DAIKEN

Medium-Term Management Plan

Basic Policy

Based on firm management foundation, pursue the resolution of social issues through our business, thereby accelerating our growth strategies toward becoming an all-embracing company for building materials.

Ⅰ. Accelerating growth strategies

  • Domestic: Review of the Business (Market) Portfolio
  • Global: Business expansion through proactive investments and entry into new markets

Ⅱ. Enhancement of the Management Foundation

  1. Optimize our financial foundation
  2. Restructure firm and flexible business infrastructure
  3. Practice of ESG Management

Progress against management goals

Ⅰ. Accelerating growth strategies

(Unit: 100 million yen)

Results Forecast Goals
Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2022
Net sales 2,024 1,992 2,040 2,250
Operating profit 83 87 100 120
Operating profit ratio 4.1% 4.4% 4.9% 5.3%
Profit attributable to owners of parent 54 56 60 70

Ⅱ. Enhancement of the Management Foundation

Financial Indicators
Results Forecast Goals
Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2022
Efficiency ROE 9.5% 9.1% 8.6% 10%
ROA 5.5% 5.8% 6.0% 7%
Soundness Shareholder equity ratio 32.7% 39.4% 41.0% 40%
Shareholder return Dividend payout ratio 33.4% 32.4% 34.7% 30% or more

* Forecast on May, 14

Non-financial Indicators
Results Goals
Fiscal 2020 Fiscal 2021 Fiscal 2022
E Total Domestic CO2 Emissions*1 (28%) (35%) (26%)
S Total diversity index*2 +19pt +19pt +20pt
Serious quality accidents and violations 1 1 0
G Degree of penetration of the Group Corporate Philosophy*3 +4pt - +10pt

*1: Compared to fiscal 2014

*2: Our own indices in which the eight diversity items, such as the female manager ratio, were indexed as compared to fiscal 2019

*3: Our own indices in which employees’ understanding, sharing, and practice of the group corporate philosophy were indexed as compared to fiscal 2018

Strategies and Goals by Business Segment

Business segment sales

Market Strategies and Goals

Sales by market

Enhancement of the Management Foundation

To steadily push ahead with the growth strategy, enhance of the management foundation from the three perspectives of financial affairs, business infrastructure, and ESG.

Enhancement of the management foundation

Investments Toward the Enhancement of Growth and Foundation, and Optimize Our Financial Basis

Investments toward the enhancement of growth and foundation

  • Make it a top priority implement growth investments toward the realization of the long-term vision GP25
  • In deciding investments, give consideration to the risk and return as well as the capital cost
  • Aggressively utilize advanced technologies such as AI and IoT, and lead to the improvement and efficiency of productivity
Investments toward the enhancement of growth and foundation

Optimize our financial basis

Efficiency goal
  • ROA: 7%
  • ROE: 10%
  • Improvement of the fixed asset turnover ratio (Reduction in inefficient assets and stringent selection of capital investment)
  • Improvement of the working capital turnover ratio (Inventory optimization that gives consideration to BCP)
Soundness goal
  • Shareholder equity ratio: 40%
  • D ⁄ E ratio: 0.5-fold
  • BS management with optimum balance
  • Procurement of funds for investment that will support growth

Capital Policy ⁄ Shareholder Return

Basic policy of the capital policy

  • By striving for efficient management that places emphasis on ROE, improving shareholder return, and optimizing the balance between financial soundness and strategic investment, improve corporate value.
  • Regarding the shareholder return policy, the dividend payout ratio at 30% or more shall be the goal and strive to maintain stable dividend while aiming at redistribution of profits linked with performance.
  • Acquisition of own shares will be comprehensively judged in consideration of the capital situation, market environment, etc.
    Shareholders’ equity will be effectively used for the improvement and enhancement of the production, sales, and construction work systems, deployment of new businesses and global business, etc., in order for the medium- and long-term growth and the establishment of the solid management foundation.
Cash dividents per share (¥) and Dividend payout ratio(%)