DAIKEN INSIGHT

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薄い線があるので ● Special Feature
それより少しはみだして
画像を入れてください。 Global Business Strategies in GP25 3rd Stage

Malaysian beach ● FOCUS
— from World Report: Travel Guide by Overseas Representatives —
Announced Medium-Term Management Plan
GP25 3rd Stage to Inside and Outside the Group
and other topics

● WORLD REPORT

Daiken Miri Sdn. Bhd.

● Cafe

My Lunch and Area Report

● Local Activity

Report: Hotel Quarantine at Entry into China

Issued in: November 2022 34No.

Issued by: Daiken Corporation
Edited by: Public Relations Department

Special Global Business Strategies in GP25 3rd Stage
Feature
The medium-term management plan GP25 3rd Stage was started this April.
In this issue, we interviewed Senior Managing Executive Officer Nagata for the positioning and strategies of global business based on the management goals and sales targets by segment and by market as indicated in the plan.

Global markets account for about 30% of sales targets for FY 2026

Sales trends by market and by stage, excluding PWT results Asia Business
First, in the China segment, it is necessary to reorganize the supply structure. We will consider the use of OEM plants
FY 2016 results FY 2022 results FY 2026 targets under our quality control, as well as the supply from DDI. We will regard China as a major sales market and
proactively use the market as a source of supply of LVL, LSB*, and other industrial materials.
159.4 B yen 220.1 B yen 250.0 B yen The door business in Indonesia has steadily increased sales in the U.K. market. The U.K. economy is slowing
temporarily due to high inflation, but the market offers strong potential with stable demand expected in the future. We
Others 1% Global markets 25% Global plan to horizontally expand into the European markets of the Netherlands, France, and Spain. We developed
Global markets 6% markets prospective markets in Taiwan, the Philippines, and other Asian countries, while acquiring repeat orders for projects
Public and commercial 27% by large developers. We are experiencing difficult times in Indonesia due to the slow recovery of the housing real
Public and commercial buildings buildings Domestic new Domestic new estate market. However, we expect an increase in new housing demand with the relocation of the capital from
10% 11% housing market housing market Jakarta to Kalimantan slated for 2024. The present time is simply a preparatory period for the relocation.
38% 32% Through the careful analysis of demand trends in these markets, DDI will rapidly make capital investment and expand
Industrial materials 17% Industrial materials its business scale.
Domestic new 10% Housing reform and
housing market renovation market * LSB: A new material that covers the front and back sides of OSB with fine chips, having both the strength of OSB and the smooth surface of particle boards
48% 16%

Housing reform and Housing reform and
renovation market 18% renovation market
16%
Public and
commercial buildings Industrial materials
15% 11%

Global markets are our growth driver North America Business

¥ Although the sales by PWT are no longer included, our policy remains unchanged to consistently supply sustainable

industrial materials to the North American market. CIPA plans to invest capital for the increased production and sales

Positioning of global of veneers. We will also pursue new businesses for an expected synergistic effect by leveraging the business
markets domains of PWT.

In the GP25 3rd Stage, the sales target for FY 2026, which is the final year of the medium-term plan, is set at 250 billion The growth strategies for each segment are as described above. The mainstay in the growth strategies for the global
yen. The sales target for the global markets is set at 66.5 billion yen (vs. 50.8 billion yen for FY 2022, excluding PWT). markets is to launch a new business during the 3rd Stage. We established a new global project for the examination
PWT definitely drove the expansion of global markets in the 2nd Stage. However, PWT is no longer a consolidated of the new business and invited members from the Overseas Business Division and the R&D Center. Several ideas
subsidiary as of August; therefore, sales are not included. Moreover, Line 1 of DNZ will stop operation at the end of have already been presented, and we will examine them in detail for feasibility. We also established a North
November of this year as part of the restructuring of the MDF business. This will also have an unavoidable impact on American industrial materials business team specializing in the North American market in cooperation with the North
sales. American team from Itochu Corporation. We will pursue the development of new industrial materials business by
Under these circumstances, we must take on new challenges in the 3rd Stage while increasing sales of existing leveraging the knowledge of Itochu in the North America building materials business.
businesses. During the four years of the plan, Daiken’s abilities will be tested in the global markets. The positioning of

the global markets as a growth driver remains unchanged. From the medium-term and long-term perspectives, we will

invest management resources in the expansion of business into new industrial materials and new markets, mainly in the Changing & challenging toward the goals
global markets. We will also develop global human resources and enhance marketing capabilities to achieve this goal.

