Responding to Changes in the Raw Material Procurement Environment and Researching Alternative Raw Materials

「In addition to initiatives including inventory optimization and shorter lead times, we will strengthen risk management across the entire supply chain to respond rapidly to market changes.」

「In carpets, we launched the graphic tile carpet “GX Series” in July, pursuing “comfort” that enriches people's lives under the concept of Japan design.」

「In the vinyl flooring business, we launched the easy-renovation flooring product “LAY Flooring Pitafee” and the biomass-derived composition vinyl floor tile “Biomic Stone,” which reuses eggshells in part of its raw materials, in December. Sales growth going forward is expected.」

「During the current fiscal year, we worked to establish the third sales price revision implemented in September 2022, while focusing on reducing manufacturing costs through the full-scale operation of the new No. 3 line at 広化東リフロア, expanded in-house production of nylon yarn for tile carpets, and improved recycling rates through the tile carpet recycling plant. We also worked to establish a stable supply system and improve profitability.」

「During the current fiscal year, in response to the multiple increases in raw material costs since the previous year, we focused on reducing manufacturing costs, including through the in-house production of nylon filament yarn for tile carpets and increasing the use ratio of recycled raw materials. At the same time, we worked to ensure that the second sales price revision in May and the third in September were accepted in the market, thereby improving profitability.」

「During the period, to address the multiple increases in raw material costs since the previous year, we focused on reducing manufacturing costs, including in-house production of nylon yarn for carpet tiles and increasing the proportion of recycled raw materials used. We also announced the second sales price revision in May and the third in September, following the first sales price revision implemented in autumn of the previous year, and worked to improve profitability.」

「In terms of profit, manufacturing cost reductions progressed through the effects of selling price revisions, the promotion of in-house production of nylon filament for carpets, and the full-scale operation of a carpet tile recycling plant, but segment profit was ¥56 million, down 68.5% year on year, due to continued increases in raw material costs.」

「We will promote risk management from multiple perspectives, including the incorporation of upstream technologies, research into alternative raw materials, and the use of recycled raw materials, while working to ensure stable supply and reduce manufacturing costs.」

「During the current fiscal year, we focused particularly on the full-scale operation of in-house spinning of solution-dyed nylon yarn, which falls under A and D, and the use of the tile carpet recycling plant.」

「We recognize responding to changes in the raw material procurement environment resulting from fluctuations in crude oil and naphtha prices, geopolitical risks, and other factors as an important issue for the Group. We will promote risk management from multiple perspectives, including the incorporation of upstream technologies into the supply chain and research into alternative raw materials.」

「We will further strengthen our business foundation as preparation for unforeseen events by incorporating upstream technologies into the supply chain and researching alternative raw materials.」