Strengthening Profitability by Segment

「As the number of properties started and delivered during the six-month consolidated accounting period decreased, partly because products for sale were strategically narrowed down in the previous fiscal year, net sales for the six-month consolidated accounting period amounted to ¥4,242 million, down 13.7% year on year. Segment profit was ¥292 million, down 53.7% year on year, partly reflecting a decline in the gross profit margin due to rising costs.」

「However, as the project progressed, we concluded that the originally planned benefits could not be achieved because of layout issues and additional equipment costs. Because some equipment that had been accepted could not be used or repurposed, the Board of Directors decided to cancel the project and recognize the full amount of the accepted equipment as a loss.」

「As a result of these activities, revenue for the cumulative first half of the current consolidated fiscal year was ¥4,914 million, down 6.7% year on year, as the number of buildings delivered declined after the product lineup was strategically narrowed. However, the improvement in gross profit margin resulting from revised selling prices was effective, and segment profit was ¥632 million, down 0.4% year on year.」

「In production activities, we advanced measures to address cost inflation caused by higher resource prices and by rising labor and transportation costs associated with restrictions on overtime work known as the “2024 problem.” The Construction Company worked to reduce costs and shorten construction periods, while the Production Company pursued further quality improvements and efficiency gains at Chiba Factory, which manufactures components in-house and is ISO9001-certified.」

「To address cost inflation caused by higher resource prices, the Construction Company worked to shorten construction periods, while the Production Company pursued further quality improvements and efficiency gains at Chiba Factory, which manufactures components in-house and is ISO9001-certified. We also continued operating the new construction method introduced in the previous fiscal year, worked to reduce costs through cooperation between headquarters and Chiba Factory, and continued appropriate cost pass-through into rents through stronger cooperation with the rental management business.」

「We will promote efficiency gains through digitalization, shorten construction periods through technological innovation, promote automation using robots and other technologies, and improve production efficiency through common components.」

「To address cost inflation caused by higher resource prices, we worked to improve construction methods, shorten construction periods and raise productivity through greater factory efficiency. We also diversified procurement sources by developing new suppliers, reduced costs through the launch of a new construction method and implemented appropriate cost pass-through into rents by strengthening cooperation with the rental management business.」

「To address cost inflation caused by higher resource prices, we worked to improve construction methods, shorten construction periods and raise productivity through greater factory efficiency. We also diversified procurement sources by developing new suppliers, reduced costs through the launch of a new construction method, strengthened cooperation with the rental management business to pass costs appropriately into rents, and promoted adoption of the “Tokyo Zero Emission Housing” specifications, incorporating highly insulating materials and energy-efficient lighting, while also reviewing selling prices to reflect the added value.」

「To address cost inflation caused by higher resource prices, we worked to improve construction methods, shorten construction periods and raise productivity through greater factory efficiency. We also focused on cost reductions by developing new suppliers and diversifying procurement sources, and on appropriate pass-through of costs into rents through cooperation with the rental management business.」

「To address cost inflation caused by the COVID-19 pandemic and higher resource prices, we worked to improve construction methods, adjust schedules and raise productivity through greater factory efficiency, while also focusing on cost reductions through diversified sourcing.」

「On the profit side, we worked to contain cost increases by improving procurement methods for construction materials and construction techniques. On the expense side, we made investments for future growth, including investment in human resources through stronger recruitment and human-resource development, including amoeba management.」

「On the profit side, we worked to contain cost increases by improving procurement methods for construction materials and construction techniques. On the expense side, we made investments for future growth, including investment in human resources through stronger recruitment and human-resource development, including amoeba management.」

「We established “strengthening profitability by segment” as our medium-term basic policy from the fiscal year ending February 2022 and have made bold strategic investments centered on technological development, human resources and digitalization.」