Slides
Page 1
Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . 21 DINS Power to Turn into Resources , Return to Nature DAIEI KANKYO FY2027 / 3 1st Quarter Financial Results [ Securities Code : 9336 ] Aug. 10 , 2026 ་ ་ ་ ་ INAC KOBE SINCE 2001 環境 ♡ @ 大栄 環境 DINS INAC KOBE SINCE 2001
Page 2
Executive Summary ©2026 DAIEI KANKYO All rights reserved. Net sales 24,136 million yen（Up 20.6％ year on year） Operating profit 5,598 million yen（Up 31.4％ year on year） EBITDA 8,778 million yen（Up 43.0％ year on year) Results Progress of Important Policies FY2027/3 1Q Results Progress Rate for FY2027/３ Forecasts Net sales 25.7% （First half: 52.1％） Operating profit 23.0％ （First half: 49.5％） EBITDA 23.7% （First half: 50.5％） FY2027/3 1Q Results Recycling facilities ✓ Started full-scale operation of a plastic recycling facility in Apr. 2026 Governance structure ✓ Transitioned to a new organizational structure in Apr. 2026 ✓ Appointed Morihiko Shimoda as President and Representative Director in Jun. 2026 Medium-Term Management Plan ✓ Announced a partial revision to D-Plan 2028 in May 2026 PPP (Public-Private Partnership) projects ✓ Start of construction in Aioi in Aug. 2026 2
Page 3
Agenda ©2026 DAIEI KANKYO All rights reserved. 1 About Sukarabesakure Co., Ltd. 2 FY2027/3 1Q Results 3 Progress Rate for FY2027/3 Forecasts ４ Growth Strategy ５ About Daiei Kankyo Group ６ Appendix 3 7 Shareholder Returns
Page 4
1. About Sukarabesakure Co., Ltd.
Page 5
1,185 6,000 287 1,900 955 4,900 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 3 4 1,364 6,600 643 3,500 703 3,800 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2027年3月期 実績 （4月～6月） 2027年3月期 通期計画 421 1,600 186 1,000 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2027年3月期 実績 （4月～6月） 2027年3月期 通期計画 Contribution to Consolidated Results About Sukarabesakure Co., Ltd. 5©2026 DAIEI KANKYO All rights reserved. ⚫Non-consolidated net sales/ Operating profit/ EBITDA*1 ⚫Amortization of goodwill and of identifiable assets ⚫Contribution to consolidated results*2 *1： EBITDA=Operating profit + Depreciation (excluding non-operating expenses) + Amortization of goodwill *2： Calculations consider consolidated adjustments within the Group *3 : The Company receives management consulting fees in exchange for providing management support to its subsidiaries. (million yen) (million yen) (million yen) FY2027/3 Results (Apr. to Jun.) ■Net sales ■Operating profit ■EBITDA FY2027/3 Forecasts*3 FY2027/3 Forecasts FY2027/3 Results (Apr. to Jun.) ■Goodwill ■Identifiable assets ■Net sales ■Operating profit ■EBITDA FY2027/3 Forecasts FY2027/3 Results (Apr. to Jun.)
Page 6
Synergies from Making It a Consolidated Subsidiary About Sukarabesakure Co., Ltd. 6©2026 DAIEI KANKYO All rights reserved. The business areas have expanded by securing new final disposal sites in the Kyushu and Okinawa areas. Expanding Business Areas With a dedicated berth available, we can efficiently accept waste from a wide area by utilizing maritime transport. Enhancing Efficiency of Long-Distance Transportation Significantly contributed to the expansion of annual landfill volume and remaining capacity outlined in the Mid-Term Management Plan “D-Plan 2028” Increasing Planned Annual Landfill Volume and Remaining Capacity Details regarding the final disposal capacity of Sukarabesakure Co., Ltd. are provided on p. 7.
Page 7
Contribution to the Capacity About Sukarabesakure Co., Ltd. 7©2026 DAIEI KANKYO All rights reserved. *1： The remaining capacities are as of Jun. 30, 2026. The 3rd Stage Controlled Final Disposal Site Permitted capacity Remaining capacity*1 3.870 million ㎥ 2.095 million ㎥ （-0.082 million ㎥） 4.946 million ㎥ 4.946 million ㎥ （No change） The 4th Stage Controlled Final Disposal Site Total（The 3rd + The 4th) 8.817 million ㎥ 7.041 million ㎥ （-0.082 million ㎥）（Compared to the figures disclosed for FY2026/3)
Page 8
2. FY2027/3 1Q Results
Page 9
©2026 DAIEI KANKYO All rights reserved. （million yen） FY2027/3 1Q YTD FY2026/3 1Q YTD Year on Year Net sales 24,136 20,020 ＋20.6％ Operating profit 5,598 4,260 ＋31.4％ Operating profit margin 23.2％ 21.3% ＋1.9pt EBITDA 8,778 6,138 ＋43.0％ EBITDA margin*1 36.4％ 30.7% ＋5.7pt Ordinary profit 5,580 4,271 ＋30.7％ Profit attributable to owners of parent 3,548 2,906 ＋22.1％ Profit margin attributable to owners of parent 14.7% 14.5% ＋0.2pt Consolidated Statements of Income *1: EBITDA margin ＝ EBITDA/Net Sales 9 FY2027/3 1Q Results
Page 10
©2026 DAIEI KANKYO All rights reserved. By Segment （million yen） FY2027/3 1Q YTD FY2026/3 1Q YTD Year on Year Waste-related Business Net sales 23,414 19,345 ＋21.0％ Segment profit 5,601 4,350 ＋28.7％ Segment profit margin 23.9% 22.5% ＋1.4pt Other Businesses Net sales 721 674 ＋7.0％ Segment profit (loss) 14 (70) ー Segment Profit (loss) margin 2.1％ (10.5％) ＋12.6pt 10 FY2027/3 1Q Results
Page 11
©2026 DAIEI KANKYO All rights reserved. （million yen） FY2027/3 1Q YTD FY2026/3 1Q YTD Year on Year Waste-related Business 23,414 19,345 ＋21.0％ Waste management and recycling 19,335 16,608 ＋16.4％ Soil remediation 2,049 1,051 ＋94.9％ Other（Waste-related Business） 2,030 1,685 ＋20.5％ Other Businesses 721 674 ＋7.0％ Valuable Resource Recycling Business 619 594 ＋4.1％ Sports Promotion Business 102 79 ＋28.0％ Net Sales by Business Domain 11 FY2027/3 1Q Results
Page 12
461 553 558 537 682 444 560 556 536 477 558 565 597 509 534 516 681 213 96 67 52 158 143 106 67 91 155 112 106 141 156 91 93 178 0 100 200 300 400 500 600 700 800 900 1,000 Volume of Waste and Contaminated Soil Received Waste volume received Increased due to an increase in the volume received for infrastructure development projects in the Kansai area, and the contribution of Sukarabesakure Co., Ltd. ©2026 DAIEI KANKYO All rights reserved. 1Q 4Q3Q2Q Past results【 ■ Waste ■ Contaminated soil 】 FY2026/3【 ■ Waste ■ Contaminated soil 】 (thousand tons) Contaminated soil volume received Increased year on year due to a rise in orders mainly for landfill and washing treatments 24/323/3 24/323/3 24/323/3 24/323/325/3 25/3 25/3 25/3 （thousand tons） FY2027/3 1Q YTD FY2026/3 1Q YTD Year on Year Waste 682 537 ＋27.0％ Contaminated soil 158 52 ＋200.6％ 12 26/3 26/3 26/3 26/3 FY2027/3 1Q Results 27/3 27/3 27/327/3
Page 13
20,020 2,726 997 345 46 24,136 2026年3月期 第１四半期 売上高 実績 廃棄物処理・ 資源循環 土壌浄化 その他 有価資源リサイクル /スポーツ振興 2027年3月期 第１四半期 売上高 実績 18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 ：Increased due to an increase in the volume received for infrastructure development projects in the Kansai area, and the contribution of Sukarabesakure Co., Ltd. ：Increased due to a rise in orders mainly for landfill and washing treatments ：Increased primarily due to steady orders for demolition work received by Kaisei Co., Ltd. as well as the contribution from the acquisition of KOUKI CORP. Consolidated Net Sales Change Factors ✓ Waste management and recycling ✓ Soil remediation ✓ Other (Waste-related Business) *1: The figure for Other includes those for the business domains other than Waste management and recycling and Soil remediation under Waste-related Business. 0 ■ Causes of Increase ■ Causes of decrease FY2027/3 1Q Results ＋4,116 million yen 13©2026 DAIEI KANKYO All rights reserved. Other (Waste-related Business)*1 Valuable Resource Recycling Business / Sports Promotion Business Soil remediation Waste management and recycling FY2026/3 1Q Net sales FY2027/3 1Q Net sales (million yen)
Page 14
4,260 4,116 ▲ 1,301 ▲ 469 ▲ 116 ▲ 890 5,598 2026年3月期 第１四半期 営業利益 売上高増加 減価償却費・ のれん償却額 人件費 エネルギー・ 資機材コスト その他コスト 2027年3月期 第１四半期 営業利益 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Consolidated Operating Profit Change Factors 0 +1,338 million yen ✓ Depreciation, cost of amortization of goodwill ✓ Labor cost ✓ Other costs ：Increased due to an increase in the volume received at final disposal sites, and the recognition of amortization of goodwill and identifiable assets related to Sukarabesakure Co., Ltd. ：Increased due to salary raises and an increase in the number of employees including through M&A ：Increased due to higher transportation costs caused by a higher volume being received, as well as an increase in outsourcing costs resulting from the acquisition of KOUKI CORP. 14©2026 DAIEI KANKYO All rights reserved. ■ Causes of Increase ■ Causes of decrease FY2026/3 1Q Operating profit Increase in sales Depreciation, cost of amortization of goodwill Labor cost Cost of energy, parts and materials Other costs FY2027/3 1Q Operating profit (million yen) FY2027/3 1Q Results
Page 15
