Interim report
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 . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) FASF MEMBERSHIP August 10 , 2026 Tokyo Stock Exchange https://www.dinsgr.co.jp/english/ Company name : Daiei Kankyo Co. , Ltd. Listing : Securities code : 9336 URL : Representative : Inquiries : Telephone : Morihiko Shimoda , President and Representative Director Kengo Otsuka , Junior Managing Executive Officer / General Manager of Corporate Strategy Planning Division + 81-78-857-6600 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes Yes ( for institutional investors and analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 June 30 , 2025 24,136 20,020 20.6 3.4 5,598 4,260 31.4 ( 16.4 ) Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : 5,580 30.7 4,271 ¥ 4,006 million 3,548 22.1 ( 20.4 ) 2,906 ( 16.9 ) [ 57.5 % ] ¥ 2,543 million [ ( 32.6 ) % ] Basic earnings per share Diluted earnings per share Three months ended June 30 , 2026 Yen 35.54 29.51 Yen June 30 , 2025 Notes : Diluted earnings per share are not presented because there were no potential shares . ( 2 ) Consolidated financial position As of Total assets Net assets Equity - to - asset ratio Millions of yen 250,826 260,191 Millions of yen % 114,170 44.2 114,064 42.2 June 30 , 2026 March 31 , 2026 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 110,901 million ¥ 109,832 million
Page 2
2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 24.50 – 28.50 53.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 27.50 – 27.50 55.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 46,300 15.8 11,300 26.5 10,700 18.3 7,100 16.8 71.11 Fiscal year ending March 31, 2027 93,900 6.9 24,300 9.5 23,100 3.0 16,400 3.5 164.25 Note: Revisions to the earnings forecasts most recently announced: None
Page 3
* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 99,892,900 shares As of March 31, 2026 99,892,900 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 45,423 shares As of March 31, 2026 44,976 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 99,847,526 shares Three months ended June 30, 2025 98,502,040 shares * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: Yes (voluntary) * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future. (How to obtain supplementary material on financial results) The supplementary material on financial results is disclosed on TDnet and the Company’s website on the same day as the financial results reports.
Page 4
1 Attached Material Contents 1. Overview of operating results, etc. ...................................................................................................................... 2 (1) Overview of quaterly operating results ....................................................................................................... 2 (2) Overview of quarterly financial position .................................................................................................... 3 (3) Explanation of consolidated earnings forecasts and other forward-looking statements ............................. 4 2. Quarterly consolidated financial statements and significant notes thereto .......................................................... 5 (1) Quarterly consolidated balance sheet ......................................................................................................... 5 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ............................................................................................................................... 7 Quarterly consolidated statement of income (cumulative) ......................................................................... 7 Quarterly consolidated statement of comprehensive income (cumulative) ................................................ 8 (3) Notes to quarterly consolidated financial statements .................................................................................. 9 Notes on going concern assumption ........................................................................................................... 9 Notes when there are significant changes in amounts of shareholders’ equity ........................................... 9 Notes to quarterly consolidated statement of cash flows ............................................................................ 9 Notes to segment information, etc. ............................................................................................................. 9
Page 5
