Results of Operations for the First Half of the Fiscal
Year Ending March 31, 2023 (Fiscal 2023)

November 22, 2022
DAIKEN CORPORATION(Security code:7905)

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Contents
1. First Half of Fiscal 2023 Financial Results■1H Fiscal 2023 Market Environment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■1H Fiscal 2023 Financial Results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■1H Fiscal 2023 Business Segment Results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■1H Fiscal 2023 Changes in Operating Profit・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■1H Fiscal 2023 Market Category Sales・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■1H Fiscal 2023 Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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2. Fiscal 2023 Full-year Forecast (Revised on Oct. 27)■Fiscal 2023 Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■Fiscal 2023 Forecast of Changes in Operating Profit・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■Fiscal 2023 Business Segment Results Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■Fiscal 2023 Market Category Sales Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・■Fiscal 2023 Forecast for Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・

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３．Medium-Term Management Plan GP25 3rd Stage（FY 2023-2026）■Positioning of the Medium-Term Management Plan GP25 3rd Stage
Basic Policy、Management Goals・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17■Investment for Growth and Enhancement of the Foundation
Initiatives for reduction of cross-shareholdings、Target Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20■Shareholder Return・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
４． Financial Information■1H Fiscal 2023 Consolidated Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25■1H Fiscal 2023 Consolidated Statement of Income･・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26■1H Fiscal 2023 Consolidated Statement of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・・･･･・・・･・・・・・・・・ 27

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First Half of Fiscal 2023
Financial Results

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1H Fiscal 2023 Market Environment
Domestic home market
 Sales of the Company's products did not recover due to the impact of delivery delays and limitations on order acceptance that had occurred to certain
products in the Building Materials Business during the 4Q of the previous year, although demand remained firm in the new home and renovation
markets. In addition, given surging raw material prices coupled with the sharp depreciation of the yen, the difficult situation continued.
Housing starts in Japan(Unit: 10,000)
Housing starts (total)
Owner-built homes
Rental properties
Built-for sale homes

2020
YoY change
39.9-11.2%
12.4-13.7%
14.9-10.8%
6.7-7.4%

January to June
2021
YoY change
41.2
+3.3%
13.4
+7.7%
15.3
+2.6%
6.8
+1.4%

2022
YoY change
41.9
+1.6%
12.3
-8.0%
16.5
+7.5%
7.2
+5.9%

2020
YoY change
41.4-11.3%
13.1-14.2%
15.7-10.8%
6.4-14.5%

April to September
2021
YoY change
44.6
+7.6%
14.9
+13.3%
17.0
+8.6%
7.2
+11.8%

2022
YoY change
44.3
-0.7%
13.2
-10.9%
17.7
+4.3%
7.4
+3.6%

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
 While rising costs for a broad range of items continued to have a negative impact globally, including Japan, inquiries continued to be encouraging,reflecting growth in demand for products used for furniture and building materials in overseas countries, particularly in the U.S., as well as a rise indemand for substitutes for tropical plywood, which was in short supply.

U.S. home market
 Housing starts started to slow in May due to the impact of higher policy interest rates. Even so, the selling price of LVL remained at high levels.
(10,000 units)
200

181.0

160

151.7

178.8
159.1

154.6

159.9
124.1

120

128.1

167.8

165.0
155.4
149.2
140.4

126.5
122.0

158.0

153.0

138.6

162.4

156.4

168.0
145.9 148.8
126.6

121.5

165.7

152.8

156.6
138.8

170.8

150.2
132.3

157.8

162.6

137.5

172.8
173.3

158.4
145.7
Fiscal 2020

127.6

Fiscal 2021
Fiscal 2022

101.1
80

Fiscal 2023

93.4
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

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1H Fiscal 2023 Financial Results
Net sales

Net sales increased, reflecting an increase in the selling price of MDF in both Japan and overseas and that of LVL in the UnitedStates, combined with the effect of the weaker yen, which more than offset a decrease in sales due to the impact of delivery
delays and limitations on the acceptance of orders that had occurred in the Building Materials Business in the 4Q of the previous
fiscal year.

