Presentation
Material:
Announcement of FY2008
Year-End Results
May 14, 2008
Cle a nup
Cor porat ion
Tokyo Stock Exchange,
1
stSection, Code 7955
Net Sales
Operating
Income
Ordinary
Income
Net
Income
Net Income
Per Share
112,811
△ 1,301
△ 1,382
△ 3,078
△ 62.98 yen
122,781
4,139
3,962
1,865
38.17 yen
2007/3
(Actual Results)
126,500
3,400
3,200
1,400
28.64 yen
2008/3
(Initial Plan)
△ 8.1 ％
－ ％
－ ％
－ ％
－ ％
Change From Prev. Period
Compared To Plan
△ 0.3 ％
＋ 7.1 ％
＋ 1.3 ％
＋ 3.8 ％
＋ 3.8 ％
113,200
△ 1,400
△ 1,400
△ 3,200
△ 65.47 yen
2008/3
(Revised Plan)
＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced Jan. 30, 2008
1. Outl i ne of Consol i dated Resul ts for Per i od Ended Mar c h 2008
(Units: millions of yen)
2008/3
(Actual Results)
0
2007/3 2008/3
2. Consol i dated Pr ofi ts ① Net Sal es, Gr oss Pr ofi t
1128.1
76.34
36.46
（ 32.3 ）
（ 67.7 ）
△ 9.97 billion yen
△ 4.38 billion yen
＋ 1.9 ％
△ 5.58 billion yen
●System Kitchens △9,560 million yen ・ＳＳ △4,150 million yen ・CLEANLADY △2,320 million yen
●System Bathrooms ＋110 million yen
●Decrease Due to Decreased Earnings
△6,550 million yen
●Increase Due to Increased Cost of Sales Ratio
＋2,170 million yen
●Worsening SS, CLEANLADY Product Mix＋0.8 points
●Sales Distribution by Category ＋0.4 points
●Worsening Kitchen Product Mix ＋0.2 points
●Increase in Aqulia Cost of Sales Ratio ＋0.3 points
●Worsening Washstand Product Mix ＋0.1 points
●Sales Route Distribution Ratio ＋0.1 points
●Increase in Cost of Raw Materials ＋1.2 points （Unable to be completely absorbed
by product price increases）
●Cost Decrease △0.3 points
●Decrease Due to Decreased Earnings
△3,410 million yen
●Decrease in Gross Profit Ratio △2,170 million yen
【Primary Reasons for Increase/Decrease】
122.78
80.72
42.05
（ 34.3 ）
（ 65.7 ）
(Units: billions of yen) 【Increased/Decreased
Values (Rates)】
Net Sales
Cost of Sales
Cost of Sales Ratio
Gross Profit
2. Consol i dated Pr ofi ts ② SGA Expenses, Oper ati ng Inc om e
-2, 000
2007/3 2008/3
36.46
37.77
△ 1.30
（△ 1.2 ）
（ 33.5 ）
△ 5.58 billion yen
△ 0.14 billion yen
＋ 2.6 ％
△ 5.44 billion yen
●Sales Expenses ＋0.4 points
●Personnel Expenses ＋1.2 points
●Repair Expenses ＋0.1 points
●Depreciation Expenses ＋0.4 points
●Change in Gross Profit △5,580 million yen
●Change in SGA Expenses ＋140 million yen
【Primary Reasons for Increase/Decrease】
●Sales Expenses ＋150 million yen
●Distribution Expenses △660 million yen
●Salaries, Bonuses ＋190 million yen
●Depreciation Expenses ＋230 million yen
42.05
37.92
4.13
（ 3.4 ）
（ 30.9 ）
(Units: billions of yen)
【Increased/Decreased Values (Rates)】
Gross Profit
SGA Expenses
SGA Ratio
Operating Income
3. Sal es Com posi ti on ① By Segm ent (Consol i dated)
2007/3 2008/3 2009/3
98,098 20,288
4,394
94,080 23,015
4,905
87,863 20,244 4,704
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
Other
Bathrooms & Washstands Kitchen Equipment
77.1％ 18.9％
4.0％
122,781
【 2007/3 】
79.9 ％
16.5 ％
3.6 ％
【 2008/3 】
77.9 ％
17.9 ％
4.2 ％
112,811
122,000
