“To create smiles from the kitchen”

Presentation Material:

Announcement of FY 2013 Year-End Results
May 19, 20140

“To create smiles from the kitchen”

Ⅰ. Results Outline

11. Outline of Consolidated Results for Period Ended March 2014
(Units: millions of yen)

2014/3

2013/3(Actual Results) (Actual Results)

Change From
Prev. Period

2014/3

2013/3(Initial Forecast
11/7)(Revised Forecast
2/6)Compared
To Revised Plan
2/6

Net Sales

128,785

113,533

13.4％

121,500

123,600

4.2％

Operating
Income

8,873

4,755

86.6％

5,800

7,400

19.9％

Ordinary
Income

8,470

4,372

93.7％

5,500

7,000

21.0％

Net Income

4,970

2,506

98.3％

3,000

4,100

21.2％

106.68yen

53.79yen

98.3％

64.39yen

88.00円21.2％

Net Income
Per Share＊Initial Forecast 11/7: Announced November 7, 2013
＊Revised Forecast 2/6: Announced February 6, 20142

2. Consolidated Profits (1) Net Sales, Gross Profit【Increased/Decreased Values (Rates)】(Units: billions of yen)

128.78113.53

Net Sales＋15.25 billion yen

74.77

83.73

Cost of Sales（65.9）（65.0）＋8.96 billion yen

45.05(34.1)(35.0)

2014/3＋11,970 million yen＋290 million yen＋6,160 million yen＋2,660 million yen＋1,840 million yen●Increase Due to Increased Earnings＋10,050 million yen●Decrease Due to Decreased Cost of Sales Ratio△1,090 million yen△0.9％

Gross Profit●Increase Due to Increased in Net Sales

0

2013/3● System Kitchens
・Ｓ．Ｓ．
・CLEANLADY・RAKUERA●System Bathrooms●Decrease in S.S., CLEANLADY Cost Ratio△0.4 points●Decrease in RAKUERA Cost Ratio△0.3 points●Decrease in System Bathrooms Cost Ratio△0.1 points●Sales Route Distribution Ratio＋0.3 points●Cost Decrease△0.4 points

Cost of Sales Ratio

38.75【Main Increase/Decrease Factors】＋6.3 billion yen●Increase in Gross Profit Ratio＋5,210 million yen＋1,090 million yen
32. Consolidated Profits (2) SGA Expenses, Operating Income【Increased/Decreased Values (Rates)】(Units: billions of yen)

45.05

Gross Profit＋6.30 billion yen

38.75
38, 000

SGA Expenses

34.00

36.18

（30.0）（28.1）
28.1＋2.18 billion yen

SGA Ratio

18, 000△1.9％-2, 000【 Main Increase/Decrease Factors 】

4.75

8.87

（4.2）

（6.9）

2013/3

2014/3Operating Income●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses△ 170 million yen＋ 590 million yen＋ 890 million yen＋ 840 million yen(Depreciation, Repair Expenses, Sales Commission, etc.)●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses△ 0.4 points△ 0.3 points△ 0.8 points△ 0.4 points●Increase in Gross profit●Change in SGA Expenses＋ 6,300 million yen△ 2,180 million yen＋4.12 billion yen
43. Sales Composition (1) By Segment (Consolidated)

Kitchen Equipment(Units: millions of yen)

113,533

120,000

4,991

Bathtubs & Washstands

Other

128,785

127,000

6,183

5,634

23,332

23,256 4.4％

21,257100,000【2014/3】

Other

Bathtubs &Washstands

18.3％

4.8％

18.1％
77.1％
Kitchen Equipment

80,00060,00099,270【2013/3】

98,11087,285

77.3％

Other

40,000Bathtubs &Washstands

20,000

4.4％

18.7％
76.9％
Kitchen Equipment0

2013/3

2014/3

2015/3(Forecast)5

3. Sales Composition (2) By Sales Route (Non-Consolidated)

4.4％
5.7％
Direct-S ales(Con domin iu m own ers)
Hou sin g Con stru ctors

15.7％

6.0％

3.8％

4.2％

15.6％

15.4％

80.6％

80.4％

15.3％

14.9％

G en eral R ou tes(Con stru ction Con tractors - Home R en ovation )

