Slide 1: Presentation Material: Announcement of FY2010 Year-End Results
Presentation Material: Announcement of FY2010 Year-End Results May 18, 2010 Tokyo Stock Exchange, 1st Section, Code 7955 0
Slide 2: I. Results Outline
I. Results Outline 1. Outline of Consolidated Results for Period Ended March 2010 2. Consolidated Profits 3. Sales Composition 4. Consolidated Balance Sheet Summary 5. Consolidated Cash Flow Statement Summary 6. Capital Investments (Consolidated) 7. Outline of Non-Consolidated Results For Period End
Slide 3: Outline of Consolidated Results for Period Ended March 2010
I. Results Outline 1. Outline of Consolidated Results for Period Ended March 2010 (Units: millions of yen) 2010/3 2009/3 Change From 2010/3 2010/3 Compared (Actual Results) (Actual Results) Prev. Period (Initial Forecast) (Revised Forecast) To Plan Net Sales 98,843 109,205 △9.5％ 104,500 99,000 △0.2％
Slide 4: Consolidated Profits: Net Sales, Gross Profit
I. Results Outline 2. Consolidated Profits ① Net Sales, Gross Profit (Units: billions of yen) 【Primary Reasons for Increase/Decrease】 【Increased/Decreased Values (Rates)】 109.20 ● System Kitchens △6,420 million yen ・ S.S. △2,440 million yen 98.84 Net Sales ・ CLEANLADY △3,480 million yen ● System Bat
Slide 5: Consolidated Profits: SGA Expenses, Operating Income
I. Results Outline 2. Consolidated Profits ② SGA Expenses, Operating Income (Units: billions of yen) 【Increased/Decreased Values (Rates)】 34.55 【Primary Reasons for Increase/Decrease】 32.82 Gross Profit △1.72 billion yen ● Sales Expenses △1,100 million yen ● Distribution Expenses △460 million yen SG
Slide 6: Sales Composition By Segment (Consolidated)
I. Results Outline 3. Sales Composition ① By Segment (Consolidated) Kitchen Equipment Bathrooms & Washstands Other 【2010/3】 (Units: millions of yen) Other 4.2％ 120,000 109,205 100,000 Bathtubs & 4,459 98,843 Washstands 17.7％ 100,000 4,152 4,294 4.3％ 78.1％ 19,615 Kitchen Equipment 17,506 17,970 18.0％
Slide 7: Sales Composition By Sales Route (Non-Consolidated)
I. Results Outline 3. Sales Composition ② By Sales Route (Non-Consolidated) 10.2％ 10.9％ 9.3％ 16.9％ 6.4％ 7.7％ Direct-Sales 17.1％ 17.1％ 16.7％ (Condominium owners) 16.7％ Housing Constructors 72.9％ 72.0％ 73.6％ 75.6％ 76.9％ General Routes (Construction Contractors - Home Renovation) 0 2011/3 2008/3 2009/3
Slide 8: Consolidated Balance Sheet Summary – 1/2
I. Results Outline 4. Consolidated Balance Sheet Summary – 1/2 (Units: billions of yen) 【Primary Reasons for Increase/Decrease】 【Increased/Decreased Values】 【Assets】 76.10 76.28 Total Assets ● Current Assets ＋1,790 million yen ● Fixed Assets △1,600 million yen ＋0.18 billion yen ● Cash and Deposits ＋
Slide 9: Consolidated Balance Sheet Summary – 2/2
I. Results Outline 4. Consolidated Balance Sheet Summary – 2/2 (Units: billions of yen) 【Primary Reasons for Increase/Decrease】 【Liabilities･Minority Interests・Assets】 ● Short-Term Debt △430 million yen 76.10 76.28 【 Increased/Decreased Values 】 ● Long-Term Debt Repayable Current Liabilities Within
Slide 10: Consolidated Cash Flow Statement Summary
I. Results Outline 5. Consolidated Cash Flow Statement Summary (Units: billions of yen) Cash Flow from Operating Activities Cash Flow from Investing Activities 25. 00 Cash Flow from Financing Activities Term-End Cash & Cash Equivalents Balance 21.88 ＋5.20 20. 00 16.67 15. 00 10. 00 7.46 3.46 ＋4.00 5
Slide 11: Capital Investments (Consolidated)
I. Results Outline 6. Capital Investments (Consolidated) (Units: billions of yen) R&D Costs 【Major Capital Investment Details】 5.00 Capital Investment Deprecation Costs FY 2010 Results 4.13 ① Dies and Equipment for New Products 4.00 3.78 280 million yen 3.55 ② Showroom Renovation 3.20 990 million ye
Slide 12: Outline of Non-Consolidated Results For Period Ended March 2010
I. Results Outline 7. Outline of Non-Consolidated Results For Period Ended March 2010 (Units: millions of yen) 2010/3 2009/3 Change From 2010/3 2010/3 Compared (Actual Results) (Actual Results) Prev. Period （Initial Forecast） （Revised Forecast） To Plan Net Sales 95,402 105,622 △9.7％ 101,000 95,500 △
Slide 13: Non-Consolidated Sales Composition By Segment
