Risk of Failure to Respond to Changes in Market and Customer Needs

「Although sales were strong in Europe, the Middle East and India, revenue from the overseas business declined due to continued sluggish demand in the United States and China, as well as the reduction in sales following the transfer of the bathtub business in the United States in the previous fiscal year. Revenue was ¥735.942 billion, down 0.5% year on year.」

「Although overseas operations benefited from the foreign-exchange translation effect of the weaker yen, revenue declined year on year because demand fell sharply as high interest rates, particularly in Europe, and persistent inflation dampened investment appetite related to housing.」

「Although the overseas business benefited from the foreign-exchange translation effect of the weaker yen, revenue declined year on year as demand fell sharply, particularly in Europe, due to reduced housing-related investment appetite amid falling residential property prices and additional interest-rate increases in the region, as well as the effects of inflation.」

「Overseas business was particularly affected by weaker demand, centered on Europe, the Group’s main market, amid rising interest rates and further inflation, resulting in lower revenue and profit.」

「Although third-quarter consolidated cumulative-period results continued to be affected by supply-chain disruptions and weaker demand in the United States and China in the overseas business,」

「Remodeling products driven by the response to the new normal and increased time spent at home remained strong. Sales of the remodeling door “Reshent” increased 16% year on year, while sales of the remodeling resin inner window “Inplus” increased 22%. Sales of the “Smart Delivery Post” also increased 52%.」

「Even during the COVID-19 pandemic, we accurately captured latent demand for making time spent at home more comfortable, and the various initiatives we have undertaken in the domestic business to improve its underlying structure are steadily producing results.」

「The shift toward digitalization has also accelerated significantly during the COVID-19 pandemic.」

「By responding quickly to changes in consumer behavior and demand, the Group achieved particularly strong results in the third quarter consolidated accounting period, exceeding expectations.」

「Overseas business also recorded lower revenue in all regions, but showed a solid recovery during the second quarter consolidated accounting period (July to September), particularly as expanded retail and e-commerce sales channels in North America and Europe, the Middle East and Africa, together with touchless COVID-response products meeting consumer needs under the new normal, helped generate new demand.」

「Although the outlook remains difficult to assess, enhancing our ability to adapt to the new normal and accelerating business transformation will help us prepare for the future.」

「Demand is increasing for products focused on hygiene and health, such as touchless faucets, and for products such as smart delivery boxes incorporating IoT technology. End-user needs are also expected to continue changing over the medium to long term.」

「The increase in revenue narrowed due to factors including the reactionary decline following the consumption tax increase, which became apparent during the third quarter consolidated accounting period.」

「Domestic business revenue increased year on year. This was attributable to strong domestic sales, particularly in the Water Technology and Housing Technology businesses, against a backdrop of increased new housing starts in the fourth quarter of the previous fiscal year, as well as the stabilization of the domestic sales structure following the introduction of the new trading system in the first half of the previous fiscal year and the effect of launching new products.」

「In the current fiscal year, the continuing businesses other than Permasteelisa progressed as planned, resulting in a strong recovery, particularly in the domestic business, which captured demand for both new construction and renovations.」

「Although domestic demand fell sharply in the cumulative second quarter because of natural disasters and other factors, revenue increased as a result of higher demand for building materials from October onward, along with the adoption of the new trading system promoted since the beginning of the fiscal year and the stabilization of the domestic sales structure.」

「The domestic business reported lower revenue, mainly because renovation demand remained weak as a result of declining new housing starts, natural disasters and other factors.」

「Failure to respond appropriately to changes in market or industry needs could reduce future growth and profitability and adversely affect the Group's operating results and financial condition.」

「In housing investment, the latest number of new housing starts has declined, but the remodeling market has been on a recovery trend from the previous year, supported by measures such as subsidies under the government's housing stock circulation support program.」

「The renovation market has been on a recovery trend from the previous year, supported by government subsidies under the Housing Stock Circulation Support Project and other measures.」

「The renovation market has been on a recovery trend from the previous year, supported by government subsidies under the Housing Stock Circulation Support Project and other measures.」

「Revenue declined to ¥1.786447 trillion, down 5.5% year on year, mainly because domestic demand fell following the end of the energy-efficient housing points program in the previous year.」

「In the cumulative third quarter, revenue declined to ¥1.333672 trillion, down 7.4% year on year, due to the effects of foreign exchange translation, selective order acceptance, delays in the progress of core construction work at contracted properties, declining domestic renovation demand and changes in the scope of consolidation associated with the sale of a subsidiary, among other factors.」

「Failure to respond appropriately to changes in market or industry needs could reduce future growth and profitability and adversely affect the Group's operating results and financial condition.」