78.6％

79.1％

80.3％

0

2011/3

2012/3

2015/3
2013/3 2014/3 (Forecast)6

4. Consolidated Balance Sheet Summary – 1/2【Assets】【Increased/Decreased Values (Rates)】【Main Increase/Decrease Factors】(Units: billions of yen)

95.93

Total Assets＋10.04 billion yen

85.89

Current Assets

60.99
52.08

Cash and Deposits
Notes and Accounts Receivable
Electronically Recorded
Monetary Claims●Current Assets●Fixed Assets＋888 million yen＋116 million yen●Cash and Deposits＋462 million yen●Notes and Accounts Receivable＋236 million yen●Electronically Recorded
Monetary Claims+ 193 million yen＋8.91 billion yen●Increase in Commercial Products, Raw Materials
Inventory
1.94
4.81

2.14
4.58

＋0.20 billion yen
Other Current Assets●Decrease in Securities●Increase in Deferred Tax Assets△0.23 billion yen
27.04

28.20

2014/3＋330 million yen

Fixed Assets＋1.16 billion yen
2013/3△690million yen●Tangible Fixed Assets●Intangible Fixed Assets●Securities Investments＋1,110 million yen＋280 million yen△230 million yen

74. Consolidated Balance Sheet Summary – 2/2【Liabilities / Net assets】(Units: billions of yen)

【 Increased/Decreased Values 】【Primary Reasons for Increase/Decrease】

95.93

100

85.89
29.82

Current Liabilities＋7.73 billion yen

22.09●Trade Accounts Payable,
Other Accounts Payable●Income Tax Payable,●Short-Term Loans Payable＋3,430 million yen＋2,530 million yen＋1,500 million yen

5.48

Long-Term Liabilities

7.76△2.28 billion yen

50△1,590 million yen●Long-Term Loans Payable●Provision for retirement benefits△1,790 million yen●Net Defined Benefit Obligations＋1,080 million yen

56.03

60.62

Total Net Assets＋4.59 billion yen＋4,970 million yen●Net Income△930 million yen●Dividends●Valuation difference on available-for-sale＋170 million yen
securities●Remeasurements of defined benefit plans＋330 million yen

0

2013/3

2014/38

5. Consolidated Cash Flow Statement Summary(Units: billions of yen)

Cash Flow from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

Year-End Cash & Cash Equivalents Balance

35. 0031.32
30. 00

27.20

＋41.2

25. 00

20. 00

15. 00

8.60

10. 00

7.30

＋13.0

5. 00

0. 00

＋17.8
△ 5. 00△ 3.44 △ 2.92

2013/3＋0.5△ 1.13△ 3.392014/39

6. Capital Investments (Consolidated)
R&D Costs

Capital Investment

Deprecation Costs(Units: billions of yen)

【Major Capital Investment Details】

7.28

FY 2013 Results

6.0① Production-Related

5.00
5.0

1,870 million yen② Showroom Renovation 1,650 million yen

4.50③ Information Investment 1,040 million yen
4.0

3.60

③ Others

440 million yen

3.12
2.77

3.0

FY 2014 Plan

2.0

1.02

1.10

1.10

① Production-Related

3,610 million yen② Operations-Related

2,020 million yen③ Information-Related

1,360 million yen

1.0④ Others

0.0

2013/3

2014/3290 million yen

2015/3(Forecast)10

7. Outline of Non-Consolidated Results for Period Ended March 2014

(Units: millions of yen)

2014/3

2013/3(Actual Results)(Actual Results)

