The 6th Mid-term Management Plan

The 6th Mid-term Management Plan, which began in FY2021, takes as its core the purpose "We Build a Better Society Through Architectural Products." The 6th Mid-term Business Policy, "Providing Social Value through Products and Realizing Manufacturing Reform," has been developed as a policy to fulfill this purpose.

In FY2022, we achieved net sales of 508.6 billion yen, a record high for the second year in a row, thanks to the promotion of high thermal insulation windows and strengthening of proposals in the commercial building renovation field in Japan, as well as significant growth both in Japan and overseas, especially in architectural products for commercial buildings in North America. Operating income was affected by surging material prices and higher SG&A expenses in Japan, but increased sales and price revisions overseas led to an overall increase.

In Japan in FY2023, we will enhance production equipment for remodeling products and glass, for which demand is expected to rise due to the three ministry-supported subsidy scheme. In the commercial business, we will further strengthen our competitiveness in the Tokyo metropolitan area by commencing operations at the new Saitama Factory building. In North America, we will strengthen our production and supply systems by establishing supply bases for architectural products for commercial buildings and commencing operations at a new factory producing vinyl windows for residential use.

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 plan to advance aggressive production expansion and rationalization investments where the expected returns ensure the investment's rationality.

In FY2023, we plan to invest a record 50.3 billion yen. In Japan, this will mainly be allocated to increased production, new product support, and digital-related activities, and overseas, for construction of a new plant in the U.S.A., with the aim of achieving sustainable business growth and early generation of investment benefits.