I. Results Outline 8. Non-Consolidated Sales Composition By Segment Kitchen Equipment Bathrooms (Units: Washstands Industrial Kitchen Equipment 【2010/3】 millions of yen) Other Other Industrial Kitchen Equipment 1.7％ 7.5％ 120,000 105,622 Washstands 4.7％ 95,402 96,500 Kitchen 100,000 8,501 1,774 6.9％
Slide 14: Major Products and Cleanup Market Share - 1/4
I. Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 1/4 Complete System Kitchen Sales Results Demand Trends and Market Share (Units: billions of yen) Monetary Value (Thousands of Sets) (Thousands of Sets) Demand Volume （％） 100.0 Volume 300 1,400 Cleanup Share 30.0 1,247
Slide 15: Major Products and Cleanup Market Share - 2/4
I. Results Outline 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 （％） 8.0 Volume 120 600 Cleanup Share 30.0 559 546
Slide 16: Major Products and Cleanup Market Share - 3/4
I. Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 3/4 Modular System Bathroom Sales Results Demand Trends and Market Share Monetary Value Demand Volume (Units: billions of yen) (Thousands of Sets) (Thousands of Sets) （％） 20.0 Volume 50 1,000 Cleanup Share 10.0 15.9 77
Slide 17: Major Products and Cleanup Market Share - 4/4
I. Results Outline 9. Sales Results For Major Products and Cleanup Market Share - 4/4 Washstands/Vanities Demand Trends and Market Share Monetary Value Demand Volume (Units: billions of yen) (Thousands of Sets) (Thousands of Sets) （％） 6.0 Volume 150 2,000 Cleanup Share 10.0 1,844 1,834 5.3 1,786 1,7
Slide 18: Showrooms And Visitor Numbers
I. Results Outline 10. Showrooms And Visitor Numbers (Locations) Number of Showrooms (Thousands of groups) 240 Number of Visitors 600 495 200 480 500 460 456 451 450 450 444 160 380 400 314 120 109 109 300 104 107 105 105 102 101 95 87 80 200 40 100 0 0 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 1
Slide 19: Forecasted Consolidated Results For The Period Ending March 2011
I. Results Outline 11. Forecasted Consolidated Results For The Period Ending March 2011 (Units: millions of yen) 2010/3 2011/3 Change From (Actual Results) （Forecast） Prev. Period Net Sales 98,843 100,000 1.2％ Operating Income 1,840 1,050 △42.9％ Operating Income Margin 1.9％ 1.1％ - Ordinary Income 1,
Slide 20: Forecasted Non-Consolidated Results For The Period Ending March 2011
I. Results Outline 12. Forecasted Non-Consolidated Results For The Period Ending March 2011 (Units: millions of yen) 2010/3 2011/3 Change From (Actual Results) （Forecast） Prev. Period Net Sales 95,402 96,500 1.2％ Operating Income 1,103 750 △32.0％ Operating Income Margin 1.2％ 0.8％ - Ordinary Income 1
Slide 21: II. Future Strategy
Ⅱ. Future Strategy 1. FY 2010 Basic Mgmt. Policy and Results 2. Results of the “Transformation to a Profit Focus” 3. Transition in Number of New Housing Starts 4. Recent Business Environment and Cleanup Business Approach 5. Cleanup’s Current Situation 6. Cleanup Product Market Share 7. FY 2011 Basic
Slide 22: FY 2010 Basic Management Policy and Results
II. Future Strategy 1. FY 2010 Basic Mgmt. Policy and Results 1 Transformation to a profit focus ● Thorough minimization of selling, general Return To and administrative expenses ● Strategic personnel allocation and installation of posts Profitability 2 Securing profit by adding value Increased ● Cr
Slide 23: Results of the Transformation to a Profit Focus
II. Future Strategy 2. Results of the “Transformation to a Profit Focus” ＋1.84 Sales expense reductions ＋1.10 Operating Previous Income Distribution expense reductions ＋0.46 Profitability Improvement Factors Period Operating Personnel expense reductions ＋1.22 Current Loss Period △1.10 Administrative
Slide 24: Transition in Number of New Housing Starts
II. Future Strategy 3. Transition in Number of New Housing Starts Extremely Lengthy Stagnation (1,000 homes) （％） 2007 2008 2009 2010 23
Slide 25: Recent Business Environment and Cleanup Business Approach
II. Future Strategy 4. Recent Business Environment and Cleanup Business Approach The housing-related industry has faced 3 giant shocks 1999-2004 ～ Housing Quality Assurance Law/Deflation Shock June 2007～ Building Standards Law Revision Shock Sept 2008～ Lehman Shock Despite these shocks, Cleanup’s co