Change From
Prev. Period

Net Sales

123,276

109,127

13.0％

Operating
Income

7,959

3,905

103.8％

Ordinary
Income

7,925

3,822

107.4％Net Income

4,792

2,243

113.6％Net Income
Per Share

102.86yen

48.15yen

113.6％
11

8. Non-Consolidated Sales Composition By Segment

Kitchen Equipment

Bathrooms(Units: millions of yen)

120,000

100,000

Washstands

Industrial Kitchen Equipment

123,276

121,800

109,127

5,467
847
5,390

5,334
830
5,268

5,488
770
5,140

17,942

17,988

Other

4.4％
0.7％
4.3％
14.8％

【2014/3】
Industrial Kitchen
Equipment 0.7％
Washstands

Other

4.5％

4.4％
KitchenEquipment

14.5％
Bathrooms

75.9％

16,11780,000【2013/3】

60,00093,59092,38081,61240,00075.8％

Industrial Kitchen
Equipment 0.7％
Washstands
Bathrooms

5.0％

4.7％

14.8％
20,000

Other

KitchenEquipment

74.8％

0

2013/3

2014/3

2015/3(Forecast)12

9. Sales Results For Major Products and Cleanup Market Share - 1/4

Complete System Kitchen Sales Results
Monetary Value(Units: billions of yen)

Volume100.0

Demand Trends and Market Share
Demand Volume
Cleanup Share(Thousands of Sets) (Thousands of Sets)

400

1,400

（％）

30.0

89.2 88.3

1,227
1,200

77.3

80.0

70.8
64.4 66.2

300

69.7
244

1,091 1,121
975

1,000

20.0

19.4

800

217
173 166

181

25.0

1,019

244

60.0

40.0

1,138

17.1

200

195

600

17.8

19.9

17.9
15.0

15.2

10.0
400

100
20.0

5.0

200

0.0

0

09/3 10/3 11/3 12/3 13/3 14/3 15/3

0

0.0

09/3

10/3

11/3

12/3

13/3

14/3

（Forecast）

13

9. Sales Results For Major Products and Cleanup Market Share - 2/4

Sectional System Kitchen Sales Results
Monetary Value(Units: billions of yen)

6.0

Demand Volume
Cleanup Share(Thousands of Sets) (Thousands of Sets)

120

Volume5.0

Demand Trends and Market Share
450

402

5.1

419

400
378

4.8
4.3

4.35

（％）

30.0

365

370

360

4.1

25.0

90
20.0

4.0

3.4
67
61

270

66

67

60

18.0

17.8

63

60

15.1

15.0

14.9

180

52

18.1

12.5

2.0

10.0

30
90

0.0

0

09/3

10/3

11/3

12/3

13/3

14/3

15/3

5.0

0

0.0

09/3

10/3

11/3

12/3

13/3

14/3

（Forecast）

14

9. Sales Results For Major Products and Cleanup Market Share - 3/4

Modular System Bathroom Sales Results
Monetary Value(Units: billions of yen)

20.0

Demand Trends and Market Share(Thousands of Sets) (Thousands of Sets)

50

Volume1,000

Demand Volume（％）

Cleanup Share

10.0

17.7 17.7
15.8
15.0

14.5

14.1
12.7 12.9

839
43

43

40

695

38

35
30

30

800

656

688

731

600

6.0

30
27

10.0

8.0

745

4.8

5.1

5.1

20

400

10

200

2.0

0

0

0.0

4.3

4.0

4.0

4.3

5.0

0.0

09/3

10/3

11/3

12/3

13/3

14/3

15/3

09/3

10/3

11/3

12/3

13/3

14/3

（Forecast）

15

9. Sales Results For Major Products and Cleanup Market Share - 4/4

Washstands/Vanities
Monetary Value
Volume(Units: billions of yen)

6.0

Demand Trends and Market Share
150

5.4
5.1
5.0

4.7

4.5

4.7

109
91

91

98

2,000

（％）

10.0

1,828

5.3
1,637

4.7

4.0

Demand Volume
Cleanup Share(Thousands of Sets) (Thousands of Sets)

