Top Message

Japanese

To Shareholders

In 2015, the year when the group marked its 70th anniversary, we formulated the long-term vision GP25 (Grow/Glow Plan 25), for the next 10 years toward FY 2026, and have developed business activities based on the company vision in order to grow into an all-embracing company for building materials. In FY 2022, the final fiscal year of our medium-term management plan, GP25 2nd Stage (FY 2020-2022), which would be the second step in achieving the long-term vision, we promoted a variety of different measures based on the basic policy of accelerating growth strategies and enhancement of the management foundation.

During the three years of the GP25 2nd Stage, the wood materials business in North America, which was brought into the group through the merger and acquisition process as part of the expansion into global markets, is now positioned as a growth driver and substantially contributed to overall performance. The group achieved operating income of 17.3 billion yen and net income of 7.8 billion yen, which exceeded the profit targets of 12 billion yen and 7 billion yen, respectively. As a result, the sales constituent ratio in global markets increased to 32% from 6% in FY 2016 when the long-term vision was originally formulated. We also made steady progress in reviewing the market portfolio, which emphasized too highly the domestic new home market.

The medium-term management plan GP25 3rd Stage (FY 2023-2026), that started in FY 2023, enters the final step toward realization of the long-term vision and will take four years to wrap up. As uncertainties grow because of the COVID-19 pandemic, geopolitical risks, and the surge in resource prices, we strive to establish Daiken as an all-embracing company for building materials by focusing more than ever on sustainability for management with two basic policies: the execution of growth strategies in terms of CSV where we will find solutions to social issues through technological capabilities, and the strengthening of the management base based on sustainability where we will review and strengthen every business activity from the perspective of sustainability.

We established a strategic investment limit of 40 billion yen to aggressively invest in the implementation of growth strategies and in the enhancement of the management foundation. In the global markets, which we continue to position as the growth driver, we will invest to strengthen the industrial materials business in North America and Southeast Asia, including consideration of M&As. In the domestic market, we will steadily implement investments to expand business in the public and commercial building fields, develop new industrial materials, and respond to DX. Thus, in FY 2026 our aim is to achieve the management targets of 250 billion yen in sales and 10 billion yen in net income.

In addition, to further reinforce returns to shareholders, we will raise the payout ratio from the current 30% to 35% as our shareholder return policy for four years with the medium-term management plan GP25 3rd Stage. We have also set a new dividend on equity ratio of 3.5% to clarify the criteria for stable dividends, which have been strongly requested by investors in particular.

We will continue to pursue the sustainable improvement of corporate value by continuously contributing to a sustainable society through business and by integrating the technology, ideas, and passion of our group. We sincerely ask for the continued support of stockholders and investors.