Operating profit

The selling price of LVL remained at high levels in the United States. However, operating profit decreased as streamlining, cost
reductions and the transfer of cost increases to selling prices were unable to offset lower profit attributable to a decline in sales
in the Building Material Business or a rise in raw material and other costs.

Ordinary profit
Net Profit

Both ordinary profit and net profit increased, reflecting the posting as non-operating income of a share of profit of entities
accounted for using the equity method of 0.7 billion yen, which was attributable to the expansion of the business of PWT in the
U.S., and the posting as extraordinary income of a gain on change in equity of 4.1 billion yen due to changes in PWT.
YoY change

1H Fiscal 2023
(Forecast on
June. 6)Rate of progress(vs. forecast on
June. 6)+10.3%

111,000

108.3％

-438

-5.0%

6,800

122.0％

6.9%-1.1pt

-

6.1%

-

9,399

9,928

+529

+5.6%

7,400

134.2%

1,986

4,935

7,771

+2,836+57.5%

6,400

121.4%

76.29

189.45298.17+108.72-245.61-

1H Fiscal 2021
(Result)

1H Fiscal 2021
(Result)

1H Fiscal 2023
(Result)

Net sales

92,671109,002120,263+11,261

Operating profit

2,857

8,736

8,297

Operating profit ratio

3.1%

8.0%

Ordinary profit

3,371

Profit attributable toowners of parent
Earning per share(yen)

Unit: million yen)AmountYoY change5
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1H Fiscal 2023 Business Segment Results
Net sales increased due to rises in the selling price of MDF in Japan and overseas and that of LVL in the U.S. Profit increased

Industrial Materials
because the selling price of LVL remained at high levels in the U.S. and efforts were made to reflect cost increases in selling prices
Businessto offset rising raw materials and other costs.

Building Materials
Business

Profit decreased due to the impact of delivery delays and limitations on order acceptance that had occurred in the 4Q of theprevious fiscal year. An operating loss was posted because increases in raw material and other costs were not offset by efforts topass on cost increases to selling prices, such as revising the catalog prices of products scheduled to be delivered in April andbeyond.

Engineering
Business

Net sales increased, mainly reflecting a recovery in demand for interior finishing work for office and other buildings, and thestrong results of condominium renovations in the Tokyo metropolitan area.

(Unit: million yen)

1H Fiscal 2020
(Result)

1H Fiscal 2021
(Result)

1H Fiscal 2022
(Result)
YoY change

OperatingprofitNet sales

OperatingprofitNet sales

Industrial Materials
Business

36,660889

47,684

6,392

58,571+10,886+22.8%

10,255+3,862+60.4%

Building Materials
Business

42,3091,497

46,602

3,371

43,377-3,224

-6.9%

-561

-3,933-Engineering Business

9,415

253

9,997

391

11,996+1,998+20.0%

172-219-55.9％

Others

4,285

217

4,717

306

6,318

+1,600+33.9%

490＋183＋60.0％----1,726----2,058-332-

92,671

2,857

109,002

8,736

120,263+11,261+10.3%

8,297

-438

-5.0％

Adjustment amount※
Total

OperatingprofitYoY change

YoY change

Net sales

AmountAmountYoY change* Starting from the 1Q of fiscal 2023, to evaluate business performance more appropriately by segment, the Company has decided to adopt the method of allocating expenses related to generaladministration 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. Figures for 2Q of fiscal 2022 reflect reclassification after the adoption while those for fiscal 2021 reflect figures before the adoption.

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1H Fiscal 2023 Changes in Operating Profit(1) Higher costs:(2) Higher expense of logistics:(3) Streamlining/cost reduction:(4) Selling prices:

Increase in the prices of wood raw materials, adhesives, and other petrochemical products
Increase in the cost of sea shipping attributable to the global disruption of sea transportation
Review of items to be purchased and reductions in energy costs overseas
High market prices of wood-material products in the U.S. Implementation of a cost pass-through to MDF in response
to surging raw material prices(5) Change in sales/composition: Impact of a decline in sales attributable to delivery delays and limitations on the acceptance of orders in the 4Q of
the previous fiscal year and decrease in earnings as a result of changes in PWT in August and thereafter(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)-438

