Results of Operations for the Fiscal Year Ended
March 31, 2023 (Fiscal 2023)

May 23, 2023
DAIKEN CORPORATION(Security code:7905)

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Contents
1. Main Points of the Presentation of Financial Results for Fiscal 2023
■ Main Points of the Presentation of Financial Results for Fiscal 2023 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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2. Fiscal 2023 Financial Results■ Fiscal 2023 Market Environment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Financial Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Business Segment Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Changes in Operating Profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Market Category Sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Business Segment Performance in Three Priority Markets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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3. Fiscal 2024 Forecast■ Fiscal 2024 Market Environment Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2024 Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Shareholder Returns and Dividends・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2024 Forecast of Changes in Operating Profit・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2024 Business Segment Results Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ 2024 Market Category Sales Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2024 Forecast for Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・・・・・・・

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4. Progress against the Medium-Term Management Plan GP25 3rd Stage■ Progress against the Medium-Term Management Plan GP25 3rd Stage ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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5. ESG Topics■ Establishment of MDF Manufacturing Method Using Wood-Derived Adhesive・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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6. Financial Information■ Fiscal 2023 Consolidated Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Consolidated Statement of Income･・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■ Fiscal 2023 Consolidated Statement of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・････・・・･・・・・・・・・・・・・・・・・・・■ Initiatives for Reduction of Cross-Shareholdings・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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Main Points of the Presentation of Financial Resultsfor Fiscal 2023

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Main Points of the Presentation of Financial Results for Fiscal 2023
◇Result for Fiscal 2023◇
 Net sales and profit attributable to owners of parent hit new highs.
 Operating profit and ordinary profit dropped, due to the soaring cost of raw materials and other goods. Efforts toincorporate the costs into selling prices failed to cover the increase.

 Annual dividends will be the highest ever at 110 yen per share, up 10 yen from the previous fiscal year.

◇ Forecast for Fiscal 2024◇
 Accelerate the global expansion of wood materials and step up proposals of solutions from a perspective of improving thevalue of spaces in an attempt to increase net sales.

 In view of the deterioration of the cost environment, operating profit, ordinary profit and profit attributable to owners ofparent are forecast to decline.
 The annual dividend forecast is 120 yen per share, up 10 yen from the preceding fiscal year, on the basis of a DOE of 3.5%.

◇ Business Targets of the Medium-Term Management Plan GP25 3rd Stage ◇ The business targets set in the the medium-term management plan, GP25 3rd Stage, have been maintained. They are net
sales of 250.0 billion yen, operating profit of 15.0 billion yen, and profit attributable to owners of parent of 10.0 billion
yen.
 The 60.0 billion yen investment plan, including strategic investment of 40.0 billion yen, has been delayed. To catch up to
the schedule, the Company will invest as necessary in the continued growth of business and the transformation of its
business portfolio.

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Fiscal 2023

Financial Results

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Fiscal 2023 Market Environment
Domestic home market◆ Housing starts fell slightly. The continued weakness of demand for owner-built homes was covered by demand for built-for-sale homes andrental properties. Housing starts dropped 0.6%. They were almost flat from the previous fiscal year. While demand for owner-built homes
remained weak, rental properties were in high demand, and built-for-sale homes demand stayed at the level of the previous year eventhough it slowed in the second half. Renovation demand was solid.
January to December(Unit: 10,000)

2020

YoY change

2021

April to MarchYoY change

2022

2020

YoY change

2021

YoY change

2022

YoY change

YoY change

Housing starts (total)

81.5

-9.9%

85.6

+5.0%

86.0

+0.5%

81.2

-8.1%

86.6

+6.6%

86.1

-0.6%

Owner-built homes

26.1

-9.6%

28.6

+9.4%

23.5

-17.8%

26.3

-7.1%

28.1

+6.9%

24.8

-11.7%

Rental properties

30.7-10.4%

32.1

+4.8%

34.5

+7.5%

30.3

-9.4%

33.1

+9.2%

34.7

+4.8%

Built-for sale homes

13.1-11.4%

14.1

+7.9%

14.6

+3.5%

12.9

-11.5%

14.4+11.4%

14.4-

Public and commercial buildings (non-housing sector)◆ Demand for interior finishing work for office and other buildings recovered due to the resumption of a range of construction projects.
MDF market◆ In the first half of the fiscal year, demand was solid as inquiries increased. In the second half, demand for applications of furniture andbuilding materials dropped mainly in North America. The demand-supply balance is loosening.
U.S. home market◆ Housing starts decreased due to rising interest rates. The selling prices of LVL and veneer have been in an adjustment phase since thesecond half of 3Q.
（10,000 units）
200

