Slide 1: Announcement of FY 2013 Year-End Results
“To create smiles from the kitchen” Presentation Material: Announcement of FY 2013 Year-End Results May 19, 2014 0
Slide 2: Results Outline
“To create smiles from the kitchen” Ⅰ. Results Outline 1
Slide 3: Outline of Consolidated Results for Period Ended March 2014
1. Outline of Consolidated Results for Period Ended March 2014 (Units: millions of yen) 2014/3 2013/3 Change From 2014/3 2013/3 Compared To Revised Plan Prev. Period (Initial Forecast (Revised Forecast (Actual Results) (Actual Results) 11/7) 2/6) 2/6 Net Sales 128,785 113,533 13.4％ 121,500 123,600 4
Slide 4: Consolidated Profits (1) Net Sales, Gross Profit
2. Consolidated Profits (1) Net Sales, Gross Profit (Units: billions of yen) 【Increased/Decreased Values (Rates)】 【Main Increase/Decrease Factors】 128.78 Net Sales ● System Kitchens ＋11,970 million yen ・Ｓ．Ｓ． ＋290 million yen 113.53 ＋15.25 billion yen ・CLEANLADY ・RAKUERA ＋6,160 million yen ＋2,660 mil
Slide 5: Consolidated Profits (2) SGA Expenses, Operating Income
2. Consolidated Profits (2) SGA Expenses, Operating Income (Units: billions of yen) 【Increased/Decreased Values (Rates)】 45.05 Gross Profit 【 Main Increase/Decrease Factors 】 38.75 ＋6.30 billion yen 38, 000 ●Sales Expenses △ 170 million yen ●Distribution Expenses ＋ 590 million yen ●Personnel Expense
Slide 6: Sales Composition (1) By Segment (Consolidated)
3. Sales Composition (1) By Segment (Consolidated) Kitchen Equipment Bathtubs & Washstands Other 【2014/3】 (Units: millions of yen) 128,785 127,000 Other 4.8％ 120,000 113,533 6,183 5,634 4,991 Bathtubs & 23,332 23,256 4.4％ Washstands 18.1％ 100,000 21,257 77.1％ 18.3％ Kitchen Equipment 80,000 60,000 99
Slide 7: Sales Composition (2) By Sales Route (Non-Consolidated)
3. Sales Composition (2) By Sales Route (Non-Consolidated) 3.8％ 4.2％ 15.6％ 15.4％ 4.4％ 6.0％ 15.3％ 5.7％ Direct-S ales (Con domin iu m own ers) 15.7％ 14.9％ Hou sin g Con stru ctors G en eral R ou tes (Con stru ction Con tractors - Home R en ovation ) 80.3％ 80.6％ 80.4％ 79.1％ 78.6％ 0 2015/3 2012/3 2013/3
Slide 8: Consolidated Balance Sheet Summary – 1/2
4. Consolidated Balance Sheet Summary – 1/2 【Assets】 【Increased/Decreased Values (Rates)】 【Main Increase/Decrease Factors】 (Units: billions of yen) 95.93 Total Assets ●Current Assets ＋888 million yen ●Fixed Assets ＋116 million yen 85.89 ＋10.04 billion yen ●Cash and Deposits ＋462 million yen Cash and
Slide 9: Consolidated Balance Sheet Summary – 2/2
4. Consolidated Balance Sheet Summary – 2/2 【Liabilities / Net assets】 (Units: billions of yen) 【 Increased/Decreased Values 】 【Primary Reasons for Increase/Decrease】 95.93 100 85.89 ●Trade Accounts Payable, ＋3,430 million yen Other Accounts Payable 29.82 Current Liabilities ●Income Tax Payable, ＋2,
Slide 10: Consolidated Cash Flow Statement Summary
5. Consolidated Cash Flow Statement Summary (Units: billions of yen) Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Year-End Cash & Cash Equivalents Balance 35. 00 31.32 30. 00 27.20 ＋41.2 25. 00 20. 00 15. 00 10. 00 8.60 7.30 ＋13.0 5. 00
Slide 11: Capital Investments (Consolidated)
6. Capital Investments (Consolidated) R&D Costs Capital Investment Deprecation Costs (Units: billions of yen) 【Major Capital Investment Details】 7.28 6.0 FY 2013 Results ① Production-Related 1,870 million yen 5.00 5.0 ② Showroom Renovation 1,650 million yen 4.50 ③ Information Investment 1,040 millio
Slide 12: Outline of Non-Consolidated Results for Period Ended March 2014