7
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1H Fiscal 2023 Market Category Sales(Unit: million yen)
Upper: sales Lower: composition

1H Fiscal 2021
(Result)

Global markets

Public and commercial
buildings

Industrial materials

Home renovation market

Domestic new home market

OthersDomestic market

Total

1H Fiscal 2022
(Result)

1H Fiscal 2023
(Result)

YoY change
AmountYoY change

19,59333,53941,548+8,009+23.9%

21.1%

30.8％

34.5％

+3.7pt-10,897

11,152

12,978＋1,827＋16.4%

11.8%

10.2％

10.8％

+0.6pt-12,201

9,383

13,165＋3,782＋40.3%

13.2%

8.6％

10.9％

＋2.3pt-14,27017,510

16,631

-878

-5.0%

15.4%

16.1％

13.8％

-2.3pt-35,502

36,991

35,622-1,367

-3.7%

38.3%

33.9％

29.6％

-4.3pt

-

209

428

316

-110

-25.9％

0.2%

0.4％

0.3％

-0.1pt-73,07875,46378,715＋3,252

+4.3%

78.9%

69.2％

65.5％

-3.7pt-92,671109,002120,263+11,261+10.3%

100.0%

100.0％

100.0％--

8
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1H Fiscal 2023 Business Segment Performance in Three Priority Markets(Unit: million yen)

Global markets

33,539Public and commercial
buildings+8,185Higher sales, reflecting rises inthe selling prices of LVL and
MDF in the U.S., coupled withthe effect of the weaker yen

Higher sales thanks to anincrease in sales of noncombustible products using
Dai-Lite as the base material
and a recovery in demand fortatami materials forcommercial buildings andhotels

+360

-46

0

-129
YoY change+8,009Lower sales due to sluggish
sales in China and slower-thanexpected sales of the door
business in Indonesia

Lower sales due to the impact
of delivery delays andlimitations on the acceptanceof orders that had occurred in
the 4Q of the previous fiscal
year.

-271

41,548Higher sales as a result of arecovery in demand for interior
finishing work for office andother buildings.

+1,627

YoY change＋111

12,978

11,152Home renovation
marketYoY change-45
17,510

1H Fiscal 2022 (Result)+1,827

Industrial Materials
Business-1,368＋544

Lower sales due to theimpact of delivery delays andlimitations on the acceptanceof orders that had occurredin the 4Q of the previous
fiscal year.

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

Building Materials
BusinessEngineering
Business-9-878

16,631Others1H Fiscal 2023 (Result)

9
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Fiscal 2023 Full-year Forecast（ Revised on Oct. 27 ）All contents copyright ©DAIKEN CORPORATION All rights reserved.

Fiscal 2023 Forecast (Revised on Oct. 27)
In the U.S., the market price of wood material products, which is trending downward, is expected to remain higher than expected, while in Japan,
raw material prices, which have been rising more significantly than expected due to surging resource prices coupled with sharp currency
fluctuations, will maintain that trend in the third quarter and beyond. The forecast has been made based on these assumptions.

(Unit: million yen) Fiscal 2021 (Result) Fiscal 2022 (Result)Fiscal 2023
(Forecast on Oct. 27)

Fiscal 2023
(Forecast on June. 22)[Amount of the revision]

Net sales

199,210

223,377

221,000

Operating profit

8,779

17,361

12,500Operating profit
ratio

4.4%

7.8%

5.7%

Ordinary profit

9,935

18,72514,000

5,620

7,872

10,000215.83302.18383.77

Annual: 70
Interim: 30
Year-end: 40

Annual: 100
Interim: 45
Year-end: 55

Annual: 100
Interim: 50
Year-end: 50

Profit attributableto owners of parent
Earning per share(yen)
Dividend per share(yen)* Include a special dividend of 10
yen in the interim and year-end
dividends, respectively.

