Business ModelValues

DCM Management Resources

Business Model
Message from the President* Professional DIY advisors certified by the Japan DIY•HC Association

We want to deliver “valuable products” offering “satisfactory quality” at a “reasonable price,” and basedon this concept, we are focused on highly original private brand (PB) products that contribute toenriching customer lives. To this end, we consider raw materials, packaging, and other elements that arepeople- and eco-friendly, and have established an organization and human resources capable ofpromoting sustainable procurement and managing quality and intellectual property throughout thesupply chain.

12DCM Holdings Co., Ltd. Integrated Report 2023

We collaborate with approximately 1,600 business partners in product development, supply, logistics,and other business activities to establish a system enabling us to stably provide products nationwide.
Further, through collaborations with leading business partners in each field, we are able to collect thelatest information on society, markets, products, and other factors, facilitating rapid responses to changes.

Financial Highlights

Ability to develop unique and original productsthat are people- and eco-friendlyA supply chain able to ensure a dependable supplyof products and relevant data

Risk Management and ComplianceIn addition to having the largest number of DIY advisors* in the industry who possess expert DIY
knowledge and skills enabling them to comprehensively support customer DIY activities, we strive tosatisfy customer DIY needs and uncover potential demand by leveraging know-how accumulated overmany years. Based on the characteristics of each region and the results of proprietary data analysis, wealso respond to customer needs and expectations with sales floors that offer product lineups optimized
for each season.

Corporate GovernanceExpertise in meeting DIY-related needs anddatabases derived from local communities

We cooperate with customers and their immediate communities to ascertain customer and community
lifestyles and needs, while making new proposals and providing information with regard to eachproblem faced by customers through a nationwide network of over 670 stores (excluding equity–method
affiliate Keiyo Co., Ltd.). Each store has different role and concept depending on whether they are large,
medium, or small in size, and provide services that make full use of DX. We respond to customer needs
and expectations by enabling them to use these different types of stores as necessary in accordancewith their requirements.

Sustainability

Under the long-term business concept “transforming into an integrated business that comprehensively
makes people’s lives more comfortable,” to realize the Company Philosophy ”Do Create Mystyle,”
approximately 20,000 employees work together to continue creating new value for society, customers,and communities. Our core value lies in human resources and organizational capabilities that enable us
to collaborate as a group of DIY professionals with high aspirations and clear vision.

A nationwide network of over 670 stores that can gather andprovide information in collaboration with their communities

Medium-Term Management Plan

A workforce of about 20,000
highly motivated employees

Established access to financing from diverse
sources for funds needed for investment and M&As
In addition to new business format developments that require capital investment and upfront
investment for business expansion, including new store openings, store renovations, and systemdevelopments through a financial base offering diverse procurement methods, we proactively invest via
M&A in the home improvement retail business and other areas with growth potential.

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