Daiseki Eco Solution : Plan to Meet Continued Listing Criteria for New Market Segment

To All Concerned Parties	December 6, 2021
Company:	Daiseki Eco. Solution Co., Ltd.
Representative:	Hiroya Yamamoto, President and
	Representative Director
(Securities code: 1712, First Section of the Tokyo Stock
Exchange and the Nagoya Stock Exchange)
Contact:	Naoto Chindo, Director and General
	Manager of Headquarters of Planning and
	Management

(Tel: [phone])

Plan to Meet Continued Listing Criteria for New Market Segment

Regarding the restructuring of the market segments operated by Tokyo Stock Exchange, Inc. scheduled for April 2022, Daiseki Eco. Solution Co., Ltd. ("the Company") today submitted an application to select the Prime Market for its listing. As the Company had not yet met the continued listing criteria for the Prime Market as of the transition date of record (June 30, 2021), it hereby notifies that it has prepared a plan to meet continued listing criteria for new market segment, the details of which are provided below.

1. Results of preliminary examination and current status concerning compliance with continued listing criteria for new market segment

On July 9, 2021, the Company was notified by the Tokyo Stock Exchange that only its tradable share market capitalization did not meet the continued listing criteria for the Prime Market.

	Tradable Shares	Tradable Share	Tradable Share	Average Daily
	(units)	Market Capitalization	Ratio	Trading Value
Status of the Company
(As of transition date of	61,445	¥5.9 billion (*1)	36.5%	¥70 million
record)
Listing criteria	20,000	¥10 billion	35.0%	¥20 million
Matter described in Plan		○
Current status	－	¥11.5 billion (*3)	39.5% (*2)	－

Given that its share price has increased and tradable share ratio has improved since the transition date of record, the Company believes that it now meets all continued listing criteria for the Prime Market, including tradable share market capitalization.

*1. Value calculated from the Company's tradable share ratio (36.5%), calculated based on the state of distribution of the Company's share certificates, etc. as understood by Tokyo Stock Exchange at the point of record (February 28, 2021) and other factors, and the daily average closing price (¥970) for April to June 2021.

*2. Calculated based on the state of distribution of the Company's share certificates, etc. as understood by the Company as of August 31, 2021.

*3. Calculated from the daily average closing price (¥1,742) for September to November 2021 and *2.

By steadily executing the plans and other matters stated in the attached "Plan to Meet Continued Listing Criteria for New Market Segment," the Company will strive to improve corporate value and maintain its compliance with the continued listing criteria.

1. Details of selection application
   The Company has applied for selection for the "Prime Market" of Tokyo Stock Exchange's new market segments.
2. Plan to meet continued listing criteria for new market segment Please refer to the attachment for details.

Daiseki

Plan to Meet Continued Listing Criteria for New Market Segment

• Medium-termBusiness Plan for FYE Feb 2022 to FYE Feb 2024

Daiseki Eco. Solution Co., Ltd.

Securities Code: 1712

Results of Preliminary Examination on Transition Date of Record and Current Status

• State of Compliance with Continued Listing Criteria and Challenges

On the transition date of record (June 30, 2021), the Company did not meet the continued listing criteria for the Prime Market only in terms of its tradable share market capitalization.

However, the Company's status has now changed, and it currently meets this criterion.

Tradable Share	Tradable	Grounds for Tradable Share Market
Capitalization Plan
Market
Share Ratio	（Total shares outstanding × Tradable share
Capitalization
	ratio × Share price)

Prime Market Continued Listing	¥10.0 billion	35.0%
Criteria
Transition date of record	¥5.9 billion	36.5%	16,827,120 shares × 36.5% × ¥903/share
(June 30, 2021）
Current status of the Company	¥11.5 billion	39.5%	16,827,120 shares × 39.5% × ¥1,742/share*

*The daily average closing price for September to November 2021 is used for the share price.

• Plan Period

The Company will continue to pursue the initiatives stated in this Plan to maintain the continued listing criteria for the Prime Market.

Daiseki Eco. Solution Co., Ltd.

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Numerical Targets of Medium-term Business Plan

• Thinking Behind Targets

In addition to business strategies, we will consider financial and capital strategies in an integrated manner and aim to increase corporate value.

Numerical targets for

FYE Feb 2024

Consolidated ▶ ¥20.6 bn net sales

Consolidated	▶ ¥3.0 bn
ordinary profit

ROE ▶ 11.4%

Tradable ▶ 42% Share Ratio

Trend in net sales, ordinary profit, ROE

(Net sales: million yen)			Net sales		Ordinary profit	(Ordinary profit: million yen)
30,000								ROE	11.4%	7,000
							10.4%
			9.4%
					6,000
25,000
5.4%							5,000
20,000
								4,000
15,000
								3,000
10,000
							2,000
5,000
								1,000
0										0
FY21 Feb	FY22 Feb	FY23 Feb	FY24 Feb
			(projected)	(projected)	(projected)

Daiseki Eco. Solution Co., Ltd.

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