Cleanup Corporation
Tokyo Stock Exchange, 1st Section, Code 7955
Presentation Material:
Announcement of FY2007
Interim Results
November 21, 2007
I. Inter i m Resul ts Outl i ne
1. Outl i ne of Consol i dated Resul ts for Inter i m Per i od Ended Septem ber 2007
Net Sales
Operating Income
Ordinary Profit
Interim
Net Income
Interim Net Income
Per Share
54,759
△ 306
△ 352
△ 740
△ 15.15 yen
2007/9
(Actual Results)
2006/9
(Actual Results)
59,500
1,000
900
260
5.32yen
2007/9
(Initial Plan)
△ 6.4 ％
- ％
△ 0.0 ％
＋ 0.0 ％
－ ％
Change From Prev. Period
Compared To Revised Plan
△ 3.3 ％
－ ％
－ ％
－ ％
－ ％
(Unit: millions of yen)
56,600
△ 900
△ 1,000
△ 1,400
△ 28.64 yen
2007/9
(Revised Plan)
58,474
1,833
1,737
881
18.03 yen
－ ％
－ ％
－ ％
＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced July 26, 2007
2. Consol i dated Pr ofi ts ① Net Sal es, Gr oss Pr ofi t
Net Sales
Cost of Sales
Gross Profit
54.75
35.80
18.95
（ 34.6 ）
（ 65.4 ）
Cost of Sales Ratio
△ 3.71 billion yen
△ 1.94 billion yen
＋ 0.8 ％
△ 1.77 billion yen
【Main Increase/Decrease Factors】
【Increased/Decreased Values (Rates)】
● System Kitchens △3,530 million yen SS △1,790 million yen
CLEANLADY △850 million yen
● System Bathrooms ＋140 million yen
Aqulia＋620 million yen L-Bath △480 million yen
●Reduction Due to Reduced Earnings
△2,390 million yen
●Increase Due to Increased Cost of Sales Ratio
＋450 million yen
● Worsening Kitchen Section Product Mix
(Large SS reductions) ＋0.3 points
●ﾟIncrease in Aqulia Cost of Sales Ratio ＋0.5 points
●Decrease in Kitchen Section Distribution Ratio
＋0.2 points
●Cost Decrease △0.3 points Increases in cost of raw materials absorbed by
product price increases
●Reduction Due to Reduced Earnings
△1,320 million yen
●Decrease in Gross Profit Ratio △450 million yen
58.47
37.74
20.72
（ 35.4 ）
（ 64.6 ）
(Billions of yen)
2. Consol i dated Pr ofi ts ② SGA Expenses, Oper ati ng Inc om e
Gross Profit
SGA Expenses
Operating Income
18.95
19.25
△ 0.30
（△ 0.6 ）
（ 35.2 ） SGA Ratio
△ 1.77 billion yen
+0.36 billion yen
＋ 2.9 ％
△ 2.13 billion yen
【 Main Increase/Decrease Factors 】
【Increased/Decreased Values (Rates)】
● Sales Expenses ＋0.9 points
● Personnel Expenses ＋0.9 points
●Renovation・Depreciation Expenses ＋0.5 points
●Change in Gross Profit △1,770 million yen
●Change in SGA Expenses △360 million yen
● Sales Expenses (New product promotion)
＋380 million yen
● Distribution Expenses △280 million yen
●Renovation Expenses (Showrooms)
＋140 million yen
●Depreciation Expenses ＋60 million yen
20.72
18.89
1.83
（ 3.1 ）
（ 32.3 ）
(Billions of yen)
Ki tc hen Equi pment Bathtubs &
Washstands
Other
Ki tc hen Equi pment Bathtubs &
Washstands
Other
3. Sal es Com posi ti on ① By Segm ent (Consol i dated)
2006/9 2007/9 2007/3 2008/3 2008/3
45,654 10,748
2,071
41,618 10,881
2,260
92,900 20,709
4,591
89,448 20,267
4,485
98,098 20,288 4,394
0 20,000 40,000 60,000 80,000 100,000 120,000
Other
Bathtubs & Washstands Kitchin Equipment
78.3％ 17.8％
3.9％
78.6％ 17.5％
3.9％
58,474
122,781
118,200
【 2006/9 】
78.1 ％
18.4 ％
3.5 ％
【 2007/9 】
76.0 ％
19.9 ％
4.1 ％
54,759
79.9％ 16.5％
3.6％
114,200
～
Forecasts for the current period represent a range of values and should be considered only as a general guide. (Millions of yen)
（Term-End Forecast） (Current Interim Period)
3. Sal es Com posi ti on ② By Sal es Route (Non-Consol i dated)
2005/9 2006/9 2007/9
0
Direct-Sales (Condominium owners)
Housing Constructors
General Routes (Construction Contractors - Home Renovation)
2006/3 2007/3 2008/3
2008/3
0
75.5 ％
79.2 ％
18.1 ％
15.9 ％ 6.4 ％
4.9 ％
74.8 ％ 72.9 ％
16.2 ％ 16.9
％
9.0 ％ 10.2 ％
76.2 ％
17.5 ％
6.3 ％ 71.0 ％
17.7 ％
11.3 ％
70.3 ％
18.1 ％
11.6 ％
～
(Current Interim Period) （Term-End Forecast）
【 First-Half Base 】
【 Full-Term Base 】
＊Forecasts for the current period represent a range of values and should be considered only as a general guide.