(Forecast)
Other
Bathtubs & Washstands
Ki tc hen Equi pment
Other
Bathtubs & Washstands
Ki tc hen Equi pment
(Units: millions of yen)
2005/3 2006/3 2007/3
2008/3 2009/3
0
D i r e c t - S a l e s (Condominium owners)
Housing Constructors
General Routes (Construction Contractors - Home Renovation)
3. Sal es Com posi ti on ② By Sal es Route (Non-Consol i dated)
75.5％ 74.8％
15.0％ 16.2
％
9.5％ 9.0
％
72.9％ 16.9％
10.2％
72.0％ 17.1％ 10.9％
73.9％ 17.3％ 8.8％
(Forecast)
30.35 31.96
5.31 6.77 3.30 3.04
39.73 46.36
0. 0
2007/3 2008/3
4. Consol i dated Bal anc e Sheet Sum m ar y – 1/ 2
86.95
△ 7.05 billion yen
△ 6.63 billion yen
△ 0.26 billion yen
△ 1.61 billion yen
●Decrease Due to Depreciation and Depletion Buildings and Structures △400 million yen Land △110 million yen Software △310 million yen
●Securities Investments △650 million yen
【Primary Reasons for Increase/Decrease】
79.89
●Current Assets △5,440 million yen
●Fixed Assets △1,610 million yen
●Cash and Deposits △2,030 million yen
●Notes and Accounts Receivable
△4,600 million yen
●Decrease in End-of-Period Backorders
●Increase in Negotiable Securities +1,690 million yen (Increase in CP)
＋ 1.45 billion yen
(Units: billions of yen)
【 Assets 】
【Increased/Decreased Values】
Current Assets
Total Assets
Cash and Deposits Notes and Accounts Receivable
Inventory
Other Current Assets
Fixed Assets
4. Consol i dated Bal anc e Sheet Sum m ar y – 2/ 2
55.89 60.59
6.13 4.21
17.86 22.13
0. 0
2007/3 2008/3
86.95
△ 4.27 billion yen
＋ 1.92 billion yen
△ 4.70 billion yen
●Retained Earnings △4,050 million yen
●Unrealized Gain on Securities
△640 million yen
【Primary Reasons for Increase/Decrease】
79.89
●Accounts Payable △360 million yen
●Short-Term Debt △1,500 million yen
●Other Accounts Payable △910 million yen
●Income Taxes Payable △660 million yen
●Sales Taxes Payable △440 million yen
●Long-Term Debt ＋2,080 million yen
●Long-Term Unpaid Obligations
△400 million yen
(Units: billions of yen)
【Liabilities･Minority Interests・ Assets】
【 Increased/Decreased Values 】
Current Liabilities
Long-Term Liabilities
Total Assets
5. Consol i dated Cash Fl ow Statem ent Sum m ar y
3.94 5.82
△ 3 . 4 0
△ 2 . 0 8
△ 0 . 8 7
△ 3 . 2 7
16.30 16.63
-50 0 50 100 150 200
営業活動ＣＦ 投資活動ＣＦ 財務活動ＣＦ 現金及び現金同等物の期末残高
2007/3 2008/3
△ 13.2
△ 3.3
△ 18.8
＋ 24.0
Cash Flow from Operating Activities Cash Flow from Investing Activities
Cash Flow from Financing Activities Term-End Cash & Cash Equivalents Balance
(Units: billions of yen)
6 ． Capi tal Investm ents (Consol i dated)
2007/3 2008/3 2009/3
1.38 3.35
3.59
4.25 5.20
1.42 1.40
4.35 4.67
0.0 20.0 40.0 60.0
R&D Costs
Capital Investment
Deprecation Costs
【Major Capital Investment Details】
FY 2008 Results
FY 2009 Plan
①Dies and Equipment for New Products 1,290 million yen
②Showroom Renovation
2,270 million yen
④Information Investment 680 million yen
①Production-Related 1,780 million yen
②Operations-Related 1,940 million yen
③Information-Related 1,200 million yen