Consolidated Balance Sheet （million yen） End of FY2026/3 End of FY2027/3 1Q Property, plant and equipment 121,771 Goodwill 37,047 Other 26,316 Cash and deposits 42,367 Trade notes and accounts receivable 14,147 Other 7,636 Interest- bearing liabilities 115,742 Other liabilities 30,385 Cash and deposits 52,298 Trade notes and accounts receivable 14,262 Other 8,495 Net Assets 114,064 Net Assets 114,170 Total liabilities 136,656 Total liabilities 146,127 Interest- bearing liabilities 108,606 Other liabilities 28,049 Current assets 64,151 Current assets 75,055 Non-current assets 185,136 Non-current assets 186,674 Property, plant and equipment 123,563 Goodwill 36,520 Other 26,590 Total 260,191 Total 250,826 Cash and deposits ✓ Decreased due to dividend payments and repayment of interest-bearing liabilities (-9,930) Property, plant and equipment ✓ Increased due to the acquisition of a final disposal site (currently Iwaki Recycle Center of Daiei Kankyo Co., Ltd.) (＋1,791) 15©2026 DAIEI KANKYO All rights reserved. FY2027/3 1Q Results
Page 16
3. Progress Rate for FY2027/3 Forecasts
Page 17
©2026 DAIEI KANKYO All rights reserved. （million yen） 1Q YTD First half forecasts Progress rate for first half forecasts Full year forecasts Progress rate for full year forecasts Net sales 24,136 46,300 52.1％ 93,900 25.7％ Operating profit 5,598 11,300 49.5％ 24,300 23.0％ Operating profit margin 23.2％ 24.4％ ー 25.9% ー EBITDA 8,778 17,300 50.5％ 37,100 23.7％ EBITDA margin 36.4％ 37.6％ ー 39.5％ ー Ordinary profit 5,580 10,700 52.2％ 23,100 24.2％ Profit attributable to owners of parent 3,548 7,100 50.0％ 16,400 21.6％ Profit margin attributable to owners of parent 14.7％ 15.3％ ー 17.5％ ー Consolidated Statements of Income Progress Rate for FY2027/3 Forecasts ✓ Both net sales and operating profit exceeded the forecasts due to an increase in volume received ⚫ Our view as of the end of 1Q 17
Page 18
©2026 DAIEI KANKYO All rights reserved. Progress Rate for FY2027/3 Forecasts （million yen） 1Q YTD First half forecasts Progress rate for first half forecasts Full year forecasts Progress rate for full year forecasts Waste-related Business Net sales 23,414 44,800 52.2% 91,000 25.7% Segment profit 5,601 11,300 49.5% 24,300 23.0% Segment profit margin 23.9% 25.2% ー 26.7% ー Other Businesses Net sales 721 1,400 50.3% 2,800 25.4% Segment profit 14 0 253.0% 0 59.5% Segment Profit margin 2.1％ 0.4% ー 0.9% ー : Both net sales and segment profit exceeded expectations driven significantly by an increase in volume of waste received for waste management and recycling : While net sales fell short of expectations due to lower-than-expected sales of aluminum pellets, segment profit exceeded the forecast as a result of improved profit margins ✓ Waste-related Business ✓ Other Businesses By Segment ⚫ Our view as of the end of 1Q 18
Page 19
©2026 DAIEI KANKYO All rights reserved. （million yen） 1Q YTD First half forecasts Progress rate for first half forecasts Full year forecasts Progress rate for full year forecasts Waste-related Business 23,414 44,800 52.2％ 91,000 25.7％ Waste management and recycling 19,335 37,300 51.8% 75,100 25.7% Soil remediation 2,049 3,600 55.6% 7,600 26.7% Other (Waste-related Business) 2,030 3,800 52.6% 8,200 24.6% Other Businesses 721 1,400 50.3％ 2,800 25.4％ Valuable Resource Recycling Business 619 1,200 49.0% 2,500 24.5% Sports Promotion Business 102 100 59.9% 300 31.7% Progress Rate for FY2027/3 Forecasts ：Exceeded our expectations due to an increase in the volume of waste received ：Exceeded our expectations due to a rise in orders mainly for landfill and washing treatments ：Exceeded our expectations due to an increase in orders for demolition work received by Kaisei Co., Ltd. ✓ Waste management and recycling ✓ Soil remediation ✓ Other (Waste-related Business) Net Sales by Business Domain ⚫ Our view as of the end of 1Q 19
Page 20
Volume of Waste and Contaminated Soil Received Progress Rate for FY2027/3 Forecasts 20©2026 DAIEI KANKYO All rights reserved. (thousand tons) FY2027/3 1Q YTD FY2027/3 First half forecasts Progress rate for first half forecasts FY2027/３ Full year forecasts Progress rate for full year forecasts Waste 682 1,280 53.0% 2,610 26.1% Contaminated soil 158 260 60.4% 560 28.2% ：Exceeded our expectations due to an increase in volume received from infrastructure development projects in the Kansai area ：Exceeded our expectations due to a rise in orders mainly for landfill and washing treatments ✓Waste ✓Contaminated soil ⚫Our view as of the end of 1Q
Page 21
4. Shareholder Returns
Page 22
30 34 42 48 53 30.7% 30.3% 30.8% 33.0% 33.1% 33.5% 20.0% 25.0% 30.0% 35.0% 40.0% 0 10 20 30 40 50 60 2022年3月期 2023年3月期 2024年3月期 2025年3月期 2026年3月期 予定 2027年3月期 計画 1株当たり配当金 連結配当性向 （JPY） 55 (Of which, interim dividends are 27.5) Interim dividends 24.5 Year-end dividends 28.5 22©2026 DAIEI KANKYO All rights reserved. Shareholder Returns Maintaining target consolidated dividend payout ratio at 33% or higher in the period of the Medium-Term Management Plan (FY2026/3 to FY2028/3) Ensuring progressive dividends to achieve sustainable and stable shareholder returns Considering additional shareholder returns in line with profit growth FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 FY2027/3 Forecasts Dividends per share Consolidated dividend payout ratio
Page 23
5. About Daiei Kankyo Group
Page 24
*1: Includes full-time employees and average number of temporary employees throughout the year *2: FY2026/3 results Company Profile ©2026 DAIEI KANKYO All rights reserved. Established in 1979, Daiei Kankyo Co., Ltd. opened a final disposal site in Izumi City, Osaka and commenced operations. Our Group headquarters is currently on Rokko Island in Kobe City, Hyogo. Chairperson and Representative Director Fumio Kaneko was one of the original founders. Name Daiei Kankyo Co., Ltd. Employees*1 2,883 (consolidated; as of Jun. 30, 2026) Founded Izumi, Osaka in 1979 Representative Directors Chairperson: Fumio Kaneko President: Morihiko Shimoda Group Headquarters Kobe Fashion Plaza, 2-9-1 Koyochonaka, Higashinada-Ku Kobe, Hyogo Net Sales*2 87,855 million yen Operating Profit*2 Operating Profit Margin*2 22,189 million yen 25.3% 24
Page 25
The History of Daiei Kankyo Group ©2026 DAIEI KANKYO All rights reserved. We strengthened governance structure by establishing a system in line with the Corporate Governance Code. We started out in the final disposal business and quickly shifted to waste volume reduction and recycling to ensure our continued competitiveness. Since then, we have developed a wide range of environmental-related businesses, including soil remediation, facility construction and administration, consulting, electricity generation and forest management. Founding period First growth period Second growth period 1979–1996 1997–2013 2014–2018 2019–2022 2023– Expansion of recycling facilities to extend the life of final disposal sites Concentrated investment in facilities to establish recycling system Evolution into a company with the power to create better environments In-depth approach to ESG measures to address social issues Expanding our business while promoting recycling with the goal of carbon neutrality Immediately after the opening of the final disposal site in 1980, we shifted to the recycling business in order to ensure the sustainability of the business. The business environment remained challenging due to a lack of understanding of recycling costs. Our highly regarded performance in handling waste from the Great Hanshin- Awaji Earthquake led to increased deals with municipalities. As a result, we continue to do significant business with municipalities today. Since the opening of the Mie Recycle Center Energy Plaza, the Group's largest incineration power generation facility with a daily processing capacity of 636 tons, number of municipalities we work with increased rapidly. As the Group expanded to more than 2,000 employees and 32 Group companies, its outdated governance structure began heading towards a crisis. To address such a situation, the Group listed itself on the Prime Market of the Tokyo Stock Exchange. M&A was also pursued aggressively for maintaining a high growth rate. In addition to further strengthening business with municipalities and promoting recycling for carbon neutrality, we also plan to expand our business through M&A. Founding Turning point 1 Turning point 2 Turning point 3 Turning point 4 Oct. 1979: Establishment of Daiei Kankyo Sep. 1980: Opening of controlled final disposal site Jan. 1995: The Great Hanshin-Awaji Earthquake Involved in disaster waste management Sep. 2013: Opening of Mie Recycle Center Energy Plaza Dec. 2022: Listed on the Tokyo Stock Exchange Prime Market May 2023: Began operation of Miki Biomass Factory As a local company, immediately after the disaster, we were asked by many municipalities to carry out disaster waste management. FY2023/3 31 No. of Group Companies (figures from FY2023/3 onward show number of consolidated subsidiaries) FY2025/3 39FY2019/3 32FY2014/3 20FY1997/3 8 25
Page 26
