Presentation
Material:
パワーポイントテンプレート

Announcement of FY 2018 Year-End Results
May 20, 2019

0

Ⅰ. Results Outline

11. Outline of Consolidated Results for the Period Ended March 2019
(Units: millions of yen)

2019/3

2018/3(Actual Results)

Net Sales

2019/3(Actual Results)

Change From
Prev. Period(Revised Forecast)

104,486

107,386△2.7％

106,000

Operating
Income

△465

398

ー

△750

Ordinary
Incom

△376

418

ー

△720

Profit attributableto ownersof parent

△704

49

ー

△1,220△19.26yeｎ

1.34yeｎー33.34yen

Net Income
Per Share＊Revised Forecast : Announced October 31, 20182

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

107.39104.49Net Sales△2.90 billion yen

71.93

69.94

Cost of Sales（67.0）（66.9）△1.99 billion yen
Cost of Sales Ratio

△0.1％
35.45

34.54

(33.0)(33.1)
Gross Profit0

2018/3

2019/3△0.91 billion yen【Main Increase/Decrease Factors】●System Kitchens△ 2,030 million yen●System Bathrooms△ 550 million yen●Washstands△ 20 million yen●Decrease Due to Decreased Earnings△1,940 million yen●Decrease Due to Decreased Cost of Sales Ratio△ 50 million yen●Decrease in CENTRO, STEDIA Cost Ratio△ 1.39 points●Increase in RAKUERA Cost Ratio＋ 0.15 points●Decrease in System Bathrooms Cost Ratio△ 0.47 points●Raw Materials, Cost Reduction etc.
＋ 1.61 points●Decrease Due to Decreased in Net Sales△ 960 million yen●Increase in Gross Profit Ratio＋ 50 million yen

32. Consolidated Profits (2) SGA Expenses, Operating Income(Units: billions of yen)
【Increased/Decreased Values (Rates)】
38, 000

36, 000

35.45

34.54
Gross Profit

34, 000

32, 000△0.91 billion yen

30, 000

28, 000

26, 000

SGA Expenses

24, 000

22, 000

20, 000

18, 000

16, 000【 Main Increase/Decrease Factors 】

35.05

35.00

（32.6）（33.5）＋0.05 billion yen●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses＋ 510 million yen△ 180 million yen△ 240 million yen△ 140 million yen●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses＋ 0.6 points― points＋ 0.1 points＋ 0.2 points

14, 000

12, 000

10, 000

SGA Ratio

8, 0006, 000

0.39

＋0.9％

4, 0002, 000

（0.4）

0

△0.46

-2, 000（△0.4）-4, 000-6, 000

2018/3

2019/3Operating Income●Decrease in Gross Profit●Decrease in SGA Expenses△ 910 million yen＋ 50 million yen△0.86 billion yen
43. Sales Composition (1) By Segment (Consolidated)

Kitchen Equipment

Bathtubs & Washstands

Other【2019/3】(Units: millions of yen)

Other

6.4％

120,000

107,386
6,652

104,486
6,733

107,000
6,352

5.9％

16,70615.6％Bathtubs &Washstands

15.6％
78.0％

100,000

16,86016,280Kitchen Equipment

80,00060,000【2018/3 】
83,873

81,471

83,942

78.5％

Other

40,000Bathtubs &Washstands
20,000

6.2％

15.7％
78.1％
Kitchen Equipment0

2018/3

2019/32020/3(Forecast)5

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

5.1％

5.1％

16.0％

16.3％

78.9％

78.6％

Direct-S ales(Con domin iu m own ers)

5.3％

5.1％

5.5％

16.0％

15.9％

15.1％

78.9％

79.7％

79.6％

Hou sin g Con stru ctors
G en eral R ou tes(Con stru ction Con tractors - Home R en ovation )0

2019/3 2020/3(Forecast)
2018/3
2016/3 2017/3
6

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

83.37

Current Assets

46.17

Total Assets

80.41

43.57

△2.97 billion yen
Cash and Deposits
Notes and Accounts Receivable
Electronically Recorded
Monetary Claims●Current Assets●Fixed Assets△ 2,570 million yen△ 390 million yen●Cash and Deposits△ 3,020 million yen●Notes and Accounts Receivable△ 410 million yen●Electronically Recorded
Monetary Claims+ 830 million yen△2.60 billion yen
Inventory
2.11
2.12

2.27
1.99

●Increase in Raw Materials＋0.17 billion yen+ 90 million yen

Other Current Assets
32.97

32.57

△0.13 billion yen
Fixed Assets△0.39 billion yen
2018/3●Tangible Fixed Assets●Intangible Fixed Assets●Securities Investments△ 600 million yen＋130 million yen＋80 million yen

