Business Rehabilitation Under the Medium-Term Management Plan 2020–2022

「当社グループは、引き続き『住宅設備メーカー企業から「住まいと暮らし」創造企業グループへ』を基本経営方針として住宅設備機器製造事業から派生する事業を事業多様化戦略により展開し、より幅広く、より多くの方々に、より良い「住まいと暮らし」を提供することのできる企業体へと転換を図っております。」

「The group continues to pursue its basic management policy of transitioning from a housing equipment manufacturer to a group that creates housing and lifestyles. Through a business diversification strategy, it is developing businesses derived from the manufacture of housing equipment and working to become a corporate group capable of providing better housing and lifestyles to a broader range of people.」

「The Company continues to pursue its transformation from a housing-equipment manufacturer into a corporate group that creates “homes and lifestyles,” based on its fundamental management policy of developing businesses derived from its housing-equipment manufacturing business through a business diversification strategy and becoming a corporate entity capable of providing better “homes and lifestyles” to a broader range of people.」

「As part of these efforts, the company established the Holdings Business Development Group and the Event Sales Group, and began its Home Improvement and Renovation Business in October 2024 with the cooperation of the group companies. From the current consolidated fiscal year, it also began full-scale event sales of solar power generation and storage battery equipment at home improvement centers and other locations, and the number of contracts is gradually increasing. In addition to residential environment equipment, the company also launched a rare gases business and is working to expand its sales channels.」

「Under this policy, the company has also begun developing new businesses through acquisitions. Going forward, it will actively pursue its business diversification strategy, focus on creating business synergies by leveraging the strengths of each group company, and work to expand its businesses.」

「The Group formulated the “Medium-Term Management Plan 2022–2024,” with the basic management policy of “transforming from a housing equipment manufacturer into a corporate group that creates homes and lifestyles.” Through a business diversification strategy, it is developing businesses derived from its housing equipment manufacturing operations and working to transform itself into a corporate entity capable of providing better homes and lifestyles to a broader range of people.」

「At a Board of Directors meeting held on 1 August 2023, the company resolved to acquire all shares of Yamamoto Yogyokako Co., Ltd. (hereinafter, "YYK") and made YYK a consolidated subsidiary." Acquired voting rights: 100.0%」

「The group formulated the Medium-Term Management Plan 2022–2024 and is working to transform itself from a housing equipment manufacturer into a corporate group that creates “homes and lifestyles.” Under its business diversification strategy, it is developing businesses derived from its housing equipment manufacturing operations and seeking to become a corporate entity capable of providing better “homes and lifestyles” to a broader range of people. As described above, with the outlook for global conditions still uncertain, the group believes it needs to pursue new businesses to replace its overseas operations. In addition to its core sanitary ceramics business, it launched a business selling EV charging equipment and made フラグシップス株式会社, which operates commercial facilities and drone schools that can be used to inspect exterior walls and roofs, a subsidiary and brought it into the consolidated group. In its overseas business, the group has launched the “Challenge Vietnam” project and is strengthening promotional activities together with AMY MAYA, its general distributor in Vietnam, in an effort to secure a new earnings base.」

「The group formulated the Medium-Term Management Plan 2022–2024 and is working to transform itself from a housing equipment manufacturer into a corporate group that creates “homes and lifestyles.” Under its business diversification strategy, it is developing businesses derived from its housing equipment manufacturing operations and seeking to become a corporate entity capable of providing better “homes and lifestyles” to a broader range of people.」

「The group formulated the Medium-Term Management Plan 2022–2024 and is working to transform itself from a housing equipment manufacturer into a corporate group that creates “homes and lifestyles.” Under its business diversification strategy, it is developing businesses derived from its housing equipment manufacturing operations and seeking to become a corporate entity capable of providing better “homes and lifestyles” to a broader range of people.」

「Although the newly launched recycling business made a positive contribution, the other businesses did not perform as planned.」

