Policy of positioning overseas operations as the next growth engine

「コマーシャル （高級品） ３１.６ ３4.4 ２.６ 3.9 ＋1.2 +46.4」

「In its core US business, the company carried out a structural reform by withdrawing from the general-purpose siding business for the residential market and concentrating management resources on the commercial market, including non-residential markets such as commercial facilities, and on high-end siding for the residential market, both of which offer high growth and profitability.」

「As a result, the company concluded that it would be difficult to secure stable earnings going forward and decided to withdraw from the business.」

「In the U.S. exterior wall materials business, demand in the housing business remained firm, particularly for multifamily housing, while the strengthened sales organization in the commercial business also proved effective. As a result, revenue increased by just under 20% in local-currency terms. The impact of the weaker yen was added to this, resulting in a substantial revenue increase of approximately 35% in yen terms.」

「In terms of earnings, although price revision effects and lower energy prices contributed to higher profit, these factors were insufficient to offset the negative impact of persistently high material costs, higher fixed costs, and low operating rates at the second US plant. Operating income declined ¥1,498 million, or 12.8%, from the previous consolidated fiscal year to ¥10,205 million.」

「Although the U.S. exterior wall materials business was affected by the sluggish housing market, revenue increased as a result of measures including the successful strengthening of the sales organization in the commercial business.」

「In the US market, the group’s main overseas market, housing starts generally remained below the previous year amid rising home prices and mortgage rates. In the US non-residential market, some companies also began to restrain investment in response to high interest rates.」

「The US siding business also recorded higher revenue due to the positive effect of yen depreciation, despite the impact of the downturn in the housing market.」

「Under this policy, the company constructed a new plant at its US subsidiary in October 2021 to produce high-value-added products and began production in June 2022. With a total investment of approximately ¥17.5 billion, the plant is capable of producing high-value-added products equivalent to those manufactured in Japan.」

「The US siding business also performed strongly, with revenue increasing more than 30% year on year including the impact of price revisions and yen depreciation. Consequently, total revenue rose ¥6,497 million, or 6.7%, year on year to ¥103,694 million.」

「The US siding business also performed strongly, with revenue increasing approximately 30% year on year including the impact of price revisions and yen depreciation. Consequently, total revenue rose ¥4,526 million, or 7.2%, year on year to ¥67,209 million.」

「The US siding business also performed strongly, with revenue increasing more than 20% year on year including the impact of price revisions. Consequently, total revenue rose ¥1,743 million, or 5.7%, year on year to ¥32.1 billion.」

「Revenue from the core domestic business increased through expanded sales of high-value-added products, while the US siding business also performed strongly and recorded higher revenue. Consequently, total revenue rose ¥6,873 million, or 7.6%, year on year to ¥97,197 million.」

「Revenue from the core domestic business increased as the company raised its market share year on year through expanded sales of high-value-added products. The US siding business also performed strongly, with revenue increasing 20%. Consequently, total revenue rose ¥4,826 million, or 8.3%, year on year to ¥62,683 million.」

「Revenue from the core domestic business increased as the company raised its market share year on year through expanded sales of high-value-added products despite lower industry-wide sales volumes. The US siding business also performed strongly, with double-digit revenue growth. Consequently, total revenue rose ¥1,772 million, or 6.2%, year on year to ¥30,357 million.」

「The group positions the overseas business as “one of its next growth engines.” In the US, which has long had substantial demand for detached homes, the company mainly manufactures fiber-cement siding at local plants and sells it to the residential market. The US housing market has remained firm, and the company plans to expand the US business by establishing a stable production system at its local plants, pursuing further increases in production and producing high-value-added products. As part of this initiative, the company decided in July 2018 to construct a new plant for producing high-value-added products. With a total investment of ¥16.4 billion, the plant will be capable of producing high-value-added products equivalent to those manufactured in Japan. Through construction of the plant, the company will develop the market by creating products aligned with local customer needs and bringing them to market in a timely manner. Installation of machinery at the new plant was delayed due to the impact of COVID-19, but completion was scheduled for around October 2021.」

「Revenue from the core domestic business declined mainly because industry-wide sales volumes fell sharply, despite the company steadily increasing its market share through expanded sales of high-value-added products. Revenue from the US fiber-cement siding business also declined. Consequently, total revenue fell ¥3,714 million, or 4.0%, year on year to ¥89,580 million.」

「Revenue from the core domestic business declined mainly because industry-wide sales volumes fell sharply, despite the company steadily increasing its market share through expanded sales of high-value-added products. Revenue from the US fiber-cement siding business also declined. Consequently, total revenue fell ¥3,219 million, or 5.3%, year on year to ¥57,381 million.」

「Revenue from the core domestic business declined mainly because industry-wide sales volumes fell sharply, despite the company steadily increasing its market share through expanded sales of high-value-added products. Revenue from the US fiber-cement siding business also declined. Consequently, total revenue fell ¥807 million, or 2.8%, year on year to ¥28,327 million.」