120

1,600

1,494 1,521

90

1,200

6.4

1609

1,655
8.0

109 107

99

6.1

6.2

6.6

5.6

3.0

6.0

6.0

60

800

4.0

30

400

2.0

0

0

0.0

2.0

1.0

0.0

09/3

10/3

11/3

12/3

13/3

14/3

15/3

09/3

10/3

11/3

12/3

13/3

14/3

（Forecast）

16

10. Showrooms And Visitor Numbers(Locations)

240

Number of Showrooms(Thousands of groups)

Number of Visitors

550

539
200

510

495
460

456

451

444

448

471

500

160

120

600

400

107

109

109

105

105

300

102

102

102

102

101

80

200

40

100

0

0

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3
（Forecast）

17

11. Forecasted Consolidated Results For The Period Ending March 2015
(Units: millions of yen)

2014/3

2015/3(Actual Results)（Forecast）

Change From
Prev. Period

Net Sales

128,785

127,000△1.4％

Operating
Income

8,873

6,700

△24.5％

Operating Income
Margin

6.9％

5.3％

-

Ordinary
Income

8,470

6,400

△24.4％

Ordinary Income
Margin

6.6％

5.0％

-

Net Income

4,970

3,700

△26.6％Net Income
Margin

3.9％

2.9％

18

“To create smiles from the kitchen”

Ⅱ．Results from this term andthe outlook from now on

19

1. Management Environment
New housing starts (units)
新設住宅着工戸数(Units)（千戸）

YOY comparison(%)
前年同月比

（％）

100

60.0

89
84
80

74
70

73

75

84
80

78

78

76

74

69

69

85

90

91

90

84

80

78

71

40.0

70

69

25.2
60

15.5

19.4

7.3
10.3 9.3

15.3

10.3 10.0
-5.5

40

20.0

14.5

5.0

-0.2

14.1

12.4
8.8

5.8

3.0

18.0
12.3

7.1

0.0

1.0

-2.9

-9.6
20

-20.0

0

-40.0

4

5

2012

6

7

8

9

10

11

12

1

2

3

4

5

6

7

2013

＊Ministry of Land, Infrastructure, Transport and Tourism Monthly Economic Construction Statistics, Building Starts

8

9

10

11

12

1

2

3

2014
20

2. Management Policies for the Period Ending March 2014
Period Ending March 2014 Management Policies

Firmly establish “The Kitchen Company”① Increase market share of mid- and high-level system kitchens
centered on the CLEANLADY② Increase the speed of renovation measures③ Improve overall showroom competitiveness④ Deepen and develop CPS improvement activities⑤ Improve total product quality and decrease total costs⑥ Strategically promote overseas business⑦ Create personnel environment that leverages workplace capabilities213. Important Measures

Firmly establish “The Kitchen Company”
Production
power
Sales
capabilities
Improved overall showroom
competitiveness forcomprehensive renovation plans

Reorganize/strengthen
production system

Product
appealBrand
power
Overseasbusiness
capabilities

Strengthening
the brand

Developmentin Asia

Technical development ofdifferentiated products thatis only possible by aspecialist manufacturer

CSR activities

Realization of “The Kitchen Company”
22

4 .“Production Capabilities”●The deepening and evolution of craftsmanship

ＣＰＳ
Cleanup Production System（Order Production System）

We
provide:Distribution
Installation

Production

Sales

The pursuit of “total optimization”

What they want
When they want it
How they want it

Customer Satisfaction● Improve western Japan's production system
岡山工場

The self-completing production of a system kitchen is carried out inthe western Japan district in order to produce and deliver products inan efficient and timely manner.

