Medium-Term Management Plan GP25 2nd Stage

Results of the Strategies by Business Segment and Market
Strategies by Business Segment and Sales Result

Strategies by Market and Sales Results

Sales by Business(¥100 million)
2,500

Other

Engineering business

Building materials business

Sales by Market(¥100 million)
2,500

Industrial materials business

2,250

2,233

1,500

1,681

1,688

1,705

115
139（8％）

115
136（8％）

119

1,829

92

180

164（10％）

1,000

862

（51％）

868

（52％）

（51％）

（13％）

202

282

886

（41％）

1,500

950（42％）

（45％）

2,024

2,000（10％）

919（47％）894（9％）

205

（10％）

949

872

92

217（11％）

135

1,992

118

1,000

1,688

1,705

102（6％）
165

109（7％）
168

122（7％）
198
（12％）

（12％）

357

343

334

355（10％）287（17％）

0553

618

（38％）

2020
Results

（34％）

（33％）

（32％）

（34％）

2016
Results

2017
Results

2018
Results

2019
Results

Benchmark806（41％）

2021
Results

GP25 1st Stage

288

289（17％）

（17％）

（19％）

284

（16％）

284

317

（16％）

900

500（40％）2022
Results

2022
Goals

(Fiscal year)

0

GP25 2nd Stage

756

312（16％）

 xpansion of business by purchasing two North American●Ecompanies that are engaged in LVL and veneer● I mprovement of profitability through enhanced cooperation withthe two North American companies and by introducing productswith high added value
 xpansion of the non-combustible product lineup of DAILITE●Ebase materials▲ Continuation and early completion of business structural reforms
in the four group MDF plants

750

767

Expand the construction domains, areas, and ordersources by M&A and cooperating with other companies■ Expand the construction company’s business targeting the355

199

（16％）

（9％）

1,730

325 Domestic 376（15％） market

1,512

775786（42％）

（39％）

（37％）

（34％）

2016
Results

2017
Results

2018
Results

2019
Results

2020
Results

2021
Results

2022
Results

GP25 1st Stage（77％）（17％）

 ales expansion of flooring centering on high design products●S● I ntroduction of new products that correspond to changing

lifestyles during the COVID-19 crisis▲ Enhancement of the BCP based on the delivery delays in thefinal fiscal year
▲ Sluggish orders received in the solid wood flooring business anddelayed onset of synergy by purchasing companies

 xpansion of the sale of and increased profitability of apartment●Erenovation business in the Tokyo metropolitan area
 xpansion of orders by enhancing cooperation with the ITOCHU●ECorporation Group▲ Expansion of synergy between the sale of the industrial andbuilding materials business products and the construction function▲ Expansion and optimization of the construction domains (M&As

not executed as planned due to the COVID-19 crisis)P.39-40

Accelerate global expansion with a focus on the industrialmaterials business through aggressive investments■ I nvest in the North American wood industrial materials business(LVL/veneer) and expand into the North American market
 ontinuously expand wood materials with a focus on MDF■C ut the Chinese and Indonesian building materials businesses■Pon a path toward stable growth and shift to the growth strategy

P.41-42

Industrial materials

that are our unique technology

2022
Goals

(Fiscal year)

Three-Year Summary (● Achievements and ▲ Issues)● Expansion centering on LVL in the American housing market on

the background of a strong demand● Expansion of the MDF sales channels for overseas countries● An increase in door sales in the Indonesian plant due to thegrowth in demand from the UK▲E nhancement of the development of global human resources

corresponding to the expansion of business operations● An increase in the number of adoption of doors for elderly

facilities, medical facilities, and offices● Enhancement of the proposals with functional products, such as non-combustible, antivirus, and improvement of the sound environment▲R esponse to the decrease in demand in commercial and accommodation

facilities associated with the rapid decrease in the number of overseas
visitors to Japan and increased number of people staying at home▲S
 hift of the sales structure from the housing market andacceleration of the introduction of new products● New deployment to the civil engineering, agriculture, andCover the decrease in these for housing with application
development and expand industrial materials business ocus on application development for the new markets and fields■F romote the development of and search the applications of new■Pmaterials and R&D productsHome renovation market

675

（30％）

GP25 2nd Stage

Expand investments, including M&A, and accelerate growth xpand the product lineup (The medical field will be the new focused target)■E■ I mprove infrastructure for the expansion of the markets, such as
logistics, correspondence of drawing, and the sales structure xpand the product and sales networks, including cooperation■Ewith other companies and M&A

wooden boards associated with the COVID-19 crisis and soaring
construction costs

756

730

（44％）

Public and commercial buildings▲ Postponement of the judgment of commercialization of newand external resources

Engineering business（10％）

P.43-44

Expand in the renovation market from a perspective ofdevelopment of functional products and methods
 xpand the renovated properties and renovation work in the■ETokyo metropolitan area ocus on the expansion of the products for renovation, such as■Fconstruction savings and waste savings

Domestic new home market
Restructure the sales structure in response to changes in
the market and customer needs, and increase our share ontinuously enhance the products and proposals from the perspective■Cof functionality, such as soundproofing and construction work saving
 nhance the collaborative system with key distribution companies■E
as well as a system to make proposal to key customershorticulture markets utilizing woody fibers● Establishment of the technology for new wooden boards toward

the substitution for lauan woodDatachosen■ Expand the product/sales networks by actively utilizing M&A（14％）

Foundation Supporting Value Creation■ Further expand differentiated products that can keep getting

520312（45％）

Global markets

Three-Year Summary (● Achievements and ▲ Issues)

Domestic

By taking advantage of the industrial materials business,
as well as functional and construction saving-type
building materials, increase our share in the housing
market and expand in the public and commercial
building fields

224

（45％）

BenchmarkGlobalBuilding materials business

237

（12％）

Strategies by Market

business (LVL/veneer) and expand into the North Americanmarket
 ursue optimization of the production system■P ccelerate application development centering on the■Aresolution of social issues●S tart the non-combustible business for wood materials●C onsider commercialization of wood material use for theagricultural and gardening markets●C onsider commercialization of new wood materials

（32％）

246

Strategies by Business Segment■ I nvest in the North American wood industrial materials

（23％）

462

（12％）

GP25 2nd Stage (FY 2020-2022)

Globally expand the markets and by taking advantage
of sustainability and functionality, expand applications,and maximize the fixed asset efficiency

31（20％）

262（13％）
（14％）

721

（23％）

GP25 2nd Stage (FY 2020-2022)

Industrial materials businesspriority markets (public and commercial building,remodeling, and renovation)

（20％）

211

2,250

1,992

365

（18％）

2,233

（68％）

1,001

（45％）

（10％）

（11％）

Home renovation market

Strategy for Value Creation

563

564765

1,829192

1,681（21％）

（49％）

500

Industrial materials

Daiken Group's Value Creation

2,024

2,000

110

Global markets
Public and commercial buildings
Domestic new home market▲R eview of the supply system based on the delivery delays▲A cceleration of the new application development in preparation

for the decrease in demand in the future● Development of labor-saving type products and enhancement ofproposals for specialized remodeling companies● Expansion of the apartment renovation and renovation work in

the Tokyo metropolitan area

▲ I ntroduction of products that utilize the know-how on renovation

work▲O ptimization of the remodeling work system● Expansion of sales to large production builders targeting first-timehome buyers that are increasing their presence in the market● Promotion to increase the use of domestically produced

materials for flooring substrates▲ A decrease in profitability associated with the change in themarket structure▲ Pursuit of the operational productivity improvement by promoting DX32