Slide 1: Presentation Material: Announcement of FY2007 Interim Results
Presentation Material: Announcement of FY2007 Interim Results November 21, 2007 Cleanup Corporation Tokyo Stock Exchange, 1st Section, Code 7955 0
Slide 2: I. Interim Results Outline
CiegumMbD I. Interim Results Outline
Slide 3: Outline of Consolidated Results for Interim Period Ended September 2007
Ⅰ． Interim Results Outline 1. Outline of Consolidated Results for Interim Period Ended September 2007 (Unit: millions of yen) 2007/9 2006/9 Change From Prev. Period 2007/9 2007/9 Compared To Revised Plan (Actual Results) (Actual Results) (Initial Plan) (Revised Plan) Net Sales 54,759 58,474 △6.4％ 59
Slide 4: Consolidated Profits: Net Sales, Gross Profit
Ⅰ． Interim Results Outline 2. Consolidated Profits ① Net Sales, Gross Profit 【Increased/Decreased Values (Rates)】 【Main Increase/Decrease Factors】 (Billions of yen) 58.47 ● System Kitchens △3,530 million yen SS △1,790 million yen 54.75 Net Sales CLEANLADY △850 million yen ● System Bathrooms ＋140 mil
Slide 5: Consolidated Profits: SGA Expenses, Operating Income
Ⅰ． Interim Results Outline 2. Consolidated Profits ② SGA Expenses, Operating Income (Billions of yen) 【Increased/Decreased Values (Rates)】 20.72 18.95 Gross Profit 【 Main Increase/Decrease Factors 】 ● Sales Expenses (New product promotion) △1.77 billion yen ＋380 million yen ● Distribution Expenses △
Slide 6: Sales Composition By Segment (Consolidated)
Ⅰ．中間決算の概要 3. Sales Composition ① By Segment (Consolidated) 122,781 (Millions of yen) 118,200 【2007/9】 120,000 4,394 114,200 Other 3.6％ 4,591 Other 4.1％ 4,485 3.9％ Bathtubs & Washstands 20,288 3.9％ 16.5％ Bathtubs & 100,000 Kitchin Equipment 20,267 20,709 Washstands 19.9％ 17.5％ 17.8％ Kitchen Equipment
Slide 7: Sales Composition By Sales Route (Non-Consolidated)
Ⅰ． Interim Results Outline 3. Sales Composition ② By Sales Route (Non-Consolidated) Direct-Sales (Condominium owners) 【Full-Term Base】 Housing Constructors 9.0％ 10.2％ 11.6％ 11.3％ General Routes 16.2％ (Construction Contractors - 16.9％ 18.1％ 17.7％ Home Renovation) 【First-Half Base】 ～ 4.9％ 6.3％ 72.9％ 7
Slide 8: Consolidated Balance Sheet Summary – 1/2
Ⅰ． Interim Results Outline 4. Consolidated Balance Sheet Summary – 1/2 (Billions of yen) 【Increased/Decreased Values】 【 Main Increase/Decrease Factors 】 【Assets】 88.51 ● Current Assets △3,250 million yen 86.95 84.27 Total Assets ● Fixed Assets ＋570 million yen △2.67 billion yen ● Cash and Deposits △
Slide 9: Consolidated Balance Sheet Summary – 2/2
Ⅰ． Interim Results Outline 4. Consolidated Balance Sheet Summary – 2/2 (Billions of yen) 【 Increased/Decreased Values 】 【 Main Increase/Decrease Factors 】 【Liabilities･Minority Interests・Assets】 88.51 86.95 ● Accounts Payable △330 million yen 84.27 ● Short-Term Debt △1,500 million yen ● Income Taxes
Slide 10: Consolidated Cash Flow Statement Summary
Ⅰ． Interim Results Outline 5. Consolidated Cash Flow Statement Summary (Billions of yen) Compared to Year-End Balance 16.63 （2007/3） △0.21 ＋0.07 △0.99 ＋1.10 2006/9 2007/9 9
Slide 11: Capital Investments (Consolidated)
Ⅰ． Interim Results Outline 6．Capital Investments (Consolidated) (Billions of yen) 6.00 【FY2007 Major Capital Investment Details】 R&D Costs First-Half Results 5.20 Capital Investment ① Dies for New Products 680 million yen Deprecation Costs ② Equipment for New Products 430 million yen 4.00 ③ Showroom
Slide 12: Outline of Non-Consolidated Results For Interim Period Ended September 2007
Ⅰ． Interim Results Outline 7. Outline of Non-Consolidated Results For Interim Period Ended September 2007 (Unit: millions of yen) 2007/9 2006/9 Change From Prev. Period 2007/9 2007/9 Compared To Revised Plan (Actual Results) (Actual Results) (Initial Plan) (Revised Plan) Net Sales 53,149 57,017 △6.8
Slide 13: Non-Consolidated Sales Composition By Segment
Ⅰ． Interim Results Outline 8. Non-Consolidated Sales Composition By Segment (Millions of yen) 119,582 【2007/9】 120,000 115,000 Industrial Other 9,292 7.8％ 111,000 Kitchen Other 8.1％ Equipment 1.5％ 6.3％ Industrial Kitchen Equipment 1,834 1.5％ 9,321 9,003 8.1％ 5,093 1,819 1.6％ 4.3％ Washstands 1,810 1.