三笠

帯広

函館

青森

盛岡

秋田

Tsuyama Factory

釧路

Expand

酒田
仙台
山形
新潟

Expanded production line-up of
kitchen counters

長岡

Tsuyama / Okayama
Factory

更埴

東松山

岐阜
神戸

広島

名古屋
静岡

北九州

福山

四日市

門真
高松

岡崎

江戸川
相模原

草津

防府
福岡

さいたま

甲府
姫路

Okayama Factory

水戸
水海道
塩尻

岡山

Improve production
capabilities

伊勢崎

福井
福知山

安来

Iwaki Business Office(7 factories)

郡山

宇都宮

金沢

川崎

千葉

沼津

浜松

天理

佐世保
和歌山

佐賀
松山

Increase production of kitchencabinets

長崎

熊本

延岡

都城
鹿児島

23

5. Measures to Enhance Product Appeal (1) Product Lineup

Craftsmanship Leveraging the Strengths of a Specialist Manufacturer【Renewal Schedule】● “S.S”(functional enhancementin December)

High-Value-Added Products＊ Other than the above, models will be updated for:A model allowing consumers toexperience the beauty of stainless at
a reasonable price.

Our standard brand as “TheKitchen Company”

Luxury System Kitchen● System bathroom “yuasis”● Bathroom vanity “Tiaris” and “S”“S.S. Light Package”“CLEANLADY”
Complete model updatein the previous period

Popular System Kitchen

The first stainless steelcabinet in the mid-level class.

“RAKUERA”“COLTY”
Highly functional, stylish, productdesigned for urban life with limited
space.

High Price

Low Price

Mid/High-Quality System Kitchen

Company System Kitchen“S.S.”

A branded product allowing
consumers to experience
Cleanup’s high-quality.

Widespread Products24

5. Measures to Enhance Product Appeal (2)Principle Awards Received This Fiscal Term
The 5th Monozukuri Nippon Grand Award
Chief of the Tohoku Bureau of Economy,
Trade and Industry Award

Japan Institute of Design Promotion
Good Design Award 2013

“Beautiful Silent Sink”“Washable Range Hood”

25

6. Measures to Enhance Sales Capabilities (1)Overall Renewal of Showrooms

21 refurbished showrooms opened throughout the country(April, 2013 － March, 2014)
1

2

SagamiharaＳＲ

6

3

KofuＳＲ

7

MoriokaＳＲ

11

8

12

16

TokushimaＳＲ

OtaＳＲ

NaraＳＲ

15

KitakyushuＳＲ

19

ShigaＳＲ

ToyamaＳＲ

10

14

18

KobeＳＲ

KitaosakaＳＲ

YokkaichiＳＲ

TamaＳＲ

5

9

13

17

NagaokaＳＲ

SagaＳＲ

IwakiＳＲ

ChibaＳＲ

4

YamaguchiＳＲ

20

TokuyamaＳＲ

FukuokaＳＲ
26

6. Measures to Enhance Sales Capabilities (2)Enhancement of the Personnel Capabilities of Showroom Advisors

All 380 showroom advisors qualified for the Level 3
Food Education Instructor certification
Advisors in the showroom offer value,
which is only available from the kitchen
manufacturer through “food education”<Three pillars of food education>
1) Selection of safe foodstuffs
2) Food etiquette that nurtures a fundamental character3) Ecology based on gratitude for food anda global perception* The “Level 3 Food Education Instructor” qualification, certified by the Japan Food Education Instructors Association,a non-profit organization:
Is a person “capable of understanding the importance of food education, able to improve their cooking skills,
supervise food education in their daily lives and convey their knowledge to people around them.”27

6. Measures to Enhance Sales Capabilities (3)Enhance Comprehensive Competitiveness of Showroom Advisors
Promote enhancement of comprehensive competitiveness ofshowrooms through multifaceted implementation of various measures
Number of visitors
nationwide（％）

Food and
residence
related events
at showrooms

Contract rate fromconsultations(thousand accounts)

Overall refurbishingof showrooms
nationwide

Enhancecomprehensivecompetitivenessof showrooms
Implement
renovation fairs
based aroundshowrooms

Enhance personnel
capabilities ofshowroom advisors28

6. Measures to Enhance Sales Capabilities (4)Promoting Renovation Plans
Building and strengthening a comprehensive system to meet the demands of renovators

