Results of Operations for the Fiscal Year Ended
March 31, 2022 (Fiscal 2022)

May 23, 2022
DAIKEN CORPORATION(Security code:7905)

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Contents
1. Fiscal 2022 Financial Results■ Fiscal 2022 Market Environment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4■ Fiscal 2022 Financial Results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5■ Fiscal 2022 Business Segment Results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6■ Fiscal 2022 Changes in Operating Profit・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7■ Fiscal 2022 Market Category Sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8■ Fiscal 2022 Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
2. Review of the Previous Medium-Term Management Plan GP25 2nd Stage■ Review of the Previous Medium-Term Management Plan GP25 2nd Stage (1) - (3)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11■ When to Announce the Medium-Term Management Plan GP25 3rd Stage ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14
3. Fiscal 2023 Forecast■ Fiscal 2023 Market Environment Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・16■ Fiscal 2023 Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17■ Shareholder Returns and Dividends・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18■ Fiscal 2023 Forecast of Changes in Operating Profit・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 19■ Fiscal 2023 Business Segment Results Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20■ 2023 Market Category Sales Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21■ Fiscal 2023 Forecast for Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22

4. ESG Topics■ External ESG Rating・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・24

5. Financial Information■ Fiscal 2022 Consolidated Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26■ Fiscal 2022 Consolidated Statement of Income･・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27■ Fiscal 2022 Consolidated Statement of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・････・・・･・・・・・・・・・・・・・・・・・・・ 28■ Initiatives for Reduction of Cross-Shareholdings・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 29

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Fiscal 2022

Financial Results

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3

Fiscal 2022 Market Environment
Domestic home market◆ Demand for products for the new home and renovation markets remained strong, although the environment continued to be challenging due in part to the rising raw
material prices. The primary factor for the robust demand was an increase in consumer needs for more comfortable living environments, given more time spent at home
due to recommendations to stay at home and the ubiquitization of telecommuting under the COVID-19 pandemic.
A greater-than-expected increase in orders received because of this strong demand was combined with delays in the arrival of raw materials attributed to the global
disruption of sea transportation, affecting the supply of some products in the Building Materials Business.
January to December
April to March(Unit: 10,000)
2019
YoY change
2020
YoY change
2021
YoY change
2019
YoY change
2020
YoY change
2021
YoY change
90.5
-4.0%
81.5
-9.9%
85.6
+5.0%
88.4
-7.3%
81.2
-8.1%
86.6
+6.6%
Housing starts (total)
28.9
+1.9%
26.1
-9.6%
28.6
+9.4%
28.3
-1.5%
26.3
-7.1%
28.1
+6.9%
Owner-built homes
34.2-13.7%
30.7-10.4%
32.1
+4.8%
33.5
-14.2%
30.3
-9.4%
33.1
+9.2%
Rental properties
14.8
+3.6%
13.1
-11.4%
14.1
+7.9%
14.6
+0.9%
12.9
-11.5%
14.4+11.4%
Built-for sale homes

Public and commercial buildings (non-housing sector)◆ A decrease in commercial building and hotel construction due to foreign tourists being shut out of the market and the recommendations that people stay at home had aprolonged impact. Demand for construction slowed temporarily, mainly in the Tokyo metropolitan area, because the Tokyo Olympics and Paralympics were held during
the year.

MDF market◆ While the impact of increases in various costs remained, as in the domestic market, inquiries rose with growth in demand for products used for furniture and building
materials in overseas markets, aided by economic recovery, particularly in the U.S., and demand for substitutes for tropical plywood rose due to short supply.

U.S. home market◆ Housing starts remained strong. The market prices of wood material products that affect the selling price of LVL, a structural material for housing, remained high.