Slide 14: Sales Results and Market Share - Complete System Kitchen
Ⅰ． Interim Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 1/4 Complete System Kitchen Sales Results Demand Trends and Market Share (Billions of (Thousands (Thousands yen) of sets) of sets) （％） 35.3 ◆ 87 Current Interim Period (Planned) (Current Interim Period) 13
Slide 15: Sales Results and Market Share - Sectional System Kitchen
Ⅰ． Interim Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 2/4 Sectional System Kitchen Sales Results Demand Trends and Market Share (Billions of (Thousands (Thousands yen) of sets) of sets) （％） 2.8 ◆ 33 Current Interim Period (Planned) (Current Interim Period) 14
Slide 16: Sales Results and Market Share - Modular System Bathroom
Ⅰ． Interim Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 3/4 Modular System Bathroom Sales Results Demand Trends and Market Share (Billions of (Thousands (Thousands yen) of sets) of sets) （％） 8.2 ◆ 17 Current Interim Period (Planned) (Current Interim Period) Note: To
Slide 17: Sales Results and Market Share - Washstands/Vanities
Ⅰ． Interim Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 4/4 Washstands/Vanities Demand Trends and Market Share (Billions of (Thousands (Thousands yen) of sets) of sets) （％） 2.4 ◆ 43 Current Interim Period (Planned) (Current Interim Period) 16
Slide 18: Showrooms And Visitor Numbers
Ⅰ． Interim Results Outline 10. Showrooms And Visitor Numbers (Locations) (Thousands of groups) Prev. Interim Period 225 thousand groups Current Interim Period 233 thousand groups (+3.5%) Current Interim Period 109 locations (Planned) 17
Slide 19: Forecast Consolidated Results For The Period Ending March 2008
Ⅰ． Interim Results Outline 11. Forecast Consolidated Results For The Period Ending March 2008 (Unit: millions of yen) 2007/3 2008/3 2008/3 Change From Compared (Actual Results) (Initial Plan) (Term-End Forecast) Prev. Period To Plan △7.0～ △9.7～ Net Sales 122,781 126,500 114,200～118,200 △3.7％ △6.6％ O
Slide 20: Forecast Non-Consolidated Results For The Period Ending March 2008
Ⅰ． Interim Results Outline 12. Forecast Non-Consolidated Results For The Period Ending March 2008 (Unit: millions of yen) 2007/3 2008/3 2008/3 Change From Compared (Actual Results) (Initial Plan) (Term-End Forecast) Prev. Period To Plan △7.2～ △9.8～ Net Sales 119,582 123,000 111,000～115,000 △3.8％ △6.
Slide 21: II. Medium-Term Strategy Progress
Ⅱ．Medium-Term Strategy Progress 20
Slide 22: Basic Business Policy & Strategy
Ⅱ．Medium-Term Strategy Progress 1. Basic Business Policy & Strategy Operating Growing from a simple home equipment manufacturer Goal to a “creator of home living space services” Important Concentrating on sales of value-added products, increasing Target our brand strength as an exclusive manufacture
Slide 23: Market Conditions
Ⅱ．Medium-Term Strategy Progress 2. Market Conditions June 20, 2007 Revised Building Standards Law Enforcement （Thousands of Homes） （％） 2006 2007 ＊Source: MLIT 【Revised Building Standards Law】 ●Decreased number of applications and increasingly long review period Stringent construction verification (L
Slide 24: Important Future Policies
Ⅱ．Medium-Term Strategy Progress 3. Important Future Policies Aiming to be the No. 1 kitchen company in terms of both quality and scale. 【Keywords】 Lifestyle Satisfaction Proposals Product Strategy Developing strategic Showroom Strategy marketing based on this concept. Channel Strategy Customer Servi
Slide 25: Product Strategy-1/3
Ⅱ．Medium-Term Strategy Progress 4. Product Strategy-1/3 New Brand/Concept for Kitchen Creation Happiness That Fosters Taste ‘Creating Food’ ‘Eating Deliciously’ ‘Families Coming Together’ Reconsidering the past roles of the kitchen… Complete Redesign of “S. S.” and “Clean Lady” (Both on sale Septemb
Slide 26: Product Strategy-2/3 S. S.