④Others 280 million yen
(Forecast)
(Billions of yen)
7. Outl i ne of Non-Consol i dated Resul ts For Per i od Ended Mar c h 2008
Net Sales
Operating
Income
Ordinary
Income
Net Income
Net Income
Per Share
109,358
△ 1,831
△ 1,484
△ 3,042
△ 62.25 yen
119,582
3,211
3,255
1,438
29.43 yen
123,000
2,700
2,850
1,300
26.60 yen
△ 8.5 ％
－ ％
－ ％
－ ％
－ ％
△ 0.6 ％
△ 14.4 ％
△ 14.2 ％
△ 1.4 ％
△ 1.4 ％
2008/3
(Actual Results)
2007/3
(Actual Results)
2008/3
(Initial Plan)
Change From Prev. Period
Compared To Plan
2008/3
(Revised Plan)
110,000
△ 1,600
△ 1,300
△ 3,000
△ 61.38 yen
(Units: millions of yen)
＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced Jan. 30, 2008
8. Non-Consol i dated Sal es Com posi ti on By Segm ent
2007/3 2008/3 2009/3
88,167 15,197
5,093 1,834 9,292
84,090 17,625
5,390 1,940 9,455
77,957 15,288
4,956 1,898 9,259
0 20,000 40,000 60,000 80,000 100,000 120,000
Kitchen Equipment Bathrooms
Washstands Industrial Kitchen Equipment Other
【 2007/3 】
73.7％ 12.7％
【 2008/3 】
71.0％ 14.9％ 4.5％ 1.6％ 8.0％
4.3％
71.3％ 14.0％
4. 5％
7.8％ 1.5％
8.5％ 1.7％
119,582
109,358
118,500
(millions of yen)
(Forecast)
Ki tchen Equi pment Bathr ooms
Other
Washstands Industr i al Ki tchen
Equi pment
Ki tchen Equi pment Bathr ooms
Other
Washstands Industr i al Ki tchen
Equi pment
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 1/ 4
67.6
74.2
83.4 82.7 82.1
72.5
78.3 205 186.5 211.5
206 207 184
165
0 20 40 60 80 100
03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 50 100 150 200 250 300 Monetary Value
Volume
1,049
1,131 1,186 1,181 1,247 1,228
15.7 16.3
17.4 17.5 17.0
15.2
0 200 400 600 800 1,000 1,200 1,400
03/3 04/3 05/3 06/3 07/3 08/3 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Demand Volume
Cleanup Share （％）
Complete System Kitchen Sales Results Demand Trends and Market Share
(Planned)
(Billions of yen)
(Thousands of Sets) (Thousands of Sets)
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 2/ 4
7.7
7.2
6.5 6.2 6.1
5.5 5.8 85 81
74 73 75
65 68
0 2 4 6 8 10
03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 30 60 90 120 150 Monetary Value
Volume
589
547 559 546
515
438
14.7 13.4 14.5
13.3 14.4 14.8
0 200 400 600 800
03/3 04/3 05/3 06/3 07/3 08/3 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Demand Volume
Cleanup Share
（％）
Sectional System Kitchen Sales Results Demand Trends and Market Share
(Billions of yen) (Thousands of Sets) (Thousands of Sets)
(Planned)
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 3/ 4
15.2 16.3 15.9 15.1 14.8 14.9
17.4
35 32 30.5
33 32 35
32
0 5 10 15 20
03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 10 20 30 40 50 Monetary Value
Volume
608 645
667
770
718 767
4.2 4.2 4.2
4.9 5.2 5.4
0 200 400 600 800 1,000
03/3 04/3 05/3 06/3 07/3 08/3 0.0 2.0 4.0 6.0 8.0 10.0 Demand Volume
Cleanup Share
（％）
(Planned)
(Billions of yen)
(Thousands of Sets)
Modular System Bathroom Sales Results Demand Trends and Market Share
(Thousands of Sets)
