Results of Operations for the First Half of
the Fiscal Year Ending March 31, 2021 (Fiscal 2021)

November 18, 2020
DAIKEN CORPORATION(Security Code: 7905)

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Contents
1. Impact of the Spread of COVID-19 Infections and Status of Our Response■Impact of the Spread of COVID-19 Infections and Status of Our Response ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
2. First Half of Fiscal 2021 Financial Results■1H Fiscal 2021 Market Environment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6■1H Fiscal 2021 Financial Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7■1H Fiscal 2021 Business Segment Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8■1H Fiscal 2021 Changes in Operating Profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9■1H Fiscal 2021 Market Category Sales ・・・・・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10■1H Fiscal 2021 Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
3. Fiscal 2021 Forecast■Fiscal 2021 Forecast ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13■Fiscal 2021 Forecast of Changes in Operating Profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14■Fiscal 2021 Business Segment Forecasts・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15■Fiscal 2021 Forecast of Market Category Sales・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16■Fiscal 2021 Forecast for Business Segment Performance in Three Priority Markets・・・・・・・・・・・・・・・・・・・・・ 17
4. Activities in Priority Markets■Overseas Activities in North America・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 19■Japan More Non-combustible Products・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ ・・・・・・・・・・・・・・・・・・・ 20■Japan More Virus-resistant Building Materials・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21■Market Composition of Sales (Medium-term management plan portfolio goal)・・・・・・・・・・・・・・・・・・・・・・・・ 22
5. Financial Information■1H Fiscal 2021 Consolidated Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 24■1H Fiscal 2021 Consolidated Statement of Income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25■1H Fiscal 2021 Consolidated Statement of Cash Flows・・・・・・・・・・・・・・・・・・･････・・・・・・・・・・・・・・・・・・・･･ 26

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Impact of the Spread of COVID-19 Infections
and Status of Our Response

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Impact of the Spread of COVID-19 Infections and Status of Our Response
1Q
 All activities at Daiken involving the COVID-19 crisis are overseenby the New Coronavirus Response Headquarters, which issupervised by the president of Daiken.
 Since April (state of emergency in Japan): Used teleworking to
reduce by 80% people working at Daiken business sites. After the
Corporate levelend of the state of emergency, this ratio was about 50% at theTokyo, Osaka and other business sites. Operations returned toalmost normal at business sites other than in major metropolitan
areas.
After the end of the state of emergency, showrooms reopened
but require reservations.
Domestic
 Okayama plant, Takahagi plant, Mie plant, Inami plant, otherproductiongroup factories - Continuing operations after production
bases
adjustments at some locations.
 Malaysia: Operated two MDF plants with 50% workforce
reduction; since mid-May, operating consistently with about 90%of the workforce.
 New Zealand: Two MDF plants are operating normally following
the April lockdown.
Overseas North America: The Canada veneer plant is continuing to operate
production
normally; the U.S. LVL plant cut output 60% in April-May but thenbases
slowly raised output and has been operating normally since July.
 China: Suspended operations after the spring festival until Feb.
17; resumed operations with 70% capacity utilization andreturned to normal operations in June.
 Indonesia: Suspended operations in May and resumed operationin early June after the Lebaran holidays.
 Capital expenditure freeze: Stopped investments based on theoutlook for sales growth.
Response to Thorough review and careful selection of expenses.
risks Increased cash and deposits (liquidity) because of the uncertain
outlook for market conditions.