4. Consol i dated Bal anc e Sheet Sum m ar y – 1/ 2
Total Assets
Cash and Deposits Notes and Accounts Receivable
Inventory
Fixed Assets
△ 2.67 billion yen
△ 5.64 billion yen
＋ 1.65 billion yen
+0.57 billion yen
【 Main Increase/Decrease Factors 】
84.27
● Current Assets △3,250 million yen
● Fixed Assets ＋570 million yen
● Cash and Deposits △1,010 million yen
● Notes and Accounts Receivable
△4,630 million yen
● Increase in Direct-Sales Inventory (For Apartments)
●Tangible Fixed Assets (New Product
Equipment) ＋700 million yen
●Intangible Fixed Assets (Software)
△180 million yen
88.51
● Securities (Increase in CP) ＋790 million yen
＋ 0.73 billion yen
86.95
Other Current Assets
【Increased/Decreased Values】
【 Assets 】
Current Assets
(Billions of yen)
4. Consol i dated Bal anc e Sheet Sum m ar y – 2/ 2
Current Liabilities
Total Assets
88.51 86.95
△ 1.87 billion yen
+0.72 billion yen
△ 1.52 billion yen
【 Main Increase/Decrease Factors 】
84.27
● Accounts Payable △330 million yen● Short-Term Debt △1,500 million yen
● Income Taxes Payable △690 million yen
● Advance Receipts ＋670 million yen
● Long-Term Debt ＋1,060 million yen
● Long-Term Unpaid Obligations △400 million yen
● Retained Earnings △1,220 million yen
● Unrealized Gain on Securities △290 million yen Long-Term Liabilities
【 Increased/Decreased Values 】
【Liabilities･Minority Interests・Assets】
Minority Interests
(Billions of yen)
5. Consol i dated Cash Fl ow Statem ent Sum m ar y
2006/9 2007/9
△ 0.99
△ 0.21
16.63
（2007/3）
＋ 0.07
＋ 1.10
(Billions of yen)
Compared to Year-End Balance
6 ． Capi tal Investm ents (Consol i dated)
2006/9 2007/9 2007/3 2008/3
0.68 1.51
1.74
4.00 5.20
1.40 3.59 3.35
1.38 0.73
3.21
1.92
0.00 2.00 4.00 6.00
R&D Costs
Capital Investment
Deprecation Costs
First-Half Results
Second-Half Plans
① Dies for New Products 680 million yen
② Equipment for New Products 430 million yen
③ Showroom Renovations, etc. 210 million yen
④ Information Investment 410 million yen
① Production-Related 620 million yen
② Operations-Related 730 million yen
③ Information-Related 490 million yen
【FY2007 Major Capital Investment Details】
(Billions of yen)
（Term-End Forecast） (Current Interim Period)
7. Outl i ne of Non-Consol i dated Resul ts For Inter i m Per i od Ended Septem ber 2007
53,149
△ 479
△ 148
△ 498
△ 10.19 yen
57,700
780
1,000
450
9.21 yen
△ 6.8 ％
－ ％
－ ％
－ ％
－ ％
△ 3.4 ％
－ ％
－ ％
－ ％
－ ％
55,000
△ 1,000
△ 800
△ 1,200
△ 24.55 yen
57,017
1,505
1,584
833
17.05 yen
Net Sales
Operating Income
Ordinary Profit
Interim
Net Income
Interim Net Income
Per Share
2007/9
(Actual Results)
2006/9
(Actual Results)
2007/9
(Initial Plan)
Change From Prev. Period
Compared To Revised Plan (Unit: millions of yen)
2007/9
(Revised Plan)
＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced July 26, 2007
8. Non-Consol i dated Sal es Com posi ti on By Segm ent
2006/9 2007/9 2007/3 2008/3 2008/3
42,022 8,330
2,418 827 3,421
38,109 8,463
2,419 805 3,354
83,151 15,628
5,081 1,819 9,321
79,920 15,277
4,990 1,810 9,003
88,167 15,197
5,093 1,834 9,292
0 20,000 40,000 60,000 80,000 100,000 120,000
Other
Industrial Kitchen Equipment Washstands
Bathrooms
Kitchen Equipment
57,017
73.7％ 12.7％
4.3％
53,149
119,582
115,000
【 2006/9 】
73.7 ％
14.6 ％
【 2007/9 】
1.5％ 7.8％
72.3％ 13.6％
4.4％ 1.6％ 8.1％
4.2 ％
71.7 ％
15.9 ％
4.6 ％
6.0 ％
1.5 ％
6.3 ％
1.5 ％
72.0％ 13.8％
4.5％ 1.6％ 8.1％
111,000
～
(Millions of yen)
（Term-End Forecast） (Current Interim Period)