7. Outline of Non-Consolidated Results for Period Ended March 2014 (Units: millions of yen) 2014/3 2013/3 Change From (Actual Results) (Actual Results) Prev. Period Net Sales 123,276 109,127 13.0％ Operating Income 7,959 3,905 103.8％ Ordinary Income 7,925 3,822 107.4％ Net Income 4,792 2,243 113.6％ Ne
Slide 13: Non-Consolidated Sales Composition By Segment
8. Non-Consolidated Sales Composition By Segment Kitchen Equipment Bathrooms Washstands Industrial Kitchen Equipment Other 【2014/3】 (Units: millions of yen) Other 123,276 121,800 Industrial Kitchen Equipment 0.7％ 4.5％ 5,467 5,334 4.4％ 120,000 109,127 847 4.4％ 5,390 830 5,268 0.7％ Washstands 5,488 4.
Slide 14: Sales Results and Market Share - Complete System Kitchen
9. Sales Results For Major Products and Cleanup Market Share - 1/4 Complete System Kitchen Sales Results Demand Trends and Market Share Monetary Value Demand Volume (Units: billions of yen) (Thousands of Sets) (Thousands of Sets) （％） 100.0 Volume 400 1,400 Cleanup Share 30.0 89.2 88.3 1,227 1,200 1,
Slide 15: Sales Results and Market Share - Sectional System Kitchen
9. Sales Results For Major Products and Cleanup Market Share - 2/4 Sectional System Kitchen Sales Results Demand Trends and Market Share (Units: billions of yen) Monetary Value (Thousands of Sets) (Thousands of Sets) Demand Volume （％） 6.0 Volume 120 450 Cleanup Share 30.0 402 419 400 5.0 5.1 378 4.8
Slide 16: Sales Results and Market Share - Modular System Bathroom
9. Sales Results For Major Products and Cleanup Market Share - 3/4 Modular System Bathroom Sales Results Demand Trends and Market Share (Units: billions of yen) Monetary Value (Thousands of Sets) (Thousands of Sets) Demand Volume （％） 20.0 Volume 50 1,000 Cleanup Share 10.0 17.7 17.7 839 15.8 43 43 4
Slide 17: Sales Results and Market Share - Washstands/Vanities
9. Sales Results For Major Products and Cleanup Market Share - 4/4 Washstands/Vanities Demand Trends and Market Share (Units: billions of yen) Monetary Value (Thousands of Sets) (Thousands of Sets) Demand Volume （％） 6.0 Volume 150 2,000 Cleanup Share 10.0 5.4 1,828 5.3 5.1 1,655 1,637 1609 5.0 4.7 4
Slide 18: Showrooms And Visitor Numbers
10. Showrooms And Visitor Numbers (Locations) Number of Showrooms (Thousands of groups) 240 Number of Visitors 600 539 550 510 495 200 471 500 460 456 451 444 448 160 400 120 109 109 300 107 105 105 102 102 102 102 101 80 200 40 100 0 0 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 （Forecast） 17
Slide 19: Forecasted Consolidated Results For The Period Ending March 2015
11. Forecasted Consolidated Results For The Period Ending March 2015 (Units: millions of yen) 2014/3 2015/3 Change From (Actual Results) （Forecast） Prev. Period Net Sales 128,785 127,000 △1.4％ Operating Income 8,873 6,700 △24.5％ Operating Income Margin 6.9％ 5.3％ - Ordinary Income 8,470 6,400 △24.4％
Slide 20: Results from this term and the outlook from now on
“To create smiles from the kitchen” Ⅱ．Results from this term and the outlook from now on 19
Slide 21: Management Environment
1. Management Environment (Units) （千戸） New housing starts (units) 新設住宅着工戸数 YOY comparison(%) 前年同月比 （％） 100 60.0 90 91 90 89 84 84 85 84 80 80 80 78 78 78 40.0 75 76 74 73 74 70 71 70 69 69 69 25.2 60 20.0 15.5 14.5 19.4 18.0 7.3 15.3 14.1 10.3 9.3 10.3 10.0 12.4 12.3 -5.5 8.8 7.1 40 5.0 5.8 0.0 3.0
Slide 22: Management Policies for the Period Ending March 2014
2. Management Policies for the Period Ending March 2014 Period Ending March 2014 Management Policies Firmly establish “The Kitchen Company” ① Increase market share of mid- and high-level system kitchens centered on the CLEANLADY ② Increase the speed of renovation measures ③ Improve overall showroom