Dividend payout
ratio

32.4%

ROE

9.1%

33.1%

10.9%

234,000[+13,000]
13,000[+500]
5.6%[-0.1pt]
15,500[+1,500]
11,000[＋1,000]

YoY change
AmountYoY change+10,622+4.8%-4,361-25.1%-2.2pt--3,225-17.2%+3,127+39.7%+119.79-

Annual: 110
Annual: +10
Interim: 50
Interim: ± 0
Year-end: 60 Year-end: ＋10[Dividend increaseof 10 yen]-421.97

26.1%

26.1%

Excluding temporary factors:

Excluding temporary factor:

32.6%

-

41.6%

-7.0pt＋8.5pt13.6%- Excluding temporary factors:
8.7%＋2.7pt-2.2pt-11
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Fiscal 2023 Forecast of Changes in Operating Profit (Forecast on Oct. 27)(1) Higher costs:(2) Higher expense of logistics:(3) Streamlining/cost reduction:(4) Selling prices:

Increase in the prices of wood raw materials, adhesives, and other petrochemical products
Increase in the cost of sea shipping attributable to the global disruption of sea transportation
Reexamination of all categories of items to be purchased, etc.
Passing the rising cost of raw materials of MDF to the selling price is assumed in Japan. In addition, according to theinitial forecast, market prices for wood material products were expected to move into a correction phase in thesecond half and beyond in the U.S., the impact of which however is expected to decline due to changes in PWT.
(5) Change in sales/composition: The impact of lower sales mainly in the first half due to delivery delays and limitations on order acceptance and adecrease in revenue as a result of changes in PWT(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)

-4,361

12
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Fiscal 2023 Business Segment Results Forecast (Forecast on Oct. 27)
Industrial Materials
Business

It is expected that in the U.S., demand will be affected by higher interest rates and that market prices for wood-material
products will enter a correction phase. Even so, sales are expected to increase 11.5 billion yen from the forecast in June 2022 inconsideration of the upswing in the 2Q. Sales are expected to increase 1.4% year on year.

Building Materials
Business

The reflection of cost increases in selling prices is factored in to deal with sharper-than-expected raw material price hikes.
However, sales are expected to decrease 0.8 billion yen from the forecast in June 2022, reflecting the impact of lower sales due
to deliver delays and limitations on order acceptance that had occurred in the 4Q of the previous fiscal year. Sales are expected
to increase 3.0% year on year.

Engineering Business

The initial expectation of a 23.4% sales growth remains unchanged in light of an expected recovery in demand for interior workfor buildings, as well as the solid results of condominium renovation in the Tokyo metropolitan area.

(Unit: million yen)

Fiscal 2020
(Result)

Fiscal 2021
(Result)

Fiscal 2023
(Forecast on
June. 22)

Fiscal 2023
(Forecast on
Oct. 27)[Amount of the revision]YoY change
AmountYoY change

Industrial Materials
Business

80,692

100,177

90,100101,600[+11,500]＋1,422＋1.4％

Building Materials
Business

88,69791,907

95,50094,700[-800]+2,792+3.0%

Engineering Business

20,542

20,26425,00025,000+4,735+23.4%

Others

9,277

11,028

10,40012,700[+2,300]＋1,671＋15.2%

Total

199,210

223,377

221,000

234,000[+13,000]＋10,622＋4.8％

13
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Fiscal 2022 Market Category Sales Forecast (Forecast on Oct. 27)(Unit: million yen)
Upper: sales Lower: composition

46,254

Fiscal 2023
Fiscal 2023
(Forecast on June. (Forecast on Oct. 27)[Amount of the revision]
22)
69,30072,11660,500

23.2%

32.3%

27.4%

23,70922,485

11.9%

Fiscal 2020
(Result)

Fiscal 2021
(Result)

29.6%-2.7pt-26,80026,800＋4,314＋19.2%

10.1%

12.1%

11.5%

＋1.4pt-24,622

19,98520,700＋4,614＋23.1%

12.4%

8.9%

9.4%

＋1.6pt-31,26632,53335,200＋2,866

＋8.8%

15.7%

14.6%

15.9%

＋0.5pt-73,00875,66777,800＋2,232

＋3.0%

36.6%

33.9%

35.2%

33.3%

-0.6pt

-

351

588

0

０

-588

-

0.2%

0.3%

0.0%

0.0%

-0.3pt-152,956

151,261

160,500＋13,438

＋8.9%

76.8%

67.7%

72.6%

＋2.7pt-199,210

223,377

221,000＋10,622＋4.8%

100.0%

100.0%

100.0%--

Home renovation market

OthersDomestic market

YoY change-3.9%

Industrial materials

Domestic new homemarketAmount-2,816[+8,800]