*1: As of Aug. 10, 2026. In addition to the consolidated subsidiaries listed above, there are 2 non-consolidated subsidiaries, 8 affiliates accounted for by the equity method and 4 other affiliates not accounted for by the equity method. As a result of the absorption-type merger on Apr. 1, 2026, in which KOUKI CORP. was the surviving company and K-PLUS Co., Ltd. was dissolved, the number of companies decreased by one. *2: As of Aug. 10, 2026. Some dotted locations include multiple types of facilities. This includes the locations of 8 affiliates accounted for by the equity method (other affiliates have been omitted due to lack of materiality). ©2026 DAIEI KANKYO All rights reserved. Daiei Kankyo Consolidated subsidiaries: 47 companies*1 26 Business Development Area (Waste Management and Recycling Business Locations)*2 Other Business Locations :33 Recycling Facilities :47 Total :93 Sales Offices :13 Safety Island Settsu Resource Circulation Systems Clean Tech Nabari DINS KansaiKyodoh Doboku Kyoto Kankyo Kobe Port Recycle Tohoku Eco Clean Create Navi Kyoto Eco Service Sukarabesakure Geo-Re Japan Daiei Amet Plafactory Negibozu Makinosato GLOBAL ENVIRONMENTAL TECHNOLOGY Ashiya Josui Maruyo Settsu Seiun Hizen Kankyo Sanki Kaihatsu Clean Stage KOUKI Mie Chuo Kaihatsu K-WORKS Miyakojima Eco Service Eiwa Recycle Kaisei DINS Mirai INAC Football Club YT Omihachiman Eco Service Urayasu Seiun Software Total Service Green Arrows Kansai Tadaoka Eco Service General Agriculture & Forestry DINS Environmental Analysis Center D-design Daiei Kankyo Research Institute ISV Japan DINS HokkaidoAia Aioi Eco Service YH ※ The red boxes indicate the 31 companies out of 47 consolidated subsidiaries that became part of our Group through M&A. The Overview of Daiei Kankyo Group
Page 27
©2026 DAIEI KANKYO All rights reserved. Core business: Waste management and recycling Waste-related Business 97% Segment sales: JPY 85.2 bn Waste management and recycling 79.7% 8.1%Soil remediation Other (Waste-related Business) ● Facility construction and administration ● Consulting ● Electricity generation ● Forest management ● Others Approx. 80% of net sales Other Businesses3% Segment sales: JPY 2.6 bn Valuable Resource Recycling Business Sports Promotion Business ⚫Aluminum pellets ⚫Recycled plastic pallets Percentage of net sales in FY2026/3 9.2% Segment Overview 27
Page 28
©2026 DAIEI KANKYO All rights reserved. Strengths of Daiei Kankyo Group Our 5 advantages in the core business 1 One-stop service ⚫ Handling all processes within our facilities provides peace of mind regarding traceability ⚫ This contributes to the acquisition of a wide range of customers 2 Customers spreading across a wide range of industries 3 Capacity 4 No. of business with municipalities 5 Extensive M&A track recordWe are not dependent on any specific customer, and have a wide range of customers including municipalities, manufacturers, general contractors, and medical institutions We own a considerable number of incineration and other heat treatment facilities and final disposal sites with industry-leading capacity and high profitability ⚫ Approximately 70% of our total permitted capacity is authorized for general waste management ⚫ We work with approximately 27% of municipalities across Japan ⚫ Approximately 20% of our net sales come from general waste management ⚫ Of the 47 consolidated subsidiaries, 31 were acquired through M&A*1 ⚫ Major subsidiaries have joined the Group through M&A ⚫ Growth so far has been driven by both organic means and M&A *1: As of Aug. 10, 2026 28
Page 29
©2026 DAIEI KANKYO All rights reserved. Earnings from collection and transportation Earnings from distribution Earnings from distribution CustomersPurchasing, processing, and selling Recycling plant Final disposalSorting, crushing, and recycling facilities Incineration and other heat treatment facilities Provide one-stop service Waste-related Business (Waste management and recycling) Daiei Kankyo Group’s Business Areas Intermediate treatment Collection and transportation ⚫ Vehicles ⚫ Ocean containers ⚫Final disposal sites Non- recyclable waste Users of recycled resources Raw material procurement Daiei Kankyo Group’s Business Areas Other Businesses (Valuable Resource Recycling Business) Waste generators ⚫ Municipalities ⚫ Manufacturers ⚫ General contractors ⚫ Medical institutions Outsource recycling Suppliers Earnings from processing Business Model (Main Business Flow) 29
Page 30
©2026 DAIEI KANKYO All rights reserved. Breakdown of Net Sales Breakdowns on a Per-Process Basis and by Main Customer We are not dependent on any specific customer, and have a wide range of customers including municipalities, manufacturers, general contractors, and medical institutions. Breakdown by main customer Percentage of net sales in FY2026/3 Manufacturers approx. 30％ General contractors approx. 35％ Medical institutions approx. 5％ Municipalities approx. 20％ Breakdown on a per-process basis Percentage of net sales in FY2026/3 Collection and transportation approx. 15％ Sorting, crushing, and recycling approx. 35％Incineration and other heat treatment approx. 15％ Final disposal approx. 25％ Others approx. 10％ Others approx. 10％ 30
Page 31
46,278 0 25,000 50,000 V社 Z社 X社 大栄環境 （千m3） 57,360 0 30,000 60,000 X社 V社 W社 大栄環境 754 0 400 800 W社 V社 大栄環境 17,339 0 9,000 18,000 X社 W社 大栄環境 （ｔ/日） 大栄環境 2,412 0 2,000 4,000 Y社 大栄環境 X社 （ｔ/日） 大栄環境 （ｔ/day）（ｔ/day） Daiei Kankyo （ｔ/day） 大栄環境 ©2026 DAIEI KANKYO All rights reserved. Capacity Compared to Other Companies*1 *1: Data of listed companies and subsidiaries of listed companies (figures for non-listed subsidiaries of each company for which information is available are also included) in the waste management and recycling industry was used to create the graphs, etc. for each item. *2: Total permitted capacity refers to the treatment capacity that has been permitted by the prefectures, etc. for each item (final disposal sites are described with "permitted capacity" because they are capacity-based). Calculations for companies other than Daiei Kankyo are based on our own aggregation method using the most recent publicly available data. Sources:Integrated Reports, Annual Securities Reports, financial disclosure information, websites, and other public informationof the companies (as of Jun. 30, 2026); Japan Industrial Waste Management Foundation. Sanpai-kun, Sanpainet (https://www2.sanpainet.or.jp/zyohou/index.php); Japan Disaster Treatment Systems. Transportation and Treatment Capacity (http://jdts.or.jp/ability/) Total Permitted Capacity for Final Disposal Sites Total Permitted Capacity for Soil Remediation Total Permitted Capacity for Incineration and Other Heat Treatment FacilitiesCompany-owned Vehicles Total Permitted Capacity for Sorting, Crushing, and Recycling Facilities Collection and Transportation Intermediate Treatment Final Disposal The remaining capacity 16,120 thousand m3 （as of Jun. 30, 2026） Approx. 70% of our total permitted capacity is authorized for general waste management in addition to industrial waste management General Waste c.70% Industrial Waste Total permitted capacity Daiei Kankyo B C Daiei Kankyo C A B （# of Vehicles） A C Daiei Kankyo A I Daiei Kankyo A B D Total Permitted Capacity*2 of Facilities (As of Jun. 30, 2026) 31 （thousand m3）
Page 32
197 226 258 274 362 389 389 414 425 467 487 512 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 27/3 ©2026 DAIEI KANKYO All rights reserved. *1: The number of municipalities includes prefectures and the 23 wards of Tokyo, and for wide-area associations, each of the constituent municipalities of the wide-area associations is counted as one municipality. Relationships with Municipalities Expand scope of business and expand business area to nationwide Expand from the Kansai and Chubu areas to all of JapanNo. of municipalities we worked with*1 Disaster agreements 512 230 As of Mar. 31, 2026 No. of Municipalities We Work with 230 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 26/8 27/3E No. of Disaster Cooperation Agreements with Municipalities 32 As of Aug. 10, 2026
Page 33
We recognize that we are in a unique position in the industry in terms of our "one-stop treatment process," "wide operational area," and "variety of waste types handled," and we will continue to enhance our comprehensive strength, business scale, and profitability to further improve our presence in the industry. Note: The size of the bubbles indicates EBITDA for the FY2026. The Analysis of “Comprehensive Business Model” and “Specialized or Single-Line Business Model” is based on our own categorizations of the market. EBITDA and EBITDA margin of the other companies are calculated by us in accordance with the formulas based on the data published by each company. Our calculations may differ from the figures published by each company. Some companies use figures from business segments that are classified as waste management businesses. Source: Created based on publicly available information of each company ©2026 DAIEI KANKYO All rights reserved. (EBITDA Margin for FY2026) Specialized or Single-Line Business Model Position Maps of the Industry Position maps of Japanese waste management industry (Our analysis) Holds total capability, business size, and profitability at industry’s top levels Comprehensive Business Model Providing comprehensive waste management services Limited in terms of "Treatment process," "Operational area," or "Waste types handled” 33 0% 10% 20% 30% 40% 50% 60% D社 C社 A社 B社 E社 H社 G社 F社 Daiei Kankyo Group