181.0

160

151.7

178.8
159.1

154.6

165.0
159.9

155.4
149.2
140.4

158.0

153.0
145.9 148.8

170.8

157.8

168.0

165.7

152.8

156.6
138.8

167.8

150.2
143.4

137.1
140.1

158.4
132.1

143.2
145.7

120

172.8
173.3

137.1
Fiscal 2020

122.0

Fiscal 2022

101.1
80

Fiscal 2022

93.4
Apr

May

Jun

Juy

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

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Fiscal 2023 Financial Results
Net sales

Net sales increased, due mainly to the increasing selling prices of MDF, rallying demand for interior finishing work for office andother buildings and brisk sales of renovations for condominiums in the Tokyo metropolitan area despite a negative factor
associated with the exclusion of U.S.-based PWT from consolidation.

Operating profit
Ordinary profit

Profit figures dropped. In response to the increasing cost of raw materials and other goods, the Company worked to incorporate
them into its selling prices in addition to streamlining and cost reduction. However, the efforts failed to cover the surging costs.

Net Profit

Net profit rose after the posting of a gain on change in equity of 4.1 billion yen as extraordinary income due to changes in PWT.

%

Fiscal 2022
(Forecast on
Oct. 27)

Vs. results+5,448+2.4%

234,000-5,1749,856-7,504-43.2%

13,000-3,1447.8%

4.3%-3.5pt-5.6%-1.3pt9,935

18,72513,008-5,716-30.5%

15,500-2,492

Profit attributable toowners of parent

5,620

7,872

10,325+2,452+31.2%

11,000-675

Earning per share (yen)215.83302.18396.10+93.92-421.97-25.87

Dividend per share (yen)

70

100

110

+10

-

110

-

Dividend payout ratio

32.4%

33.1%

27.8%
* 46.1%

-

-

26.1%
* 41.6%+1.7%* +4.5%

DOE (%)

2.9%

3.6%

3.6%

±0.0pt-3.5%+0.1ptROE (%)

9.1%

10.9%

12.9%

-

-

13.6%

-0.7ptYoY change(Unit: million yen)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Result)

AmountNet sales

199,210

223,377

228,826

Operating profit

8,779

17,361

Operating profit ratio

4.4%

Ordinary profit

7
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*Excluding temporary factors

Fiscal 2023 Business Segment Results
Industrial Materials BusinessNet sales tumbled following the exclusion of U.S.-based PWT from consolidation and a decrease in the sales of Canada-based CIPA due to the decreasing
market prices of wood-material products in the United States despite the increase of MDF selling prices in Japan and overseas and the growth in Dai-Litesales for housing and for public and commercial buildings. Operating profit was down due to the decrease in sales. The incorporation of increased costs into
selling prices failed to cover the rising costs.
Building Materials BusinessNet sales increased following a recovery from the delivery delays in 4Q of the previous fiscal year. Operating profit had been negative for nine months, butefforts to streamline, reduce costs and incorporate rising costs of raw materials into selling prices in response to the cost increase enabled the business tomove beyond this.
Engineering BusinessNet sales increased, mainly reflecting a recovery in demand for interior finishing work for office and other buildings, and the strong results of condominium
renovations in the Tokyo metropolitan area. However, operating profit decreased mainly due to rising costs for construction materials and labor.