「The group formulated the Medium-Term Management Plan 2022–2024 and is working to transform itself from a housing equipment manufacturer into a corporate group that creates “homes and lifestyles.” Under its business diversification strategy, it is developing businesses derived from its housing equipment manufacturing operations and seeking to become a corporate entity capable of providing better “homes and lifestyles” to a broader range of people.」

「Our group formulated the medium-term management plan “4S-UPPLAN” covering the 3 fiscal years from the fiscal year ending November 2022 through the fiscal year ending November 2024. Under the basic management policy of transforming the group from a housing-equipment manufacturer into a group that creates “homes and lifestyles,” we will expand businesses derived from the housing-equipment manufacturing business through a business diversification strategy and seek to transform the Company into an entity capable of providing better “homes and lifestyles” to more people, across a broader range.」

「With the outlook for global conditions uncertain, the group believes it needs to pursue a strategy of expanding new businesses other than the overseas operations on which it had previously focused. In addition to its core sanitary ceramics business, it launched new businesses selling solar power generation systems and storage battery systems for ordinary homes, worked to secure a new earnings base, and promoted growth in revenue and profit.」

「The Company is also currently considering a new medium-term management plan that takes the above new businesses into account.」

「To achieve the plans set out in the Medium-Term Management Plan 2020–2022, the Group is pursuing business strategies based on a policy of expanding its overseas business, where significant progress is expected, particularly in Vietnam, the base of its Asian strategy, and undertaking fundamental reforms to the business model and earnings structure of its domestic business, where deterioration in profitability has become pronounced due to sluggish market prices and rising material procurement costs.」

「To achieve the plans set out in the Medium-Term Management Plan 2020–2022, the Group is pursuing business strategies based on a policy of expanding its overseas business, where significant progress is expected, particularly in Vietnam, the base of its Asian strategy, and undertaking fundamental reforms to the business model and earnings structure of its domestic business, where deterioration in profitability has become pronounced due to sluggish market prices and rising material procurement costs.」

「The Group had recorded operating loss, ordinary loss and net loss attributable to owners of the parent for five consecutive fiscal years since the fiscal year ended November 2015. However, as a result of implementing various measures based on the “2020–2022 Medium-Term Management Plan” announced in August 2019, it recorded operating profit, ordinary profit and net profit attributable to owners of the parent in the current consolidated fiscal year.」

「To achieve the plans set out in the Medium-Term Management Plan 2020–2022, the Group is pursuing business strategies based on a policy of expanding its overseas business, where significant progress is expected, particularly in Vietnam, the base of its Asian strategy, and undertaking fundamental reforms to the business model and earnings structure of its domestic business, where deterioration in profitability has become pronounced due to sluggish market prices and rising material procurement costs.」

「To achieve the plans set out in the Medium-Term Management Plan 2020–2022, the Group is pursuing business strategies based on a policy of expanding its overseas business, where significant progress is expected, particularly in Vietnam, the base of its Asian strategy, and undertaking fundamental reforms to the business model and earnings structure of its domestic business, where deterioration in profitability has become pronounced due to sluggish market prices and rising material procurement costs.」

「To achieve the plans set out in the Medium-Term Management Plan 2020–2022, the Group is pursuing business strategies based on a policy of expanding its overseas business, where significant progress is expected, particularly in Vietnam, the base of its Asian strategy, and undertaking fundamental reforms to the business model and earnings structure of its domestic business, where deterioration in profitability has become pronounced due to sluggish market prices and rising material procurement costs.」

「The Company implemented various measures, including downsizing the head office and Kagawa Plant and reducing personnel, closing and discontinuing the Vietnam engineered-stone plant and Sendai sales office, and disposing of parts inventories related to stagnant inventory and withdrawn businesses, as well as deteriorated and obsolete parts inventories」

「On 30 August 2019, the Company announced its "Medium-Term Management Plan 2020–2022." It will work to improve its performance based on the following basic policies set out in the plan. ~Basic Policies~ In Japan, as a standalone entity, priority will be given to operating profit over revenue, while overseas subsidiaries will serve as the core of growth in revenue and operating profit.」