Completion of Large Soil Contamination Projects and Shift to Order-Solicitation Phase

「The soil contamination treatment business operated by 株式会社ダイセキ環境ソリューション performed steadily, with both revenue and profit exceeding plan due to large factory projects in the Kanto region carried over from the previous fiscal year and large factory projects in the Chubu region ordered during the current fiscal year, among other factors.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business faced challenges including higher construction material prices, higher labor costs and tight labor supply and demand due to a declining working population, partly as a result of heightened tensions in the Middle East. However, government construction investment remained solid and private-sector construction investment continued to trend upward. Revenue increased as large, high-value-added projects in the Kanto region continuing from the previous fiscal year and large infrastructure development projects in the Chubu region progressed steadily.」

「Sales increased as large-scale, high-value-added projects in the Kanto area that have continued from the previous fiscal year and large-scale infrastructure development projects in the Chubu area progressed smoothly.」

「Despite challenges including higher construction material prices and labor costs, Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business exceeded plan and reported higher revenue and higher profit, supported by solid government construction investment, an upward trend in private-sector construction investment and contributions from large, high-value-added projects in the Kanto region that continued from the previous fiscal year.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business remained resilient despite the Bank of Japan's rate hike. Although large-scale projects involving the removal of underground waste from factory sites and contaminated soil declined from the previous year, the company won high-value-added projects expected to continue into the following fiscal year and beyond, including large-scale contaminated soil treatment and construction projects in the Kanto region. As a result, revenue and operating profit exceeded plan and performance remained solid.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business reported substantially lower revenue and lower profit because the large-scale soil treatment projects won in the previous year came to an end. However, the company continued to actively pursue consulting-based sales aimed at expanding orders for high-value-added projects. In the resource recycling business, volumes of gypsum board brought in remained solid, as did the volumes of waste paper and general waste processed.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business actively pursued consulting-based sales to expand orders for high-value-added projects, but reported substantially lower revenue and lower profit because the large-scale soil treatment projects won in the previous year came to an end.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business benefited from overall construction investment remaining on an upward trend, supported by a recovery in private-sector capital investment as the external environment improved and solid public investment. Large-scale soil treatment projects in each region made a significant contribution to performance as the company focused on winning high-value-added projects and consulting-based sales.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to operate in a challenging environment. Overall construction investment remained on an upward trend, supported by a recovery in private-sector capital investment as the external environment improved and solid public investment, but higher raw material prices and shortages of construction engineers and workers continued to pose risks. In this environment, large-scale soil treatment projects in the Chukyo, Kanto and Kansai regions made a significant contribution to performance as the company continued to focus on winning high-value-added projects and consulting-based sales in its soil contamination investigation and treatment business.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business reported substantially higher revenue and higher profit because large-scale soil treatment projects in the Chukyo, Kanto and Kansai regions, won through an active focus on high-value-added projects and consulting-based sales, made a significant contribution to performance.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business reported substantially higher revenue and higher profit because large-scale soil treatment projects in the Chukyo, Kanto and Kansai regions, won through an active focus on high-value-added projects and consulting-based sales, made a significant contribution to performance.」

「The waste gypsum board recycling business performed well throughout the year, with revenue and operating profit increasing year on year. However, the core soil contamination investigation and treatment business reported lower revenue and lower profit because revenue from large-scale infrastructure development projects fell substantially below the initial plan and higher freight rates and other factors pressured profit.」

「The waste gypsum board recycling business remained solid, with revenue and operating profit increasing year on year. However, the soil contamination investigation and treatment business recorded lower revenue and lower profit because revenue and profit from large-scale infrastructure development projects fell substantially below the initial plan.」