2 1. Overview of operating results, etc. (1) Overview of quaterly operating results During the three months ended June 30, 2026, the Japanese economy remained unstable. This was due to the adverse effect on corporate earnings conditions of rising fuel and raw material costs caused by the situation in the Middle East, as well as Japan’s increasing long-term interest rates associated with hikes in its benchmark interest rate, which weighed on capital investment activities. On the other hand, supported by positive factors including wage increases and the Japanese government’s growth-oriented investments and measures against inflation, the economy showed a moderate trend toward improvement. Under these circumstances, the Group recorded higher revenues as a result of the contribution of Sukarabesakure Co., Ltd., which became a consolidated subsidiary in November 2025, to a higher volume of waste received, in addition to continued efforts to receive orders for infrastructure development projects mainly in the Kansai area and to promote the advancement of a resource recycling system with partner companies and municipalities. In terms of profit, although there was an increase in costs such as depreciation and labor costs, it still increased primarily due to higher waste volumes received at our final disposal sites. For the above reasons, our consolidated financial results for the three months ended June 30, 2026 were as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase or decrease Percentage change (%) Net sales 20,020 24,136 4,116 20.6% Operating profit 4,260 5,598 1,338 31.4% Operating profit margin (%) 21.3% 23.2% 1.9pt － Ordinary profit 4,271 5,580 1,309 30.7% Profit attributable to owners of parent 2,906 3,548 642 22.1% EBITDA 6,138 8,778 2,640 43.0% EBITDA margin (%) 30.7% 36.4% 5.7pt － Notes: 1. EBITDA = operating profit + depreciation (excluding non-operating expenses) + amortization of goodwill 2. EBITDA margin = EBITDA / net sales The financial results by segment are as follows. Waste-related Business (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase or decrease Percentage change (%) Net sales 19,345 23,414 4,069 21.0% Segment profit 4,350 5,601 1,250 28.7% In Waste management and recycling, the volume of waste received was 682 thousand tons (up 27.0% year on year). Net sales increased mainly due to a higher volume of waste received in the Kyushu area driven by the contribution of our consolidated subsidiary Sukarabesakure Co., Ltd., as well as steady orders for infrastructure development projects. In Soil remediation, the volume of contaminated soil received was 158 thousand tons (up 200.6% year on year). This resulted in an increase in net sales, led by the expansion of contaminated soil volume received at our consolidated subsidiary Geo-Re Japan Inc., at which a new contaminated soil treatment facility commenced operations in September 2025. In Facility construction and administration, sales increased as a result of the contribution of KOUKI CORP., which was made a consolidated subsidiary in January 2026, and an increase in orders for demolition work by our consolidated subsidiary Kaisei Co., Ltd.
Page 6
3 In terms of profit, it increased as a result of the expansion of waste volume received at our final disposal sites. Other Businesses (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase or decrease Percentage change (%) Net sales 674 721 46 7.0% Segment profit (loss) (70) 14 85 － Net sales increased due to an increase in the number of recycled plastic pallets sold. In terms of profit, it increased due to higher sales prices of aluminum pellets driven by market trends, as well as a reduction in production costs resulting from the optimization of production volumes. (2) Overview of quarterly financial position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Increase or decrease Percentage change (%) Assets 260,191 250,826 (9,365) (3.6%) Liabilities 146,127 136,656 (9,470) (6.5%) Net assets 114,064 114,170 105 0.1% Equity-to-asset ratio (%) 42.2% 44.2% 2.0pt － Assets Total assets as of June 30, 2026 were ¥250,826 million (down ¥9,365 million from the end of the previous fiscal year). Current assets were ¥64,151 million (down ¥10,903 million from the end of the previous fiscal year). This was mainly due to a ¥9,930 million decrease in cash and deposits. Non-current assets were ¥186,674 million (up ¥1,538 million from the end of the previous fiscal year). This was primarily due to an increase of ¥2,037 million in construction in progress associated with the acquisition of a final disposal site (currently Iwaki Recycle Center of Daiei Kankyo Co., Ltd.) in April 2026, leading to a ¥1,791 million increase in property, plant and equipment. Liabilities Liabilities as of June 30, 2026 were ¥136,656 million (down ¥9,470 million from the end of the previous fiscal year). Current liabilities were ¥31,595 million (down ¥3,188 million from the end of the previous fiscal year). This was mainly due to a ¥2,623 million decrease in income taxes payable. Non-current liabilities were ¥105,060 million (down ¥6,282 million from the end of the previous fiscal year). This was primarily due to a ¥6,138 million decrease in long-term borrowings. Net assets Net assets as of June 30, 2026 were ¥114,170 million (up ¥105 million from the end of the previous fiscal year). This was mainly due to a ¥703 million increase in total shareholders’ equity alongside other net positive adjustments being offset by a ¥963 million decrease in non-controlling interests as a result of the acquisition of additional shares of Hizen Kankyo, Co., Ltd. to make it a wholly owned subsidiary.