Page 34
©2026 DAIEI KANKYO All rights reserved. Overview of the Waste Management Business in Japan Responsibility for general waste management lies with municipalities Waste classification Industrial waste (Mainly business activities waste) General waste (Mainly household waste) Responsibility Waste generators Municipalities Emissions*1 367 mn tons 38 mn tons Our estimate TAM*2 (FY2025/3) Daiei Kankyo’s estimated processing cost per unit Recycling*3 JPY 4,499.4 bn General waste management*4 JPY 1,892.8 bn Disaster waste management JPY 121.0 bn Industrial waste management JPY 2,964.7 bn Waste management market size / waste volume Low cost High cost *1: Industrial waste: Actual figures for FY2024/3; General waste: Actual figures for FY2025/3. *2: The Total Addressable Market (TAM) is calculated by the Company based on the sources below. *3: Market size of recycling services and recycled materials, excluding arterial industry (Industries that produce products, such as Manufacturing) receipts *4: Excluding construction and improvement costs Sources: MOEJ. “Sangyo haikibutsu no haishutsu oyobi syorijyokyo nado (reiwa 5 nendo jisseki) ni tsuite” ” [Industrial Waste Discharge and Current Disposal Situation (FY2024 Actual)] (Mar. 27, 2026) (https://www.env.go.jp/press/110498_00003.html), MOEJ. Press Release “Ippan haikibutsu no haisyutsu oyobi syori jokyo to (Reiwa 6 nendo) ni tsuite” [Gener al Waste Discharge and Current Disposal Situation (FY2025)](Mar. 27, 2026) （https://www.env.go.jp/press/press_03502.html), ”Kankyo sangyo no shijo kibo koyo kibo to ni kansuru hokokusho” [Report on the Market Size and Employment of the Environmental Industry] (Mar. 2026) (https://www.env.go.jp/policy/keizai_portal/B_industry/r5/r5houkokusho.pdf), “Nihon no haikibutsu syori Reiwa 6 nendo ban” [Waste Management in Japan FY2025] (Mar. 2026) (https://www.env.go.jp/recycle/waste_tech/ippan/r5/data/disposal.pdf) TAM JPY 9.4 tn 34
Page 35
Overview of the Waste Management Business in Japan ©2026 DAIEI KANKYO All rights reserved. A highly fragmented market with 120,000 companies Due to high proportion of small business No company with a high market share Market size JPY 9.4 tn Total net sales of top four companies: JPY 389.8 bn (4.1% of the total) Reason for the abundance of M&A opportunities High momentum for industry restructuring ⚫ Supplying the “artery” market requires even greater traceability and visualization of CO2 emissions ⚫ Recyclers cannot fully pass on increased costs, including the cost of secondary processing, through prices ⚫ Cannot secure investment funds to keep up with advances in resource recycling ⚫ Many businesses were founded in the 1970s and 80s, and have no succession plan Breakdown of approx. 120,000 companies by business type*1 (Higher barriers to entry mean fewer companies) Intermediate treatment No. of collection and transportation companies: Approx. 110,000 No. of companies owning sorting, crushing, and Recycling facilities: 9,770 No. of companies owning incineration And other heat treatment facilities: 167 No. of companies Owning final disposal sites: 666 *1: No. of industrial waste operators as of Jul. 31, 2024, excluding incineration and other heat treatment facilities (as of Mar. 31, 2025) Sources: Japan Industrial Waste Management Foundation. Sanpai-kun, Sanpainet (https://www2.sanpainet.or.jp/zyohou/index.php); MOEJ. Waste Disposal Technology Information website. ”Ippan haikibutsu syori jittai chosa kekka (Reiwa 5 nendo chosa kekka)” [Results of Research on the Actual State of General Waste Disposal(FY2024)] (https://www.env.go.jp/recycle/waste_tech/ippan/r5/index.html) 35
Page 36
Waste Management Markets in Japan, United States and Europe ©2026 DAIEI KANKYO All rights reserved. area Market Size*1 （as of 2023） Proportion of Final Disposal (based on weight; as of 2016) Net Sales of Major Listed Companies*2 (Unit: JPY bn) Japan United States Europe JPY 9.4 tn JPY 15.2 tn JPY 17.1 tn Note: Converted into yen at the exchange rates as of Dec. 30, 2023 (1USD=144.13JPY, 1EUR=157.26JPY) *1: MARKETSANDMARKETS “WASTE MANAGEMENT MARKET GLOBAL FORECAST TO 2026” (Jun. 2021) (Japan: USD 29.7 bn, US: USD 105.7 bn, Europe: USD 119.1 bn). For the Japanese market, the market size is calculated as the sum of four markets in FY2022, JPY 9.4 tn, for which data is provided by the Ministry of Environment: industrial waste management, recycling, general waste management, and disaster waste. Please see P34 for details. The market sizes for U.S. and Europe were calculated using the exchange rate indicated in Note on this page. The different calculation methods used to estimate regional market sizes may cause significant discrepancies in the percentage comparisons and therefore must not be placed undue reliance. *2: 4 Japanese companies for FY2026, 5 U.S. and European companies for FY2023/12 *3: Figures for each company's waste treatment business segment (DOWA HD :” Environmental Management & Recycling”, Veolia Environnement: "Waste", Suez: "Recycling and Recovery"). On Jan. 27, 2022, Veolia Environnement acquired 95.95% of Suez shares through tender offer. *4: The denominator, market size, is not the total sales of all companies in each area, but only an estimate, and the numerator, sales of each company, and denominator, market size, cover different time periods. For these and other reasons, it does not represent actual market share. Sources:Created based on QYResearch. (Sep. 2017). “Global Waste Treatment Disposal Sales Market Report 2017”; MARKETSANDMARKETS. (Jun. 2021). “WASTE MANAGEMENT MARKET GLOBAL FORECAST TO 2026”; Publicly available information of each company; MOEJ. “Kankyo sangyo no shijo kibo koyo kibo to ni kansuru hokoku sho”[Report on the Market Size and Employment of the Environmental Industry] (Mar. 2026) (https://www.env.go.jp/policy/keizai_portal/B_industry/b_houkoku3.pdf), ”Nihon no haikibutsu shori (Reiwa 6 nendo ban)” [Waste Management in Japan (FY2025)] (Mar. 2026) (https://www.env.go.jp/recycle/waste_tech/ippan/r6/data/disposal.pdf) TRE HD 119.1 Waste Management 2,943.9 Veolia Environnement*3 2,076.6DOWA HD (Environmental and Recycling Business) 111.1 Republic Services 2,156.8 Daiei Kankyo 87.8 Suez*3 764.0Waste Connections 1,156.2Daiseki 71.8 Total 389.8 Total 6,257.0 Total 2,840.6 ％ of Market Size*4 4.1% ％ of Market Size*4 41.0% ％ of Market Size*4 16.5% Final Disposal Incineration・ Recycling・Other Final Disposal Incineration・ Recycling・ Other Final DisposalIncineration・ Recycling・Other It is expected that consolidation of the kind seen in Europe and the United States will advance in Japan as well, where there is no company with a high market share. 36
Page 37
6. Growth Strategy
Page 38
©2026 DAIEI KANKYO All rights reserved. Growth Measures (Capacity Expansion of Treatment Facilities) Steadily building the foundation for the vision for FY2031/3 As of the end of FY2025/3 Facility expansion policy during the period of D-Plan 2028 Vision for FY2031/3 Sorting, crushing, and recycling facilities Permitted capacity 55,671 t/day Capital investment aimed at aggressive capacity expansion have been completed for now Capital investment to expand the supply of recycled products to the “artery” market will proceed as needed. Increase volume received by 1.5 times Incineration and other heat treatment facilities Permitted capacity 2,412 t/day We will systematically develop our facilities to strengthen existing facilities and operate new facilities associated with PPP (public private partnership) · Start construction of 5 plants Total permitted capacity 4,000 t/day Final disposal sites Planned annual landfill volume 1.25 million m3 Started receiving waste at final disposal sites in new areas through M&A, etc. Increase planned annual landfill volume from 1.25 million m3 Remaining capacity 8.740 million m3 Steadily implement new construction and expansion plans in existing areas, and acquire final disposal sites in new areas through M&A, etc. Increase remaining capacity to over 15 million m3 38
Page 39