Note) Total number of companies increased from 11 to 15 from FY2005
1,730 1,813 1,786 1,844 1,834 1,750
5.3 5.2 5.5 5.4
5.3 5.7
0 400 800 1,200 1,600 2,000 2,400
03/3 04/3 05/3 06/3 07/3 08/3 0.0 2.0 4.0 6.0 8.0 10.0 Demand Volume
Cleanup Share
9. Sal es Resul ts For Maj or Pr oduc ts and Cl eanup Mar ket Shar e - 4/ 4
5.1 5.3 5.3 5.2 5.1 5.0 5.4
98 96 91
99 100 103
92
0 1 2 3 4 5 6 7
03/3 04/3 05/3 06/3 07/3 08/3 09/3 0 30 60 90 120 150 Monetary Value
Volume
（％）
Washstands/Vanities Demand Trends and Market Share
(Billions of yen) (Thousands of Sets) (Thousands of Sets)
(Planned)
10. Showr oom s And Vi si tor Num ber s
85 87
95 101 104
107 109 109 109
456 503
255
314
380
450
480 495
460
0 40 80 120 160 200 240
01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3
0 100 200 300 400 500 600 Number of Showrooms
Number of Visitors
(Locations) (Thousands of groups)
(Planned)
11. For ec asted Consol i dated Resul ts For The Per i od Endi ng Mar c h 2009
112,811
△ 1,301
△ 1,382
△ 3,078
2008/3
(Actual Results)
122,000
1,700
1,600
800
2009/3
(Plan)
＋ 8.1 ％
－ ％
－ ％
－ ％
Change From Prev. Period
△ 1.2 ％
△ 1.2 ％
△ 2.7 ％
1.4 ％
1.3 ％
0.7 ％
-
-
-
Operating Income
Ordinary Income
Net Sales
Operating Income Margin
Ordinary Income Margin
Net Income
Net Income Margin
(Units: millions of yen)
12. For ec asted Non-Consol i dated Resul ts For The Per i od Endi ng Mar c h 2009
109,358
△ 1,831
△ 1,484
△ 3,042
2008/3
(Actual Results)
118,500
1,250
1,300
700
2009/3
(Plan)
＋ 8.4 ％
－ ％
－ ％
－ ％
Change From Prev. Period
△ 1.7 ％
△ 1.4 ％
△ 2.8 ％
1.1 ％
1.1 ％
0.6 ％
-
-
-
Operating Income
Ordinary Income
Net Sales
Operating Income Margin
Ordinary Income Margin
Net Income
Net Income Margin
(Units: millions of yen)
Stagnati ng Renovati on Demand
Wor seni ng Housi ng Mar ket
1. Busi ness Envi r onm ent
Inc r eased Feel i ngs of Unc er tai nt y i n the Futur e
●Sense of recession in international and domestic economies (effects of US subprime loan problems, rising cost of oil, etc.)
●Concern over “government-induced recession” (effects of pension problems, health insurance problems, etc.)
Wi despr ead tendenc y among c onsumer s to del ay pur c hases
【 System Ki tc hens 】
● Ongoing stagnation in luxury products
● Prevalence of high-value-added products in purchasing/consumers
shifting to mid-class products
2. Over al l Futur e Str ategy
Focus on Base Bui l di ng (Establ i sh Foothol d)
● “The Ki tc hen Company”
～ Creating a product lineup and system, in our role as the leading company in kitchen-
related goods, suited to the needs of a new age and the business environment.
● Rec onstr uc ti on of the busi ness pr oc ess
～ Undertaking a complete review of the business process with a focus on keywords such as
“efficiency”, “speed” and “uniformity”.
Conti nue Wor ki ng fr om a Medi um-Ter m Vi ewpoi nt
● Constant str engtheni ng of food/ housi ng c ommuni c ati on
～ Increasing the Cleanup brand value and building medium-term kitchen demand by proposing
a new kitchen culture.