Cleanup●Influential regional stores(contractors)●Sub-users (wholesalers)

Consumers

Strengthen renovation strategy●“Water Section Workshops” member stores
to 4,832 store system （As of March 31, 2014）●Renovation Fairs
Period Ended March 2012 ： 2,183 (YoY 178.2%)
Period Ended March 2013 ： 3,036 (YoY 139.0%)
Period Ended March 2014 ： 4,400 (YoY 144.9%)

Strengthen logistics cooperation●Implement renovation seminars for sub-customers
in cooperation with strong local firms●Implement renovation fairs with strong firms/
sub-customers as sponsors
29

7. Brand Power (1) Aiming for Improved Brand Value
Aiming for increased brand power by implementing our corporate philosophy
through various activities leveraging our strengths as a specialist manufacturer
Deepening and evolution ofcraftsmanship based on our CPS

Tangibles(Products)

Expanded communication activities
Using the theme of“fulfilling food and lifestyle.”

Intangibles(Service)

Implementing corporate philosophy

Smiling Families

Improving Cleanup's Brand Value

Becoming “The Kitchen Company”
30

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7. Brand Power (2) Events Focusing on the Theme of “Food”◎Regular cooking classes at showrooms with a "salonese“ as an instructor
Showrooms
Around Japan

Salonese
Members inJapanTransmission of Information
to Locals

102
Locations

More than 1,300
Members

Hold a total of 535 events at
91 locations nationwide◎Implement collaborative activities combining different industries
and Salonese members.

Lectures were held at the “Cooking Studio” incollaboration with Tomizawa Corporation.

Workshops were held at the “Hajimarino Café” at
Mitsukoshi Department Store in Nihonbashi
31

7. Brand Power (3) Promotion of Food Education for Children
Actively engaging in food education activities by participatingin the “Bento Day Support Project”

June, 2013

● Supporting “Food Education Lectures” held by the “Bento Day” committee
in the Nippori area of Arakawa ward
August, 2013

● Holding presentations and children's cooking classes at the Shinjuku Showroom
November, 2013

● Supporting “Children’s Cooking Class” at Arakawa City Public Elementary School No. 6
March, 2014

● Supporting administration of “Food Education Lecture Sessions”, sponsored by the major
supermarket chain, Maruto Co., Ltd., etc., in Iwaki City.
＜Supporting
Company＞
32

7. Brand Power (4) Participation at Exhibitions

World’s largest international furniture trade fair

Japan’s largest environmental trade fair

Salone Internazionale del Mobile
Milano 2014

Eco-Products 2013
Topic
“Kitchen Cleaning School”

Distinguished Italian industrial art
designer

Mr. Giulio Iacchetti

Cleanup

A knack for cleaning sinks and range hoods, which tend to
be cumbersome, is introduced in a fun filled class, formatted
with instructions provided as the “Kitchen Cleaning Class”:
Participants have an actual experience with the cleanability
and water saving effects of the “Washable Range Hood.”33

8. Overseas Business Capabilities●ChinaThe market is entered jointly with a house manufacturer. Kitchens
are supplied to four districts, Shenyang, Suzhou, Wuxi and Taicang.
Full-scale deliveries and installation work started in FY2014.

Shenyang
Beijing

Iwaki
Tokyo

●Taiwan / Vietnam

Shanghai

The sale of primarily medium to high class products (S.S. Clean
Lady) is through exports to local distributors.
Sales were expanded beyond corporate customers by reaching out
to consumers, through effectively using the showrooms of
distributors, in general.
Continuous support was provided to distributors and our local
representative office endeavored to expand sales.

