Process of Creating Value
The Daiken Group aims for the realization of a sustainable society and the creation of economic and social value bycontributing to solving social issues, such as the Sustainable Development Goals (SDGs), through business activities thatmake use of our unique strengths.

Business models andstrengths

Social issues and needs(External environment and trends)

P.23-24

Strength ❹Integrated system
Risks

Engaging in the development,
installation, and construction ofindustrial and building materials

Opportunities

Strength ❸Customer baseMateriality
P.25-26

Financial foundation

Create a new standard withfunctional products

Shareholders’ equity: 74 billion yen
Interest-bearing debts: 29.7 billion yen

Production system
3.9 billion yen
19 bases

Research anddevelopment
R&D center
R&D expenses:

1.7 billion yen

Public andcommercial buildings

Strength ❷Product deployment
capabilities

Source ofvalue creation

Capital investments:
Production base:Global markets

Industrial materials
business

Relationships of trust withprofessional customers

Six capitals

Input

Strength ❶Research anddevelopment
capabilities

Businesses and market
strategies that connect ourstrengths to value creation

Building materials
businessIndustrial materials

Home renovation
marketEngineeringbusiness

Domestic newhome market

Strategies by business segment
and market
P.39-40

Pursue the possibilities ofsustainable industrial materials
and a safe, secure, healthy, andcomfortable space

Human resource
Consolidated number of employees:
3,564

Customer baseA wide variety of customers ranging
from the housing and constructionindustries to various manufacturers

Humanresource
strategies
Businessfoundation

Financialstrategies

Governance

Natural resources
Usage of wood materials (1,000 t)
Domestic: 214
Global: 1,391
Total energy input (1,000 GJ)
Domestic: 2,559 Global: 4,633
Water resource input (1,000 m3)
Domestic: 1,838 Global: 927

Sustainability Basic Policy/Group Conduct Guidelines

Input management resources*Fiscal 2023

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DAIKEN GROUP REPORT 2023

DAIKEN Global Environmental
Vision 2050

Long-Term Vision
GP25

P.4

P.33-34

GP25 3rd Stage (Fiscal 2023-2026)
P.37-38

OutputP.3

Daiken Group’s Value Creation

Medium-Term Management Plan

Goal
Achieve the vision of theGroup Corporate
Philosophy

Materiality• Realization of a Resource-Recycling and Recycle-Oriented Society• User Needs in the New Normal Era• Diverse Human Resource Foundation by Improving Comfort inWorking and Job Satisfaction
P.25-26

OutcomeOffering of products that use strengths

Creation of economic and social value

P.15-20

Industrial materials business
Make full use of wood and mineral resourcesand offer a variety of functional materials

Veneer/LVL

Insulation board

Tatami facing

DAILITEDAILOTONE

P.27-32

01 utilizing wood resources

Contribution to carbon neutrality by

02 Promotion the use of domestic timber
03 Effective utilization of unused resources

Strategy for Value Creation

MDF

Creating Shared Value (CSV) by Daiken Businesses

04 comfortable space

Creating a safe, secure, healthy, andBuilding materials business05 products and techniques

Development of labor saving type

Offer high-performance building materials that form
spaces focusing on safety, peace of mind, health,and comfort

Fiscal 2023

Flooring

Acoustic products

DoorCabinet

StairsConstruction materials

Engineering business
Interior construction for public spaces, commercial

Net sales:
228.8 billion yen
Operating profit:
9.8 billion yen
EBITDA*:
16.8 billion yen
Profit attributable to owners of parent:
10.3 billion yen
ROE:
12.9%
Total dividend:
2.8 billion yenDividend payout ratio:
27.8%*Operating profit + Depreciation + Depreciation ofgoodwill

Datafacilities, and houses to create spaces that optimize

Financial outcomesthe performance of industrial and building materials

Nonfinancial outcomesInterior projects for buildings and offices
Home renovation
Apartment renovation

Amount of carbon fixation by the wood industrial
materials business:
739,000 t-CO2/year
Utilization of domestic timber for flooring
substrates:
45%
Total greenhouse gas emissions in Japan andoverseas (Compared to fiscal 2022):(4.0%)DAIKEN GROUP REPORT 2023

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