Systematically implement measures to further expand the global markets Message to global staff

Strategies by business In the midst of rapid market changes, I ask everyone to strengthen their on-site skills. Everyone who
strives each day at each site is asked to always collect information, detect market needs and
I would like to describe the strategies for attaining the management goals by segment. environmental changes ahead of others, and implement proactive measures that incorporate the detected
changes. Another request is to strengthen communication both vertically and horizontally. Maximize
MDF Business manufacturing and sales networks to expand global markets that have infinite potentials through
In the MDF business, we will complete the ongoing structural reform in the 3rd Stage. Subsequently, we would like to information sharing and teamwork.
undertake M&A to further grow the business in the MDF segment. In addition, we will also contribute to a recycling-
oriented society by completely replacing wood materials with afforested wood, promoting sustainability-oriented "Changing & challenging" is a slogan for attaining both quantitative and Managing Executive Officer and General Manager of
material procurement, and developing and marketing products that use wood-based non-petrochemical adhesives in qualitative targets indicated in the 3rd Stage. Let us advance joyfully, North America Business Division
collaboration with the R&D Center among other initiatives. cheerfully, and with positive thinking. Senior Managing Executive Officer for Global
Business and Global New Business

Mr. Takeshi Nagata

Aiming to achieve a sustainable Our sustainability-oriented
society and corporate activities and

attaining GP25 information provision were
recognized
Announced Medium-Term Management Plan GP25 3rd
Stage Inside and Outside the Group Selected for the ESG-oriented FTSE Blossom Japan Sector
Relative Index and the MSCI Japan ESG Select Leaders Index
On July 19, Daiken announced the medium-term management plan GP25 3rd Stage
for 2022 to 2025 to the Group and to the public. In the plan, Daiken declared that it Daiken was selected for the FTSE Blossom Japan Sector Relative Index and the
would attain its long-term vision GP25 by placing sustainability at the core of MSCI Japan ESG Select Leaders Index, which are major ESG-oriented indexes.
management and implementing growth strategies aimed at resolving social issues, (ESG = environment, society, and governance) The FTSE Blossom Japan Sector
thereby helping to realize a sustainable society. The quantitative targets indicated in Relative Index is a new ESG index developed by FTSE Russell, a subsidiary of the
the plan included net sales of 250 billion yen and profit of 10 billion yen. London Stock Exchange Group. The index selects Japanese firms with outstanding
On August 3, the Daiken Group Report 2022 was issued. This report clearly explains ESG processes.
the group's strategies and processes for the attainment of GP25 3rd Stage and other The MSCI Japan ESG Select Leaders Index consists of large and medium/small-
goals. An English version was also issued on September 30 for the global sized firms listed in Japan that are rated as relatively outstanding in terms of ESG
stakeholders that form Daiken's key markets. in each industry based on a proprietary standard by MSCI, a major U.S. financial
service company. Both indexes are part of the rating standard for ESG investments
by the Government Pension Investment Fund (GPIF), which operates and
manages the public pension fund in Japan. The indexes are expected to be used
as a new investment rating standard as investors' demand for ESG investing
expands across the world.

6

Daiken Miri Sdn. Bhd. A part of production staff Production Control Room
Forming line Panorama of MB & SL
Location: Miri, Sarawak, Malaysia Delivery products
Established: 2005
Employees: approx. 200 (Japanese: 2) Short meeting

This manufacturing plant for MDF was acquisitioned from Samling Fiber Board Sdn. Bhd.
(started operation in 1997) in February 2005, and the company name was changed to
DMR in July 2005. The plant is the second MDF factory of the Daiken Group after DSK
(established in 1996). The plant produces general-purpose MDF for furniture and doors,
waterproof MDF for window frames, and other high-quality thin products for Japan. The
plant started to produce MDF for floors in March this year.