©2026 DAIEI KANKYO All rights reserved. Note:As of Jun. 30, 2026 Mie Prefecture is included in the Chubu area. Chubu Hokkaido /Tohoku FY2023/3 FY2024/3 FY2025/3 FY2026/3 FY2027/3 FY2028/3 FY2029/3 FY2030/3 FY2031/3 Final Disposal Site JPY 7.0 bnCrushing Facility JPY 0.8 bn Final Disposal Site JPY 2.0 bn Final Disposal Site JPY 5.3 bn Kansai Incineration and Other Heat Treatment Facility JPY 9.5 bn Incineration and Other Heat Treatment Facility JPY 9.5 bn Final Disposal Site JPY 6.5 bn Final Disposal Site JPY 3.0 bn Final Disposal Site JPY 4.0 bn Final Disposal Site JPY 1.1 bn Crushing Facility JPY 0.8 bn Final Disposal Site JPY 4.0 bn Final Disposal Site JPY 2.0 bn Incineration and Other Heat Treatment Facility （Investment amount: TBD） Crushing Facility （Investment amount: TBD） Kyushu Crushing/Methane Fermentation/Composting Facility （Investment amount: TBD） Capital Investment Plan Incineration and Other Heat Treatment Facility （Investment amount: TBD） Crushing Facility （Investment amount: TBD） Incineration and Other Heat Treatment Facility （Investment amount: TBD） Incineration and Other Heat Treatment Facility JPY 12.8 bn Composting Facility JPY 0.1 bn Final Disposal Site （Investment amount: TBD） Crushing Facility JPY 0.5 bn Crushing Facility JPY 0.3 bn Dehydration Facility JPY 0.1 bn Neutralization Facility JPY 0.6 bn Contaminated Soil Treatment Facility JPY 1.3 bn Capital Investment Plan in the Future 39 Plastic Recycling Facility JPY 3.6 bn
Page 40
©2026 DAIEI KANKYO All rights reserved. Increasing Capacity of Sorting, Crushing, and Recycling Facilities and Soil Remediation Facilities New Facility Construction Sorting, Crushing, and Recycling Facility and Soil Remediation Facility DINS Kansai Co., Ltd. - RAC Recycle Center: Plastic Recycling Facility Geo-Re Japan Inc. - Suehiro Plant: Soil Remediation Facility ✓ Permitted capacity : 2,640 t/day ✓ Start of operations : Sep. 2025 ✓ Total investment : Approx. JPY 1.3 bn ✓ Permitted capacity : 72 t/day (Advanced plastic sorting) 197.76 t/day (RPF production) ✓ Start of operations : Sep. 2025 (Advanced plastic sorting) Mar. 2026（RPF production） ✓ Total investment : Approx. JPY 3.6 bn 40
Page 41
Initiatives to Promote Carbon Neutrality (Advancing Resource Recycling Systems) Initiatives for Plastic Recycling 41 RPF製造施設 Plastic Recycling Facility ⚫ Recycled plastic pellets ⚫ Recycled plastic pallets ⚫ Solid fuel (RPF) Municipalities General waste Waste generators Industrial waste ✓ Increase volume received As efforts to recycle waste plastic expand, the volume of waste received will increase ✓ Expand business with municipalities By receiving waste plastic from municipalities, business with municipalities will expand ✓ Expand supply to the “artery” market Expanding the supply of recycled materials through various initiatives with companies in the “artery” market ✓ With the installation of a new advanced plastic sorting facility and other equipment, we have established a more efficient plastic recycling system Advanced plastic sorting facility Recycled plastic pallet production facilityRPF production facility ©2026 DAIEI KANKYO All rights reserved.
Page 42
©2026 DAIEI KANKYO All rights reserved. Initiatives to Promote Carbon Neutrality（Advancing Resource Recycling Systems） Initiatives regarding the “Plastic Resource Circulation Act” Source: Created based on MOEJ. Special website on the Law Concerning the Promotion of Resource Recycling of Plastics (https://plastic-circulation.env.go.jp/about/pro/bunbetsu, https://plastic-circulation.env.go.jp/about/pro/haishutsu) ✓ In addition to the 7 companies which obtained accreditation for the “Recycling Business Plan”, recycling of materials similar to the that of accredited companies is being promoted for non-accredited companies. ⚫ As of Mar. 31, 2026 Accredited companies: 7 / Non-accredited companies: 37 Aiming to increase the number of contracted non-accredited companies ✓ Contributing to plastic resource circulation by participating as a recycler in Recycling Business Plans promoted by municipalities after obtaining accreditation. ⚫ As of Mar. 31, 2026 Number of Recycling Business Plans in which we are participating: For 5 municipalities （Komono Town, Mie & Sakai City, Osaka & Kyoto City, Kyoto & Tsu City, Mie & Hashima City, Gifu) Municipality Sorting Designated Corporation Sorted collection of waste plastic products Integration and streamlining Recycling Or persons who implement sorted collection, etc. on behalf of the municipality Recycler Recycler listed in the certified plan 42
Page 43
©2026 DAIEI KANKYO All rights reserved. Launched iCEP PLASTICS*1, a Total Coordination Service for Plastic Recycling through “Artery-Vein” Collaboration. ✓ One-stop support from collection to producing end products of waste plastics by leveraging the strengths of four companies. *1: iCEP stands for “intelligence Circular Economy Platform”. Use, Disposal Waste Collection, Primary Processing Product Supply Production of raw materials, molding/processing Digitization of Recycling Process Waste generator / Consumer / Municipality ・Collection and sorting of waste plastics ・Primary processing and storage Brand owner ・Manufacturing of pellets ・Manufacturing of end products ・Selection of environmentally friendly products ・Proper sorting ・Environmentally friendly design ・Utilization of recycled materials Resource Circulation Systems Initiatives to Promote Carbon Neutrality（Advancing Resource Recycling Systems） 43
Page 44
©2026 DAIEI KANKYO All rights reserved. Increasing Capacity of Incineration and Other Heat Treatment Facilities New Facility Construction Incineration and Other Heat Treatment Facility Daiei Kankyo Co., Ltd. – Miki Recycle Center : Miki Biomass Factory Daiei Kankyo Co., Ltd. – Izumi Recycle Center : Izumi Energy Plaza Daiei Kankyo Co., Ltd. – Nishinomiya Recycle Center : Nishinomiya Energy Plaza ✓ Permitted capacity：220 t/day ✓ Power generation capacity：4,650 kW ✓ Start of operations：Scheduled for Dec. 2028 Conceptual image of completed facility Aioi Eco Service Co., Ltd. – Aioi Energy Center ✓ Heat treatment facility for mixed-waste incineration of various waste with biomass resources such as waste wood and food residues from the local area ✓ Permitted capacity：440 t/day ✓ Power generation capacity : 11,700 kW ✓ Permitted capacity：220 t/day ✓ Power generation capacity：4,810 kW ✓ Start of operations：Scheduled for May 2030 Conceptual image of completed facility 44 ✓ Permitted capacity：220 t/day ✓ Power generation capacity：5,500 kW ✓ Start of operations：Scheduled for Apr. 2029 Creating image of completed facility
Page 45
Public Private Partnership (PPP) Projects ©2026 DAIEI KANKYO All rights reserved. PPP In municipalities facing declining populations, cutting general waste management costs is a top priority A total of 49.5% of municipalities in Japan are experiencing depopulation 885 out of 1,788 municipalities*1 Outsourcing of waste management to the private sector has made little progress For incineration and other heat treatment, which accounts for approximately 80% of general waste management, the outsourcing rate to the private sector is 5.2% Reduction of cost for general waste management Rising construction costs for treatment facilities Lack of financial resources to renovate facilities Declining facility operating rates due to population decline Many municipalities face multiple waste management challenges Shift general waste management to the private sector Achieving simultaneously through integrated treatment with industrial waste Carbon neutrality *1: 1,718 municipalities in Japan as of Apr. 1, 2025 (excluding the 23 wards of Tokyo), plus the 23 wards of Tokyo and 47 prefectures. Source：Created based on the National Federation of Depopulated Areas’ “Databank of Depopulated Areas: Number of Depopulated Cities, Towns and Villages as of Apr. 1, 2022” (https://www.kaso-net.or.jp/publics/index/19/#block193), MOEJ. ”Nihon no haikibutsu shori (Reiwa 5 nendo ban)” [Waste Management in Japan (FY2024)] (Mar. 2025) (https://www.env.go.jp/recycle/waste_tech/ippan/r5/data/disposal.pdf) 45
Page 46
FY2028/3 (planned) Total of 7 agreements concluded FY2031/3 (projected) Total of 12 agreements concluded ©2026 DAIEI KANKYO All rights reserved. Public Private Partnership (PPP) Projects Incineration and other heat treatment facilities Use PPP schemes to promote integrated treatment of general waste and industrial waste across Japan ⚫Rising construction costs ⚫Lack of financial resources ⚫Declining facility operating rate ⚫Improving disaster response capabilities ⚫Addressing carbon neutrality Challenges facing municipalities ⚫Reducing cost of general waste management ⚫Stabilizing operating rate through integrated treatment of general waste and industrial waste ⚫Priority acceptance of disaster waste and utilization of PPP-based municipal facilities as disaster response centers ⚫Local use of energy ⚫Reducing CO2 emissions through CCU*1 Solving the challenges facing municipalities FY2025/3 (results) FY2032/3 and beyond Accelerating increase in number of agreements signed General waste City Industrial waste Privately- funded facility development Total of 3 agreements concluded Total of 3 facilities in operation 46 *1: CCU stands for "Carbon dioxide Capture and Utilization," which aims to reduce carbon emissions by replacing products such as fuels and chemicals conventionally derived from fossil fuels with products made from CO2.