2019/37

4. Consolidated Balance Sheet Summary – 2/2【Liabilities / Net assets】
100【 Increased/Decreased Values 】【Primary Reasons for Increase/Decrease】(Units: billions of yen)

83.37

24.34

6.69

80.41
Current Liabilities
22.70△1.64 billion yen

6.89●Trade Accounts Payable, Other Accounts Payable△ 330 million yen△ 1,910 million yen●Short-term loans payable●Current portion of long-term loans payable＋ 190 million yen●Provision for share-based remuneration＋ 250 million yen

50Long-Term Liabilities＋0.20 billion yen
52.35●Long-term loans payable＋ 1,090 million yen●Retirement benefit liability△ 600 million yen●Provision for share-based remuneration△ 210 million yen

50.82

Total Net Assets△1.52 billion yen●Net Income△ 700 million yen●Dividends△ 740 million yen●Valuation Difference on
Available-for-Sale Securities △ 190 million yen●Remeasurements of defined benefit plans＋ 160 million yen

0

2018/3

2019/38

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

30

25

20.20
20

△30.2

17.18

15

10

5

2.93

0

△ 2.34 △ 2.30

△18.0
＋7.4
△2.1

1.13

△ 2.55△ 1.56-5-10

2018/3

2019/39

6. Capital Investments (Consolidated)
R&D Costs

Capital Investment

Deprecation Costs【Major Capital Investment Details】(Units: billions of yen)

FY 2018 Results

5.0

3.90

3.82

4.0

① Production-Related

1,040 million yen② Showroom Renovation

1,330 million yen③ Information Investment

990 million yen③ Others

40 million yen

3.75

3.66

3.50

3.41
3.05
3.0

2.41

FY 2019 Plan

2.0

1.13

1.19

1.09

1.10

1.0

0.0

2017/3

2018/3

2019/3① Production-Related

1,040 million yen② Operations-Related

1,380 million yen③ Information-Related

940 million yen④ Others

140 million yen

2020/3(Forecast)10

7. Sales Results For Major Products and Cleanup Market Share - 1/3

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

100

82.5

80.7

Monetary Value
Volume60(Thousands of Sets)

400

74.8

72.7

1,400

1,200

233

232

214

1,207

1,242

30

1,228
25

300

1,000

800

220

1,204

（％）

75.8
20.3

244

Demand Volume
Cleanup Share(Thousands of Sets)

1,200

80.5

80

Demand Trends and Market Share

221

20

19.4

19.3

17.8

200

17.4

15

600

40

10
100

400

20

5

200

0

0

15/3

16/3

17/3

18/3

19/3

20/3

0

0

15/3

16/3

17/3

18/3

19/3

（Forecast）

11

7. Sales Results For Major Products and Cleanup Market Share - 2/3

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

15.0

14.0

13.7

34

33

Demand Volume
Cleanup Share(Thousands of Sets)

50

1,000

40

800

30

600

20

400

31

29

11.7

28

739

754

17/3

18/3

19/3

757

752

748

8

6

30

0.0

16/3

10

12.1

4.6

4.4

5.0

15/3

（％）

13.1
12.2

10.0

(Thousands of Sets)

Demand Trends and Market Share

20/3

4.1

4

3.9

3.8

10

200

2

0

0

0

15/3

16/3

17/3

18/3

19/3

（Forecast）

12

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

Washstands/Vanities
Demand Volume
Cleanup Share(Units: billions of yen)

6.0

Demand Trends and Market Share(Thousands of Sets)

150

2,000

1,768
5.0

4.8

4.6

4.7

90

91

4.5

4.4

4.6

Demand Volume
Cleanup Share(Thousands of Sets)

1,804

1,833

1,844

（％）

10.0

1,815

120

1,600

8.0

90

1,200

6.0

4.0

93
3.0

87

83

84

5.3

5.0

5.0

4.7

4.6

60

800

30

400

2.0

0

0

0.0

4.0

2.0

1.0

0.0

15/3

16/3

17/3

18/3

19/3

20/3

15/3

16/3

17/3

18/3

19/3

（Forecast）

13

8. Showrooms And Visitor Numbers(Locations)

Number of Showrooms

180

Number of Visitors

539

448

600

524

510
150

(Thousands of groups)

