Home Renovation Market: Trends in Net Sales

Initiatives for Priority Markets

Home Renovation Market(¥100 million)
400350Industrial materials businessEngineering businessWe have built a system where the entire group can meet a wide variety of needs for renovation through a great range of product

300

287

lineups for renovation as follows: (1) Proposals for spaces in the TDY Collaboration Showroom, (2) cooperation with the250

engineering business that handles construction, and (3) product development and manufacturing from the perspective of the200

construction site. By further enhancing cooperation in the group and promptly responding to the changes of the times and market

150

needs, we will expand in the entire home renovation market.

100+38+24(7)395Building materials business
Other+1284

(21)

+3352
325(0)(0)Integrated system by the group's cooperation

0

2016
ResultsBenchmark

Labor-Saving Type Products that Realize Renovation
in a Short Time

Ceiling material that can be installedon the existing cloth

GP25 2nd Stage

2023
Forecast

2026 (Fiscal year)
Goals

GP25 3rd Stage

Enhancement of Renovation Proposals thatTake Advantage of the Strength of the TDY
Alliance that Marked Its 20th Anniversary

hapia line frame

ProductLineup

Product lineup withfunctions anddesign to totally

coordinate

In February 2022, the TDY alliance formed by the three companies TOTO Ltd.,
Daiken, and YKK AP Inc. (hereinafter referred to as “TDY”) marked its 20th anniversary. We have been cooperating with each other in product planning and development,
as well as the sales support system, since 2002 and following the change in the consumer trend from things (products) to events (ways of living), we have proposed valueof new life in line with the times, such as shifting to proposals with lifestyles as thestarting point, instead of products being the start point. Collaboration showrooms
jointly operated by the three companies have been deployed in eight sites in Japan.

a space

Proposals Corresponding to the Changing Lifestyles

TDY Collaboration Showroom

Strategy for Value Creation

Adhesive flooring

2022
Results

2019
Results

GP25 1st Stage

Daiken Group's Value Creation

50

during the COVID-19 Crisis

Production

Proposal

The build-to-order system for ordering

A one-stop proposal for a space by the TDY

specific sizes that can finely respondalliance that customers can easily

to customer needs

imagine the value

TDY Sapporo

TDY Kanazawa
TDY Tokyo

TDY Hiroshima

TDY Nagoya

Development
Development of products that areImprovement of sound problems

The Group’s Construction System in the Home
Renovation MarketRenovation●Smileup Corporation●ReformQ Co., Ltd.

DAIKEN GROUP REPORT 2022of the construction site, such as savingthat maximally brings out

construction time and work

product value

TDY Osaka
TDY Takamatsu

In fiscal 2023, we further enhanced renovation proposals that take advantageof the TDY cooperation, such as holding TDY’s first online event TDY
Remodeling Expo, as a plan to propose the value of remodeling and will
expand in the home renovation market.

Apartment Renovation●PAC SYSTEMCo., Ltd.

Our project43

easy to renovate from the perspective

Provide a completed space

TDY Fukuoka

Data

Installation of a teleworking space

Installation Workand Construction

Foundation Supporting Value Creation

While working at home has become common and the time spent athome has increased because of the COVID-19 pandemic, the needs ofwanting to realize more convenient and comfortable spaces havebeen growing. In response to such market needs, we have enhanced
the development of products that secure a workspace with thelabor-saving technique and correspond to the improvement ofsound problems, such as sound leakage and reverberation.

360-degree showroom video

TDY Remodeling Expo

DAIKEN GROUP REPORT 202244