(10,000 units)
200

167.8

165.0
160

151.7

155.4

154.6

80

153.0

178.8
165.7
162.4

152.8

156.4

168.0
124.1

120

158.0

170.8

128.1

93.4
Apr

145.9

149.2
138.8
138.6

126.5
122.0

121.5

Jun

Jul

126.6

150.2

158.0

162.6

Aug

Sep

173.3

158.4
145.7

132.3

137.5
Fiscal 2020
Fiscal 2021
Fiscal 2022

101.1
May

172.8

Oct

Nov

Dec

Jan

Feb

127.6

Mar

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Fiscal 2022 Financial Results
Net sales
Net sales increased thanks to an increase in sales of MDF and LVL in the global markets combined with the effect of the weaker yen, which more than offset
a decrease caused by the sale of a domestic MDF sales subsidiary at the end of the previous fiscal year and delivery delays and limitations on the acceptanceof orders for certain products in the Building Materials Business that were generated in 4Q.
(* There was an increase of 16.5% when excluding the impact of the sale of the domestic MDF sales subsidiary.)
Operating profit
Operating profit increased as the selling price of LVL remained at a high level in the U.S., which combined with the effects of sales growth. In response to therising costs of raw materials and other goods, measures including streamlining, cost cutting, and the transfer of additional costs to selling prices were taken.
Comparison with the forecast published in the 3Q
Both net sales and operating profit exceeded the full-year forecasts that were revised upward on February 10, reflecting the selling price of LVL in the U.S.,
which remained higher than expected, as well as the effect of the weaker yen.
Both net sales and earnings hit record highs.

(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

199,210 Record high 223,377

YoY change

AmountFiscal 2022
(Forecast on
Feb. 10)%

Vs. results+24,167 *+12.1%

220,000+3,377

17,361+8,582+97.8%

16,000+1,3617.8%+3.4pt-7.3%+0.5pt

9,935 Record high18,725+8,790+88.5%

17,200+1,5255,447

5,620 Record high

7,872

+2,252+40.1%

8,300

-428

Earning per share (yen)209.32215.83302.18+86.35-318.56-16.38Dividend per share (yen)

70

70

100

+30

-

100

±0

Dividend payout ratio

33.4%

32.4%

33.1%

+0.7pt-31.4%＋1.7ptROE (%)

9.5%

9.1%

10.9%

+1.8pt---Net sales

202,481

Operating profit

8,384

8,779 Record highOperating profit ratio

4.1%

4.4%

Ordinary profit

9,108

Profit attributable toowners of parent

5
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Fiscal 2022 Business Segment Results
Industrial Materials Business
Sales increased due to growth in overseas sales of MDF, sales of LVL in the U.S. home market, and sales of tatami materials for domestic new home andrenovation markets, which more than offset a decrease that resulted from the sale of a domestic MDF sales subsidiary at the end of the previous fiscal year.
Operating profit increased as a result of streamlining and cost cutting in response to an increase in the cost of raw materials and other goods, the transfer of
additional costs to selling prices, the consistently high selling price of LVL in the U.S., and efforts to expand sales of high value-added products, in addition to
the effects of sales growth. (*Sales increased 36.9% excluding the impact of the sale of the domestic MDF sales subsidiary.)
Building Materials Business
Sales increased thanks to the growth in sales that continued until 3Q, which more than offset the impact of a decline in sales attributed to the delivery delays
and limitations on the acceptance of orders in 4Q. Operating profit decreased because an increase in the cost of raw materials and other goods could not be
absorbed through streamlining, cost cutting, and the transfer of additional costs to selling prices, partly reflecting the impact of the sales decline in 4Q.
Engineering Business
Operating profit increased as profitability improved due in part to the strong results of condominium renovation work in the Tokyo metropolitan area, whichmore than offset the decline in sales attributed mainly to a decrease in interior projects for office buildings and other properties.

Fiscal 2020
(Result)(Unit: million yen)
Net sales

Fiscal 2021
(Result)

OperatingprofitNet sales

Fiscal 2022
(Result)