Page 7
4 (3) Explanation of consolidated earnings forecasts and other forward-looking statements There are no changes to the half-year and full-year consolidated earnings forecasts announced on May 14, 2026.
Page 8
5 2. Quarterly consolidated financial statements and significant notes thereto (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 52,298 42,367 Notes and accounts receivable - trade 14,262 14,147 Securities 3,488 3,534 Finished goods 217 247 Work in process 491 740 Raw materials and supplies 705 883 Other 3,606 2,244 Allowance for doubtful accounts (14) (13) Total current assets 75,055 64,151 Non-current assets Property, plant and equipment Buildings and structures, net 30,246 30,167 Machinery, equipment and vehicles, net 26,245 26,716 Final disposal sites, net 20,552 19,919 Land 22,773 22,827 Construction in progress 19,784 21,821 Other, net 2,169 2,111 Total property, plant and equipment 121,771 123,563 Intangible assets Goodwill 37,047 36,520 Other 460 442 Total intangible assets 37,508 36,963 Investments and other assets Investment securities 13,913 14,443 Retirement benefit asset 276 293 Deferred tax assets 1,236 1,138 Other 11,063 10,875 Allowance for doubtful accounts (634) (603) Total investments and other assets 25,856 26,148 Total non-current assets 185,136 186,674 Total assets 260,191 250,826
Page 9
6 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 4,117 4,361 Short-term borrowings 80 77 Current portion of bonds payable 510 360 Current portion of long-term borrowings 18,198 17,440 Income taxes payable 4,657 2,034 Provision for bonuses 1,243 816 Asset retirement obligations 305 302 Provision for demolition and removal 240 240 Other 5,431 5,962 Total current liabilities 34,784 31,595 Non-current liabilities Bonds payable 375 335 Long-term borrowings 96,463 90,325 Deferred tax liabilities 5,358 5,333 Retirement benefit liability 502 524 Asset retirement obligations 7,480 7,418 Other 1,162 1,124 Total non-current liabilities 111,343 105,060 Total liabilities 146,127 136,656 Net assets Shareholders’ equity Share capital 5,907 5,907 Capital surplus 14,035 14,035 Retained earnings 88,353 89,056 Treasury shares (161) (161) Total shareholders’ equity 108,135 108,838 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,246 1,639 Remeasurements of defined benefit plans 451 423 Total accumulated other comprehensive income 1,697 2,063 Non-controlling interests 4,232 3,268 Total net assets 114,064 114,170 Total liabilities and net assets 260,191 250,826
Page 10
7 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income (cumulative) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 20,020 24,136 Cost of sales 11,710 13,744 Gross profit 8,309 10,391 Selling general and administrative expenses 4,049 4,793 Operating profit 4,260 5,598 Non-operating income Interest income 48 80 Dividend income 11 42 Share of profit of entities accounted for using equity method 20 43 Foreign exchange gains 2 49 Rental income 77 78 Proceeds from sale of goods 48 48 Other 71 69 Total non-operating income 279 411 Non-operating expenses Interest expenses 107 304 Amortization of share issuance costs 38 － Rental expenses 78 74 Cost of sale of goods 42 41 Other 1 8 Total non-operating expenses 267 429 Ordinary profit 4,271 5,580 Extraordinary income Gain on sale of non-current assets 8 18 Gain on sale of investment securities 492 － Subsidy income 98 － Total extraordinary income 599 18 Extraordinary losses Loss on sale of non-current assets 0 3 Loss on retirement of non-current assets 0 56 Loss on tax purpose reduction entry of non-current assets 97 － Provision for demolition and removal 240 － Other － 18 Total extraordinary losses 338 77 Profit before income taxes 4,532 5,522 Income taxes - current 1,600 1,976 Income taxes - deferred 25 (94) Total income taxes 1,626 1,881 Profit 2,906 3,640 Profit (loss) attributable to non-controlling interests (0) 91 Profit attributable to owners of parent 2,906 3,548
Page 11