(Unit: million yen)

Fiscal 2022
(Result)
Operating
Net sales
profitNet sales

Fiscal 2023
(Result)
YoY change
OperatingprofitAmount%YoY change
Amount%Industrial Materials
Business

100,177

14,956

97,681-2,495-2.5%

11,764-3,191-21.3%

Building Materials
Business

91,907

4,317

93,000+1,092+1.2%

178-4,138-95.9%Engineering Business

20,264952

24,756+4,492+22.2%

912

-39

-4.2%

Others11,028798

13,387+2,359+21.4%

1,012

+214

+26.8%

Adjustment amount *--3,663----4,011

-348

-

Total

223,377

17,361

228,826+5,448

+2.4%

9,856

-7,504-43.2%* Starting from fiscal 2023, to evaluate business performance more appropriately by segment, the Company has decided to adopt the method of allocating expenses related to general administration
departments of the headquarters and other facilities to the respective reportable segments to the extent that such expenses are directly related to reportable segments, while posting those that are
not related directly as corporate expenses. The figures for fiscal 2023 reflect the new method.

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Fiscal 2023 Changes in Operating Profit(1) Higher costs: Rises in the prices of wood raw materials, adhesives and other petrochemical products(2) Higher logistics expenses: Rises in sea shipping costs and in storage costs due to the increase of MDF in stock(3) Streamlining and cost reduction: Reviews of items to be purchased and reduction of overseas energy costs(4) Selling prices: High market prices of wood-material products in the United States in the first half Cost increases wereincorporated into local MDF selling prices(5) Change in sales and composition: Decrease in sales as a result of changes in PWT from August(6) Other expenses: Increase in expenses, partly reflecting trade fair for sales promotion, investment in human resources, andimprovement of treatment
YoY change(Unit: million yen)

△7,5059All contents copyright ©DAIKEN CORPORATION All rights reserved.

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

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Result)

46,254

72,11623.2%

YoY change

Amount%64,692-7,425-10.3%

32.3%

28.3%

-

-

23,70922,48528,120+5,634+25.1%

11.9%

10.1%

12.3%

-

-

24,622

19,98526,265+6,279+31.4%

12.4%

8.9%

11.5%

-

-

31,26632,53334,189+1,656

+5.1%

15.7%

14.6%

14.9%

-

-

73,00875,66775,269

-398

-0.5%

36.6%

33.9%

32.9%

-

-

351

588

291

-297

-50.5%

0.2%

0.3%

0.1%

-

-

152,956

151,261

164,134+12,874

+8.5%

76.8%

67.7%

71.7%

-

-

199,210

223,377

228,826+5,448+2.4%

100.0%

100.0%

100.0%--

Global markets

Public and commercial buildings

Industrial materials

Home renovation market

Domestic new home market

OthersDomestic market

Total

10
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Fiscal 2023 Business Segment Performance in Three Priority Markets(Unit: million yen)

Global markets

YoY change-7,425Lower sales as a result of
the exclusion of PWT fromconsolidation

Lower sales due to sluggish
sales in China and slowerthan-expected sales of thedoor business in Indonesia

Public and commercial
buildings

YoY change+5,634Higher sales thanks to anincrease in sales of noncombustible products
using Dai-Lite as the basematerial and a recovery
in demand for tatami
materials for commercial
buildings and hotels

Higher sales after the
expansion of sales offunctional doors andacoustic products
matching thecharacteristics of facilities

Higher sales as a result ofa recovery in demand forinterior finishing work foroffice and other buildings.

Home renovation
marketFiscal 2022 (Result)

YoY change+1,656
Sales down as the volumeof tatami replacement
work decreased

Higher sales reflecting a
recovery from delivery
delays and limitations on
the acceptance of orders
in 4Q of the previous fiscal
year

Higher sales attributed tostrong results incondominium renovationin the Tokyo
metropolitan area

Industrial Materials
Business

Building Materials
BusinessEngineering
Business

OthersFiscal 2023 (Result)11
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Fiscal 2024

Forecast

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Fiscal 2024 Market Environment Forecast
Domestic home market◆ Demand for build-for-sale homes, rental properties and renovation will support the demand although demand for owner-built
homes will remain weak amid the deterioration of consumer sentiment following soaring goods prices.

Public and commercial buildings (non-housing sector)◆ Demand for interior finishing work for office and other buildings will grow as construction projects resume.
◆ Demand for commercial facilities and hotels is expected to recover in line with the rallying inbound tourist demand.

MDF market◆ The MDF demand-supply balance is expected to remain loose due partly to shrinking demand for furniture and building
materials applications.