2Q
Continued these activities

Continued these activities

Continued these activities
Normal operations
Normal operations
Normal operations
Normal operations
Normal operations

Continued these activities
As of September 30, 2020, liquidity ¥24.0 billion (up ¥2.1 billon
from the end of March)
Cash and deposits were ¥19.0 billion and there was an unused
committed credit line of ¥5.0 billion

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First Half of Fiscal 2021
Financial Results

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1H Fiscal 2021 Market Environment
Domestic home market
 The downturn after the October 2019 consumption tax hike and the COVID-19 crisis have held down housing starts and homerenovations.
Housing starts in Japan (1H Fiscal 2021)(Unit: 10,000)（単位:万戸）Housing starts (total)
新設住宅着工戸数
Owner-built
うち持家 homes
Rentalproperties
うち貸家
Built-forsale homes
うち分譲戸建Jan.-Jun. 20192019年1-6月
44.9
14.4
16.7
7.2

Jan.-Jun. 20202020年1-6月
39.8
12.4
14.9
6.7

YoY
change増減率△11.4%△13.7%△11.0%△7.4%

Apr.-Sep. 2019
Apr.-Sep. 20202019年度4-9月
2020年度4-9月
46.7
41.4
15.3
13.1
17.5
15.7
7.5
6.4

YoY
change増減率△11.3%△14.2%△10.8%△14.5%

Public and commercial buildings (non-housing sector)
 Shutout of foreign tourists had a big negative impact due to commercial building and hotel construction suspensions andpostponements.
 Overall construction demand is low because the Tokyo Olympics/Paralympics were scheduled for 2020.
Cost of raw materials and logistics
 Prices of imported plywood and crude oil/naphtha declined, resulting in lower prices of energy and of plastics and otherchemical products.
The negative effect of the upturn in logistics expenses in the prior fiscal year has ended.
The MDF market
 Still very challenging due to the continuing downturn from the prior fiscal year, chiefly in Asia, because of U.S.-China trade
friction and other reasons, and to lower furniture and building material demand as economic activity plunged because of
COVID-19.
Recent U.S. home market
 In the 1Q, a big negative impact of the drop in demand caused by construction suspensions due to COVID-19.
In the 2Q and afterward, housing starts recovered rapidly.
Month
年月
Housing starts (10,000, annualized)
住宅着工件数（万件・年換算）
YoYchange
前年比

Apr. 20202020年4月
93.4△27.1%

May 2020
2020年5月
101.1△20.1%

Jun. 20202020年6月
122.0
△1.7%

Jul. 20202020年7月
149.2+22.8%

Aug. 20202020年8月
138.8
+0.1%

Sep. 20202020年9月
141.5+11.8%

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1H Fiscal 2021 Financial Results
Net sales:

Four subsidiaries (two North America subsidiaries and renovation and solid wood flooring businesses)
newly consolidated in 2Q Fiscal 2020 contributed to sales, but first half sales were down 5.0% because oflower sales of products in existing businesses. (Sales were down 10.5% after excluding the four newly
consolidated subsidiaries.)

Operating profit:

Earnings benefited from measures to streamline operations and cut costs including SG&A expenses as well
as from the four newly consolidated subsidiaries. But operating profit fell 24.6% as these positive effects
were outweighed by lower sales of products in existing businesses.

Vs. initial forecast:

Sales and earnings exceeded the 1H forecast because the U.S. home market recovered faster than expected.

(Unit: million yen)

1H Fiscal 2020
(Result)

1H Fiscal 2021
(Result)

YoY change
Amount1H Fiscal 2021

(Forecast on Aug. 7)%

Vs. 1H results

Net sales

97,54892,671-4,876-5.0%

89,000+3,671

Operating profit

3,790

2,857

-932

-24.6%

2,000

+857

Operating profit
ratio

3.9%

3.1%

-0.8pt-2.2%+0.9ptOrdinary profit

4,197

3,371

-825

-19.7%

2,200+1,171

Profit attributable toowners of parent

2,087

1,986

-100

-4.8%

1,400

+586

Earnings per share
(yen)

80.21

76.29

-3.92

-4.9%

53.77

+22.52

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1H Fiscal 2021 Business Segment Results
Industrial Materials Business:

Building Materials Business:

Engineering Business:

Sales increased because of the two North America subsidiaries newly consolidated in 2Q Fiscal
2020 but earnings were down due to lower MDF, tatami and other sales in existing businesses
due to COVID-19.
Sales increased for public-sector projects and commercial buildings, but sales in the new homeand renovation categories decreased due to the downturn following the October 2019consumption tax hike and to COVID-19. The result was lower sales and earnings.
The renovation and solid wood flooring businesses newly consolidated after 2Q Fiscal 2020
increased sales, but sales and earnings decreased because of lower demand for interior
finishing work at office and other buildings.
1H Fiscal 2020
(Result)(Unit: million yen)

Net sales

1H Fiscal 2021
(Result)

OperatingprofitNet sales

OperatingprofitYoY change
Amount%YoY change
Amount%Industrial Materials
Business

36,3651,129

36,660

+294

+0.8%

889

-240

-21.3%

Building Materials
Business

46,6522,226

42,309-4,342

-9.3%

1,497

-729

-32.8%Engineering Business

10,152

329

9,415

-736

-7.3%

253

-75

-23.1%

Others

4,376

104

4,285

-91

-2.1%

217

+112

+108.2%

97,5483,790

92,671-4,876

-5.0%

2,857

-932

-24.6%Total

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1H Fiscal 2021 Changes in Operating Profit
1) Higher costs: Only a small effect because prices of raw materials started to decline
2) Higher expense of logistics: The negative effect of the increase in Fiscal 2020 has ended
3) Streamlining/cost reduction: Cut fixed manufacturing expenses, reexamined purchased products, decline in prices of imported
plywood
4) Higher selling prices to reflect higher costs: Increased to reflect big increase in logistics expenses that started late in 1Q Fiscal 2020
5) Change in sales/composition: Big decrease in existing product sales in the industrial materials and building materials businesses
6) Other expenses: Decreased due to the decline in business activity caused by COVID-19 and to a thorough review and carefulselection of expenses(Unit: million yen)+390
+1,100-130-2,700

-200

3,790

+608
YoY change

2,857

-932
'20/3期2Q
1H
Fiscal 2020
(Result)（実績）

コストアップ
Higher
costs
(1)
①

物流費増
Higherexpenseof logistics
②
(2)

合理化
Streamlining/
cost
reduction
コストダウン(3)③

売価への転嫁Higher selling
prices to④ reflect
higher costs(4)

売上増減・構成差
Change in sales/
Composition
⑤
(5)

その他経費
Other
expenses(6)⑥'21/3期2Q
1H
Fiscal 2021
(Result)（実績）

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1H Fiscal 2021 Market Category Sales(Unit: million yen)
Upper: sales Lower: composition

1H Fiscal 2020
(Result)

Global markets
Public and commercial
buildings
Industrial materials

Home renovation market
Domestic new homemarketOthersDomestic market

Total

YoY change

1H Fiscal 2021
(Result)

Amount%16,255

19,593+3,338+20.5%

16.7%

21.1%

+4.4pt-11,024

10,897

-126

-1.1%

11.3%

11.8%

+0.5pt-14,174

12,201-1,972-13.9%

14.5%

13.2%

-1.3pt-16,24914,270-1,979-12.2%

16.7%

15.4%

-1.3pt-39,44735,502-3,945-10.0%

40.4%

38.3%

-2.1pt

-

400

209

-192

-47.9%

0.4%

0.2%-0.2pt-81,29373,078-8,215-10.1%

83.3%

78.9%

-4.4pt-97,54892,671-4,876-5.0%

100.0%

100.00%--10
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1H Fiscal 2021 Business Segment Performance in Three Priority Markets(Unit: million yen)

Global markets-261+3,415

16,255

Public and commercial
buildings

Negative effect of
MDF market
adversity but higher
sales due to the two
North America
subsidiaries newly
consolidated in 2Q
Fiscal 2020

-333
11,024

Decline incommercial
building/hoteltatami orders
brought down sales

Home renovation
market1H Fiscal 2020
(Result)+184

Lower sales in China
and Indonesia due to
COVID-19+3,33819,593Higher sales due tomore sales of doors
for elderly andmedical facilities andto the solid woodflooring business
newly consolidated
in 3Q Fiscal 2020

