D-Plan 2028 serves as the first phase of a six-year growth plan, focusing on organic growth and M&A to build a foundation for FY2031/3 targets.

• The plan aims to expand recycled product supply, maximize final disposal site value, and increase incineration capacity to 4,000 tons/day.

• The waste management market in Japan is highly fragmented, with significant M&A opportunities due to industry structure and succession issues.

• The group leverages a one-stop service model, broad customer base, and industry-leading facility capacity.

• Five material issues guide the strategy: local circular economies, business foundation, decarbonization, human capital, and transparency.

Financial targets and revisions

• Revised EBITDA target for FY2028/3 is JPY 38.0 bn, up from the initial JPY 36.0 bn, with a CAGR of 10.9%.

• Net sales are targeted at JPY 100.0 bn for FY2028/3, with a CAGR of 7.6%.

• M&A investment is set at JPY 55.0 bn or more, with total cash allocation for growth at JPY 90.0 bn or more.

• Shareholder returns will increase progressively, with a dividend payout ratio of 33% or higher, aiming for 40% by FY2031/3.

• The acquisition of Sukarabesakure Co., Ltd. significantly advances the growth strategy and financial outlook.

Growth measures and operational initiatives

• Aggressive expansion of treatment facility capacity, including new construction and PPP projects, to reach 4,000 t/day by FY2031/3.

• Focus on maximizing value from final disposal sites by increasing high-value-added waste intake.

• Expansion of resource recycling systems, especially plastics, to supply the manufacturing sector and reduce secondary waste.

• Nationwide business area expansion through M&A, with a focus on the Kanto region.

• Deepening relationships with municipalities, increasing disaster agreements, and promoting PPPs for integrated waste management.