Strategies by Business Segment and Market
Strategies by business segment and progress
Sales results by business and goals
Other

Engineering business(¥100 million)
2,500,500

Industrial materials
business
85

133

174

335

2,000

202

247

270

1,500

919

930

2,288

2,233
110

(11%)

(9%)

272

(41%)

(40%)

11%)

395

Compared with fiscal 2022 results(13%)

Engineering business(12%)

36315%)

2,500

2,350

66527%)

Building materials
business

1,040
1,076(42%)

Building materials business(46%)+13.2 billion yen(+65%)+12 billion yen(+13%)

1,00016%)

Industrial materials business
5008081,001

976(45%)

(43%)

32%)

02026 (Fiscal year)
Goals

830

1,040

+3.8 billion yen(+4%)[+25 billion yen]*

(42%)

(35%)

[+32%]* If excluding the decrease in sales by 21.2 billion yen associated with thechange in PWT in the United States

2022
Results

2023
Results

GP25 2nd Stage

2024
Forecast

2026
Goals

(Fiscal year)

GP25 3rd Stage

Strategies by business segment

Industrial materials businessl Contribute to the resolution of social issues in the global markets through the development of industrial materials that use sustainable
resources and the sales expansionl Execution of the business structural reform toward the profitability improvement

Value creation

Utilization development that will expand the possibility of industrial materials
and acquisition of alternative demand from the perspective of sustainabilityEnhancement of the appeal of and sales expansion of the products for
public and commercial buildings, such as noncombustible products andmaterials for tatami matsWith the capital increase aimed at expanding business, PWT, which used to
be a consolidated subsidiary, became an equity method affiliate
Promotion of the business structural reforms in the four group MDF plants
Promotion of the development of environment-conscious MDF
Promotion of the new application development of wood materials, such as
insulation boards and MDF
Sales expansion of non-combustible decorative materials made of DAILITE
base material, including louver materials and eaves

Building materials businessl Expansion of the functional building materials that meet the user needs in the new normal era and enhancement of the proposal capabilities
l Improvement of profitability by improving productivity using digital technology and operational efficiency

Value creation

Promotion of the development of functional building materials that create“Safe, secure, healthy, and comfortable spaces for everyone”
Enhancement of the solution proposals that use functional building
materials through the performance measurement and evaluation of spaces,such as the sound environment and thermal environment

Release of the products that give consideration to the aspect of goodhygiene and the products that are ahead of design trends
Enhancement of the proposals of acoustic products that marked 40th
anniversary since the business commencement
Review of the structure of some product series in terms of the BCP and for
efficiency by reducing product numbers
Enhancement of procurement management with a focus on raw woodmaterials, such as the launch of the new supplier

Engineering businessl Pursuit of the synergy between the products in the industrial materials and building materials businesses and the construction functionl Expansion of the construction areas that meet the spatial needs in the new normal era

Value creation

To provide new spatial value by improving the sound and thermal
environments that take advantage of the group’s product appeal, we willproceed with the expansion of the construction areas and the improvementof our technological capabilities and enhance our integrated order-taking
system for industrial materials and construction
Support for the development of construction techniques and productdevelopment incorporating the short construction period and saving
construction time and work by using our construction network

39

DAIKEN GROUP REPORT 2023

Expansion of the sale of and increased profitability of apartment renovation
business in the Tokyo metropolitan area
Expansion of orders for interior projects by resuming various redevelopment
projects with a focus on the large metropolitan areas
Expansion of orders for soundproofing and orders from kindergartens andchildcare facilities in order to increase profitability

Strategies by market and progress

Global markets(¥100 million)
2,500

Public and commercial buildingsHome renovation market

2,000

646

721

1,500

281

224(12%)

(9%)

1,000

Domestic
market325(15%)

Domestic
market

1,512

756

(34%)

240

272

341

(15%)

2022
Results

2,000

850

(36%)

2024
Forecast

2023
Resultsyen
Public1,500
and commercial
919 +13.8 billion
930
(41%)
buildings(40%)(+61%)

1,835

Industrial materials

395

1,000(16%)