「Against this backdrop, the company continued to focus on winning high-value-added projects and consulting-based sales. However, in the soil contamination investigation and treatment business, revenue and profit from the large-scale infrastructure development projects included in the initial plan declined because the volume of soil brought in decreased and construction was delayed. In general projects as well, fewer orders and deteriorating profit margins resulted in substantially lower revenue and lower profit year on year.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to face intense price competition in major metropolitan areas, but the company actively pursued high-value-added projects through consulting-based sales that leveraged its strengths. However, orders for the large infrastructure development and construction projects that had made a significant contribution to performance in the previous year entered a lull and remained sluggish. Although the waste gypsum board recycling business operated by a subsidiary of Daiseki Eco. Solution Co., Ltd. remained solid, it was insufficient to cover the profit target for the soil contamination treatment-related business, and profitability deteriorated.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to face intense price competition in major metropolitan areas, but the company actively pursued high-margin projects through consulting-based sales that leveraged its strengths. It also improved profit margins by actively winning large infrastructure development projects and urban redevelopment projects, securing higher revenue and higher profit.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to face weak market conditions and sluggish prices. However, as the impact of COVID-19 was largely eliminated, the company was able to step up sales activities, win large infrastructure development projects and develop consulting-based sales that leveraged its strengths. It improved profit margins by differentiating itself from competitors and secured higher revenue and higher profit.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to face sluggish treatment prices and weak profitability. However, unlike in the same period of the previous year, the impact of COVID-19 on sales activities had been largely eliminated, making proactive sales activities possible. As a result, the company focused on upstream sales, including winning large infrastructure development projects and completing multiple construction projects. Sales activities prioritized profit margins over revenue, raising the margin and securing higher revenue and higher profit.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business continued to face sluggish treatment prices and weak profitability. However, unlike in the same period of the previous year, the impact of COVID-19 on sales activities had been largely eliminated, making proactive sales activities possible. As a result, the company won more difficult projects, including consulting projects, which improved profitability and led to higher revenue and higher profit.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business, whose profitability had deteriorated because order prices had fallen from the previous consolidated fiscal year, faced a sharp contraction in the market during the first half of the current consolidated fiscal year due to the so-called COVID shock. This further reduced order prices and significantly worsened the external environment. Profitability in the general soil contamination treatment business deteriorated particularly sharply, resulting in a lower profit margin. However, from the second half of the fiscal year, as sales activities began returning to normal, the company resumed winning high-value-added projects, including in its strength, the consulting business. Overall profitability began to improve, and performance recovered after bottoming out in the second quarter.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business faced a sharp contraction in the market due to the so-called COVID shock. This significantly worsened the external environment, including through lower order prices, and substantially reduced its profit margin. However, as sales activities began returning to normal, the company resumed winning projects, including in its strength, the consulting business. Overall profitability began to improve, and performance began to recover after bottoming out in the second quarter.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business faced a sharp contraction in the market due to the so-called COVID shock. This significantly worsened the external environment, including through lower order prices, and substantially reduced its profit margin.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business was affected by some general contractors suspending on-site work to prevent the spread of COVID-19, although the direct impact was limited. However, the soil contamination treatment market continued to contract after the completion of construction related to the Tokyo Olympics, and the company secured higher revenue and profit but margins deteriorated because it won relatively few high-value-added projects. The effects of COVID-19 also gradually emerged, including delays in winning new projects because restrictions on going out prevented sales activities.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business, whose profitability had deteriorated because order prices had fallen from the previous fiscal year, operated in an environment of weak demand but increased the proportion of high-value-added projects by actively winning difficult-to-treat projects and disaster-response projects. In addition, the company expanded sales in the Kanto region and reduced costs by bringing the Yokohama Ebisu Recycling Center, opened in December 2018, into full operation. At the Yatomi Recycling Center, the increase in soil washing facility utilization generated greater treatment cost savings, enabling the company to improve its profit margin.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business, whose profitability had deteriorated because order prices had fallen from the previous fiscal year, operated in an environment of weak demand but increased the proportion of high-value-added projects by actively winning difficult-to-treat projects and disaster-response projects. In addition, the company expanded sales in the Kanto region through the Yokohama Ebisu Recycling Center, opened in December 2018, and increased utilization of its soil washing facilities in Aichi Prefecture. These efforts reduced treatment costs and led to improved profit margins.」

「Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business worked to improve its profit margin by pursuing orders with high added value while market conditions remained weak. It also sought to expand its business in the Kanto region, using the Yokohama Ebisu Recycling Center, which opened in December of the previous year, as a base.」

「The soil contamination investigation, analysis and treatment business, which reported substantially lower revenue and lower profit last fiscal year due in part to lower order prices, gradually began to recover as the company won more specialized projects, reduced costs and benefited from the opening of the new Yokohama Ebisu Recycling Center.」

「Next, although Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment business, where profitability had deteriorated because order prices fell from the beginning of the year, continued to operate in a difficult environment, signs of improving profitability began to emerge as the results of strengthening direct sales to customers and reducing costs gradually became apparent.」

「Conversely, although Daiseki Eco. Solution Co., Ltd.'s soil contamination treatment-related business secured sufficient volumes of contracted work, profitability deteriorated as order prices fell from the beginning of the year. As performance continued to fall below plan, the company revised its full-year earnings forecast downward.」

「Meanwhile, in the soil contamination investigation, analysis and treatment business and the cleaning business for large tanks and other facilities, many projects were scheduled for completion in the second half of the fiscal year because of delays in order-related construction and other factors, resulting in performance below plan.」

「Meanwhile, in the soil contamination investigation, analysis and treatment business operated by consolidated subsidiary Daiseki Eco. Solution Co., Ltd., the increase in the utilization rate of the Yatomi Recycling Center, completed at the beginning of the fiscal year, lagged behind plan, while higher fixed costs associated with the center pressured profit. In addition, the second half of the fiscal year was a lull between orders for large projects, and revenue remained sluggish. Consequently, although the company secured a slight increase in revenue, operating profit fell by more than 10%, and both revenue and profit fell substantially below the initial forecasts.」

「Within the Group, only Daiseki Eco. Solution Co., Ltd., whose principal business is soil contamination treatment, reported lower revenue and lower profit. The increase in the utilization rate of its new soil decontamination plant, completed at the beginning of the fiscal year, was delayed, start-up costs exceeded expectations, and revenue fell below plan as the company entered a lull between orders.」

「Meanwhile, in the soil contamination investigation, analysis and treatment business, revenue recognition for orders received during the fiscal year was expected to be concentrated in the fourth quarter, resulting in lower revenue and lower profit in the first quarter. However, the company expects orders to increase as large domestic projects gradually get underway in the second half of the fiscal year. The Yatomi Recycling Center, the first capital investment aimed at expanding soil contamination treatment capacity, was completed and began operations in Aichi Prefecture in March 2017.」

「Meanwhile, the soil contamination investigation, analysis and treatment business operated by consolidated subsidiary Daiseki Eco. Solution Co., Ltd. reported lower revenue and lower profit as large projects received in the previous fiscal year came to an end. However, with a number of large domestic projects expected to commence and demand projected to expand, the company is focusing on winning orders while making proactive capital investments.」

「The soil contamination survey, analysis and treatment business posted a substantial decline in sales and profits due to the reaction following the large projects that arose in the previous fiscal year. However, capital investment and order solicitation activities aimed at the next fiscal year onward became more active, establishing a path toward future business expansion.」

「The soil contamination survey, analysis and treatment business had nearly completed the large projects that arose in the previous fiscal year and entered an order solicitation phase aimed at the second half onward. As a result, sales and profits declined, but the order solicitation activities were gradually beginning to produce results.」

「The soil contamination survey, analysis and treatment business completed the large projects that arose in the previous fiscal year and entered an order solicitation phase aimed at the second half onward. As a result, sales and profits declined.」