483

472

467

456

447

470

120

500

400

102

102

102

102

101

102

102

103

103

103

90

300

60

200

30

100

0

0

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3
（Forecast）

14

9. Forecasted Consolidated Results for the Period Ending March 2020
(Units: millions of yen)

2019/32020/3(Actual Results)（Forecast）

Change From
Prev. Period

Net Sales

104,486

107,000＋2.4％

Operating
Income

△465

1,100

-

-

1.0％

-

△376

1,150

-

Ordinary Income
Margin-1.1％-

Profit attributable toowners of parent

△704

550

-

-

0.5％

-

Operating Income
MarginOrdinary
IncomeNet Income
Margin15

II. Future Strategy
Progress of Medium-Term Management Plan

16

1. Outline of 2018 Medium-term Management Plan (2018 to 2020)(1) - Vision“Reformation to transform into ‘Cleanup’
the lifestyle value creating business”
At Cleanup we aim to become a business that delivers“excitement” to customers around the world and we willcontinue to always be the business of choice by creating andproposing a “new lifestyle value” for kitchens, dining rooms,
living rooms and hygienic spaces, as “kitchen experts”.

17

1. Outline of 2018 Medium-term Management Plan (2018 to 2020)(2) - Commitments and Framework
Commemorating the 70th anniversary of our establishment, moving forward.
At Cleanup we take on the challenging task of “Reformation and Creation”.

Structural Reforms

1. Increase shares in mid to high-end
markets.

2. Transform to discard low profit structure.

Growth strategies

3. Establish second pillar of business
operations.
4. Engage in M&A and business alliances.

Businessfoundation
enhancements

5. Enhance technological capabilities.
6. Create brands.
7. Nurture personnel.
18

2. Product Strategy (1) Revamping Product Lines
All three grades of products revamped to restructure makeup of product lines.
2018

2019

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

Grade I
(Luxury range models)February 2018

February 2019

Brand revamped

Designability
enhanced

Implemented proactive sales promotional activities,
such as the “CENTRO Ambassador” program.

Grade II
(Medium range models)

All three grades

revamped

September 2018

Brand revamped
Implemented proactive advertising and sales
promotional activities, such as new commercials.

Competitive
strengths
enhanced

Grade III
(Popular range models)February 2019

Renewal19

2. Product Strategy (2) Revamping Core Brands

New Launch of STEDIA - 1/2

The new story of the core brand started at Cleanup in September 2018
Complete redesigning of floor
containers

Further evolution of the “Cleanlady”
Introduction of a new core brand in the medium tosuperior quality price range

1

The floor container (storage in the floor) was completely
redesigned to suit open plan kitchen, living room and dining
room environments in response to the diversification of interior
decorating trends.

The introduction of the “Acrystone
Nagarail Sink”

2The “Nagarail Sink” line of products, introduced in 2015, now

2includes models made with Acrystone, in addition to those madewith stainless steel.

The incorporation of new storage functionalities, weredeveloped by considering their usage frequency andease for the extraction of the contents, as standard features.

3

The “zone concept”, which is a storage concept we nurtured over theyears, evolved further through the incorporation of a stainless steel ecocabinet that is easily maintained and keeps clean, has been added as astandard feature.
20

2. Product Strategy (2) Revamping Core Brands

New Launch of STEDIA - 2/2

Continuing advertising and sales promotional activities that began last fiscal year,
to convey attractive features of STEDIA
Televisioncommercials
2019
May 16
releaseThis year again, Ms. Takako Matsu talks about the attractive featuresof the stainless cabinet kitchen.

“If it’s clean, then it’s a Cleanup!”
Stainless Steel Cabinet Edition
Ms. Matsu says, “Hey, did you know?”, as a scene of Thailand spreads
across the screen behind, she continues, “Japan at the moment is almost as
steaming hot as Thailand”. The appealing aspects of “STEDIA”, made withstainless steel that has strong resistance against mold and odor caused bymoisture inside the kitchen, is described by Ms. Matsu as “clean and giving
peace of mind”.

Araail Range Hood Edition
Against the backdrop of a public bath house, Ms. Matsu says “Don’t you want toremove greasy stains with hot water?” The fan filter on the range hood is shown as it
is washed whole automatically, followed by the final scene of her out of the bath,saying “How refreshingly clean!” The smiling face of Ms. Matsu, beautiful even in

sweaty summer, shines through.

Commercial Video
Currently featured on
the web!

