Securing Profitability in the Building Equipment Business Through Customer-Focused Sales and More Efficient Spending

「For building-related products, sales for new construction and renovation exceeded the same period of the previous year. However, continued weak market conditions for residential products resulted in higher sales than in the same period of the previous year but a segment loss.」

「Although building products showed signs of recovery, they continued to be affected by sluggish market conditions from the previous period, while the recovery in residential products slowed, resulting in revenue below the previous period. However, profit exceeded the previous period due to the effect of reducing selling, general and administrative expenses.」

「Although residential products showed signs of recovery, building products continued to be affected by sluggish market conditions from the previous period, resulting in lower revenue than in the same period of the previous year and a segment loss. Consequently, revenue in Architectural Equipment was ¥2,436 million, down 8.0% year on year, and the segment posted a loss of ¥7 million, compared with segment profit of ¥66 million in the same period of the previous year.」

「Revenue in Architectural Equipment was ¥5,938 million, down 7.1% year on year, while segment profit was ¥391 million, down 29.3%.」

「The number of projects for both building and residential products declined from the previous year, and revenue was below the same period of the previous year. Although selling, general and administrative expenses declined due to cost reductions, the decrease in revenue resulted in lower segment profit than in the same period of the previous year. Consequently, revenue in Architectural Equipment was ¥2,648 million, down 6.6% year on year, and segment profit was ¥66 million, down 45.3%.」

「Demand for window operators for new buildings, particularly in urban areas, was strong, while products for building renovations and residential applications also remained solid. Consequently, revenue in Architectural Equipment was ¥6,389 million, up 4.2% year on year, and segment profit was ¥554 million, up 13.7%.」

「Window operators, the core building product, remained strong in both the new-build and renovation markets, while residential products also performed well, resulting in higher revenue and profit than in the same period of the previous year. Consequently, revenue in Architectural Equipment was ¥4,673 million, up 7.5% year on year, and segment profit was ¥362 million, up 41.1%.」

「Both building and housing products performed steadily and generated higher sales than in the same period of the previous year. Segment profit also exceeded the previous year's level as selling, general and administrative expenses were reduced year on year. As a result, architectural equipment revenue was ¥2,834 million, up 2.8% year on year, and segment profit was ¥121 million, up 7.8%.」

「Revenue in the Architectural Equipment segment was ¥6,132 million, up 5.9% year on year, while segment profit was ¥487 million, up 42.2%.」

「Sales and profit from residential products were below the same period of the previous year due to the decline in new housing starts. For building products, sales of the core smoke-control and ventilation product, window operators, for new construction remained strong, resulting in higher revenue and profit than in the same period of the previous year. Consequently, revenue in Architectural Equipment was ¥4,347 million, up 4.8% year on year, and segment profit was ¥257 million, up 69.4%.」

「The core residential external blind product “ブリユ” generated higher sales than in the same period of the previous year. Window Operator, the core smoke exhaust and ventilation system for buildings, continued to generate solid sales to the new-build market, including mid- and low-rise projects, resulting in higher revenue and profit than in the same period of the previous year. As a result, architectural equipment revenue was ¥2,758 million, up 3.7% year on year, and segment profit was ¥112 million, up 131.9%.」

「Sales of window operators, the core smoke-control and ventilation product for buildings, remained strong in the new-build market, including mid- and low-rise properties, resulting in higher revenue and profit than in the same period of the previous year. Consequently, revenue in Architectural Equipment was ¥1,325 million, up 4.3% year on year, and segment profit was ¥41 million, compared with segment profit of ¥1 million in the same period of the previous year.」

「Revenue in the Architectural Equipment segment was ¥5,808 million, down 3.9% year on year, while segment profit was ¥342 million, down 4.0%.」

「Residential products generated higher sales and profit than in the same period of the previous year, but the construction schedule for Window Operator, the core smoke-exhaust and ventilation system for buildings, was pushed back to the fourth quarter and beyond, resulting in lower revenue and profit than in the same period of the previous year. As a result, Building Equipment revenue was ¥4,164 million, down 5.7% year on year, and the segment profit was ¥151 million, down 37.1% year on year.」

「Sales of the manual type of the Brille external blind for residential use and inquiries related to maintenance remained firm, but construction of the Window Operator smoke-exhaust and ventilation system, the core product for buildings, was pushed back to the third quarter and beyond due to the state of emergency and the Olympic period. As a result, Building Equipment revenue was ¥2,674 million, down 6.4% year on year, and the segment profit was ¥48 million, down 59.9% year on year.」

「Window operator sales declined compared with the same period of the previous year, when construction was concentrated, because new-build projects were pushed back to the second quarter and beyond. Although adoption of the external blind “Brille” for residential products increased, sales were almost unchanged from the previous year. As a result, Building Equipment revenue was ¥1,271 million, down 6.7% year on year, and the segment profit was ¥1 million, down 95.8% year on year.」