(73%)

(77%)

(33%)

GP25 2nd Stage

Domestic
market2,500

2,35085174335(13%)

270(12%)* If excluding the decrease in sales by 21.2 billion yen associated with thechange in PWT in the United States

(11%)

1,800

752

133(-8%)247 yen]*[+15.6 billion
202(11%)(9%)[+31%]
110

Industrial materials
business+7.2 billion yen(+36%)+6.9 billion yen
Home renovation market
500808(32%)

1,001(45%)

Domestic new homemarket

2026 (Fiscal year)
Goals

02022
Results(+21%)
976(43%)+5.1 billion yen

1,040(42%)

1,076(46%)

Domesticmarket+32.2 billionyen(+21%)

830(42%)

(35%)

(+7%)
2023
Results

2024
Forecast

2026
Goals

GP25 3rd Stage

GlobalStrategies by market

Global markets
Accelerate the further exploration of the global
markets through penetration of industrial material
and building material products that use sustainable
resources

Public and commercial buildings
Growth acceleration by expanding and improving
functional building materials that meet user needs inthe new normal era and by enhancing proposal
capabilities

Industrial materialsn Timely MDF selling price pass-through in response to soaring costs
n Implementation of the market survey toward the deployment of new wood industrial materials for theNorth American market
n Expansion of the Indonesian plant-made door sales channels in the European market
n Promotion of the initiatives toward the stable procurement of wood materials
n Promotion of the development of new products through co-creation with other companies and new
proposal methodsn Acquisition of touch points with customers utilizing digital tools, inside sales, proposal meetings, etc.
n Enhancement of the proposals by functional products, such as noncombustible, acoustic products,
tatami materials, and flooring using local materials
n Expansion of orders for interior projects for office buildings etc.
n Planning of well-being working environments and spaces that pursue workers’ health and comfort
n Expansion and reinforcement of manufacturing facilities associated with the expansion of adoption ofwood culture medium GLOW EARTH for the agriculture and horticulture markets
n Launch of the vegetable garden system business in which vegetables can be easily grown on the roofof buildingsn Expansion of the handling of new products (plywood made of plantation timber, LVS, etc.)

Home renovation market
Expand and improve functional building materials thatmeet the user needs in the new normal era andestablish and penetrate the construction techniquemodels that meet demand for the condominium
renovation construction, such as the short
construction period, saving construction time andwork, and waste reductionn Development of the products that stylishly produce spaces and are ahead of design trends
n Expansion of the apartment renovation and renovation work in the Tokyo metropolitan arean Enhancement of the renovation proposals from the lifestyle perspective that utilize the website andshowroomsn Introduction of manufacturing facilities for flooring exclusively for renovations and launching products

Domestic new home market
Development of differentiated products that promptly
meet user needs and an increase in the share byenhancing proposals in order to minimize the impact ofshrinking of the market Improvement of the efficient
proposals and order-taking system that effectively uses
digital technology(FiscData

Domestic

Exploration of new markets and new areas bydeveloping new industrial materials with theadvantages of sustainability and environmental
burden reduction

1,040

Strategy for Value Creation

0(15%)

Domestic 400
market (17%)

(72%)

(68%)

500

1,641

363

(10%)

262

199

310(13%)

(12%)

(10%)

665(27%)

Building materials
business

2,288-5.6 billion
yen
Global markets2,233(23%)

(28%)

(32%)

2,500

550

Engineering business(¥100 million)
Comparedwith fiscal 2022 results
2,500

2,350

2,288

2,233

Other

Industrial materials

Domestic new home market

Daiken Group’s Value Creation

Sales results by market and goals

n Enhancement of the proposals for products and spaces corresponding to the change in user needs
n Enhancement of the ability to disseminate information utilizing digital tools
n Sales expansion of DAILOTONE healthy and comfortable ceiling materials by the proposals from theperspective of functionality
n Recovery from the impact of door delivery delays and a limitation on part of the orders for flooring

DAIKEN GROUP REPORT 2023

40