“STEDIA Special Site”
http://cleanup.jp/kitchen/stediasp
21

2. Product Strategy (3) Positive Market Assessments
Highly rated by two industry papers.
Nikkei Home Builder
Desired for implementation byprofessionals

Architectural and Construction
Materials Manufacturers’
Ranking 2018

Grade I

Renovation Industry Newspaper
Facility and building materials selected by renovation sales
professionals and planners

Renovation Grand Prix 2019

High-end pricerange(Luxury range models)

2nd place

Grade II
(Medium range models)

System kitchen category
1st place

Grade III
(Popular range models)Intermediate pricerange
1st place

Kitchen category
Overall 1st place

Popular pricerange
1st place22

3. Sales Strategy (1) Enhancing Showrooms - 1/2
The renovations and relocations of showrooms continue for sustained andenhanced sales capacities.
* The grand opening of Narita Showroom will be during FY2019.
Renovations were conducted at six sites
during FY2018.
Sakai Showroom

Nerima Showroom(Opened May 8, 2018)(Opened September 6, 2018)⚫ The showroom floor area has been
increased by about 50%.

⚫ Renovations for small residences,such as condominiums, have been
supported.

Relocation

Renovation

Toyota Showroom

Kanazawa Showroom(Opened September 23, 2018)(Opened September 6, 2018)⚫ A “Kitchen Studio”, where visitors
can experience using the kitchen,has been newly established.

⚫ Various exhibits have beenenhanced intended for discoveringrenovation demands.

Relocation

Renovation

Kochi Showroom

Narita Showroom(Opened March 1, 2019)(Opened April 05, 2019)⚫ A store has been established at anarea where improved customer
appeal is expected.

⚫ A nursing room and multi-purpose
toilets have been newly established,aside from the kitchen studio, space
proposal corner, etc.

Relocation

Renovation23

3. Sales Strategy (1) Enhancing Showrooms - 2/2
The flagship showroom, the fourth to be established in metropolitan areas,
opened in Yokohama.

Cleanup Kitchen Town Yokohama(Planned opening in FY2019)

The flagship showroom “Cleanup Kitchen Town
Yokohama”, the second of its kind after Tokyo in the

Capital Region, will be opened in FY2019 (planned).
The latest system kitchen and bathroom, as wellwashstands and other wet area products, areavailable for leisurely viewing.
* Photographs depict images.

Cleanup Kitchen Town Osaka(Opened July 2012)

Cleanup Kitchen Town Tokyo(Opened October 2015)

Cleanup Kitchen Town Nagoya(Opened October 2016)24

3. Sales Strategy (2) Capturing Renovation Demands
A Photo Contest is conducted with the intention of vitalizing the renovation business.
13th year since starting in 2006
End of February 2012

End of February
2007[Number ofregularmembers]

Water Area Workshops
Installation Example Photo Contest

STEDIACENTRO

Renovation case examples

Renovation caseexamplesAfter

Approx. 4,100
companies

BeforeBeforeLimited time only

Participation from October 2018 tothe end of January 2019

Approx. 900
companies

Approx. 2,600
companies

End of May 2019

After

Purpose● Further enhance customer contacts on
the web.
● Enhance public relations toward membersof the Water Section Workshops.
25

3. Sales Strategy (3) Sales Promotions
The “70th Anniversary Customer Appreciation Campaign” is held to commemorate
70 years since the establishment of business.

The “70th Anniversary Customer Appreciation
Campaign” is held to commemorate the 70th
anniversary of the business’s founding in
October this year, with a spirit of appreciationfor our customers.

CENTRO

Aqulia-Bath

STEDIA

Estimate

Contract

Limited time only
Starting from mid May 2019 until the end
November 2019

Prize A

Prize B

Prize C

Purpose
Induce end users to visit our showrooms andpromote requests for estimates.

Tokyo Bay Maihama Hotel
Couples accommodation invitation

Gourmet Gift Catalog“Ms. Takako Matsu”
original QUO cards

26

4. Growth Strategy (1) Expansion of Overseas Business Operations◆ Expand the sales of system kitchens, primarily in the nations of Asia.
◆ Examine the overseas supply framework.
● China• Kitchen products and the like are to be supplied to major house manufacturers (Suzhou, Taicang, etc.).
• Increase sales to Japanese developers, while enhancing collaboration with distributors.

Beijing
Beijing

Korea
Korea
Tokyo
Tokyo

● Taiwan

Shanghai
Shanghai• Implement sales activities to capture properties and to expand the sales areas.
• Support distributors and enhance sales to major developers.

TaipeiTaipeiVietnamVietnam● Singapore, Malaysia , Thailand and Vietnam• Implement activities in the core markets of ASEAN nations, while enhancing sale s to major
developers in collaboration with designers and local distributors.

● Other Asian Countries• Distributors are to be established at principal nations to implement sales activities, intended primarily
for those in the high income brackets.

Exhibition in China (Shanghai)

Shenyang
Shenyang
DalianDalianHong
Hong Kong
Kong

ThailandThailand
Malaysia
Malaysia
Singapore
Singapore* Blue letters represent
production
sites.
* Blueletters represent
production sites.

