The 6th Mid-term Management Plan

In FY2023, domestic demand for energy-saving renovations increased due to the 3-ministry subsidy scheme, and sales of remodeling products, such as vinyl inner windows and products for commercial buildings, grew substantially. Overseas, meanwhile, performance was particularly strong in China, Taiwan, and Indonesia. As a result, net sales totaled 538.1 billion yen (105.8% of the previous year's), a record high for the third consecutive year, and operating income was 25.6 billion yen (143.5% of the previous year's). In FY2024, the final year of the mid-term management plan, the company will work on priority measures based on its Business Policy. In Japan, this will involve promoting higher thermal insulation performance and higher added value in the Residential and Commercial businesses, as well as enhancing thermal insulation proposals using the ongoing 3-ministry subsidy scheme. Overseas, in North America, we will strengthen our manufacturing and supply system by establishing a new site for manufacturing commercial architectural products and operating a new vinyl window plant, and in Asia, we will work to build a foundation for the Curtain Wall (below, "CW") Business, centered on YHS International and Siam Metal in Thailand. Planned net sales and operating income are 577.9 billion yen (107.0% of the previous year's) and 27.6 billion yen (110.3% of the previous year's), respectively.

In order to further grow our business both domestically and internationally, we have drawn up a record-breaking investment plan for the 6th Mid-term Management Plan. With respect to capital investment plans, in addition to investments necessary for business continuity, such as for replacement of aging equipment and health and safety reasons, we will advance aggressive production expansion and rationalization investments where the expected returns ensure the investment's rationality.

In FY2024, we plan to invest a total of 37.5 billion yen. In Japan, this will be focused on production increases, support for new products, digital-related activities, streamlining support, and infrastructure consolidation, and overseas, on production increases and streamlining support in Indonesia and India.