「Orders for Window Operator remained solid amid rising demand for ventilation measures related to infectious disease control, resulting in higher revenue and profit than in the same period of the previous year. Sales of housing products recovered gradually from the decline in domestic consumption to approximately the previous year's level, enabling the company to secure a profit. As a result, architectural equipment revenue was ¥4,417 million, up 5.4% year on year, and segment profit was ¥241 million, up 184.3%.」

「Orders for window operators increased amid higher demand for ventilation resulting from measures to prevent COVID-19 infections. New-build construction was also completed smoothly, resulting in higher revenue and profit than in the same period of the previous year. Sales of residential products fell below the same period of the previous year, affected by the decline in consumption caused by COVID-19. As a result, Building Equipment revenue was ¥2,858 million, up 6.4% year on year, and the segment profit was ¥121 million, up 198.9% year on year.」

「Window operator sales and profit both exceeded the same period of the previous year, as new-build projects were completed smoothly and renovation and maintenance projects performed well amid increased demand for ventilation associated with measures to prevent infectious disease. Sales of residential products fell below the same period of the previous year, affected by the decline in consumption caused by COVID-19. As a result, Building Equipment revenue was ¥1,363 million, up 13.1% year on year, and the segment profit was ¥32 million, compared with a segment loss of ¥27 million in the same period of the previous year.」

「Sales of the core window operator product were maintained at the previous year's level for both new-build and renovation projects. Sales of residential products were also maintained at the previous year's level. As a result, Building Equipment revenue was ¥4,192 million, up 0.8% year on year, and the segment profit was ¥84 million, compared with a segment loss of ¥27 million in the same period of the previous year.」

「Sales of the core window operator product for renovation projects increased. Sales of residential products were also maintained at the previous year's level. As a result, Building Equipment revenue was ¥2,685 million, up 4.4% year on year, and the segment profit was ¥40 million, compared with a segment loss of ¥96 million in the same period of the previous year.」

「Sales of products for renovation projects increased, but sales of products for new-build projects and residential products such as external blinds fell below the previous year. As a result, Building Equipment revenue was ¥1,205 million, down 2.1% year on year, and the segment loss was ¥27 million, compared with a segment loss of ¥67 million in the same period of the previous year.」

「Amid a severe labor shortage in the construction industry and difficulties expanding sales of the core window operator product, the company will focus going forward on maintenance of existing window operators and securing renovation projects to improve profitability. It will also strengthen promotional activities to raise awareness of external blinds, which are effective for energy conservation, and work to expand orders.」

「Sales of external blinds increased as aggressive sales activities paid off, but sales of both new and renovation projects for the core window operator product declined, and the business failed to secure a profit. As a result, Building Equipment revenue was ¥4,161 million, down 3.3% year on year, and the segment loss was ¥27 million, compared with a segment profit of ¥15 million in the same period of the previous year.」

「Sales of external blinds increased as aggressive sales activities paid off, but orders for both new and renovation projects for the core window operator product declined. As a result, Building Equipment revenue was ¥2,572 million, down 5.3% year on year, and the segment loss was ¥96 million, compared with a segment loss of ¥31 million in the same period of the previous year.」

「Orders for residential products increased, but orders for new projects for the core window operator product declined, resulting in lower revenue for the Building Equipment business as a whole than in the same period of the previous year. As a result, Building Equipment revenue was ¥1,231 million, down 5.3% year on year, and the segment loss was ¥67 million, compared with a segment loss of ¥29 million in the same period of the previous year.」

「With the number of construction starts declining and the company facing difficulties securing new projects for its core window operator product, it will focus going forward on maintenance of existing window operators and securing renovation projects. It will also actively work to expand sales of external blinds and natural ventilation systems, which are effective for energy conservation.」

「As a result of firm orders for the core window operator product and efforts to focus on sales of residential products, revenue increased and the business secured a profit.」

「Demand for the company's core window operator product began to recover, resulting in higher revenue for the Building Equipment business as a whole, but profit was not secured because growth in residential products stalled.」

「Housing products remained solid and sales of natural ventilation systems expanded, resulting in higher revenue for architectural equipment overall, although sluggish growth in window operators prevented the segment from securing a profit.」

「The Building Equipment business will focus on securing renewal projects for window operators, while strengthening sales activities for external blinds that improve comfort and energy efficiency, and high-quality natural ventilation systems that help reduce environmental impact, in an effort to expand sales.」

「In the Building Equipment business, we will seek to increase sales by promoting customer-focused sales activities while improving the efficiency of spending, thereby securing profits.」