OperatingprofitYoY change
Net sales

Amount%YoY change

OperatingprofitAmount%Industrial Materials
Business

76,5892,503

80,692

3,732

100,177+19,484 *+24.1%

12,958+9,225+247.2%

Building Materials
Business

94,938

4,955

88,697

4,076

91,907+3,210

+3.6%

2,680

-1,396-34.3%Engineering Business

21,713613

20,542508

20,264

-278

-1.4%

952

+444

+87.5%

Others

9,240

312

9,277

461

11,028+1,751+18.9%

770+309+67.0%

Total

202,481

8,384

199,210

8,779

223,377+24,167+12.1%

17,361+8,582+97.8%

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Fiscal 2022 Changes in Operating Profit(1) Higher costs: Increase in the cost of wood raw materials, adhesives, and other petrochemical products and energy(2) Higher expense of logistics: Increase in the cost of sea shipping attributable to the global disruption of sea transportation(3) Streamlining/cost reduction: Facilitation of a shift to in-house production, reexamination of all categories of items to be purchased, etc.
(4) Selling prices: Reflected in the U.S., where market prices of wood-material products remain high Increased costs for raw materials andsea shipping that cannot be absorbed internally will be reflected in selling prices(5) Change in sales/composition: The effect of sales growth due to a recovery from the COVID-19 pandemic, etc. Impact of a decline inearnings in 4Q, attributable to delivery delays and limitations on the acceptance of orders(6) Other expenses: Increase in expenses due to resumption of activities in comparison to the previous fiscal year
YoY change(Unit: million yen)

+8,582

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Fiscal 2022 Market Category Sales(Unit: million yen)
Upper: sales Lower: composition

Fiscal 2020
(Result)

Fiscal 2021
(Result)

YoY change

Fiscal 2022
(Result)

Amount%36,516

46,254

72,116+25,862+55.9%

18.0%

23.2%

32.3%

+9.1pt-26,292

23,70922,485-1,223

-5.2%

13.0%

11.9%

10.1%

-1.8pt-28,48324,622

19,985-4,636

14.1%

12.4%

8.9%

-3.4pt-31,77731,26632,533+1,267

+4.1%

15.7%

15.7%

14.6%

-1.1pt

-78,63073,00875,667+2,659

+3.6%

38.8%

36.6%

33.9%

-2.8pt

-

783

351

588

+237

+67.7%

0.4%

0.2%

0.3%

+0.1pt-165,965

152,956

151,261-1,695

-1.1%

82.0%

76.8%

67.7%

-9.1pt-202,481

199,210

223,377+24,167+12.1%

100.0%

100.0%

100.0%--

Global markets

Public and commercial
buildings-18.8% *Industrial materials

Home renovation market

Domestic new home market

OthersDomestic market

Total* +16.7% excluding the impact of the sale of a domestic MDF sales subsidiary8
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Fiscal 2022 Business Segment Performance in Three Priority Markets(Unit: million yen)+784

Global markets+23,71446,254+1,365+25,862

Higher sales thanks to arecovery in orders received indoor business in Indonesia

72,116Higher sales as a result of thesales growth of LVL for the
U.S. home market, the sales
growth of MDF, and the effectof the weaker yen

Public andcommercial buildings

YoY change+166
23,709Higher sales that resulted
from sales expansion of noncombustible products using
Dai-Lite as the base material,
which more than offset thecontinuous decline in demand
for tatami materials forcommercial buildings andhotels-126
Lower sales partly reflecting
the decline in sales of doors
since 4Q

-1,358-1,223+94

Lower sales because of
decrease in demand forinterior finishing work at officeand other buildings

22,485Home renovation
marketYoY change+412
31,266

Fiscal 2021 (Result)

YoY change

Higher sales due to a recovery
in demand for tatami
replacement work

Industrial Materials
Business-246+1,186Lower sales that resulted
from a decline in sales
associated with delivery
delays and limitations on theacceptance of orders for floor
materials and doors since 4Q

Higher sales attributed tostrong results in condominium
renovation in the Tokyo
metropolitan area

Building Materials
BusinessEngineering
Business-85+1,26732,533

OthersFiscal 2022 (Result)

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Previous Medium-Term Management Plan
GP25 2nd Stage
Review

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10

Review of the Previous Medium-Term Management Plan
GP25 2nd Stage (1)Business targets and results

I. Accelerating growth strategies

GP25 1st Stage

GP25 2nd Stage

Fiscal 2019

Fiscal 2022

ResultResult(Unit: billion yen)
GP25 2nd Stage

AmountDifference from thetargetFiscal 2022
Target

182.9

223.3

+40.4

225.0

-1.6

5.7

17.3

+11.6

12.0 Achieved

+5.3

3.1%

7.8%

+4.6pt

5.3% Achieved+2.4pt

4.4

7.8

+3.4

7.0 Achieved

+0.8

ROE

7.8%

10.9%

＋3.1pt

10% Achieved+0.9pt

ROA

4.5%

10.5%

＋6.0pt7% Achieved+3.5ptSoundness

Shareholders' equity ratio

36.8%

41.7%

＋4.9pt

40% Achieved+1.7ptShareholder Returns

Payout Ratio

42.4%

33.1%

-9.3ptat least 30% Achieved+3.1ptNet sales
Operating profit
Operating profit ratio
Profit attributable to owners of parent

