Focusing on replacement demand, including renovations and the distribution of pre-owned homes

「A. Construction Materials Business: Improving customer satisfaction, strengthening the remodeling and renewal markets and civil engineering market, and developing new products」

「In this environment, the Group reviewed its sales structure and various systems, and worked to secure and develop personnel in response to changes in the markets and working environment. It also implemented measures including strengthening relationships with existing business partners, improving the gross profit margin, reinforcing its construction capabilities, expanding its initiatives in the civil engineering, steel, remodeling and renewal markets, and developing new business partners.」

「In this environment, the Group has been conducting sales activities with a focus on responding quickly to market changes, while implementing measures including strengthening relationships with existing business partners, improving the gross profit margin, strengthening its construction capabilities, securing personnel, strengthening the remodeling and renewal markets and the civil engineering and steel markets, and developing new business partners.」

「A. Construction Materials Business: Improving customer satisfaction, strengthening the remodeling and renewal markets and civil engineering market, and developing new products」

「The construction business primarily undertakes and performs various types of construction work. It operates in such areas as materials-related construction, including exterior wall installation and unit bathroom installation associated with building materials sales; specialized construction, including interior work subcontracted by general contractors and prime contracting for detached-home construction; residential renovation; and large-scale renovation work, primarily involving waterproofing and painting for apartment buildings.」

「The construction business primarily undertakes and performs various types of construction work. It operates in such areas as materials-related construction, including exterior wall installation and unit bathroom installation associated with building materials sales; specialized construction, including interior work subcontracted by general contractors and prime contracting for detached-home construction; residential renovation; and large-scale renovation work, primarily involving waterproofing and painting for apartment buildings.」

「Construction work generally remained strong, but a decline in orders for large-scale properties compared with the previous fiscal year resulted in net sales of ¥27.686 billion, down 2.4% year on year, and segment profit of ¥507 million, down 52.2%.」

「In April this year, the Company made 株式会社フリー・ステアーズ, which handles large-scale apartment renovation projects primarily in the Tokyo metropolitan area, a wholly owned subsidiary.」

「株式会社フリー・ステアーズ operates primarily in large-scale apartment renovation projects centered on waterproofing and painting work in the Tokyo metropolitan area. As synergies are expected with the Company’s apartment water supply and drainage pipe renewal and rehabilitation business, which could strengthen its business base and support further growth, the Company decided to acquire the shares.」

「Against this backdrop, amid expectations of a decline in new housing starts due to the declining birth rate and aging population, among other factors, the Group continued to strengthen its renovation business while also actively pursuing sales in the non-residential sector.」

「The Company has established dedicated renovation departments in Hokkaido and Honshu and worked to develop customers by undertaking renovation work in collaboration with retailers. It is also focusing on renewal work for apartment water supply and drainage pipes and will proactively pursue large-scale renovation projects involving refurbishments and measures to address vacant homes.」

「Amid expectations of a decline in new housing starts due to the declining birth rate and aging population, among other factors, the Company continued pursuing its internet-based renovation contracting business and worked to develop renovation demand by using the Renovation Experience Showroom established last year.」

「Amid expectations of a decline in new housing starts due to the declining birth rate and aging population, among other factors, the Company continued pursuing its internet-based renovation contracting business and worked to develop renovation demand by using the Renovation Experience Showroom established last year.」

「Amid expectations of a decline in new housing starts due to the declining birth rate and aging population, among other factors, the Company also strengthened its sales capabilities and expanded its construction system to acquire customers for its renovation contracting business using the internet, which it began pursuing last year.」

「As a new initiative in the renovation market, the Company established the joint venture 株式会社Lifull Remodel in November 2016 with 株式会社ネクスト, a major housing and real estate portal operator now known as 株式会社LIFULL, and began accepting renovation orders using the customer acquisition capabilities of the internet. Although it currently receives many small-scale renovation orders, it is also considering securing orders for large-scale renovations, including refurbishments and measures to address vacant homes.」

「Amid expectations of a decline in new housing starts due to the declining birth rate and aging population, among other factors, the Company worked to develop demand for renovations and refurbishments by opening a Renovation Experience Showroom in Sapporo, holding a Renovation Experience Fair in the underground pedestrian space at Sapporo Station, and establishing the joint venture 株式会社Lifull Remodel with 株式会社ネクスト, which operates the HOME'S real estate and housing information website.」

「Against this backdrop, the Group worked to develop demand for renovations and refurbishments by opening a Renovation Experience Showroom in Sapporo and holding a Renovation Experience Fair in the underground pedestrian space at Sapporo Station, among other initiatives,」

「Amid this situation, the Group worked to develop demand for renovations and refurbishments by opening a Renovation Experience Showroom in Sapporo and holding a Renovation Experience Fair in the underground pedestrian space at Sapporo Station, among other initiatives,」

「The Group will continue to focus on replacement demand in growth markets such as renovations and the distribution of pre-owned homes.」