「First, the US business has grown into a driver of the group’s performance in both revenue and profit as a result of the market development efforts undertaken to date. Although demand is expected to decline due to the impact of COVID-19, the company will continue to pursue further growth by focusing, as before, on enhancing its installation support system.」

「Revenue from the core domestic business increased as the company steadily raised its market share through expanded sales of high-value-added products despite lower industry-wide sales volumes. Revenue from US fiber-cement siding also increased. Consequently, total revenue rose ¥3,971 million, or 4.4%, year on year to ¥93,294 million.」

「Revenue from the core domestic business increased as industry-wide sales volumes rose and the company steadily raised its market share through expanded sales of high-value-added products. Revenue from US fiber-cement siding also increased. Consequently, total revenue rose ¥4,029 million, or 7.1%, year on year to ¥60,600 million.」

「Revenue from the core domestic business increased as the company steadily raised its market share despite lower industry-wide sales volumes, mainly through expanded sales of high-value-added products. The US fiber-cement siding business also continued to perform steadily and recorded higher revenue. Consequently, total revenue rose ¥1,393 million, or 5.0%, year on year to ¥29,135 million.」

「As part of this initiative, the company decided in July 2018 to construct a new plant for producing high-value-added products. With a total investment of approximately ¥15 billion, the plant will be capable of producing high-value-added products equivalent to those manufactured in Japan.」

「The US fiber-cement siding business continued to perform steadily and recorded higher revenue.」

「The US fiber-cement siding business returned to revenue growth as the temporary impact of the transitional phase of distribution-channel restructuring came to an end. However, revenue from the domestic business declined due to lower sales volumes, resulting in a slight 0.5% year-on-year decline in total revenue to ¥56,570 million, down ¥283 million. In terms of earnings, the domestic siding business recorded lower profit due to the revenue decline, the reversal of the previous year’s inventory recovery through increased production, and higher energy costs. The US fiber-cement siding business also recorded lower profit despite higher revenue, due to upfront costs associated with strengthening its sales organization. Consequently, operating income declined ¥1,245 million, or 18.6%, year on year to ¥5,435 million, while ordinary income declined ¥1,120 million, or 16.4%, to ¥5,720 million.」

「Revenue from the core domestic siding business declined due to lower sales volumes. However, the US fiber-cement siding business returned to revenue growth as the temporary decline caused by the transitional phase of distribution-channel restructuring came to an end. Consequently, total revenue rose ¥321 million, or 1.2%, year on year to ¥27,742 million.」

「In terms of earnings, the domestic siding business recorded lower profit due to higher depreciation associated with capital investments made in the previous fiscal year and increased energy costs. However, the overseas fiber-cement siding business recorded higher profit, mainly due to improved productivity in the US business and an improved margin resulting from distribution-channel restructuring. As a result, operating income rose ¥398 million, or 3.1%, from the previous consolidated fiscal year to ¥13,232 million, while ordinary income rose ¥679 million, or 5.2%, to ¥13,796 million.」

「In terms of earnings, the domestic siding business recorded lower profit due to higher depreciation associated with capital investments made in the previous fiscal year and increased energy costs. However, the overseas fiber-cement siding business recorded higher profit, mainly due to improved productivity in the US business. As a result, operating income rose ¥299 million, or 3.0%, year on year to ¥10,417 million, while ordinary income rose ¥223 million, or 2.2%, to ¥10,611 million.」

「Revenue from the Japan business declined slightly due to lower sales volume, while the U.S. fiber-cement exterior wall materials business also temporarily recorded lower revenue during a transitional period of distribution-channel restructuring. As a result, total revenue declined slightly by ¥153 million, or 0.3%, year on year to ¥56,854 million.」

「Revenue from the core fiber-cement exterior wall materials business in Japan increased through expanded sales of high-value-added products and other measures. However, the U.S. fiber-cement exterior wall materials business temporarily recorded lower revenue during a transitional period of restructuring its distribution channels. As a result, total revenue declined slightly by ¥129 million, or 0.5%, year on year to ¥27,420 million.」

「The U.S. fiber-cement exterior wall materials business remained strong and increased sales by more than 30% year on year. As a result, total revenue increased by ¥6,891 million, or 6.2%, from the previous fiscal year to ¥118,215 million.」

「Revenue from the core fiber-cement exterior wall materials business in Japan increased through expanded sales of high-value-added products and other measures, while the U.S. fiber-cement exterior wall materials business remained strong and increased sales. As a result, total revenue increased by ¥3,885 million, or 4.7%, year on year to ¥87,243 million.」

「Revenue and profit increased in the Japan exterior wall materials business as a result of cost reductions from rationalization measures and lower energy unit prices, while profit also increased in the U.S. and Chinese fiber-cement exterior wall materials businesses. As a result, operating profit increased by ¥2,824 million, or 83.9%, year on year to ¥6,191 million.」

「In Japan, sales of the core fiber-cement exterior wall materials increased through expanded sales of high-value-added products and other measures, while the U.S. fiber-cement exterior wall materials business remained strong and increased sales. As a result, total revenue increased by ¥1,922 million, or 7.5%, year on year to ¥27,550 million.」

「The group positions its overseas operations as “one of the next growth engines.”」