Bathr ooms
Other
Washstands Industr i al
Ki tc hen Equi pment Bathr ooms
Other
Washstands Industr i al
Ki tc hen Equi pment
Ki tc hen Equi pment Ki tc hen Equi pment
Forecasts for the current period represent a range of values and should be considered only as a general guide.
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 1/ 4
Complete System Kitchen Sales Results Demand Trends and Market Share
◆
35.3
87
(Planned)
(Thousands of sets)
(Thousands
of sets) （％）
Current Interim Period
(Current Interim Period) (Billions of
yen)
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 2/ 4
◆
2.8
33
Sectional System Kitchen Sales Results Demand Trends and Market Share
(Planned) (Current Interim Period)
Current Interim Period (Thousands
of sets)
(Thousands
of sets) （％）
(Billions of yen)
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 3/ 4
◆
8.2
17
(Planned)
Modular System Bathroom Sales Results Demand Trends and Market Share
(Current Interim Period) Note: Total number of companies increased from 11 to 15 in FY2005 (Thousands
of sets)
(Thousands
of sets) （％）
(Billions of yen)
Current Interim Period
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 4/ 4
◆
2.4
43
Washstands/Vanities Demand Trends and Market Share
(Planned) (Current Interim Period)
Current Interim Period (Thousands
of sets)
(Thousands
of sets) （％）
(Billions of yen)
(Planned)
(Locations) (Thousands of groups)
10. Showr oom s And Vi si tor Num ber s
Current Interim Period 109 locations Current Interim Period
233 thousand groups (+3.5%)
Prev. Interim Period 225 thousand groups
Operating
Income
11. For ec ast Consol i dated Resul ts For The Per i od Endi ng Mar c h 2008
122,781
4,139
3,962
1,865
126,500
3,400
3,200
1,400
3.4 ％
3.2 ％
1.5 ％
2.7 ％
2.5 ％
1.1 ％
Ordinary
Profit
Current Period
Net Income
Net Sales 114,200 ～ 118,200
△ 800 ～ 380
△ 900 ～ 300
△ 1,800 ～△ 600
2008/3
(Term-End Forecast)
2007/3
(Actual Results)
2008/3
(Initial Plan)
△ 7.0 ～
△ 3.7 ％
－ ％
－ ％
－ ％
Change From Prev. Period
(Unit: millions of yen)
Operating Margin
Ordinary Profit Margin
Current Period Return on Revenues
△ 0.7 ～ 0.3 ％
△ 0.8 ～ 0.3 ％
△ 1.8 ～△ 0.5 ％
-
-
-
△ 9.7 ～
△ 6.6 ％
－ ％
－ ％
－ ％
Compared To Plan
-
-
-
12. For ec ast Non-Consol i dated Resul ts For The Per i od Endi ng Mar c h 2008
119,582
3,211
3,255
1, 438
123,000
2,700
2,850
1,300
2.7 ％
2.7 ％
1.2 ％
2.2 ％
2.3 ％
1.1 ％
111,000 ～ 115,000
△ 1,050 ～ 80
△ 800 ～ 330
△ 1,600 ～△ 370
△ 7.2 ～
△ 3.8 ％
－ ％
－ ％
－ ％
△ 0.9 ～ 0.1 ％
△ 0.7 ～ 0.3 ％
△ 1.4 ～△ 0.3 ％
-
-
-
△ 9.8 ～
△ 6.5 ％
－ ％
－ ％
－ ％
-
-
-
Operating
Income
Ordinary
Profit
Current Period
Net Income
Net Sales
2008/3
(Term-End Forecast)
2007/3
(Actual Results)
2008/3
(Initial Plan)
Change From Prev. Period
(Unit: millions of yen)
Operating Margin
Ordinary Profit Margin
Current Period Return on Revenues
Compared To Plan
1. Basi c Busi ness Pol i c y & Str ategy
Ai mi ng for medi um/ l ong-ter m gr owth by
conquer i ng the r enovati on mar ket
Oper ati ng
Goal
Growing from a simple home equipment manufacturer
to a “ creator of home living space services ”
Im por tant
Tar get
Indi c es
Concentrating on sales of value-added products, increasing
our brand strength as an exclusive manufacturer and
improving our earning rate (ordinary profit margin)
Construction of a life-cycle support system
Basi c
St r ategy
Cleanup’s medium/long-term strategy will continue to adhere
to this basic policy.