8 Quarterly consolidated statement of comprehensive income (cumulative) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 2,906 3,640 Other comprehensive income Valuation difference on available-for-sale securities (348) 391 Remeasurements of defined benefit plans, net of tax (15) (27) Share of other comprehensive income of entities accounted for using equity method 0 1 Total other comprehensive income (363) 366 Comprehensive income 2,543 4,006 Comprehensive income attributable to Comprehensive income attributable to owners of the parent 2,543 3,914 Comprehensive income attributable to non-controlling interests (0) 91
Page 12
9 (3) Notes to quarterly consolidated financial statements Notes on going concern assumption Not applicable. Notes when there are significant changes in amounts of shareholders’ equity Not applicable. Notes to quarterly consolidated statement of cash flows Quarterly consolidated statements of cash flows have not been prepared for the first quarter of the current fiscal year. Depreciation (including amortization related to intangible assets excluding goodwill) and goodwill amortization for the first quarter of the fiscal year under review are as follows. (Millions of yen) For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) For the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Depreciation 1,798 2,639 Goodwill amortization 158 615 Notes to segment information, etc. I For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information regarding net sales and profit or loss by reportable segment (Millions of yen) Reportable segment Other (Note 1) Total Adjustments (Note 3) Amount recorded in the quarterly consolidated statement of income (Note 4) Waste-related Business Net sales Net sales to external customers 19,345 674 20,020 － 20,020 Intersegment net sales or transfers 23 48 72 (72) － Total 19,369 723 20,092 (72) 20,020 Segment profit (loss) 4,350 (70) 4,280 (19) 4,260 Notes: 1. The Other Businesses category is a business segment that is not included in the reportable segment, and represents the Valuable Resource Recycling Business and Sports Promotion Business. 2. Expenses related to the administration department and other head office expenses that are not attributed to reportable segments are allocated to each business segment on a reasonable allocation basis. 3. The adjustment in segment profit (loss) consists of consolidation adjustments between segments. 4. Segment profit (loss) has been reconciled with operating profit in the quarterly consolidated statement of income. 2. Impairment losses on non-current assets or goodwill, etc. by reportable segment (Significant impairment losses on non-current assets) Not applicable. (Significant changes in amount of goodwill) In the Waste-related Business segment, three companies—including Hizen Kankyo Co., Ltd.— were made consolidated subsidiaries through share acquisition. The amount of goodwill due to this matter was 1,597 million yen in total. (Significant gain on bargain purchase) Not applicable.
Page 13
10 II For the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information regarding net sales and profit or loss by reportable segment (Millions of yen) Reportable segment Others (Note 1) Total Adjustment (Note 3) Amount recorded in the quarterly consolidated statement of income (Note 4) Waste-related Business Net sales Net sales to external customers 23,414 721 24,136 － 24,136 Intersegment net sales or transfers 19 49 69 (69) － Total 23,434 771 24,205 (69) 24,136 Segment profit 5,601 14 5,616 (17) 5,598 Notes: 1. The Other Businesses category is a business segment that is not included in the reportable segment, and represents the Valuable Resource Recycling Business and Sports Promotion Business. 2. Expenses related to the administration department and other head office expenses that are not attributed to reportable segments are allocated to each business segment on a reasonable allocation basis. 3. The adjustment in segment profit consists of consolidation adjustments between segments. 4. Segment profit has been reconciled with operating profit in the quarterly consolidated statement of income. 2. Impairment losses on non-current assets or goodwill, etc. by reportable segment (Significant impairment losses on non-current assets) Not applicable. (Significant changes in amount of goodwill) Not applicable. (Significant gain on bargain purchase) Not applicable.