Material chips

Products before packing

A part of manufacturing staff

TOP MESSAGE Responding to the changes with forward-

Leaning lessons from the previous year, forecasted plans
ensure production volume and marine transport
for steady supply During the 107th term in this year, we focus on increasing the production ratio for
MDF floor.
First of all, in the previous year we sincerely apologize for the delay in supplying MDF floor has been produced by DSK originally, but we started production at DMR,
Japanese and overseas customers because of the confusion in marine transport. because we anticipated that the increased demand of MDF floor would be continue
Leaning lessons from the previous year, we strive to ensure production volume and for the next few years.
stable marine transport to consistently supply MDF to Japan and other countries. We purse the upgrading of production skills referring to the knowledge of DSK.
Full capacity production have been kept at DMR because of the increased usage of Another important requirement is to develop new suppliers of wood materials. In
MDF not only for general-purpose, but also for new usage in Japan, and the Sarawak, wood materials are continuously in short supply because of the increased
contribution of the sales activities by the Overseas Sales Department and the rainfall resulting from climate change, labor shortages, and the entry of wood-using
Singapore branch as well. company.
It is important to minimize downtime in order to ensure adequate production volume. Anticipating the further deterioration of these circumstances, we will work to procure
We implement thorough the replacement and repairment work before downtime the necessary wood materials by developing suppliers outside Sarawak.
occurs through the periodical check and monitor of production equipment for prevent Whereas, as the change of market conditions, the purposes and the required quality
maintenance. of MDF should be changed.
In order to securely supply MDF to Japan, we utilize breakbulk vessels free from We hope to produce MDF for new usage and for new customers through the sharing
transshipment in addition to container vessels. information by factory and sales.
Whereas, though the increasing variable costs is a major issue caused by the soaring My motto is “Boldly stepping forward without feeling timid”. I still cherish this phrase
material price of glues, wood materials, etc., we conduct forecasts and implement that my strict and kind senior gave me when I was a fresh staff.
countermeasures through the cooperation among factory and sales for steady supply My request to DMR staff is to place the first priority on health first and safety first.
MDF. The severe restrictions on operations and activities under the COVID-19 pandemic
In order to ensure quality, we focus on identifying defects before the delivery from the lasted for nearly two years, and must have exhausted you both mentally and
plant. Of course Safety First is the foundation of all things. The safety & health team physically, However, all of you did excellent job performance.
performs the periodical monitoring on the premises, checks hazardous points, and I profoundly appreciate your efforts. Let us join efforts and endeavor for the future.
provides guidance for improvement to ensure safety & health.

President

Mr. Michinori Yamamoto

Joined the company in 1990, was assigned to the direct demand (Chokuju)
department at hat time and has been engaged in proposal base materials
including plywood, MDF, and unique engineered panel (Dailite)
Since 2019, engaged MDF factory management in Malaysia.

LOCAL STAFF MESSAGE It is important to motivate each individuals

With the best teamwork, Selection / Packing section makes the final quality check of products and labelling based on each grade when packing.
achieve both quality maintenance and cost reduction About 40 contractors per shift perform the operation and I’m in charge of managing and coordinating them.
Because products are conveyed in sequence 24 hours a day at the plant, the staff must perform the selection and
Quality Control / Research & Development Section monitors the quality packing without delay.
of about 500 types of MDF produced at DMR and simulates the costs However, some contractor lose concentration during their shift, because loosing concentration make happened for
for the production of new MDF. human, not robot.
As the decreased supply of Acacia plantation wood, it is necessary to My duty is to implement training and monitoring so that the contractor can complete assigned tasks within the specified
utilize a variety of woods other than Acacia. time.
To maintain high quality utilizing non-Acacia wood, we promote quality Though monitoring is necessary, the most important thing is motivating all of staff themselves.
control and the establishment of production techniques. Even the smallest mental change leads to improvement, so I consistently tell my staff to remain motivated and work
We must also reduce costs as the material price continue to soar. To with a sense of ownership.
reduce costs, it is necessary to increase productivity by accelerating the From now on, I would like to further emphasize 5S (Sort, Set in order, Sweep, Standardize, and sustain practice &
production line. discipline).
On the other hand, excessive acceleration makes it difficult to maintain Although Selection / Packing section tends to generate trash in the operation processing point of view, we will clean
quality. between tasks and achieve a shining and pleasant workplace for the staff.
We pursue the optimal balance that reduces costs while maintaining
the quality demanded by the sales market. Selection/Packing Section
These initiatives cannot be implemented by individual, should be by Executive
everyone member. Ms.Ng Hong Hong
We can overcome any difficult tasks by working together. To achieve
favorable teamwork, I cherish the communication on a daily basis. Factory manager
People of many different ethnicities live in Malaysia with diverse Mr. Tony Hwang
languages, cultures, and mindsets.
Sincere communication with each individual enhances mutual Emphasizing favorable balance between work and private
understanding and established a relationship of trust.
This applies to private life as well. I cherish a communication with I strive to establish a flexible environment where employees can take on leave for their holiday.
others at work and in private life. I believe that taking holidays helps employees maximize performance and attain individual targets.
Therefore, I endeavor to reduce working hours, especially over time, and apply reasonable shifts.
QC/R&D Section I will continue pursuing stable operation placing the first priority on the mental and physical health of employees.
Assistant Section Manager
Mr. Chai Fook Leong

Travel Guide by Overseas 01
Representatives
in Malaysia “Beach and Promenade”