Page 47
©2026 DAIEI KANKYO All rights reserved. 47 Characteristics of Public-Private Partnership Projects Based on Differences in Facility Development Models Public-Private Partnership (PPP）Projects Public-Private Partnership （Our Initiative） Consensus Building with Local Communities and Councils ✓ Public-led (collaboration with the private partner) Surveys, Planning, and Design for Facility Development Land Design Build Operate (DBO) Scheme （Standard Method for Developing Local Government Facilities） Characteristics Waste Received Construction and Operation Facility Development & Operating Costs ✓ Private sector (owned by private sector) ✓ 100% private financing （We charge only a disposal fee based on the volume of waste.） ✓ General waste and industrial waste ✓ Realize stable long-term operation （the volume of industrial waste is adjusted when the volume of general waste increases or decreases） ✓ Potential to expand facilities （enabling even small municipalities to recover energy） ✓ The public sector decides the basic specifications, while outsourcing the practical technical tasks to the private sector. ✓ Outsourced to the private sector （public ownership） ✓ Public sector ✓ Public sector ✓ General waste ✓ A widely adopted method with numerous precedents (pioneering cases) 【Reference Image】 Miki Biomass Factory The plant section is not enclosed in a building. (Reduction of civil engineering and construction costs) Consensus Building with Local Communities and Councils Surveys, Planning, and Design for Facility Development Land Characteristics Waste Received Construction and Operation Facility Development & Operating Costs 【DBO Case Study】 Omihachiman Eco Service Co., Ltd. ✓ Provided by public sector to private sector ✓ Private sector (in coordination with the public sector on a case-by-case basis) ✓ Publicly funded (utilizes national grants and subsidies) ※Bond issuance is necessary, and there are significant fluctuations in the required budget from year to year ※Risk of higher unit prices per metric ton in the future due to factors such as population decline
Page 48
Progress on Key Measures: PPP ©2026 DAIEI KANKYO All rights reserved. ② Aioi, Hyogo Business Location ✓ Mifune-machi, Kamimashiki-gun, Kumamoto ➀ 5 towns In Kamimashiki-gun, Kumamoto Facilities Overview Capacity (t/day) ✓ Recycling ：900 ✓ Energy recovery ：400 ✓ Methane fermentation ： 30 ✓ Composting ： 60 Business Location ✓ Aioi, Hyogo Facilities Overview Capacity (t/day) ✓ Recycling ：900 ✓ Energy recovery ：220 By FY2031/3, we aim to execute 12 agreements for public-private partnerships nationwide and to begin operations in 3 of them. Date of Agreement ✓ Oct. 2021 Date of Agreement ✓ Oct. 2021 ③ Tadaoka, Osaka Business Location ✓ Tadaoka, Senboku-gun, Osaka Facilities Overview Capacity (t/day) ✓ Recycling ：TBD ✓ Energy recovery ：220 Date of Agreement ✓ Feb. 2023 ✓The relay facility started operations in Apr. 2024.✓The red pin depicts the proposed project area. ✓Obtained an installation permit Construction to begin in Aug. 2026 Previous Cases of PPP Mifune -machi Kousa -machi Kashima -machi Mashiki-machi Yamato -cho Kumamoto city Kikuyō-machi 48
Page 49
©2026 DAIEI KANKYO All rights reserved. Increasing Capacity of Final Disposal Sites New Facility Construction ✓ Start of services ： Jan. 2025 (The 2nd phase) ✓ Permitted capacity ： 6,641,181 ㎥ （of which 5,911,181 ㎥ is for the 2nd phase construction） ✓ Total investment ： Approx. JPY 10.2 bn (including approx. JPY 5.3 bn for the 2nd phase construction) ✓ Start of services ： Oct. 2025 ✓ Permitted capacity ： 1,375,856 ㎥ ✓ Total investment ： Approx. JPY 6.5 bn Final Disposal Site Mie Chuo Kaihatsu Co., Ltd. – Mie Recycle Center : The 8th Stage Controlled Final Disposal Site Daiei Kankyo Co., Ltd. – Gobo Recycle Center : The 2nd Stage Controlled Final Disposal Site 49
Page 50
©2026 DAIEI KANKYO All rights reserved. Expanding Business Areas Through M&A Particularly focus on projects in the Kanto area, which is the largest market Aim to build a one-stop service in each area Focus on business in new areas in addition to planned new expansion of incineration and other heat treatment facilities and final disposal sites Actively execute projects that are expected to generate synergies with core business (increase in volume received) nationwide regardless of area 50
Page 51
M&A Latest Results FY2026/3: Results Location ✓ Imari City, Saga Business ✓ Final Disposal FY2025 Sales / Operating profit ✓ N/A ✓ Securing capacity at final disposal sites ✓ Expansion of business area ✓ Strengthening relationships with municipalities Our advantage through M&A Hizen Kankyo Co., Ltd. ©2026 DAIEI KANKYO All rights reserved. 51 Location ✓ Nabari City, Mie Business ✓ Collection and transportation FY2025 Sales / Operating profit ✓ JPY 123 mn / JPY 7 mn ✓ Expansion of business area for handling general waste ✓ Strengthening relationships with municipalities Our advantage through M&A Clean Tech Nabari Co., Ltd. Location ✓ Kyoto City, Kyoto Business ✓ Collection and transportation/ Recycling FY2025 Sales / Operating profit ✓ JYP 681 mn / JPY 37 mn ✓ Expansion of business area for handling general waste ✓ Strengthening relationships with municipalities Our advantage through M&A Kyoto Eco Service Co., Ltd.
Page 52
M&A Latest Results FY2026/3: Results ©2026 DAIEI KANKYO All rights reserved. 52 Location ✓ Kitakyushu City, Fukuoka Business ✓ Final disposal FY2025 Sales / Operating profit ✓ JPY 6,058 mn / JPY 4,498 mn ✓ Establishment of a one-stop service system within the Kyushu/Okinawa area ✓ Expansion of business area Our advantage through M&A Sukarabesakure Co., Ltd.*1 Location ✓ Toshima-Ku, Tokyo, etc. Business ✓ Collection and transportation/recycling FY2025 Consolidated Sales / Operating profit ✓ JPY 14,506 mn / JPY 2,108 mn ✓ Expansion of business area for handling general waste ✓ Expansion of market share in Kanto area Our advantage through M&A KANAME KOGYO CO., LTD. (Securities code:6566) Location ✓ Nishinomiya City, Hyogo Business ✓ Construction and maintenance of waste treatment plants FY2025 Consolidated Sales / Operating profit ✓ JPY 1,875 mn / JPY 24 mn ✓ Efficiency in equipment maintenance and new installations ✓ Integration of plant design and operational know-how Our advantage through M&A KOUKI CORP . *1： Details regarding contribution to consolidated results and capacity are provided on p. 5 to 7.