Slide 23: Important Measures: Realization of The Kitchen Company
3. Important Measures Firmly establish “The Kitchen Company” Production Reorganize/strengthen power production system Sales Brand Product capabilities power appeal Strengthening the brand Improved overall showroom competitiveness for Overseas Technical development of differentiated products that com
Slide 24: Production Capabilities
4 .“Production Capabilities” ●The deepening and evolution of craftsmanship ＣＰＳ Sales Production Distribution Installation Cleanup Production System （Order Production System） The pursuit of “total optimization” What they want We When they want it provide: How they want it Customer Satisfaction ● Impr
Slide 25: Measures to Enhance Product Appeal (1) Product Lineup
5. Measures to Enhance Product Appeal (1) Product Lineup Craftsmanship Leveraging the Strengths of a Specialist Manufacturer 【Renewal Schedule】 ● “S.S” (functional enhancement High-Value-Added Products Our standard brand as “The Kitchen Company” in December) A model allowing consumers to Luxury Syst
Slide 26: Measures to Enhance Product Appeal (2) Awards Received
5. Measures to Enhance Product Appeal (2) Principle Awards Received This Fiscal Term The 5th Monozukuri Nippon Grand Award Japan Institute of Design Promotion Chief of the Tohoku Bureau of Economy, Trade and Industry Award Good Design Award 2013 “Beautiful Silent Sink” “Washable Range Hood” 25
Slide 27: Measures to Enhance Sales Capabilities (1) Overall Renewal of Showrooms
6. Measures to Enhance Sales Capabilities (1) Overall Renewal of Showrooms 21 refurbished showrooms opened throughout the country (April, 2013 － March, 2014) 1 2 3 4 5 SagamiharaＳＲ KofuＳＲ SagaＳＲ KitaosakaＳＲ ToyamaＳＲ 6 7 8 9 10 MoriokaＳＲ IwakiＳＲ YokkaichiＳＲ TokushimaＳＲ NaraＳＲ 11 12 13 14 15 ChibaＳＲ T
Slide 28: Measures to Enhance Sales Capabilities (2) Showroom Advisors
6. Measures to Enhance Sales Capabilities (2) Enhancement of the Personnel Capabilities of Showroom Advisors All 380 showroom advisors qualified for the Level 3 Food Education Instructor certification Advisors in the showroom offer value, which is only available from the kitchen manufacturer through
Slide 29: Measures to Enhance Sales Capabilities (3) Showroom Competitiveness
6. Measures to Enhance Sales Capabilities (3) Enhance Comprehensive Competitiveness of Showroom Advisors Promote enhancement of comprehensive competitiveness of showrooms through multifaceted implementation of various measures Number of visitors Contract rate from nationwide consultations （％） (thous
Slide 30: Measures to Enhance Sales Capabilities (4) Promoting Renovation Plans
6. Measures to Enhance Sales Capabilities (4) Promoting Renovation Plans Building and strengthening a comprehensive system to meet the demands of renovators ●Influential regional stores Cleanup (contractors) Consumers ●Sub-users (wholesalers) Strengthen renovation strategy ●“Water Section Workshops”
Slide 31: Brand Power (1) Aiming for Improved Brand Value
7. Brand Power (1) Aiming for Improved Brand Value Aiming for increased brand power by implementing our corporate philosophy through various activities leveraging our strengths as a specialist manufacturer Expanded communication activities Deepening and evolution of Using the theme of craftsmanship
Slide 32: Brand Power (2) Events Focusing on the Theme of Food
プライバシー保護のため、この画像の自動ダウンロードをブロックしました。 7. Brand Power (2) Events Focusing on the Theme of “Food” ◎Regular cooking classes at showrooms with a "salonese“ as an instructor Salonese Showrooms Transmission of Information Members in Around Japan to Locals Japan 102 More than 1,300 Hold a total of 535 events