1
2
3. “The Ki tc hen Com pany” ① Pr oduc t Li neup
Pr oduc t Li neup
Establ i shi ng Cl eanup’s posi ti on as “The Ki tchen Com pany” by m aki ng hi gh-qual i t y pr oposal s - i n l i fe, functi on and m ater i al s - to a br oad spectr um of soci et y thr ough our cr eati on pr ocess.
High-Value-Added Products
Widespread Products
Low Price High Price
Luxury System Kitchen
“S.S.”
“S.S. Light Package”
Mid/High-Quality System Kitchen
“CLEANLADY”
Popular System Kitchen
“RAKUERA”
Company System Kitchen
“COLTY”
Full MC Sept 2007
On sale May 2008
New colors added June 2007
On Sale March 2008
Full MC Sept 2007
Our standard brand as “The Kitchen Company” A model allowing consumers to
experience the beauty of stainless at a reasonable price.
A branded product allowing consumers to experience Cleanup’s high-quality.
Products aimed at customers who want both financial savings and added value. Highly functional, stylish, product
designed for urban life with limited space.
【 New Pr oduc t Intr oduc ti ons 】 1) “ S.S. Ser vo”
“S.S. Ser vo”, Japan’s fi r st m otor -assi sted ki tchen dr awer s,
open wi th a si ngl e touc h.
(On sal e Febr uar y 1)Even if your hands are full, wet or dirty, drawers will easily open with just a slight touch from your knees or hip.
【 New Pr oduc t Intr oduc ti ons 】 2) “ S.S. Li ght Pac kage”
A new pr oduc t l i ne i nfused wi th a c ondensed S.S. essenc e
A si m pl e r eal i zati on of the
essence of the ki tchen
Stainless, the best material for
kitchens
●
18-8 Stainless (SUS304)
S.S. Servo
●
Drawers open/close with a
push/pull
Worktop Width Only
●Ｉ
-Model Ｗ： 2700, 2550
【 New Pr oduc t Intr oduc ti ons 】 3) “ RAKUERA”
“RAKUERA”, a new br and of the wi despr ead system ki tchen.
(On sal e fr om Mar ch 31)
【Design】 Sleek design
【Function】
Standard equipment includes lockable knife storage to protect children and storage for dish towels, etc.
【Diversity】
Based upon the grand concept of
“happiness bringing forth
‘delicious’ time”, many layout plans are available to match a broad variety of customer lifestyles.
3. “ The Ki tc hen Com pany” ② System s
Sal es System
Ser vi c e System
● Str engthen devel opment of the
“Water Sec ti on Wor kshop”
Using currently-existing channels and promoting
new business models
● Str engthen “showr oom” func ti ons
Creating Cleanup fans via showrooms and sparking real demand
● “ Smi l e 20”, a 20-year suppor t pr ogr am
Fulfilling our social responsibilities
as a leading company
● “ Cl eanup Smi l e Member s”
Improving customer satisfaction and cultivating
“Cleanup” brand loyalty
【 Water Sec ti on Wor kshop 】
■
Trends in the No. of Registered Companies
(Companies)
2006 2007
Registrations Began Nov. 2006
2008
The num ber of r egi ster ed
“Water Secti on Wor kshop Mem ber Stor es” total appr oxi m atel y 1,100
(as of Apr i l 2008)
No. of stores holding
renovation seminars 9 9 5 stor es
No. of renovation
fairs held 1,044 fai r s
Customer attendance 22,000
gr oups
(The year from April 2007 to March 2008)
【 Cl eanup Sm i l e Mem ber shi p 】
“Cl eanup Sm i l e Mem ber ”
pr ogr am ki c ked off i n Sept . 2007
【
No. of Mem ber Contr acts】
Appr ox. 2,000 m em ber s(As of Apr i l 2008)
S.S., CLEANLADY, Aqulia Bath products delivered after Sept. 2007
Applicable Products
● Public relations using the “Pika Pika Primer”
(published Nov. 2007), a guide to product care.
