Business ModelValues

The DCM Value Creation Story
Value offeredby DCM
Materiality groups

くらしの夢をカタチにBusiness development moving forward

Store strategy

Globalization ofbusiness conditions,homogenization ofthe home
improvement retailer
business

Move from a company that sells products
to a company that comprehensively
provides fulﬁlling lifestyles
Taking on the challenge of creating a new generationof home improvement retailers

Supply chain which can put
information to good use and which
can stably supply products

Opportunities
Permeation of DIY inlife and living
Growing
expectations as social
infrastructure

Better in-housebrand productdevelopment
structureAfﬂuent lifestyles forcustomers accented with DIY
Offering of products andservices that give consideration
to the environment andresource conservation, lifestyle
proposals• Construction of supply chain that gives
consideration to the environment and society

Products and services fordisaster prevention and damage
limitation, support for recovery

Creation ofour own unique
BOPIS* style

Financial Highlights

Sustainably creating both corporate
and shareholder value

Important bases supporting
living in communities whereaging population and the fallingbirthrate is progressing• Creation of a workplace where a diverse arrayof human resources can be active andrespecting human rights~Revitalizing stores and expanding the areas in which
we do business~

Embrittlement ofgrowth prerequisites

Nationwide network of over 670 storesthat function as information hubs andallow us to cooperate with communities• Support of strong community
resilience against disasters

Social infrastructure that can stably
supply the products necessary forlife, living and work

Risk Management and Compliance

Ability to develop unique products that giveconsideration to people and the environment
and that can be found nowhere elseStructural changes tosociety and customer
needs

Further pursuitof low-cost
operation

Transformation into an integrated
business that comprehensively makes
people’s lives more comfortable• Deepening of relationships withcustomers with whom we create
new value[Valuable to society and theenvironment]

Corporate Governance

Database rooted in know-how andcommunities to meet DIY needs• Promotion of circular economy anddecarbonization through products and stores

A sense of purpose andmotivation in working at DCM
developed through the feelingsof gratitude from customers

SustainabilityThreatsExpanding
the areas in which
we do businessthrough promotionof mergers andacquisitions• Achievement of a comfortable andsustainable community life and living

Medium-Term Management Plan

The unity of our highly-motivatedapproximately 20,000 employees[Valuable to DCM]
Products and services that arecommunity-based and conceived
from a customer’s point of view

Management
resources
Medium to longterm threats
and opportunities

Message from the President

Do Create Mystyle
We will create new products and services for our customers, flexibly respond tochange, unite with the community, and achieve the form of an indispensable
company that serves society.

Business Model

A value creating business that achieves a more comfortable life and living through DIY• Stronger corporate governanceBusiness Strategy* BOPIS : Buy Online Pick-up In Store• Regional and community development

Financial foundation, which has theﬁnancial muscle necessary formergers, acquisitions and investments
and varied procurement methods
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DCM Holdings Co., Ltd. Integrated Report 2023

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Business ModelValues

DCM Management Resources

Business Model
Message from the President* Professional DIY advisors certified by the Japan DIY•HC AssociationWe want to deliver “valuable products” offering “satisfactory quality” at a “reasonable price,” and basedon this concept, we are focused on highly original private brand (PB) products that contribute toenriching customer lives. To this end, we consider raw materials, packaging, and other elements that arepeople- and eco-friendly, and have established an organization and human resources capable ofpromoting sustainable procurement and managing quality and intellectual property throughout thesupply chain.

12DCM Holdings Co., Ltd. Integrated Report 2023

We collaborate with approximately 1,600 business partners in product development, supply, logistics,and other business activities to establish a system enabling us to stably provide products nationwide.
Further, through collaborations with leading business partners in each field, we are able to collect thelatest information on society, markets, products, and other factors, facilitating rapid responses to changes.

Financial Highlights

Ability to develop unique and original productsthat are people- and eco-friendly

A supply chain able to ensure a dependable supplyof products and relevant data

Risk Management and ComplianceIn addition to having the largest number of DIY advisors* in the industry who possess expert DIY
knowledge and skills enabling them to comprehensively support customer DIY activities, we strive tosatisfy customer DIY needs and uncover potential demand by leveraging know-how accumulated overmany years. Based on the characteristics of each region and the results of proprietary data analysis, wealso respond to customer needs and expectations with sales floors that offer product lineups optimized
for each season.

Corporate GovernanceExpertise in meeting DIY-related needs anddatabases derived from local communities

We cooperate with customers and their immediate communities to ascertain customer and community
lifestyles and needs, while making new proposals and providing information with regard to eachproblem faced by customers through a nationwide network of over 670 stores (excluding equity–method
affiliate Keiyo Co., Ltd.). Each store has different role and concept depending on whether they are large,
medium, or small in size, and provide services that make full use of DX. We respond to customer needs
and expectations by enabling them to use these different types of stores as necessary in accordancewith their requirements.

Sustainability

Under the long-term business concept “transforming into an integrated business that comprehensively
makes people’s lives more comfortable,” to realize the Company Philosophy ”Do Create Mystyle,”
approximately 20,000 employees work together to continue creating new value for society, customers,
and communities. Our core value lies in human resources and organizational capabilities that enable us
to collaborate as a group of DIY professionals with high aspirations and clear vision.

A nationwide network of over 670 stores that can gather andprovide information in collaboration with their communities

Medium-Term Management Plan

A workforce of about 20,000
highly motivated employees

Established access to financing from diverse
sources for funds needed for investment and M&As
In addition to new business format developments that require capital investment and upfront
investment for business expansion, including new store openings, store renovations, and systemdevelopments through a financial base offering diverse procurement methods, we proactively invest via
M&A in the home improvement retail business and other areas with growth potential.

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