OkayamaTaipei

Hanoi
Hong Kong

Ho Chi Minh

Wuxi Town House

Condominium in Heping District of Shnyang

Site of condominium building in34

9. CSR Activities (1)Implementation of Our Corporate Philosophy and Recovery Support"Family"

The Second "We Love Family Time!" Campaign

An award ceremony was held on Mother’s
Day in May 2014, with the winner of the
Most Excellent Episode Prize receiving our
top of the line system kitchen, “S.S.”35

9. CSR Activities (2) Sporting Activities (Wrestling Club)
Asian Championships (New Delhi, India)

World Wrestling Championships (Budapest, Hungary)

Hiroe Suzuki earned a gold
medal, and Shota Tanokura
earned a silver medal

Hiroe Suzuki,
Shogo Maeda,
and Shota
Hiroe Suzuki
Tanokura
represented
Japan

Hiroe Suzuki
Universiade (Kazan, Russia)

Shota Tanokura earned
a bronze medal

Shota Tanokura

Shogo Maeda

Shota Tanokura

We became an official corporate sponsor of the Japan Wrestling Federation on April 1, 2014.
(We also support the Cleanup Kids Wrestling Club in Iwaki City of Fukushima Prefecture,
where our production base is located.)36

10. System Kitchen Market Share by ClassDue to the favorable progress of RAKUERA, we were able toincrease our market share of entry-level system kitchens
Changes in System Kitchen Market Share by Class
（％）

28.0

25.3

Luxury24.0
Mid-Level

20.6
20.0

16.5
16.0

12.0

15.5
13.9

14.7

9.3

9.7

2008/3

2009/3

16.0

14.5

11.7

14.0

16.3

16.3

15.9
14.3

14.6
13.0

17.2
15.7
12.6

8.0

4.0

2010/3

2011/3

2012/3

2013/3

Entry-Level

Other shares (special orders)
FY 2007 27.3%
FY 2008 27.7%
FY 2009 33.6%
FY 2010 31.5%
FY 2011 28.4%
FY 2012 34.5%
FY 2013 33.1％

2014/3*Calculated based on shipping statistics from theJapan Association of Kitchen & Bath.
37

11. Management Policies for the Period Ending March 2015
Period Ending March 2015
Management Policies

Firmly establish “The Kitchen Company”① Increase the speed of renovation measures② Improve overall showroom competitiveness
Increase the market share of medium and high class system③ kitchens and enhance our products in the popular class

Improve operational efficiency through corporation-wide④ implementation of CPS activities⑤ Improve total product quality and decrease total costs
Establish and improve the operational system that backs up our⑥ 20 years of support⑦ Strategically promote overseas business
Create a personnel environment and the nurturing of personnel in⑧ anticipation of our 70th anniversary38

12. Medium-term Strategy Pursuit of “New Management Philosophy”◎Our foundation, which is suitable for our “Second Creation”,
will be established as we commemorate the 65th anniversary of our founding
this year and take on new challenges, heading towards our 70th anniversary.

Founder’s
Philosophy(Five Concepts)

Corporate Philosophy(creating cheerful smilesin the family)

Active Philosophy

1. We will create a ‘soulful’ culture oflifestyle and cuisine.
2. We will always conduct fair and honest
corporate activities.
3. We will create a company our families can take pride in.

Aiming for a business thatdevelops globally, whilevaluing individuals, families,
and communities, based on
our experience with theearthquake

New Brand Statement

To create smiles from the kitchen
For our business to be the ‘Top leader in kitchens.’
To establish a reputation among our customers ‘synonymous with kitchens.’

Action Policy

39For any questions concerning investor relations,please contact:

Cleanup Corporation
Corporate Planning Department,
Public Relations Section

Tel 03-3810-8241
Fax 03-3800-2261
URL http://cleanup.jp/40

Disclaimer
This material is intended to provide information regarding FY2013
financial results (April 2013 - March 2014) and does not constitute a
solicitation to invest in Cleanup Corporation-issued securities.
Furthermore, this material was created based upon data current as of
May 19, 2014. Opinions and forecasts contained within this material
were the subjective judgments of Cleanup Corporation at the time ofcreation. No guarantee or promise is made as to the accuracy orcompleteness of this information. Additionally, this information is subject
to change without prior notice.

41