+638

COVID-19 reduced
sales of flooringmaterials, doors andother products forbuilding interiors-310
16,2490

Sales down as thevolume of tatami
replacement work
decreased-1,361

Industrial Materials
Business

Building Materials
Business-424-8Lower sales becauseof decrease indemand for interior
finishing work at
office and otherbuildings

10,897Fewer renovation
projects because of
COVID-19 resulted inlower sales

-312

-126

+3

-1,97914,270Engineering
Business

Others1H Fiscal 2021
(Result)

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Fiscal 2021
Forecast

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Fiscal 2021 Forecast
Forecast assumptions:

Expect Japan housing starts to remain mostly at the 2Q level and a small downward correction of U.S.
housing starts due to the overheated market caused by the rapid recovery.

Net sales:

Contributions from the four subsidiaries newly consolidated in 2Q Fiscal 2020, but forecast a 6.2%
decrease because of lower sales of products in existing businesses. (8.8% decrease after excluding thefour newly consolidated subsidiaries.)

Operating profit:

Streamlining/cost reduction measures will continue, but forecast a 24.9% decrease because of lower
sales.

Shareholder returns:

Due to priority on dividend stability as for the interim dividend, forecast a year-end dividend of ¥30.
(FY dividend of ¥60)

(Unit: million yen)

Fiscal 2020
(Result)

Net sales

YoY change

Fiscal 2021
(Forecast)Amount%202,481

190,000-12,481-6.2%

Operating profit

8,384

6,300

-2,084-24.9%

Operating profit ratio

4.1%

3.3%

-0.8pt-Ordinary profit

9,108

7,000

-2,108-23.2%

Profit attributable to ownersof parent

5,447

4,000

-1,447-26.6%

Earnings per share (yen)209.32

153.61-55.71

-

70

60

-10

-

Dividend per share (yen)(Interim 35, Year-end 35）(Interim 30, Year-end 30)

Dividend payout ratio

33.4%

39.1%

+5.7pt

-

ROE

9.5%

6.9%

-2.6pt-13
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Fiscal 2021 Forecast of Changes in Operating Profit
1) Higher costs: Only a small effect because of downturn in prices of raw materials
2) Higher expense of logistics: The increase that occurred in Fiscal 2020 has ended
3) Streamlining/cost reduction: Cut fixed manufacturing expenses, reexamine purchased products, decline in prices of imported
plywood
4) Higher selling prices to reflect higher costs: Prices raised due to a big increase in logistics expenses starting in late 1Q Fiscal
2020; contribution to earnings growth ended in 1H Fiscal 2021
5) Change in sales/composition: Big decrease in existing product sales in the industrial materials and building materials businesses
6) Other expenses: Decrease due to thorough review and careful selection of expenses(Unit: million yen)

＋400
-300

＋2,300-400-5,000
＋916

8,384
6,300

YoY change-2,084
Fiscal2020'20/3期(Result)（実績）

Highercosts
コストアップ(1)①

Higherexpense
物流費増
of logistics②(2)

Streamlining/
合理化
cost
reduction
コストダウン(3)③

Higherselling
売価への転嫁prices toreflect④
higher costs(4)

Change in sales/
売上増減・構成差
Composition
⑤
(5)

Other
expenses
その他経費
(6)
⑥

Fiscal2021'21/3期(Forecast)（予想）

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Fiscal 2021 Business Segment Forecasts
Industrial Materials Business:

Sales down 1.6%. The two North America subsidiaries newly consolidated in 2Q Fiscal 2020 will contribute tosales growth, but anticipate lower MDF, tatami and other sales in existing businesses.

Building Materials Business:

Sales down 8.6%. Forecast higher sales in the public-sector projects and commercial buildings and an upturn
after the 2Q, when sales were down YoY in due to the surge in 2Q Fiscal 2020 sales prior to the consumption
tax hike. But expect lower segment sales because of the big impact of declines in sales in the new home andrenovation categories.