Slide 26: Cleanup's Current Situation
II. Future Strategy 5. Cleanup’s Current Situation 【Industry Trends】 【Market Trends】 3 ● Housing Quality Assurance Law /Deflation Shock Expected long-term depression・・・ Shocks ● Building Standards Law Revision Shock ● Lehman Shock ●Market environment remains stagnant ●On the verge of a “Renovation D
Slide 27: Cleanup Product Market Share
II. Future Strategy 6. Cleanup Product Market Share Share increase for all types of our main product, the system kitchen Changes in System Kitchen Market Share （％） 24.0 Luxury Mid-Level 20.6 Entry-Level 20.0 16.9 16.5 16.0 16.0 15.5 16.8 14.7 13.9 11.3 11.7 12.0 9.3 9.7 8.0 Other shares (special ord
Slide 28: FY 2011 Basic Management Policy
II. Future Strategy 7. FY 2011 Basic Management Policy 【Current Situation】 【Industry Position】 【Lineup and Business System】 【Profit Structure】 Cleanup’s reputation and Promoting the creation of high- Returned to profitability in FY market share continue to value-added products/services 2010 and prep
Slide 29: Introducing 06/2010 New Products – 1/3
II. Future Strategy 8. Introducing 06/2010 New Products – 1/3 System Kitchen New “S.S. Light Package” For new houses and renovations More variety at a lower price ●New 80cm and 90cm models, in addition to prev. 85cm model ●Added 6 new sizes to improve adaptability ●Now with optional pipe spacing for
Slide 30: Introducing 06/2010 New Products – 2/3
II. Future Strategy 8. Introducing 06/2010 New Products – 2/3 System Kitchen Improved “RAKUERA” Now a pivotal product, along with “CLEANLADY” ●Newly-Priced CYNTHIA Series ~Even more affordable products 2 Price 3 Price Ranges Ranges ●Expanded selection of trendy kitchen interior colors 23 Colors 30 C
Slide 31: Introducing 06/2010 New Products – 3/3
II. Future Strategy 8. Introducing 06/2010 New Products – 3/3 Bath/Vanity “hairo” Renewal ●Comes standard with sandwich panel (thermal insulation) “BTG” Bathroom ●Becoming a new driving force in this popular product class Vanity RAKUERA hairo BTG ～Now “RAKUERA”, “hairo” and “BTG” can be fully coordi
Slide 32: Strengthening System Kitchen Products
II. Future Strategy 9. Strengthening System Kitchen Products Strengthen the overall product lineup as “The Kitchen Company” by means of innovation focused on core products High-Value-Added Products Our standard brand as “The Kitchen Company” A model allowing consumers to experience the beauty of sta
Slide 33: Consumer Point-Of-View Sales System
II. Future Strategy 10. Consumer Point-Of-View Sales System Reach 1,800 stores participating in “Water Section Strengthen Workshops” Renovation ●Continuously hold renovation seminars/fairs and improve Strategy consumer-oriented events such as cooking classes ●Strengthen collaboration with major reno
Slide 34: Consumer Point-of-View Communications
II. Future Strategy 11. Consumer Point-of-View Communications (Examples of FY 2010 2nd-half Event) ●Tie-up with Nosan Corp., producer and distributor of “Yodoran-Hikari” ・Multi-faceted cooperation, beginning this Spring, to create healthy people, families and society ・Jointly-held cooking classes us
Slide 35: Product Creation to Support Cleanup
II. Future Strategy 12. Product Creation to Support Cleanup Aiming to create “products you can trust”… Cleanup will continue to provide high-quality products, regardless of the times, and always with an emphasis on the consumer’s point-of-view. Cleanup’s Compliance with Laws/Systems Product Creation
Slide 36: Future Management: Management Based on New Corporate Philosophy
II. Future Strategy 13. Future Management ~ Management Based on New Corporate Philosophy Establishing a “New Corporate Philosophy” for our 60th - Founding Spirit - Affectionate Spirit anniversary and challenging Founder’s - A Creative Spirit ourselves to achieve innovation Philosophy - A Technologic
Slide 37: 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/ 36
Slide 38: Disclaimer
Disclaimer This material is intended to provide information regarding FY2010 financial results (April 2009 - March 2010) 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 18, 2010. Opini