Mr. Toshiya Takahashi（TT） having a panoramic view of

Procurement & Trade Manager the South China Sea

Since joining Daiken in 2007, has You can have a panoramic view of the South China Sea on this
continuously worked in the beach.
Overseas Business Group. It is no exaggeration to say that there is no place more relaxing
I has engaged to the MDF factory than here for me who grew up in the port town Kobe.
about 10 years, and has spent With the sea spreading without any prevention in from of your
70% of my Daiken career in eyes, this is the best place for me to visit when I want to relax
outside of Japan. and recover from fatigue.
Current my working duties is as a Because Sarawak faces westward toward the sea, Sunset time
generalist of MDF factory, after 6pm getting no so hot is the best to visit.
including business trade, sales, Relaxing myself at a restaurant on the beach watching sunset on
quality, and the corresponding of Sunday helps me refresh both mentally and physically before
HQ request & issue. work on the following day.

The promenade is ideal for walking and jogging with the family.
Many children are always excited as well.
I sometimes deepen friendships with local people while sea fishing.
No language is needed for fishing under sunset. Japanese would
be enough!
If you are interested in watching the magnificent South China Sea,
why don’t you visit Sarawak together with your family?

02 “Sports activities”
in great nature.

Sarawak is known in the world for its tropical rain forests!
Participating in sports activities surrounded by thick green
trees would be an experience that cannot be enjoyed in hustle
and bustle of Japan.
It is also ideal for the health management and stress relief in
current COVID-19 situation .
First, “Golf” can be enjoyed just 15 minutes from the town at
the low fees compared.

Next, “Road bikes” are becoming increasingly popular in Sarawak with its wide roads and Last, “Badminton” is a national sport, and many people play badminton. I enjoy badminton
asphalt pavement. with local people, who tease me by calling me “MOMOTA!”.
A hot spot is a road of about 10 kilometers from DMR to entrance of the town.
Because of the favorable conditions (along the sea, two lanes each way, and small traffic), Many people also play futsal and basketball. We can deepen friendships with local people
the road is filled with many road bikers in the evening even on weekdays.
I also enjoy road bikes on my way home. through sports activities.
If you love sports activities, why don’t you enjoy refreshing & sweating yourselves with us

in Sarawak?

“Miri Airport” as a gateway

03 to capital

While enjoying life in the midst of magnificent natural surroundings, you may
sometimes want to have fun in the capital.
At that time, visit Miri airport as the gate way to Kuala Lumpur (KL).
You can afford a round-trip ticket between Miri and KL for only 10,000 yen.
Located about two hours by air, KL is a large city similar to the combined Tokyo,
Osaka, and Nagoya.
You can enjoy whatever you want.

You can buy Japanese merchandise in a shopping mall with Isetan as a tenant and In the Tokyo Street in another shopping As you see, Miri airport is the gateway to an
browse Japanese books at Kinokuniya. mall, you can buy Japanese daily oasis of leisure for representatives overseas.
The annexed Petronas Twin Towers (452m) are definitely an Instagrammable hot spot. necessities and enjoy delicious Do you want to work in a fresh environment
Japanese food in restaurant. during current COVID-19 situation, but keep
My standard course after walking a lifestyle as in Japan ?
around KL is a foot massage. Sarawak is definitely place to visit for you.
You fatigue will disappear without trace
for only 1,000 yen.

Because Malaysia is a multiracial country with the indigenous peoples of Borneo, Chinese, and Malay, we can enjoy delicious foods of the
countries in Asia to Europe.
There are wide variety of dishes seasoned with spicy chili peppers to foods sweetened with sugar.
As international community and exchange continue to develop, Japanese food have become a regular part of Malaysian cuisine and are
loved by many local people.
In this issue, I would like to share some Japanese-style Malaysian dished that are popular with the local people.

Gourmet food from in Malaysia 02 Ayam Goreng & Grilled beef plate
in Momiji Restaurant
01 Kampua Mee
Momiji Restaurant is operated by a Japanese cook. It is one of the most popular restaurants that
serve authentic Japanese-style Malaysian cuisine.

A recommended dish is Ayam goreng plate, The grilled beef plate is exquisite in the
which is similar to chicken cutlets. mouth with its harmony of soft pickled beef
It uses quality local chicken bred in Sarawak and quality onions from Sarawak!
and a secret sauce.

You can enjoy this high-quality dish that you

cannot taste in Japan. Because Malaysia is a Muslim country, “Sushi” and “Unaju” are broadly used as common terms for fish cuisine

loved by many Malaysian.