U.S. home market◆ Housing starts are forecast to shift to a recovery from the major plunge in the second half of the previous fiscal year due to theprices of houses staying high and rising interest rates due to latent demand based on population growth and the shortage ofhouses in stock.
◆ Market prices of wood-material products are also expected to depart from the adjustment phase.

Cost of raw materials and logistics◆ While there are signs that prices of wood materials may weaken, the costs of petrochemical products and energy are likely toclimb with the ongoing war in Ukraine, surging prices of resources, worldwide inflation and other factors.

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Fiscal 2024 Forecast
YoY change(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Forecast)Amount%Net sales

199,210

223,377

228,826

235,000+6,174+2.7%

Operating profit

8,779

17,361

9,856

8,000

-1,856-18.8%

Operating profit ratio

4.4%

7.8%

4.3%

3.4%

-0.9pt-Ordinary profit

9,935

18,72513,008

10,900-2,108-16.2%

Profit attributable toowners of parent

5,620

7,872

10,3256,000-4,325-41.9%

Earning per share (yen)215.83302.18396.10230.13-165.97-

Dividend per share (yen)70Interim: 30
Year-end: 40

100
Interim: 45
Year-end: 55

110
Interim: 50
Year-end: 60

120
Interim: 60
Year-end: 60+10-

Dividend payout ratio

32.4%

33.1%

27.8%
* 46.1%

52.1%+24.3pt（+6.0pt）-

DOE（%）

2.9%

3.6%

3.6%

3.7%

+0.1pt-ROE（%）

9.1%

10.9%

12.9%

7.2%

-5.7pt-14
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*Excluding temporary factors

Shareholder Returns and Dividends

15
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Fiscal 2024 Forecast of Changes in Operating Profit(1) Higher costs: Rises in the prices of wood raw materials, adhesives and other petrochemical products(2) Higher logistics expenses: A rise in domestic expenses will be offset by a fall in global expenses.
(3) Streamlining and cost reduction: Costs will be reduced by a decrease in the prices of raw materials.
(4) Selling prices: Rises in energy costs are expected to be incorporated into selling prices.
(5) Change in sales and composition: The decline of sales resulting from the changes in PWT in August in the previous fiscal year
will have an impact.
(6) Other expenses: Increase in expenses, partly reflecting trade fair for sales promotion, investment in human resources, andimprovement of treatment
YoY change(Unit: million yen)

△1,85616
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Fiscal 2024 Business Segment Results Forecast
Industrial Materials Business
Rising costs will be incorporated into selling prices mainly in Japan. However, the exclusion of PWT from consolidation has such asignificant impact that net sales will fall 14.6 billion yen or 15.0% year on year.
Building Materials BusinessNet sales will increase 14.6 billion yen or 15.7% year on year, following a recovery from delivery delays and the limitations on theacceptance of orders and because of the incorporation of rising costs into selling prices.
Engineering BusinessNet sales will increase 2.2 billion yen or 9.1% year on year, reflecting increasing demand for interior finishing work for office andother buildings.
YoY change

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Forecast)AmountYoY change

Industrial Materials
Business

80,692

100,177

97,681

83,000-14,681-15.0%

Building Materials Business

88,69791,90793,000107,600+14,600+15.7%Engineering Business

20,542

20,26424,75627,000+2,244+9.1%

Others

9,277

11,02813,387

17,400+4,013+30.0%

Total

199,210

223,377

228,826

235,000+6,174+2.7%(Unit: million yen)17
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Fiscal 2024 Market Category Sales Forecast(Unit: million yen)
Upper: sales Lower: composition

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Fiscal 2023
(Forecast)