II. Enhancement of the management foundation
Efficiency

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Review of the Previous Medium-Term Management Plan
GP25 2nd Stage (2)12All contents copyright ©DAIKEN CORPORATION All rights reserved.

Review of the Previous Medium-Term Management Plan
GP25 2nd Stage (3)Achievements■ Expansion in global markets positioned as growth drivers- While housing starts in Japan were expected to decrease, CIPA Lumber Co. Ltd.
of Canada and PACIFIC WOODTECH CORPORATION of the U.S., which engage inthe wood material business, were made Group companies, and expansion into
the North American market began, as part of efforts to expand into global
markets that are positioned as growth drivers. Profitability was improved bysurely tapping into the brisk demand in the U.S. housing market.
■ Achievement of business targets- The wood material business in North America drove the overall businessperformance, resulting in the achievement of business targets excluding net
sales, such as operating profit, operating profit ratio, profit attributable toowners of parent, ROE, and shareholders' equity ratio.

Issues■ Expansion yet to be achieved in public and commercial buildings in Japan- Sales from commercial building and hotel construction did not increase as
expected, reflecting the rapid decline of in-bound demand and a rise in thenumber of people voluntarily refraining from going out during the COVID-19
pandemic.
- There were delays in the shift of salespeople and the enhancement of products
for expansion as the housing market remained stronger than initiallyanticipated.
■ Delivery delays in the final fiscal year
- In the period leading to 2H of fiscal 2022, there were delays in the delivery ofcertain products in the Building Materials Business, which reflected delays in thearrival of raw materials because of an unexpectedly strong increase in orders
received in Japan and the disruption of sea transportation. This forced Daiken to
limit the acceptance of orders.

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When to Announce the Medium-Term Management Plan
GP25 3rd Stage

With respect to the Medium-Term Management Plan GP25 3rd Stage (Fiscal
2023 to 2026), a four-year plan starting in fiscal 2023, Daiken is currently
scrutinizing the plan again given the extremely high future uncertainties thatremain ongoing, such as the surging commodity prices, supply chain
disruption, and fluctuations in the financial and capital markets, associatedwith the increase in geopolitical risks in addition to the impact of the COVID-

19 pandemic.
Daiken will announce the plan based on the results of the scrutiny aroundlate June, 2022, after the resolution is passed by its Board of Directors.

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Fiscal 2023

Forecast

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Fiscal 2023 Market Environment Forecast
Domestic home market◆ There is concern that demand will decline as a result of reflecting a surge in the cost of various materials in the prices of houseand other goods. However, demand for a more comfortable dwelling environment as a space for working and relaxing has
continued to grow among consumers, so demand for both new homes and renovations is expected to remain strong.
Public and commercial buildings (non-housing sector)◆ Demand for interior finishing work at office and other buildings is expected to increase in the period leading to 2H of the fiscal
year due to the resumption of construction projects, mainly in the Tokyo metropolitan area.
◆ Despite the presence of the risk of the renewed spread of COVID-19, demand from commercial buildings and hotels is expected
to recover, given a gradual easing of voluntary restrictions on going out.
MDF market◆ While the market for wood-material products is tightening, the number of inquiries is expected to increase due to growth indemand for products used for furniture and building materials, especially in overseas markets, and demand for substitutes fortropical plywood due to short supply.
U.S. home market◆ Over the medium to long term, steady demand for housing is expected, reflecting rising populations and a shortage of housing
stock. However, there is concern that surging prices and rising interest rates will affect the demand, and market prices of woodmaterial products are expected to enter a correction phase.
Cost of raw materials and logistics◆ The cost will remain affected by rising sea shipping costs, attributed in part to the global disruption of sea transportation, in
addition to surging prices of raw materials such as petrochemical products and wood raw materials, reflecting the resource
inflation that is accelerated by the increase in geopolitical risks.