Global markets

Public and commercial
buildings

YoY change

Total

24,600[+3,900]
10.5%

35,400[+200]
15.1%

77,900［＋100]

164,700[+4,200]
70.4%

234,000[+13,000]
100.0％

14
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Fiscal 2023 Forecast for Business Segment Performance in Three
Priority Markets (Forecast on Oct. 27)(Unit: million yen)

Global markets-2,233-62-521
YoY change

72,116

The transfer of additionalcosts to selling prices will be
continued for MDF. Sales are
expected to decrease due tothe impact of changes in
PWT, although selling prices
for LVL will remain at highlevels through the first half in
the U.S.

-2,816Lower sales due to sluggish
sales in China and slowerthan-expected sales of thedoor business in Indonesia

YoY change

Public andcommercial buildings+773
22,485

Expanding sales of noncombustible products using
Dai-Lite as the base material
and recovery in demand fortatami materials forcommercial buildings andhotelsHome renovation
market-93
32,533Fiscal 2022 (Result)

69,300+1,232The expansion of sales of
products that improve thesound environment and arecovery is expected in thesecond half from the impact
of delivery delays andlimitations on theacceptance of orders that
occurred in the 4Q of theprevious fiscal year.

+1,376
A recovery is expected in thesecond half from the impact
of delivery delays andlimitations on the acceptanceof orders that occurred in the
4Q of the previous fiscal year.

Industrial Materials
Business

Building Materials
Business+2,488-178+4,31426,800Recovery in demand forinterior finishing work foroffices and other properties

YoY change+1,651-68

Expansion of condominium
renovations in the Tokyo
metropolitan area

Engineering
Business+2,86635,400

OthersFiscal 2023 (Forecast)15
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Medium-Term Management Plan GP25 3rd Stage（FY2023-2026）

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Positioning of the Medium-Term Management Plan GP25 3rd Stage17
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Basic Policy

18
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Management Goals

19
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Investment for Growth and Enhancement of the Foundation20
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Initiatives for reduction of cross-shareholdings21
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Target Balance Sheet22
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Shareholder Return23
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Financial Information

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1H Fiscal 2023 Consolidated Balance Sheet (Major components)(Unit: million yen)

Fiscal 2021
(Result)

Fiscal 2022
(Result)

1H Fiscal 2023
(Result)

YoY change
AmountCash and deposits

17,433

22,881

20,369-2,512

Notes and accounts receivable- trade38,45440,31846,637+6,319Inventories

29,52534,48734,507+20

Other current assets

2,333

4,597

4,110

-487

Total current assets

87,748102,286

105,627+3,341

Property, plant and equipment

50,91549,451

41,145-8,306

Intangible assets

15,002

14,972

14,467-505

Investments and other assets

18,835

16,65425,724＋9,070Total assets

172,553

183,391

186,980+3,588Notes and accounts payable trade23,43527,65029,586+1,936

Interest-bearing debt

35,50828,50028,435-65

Other current/non-current
liabilities

36,83836,67835,235-1,443

Total liabilities

95,781

92,82893,256＋428

Total shareholders' equity

60,877

66,39572,759+6,364

Total net assets

76,771

90,56393,723+3,160Total liabilities and net assets

172,553

183,391

186,980+3,588

Shareholders' equity ratio

68,04376,487

83,599+7,112

Debt-equity ratio (multiple)

39.4%

41.7%

44.7%

＋3.0ptNet debt-equity ratio(multiple)

0.52

0.37

0.34

-0.03

◆ Inventories-8,306<Major factors>
Impact of changes in PWT-8,374
Depreciation-2,407
Acquisition/Construction in progress+1,672
Exchange rate changes, etc.
+803