● Strengthening product
announcements in the future
through various media
development, such as
・ Showrooms
・ Home pages, etc.
Si m ul taneousl y i nc r easi ng busi ness speed and r educ i ng c osts
4. Busi ness Pr oc ess Rec onstr uc ti on –1/ 2
① A r evol uti on i n the CAD desi gn envi r onment thr ough
i nfor mati on/ IT system i nvestments
●
Establish a system capable of outsourcing to work-at-home contractors
●Effective use of talented staff, beginning with Cleanup’s senior members
② “Ki tc hen Di vi si on” Reor gani zati on
【 Previously 】 Composed of separate organizations divided by function,
such as development, production, etc.
【Currently】
Promoting unified operations within the “Kitchen Division” from development to
production.
Cl ar i f yi ng r esponsi bi l i ti es, c l ar i f yi ng “oper ati ng r evenues”
A m or e effi c i ent di str i buti on busi ness for the Cl eanup Gr oup
4. Busi ness Pr oc ess Rec onstr uc ti on –2/ 2
③ Near c om pl eti on of the Cl eanup Gr oup’s l ogi sti c s r eor gani zati on
●
Cleanup Logistics Co. merged with Cleanup Transportation Co. on April 1, 2008.
Cleanup Transportation Co. established
Cleanup Logistics Co. established as a non-asset(business model without Cleanup assets such as distribution centers, vehicles, etc.)
Cleanup Transportation Co. merged with Tokyo Transportation and Storage Service Ltd.
Cleanup Transportation Co. merged with Cleanup Okayama Transportation Co.
Aug 1969
Oct 2002
Nov 2002
Jan 2006
Apr 2008 Cleanup Logistics Co. merged with Cleanup Transportation Co.
【History of the Reorganization of Distribution Subsidiaries】
5. Constant Str engtheni ng of Food/ Housi ng Com m uni c ati on
Product creation for
satisfying lifestyles
【 Keyword 】
Satisfying Lifestyle Proposals
Information delivery
for satisfying lifestyles
Pursuing..
Ai mi ng, as “The Ki tc hen Company”, to r edefi ne the ki tc hen as an
i mpor tant pl ac e for the fami l y over the medi um ter m by evoki ng the
“di etar y educ ati on” of Japan, and to c r eate futur e demand and
i nc r ease Cl eanup br and val ue
6. Other Effor ts 1) Expansi on of the Sani tar y Busi ness
System Bathr oom “Aqul i a Bath”
Washstand “S”
●
Positively rated on safety, technology and
environmental issues, in addition to design, and
received a Good Design Award
●
Added motor module compatible models (Feb. 1,
2008 ～ )
●
The only stainless steel washstand in the world
●
Added new functions/new models (Feb. 1, 2008 ～ )
Increasing market
share through the
ordinary route, and
expanding sales of
bathrooms,
washstands, and
storage to house
manufacturers and
the end user division
6. Other Effor ts 2) CSR-Rel ated
“ Cl eanup Hear tful Co. Ltd.”
February 8, 2008
Established as part of Cleanup’s CSR mission and for the purpose of
creating employment opportunities for the disabled.
March 14, 2008
Received approval from the Minister of Health, Labour and Welfare as
a preferential subsidiary based on the Law Concerning the Promotion
of Employment of Disabled Persons. A notice of approval as a
preferential subsidiary was received from the Chief of the Adachi
Public Employment Security Office.
7. Cr eati on of Hom e Li vi ng Spac e Ser vi c es
【 Cleanup 】 【 Customer Homes 】
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
Creating Attractive Products
Providing Safe, Reliable Services
Showrooms are customer
support centers.
Establ i shm ent of busi ness str uctur e focusi ng on “Custom er Rel ati ons” and devel opi ng i nter nal system s.
● Developing production, distribution, construction & service bases
● Reforming internal systems/creating a showroom system
Issues Pr om oted Thus Far