16
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Fiscal 2023 Forecast(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Forecast)

YoY change
Amount%Net sales

202,481

199,210

223,377

232,000+8,622+3.9%

Operating profit

8,384

8,779

17,361

12,500-4,861-28.0%

Operating profit
ratio

4.1%

4.4%

7.8%

5.4%

-2.4pt-Ordinary profit

9,108

9,935

18,72513,000-5,725-30.6%

Profit attributable toowners of parent

5,447

5,620

7,872

5,800

-2,072-26.3%

Earning per share(yen)

209.32215.83302.18222.58-79.60-

Dividend per share
(yen)

70
Interim: 35
Year-end: 35

70
Interim: 30
Year-end: 40

100
Interim: 45
Year-end: 55

80
Interim: 40
Year-end: 40-20
Interim: -5
Year-end: -15-

Dividend payout ratio

33.4%

32.4%

33.1%

35.9%

+2.8pt-ROE（%）

9.5%

9.1%

10.9%

7.4%

-3.5pt-17
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Shareholder Returns and Dividends| Basic policies for capital and shareholder distributions |◆ By striving for efficient management that places emphasis on ROE, improving shareholder return, and optimizing the balance between financial
soundness and strategic investment, improve corporate value.
◆ For shareholder distributions, the goal is a dividend payout ratio of at least 30% while maintaining a stable dividend and aiming for the
distribution of earnings linked with results of operations.
◆ Decisions about the repurchase of stock will be made based on the current level of capital, the market environment and other applicableconsiderations.
◆ Shareholders’ equity will be effectively used for the improvement of production, sales and construction systems as well as for new businesses,
global operations and other activities in order to achieve medium-and long-term growth and build a solid foundation for business operations.

| Trends in the Dividend and Payout Ratio |
（％）

(Yen)

100
80

50

Dividend

42.4

Dividend payout ratio
33.6

33.4
30.4

30.1

30.3

35.9
32.4

60
40

30
We continued shareholder returns
based on the policy of the dividend
payout ratio at 30% or more

100.00
64.00

20

40

33.1

74.00

74.00

70.00

80.00

70.00

50.00

20
10

37.50

0

0
Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023
(Forecast)

GP25 1st Stage

GP25 2nd Stage(Note) The company consolidated shares at a rate of one share per five as of October 1, 2016. The past figures were also consolidated retrospectively for ease of comparison

18
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Fiscal 2023 Forecast of Changes in Operating Profit(1) Higher costs: Increase in the cost of wood raw materials, adhesives, and other petrochemical products and energy(2) Higher expense of logistics: Increased cost of sea shipping associated with the global disruption of sea transportation(3) Streamlining/cost reduction: Reexamination of all categories of items to be purchased(4) Selling prices: Market prices of wood-material products in the U.S. are expected to enter a correction phase in 2H or later. The higher
costs for raw materials that cannot be absorbed internally will be reflected in selling prices, mainly in Japan.
(5) Change in sales/composition: A sales decrease is expected, mainly in 1H, due to the impact of delivery delays and limitation on
acceptance of orders in 4Q of the previous fiscal year.
(6) Other expenses: Increase in expenses, partly reflecting trade fair for sales promotion, investment in human resources, and improvementof treatment
YoY change(Unit: million yen)

-4,861

19
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Fiscal 2023 Business Segment Results Forecast
Industrial Materials Business
Sales are expected to grow 0.9% year on year due to the effect of the weaker yen and the transfer of additional costs to selling prices of MDF
and other products, which will more than offset the impact of surging prices and rising interest rates on demand in the U.S. and market
prices of wood-material products that will enter a correction phase.
Building Materials BusinessYear-on-year sales growth of 3.9% is expected, although sales will decline mainly in 1H due to the delivery delays and limitations on theacceptance of orders in 4Q of the previous fiscal year. The main factors are the transfer of an increase in raw material costs to selling prices,in addition to the launch of new products that will serve under the new normal created by the COVID-19 pandemic, such as hygiene
measures and improvements in the noise environment, as well as a strengthening of our proposal capability made by holding TDY Fair, etc.
Engineering BusinessYear-on-year sales growth of 23.4% is expected as a result of a recovery in demand for interior work for office buildings and other properties
in addition to the expansion of condominium renovation in the Tokyo metropolitan area.