Malaysia faces the sea just like Japan, and fresh fish can be found in many restaurants that serve sushi with a

03 Sushi & Unaju pleasant texture that melts in the mouth.
Unagi eel used for unaju (grilled eel over rice) is transported alive from Tsukiji in Japan by air.
You can taste Kanto-style authentic unagi without peculiar smell.

Fish dished are definitely a must for meal!

Kampua Mee is a popular breakfast dish in Sarawak. It resembles the
Aburasoba (oiled ramen noodles) that has become popular in Japan.
The simple dish is made with sliced pork, fried garlic, and green onions
over boiled noodles mixed with a special flavored oil from each
restaurant.
The dish is very filling and is served in restaurants across Sarawak in
the tropical climate throughout the year and loved by men and women
of all ages.
If you love Aburasoba, be sure to try Kampua Mee in Sarawak!

Representatives of the Daiken group in JAPAN
share lunch.
Employees in Japan share tourism spots that they recommend to visitors to Japan.
Singapore Branch
What would you like to share?
Ms. Angie See
Experience Osaka in depth at Shinsekai
I’m working in Daiken Corporation Singapore Branch as sales
coordinator. The main duties for my position is to verify and Osaka is a large city representative of western Japan and is famous for Mr. Toshifumi Yanagitani
communicate with suppliers / factories on draft shipping its low-cost gourmet foods, including takoyaki (octopus balls), Section Manager, Sales Section
document, generate commercial invoice and packing list for okonomiyaki (savory pancake), and kushikatsu (deep-fried skewers). Kansai Branch, Smileup Co., Ltd.
client. Shinsekai is a place to experience Osaka in depth. Located at the foot
of Tsutenkaku Tower, this symbolic landmark of Osaka can be enjoyed I mainly handle orders for materials and
Lunch set which consists of egg fried rice, long for its foods as well as the shopping arcades with the retro atmosphere installation using Daiken products.
beans, black fungus and lightly peppered pork chop. and lively towns. It is a popular spot for tourists from overseas. When
you visit Japan, try visiting Shinsekai in Osaka!
I’m introducing my lunch menu to all colleagues in Daiken Corporation.
Today, I’ve chosen this lunch set which consists of egg fried rice, long beans, black
fungus and lightly peppered pork chop.
The variety of this lunch set has a balanced meal for the nutritional value on a healthy
day at work.
Singapore is a great place for all varieties of food selection around the world.

Shopping arcade that maintains retro atmosphere

Tsutenkaku Tower as a symbolic landmark of Osaka

Report: 10-day Hotel Quarantine in China after Return from Japan

Reports of community-based activities from
across the world

To prevent the spread of COVID-19 in China, persons entering from overseas are quarantined at hotels designated by the Chinese government (the costs
are covered by the quarantined persons). Japanese employees who work for Japanese firms in China experience difficulties when temporarily returning to
Japan because of the quarantine requirement. I recently returned temporarily to Japan for the first time in about three years after a long separation from
my family in Japan. I would like to report the ten-day hotel quarantine (from October 9 to 19) that I experienced upon re-entry into China.

The location and rank of the hotel for the quarantine was not known until I arrived at the airport in China. After arrival, I was taken by group bus to a hotel
dedicated to the quarantine. At the hotel where I stayed, there was no changing of water, toilet paper, towels, bed covers, or sheets for quarantined
persons. I had to use the same towel for ten days and purchase daily necessities (water and toilet paper) online. Three meals were served every day and
consisted of completely local Chinese dishes. I ate all the dished for each meal because I was accustomed to the local food. If you are not accustomed to
Chinese dishes, you may need to bring instant ramen or similar foods. The only language understood in the hotel was Chinese. Japanese employees who
were dispatched to China for the first time had difficulty on many occasions, but hotel employees tried to communicate using portable automatic
translators.
I have safely completed quarantine and am living in a house in Shanghai.

Mr. Takayuki Akiyama
President, Daiken (Shanghai)

Corporation

Hotel of quarantine Same towel for ten days Breakfast Lunch Dinner

You may be surprised at the stringent measures after reading my report on hotel quarantine, but these stringent rules kept China
one of the safest countries in the world concerning new COVID-19 infections. I live in Shanghai, which has been locked down for
about two months, and new infections have been controlled to 20 or fewer. To use a subway, bus, or commercial establishment,
we must present a QR code on our cell phone as a negativity certificate issued within 72 hours, among other restrictions that
would be impossible in Japan. Such top-down stringent measures implemented by the government may be the driving force of
rapid growth in China, including the fast dissemination of electronic money, online shopping, and electric vehicles. At Daiken
(Shanghai) Corporation, we will accelerate our activities to acquire new business opportunities, while monitoring market trends.

QR code as a negativity
certificate