Slide 33: Brand Power (3) Promotion of Food Education for Children
7. Brand Power (3) Promotion of Food Education for Children Actively engaging in food education activities by participating in the “Bento Day Support Project” June, 2013 ● Supporting “Food Education Lectures” held by the “Bento Day” committee in the Nippori area of Arakawa ward August, 2013 ● Holdin
Slide 34: Brand Power (4) Participation at Exhibitions
7. Brand Power (4) Participation at Exhibitions World’s largest international furniture trade fair Japan’s largest environmental trade fair Salone Internazionale del Mobile Milano 2014 Eco-Products 2013 Topic “Kitchen Cleaning School” Distinguished Italian industrial art designer Mr. Giulio Iacchett
Slide 35: Overseas Business Capabilities
8. Overseas Business Capabilities ●China The market is entered jointly with a house manufacturer. Kitchens Shenyang Iwaki are supplied to four districts, Shenyang, Suzhou, Wuxi and Taicang. Beijing Full-scale deliveries and installation work started in FY2014. Tokyo ●Taiwan / Vietnam Shanghai Okayam
Slide 36: CSR Activities (1) Corporate Philosophy and Recovery Support
9. CSR Activities (1) Implementation of Our Corporate Philosophy and Recovery Support "Family" The Second "We Love Family Time!" Campaign An award ceremony was held on Mother’s Day in May 2014, with the winner of the Most Excellent Episode Prize receiving our top of the line system kitchen, “S.S.” 3
Slide 37: CSR Activities (2) Sporting Activities (Wrestling Club)
9. CSR Activities (2) Sporting Activities (Wrestling Club) Asian Championships (New Delhi, India) World Wrestling Championships (Budapest, Hungary) Hiroe Suzuki earned a gold Hiroe Suzuki, medal, and Shota Tanokura Shogo Maeda, earned a silver medal and Shota Hiroe Suzuki Tanokura Hiroe Suzuki repre
Slide 38: System Kitchen Market Share by Class
10. System Kitchen Market Share by Class Due to the favorable progress of RAKUERA, we were able to increase our market share of entry-level system kitchens Changes in System Kitchen Market Share by Class （％） 28.0 25.3 Luxury 24.0 20.6 Mid-Level 20.0 16.5 Entry-Level 16.3 16.3 17.2 16.0 15.5 14.5 15.
Slide 39: Management Policies for the Period Ending March 2015
11. Management Policies for the Period Ending March 2015 Period Ending March 2015 Management Policies Firmly establish “The Kitchen Company” ① Increase the speed of renovation measures ② Improve overall showroom competitiveness Increase the market share of medium and high class system ③ kitchens and
Slide 40: Medium-term Strategy Pursuit of New Management Philosophy
12. Medium-term Strategy Pursuit of “New Management Philosophy” ◎Our foundation, which is suitable for our “Second Creation”, will be established as we commemorate the 65th anniversary of our founding this year and take on new challenges, heading towards our 70th anniversary. Founder’s Philosophy (F
Slide 41: Cleanup Corporation
For any questions concerning investor relations, please contact: Cleanup Corporation Corporate Planning Department, Public Relations Section Tel 03-3810-8241 Fax 03-3800-2261 URL http://cleanup.jp/ 40
Slide 42: Disclaimer
Disclaimer This material is intended to provide information regarding FY2013 financial results (April 2013 - March 2014) and does not constitute a solicitation to invest in Cleanup Corporation-issued securities. Furthermore, this material was created based upon data current as of May 19, 2014. Opini