Page 53
The Future Vision of Daiei Kankyo Group ©2026 DAIEI KANKYO All rights reserved. We aim to evolve as a company with the power to create better environments and deliver new value to society for the next generation through expansion of existing businesses, active M&A, building local circular ecological spheres throughout Japan, and initiatives to promote carbon neutrality. FY2023/3 Expansion of Existing Businesses M&A Expansion of PPP （Local Circular Ecological Spheres） Decarbonization Businesses （CR/MR, CCU） Global Operations Building Local Circular Ecological Spheres through PPP in each area of Japan Commercialization and Monetization of Initiatives to Promote Carbon Neutrality M&A to Expand Business Areas and Acquire High Value-Added Facilities Evolving as a company with the power to create better environments and deliver new value to society for the next generation Note: CR ＝ Chemical recycling, MR ＝ Material recycling 53
Page 54
7. Appendix
Page 55
©2026 DAIEI KANKYO All rights reserved. Identity Since our founding in 1979, the Daiei Kankyo Group has always been committed to creation, innovation, and meeting challenges without being bound by existing frameworks, and aims to realize a sustainable recycling-oriented society. We will continue to be a group essential for the daily lives of people and the future of the earth. We formulated D-Plan 2028 to address 5 material issues. Identity Management Philosophy Management Vision Basic Policy for Sustainability DINS Statement Code of Conduct Material Issues (Materiality) D-Plan 2028 With our strong commitment to creation, innovation, and meeting challenges, we shall contribute to society while striving for the coexistence of human life, industry, and nature. Enhancing business continuity and evolving as a company with the power to create better environments. The Future Comes from Trust. Development / Integrity / Nature / Social Contribution To realize our Management Vision, we identified 5 Material Issues (Materiality) Safety and Health Philosophy, Environmental Philosophy To achieve our targets for FY2031/3, we aim to build the foundation 55
Page 56
Corporate Governance Structure ©2026 DAIEI KANKYO All rights reserved. Group’s Management Meeting, Etc. A Company with an Audit and Supervisory Committee 5 Male Directors 2 Female Directors （Proportion of female directors 28.6%） 3 Directors 1 Outside Director（Female） 1 Director / Audit & Supervisory Committee Member 2 Outside Directors / Audit & Supervisory Committee Members （of these, 1 Female） Control of each division including subsidiaries and affiliates ✓ Important decision-making ✓ Control each operation such as budget management ✓ Thorough risk recognition and recurrence prevention (Directors ・ Executive Officers） Introduction of performance-linked restricted share-based compensation (Directors ・ Executive Officers who are Audit & Supervisory Committee members） Introduction of restricted share- based remuneration Board of Directors Restricted share-based remuneration Audit & Supervisory Committee (Audit & Supervisory Committee members) General Meeting of Shareholders Audit Office Election/Discharge Election／Discharge Coordination Accounting Audit Propose／Report Propose /Report Direct and Supervise /Approval Direct and Supervise/ApprovalDaiei Kankyo Each Office Group’s Management Meeting • Risk Management & Compliance Committee • Rewards & Punishments Committee Sustainability Promotion Committee Propose/Report Direct and Supervise /Approval Coordination Board of Directors Directors(excluding Audit & Supervisory Committee members) Audit Important projects Discussion ／Report Selection／ Displacement ／Supervision Instruct Report Inquiry /Reply Inquiry／Reply Nomination & Compensation Advisory Committee Group Companies Headquarters Divisions Corporate Strategy Planning Division・Business Administration Division・Sales Division・Enterprise Division・Technical Department Representative Director Accounting Auditor Report Instruct Instruct Report Coordination Report Report Coordination Coordination 56
Page 57
©2026 DAIEI KANKYO All rights reserved. Human Capital Initiatives In order to achieve sustainable growth and increase corporate value for the Group, we recognize that expanding and diversifying human capital investment is an important management issue, and we have set targets to achieve this goal. Achievements and Targets of the Human Capital Initiatives of the Daiei Kankyo Group ✓ Proportion of female new graduates hired (university graduate and above) ✓ Proportion of female managers ✓ Rehiring rate of retirees ✓ Paid leave utilization rate ✓ Rate of uptake of childcare leave by male employees ✓ Percentage of high-stress employees in stress checks ✓ Wage gap between men and women (Men=100%) 57 36.8 ％ 3.7 ％ 70.8 ％ 77.7 ％ 93.2 ％ 10.9 ％ 50.0 ％ 4.8 ％ 73.7 ％ 76.0 ％ 102.9 ％ 10.5 ％ (As of Mar. 31, 2024) (As of Mar. 31, 2026) 33.3 ％ 4.3 ％ 80.0 ％ 74.9 ％ 90.9 ％ 10.9 ％ (As of Mar. 31, 2025) 66.0 ％ 73.9 ％72.3 ％ 30.0 ％ or above 5.0 ％ or above 70.0 ％ or above 90.0 ％ or above 90.0 ％ or above 10.0 ％ or less Targets (As of Mar. 31, 2027) 75.0 ％ or above Current state
Page 58
Initiatives for Coexistence with Local Communities INAC KOBE ／ Promoting development of women’s soccer ©2026 DAIEI KANKYO All rights reserved. Promoting a society in which women actively participate Based on the philosophy and vision of the WE-League, we will contribute to the realization and development of a society where diversity of dreams and lifestyles abound and each individual shines through women's soccer and sports. VISION ０１ VISION ０２ VISION ０３ The world’s best women’s soccer team The world’s best active women’s community The world’s best league value VISION ０4 Career creation for after retiring from professional sports Promoting coexistence with local communities Opening of “ROKKO i PARK” A total of 1.55 million visitors*1 since the reopening in March 2024 Helping to revitalize the local community Hosting community events Many people attended each events. 58 Photo by INAC KOBE LEONESSA * 2025/26 SOMPO WE League Championship in 2026 *New tenants will be released as needed after contracts are signed. Miki Recycle Center (held in June) Mie Recycle Center (held in November) *1： Total number of visitors as of the end of June 2026
Page 59
Efforts to Reduce CO2 Emissions ©2026 DAIEI KANKYO All rights reserved. We are working towards the government’s goal of carbon neutrality by 2050 by implementing climate change countermeasures based on the TCFD protocols and reducing greenhouse gas emissions in society as a whole. Long-term target Achieve carbon neutrality for the entire Daiei Kankyo Group by 2050 Medium-term target Achieve virtually zero CO2 emissions from electricity use for the entire Daiei Kankyo Group by 2030 We endorsed the TCFD in Jun. 2023 and disclosed 4 items based on the TCFD declaration. For details on the TCFD disclosure, please refer to the Daiei Kankyo website.(Japanese only) Contri- bution Ab- sorption <Daiei Kankyo Group’s actual greenhouse gas emissions*1> <Contribution to the reduction of greenhouse gas (CO2) emissions in society as a whole> ＜Greenhouse gas reduction targets＞ Initiatives Actual reduction in FY2024/3 (t-CO2) Actual reduction in FY2025/3 (t-CO2) Actual reduction in FY2026/3 (t-CO2) Thermal recycle Power generation and sale by waste incineration Approx. -19,000 Approx. -26,000 Approx. -24,000 Solar power generation Solar power generation and sale of electricity Approx. -2,000 Approx. -2,000 Approx. -3,000 Recycling Manufacturing and sales of RPF and recycled pallets Approx. -114,000 Approx. -117,000 Approx. -111,000 Forest management Fixation of CO2 emissions from approximately 8,170 ha of company-owned forests Approx. -44,000 Approx. -44,000 Approx. -44,000 Solar power generation RPF , Recycled pallets Company- owned forests FY2024/3 (t-CO2) FY2025/3 (t-CO2) FY2026/3 (t-CO2) Scope 1 261,601 252,315 253,212 Scope 2 25,013 19,766 18,678 Total 286,615 272,082 271,890 (Reference) Scope 3 223,306 184,299 223,562 Endorsement of TCFD and Information Disclosure 59 *1 The figures cover consolidated subsidiaries included in the Group for the relevant fiscal years; however, entities that became consolidated subsidiaries during the period are excluded.
Page 60
Efforts to Reduce CO2 Emissions ©2026 DAIEI KANKYO All rights reserved. CO2 emissions from electricity use to be practically zero （Start from Oct. 2023） Self-consumption of electric energy Kobe Fashion Plaza ✓ The power generated by the Miki Biomass Factory is supplied to various facilities in the Miki Recycle Center, and the surplusis sold ✓ As an initiative toward our medium-term target*1, we will buy back the environmental value and achieve practically zero CO2 emissions at Kobe Fashion Plaza*2 Unused energy certificates with tracking Providing energy to local community Providing environmental value Business A Business B Legend Power flow Environmental value flow Electric power companies, etc. Miki Biomass Factory Incineration and other heat treatment facility (power generation function) Power generation capacity: 11,700 kW Energy creation (heat and electricity)Miki Recycle Center Energy Value Creation by Miki Biomass Factory *1: See p. 59 *2: Location of Group headquarters 60
Page 61
©2026 DAIEI KANKYO All rights reserved. 61 Trends in Each Indicator （million yen） FY2025/３ Results FY2026/３ Results FY2027/３ Forecasts D-Plan 2028 Forecasts Net sales 80,178 87,855 93,900 100,000 Operating profit 21,548 22,189 24,300 25,000 Operating profit margin 26.9% 25.3％ 25.9％ 25.0％ EBITDA 27,824 31,908 37,100 38,000 EBITDA margin 34.7% 36.3％ 39.5％ 38.0% Earnings per share (yen) 145.54 159.93 164.25 169.46 Progress of the Medium-Term Management Plan, D-Plan 2028
Page 62