Ⅱ．Medium-Term Strategy Progress 4. Product Strategy-2/3 S. S. Theme: ‘Happiness Creating Food’ 【Target User】 ●Very particular about food and even more particular about their interests. ●Baby boomers who have finished raising children, double income baby boomers, DINKS Slow Enjoyment ●Work table ●Cor
Slide 27: Product Strategy-3/3 CLEANLADY
Ⅱ．Medium-Term Strategy Progress 4. Product Strategy-3/3 CLEANLADY Theme: ‘Smiling family faces, growing every day’ 【Target User】 ●Places importance on the family, the value of life and family communication. ●Primarily parents in their 30s and their children Enjoying conversation… ●Swan sink ●Relaxat
Slide 28: Showroom Strategy
Ⅱ．Medium-Term Strategy Progress 5. Showroom Strategy Creating areas for users to experience new, grand concepts 【Heretofore】 ‘Viewing products’ was the most important 【Shinjuku Showroom】 ● ‘Ｓ. Ｓ.’ ‘CLEANLADY’ New product displays →New space through user segmentation ● Creating a new ‘Party Space’ →U
Slide 29: Channel Strategy: Water Section Workshop Outline
Ⅱ．Medium-Term Strategy Progress 6. Channel Strategy ① ‘Water Section Workshop’ Outline ●Bringing in local, popular contractors through a “membership registration system”. (Registrations begin Nov. 2006) ●Business development of the “Water Section Workshop” brand. Strength ① Strength ② Successfully b
Slide 30: Channel Strategy: Water Section Workshop Progress
Ⅱ．Medium-Term Strategy Progress 6. Channel Strategy ② ‘Water Section Workshop’ Progress ■Changes in the No. of Registered Companies No. of Registered (Companies) ‘Water Section Workshop Member Stores’ Current term’s Goal of 1,200 (As of August 2007) companies is achievable Approx. 1,100 Stores No. o
Slide 31: Channel Strategy: Cleanup-Design Co., Ltd.
Ⅱ．Medium-Term Strategy Progress 6. Channel Strategy ③ ‘Cleanup-Design Co., Ltd.’ (Established November 2006) （Cleanup Design Co., Ltd.） ●Kitchen/Bathroom Renovations ●Capable of accepting all renovation requests, including ●“Sick House” Renovations kitchen/bathroom-related. ●Elderly Renovation ●Back
Slide 32: Customer Service Strategy: Smile 20 Year Support Program
Ⅱ．Medium-Term Strategy Progress 7. Customer Service Strategy ① “Smile 20” 20 Year Support Program Starting “Smile 20” (From September 2007) ●July 1995, Product Liability Law Enacted Social ●May 2007,、Revised Consumer Product Safety Law Enacted Background The direction of societal changes to protect
Slide 33: Customer Service Strategy: Cleanup Smile Membership
Ⅱ．Medium-Term Strategy Progress 7. Customer Service Strategy ② Cleanup Smile Membership 【Applicable Products】 Creating “Cleanup Smile Ｓ. Ｓ. CLEANLADY Members” Aqulia Bath delivered after Sept. 2007 Annual Fee 3,000 Yen (Inc. Tax) ＊A separate startup fee of 12,000 yen (inc. tax) is required for the C
Slide 34: Quality Management System
Ⅱ．Medium-Term Strategy Progress 8. Quality Management System Cleanup subsidiary ‘Cleanup Tecno Service’, a specialist in residential equipment installation/service, acquired ISO9001 certification in April 2007. ＋ All production facilities, including the main office and the shipping subsidiary ‘Clean
Slide 35: Creation of Home Living Space Services
Ⅱ．Medium-Term Strategy Progress 9. “Creation of Home Living Space Services” Creating lifestyle-satisfying products Providing lifestyle-satisfying information Showrooms are Sales Production Distribution Proposals Home Renovation 【Cleanup】 【Customer Homes】 Relationship Sales Strengthening Design Creat
Slide 36: Second-Half Plans
Ⅱ．Medium-Term Strategy Progress 10. Second-Half Plans １ Increasing product strength ●System bathroom ‘Aqulia’ ●Washstand ‘Ｓ’ ２ Strengthening showrooms ●3 showrooms transferred to roadside locations Collaboration between ‘Water Section Workshop’ ３ and influential sub-users. ●Holding renovation fairs/
Slide 37: Cleanup Corporation
For any questions concerning investor relations, please contact: Cleanup Corporation Public Relations Section Tel 03-3810-8241 Fax 03-3893-9577 URL http://www.cleanup.jp/english/index.html 36
Slide 38: Disclaimer
Disclaimer This material is intended to provide information regarding FY2007 Interim Results (April 2007 ～September 2007) and does not constitute a solicitation to invest in Cleanup Co., Ltd.-issued securities. Furthermore, this material was created based upon data current as of November 21, 2007. O