The New Medium-Term Management Plan GP25 3rd Stage
Positioning of the New Medium-Term Management Plan

Basic Policy
I. Execution of the Growth Strategy ~Key to the Resolution of Social Issues (CSV)~

Toward the Realization of theLong-Term Vision GP25 in 2025

Contribution to a Recycling-Oriented Society

Fiscal 2023 to fiscal 2026

Satisfaction of User Needs in the New Normal Era

GP25 3rd StageFor user needs that seek for further improved safety, security, health, and comfort in all kinds of spaces, enhance our solution
proposal capabilities that take advantage of having diverse products (industrial materials and building materials), the spatial
evaluation and analytical functions, and the construction function

Establish the image of an all-embracing company
for building materials
Execute the growth strategy based on the pursuit of theresolution of social issues using sustainability as the key axisof management and establish the image of an all-embracing
company for building materials

II. Enhancement of the Management Foundation with Sustainability as the Key Axis
Human Resource Foundation

GP25 2nd Stage

Accelerate growth to become an all-embracing company
for building materials

Fiscal 2017 to fiscal 2019:

GP25 1st Stage

The first step toward an all-embracing company
for building materials

Financial Foundation

Management Goals
I. Execution of the Growth Strategy

To become a company that will keep growing even in the situationof decreased domestic new housing starts(100 million yen/10,000 homes)(¥100 million)

BenchmarkFiscal 2016
Results(¥100 million)

300

3,000

To achieve the Long-Term Vision GP 25Goals
2,500

250

2,500

2,000

1,681
150

GP25 2nd Stage
Fiscal 2022
Results

1,681

1,829

2,233

2,500+266+818

1,579

1,637

1,512

1,835+322+255

Global markets

102192

721665(56)+562

Operating profit

55

57

173

150(23)

+94

3.3%

3.1%

7.8%

6%(1.8pt)+2.7pt394478100+21+60

Operating profit ratio
Profit attributable to owners of parent

II. Enhancement of the Management Foundation

1,500

Financial Indicators
92

100

50

500

55

CapitalROE

10% or more

efficiency

ROIC

8% or moreFinancial

Shareholder equity ratio

40% or moresoundness

Debt equity ratio

Shareholder

Dividend payout ratio

35％

returnDividend on equity ratio

3.5％Medium-Term Management Plan
1st03rd2620222120202019201820

1720162020112006
2001
2096
1991
1986
198101935

2nd(Fiscal year)

Nonfinancial Indicators
Fiscal 2026 Goals

1,00086

GP25 3rd Stage
Increase/Decrease
Fiscal 2026
As compared to 2ndAs compared toGoals
Stage ResultBenchmark

Data

173

GP25 1st Stage
Fiscal 2019
Results

Domestic market

Net sales

2,233200◦ Impartial and highly transparent management that
supports the improvement of corporate value◦ Improvement of the stakeholder engagement byenhancing the dissemination of information andimproving dialogues

Foundation Supporting Value Creation

While a decrease in domestic new housing starts is expected in the future, we will aim at expanding the global market, publicand commercial buildings, and the home renovation market that we position as the priority markets, in addition to the increasein our share in the new home market. By proactively investing our management resources in these priority markets, we willproceed with the reform to become a company that will keep growing even in the situation of decreased domestic new housingstarts.

Net sales (100 million yen) on the right axis
Operating profit (100 million yen) on the left axisDomestic new housing starts (10,000 houses) on the left axis

Governance◦ Aggressive investments for growth◦ Building of the solid financial foundation that supports
growthGrowth trajectory targeted in the Ling-Term Vision GP25Business Foundation◦ Simultaneous pursuit of the reduction of environmental
burden and risk management in the supply chain◦ Restructure firm and flexible business infrastructure◦ Optimization of the business portfolio (Selection and concentration)◦ Ensuring quality, which is the source of provided value◦ Offensive/defensive digital strategy◦ Building of an efficient and optimal logistics system

Strategy for Value Creation◦ Creating the workplace environment and culture where
diverse human resources can be active◦ Human resource development that supports the growthand can respond to changes◦ Establishment of the system and mechanism that admireand support challenges◦ Building of the balanced human resource foundation

Fiscal 2020 to fiscal 2022:

Daiken Group's Value Creation

Accelerate the development of industrial materials using wood resources and waste where recycling is managed and thedeployment to the global market through utilization development

Fiscal 2026 GoalsETotal greenhouse gas emissions in Japan andoverseas*1*2

Total diversity index 3rd StageS

0.5 times or less

Serious quality incident/violation*3＋30pt
060pt

*4

Employee satisfaction
G(10％)*3

Serious compliance violations

0*1 Scope1+2 as compared to fiscal 2022
*2 Our unique indices that indexed diversity-related items, such as the female manager ratio, compared with FY 2022. Seven items concerning the calculation method have been reset as the Diversity Composite Index
3rd Stage in the medium-term management plan GP25 3rd Stage in FY 2023
*3 During the Medium-Term Management Plan period*4 Our own indices in which employees' actual feeling for satisfaction / job satisfaction in the workplace were indexed

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