President's Message

In 2023, upon assuming the position of president, I set out "a Global Leading Company" as YKK AP’s vision for "how we seek to be in 2030 and how we ought to be," and we are continuing to take on challenges in line with the YKK Group’s corporate philosophy of the CYCLE OF GOODNESS^® and the YKK AP Purpose.

In FY2024, net sales reached 561.6 billion yen, marking a record high for the fourth consecutive year. However, operating income fell to 18.0 billion yen, down from the previous year, due to factors such as rising material prices and the weak yen. Transforming our organization into one that consistently generates profits remains an urgent task, and in the first two years of the 7th Mid-term Management Plan, which started in FY2025, we will strengthen our earning power by focusing on two areas: "Transform Our Revenue Models" and "Create Value Through Technological Innovation." As profitability improves, we will be able to invest in business growth, and so the latter two years of the plan will see a renewed focus on our vision, "Evolution 2023." The plan for FY2028, the final year of the current plan, is for net sales of 703.9 billion yen and operating income of 38.9 billion yen.

Key to "Transform Our Revenue Models," is a shift toward the renovation and remodeling markets and improving thermal insulation performance. In our domestic business, we will establish a new department specializing in renovation and remodeling, and in the residential sector, we will aim to increase sales of vinyl windows, wooden windows, and aluminum-vinyl composite windows from the perspective of thermal insulation performance. In the thriving Commercial Business, we will expand our lineup of high thermal insulation products for the renovation sector. In addition, orders for aluminum products such as large architectural products and automotive equipment have been increasing in recent years. As such, we will expand our annual aluminum extrusion volume and optimize material composition to improve profitability.

In the overseas business, where previously we targeted Asia’s high-end market, we will also target the mid-price range market, where there is greater demand. A supply system has been established to this end. In North America, we established a manufacturing and sales base in Los Angeles with the aim of expanding our Commercial Architectural Products Business in the western region. In the Residential Architectural Products Business, we are working to expand our sales area in the southern region. In Europe, we established YKK AP Europe in Germany. In addition to expanding our business area, we also aim to further enhance our technical capabilities in order to meet the needs of Europe, which is a region at the forefront of window product technology.
In addition, we will optimize the supply system at manufacturing sites through the use of digital technology for automating and platforming manufacturing lines, thereby strengthening our profitability.

Meanwhile, in terms of "creating value through technological innovation," we will accelerate the development and provision of aluminum profile thermal insulation windows and high thermal insulation curtain walls for commercial buildings. We will also create high value-added products in a wide range of fields, including businesses that contribute to urban greening and the development of Building Integrated Photovoltaics, which utilize the windows and walls of commercial buildings.

The plans outlined here cannot be achieved without human resources. Based on the YKK Group’s "Forest Management" approach, we have identified "human resources" as part of our materiality (a priority issue) with the aim of becoming an organization in which every employee acts with autonomy in harmony with others. By increasing the number of human resources who can take a bird’s-eye view of the entire company, think backwards from the end goal, take initiative in their work, and embrace challenges, we will be able to achieve the "transformation" called for in the 7th Mid-term Management Plan.

We have been able to steadily improve our business performance because we have followed in the footsteps of our predecessors who started the Architectural Products Business, constantly taking on new challenges. Now, more than ever, as tough external conditions continue, we will redouble our spirit of challenge and make steady progress toward becoming a global leading company.

Akira Uozu
President Representative Director, YKK AP Inc.