Engineering Business:

Sales down 10.1%. Anticipate contributions to sales from a recovery in the renovation business and from thesolid wood flooring business (construction) newly consolidated in 3Q Fiscal 2020. But expect a substantial
decrease in interior finishing work because the volume of construction work in Japan is low in Fiscal 2020.

(Unit: million yen)

Fiscal 2020
(Result)

YoY change

Fiscal 2021
(Forecast)Amount%Industrial Materials Business

76,58975,380-1,209-1.6%

Building Materials Business

94,93886,770-8,168-8.6%

Engineering Business

21,713

19,520-2,193-10.1%

Others

9,240

8,330

-910

-9.9％

202,481

190,000-12,481

-6.2％

Total

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Fiscal 2021 Forecast of Market Category Sales(Unit: million yen)
Upper: sales Lower: composition

Fiscal 2020
(Result)

Global markets
Public and commercial
buildings
Industrial materials

Home renovation market

Domestic new home market

OthersDomestic market

Total

YoY change

Fiscal 2021
(Forecast)Amount%36,51641,000+4,484+12.3%

18.0%

21.6%

+3.6pt-26,292

23,650-2,642-10.0%

13.0%

12.4%

-0.6pt-28,48324,350-4,133-14.5%

14.1%

12.8%

-1.3pt-31,777

29,170-2,607

-8.2%

15.7%

15.4%

-0.3pt

-78,63071,430-7,200

-9.2%

38.8%

37.6%

-1.2pt

-

783

400

-383

-48.9%

0.4%

0.2%-0.2pt-165,965

149,000-16,965-10.2%

82.0%

78.4%

-3.6pt-202,481

190,000-12,481-6.2%

100.0%

100.00%--16
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Fiscal 2021 Forecast for Business Segment Performance in Three Priority Markets
Global markets

36,516

Public and commercial
buildings+4,474
MDF market
adversity is
continuing, but
forecast sales
growth because of
the newly
consolidated North
American subsidiaryin 2Q Fiscal 2020

+36

0

-26

Recovery in demandin China from the
COVID-19 downturn
late in Fiscal 2020

Sales down due to a
decline in commercial
building/hotel tatami
ordersHigher sales due tomore sales of doors
for elderly andmedical facilities andto the solid woodflooring business
newly consolidated
in 3Q Fiscal 2020

-890

+797

(Unit: million yen)

+4,48441,000

Sales down as
demand for interior
finishing work at
office and otherbuildings falls during
a lull in construction
activity in Japan-2,390-159

26,292-2,642
23,650Home renovation
market-379
31,777

Sales down as thevolume of tatami
replacement work
decreases

Fiscal 2020
(Result)

Industrial Materials
Business-2,223
COVID-19 reduces
sales of flooringmaterials, doors andother products forbuilding interiors

Building Materials
Business

No change in sales
as renovation
demand recovers
from the COVID-19
downturn-1-4-2,607

29,170Engineering
Business

OthersFiscal 2021
(Forecast)17
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Activities in Priority Markets

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Overseas Activities in North America
Two goals to aim for more growth. Build a stronger foundation for operations by maintaining a stable supply of wood, using awarehouse for more cooperation among group companies and taking other actions. Become more profitable by increasing thenumber of products with substantial added value.
Veneer

LVL

CanadaPACIFIC WOODTECH CORPORATION (PWT)CIPA Lumber Co. Ltd. (CIPA)

A consistent supply of wood
Major current products

Structural LVL

U.S.

Wood scaffold panels

Use veneer warehouse for more group cooperation
Products with more added value

LVL with a preservative

LVL

J-joistA deck made of antiseptic LVL

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Japan More Non-combustible Products
Non-combustible products incorporate Dai-Lite, an exclusive Daiken material that will not burn. These products have the fireresistant properties required by public-sector and commercial buildings as well as ease of processing and a finish that is ideal for
creating attractive interior spaces. Activities are way to enlarge the lineup of these products.

