The New Medium-Term Management Plan GP25 3rd Stage

Strategies by Business Segment and Market
Strategies by Business and Sales Goals
2,500(¥100 million)
2,500

Compared with fiscal 2022 results

85

2,233

335

Engineering business

202

2,000

＋13.2 billion yen

2,233（＋65％）

2,000

（9％）

1,040

919

Building materials
business

（42％）

（41％）

＋12 billion yen

665（＋13％）

Industrial materials
business

224

272

1,040

（＋4％）

[+25 billion yen]*

（42％）

（45％）

325

（11％）

Domestic
market1,512

Domesticmarket

1,835

395

[＋32％]（73％）

Home renovation
market808756

（32％）

（34％）

*If excluding the decrease in sales by 21.2 billion yen associated with the change in
PWT in the U.S., which is our special subsidiary02022
Results

2026
Goals

GP25 2nd Stage

GP25 3rd Stage0(Fiscal year)

2026
Goals

2022
Results

GP25 2nd Stage

Domestic new homemarketStrategies by Market

acquisition of alternative demand from the perspective of sustainability■ Enhancement of the appeal of and sales expansion of the products for publicand commercial buildings, such as noncombustible products and materials fortatami mats

Building materials business◦Expansion of the functional building materials that meet the user needs inthe new normal era and enhancement of the proposal capabilities◦Improvement of profitability by improving productivity using digitaltechnology and operational efficiency

through the performance measurement and evaluation of spaces, such as thesound environment and thermal environment​

Engineering business◦Pursuit of the synergy between the products in the industrial materials andbuilding materials businesses and the construction function◦Expansion of the construction areas that meet the spatial needs in the new normal era
Value Creation■ To provide new spatial value by improving the sound and thermal environmentsthat take advantage of the group’s product appeal, we will proceed with theexpansion of the construction areas and the improvement of our technologicalcapabilities and enhance our integrated order-taking system for industrial
materials and construction■ Support for the development of construction techniques and product development
incorporating the short construction period and saving construction time and workby using our construction network（＋21％）+32.2 billion
yen（＋21％）+5.1 billion yen（+7％）

Accelerate the further exploration of the global markets through penetration of industrial materialand building material products that use sustainable resources table supply of sustainable industrial materials for the North American market and investment of management resources to deploy business in new markets■S ully use and expand our production and sales channel in the Asia/Oceania region and enhance the industrial material and building material supply■F

system for the areas of demand, such as North America, China, and Europe

 ccelerate the shift to managed and sustainable wood resources (certified materials and plantation timber) in procuring raw wood materials and focus■Aon the development and penetration of the industrial materials that use such resourcesmarkets and targets​ ptimization of the business portfolio●Othrough ROIC by business ursuit of sustainability of raw materials●P eduction of greenhouse gas emissions in●Rthe supply chain
 eduction and recycling of waste in●Rproduction and sales, and after sales(Circular economy)

acceleration by expanding and improving functional building materials that meet user
Public and commercial buildings Growthneeds in the new normal era and by enhancing proposal capabilities
 xpansion and improvement of the functional building materials that create safe, secure, healthy, and comfortable spaces in order to respond to the user
■Eneeds associated with the penetration of new lifestyles, purchasing styles, and work styles

 ocus on solution proposals that use functional building materials through the performance measurement and evaluation of spaces■F arketing activities by co-creation activities and agile development■M■ I mprovement of the integrated order-taking system for industrial materials and construction toward the provision of new spatial value by improving thesound environment and thermal environment

 fficiency of sales activities and enhancement of proposal capabilities that use the digital methods■E estructuring and optimization of the●Rproduction bases centered on logistics​

Industrial materials

 fficiency of business activities that use●Edigital technology● Improvement of order-taking andconstruction contract volume per personthat uses human resource development
and digital technology​

Exploration of new markets and new areas by developing new industrial materials with theadvantages of sustainability and environmental burden reduction hallenge a new market and a new area, such as agriculture, by making knowledge on wood materials into a strength■C ccelerate co-creation activities with diverse companies not only in R&D but also in all kinds of business activities■A

Domestic

secure, healthy, and comfortable spaces for everyone”+6.9 billion yen

Domesticmarket

 uman resource development to accelerate the expansion into the global markets and enhancement of the marketing capabilities to determine new■H■ Promotion of the development of functional building materials that create “Safe,■Enhancement of the solution proposals that use functional building materials（＋36％）

DataValue Creation

Global markets
GlobalValue Creation■ Utilization development that will expand the possibility of industrial materials and ptimization of the production system by●Oenhancing cooperation in the group​+7.2 billion yen

Foundation Supporting Value Creation

Strategies by Business Segment
Transformation of Business Activities（＋61％）

GP25 3rd Stage

GP25 3rd Stage (FY 2023–2026)◦Contribute to the resolution of social issues in the global markets throughthe development of industrial materials that use sustainable resources andthe sales expansion◦Execution of the business structural reform toward the profitability improvement+13.8 billion yen(Fiscal year)

GP25 3rd Stage (FY 2023–2026)
Industrial materials business37

Industrial materials

（16％）

（68％）
500

Public andCommercial Buildings

Strategy for Value Creation

1,001

500

（9％）
（15％）

＋3.8 billion yen*If excluding the decrease in sales by 21.2 billion yen associated with the change in
PWT in the U.S., which is our special subsidiary

（15％）
（10％）

1,000（-8％）[+15.6 billion yen]*[＋31％]

199

1,000-5.6 billion yen

721363

1,500

Global markets

（27％）
（32％）

1,500

Compared with fiscal 2022 results

2,500(¥100 million)
2,500

Daiken Group's Value Creation

（13％）

110

Strategies by Market and Sales Goals

 n increase in the share of housing use and expansion of industrial use by using industrial materials using sustainable resources as a weapon■A xpansion of the use that will solve customers’ issues by taking advantage of diverse industrial materials using sustainable resources as raw materials,■E

products, and functions​Home renovation market

Expand and improve functional building materials that meet the user needs in the new normal
era and establish and penetrate the construction technique models that meet demand for thecondominium renovation construction, such as the short construction period, saving construction
time and work, and waste reduction■ Improvement of the functional building materials that create safe, secure, healthy, and comfortable spaces to meet the needs of clients associated withthe penetration of new lifestyles■ Expand the products specifically for the market by developing construction techniques and products for condominium renovations and enhancing proposals■ Enhancement of the supply system, including logistics, in the renovation market and enhancement of cooperation with TDY and prioritized distribution■ Supply of the purchased and reselling properties in response to the expansion of demand for housing in the Tokyo metropolitan area and expansion andimprovement of the renovation construction system​

Domestic new home market

Development of differentiated products that promptly meet user needs and an increase in the shareby enhancing proposals in order to minimize the impact of shrinking of the market Improvement ofthe efficient proposals and order-taking system that effectively uses digital technology

 evelopment of key items that meet the new clients’ needs in the new normal era and enhancement of proposals■D fficiency of the sales and order-taking system by introducing digital technology and outsourcing■E ssured order taking and supply by restructuring the sales structure according to demand​■A38