46,254

72,11664,692

23.2%

32.3%

23,709YoY change
Amount%55,000-9,692-15.0%

28.3%

23.4%

-4.9pt-22,48528,12031,000+2,880+10.2%

11.9%

10.1%

12.3%

13.2%

+0.9pt-24,622

19,98526,26524,000-2,265

-8.6%

12.4%

8.9%

11.5%

10.2%

-1.3pt-31,26632,53334,18940,000+5,811+17.0%

15.7%

14.6%

14.9%

17.0%

+2.1pt-73,00875,66775,26985,000+9,731+12.9%

36.6%

33.9%

32.9%

36.2%

+3.3pt

-

351

588

291

0

-291

-

0.2%

0.3%

0.1%

0.0%

-0.1pt-152,956

151,261

164,134

180,000+15,865

+9.7%

76.8%

67.7%

71.7%

76.6%

+4.9pt-199,210

223,377

228,826

235,000+6,173+2.7%

100.0%

100.0%

100.0%

100.0%--

Global markets

Public and commercial
buildings

Industrial materials

Home renovation market

Domestic new home market

OthersDomestic market

Total

18
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Fiscal 2024 Forecast for Business Segment Performance in Three Priority Markets(Unit: million yen)

Global markets

YoY change-9,692The exclusion of PWTfrom consolidation andthe falling selling prices
due to slowing demandfor MDF will have an
impact.

Expansion of sales
channels in Europe willlead to the growth of thedoor business in Indonesia.

Public and commercial
buildings

YoY change+2,880
Sales of non-combustible
products using Dai-Lite as
the base material will
expand and demand fortatami materials willgrow due to the recovery
of inbound tourism
demand.

Proposals will be
stepped up for the
improvement of acoustic
environments andflooring materials fromthe perspective of using
locally produced
materials.

Net sales will increase
following an increase indemand for interior
finishing work for officeand other buildings.

Home renovation
marketYoY change+5,811
Proposals will be stepped up for solutions to problems that
capitalize on the Company's strengths.

Fiscal 2023 (Result)Industrial Materials
Business

Building Materials
Business

Strong results incondominium renovationin the Tokyo
metropolitan area

Engineering
Business

OthersFiscal 2024 (Forecast)19
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Progress against the Medium-Term Management Plan
GP25 3rd StageAll contents copyright ©DAIKEN CORPORATION All rights reserved.

Progress against the Medium-Term Management Plan
GP25 3rd Stage◆ Firmly maintain the business targets set in the medium-term management plan and carry out individual measures in accordancewith the basic policy◆ Implement the 60.0 billion yen investment plan including a strategic investment of 40.0 billion yen◆ Embark on a structural reform of both manufacturing and sales in domestic businesses with the aim of increasing profitability◆ Establish a Comfort Business Control Division to build an integrated system for manufacturing, sales and construction andaccelerate the expansion of new business models mainly focused on public and commercial buildings(Unit: 100 million yen)

GP25 1st Stage

GP25 2nd Stage

GP25 3rd Stage

GP25 3rd Stage

GP25 3rd Stage

Fiscal 2019

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2026

ResultResultResultForecast

Goals

Net sales

1,829

2,233

2,288

2,350

2,500

Domestic market

1,637

1,512

1,641

1,800

1,835

Global market

192

721

646

550

665

Operating profit

57

173

98

80

150

Operating profit
ratio

3.1%

7.8%

4.3%

3.4%

6.0%

Profit attributable toowners of parent

44

78

103

60

100

21
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ESG Topics

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Establishment of an MDF Manufacturing Method
Using a Wood-Derived Adhesive■ Outline and Purpose ■◆ Switch the adhesive used in MDF from the adhesive derived from fossil fuels, which it is feared will be exhausted in the future,
to an adhesive derived from wood, which can be regrown and which has low environmental impact, in an aim to introduce
environmentally-friendly MDF to the market.
◆ Create a sustainable society and a sustainable global environment and increase the sustainability of business.
◆ Ensure differentiation from competitors' MDF in terms of environmental superiority in order to increase competitiveness.

An MDF prototype with a wood-derived adhesive23
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Financial Information

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Fiscal 2023 Consolidated Balance Sheet (Major components)(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