(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Forecast)

YoY change
Amount%Industrial Materials
Business

76,58980,692

100,177

101,100

+922

+0.9%

Building Materials
Business

94,93888,69791,907

95,500+3,592+3.9%

Engineering Business

21,713

20,542

20,26425,000+4,735+23.4%

Others

9,240

9,277

11,028

10,400

-628

-5.7%

Total

202,481

199,210

223,377

232,000+8,622+3.9%

20
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Fiscal 2023 Market Category Sales Forecast(Unit: million yen)
Upper: sales Lower: composition

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

YoY change

Fiscal 2023
(Forecast)Amount%36,516

46,254

72,116

71,500

-617

-0.9%

18.0%

23.2%

32.3%

30.8%

-1.5pt-26,292

23,70922,48526,800+4,314+19.2%

13.0%

11.9%

10.1%

11.6%

+1.5pt-28,48324,622

19,98520,700

+714

+3.6%

14.1%

12.4%

8.9%

8.9%

±0

-

31,77731,26632,53335,200+2,666

+8.2%

15.7%

15.7%

14.6%

15.2%

+0.6pt

-78,63073,00875,66777,800+2,132

+2.8%

38.8%

36.6%

33.9%

33.5%

-0.3pt

-

783

351

588

0

-588

-

0.4%

0.2%

0.3%

0.0%

-0.3pt-165,965

152,956

151,261

160,500+9,239

+6.1%

82.0%

76.8%

67.7%

69.2%

+1.5pt-202,481

199,210

223,377

232,000+8,622+3.9%

100.0%

100.0%

100.0%

100.0%--

Global markets

Public and commercial
buildings

Industrial materials

Home renovation market

Domestic new homemarketOthersDomestic market

Total

21
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Fiscal 2023 Forecast for Business Segment Performancein Three Priority Markets(Unit: million yen)

Global markets

72,116-633+538

Demand for MDF willremain strong, and thetransfer of additional costs
to selling prices will be
continued, but market
prices of wood-material
products in U.S. are
expected to enter acorrection phase toward
2H.

Receiving more orders in thedoor business in Indonesia-521
YoY change-617
71,500Public andcommercial buildings

YoY change+773
22,485

Expanding sales of noncombustible products using
Dai-Lite as the basematerial and recovery indemand for tatami
materials for commercial
buildings and hotels+1,232
Expanding sales of products
improving the noise
environment, andincreasing the number of
proposals by extending thelineup of products with
antibacterial and antiviralfunctions+2,488Recovery in demand forinterior finishing work foroffices and other properties

Home renovation
market+4,31426,800YoY change-293
32,533Fiscal 2022 (Result)-178

Industrial Materials
Business+1,376+1,651

Launch of new products forthe new normal and sales
expansion through TDY Fair

Expansion of condominium
renovations in the Tokyo
metropolitan area

Building Materials
BusinessEngineering
Business-68+2,66635,200

OthersFiscal 2023 (Result)

22
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ESG Topics

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23

External ESG Rating
Selected as a Component Stock of FTSE Blossom Japan Sector Relative Index, an ESG
Index
On March 30, 2022, DAIKEN CORPORATION was selected as a constituent
of FTSE Blossom Japan Sector Relative Index, a new ESG index that was
newly adopted by GPIF.
It is a selective, comprehensive ESG index, which screens for constituentsby evaluating the scale of the environmental impact and companies'
management of climate change risks in addition to using the ESG rating
by FTSE Russell, a global ESG rating body.
As of the announcement on March 30, 2022, the number of Japanesecompanies as its constituents was 494. The initial amount of investment
is approx. 760.0 billion yen.
https://www.ftserussell.com/products/indices/blossom-japan

MSCI ESG Ratings

S&P/JPX Carbon Efficient Index

DAIKEN CORPORATION received the A rating in MSCI's ESG Rating
scheme, which was newly included in evaluations in June 2021, inrecognition of the initiatives it implemented to respond to climatechange.