Town house in China (Shenyang)27

4. Growth Strategy (2) Activities for Electronic Commerce Business Operations
Promote the EC business as a new sales channel
OnlineThe EC（ Shopping ）site significantly
grew following the renewal.
Implement refreshing services online,
while seeking further expansion of the
http://style.cleanup.jp/
market!

Sales transitioned steadily each year

Refreshing service for wet areas

150.2％
146.7％

Cleaning Service

Appliance Exchange Service

Parts and Materials
Exchange Service

Aftermarket Installation Service

Bathroom Refurbishing Service

FY2017FY2018FY2019

Member registrations and requests for estimates are accepted
via the internet.
Expert service personnel are dispatched to sites, while
detailed consultations are offered to customers.

(planned)28

4. Growth Strategy (3) Activities for New Businesses
Implement building material business by utilizing technical capabilities
Our affiliates specializing in stainless steel processing technologies

Cleanup Stainless Processing Center Co., Ltd.
[Principal Business]
The surface processing and cutting of stainless materials
The production and machining of colored stainless building
materials, etc.

First exhibit at the “25th Architecture + Construction Materials”● Organizer: Nikkei Inc.
● Venue: East Halls 3, 5 and 6, Tokyo Big Sight● Dates: March 5 to 8, 2019

The attractive features of beautiful and robust coloredstainless products are introduced, along with examples of
their usage and track records that are used, not just in our
kitchen products, but also the interior and building materials
for public facilities and stores, etc.

Features of coloredstainless products

1

Back nets at ball parks, fences for zoos, as well as mailboxes, stainless roof tiles, bolts and the like, are exhibited.

Superior durability compared to paint coatings⇒ Suitable for building and interior materials forwhich concerns exist about deterioration over time.

2

Abundant variety through a “combinationof polishing technologies and color
combinations”.
29

5. CSR Measures
Social and Environmental Report

Cleanup Wrestling Club

Disclosure of social programs and activities

Promotion of sports by encouraging participation in wrestlingSocial programs and activities at Cleanup are disclosed in the “2018 Social andEnvironmental Report”. A detailed introduction of our social and cultural traits, as wellas environmental considerations in our business operational activities, are provided, toincrease trust by society.

Club founded in 1992

A wrestling club has been operated as a corporate sports activity. Four of our athletes are
currently training to qualify for participation in the 2020 Tokyo Olympic Games. Kids wrestlingis also supported in Iwaki City of Fukushima Prefecture, the location for one of our production
sites.

Hiroe Minagawa, wrestler“2018 Social and Environmental Report”
Covered period:
April 1, 2017 to March 31, 2018

Cleanup Foundation- A means to pay back to local communities, with gratitude The foundation, which was established in 2012, continues to provide support for training
young people who will be carrying local communities and restoration activities within
Fukushima Prefecture. Scholarships were provided to 40 people in FY2018.

Masuto Kawana, wrestler

Kirin Kinoshita, wrestler

Kanta Shiokawa, wrestler■ Principle results (since October 2018)<World Championship> October 2018
Hiroe Minagawa, wrestler
Women’s 76-kg class, bronze medal winner two years
in a row<Emperor’s Cup> December 2018
Hiroe Minagawa, wrestler
Women’s 76-kg class, winner
Masuto Kawana, wrestler
Greco-Roman 67-kg class, third place winner
Kanta Shiokawa, wrestler
Greco-Roman 87-kg class, third place winner<National Athletic Meet at Fukui> October 2018
Masuto Kawana, wrestler
Greco-Roman 67-kg class, winner
Kanta Shiokawa, wrestler
Greco-Roman 97-kg class, winner<Asian Championship> April 2019
Hiroe Minagawa, wrestler
Women’s 76-kg class, runner-up

Cleanup Kids Iwasaki Wrestling Club

Social contributions to the local community, as
well as activities to facilitate the healthy growthof children who carry our future and support forthe creation of a brighter future, are facilitatedthrough the administration of the kids wrestling
program.

30

For any questions concerning investor relations, please contact:

Cleanup Corporation
Corporate Planning Department, Public Relations Section

Tel 03-3894-4771
URL http://cleanup.jp/

Disclaimer
This material is intended to provide information regarding the FY2018 financial results (April 2018 March 2019) 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 20, 2019. Opinions andforecasts contained within this material were the subjective judgments of Cleanup Corporation at thetime of creation. No guarantee or promise is made as to the accuracy or completeness of thisinformation. Additionally, this information is subject to change without prior notice.
31