Ceiling using eaves

Ceiling materials

Wall materials

Louver materials

Dai-Lite is an exclusive Daiken material
that incorporates volcanic ash

Shirasu (volcanic ash) androck wool

Dai-Lite20
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Japan More Virus-resistant Building Materials
Functional building materials are increasingly used in doors for elderly and medical facilities and other components of public-sector
and commercial buildings. Daiken is expanding the lineup of products with BIOTASK, an antiviral function developed by Daiken.
These products help create safe, healthy and comfortable interior spaces.

Antiviral function BIOTASKDoors for elderly facilities

Cross-section

Surface

Virusresistant
substance

Antiviral substance
Antiviral layer
Coloration layer

Base

BIOTASK protection

Doors for medical facilities

Removesmorethan 99%of viruses

Eliminates most viruses on the
product’s surface

Product with antiviraltreatment
Immediately after application of BIOTASK*BIOTASK is a registered trademark of Daiken for its antiviral function.

After 24 hours

Examples of surfaces using BIOTASKDoors for kindergartens/childcare facilities

Research and development activities

The Daiken R&D center

A viral plaque assay

Evaluating antiviralproperties

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Market Composition of Sales (Medium-term management plan portfolio goal)
その他
Other

Domestic newhome market

国内新築住宅市場

Industrial

産業資材分野materials

Home renovation
住宅リフォーム市場
marketPublic and commercial
公共・商業建築分野
buildings

Global markets
海外市場

100%
6.1%
90%

9.9%

6.5%

10.0%

7.2%

10.5%
18.0%

11.6%

Global21.6%

markets
海外市場

12.4%

Public and
公共・商業建築分野
commercial
buildings

23%

11.6%
80%
17.1%

17.1%

70%

13.0%
17.0%
15.5%

14%
15.7%

60%
21.2%

20.4%

15.4%
19.6%

50%

Home renovation
market
住宅リフォーム市場
17%

19.5%
14.1%

12.8%

Industrial
materials
産業資材分野

40%

16%
30%
45.0%

45.5%

20%

44.0%

42.4%

38.8%

37.6%

Domestic new homemarket
国内新築住宅市場
30%

10%■More growth in North America■Growth of industrial materials using
MDF and M&A■■More sales of products withfunctions for specific facilities
Non-combustible products for new
ideas for interiors
Ideas for using materials made in a
specific region
More building materials with antiviralproperties
Increase sales of doors for elderly,
medical and other facilities■■Growth of the solid wood flooringbusiness■ More orders for building interior
projects■More ideas for easy-to-install
products■More renovation and condominium
improvement orders■Create new applications for industrial
materials■Start selling civilengineering/gardening products■Use distinctive products competitors
cannot match to increase market
share

0%

Fiscal 20162016年3月期(Result)
実績

BM

Fiscal 20172017年3月期(Result)
実績

Fiscal 20182018年3月期(Result)
実績

GP25 1st Stage

Fiscal 20192019年3月期(Result)
実績

Fiscal 20202020年3月期(Result)
実績

Fiscal 2021
2021年3月期(Forecast)
予想

GP25 2nd Stage

Fiscal 2022
2022年3月期(Target)目標■Industrial Materials Business■Building Materials Business■Engineering Business22
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Financial Information

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23

1H Fiscal 2021 Consolidated Balance Sheet (Major components)(Unit: million yen)

Fiscal 2020
(Result)

2Q Fiscal 2021
(Result)