This is an environmental stock index that was jointly developed by
Japan Exchange Group (JPX) and S&P Dow Jones Indices LLC andadopted by GPIF in 2018.
It determines the weighting of constituent stocks, focusing on thedisclosure status of environmental information and carbon
efficiency levels (carbon emissions
per unit sales), within the scope of stocks
that make up the TOPIX index.
Daiken is classified as the "Materials“
industry group. With respect to decileclassification, DAIKEN CORPORATION isclassified as 2nd Decile.
(As of the announcement on March 22, 2022)

24
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Financial Information

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25

Fiscal 2022 Consolidated Balance Sheet (Major components)
Fiscal 2020
(Result)
16,839Fiscal 2021
(Result)
17,433Fiscal 2022
(Result)
22,881

YoY change
Amount+5,44842,09238,45440,316+1,86227,01029,52534,487+4,962Other current assets

1,990

2,333

4,597

+2,264

Total current assets
Property, plant andequipment
Intangible assets
Investments and otherassetsTotal assets

87,93487,748102,286+14,538

51,42650,91549,451-1,464

14,83415,002

14,972-30

16,351

18,835

16,654-2,181

170,638

172,553

183,391+10,838

26,84623,43527,650+4,21543,87635,50828,500-7,008(Unit: million yen)
Cash and deposits
Notes and accounts
receivable - trade
Inventories

Notes and accounts payable- tradeInterest-bearing debt
Other current/non-current
liabilities
Total liabilities

36,94036,83836,678-161

107,662

95,781

92,828-2,953

Total shareholders' equity

57,05960,877

66,395+5,518

Total net assets
Total liabilities and net
assets62,97576,771

90,563+13,791

170,638

172,553

183,391+10,838

5.5％

5.8％

10.5％

＋4.7ptShareholders' equity ratio

32.7%

39.4%

41.7%

+2.3ptDebt-equity ratio (multiple)
Net debt-equity ratio(multiple)

0.79

0.52

0.37

-0.15

0.48

0.27

0.07

-0.20

ROA
Ratio of ordinary profit to total assets◆ Inventories<Major factors>
Merchandise/Work in process
Raw materials/Supplies+4,962◆Property, plant and equipment<Major factors>
Acquisition/Construction in progress
Depreciation
Impairment losses
Exchange rate changes, etc.

-1,464+3,155+1,807+2,834-4,923-1,103+1,728◆Interest-bearing debt
-7,008<Major factors>
Decrease in long- and short-term borrowings-6,994◆ Total net assets+13,791<Major factors>
Increase in retained earnings+5,492
Non-controlling interests+5,347
Foreign currency translation adjustment+3,587
Deferred gains or losses on hedges+194
Valuation difference on available-for-salesecurities-1,16226
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Fiscal 2022 Consolidated Statement of Income (Information about
non-operating profit (expenses) and extraordinary income (losses))(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

YoY change

Net sales

202,481

199,210

223,377+24,167

Gross profit

51,03850,881

63,167+12,285

SG&A expenses

42,653

42,10245,805+3,703Operating profit

8,384

8,779

17,361+8,582Non-operating profit(expenses)

724

1,156

1,363

+207

Ordinary profit

9,108

9,935

18,725+8,790Extraordinary income(losses)

-237

1,035

-461

-1,496

Profit before income taxes

8,871

10,97018,264+7,294

Total income taxes

2,359

3,687

5,188

+1,501

Profit

6,512

7,283

13,076+5,792

Profit attributable to noncontrolling interests

1,064

1,662

5,203

+3,540

Profit attributable toowners of parent

5,447

5,620

7,872

+2,252Average exchange rate(yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)◆ Non-operating profit (expenses)+207<Major factors>
Income on emission rights+356
Sales discounts (change in accounting
processing)+125
Decrease in dividend income-102
Decrease in COVID-19 subsidies-167◆ Extraordinary income (losses)-461<Major factors>
Gain on sale of investment securities+1,190Loss on retirement of non-current assets-110
Impairment losses-1,232
Provision for loss on litigation-177
Loss on disaster-133

YoY change

USD

108.29106.02112.35

+6.33

CAD

81.57

80.24

89.59

+9.35

NZD

70.39

71.09

78.22

+7.13

MYR

26.1

25.39

26.89

+1.50

27
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Fiscal 2022 Consolidated Statement of Cash Flows(Major components)
Fiscal 2020
(Result)(Unit: million yen)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Operating cash flow