YoY change
AmountCash and deposits

17,433

22,881

19,574-3,307

Notes and accounts receivable- trade38,45440,318

46,119+5,800Inventories

29,52534,48836,331+1,842Other current assets

2,460

4,729

5,372

+643

Total current assets

87,748102,286

107,236+4,950Property, plant and equipment

50,91549,451

39,765-9,685Intangible assets

15,002

14,972

13,506-1,465Investments and other assets

18,835

16,65425,280+8,626

Total assets

172,553

183,391

185,797+2,405

Notes and accounts payable trade23,43527,651

27,835+183

Interest-bearing debt

35,50828,50029,700+1,200

Other current/non-current
liabilities

36,83836,67735,943+734

Total liabilities

95,781

92,82893,478+650

Total shareholders' equity

60,877

66,39574,009+7,614

Total net assets

76,771

90,56392,318+1,755

Total liabilities and net assets

172,553

183,391

185,797+2,405

ROA-

76,487

83,523+7,036

Shareholders' equity ratio

39.4%

41.7%

45.0%

+3.3ptDebt-equity ratio (multiple)

0.52

0.37

0.36

-

Ratio of ordinary profit to total assets◆ Inventories<Major factors>
Buildings and structures
Machinery, equipment and vehicles
Land-9,685◆ Property, plant and equipment<Major factors>
Investment securities
Retirement benefit asset+8,626◆ Interest-bearing debt
<Major factors>
Short-term borrowings
Bonds payable within one year
Long-term borrowings+1,200-3,095-4,658-1,314+7,901+429+5,268-8,000+1,13925
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Fiscal 2023 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

199,210

223,377

228,826+5,448Gross profit

50,881

63,16758,427-4,740

SG&A expenses

42,10245,80548,570+2,764

Operating profit

8,779

17,361

9,856-7,504Non-operating profit(expenses)

1,156

1,363

3,151

+1,788

Ordinary profit

9,935

18,72513,008-5,716Extraordinary income(losses)

1,035

-461

5,513

+5,975

Profit before income taxes

10,97018,264

18,522+258

Total income taxes

3,687

5,188

4,009

-1,178

Profit7,283

13,076

14,513+1,437

1,662

5,203

4,187

-1,015

5,620

7,872

10,325+2,452Average exchange rate(yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

YoY change

USD

106.02112.35137.35+25.00

CAD

30.24

89.59

102.34+12.75

NZD

71.09

78.22

84.34

+6.12

MYR

25.39

26.89

30.41

+3.52

Profit attributable to noncontrolling interests
Profit attributable toowners of parent◆ Non-operating profit (expenses) +1,788<Major factors>
Share of profit of entities accounted forusing equity method+1,868
Income on emission rights-405
Increase in interest income+248
Increase in interest expenses-72
Foreign exchange gains-42
Increase in dividend income+39◆ Extraordinary income (losses)+5,975<Major factors>
Gain on change in equity+4,104Gain on sale of non-current assets+487
Gain on sale of investment securities +256
Extra payments for early retirement-228

26
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Fiscal 2023 Consolidated Statement of Cash Flows(Major components)(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

Operating cash flow

＋12,254+16,834-107

Investing cash flow

-910

-6,636+575

Free cash flow

＋11,344+10,198+468

Financing cash flow

-11,369-10,737+247

Cash and cash equivalents at endof period

17,433

17,407

15,936

Capital expenditures

3,697

2,864

3,924

Depreciation

5,563

5,546

5,192

20,00015,000+16,834+12,254+10,198

10,000+11,344

+467

5,000

+247
0
-5,000

△107

△910

+575

△6,636-10,000△10,737△11,369-15,000

Fiscal 2021
(Result)
Operating cash flow

Fiscal 2022
(Result)
Investing cash flow

Financing cash flow

Fiscal 2023
(Result)
Free cash flow

◆ Operating cash flow
-107
<Major factors>
Profit before income taxes+18,522
Gain on change in equity-4,104Gain on sale of investment securities-1,455
Depreciation+5,192
Amortization of goodwill+1,810Share of profit of entities accounted forusing equity method-1,914
Changes in trade receivables/payables-4,975
Changes in inventories-6,472
Income taxes paid
-4,626◆ Investing cash flow
+575
<Major factors>
Purchase of property, plant andequipment-2,879Other investment-1,747
Sales of property, plant and equipment+1,081
Sales of investment securities+2,149
Increase in time deposits+1,986◆ Financing cash flow
+247
<Major factors>
Redemption of bonds-8,000
Increase in long- and short-termborrowings+20,380
Dividends paid
-2,736
Dividends paid (to non-controlling) -6,437

27
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Initiatives for Reduction of Cross-Shareholdings

28
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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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