2. Mar ket Condi ti ons
June 20, 2007 Revised Building Standards
Law Enforcement
（Thousands of Homes） （％）
【Revised Building Standards Law】 Stringent construction verification to prevent reoccurrence
of falsified earthquake prevention measures
●Decreased number of applications and increasingly long review period (Large delays for 3-story houses/apartments buildings, in particular)
●A construction verification application is necessary for renovations greater than 10 ㎡, likely responsible for the reduced renovation demand
●Time is needed before the market will recover from the current conditions
＊Source: MLIT
2006 2007
Developing strategic
marketing based
on this concept.
3. Im por tant Futur e Pol i c i es
Aiming to be the No. 1 kitchen company
in terms of both quality and scale.
Product Strategy
Channel Strategy
Showroom Strategy
Customer Service Strategy
Pursue marketing strategies that will reverberate with
segments seeking to improve their quality of life.
【 Keywords 】
Lifestyle Satisfaction Proposals
Complete Redesign of “S. S.” and “Clean Lady”
(Both on sale September 3)
Happiness That Fosters Taste
New Brand/Concept for Kitchen Creation
4. Pr oduc t Str ategy-1/ 3
‘Creating Food’ ‘Eating Deliciously’ ‘Families Coming Together’
Reconsidering the past roles of the kitchen…
4. Pr oduc t Str ategy-2/ 3
S. S. Theme: ‘Happiness Creating Food’
【 Target User 】
● Very particular about food and even more particular about their interests.
● Baby boomers who have finished raising children, double income baby boomers, DINKS
Slow Enjoyment
● Work table
● Corner pantry
● Separated slim storage
Time Together
● S-style Work top
● Counter table
● Flat drawer storage
Work Cleanly
● Self-cleaning range hood
● Meister work top
● Adjustable storage wagon
4. Pr oduc t Str ategy-3/ 3
CLEANLADY Theme: ‘Smiling family faces, growing every day’
Enjoying conversation…
● Swan sink
● Relaxation plan
● Cheerful plan
‘Easily concealable’
● Hanging guard bar &
hanging system
● Vertical sliding storage
Silent, Storage Space
● “Be” Silent sink
● Floor container
● Silent rails
【 Target User 】
● Places importance on the family, the value of life and family communication.
● Primarily parents in their 30s and their children
5. Showr oom Str ategy
Creating areas for users to experience new, grand concepts
【 Heretofore 】
‘Viewing products’ was the most important
【Shinjuku Showroom】
● ‘ Ｓ . Ｓ .’ ‘CLEANLADY’ New product displays
→ New space through user segmentation
● Creating a new ‘Party Space’
→ Users can actually test out the products
● Expansion following the Shinjuku Showroom trial
● Expanding the Kobe Showroom sales corner
● Sales of kitchens goods/organic wines
→ Promoting showroom visits to previous
and new customers
6. Channel Str ategy ① ‘ Water Sec ti on Wor kshop’ Outl i ne
● Bringing in local, popular contractors through a “membership
registration system”.
(Registrations begin Nov. 2006)
● Business development of the “Water Section Workshop” brand.