◆Property, plant and equipmen +9,070<Major factors>
Increase in investment securities +8,724* Portion accounted for by changes in
PWT+9,673◆ Total net assets+3,160<Major factors>
Increase in retained earnings+6,338Foreign currency translation adjustment+1,992
Non-controlling interests-3,951
Deferred gains or losses on hedges -596
Valuation difference on
available-for-sale securities-559

25
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1H Fiscal 2023 Consolidated Statement of Income(Information about non-operating profit (expenses) and extraordinary income (losses))(Unit: million yen)

1H Fiscal 2021
(Result)

1H Fiscal 2022
(Result)

1H Fiscal 2023
(Result)

YoY change
AmountNet sales

92,671109,002120,263＋11,261

Gross profit

23,16930,523

33,839＋3,315

SG&A expenses

20,311

21,78625,541＋3,754

Operating profit

2,857

8,736

8,297

-438

Non-operating profit(expenses)

+514

+664

+1,631+967

Ordinary profit

3,371

9,399

9,928

＋529

Extraordinary income (losses)

+235

＋958

＋4,389＋3,431

Profit before income taxes

3,607

10,357

14,317+3,960Total income taxes

1,025

3,103

2,817

-285

Profit

2,581

7,253

11,499+4,245

595

2,318

3,728

＋1,409

1,986

4,935

7,771

＋2,836

Profit attributable to noncontrolling interests
Profit attributable to ownersof parent

Exchange rate (yen)1H Fiscal 2021
(Result)

1H Fiscal 2022
(Result)

1H Fiscal 2023
(Result)◆ Non-operating profit (expenses) +967
<Major factors>
Share of profit of entities accounted forusing equity method+715
Foreign exchange gains+202
Increase in interest income+96
Increase in dividend income+21
Decrease in interest expenses+19
Income on emission rights-157◆ Extraordinary income (losses) +4,389<Major factors>
Gain on change in equity+4,104Gain on sale of investment securities+368
Gain on sale of non-current assets +122
Loss on retirement of non-current assets-98
Loss on disaster-55

YoY change
AmountUSD

106.82109.76139.00＋29.24

CAD

78.62

88.20

103.73＋15.53

NZD

68.32

77.63

84.48

+6.85

MYR

25.06

26.35

30.31

＋3.96

26
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1H Fiscal 2023 Consolidated Statement of Cash Flows (Major components)
1H Fiscal 2021
(Result)(Unit: million yen)

1H Fiscal 2022
(Result)

1H Fiscal 2023
(Result)

Operating cash flow

＋3,640＋6,085-815

Investing cash flow

-1,827-2,871-1,425

Free cash flow

+1,813＋3,214-2,240Financing cash flow

+217

-6,084＋1,674

Cash and cash equivalents at end of
period19,011

14,546

14,638

Capital expenditures

1,571

1,277

2,391

Depreciation

2,744

2,800

2,725

8,000

+6,085

6,000
4,000

+3,640+3,214+1,8132,000+1,674+217

0-1,425-815-2,000-1,827-2,240-2,871-4,000-6,000-6,084-8,000

1H Fiscal 2021

1H Fiscal 2022

1H Fiscal 2023

（Result）（Result）（Result）

Operating cash flow

Investing cash flow

Financing cash flow

Free cash flow

◆ Operating cash flow
-815
<Major factors>
Profit before income taxes+14,317
Gain on change in equity-4,104Gain on sale of investment securities -368
Depreciation+2,725
Amortization of goodwill+929
Share of loss (profit) of entities accounted
for using equity method-736
Changes in trade receivables/payables-5,707
Changes in inventories-4,405
Income taxes paid
-3,098◆ Investing cash flow
-1,425<Major factors>
Purchase of property, plant and equipment-1,584
Other investment-1,130
Sales of Property, plant and equipment+608
Sales of investment securities+538
Increase in time deposits+155◆ Financing cash flow
+1,674<Major factors>
Redemption of bonds-5,000
Increase in long- and short-termborrowings+13,197
Dividends paid
-1,433
Dividends paid (to non-controlling)-5,031

27
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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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