President's Message

In April 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 together with mid-level and young employees, developed the "Evolution 2030" vision to make it a reality. The goal is to become a global leading company based on the three pillars of "Contribute to the Global Environment," "Create New Value for Our Customers," and "Prioritize Employee Well-Being and Engagement." At the end of this first fiscal year, I feel that the path to realizing this goal is coming into sight.

My definition of a "global leading company" is one that can reach number one in terms of sales in windows and curtain walls (below, "CW"). To this end, in July 2024, we finally launched our range of wooden windows, which offer excellent thermal insulation and aesthetic appeal. In addition, we will also launch the EXIMA 55 aluminum-vinyl composite window, a product for giving commercial buildings higher thermal insulation performance, in FY2024. These products will advance the adoption of higher thermal insulation products for windows and doors, and fulfil our goal of "Create New Value for Our Customers."

FY2023 ended with an increase in both sales and income, with net sales rising 5.8% from the previous fiscal year to 538.1 billion yen and operating income rising 43.5% to 25.6 billion yen. However, we still face many risks, including a decline in the number of new construction starts for residential and commercial buildings in Japan, a slowdown in the exteriors market, the continued depreciation of the yen and high material prices, and the shrinking architectural product and housing markets in North America and China.

To address these risks, we will focus on the business of home extensions, commercial building renovations, and garden exteriors, all of which are expected to grow in Japan. We have already established new lines for remodeling products at three production sites in Japan to strengthen our production capacity and competitiveness.

To address the "2024 Problem" in logistics facing society, in October 2023 we opened the Tokyo Metropolitan Area DC (Distribution Center), a logistics site that will enable us to shorten the time drivers are on duty by changing inventory management and transportation methods, and to efficiently sort goods through the introduction of shelf-transporting robots.

In terms of handling overseas markets, we will work to expand our CW business in Asia, having welcomed Thai CW manufacturers YHS International and Siam Metal to the Group in December 2023. In the U.S., we have made efforts to boost orders by putting a new vinyl window plant into operation in December 2023. In China, we will launch products in the growing mid-price range market.

In terms of "Prioritize Employee Well-Being and Engagement," one of the pillars of "Evolution 2030," we are proceeding with the automation of our factories. Having employees take on the responsibility of machine maintenance means that there will be more opportunities for women and seniors than ever before. We also support our employees' career development by providing career training for each age group.

In terms of "Contribute to the Global Environment," we are working on the establishment of a procurement scheme for recycled aluminum materials from the market, utilization of green aluminum, and 100% recycling of vinyl scraps from company products, and we are also researching technology to collect external products from the market through industry-academia-government collaboration.

In FY2024 and beyond, we will continue to aggressively develop the market and take on the challenge of becoming a global leading company.

YKK AP Inc. President Representative Director
Akira Uozu