Successfully bringing in local,
popular businesses capable of
contracting
Building a renovation channel deeply-
rooted in local regions
Str ength ① Str ength ②
Efficient/effective customer
development through effective use of
Cleanup business resources
● Holding renovation events using
Cleanup showrooms
● Backing-up proposal activities
through “Plan-Kan”, training, etc.
6. Channel Str ategy ② ‘ Water Sec ti on Wor kshop’ Pr ogr ess
No. of Registered
‘Water Section Workshop Member Stores’
(As of August 2007)
Approx. 1,100 Stores
No. of Stores Holding
Renovation Seminars 750 Stores
No. of
Renovation Fairs 800 Times
No. of
Mobilized Customers 6,500
(6 month period between Apr. 2007 and Sept. 2007)
■ Changes in the No. of Registered Companies
(Companies)
2006 2007 2008
Planned Registration
Begins Nov. 2006
Current term’s
Goal of 1,200
companies is achievable
6. Channel Str ategy ③ ‘Cl eanup-Desi gn Co., Ltd.’
●
Capabl e of ac c epti ng al l r enovati on r equests, i nc l udi ng ki tc hen/ bathr oom -r el ated.●
Bac ki ng-up the ac ti vi ti es of r egi ster ed “Water Sec ti on Wor kshop” busi nesses wi th ac c um ul ated know-how.● Kitchen/Bathroom Renovations
● “Sick House” Renovations
● Elderly Renovation
● Disaster/Earthquake Resistance
● Security Renovations
● Hobby Renovations, etc.
Primary interim achievements
● Steadily creating information resources such as showrooms,
the Cleanup homepage and specialist magazines.
● Creating a support step for the “Water Section Workshop” based on
our accumulation of detailed response results.
● Renovating “sick houses” using the popular CS Kitchen.
（ Cl eanup Desi gn Co., Ltd. ）
(Established November 2006)
7. Custom er Ser vi c e Str ategy ① “ Sm i l e 20”
20 Year Support Program
Starting “Smile 20”
(From September 2007)
● July 1995, Product Liability Law Enacted
● May 2007, 、 Revised Consumer Product Safety Law Enacted
The direction of societal changes to
protect consumers has become clear.
Social
Background
Continue ‘creating
solid products’.
5 promises and 1 request
Pursuing a system capable
of responding to ‘version
updates’, too.
Working to provide ‘helpful
information’ to improve user
lifestyles.
Working to promote ‘repairs
and replacements’, when
parts are lost, for example.
Aiming for ‘detailed support’
according to the number of
years in use.
Please allow us to create a
‘Customer Chart’ .
→Cleanup Smile Membership
1
2
3
4
5
+1
7. Custom er Ser vi c e Str ategy ② Cl eanup Sm i l e Mem ber shi p
Creating “Cleanup Smile
Members”
【 Applicable Products 】
Ｓ . Ｓ .
CLEANLADY
Aqulia Bath
delivered after Sept. 2007
Regular Inspection Service (Free)
5 ・ 10 ・ 15 ・ 20 Year Intervals
Extended Repair Warranty
A maximum of 5 years
following the start of use.
Annual Fee 3,000 Yen (Inc. Tax)
＊A separate startup fee of 12,000 yen (inc. tax) is required for the CLEANLADY ・Aqulia Bath support programs.
Spot Service
Cleaning ・ Version Updates ・ Renovations ・
Supply Replacements, etc. 10 ％ OFF
Information Provision Service
Information magazines,
notification of regular inspection
periods, service details, etc.
8. Qual i ty Managem ent System
Cleanup subsidiary ‘Cleanup Tecno Service’,
a specialist in residential equipment installation/service, acquired
ISO9001 certification in April 2007.
All production facilities, including the main office
and the shipping subsidiary ‘Cleanup Logistics’
have already acquired certification.
Cleanup has realized a unified quality management system
ranging from development to production,
distribution, installation and service.
＋
Sal es
Techni cal Devel opment
Home Renovati on
Constr ucti on Pr oduct
Devel opment Desi gn
Pr oducti on
Di str i buti on
Mai ntenance Sal es
Pr oposal s
Rel ati onshi p Str engtheni ng
9. “Cr eati on of Hom e Li vi ng Spac e Ser vi c es”
Uni fi ed qual i t y m anagem ent system
Cr eati ng l i fest yl e-sati sf yi ng pr oducts Pr ovi di ng l i fest yl e-sati sf yi ng i nfor m ati on
20 year suppor t pr ogr am
Showrooms are customer
support centers.