Progress of Strategy 62©2026 DAIEI KANKYO All rights reserved. Overview FY2026/３ Results Growth measures Contributes to earnings from D-Plan 2028 Onward Advance resource recycling systems Increase earnings in the recycling business through increased supply to the “artery” (e.g., manufacturing) market Plastic recycling facility of DINS Kansai Co., Ltd. began operations Expansion of “iCEP PLASTICS” services Maximize the value of final disposal sites (maximize sales per unit of capacity) Efforts are ongoing to secure high-value-added projects, such as for infrastructure development Deepen relationships with municipalities Expand the scope of transaction with municipalities we work with Expand business area to nationwide Increased the number of municipalities we work with by 25: 487 ⇒ 512 Expand business areas through M&A Actively execute projects that are expected to generate synergies (increase in volume received) Executed 6 projects in FY2026/３ Measure for FY2031/3 Increase capacity of incineration and other heat treatment facilities Started construction of 5 facilities to increase the capacity to 4,000 tons/day PPP (Obtained an installation permit for a facility in Aioi City, Hyogo Prefecture) Construction underway in Izumi and Nishinomiya Expand planned annual landfill volume and remaining capacity of final disposal sites Promote M&A in new areas to increase planned annual landfill volume Progress in the Kyushu area (Sukarabesakure Co., Ltd. and Hizen Kankyo Co., Ltd.) and the Tohoku area (acquisition of a final disposal site) Promote new construction and expansion plans in existing areas The 2nd stage controlled final disposal site in Gobo Recycle Center started services Expansion plans for each final disposal site are also underway Promote PPP Conclude a total of 7 agreements Obtained an installation permit for a facility in Aioi City, Hyogo Prefecture Progress is being made toward concluding a new agreement Measures for strengthening management foundation Promote human capital management Maximize employee engagement Working to improve the work environment by utilizing engagement surveys and other tools Improve Group management capabilities Further strengthen governance and risk management systems Announcement of executive appointments and transition to a new organizational structure following the appointment of new executive officers Progress of the Medium-Term Management Plan, D-Plan 2028
Page 63
©2026 DAIEI KANKYO All rights reserved. 63 FY2028/3 （initial plan） FY2031/3 （projected） FY2028/3 （revised plan） Positioning of the Medium-Term Management Plan: D-Plan 2028（Partially Revised） Net sales JPY64.9 bn EBITDA JPY19.8 bn JPY80.1bn JPY100.0 bn JPY140.0 bn FY2022/3 FY2025/3 JPY52.0 bn JPY87.8 bn JPY31.9 bn JPY100.0 bn JPY38.0 bn JPY93.9 bn FY2026/3 FY2027/3 （planned） ⚫ Expand supply of recycled products ⚫ Maximize value of final disposal sites ⚫ Grow by M&A ⚫ Construction and maintenance period for incineration and other heat treatment facilities including PPP (public private partnership) 2026–2028 (planned) ⚫ Increase capacity of incineration and other heat treatment facilities to 4,000 tons/day (also begin operations in PPP areas) ⚫ Expand remaining capacity of final disposal sites to 15 million m3 ⚫ Accelerate growth by M&A ⚫ Start CCU business Achieved all targets Building the foundation for FY2031/3 Accelerating contribution of growth investments to earnings 2029–2031D-Plan 2028 2026–2028 Current Medium-Term Management Plan 2023–2025 JPY36.0 bnJPY27.8 bn M&A Organic net sales Net sales CAGR 7.6% 11.9% EBITDA CAGR 10.9% 11.0% 2029–2031 (projected) Progress of the Medium-Term Management Plan, D-Plan 2028 JPY37.1 bn FY2028/3 planned Operating profit JPY25.0 bn Operating profit margin 25.0％
Page 64
Maximizing EPS（Partially Revised） 64©2026 DAIEI KANKYO All rights reserved. Net sales FY2025/3 FY2028/3 100.080.1 bn bn CAGR 7.6％ EBITDA margin FY2025/3 FY2028/3 34.7 ％ 35.0％ or higher EBITDA FY2025/3 FY2028/3 38.027.8 bn bn Operating profit FY2025/3 FY2028/3 25.021.5 bn Operating profit margin FY2025/3 FY2028/3 26.9 ％ Maintain 25.0％ or higher EPS FY2025/3 FY2028/3 169.46145.54 CAGR 10.9％ CAGR 5.1％ CAGR 5.2％ JPY JPY JPY bn JPY JPYJPY JPY JPY Progress of the Medium-Term Management Plan, D-Plan 2028
Page 65
Planned Increase in Volume Received（Partially Revised） 65©2026 DAIEI KANKYO All rights reserved. FY2025/3 （results） FY2028/3 （initial plan） Contaminated soil 330 kt Contaminated soil 760 kt Waste 2,330 kt Waste 2,190 kt Total volume received ＋280 kt Total volume received 3,100 kt Total volume received 2,530 kt Contaminated soil 460 kt Waste 2,350 kt Total volume received 2,810 kt FY2026/3 （results） Contaminated soil 560 kt Waste 2,610 kt Total volume received 3,170 kt FY2027/3 （planned） FY2028/3 （revised plan） Contaminated soil 560 kt Waste 2,720 kt Total volume received 3,290 kt Total volume received ＋110 kt Total volume received ＋360 kt Progress of the Medium-Term Management Plan, D-Plan 2028
Page 66
Cash Allocation（Partially Revised） 66©2026 DAIEI KANKYO All rights reserved. Cash on hand + Borrowings 3-year operating CF Growth investment ⚫ Utilization of cash on hand and interest-bearing debt with awareness of the cost of capital ⚫ Continued EBITDA growth ⚫ Cost reduction through insourcing, etc. JPY90.0 bn or more （＋JPY61.0 bn） M＆A ⚫ Active investment in projects that contribute to maximizing volume received, with a focus on waste management and recycling JPY55.0 bn or more （＋JPY45.0 bn） Investment in growth areas ⚫ Investment in focus areas such as incineration and other heat treatment facilities (including PPP) and final disposal sites Investment in maintenance and replacement ⚫ Investment in maintenance and replacement of existing facilities Repayment of borrowings Shareholder returns ⚫ Progressively increasing dividends with a dividend payout ratio of 33% or higher ⚫ Additional shareholder returns as profits grow ⚫ Any unspent amount of M&A allowance will be allocated to additional shareholder returns JPY85.0 bn JPY36.0 bn JPY14.0 bn JPY54.0 bn （＋JPY16.0 bn） JPY16.0 bn or more Progress of the Medium-Term Management Plan, D-Plan 2028
Page 67
97.67 112.04 136.44 145.54 159.93 2.23 3.03 2.98 3.53 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 0.00 50.00 100.00 150.00 200.00 FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 EPS PBR 11.5% 13.1% 14.0% 14.1% 13.7% 6.1% 4.1% 4.6% 5.5% 6.1% 0.0% 5.0% 10.0% 15.0% 20.0% FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 ROIC WACC 15.7% 15.2% 16.4% 15.8% 15.5% 7.7% 7.4% 8.2% 6.6% 7.5% 0.0% 5.0% 10.0% 15.0% 20.0% FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 ROE Cost of equity ©2026 DAIEI KANKYO All rights reserved. ✓ ROE・Cost of Equity ✓ ROIC・WACC ✓ PBR*1・EPS*2 *1: PBR (Price-to-book ratio) = Share price / Net assets per share *2: EPS (Earnings per share) = Net income / Average total number of shares outstanding during the period Note: Cost of equity and WACC are assumed based on expert opinion. (yen) 67 (ratio) FY2026/3 Results Trends in Each Indicator
Page 68
©2026 DAIEI KANKYO All rights reserved. FY2026/3 FY2025/3 Year on Year ROE*1 15.5% 15.8% (0.3pt) ROIC*2 13.7% 14.1% (0.4pt) Net D/E ratio*3 0.6× 0.1× ー Note: Details of adjustment process for each indicator are described on p. 69 and after *1: ROE = Profit attributable to owners of parent / equity (average of beginning and ending amounts) *2: ROIC＝NOPAT (Net Operating Profit After Taxes) / Invested capital at the beginning of the period, Invested capital = Non-current assets + Current assets (excluding cash and deposits) - Current liabilities (excluding interest-bearing debt(current)). Interest-bearing Debt ＝Bonds＋Debt＋Lease, etc. *3: Net D/E ratio ＝ (Interest-bearing debt ー cash & cash equivalent) / equity 68 FY2026/3 Results Various Indicators
Page 69
【Reference】 Reconciliation of ROE （million yen） FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Profit attributable to owners of parent 8,870 10,494 13,591 14,364 15,845 Equity*1 56,324 69,115 83,022 90,913 102,050 ROE 15.7% 15.2% 16.4% 15.8% 15.5％ ©2026 DAIEI KANKYO All rights reserved. *1: Equity is the sum of share capital, capital surplus, retained earnings, valuation difference on available-for-sale securities and remeasurements of defined benefit plans presented on our consolidated balance sheet (average of beginning and ending amounts). 69
Page 70
【Reference】 Reconciliation of ROIC Note: Balance sheet items are as of the beginning of the period （million yen） FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Operating profit 12,840 16,623 19,714 21,548 22,189 Amortization of goodwill 736 212 360 447 1,228 Effective tax rate 30.6% 30.6% 30.6％ 30.6% 30.6％ NOPAT (Net Operating Profit After Taxes) 9,419 11,681 13,928 15,260 16,246 Net property, plant and equipment 60,286 69,943 80,519 85,271 93,441 Total investments and other assets 17,977 16,529 16,620 20,687 21,579 Total current assets (excluding cash and deposits) 13,525 13,964 14,657 17,559 18,300 Total current liabilities (excluding interest-bearing debt) 9,625 11,000 12,242 15,295 14,910 Invested capital at the beginning of the period 82,164 89,436 99,555 108,222 118,410 ROIC 11.5% 13.1% 14.0% 14.1% 13.7％ ©2026 DAIEI KANKYO All rights reserved. 70
Page 71
【Reference】 Reconciliation of Net D/E Ratio （million yen） FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Net Interest-bearing debt 21,518 9,987 9,075 13,884 61,301 Equity 59,743 78,487 87,557 94,269 109,832 Net D/E ratio 0.4x 0.1x 0.1× 0.1× 0.6× ©2026 DAIEI KANKYO All rights reserved. 71
Page 72
【Reference】 Reconciliation of EBITDA （million yen） FY2022/3 FY2023/3 FY2024/3 FY2025/3 FY2026/3 Operating profit 12,840 16,623 19,714 21,548 22,189 Depreciation (excluding non- operating expenses) 6,249 5,413 6,190 5,828 8,491 Amortization of goodwill 736 212 360 447 1,228 EBITDA 19,826 22,250 26,265 27,824 31,908 EBITDA margin 30.5% 32.9% 36.0% 34.7% 36.3％ ©2026 DAIEI KANKYO All rights reserved. 72
Page 73
Disclaimer Our plans, forecasts, strategies, etc. described in this material are based on our management decisions obtained from currently available information. Actual results may differ from our forecasts depending on various risks and indeterminate factors. Contact: Corporate Strategy Planning Division Investor Relations/Sustainability Promotion Department TEL: +81-(0)78-857-6600 E-mail: ir@dinsgr.co.jp URL: https://www.dinsgr.co.jp/english/ Official Account Release of IR information