+16,807+12,254+16,834

Investing cash flow

-17,863-910-6,636

Free cash flow

-1,056+11,344+10,198

Financing cash flow

+1,468-11,369-10,737

Cash and cash equivalents at endof period

16,83917,433

17,407

Capital expenditures

5,490

3,697

2,864

Depreciation

5,079

5,563

5,546

20,000+16,834+16,807

15,000+12,254
11,34410,0005,000+10,198

1,468

0-5,000-910-1,056-6,636-10,000-11,369-15,000-20,000-17,863
Fiscal 2020
(Result)
Operating cash flow

Fiscal 2021
(Result)
Investing cash flow

Financing cash flow

-10,737◆ Operating cash flow
+16,834<Major factors>
Profit before income taxes+18,264
Depreciation+5,546
Impairment losses+1,232Gain on sale of investment securities-1,190
Amortization of goodwill+1,686
Changes in trade receivables/payables+2,325
Changes in inventories-4,650
Income taxes paid
-6,371◆Investing cash flow
-6,636<Major factors>
Purchase of property, plant andequipment-2,803
Increase in time deposits-5,038
Sales of investment securities +2,025◆Financing cash flow
-10,737<Major factors>
Increase/decrease in long- and shortterm borrowings-7,381Dividends paid
-2,214
Dividends paid (to non-controllingshareholders)-977

Fiscal 2022
(Result)
Free cash flow28
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Initiatives for Reduction of Cross-Shareholdings
Changes in cross-shareholdings■■ Balance
Balancesheet
sheetbalancesbalances(Unit: billion yen)

Balancesheetbalances

Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022

Listed

18.3

15.4

11.2

12.9

10.4

Unlisted

0.1

0.1

0.1

0.1

0.1

Total

18.4

15.5

11.4

13.0

Ratio to net assets
200
20

-

-0.4

-1.1

-2.4

-2.0

Acquisition price

0.0

0.0

0.0

0.0

0.0

Reduction

0.0

-0.4

-1.1

-2.4

-2.0

2.5

2.4

1.9

1.8

1.7

18.4
32.4%
120
12

Number ofcompanies
whose
stocksDaiken holds

Unlisted

2.5

2.4

2.4

2.2

2.3

Total

5.0

4.8

4.3

4.0

4.0

Reduction
-0.4

40%

15.5
25.2%

Reduction-2.4
Reduction
-1.1

18.1%

80
8

0.0

-0.2

-0.6

-0.3

0.1

0.0

0.1

0.0

9.7%
6.7%

7.6%

Fiscal 2020

Fiscal 2021

0
Fiscal 2018

Fiscal 2019

(Number of companies whose stocks Daiken holds )

-0.2

-0.5

-0.3

0.0

Total assets

140.7

160.1

170.6

172.5

183.3

Ratio to total assets

13.1%

9.7%

6.7%

7.6%

5.8%

Net assets

56.9

61.7

62.9

76.7

90.5

Ratio to net assets

32.4%

25.2%

18.1%

17.0%

11.7%

0%

Fiscal 2022■■ Total number of companies

Reduction
-2

50

0.1

5.8%

whose stocks Daiken holds

-0.1

0.1

20%

10%

48

40

Reduction

10.5
17.0%

13.1%

50

Increase30%

Reduction
-2.0

11.7%

60

Decrease

13.0

11.4

40
4

Listed

50%

160
16

10.5

Sale price

Ratio to total assets(Unit: billion yen)

Reduction-5

43

Reduction-3

Reduction
±0

40

40

Fiscal 2021

Fiscal 2022

30
20
10
0
Fiscal 2018

Fiscal 2019

Fiscal 202029
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This presentation is intended to provide information and does not solicit an action of any kind.
This presentation (including forecasts) was created by Daiken based on information that was currently available.
This presentation includes risks and uncertainties and Daiken provides no guarantee that information is reliable orcomplete.
Please use this information based on your own judgment.
Daiken is not responsible for any losses that may result from investment decisions that rely completely on theforecasts, targets and other information in this presentation.

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