YoY change

Cash and deposits

16,83919,011+2,172

Notes and accounts
receivable-trade

42,09237,515-4,577

Inventories

27,01027,453+443

Other current assets

1,990

2,058

+68

Total current assets

87,93486,038-1,896

Property, plant andequipment

51,42651,069-357

Intangible assets

14,834

14,624-210

Investments and otherassets

16,351

16,759+408

Total assets

170,638

168,562-2,076

Notes and accounts
payable-trade

26,84624,164-2,682

Interest-bearing debt

43,87645,071+1,195

Other current/non-current
liabilities

36,94031,930-5,010Total liabilities

107,662

101,165-6,497

Total shareholders’ equity

57,05958,164+1,105

Total net assets

62,97567,397+4,422

Total liabilities and net
assets170,638

168,562-2,076

Shareholders’ equity ratio

32.7%

35.3%

＋2.6pt

0.79

0.76

-0.03

0.48

0.44

-0.04

Debt-equity ratio(multiple)
Net debt-equity ratio(multiple)◆Cash and deposits<Major factors>
Increased liquidity*Separate unused credit facility◆ Inventories<Major factors>
Finished goods and merchandise,raw materials and others
Work in process+2,172+2,172
5,000

+443
+189
+254

◆ Property, plant and equipment -357
<Major factors>
Acquisition/construction in progress+1,693
Depreciation-2,321
Exchange rate changes, etc.
+271
◆ Interest-bearing debt
+1,195<Major factors>
Increase in borrowings (ensure liquidity)+1,177◆ Total net assets+4,422<Major factors>
Foreign currency translation adjustment+1,327
Valuation difference on
available-for-sale securities+708
Non-controlling interests+668

24
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1H Fiscal 2021 Consolidated Statement of Income(Information about non-operating profit (expenses) and extraordinary income (losses))(Unit: million yen)

1H Fiscal 2020
(Result)

1H Fiscal 2021
(Result)

YoY change

Net sales

97,54892,671-4,876Gross profit

24,28923,169-1,120

SG&A expenses

20,49920,311-187

Operating profit

3,790

2,857

-932

Non-operating profit(expenses)

+407

+514

+107

Ordinary profit

4,197

3,371

-825

Extraordinary income(losses)

-433

+235

+668

Profit before income taxes

3,764

3,607

-157

Total income taxes

1,223

1,025

-198

Profit

2,541

2,581

+40

453

595

+141

2,087

1,986

-100

Profit attributable to noncontrolling interests
Profit attributable to ownersof parent
Exchange rate (yen)1H Fiscal 2020
(Result)

1H Fiscal 2021
(Result)◆Non-operating profit (expenses) +107
<Major factors>
COVID-19 subsidies+170
Dividend income+12Interest expenses-7
Foreign exchange losses-71◆Extraordinary income (losses) +235
<Major factors>
Gain on sales of non-current assets +369
Loss on retirement of non-current assets-73
Loss on disaster-62

YoY change

USD

107.29106.82

-0.47

CAD

81.25

78.62

-2.63

NZD

71.20

68.32

-2.88

MYR

26.12

25.06

-1.06

25
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1H Fiscal 2021 Consolidated Statement of Cash Flows (Major components)
1H Fiscal 2020
(Result)(Unit: million yen)

1H Fiscal 2021
(Result)

Operating cash flow

+7,435+3,640Investing cash flow

-15,612-1,827

Free cash flow

-8,177+1,813Financing cash flow

+5,490+217

Cash and cash equivalents
at end of period

13,95519,011

Capital expenditures

2,353

1,571

Depreciation

2,353

2,744

10,000+7,435+5,4905,000+3,640

1,813

+217

0
-1,827-5,000-10,000◆Operating cash flow
+3,640<Major factors>
Profit before income taxes+3,607
Depreciation+2,744
Changes in trade receivables/payables-913
Changes in Inventories-269
Income taxes paid
-1,748◆ Investing cash flow
1,827
<Major factors>
Purchase of property, plant andequipment-1,824◆ Financing cash flow
+217
<Major factors>
Increase in long- and short-termborrowings+1,215
Dividends paid
-910

-8,177-15,000-15,612-20,000

1H'20/3期2Q
Fiscal 2020
(Result)（実績）
Operatingcash flow
営業キャッシュフロー

Investingcash flow
投資キャッシュフロー'21/3期2Q
1H
Fiscal 2021
(Result)（実績）
Financing
cash flow
財務キャッシュフローFreecash flow
フリーキャッシュフロー

26
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Toward the future going beyond the functions of yesterdayThis 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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