Presentation
Material:
Announcement of FY2008
Year-End Results
May 14, 2008

Cleanup
Corporation
Tokyo Stock Exchange,
1st Section, Code 7955

0

Ⅰ． Results Outline

1

I. Results Outline

1. Outline of Consolidated Results for Period Ended March 2008
(Units: millions of yen)

2008/3(Actual Results)

2007/3

Change From
(Actual Results) Prev. Period

2008/3

2008/3(Initial Plan)(Revised Plan)

Compared
To Plan

Net Sales

112,811

122,781△8.1％

126,500

113,200△0.3％

Operating
Income△1,301

4,139

－ ％

3,400

△1,400＋7.1％

Ordinary
Income△1,382

3,962

－ ％

3,200

△1,400＋1.3％

Net
Income△3,078

1,865

－ ％

1,400

△3,200＋3.8％△62.98 yen

38.17 yen－ ％28.64 yen △65.47 yen＋3.8％

Net Income
Per Share＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced Jan. 30, 2008

2

I. Results Outline

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

122.781128.1Net Sales△9.97 billion yen

80.72

76.34

（65.7）（67.7）

Cost of Sales△4.38 billion yen
Cost of Sales Ratio

＋1.9％
42.05

36.46

（34.3）（32.3）

Gross Profit0

2007/3

2008/3△5.58 billion yen【Primary Reasons for Increase/Decrease】●System Kitchens
・ＳＳ・CLEANLADY●System Bathrooms△9,560 million yen△4,150 million yen△2,320 million yen＋110 million yen●Decrease Due to Decreased Earnings△6,550 million yen●Increase Due to Increased Cost of Sales Ratio＋2,170 million yen●Worsening SS, CLEANLADY Product Mix＋0.8 points●Sales Distribution by Category＋0.4 points●Worsening Kitchen Product Mix＋0.2 points●Increase in Aqulia Cost of Sales Ratio ＋0.3 points●Worsening Washstand Product Mix＋0.1 points●Sales Route Distribution Ratio＋0.1 points●Increase in Cost of Raw Materials＋1.2 points（Unable to be completely absorbed
by product price increases）●Cost Decrease△0.3 points●Decrease Due to Decreased Earnings△3,410 million yen●Decrease in Gross Profit Ratio△2,170 million yen

3I. Results Outline

2. Consolidated Profits ② SGA Expenses, Operating Income(Units: billions of yen)

【Increased/Decreased Values (Rates)】

42.05
36.46

Gross Profit△5.58 billion yen
SGA Expenses
37.92

37.77

（30.9）（33.5）△0.14 billion yen
SGA Ratio＋2.6％-2, 000

4.13

△1.30

Operating Income（3.4）（△1.2）△5.44 billion yen

2007/3

2008/3【Primary Reasons for Increase/Decrease】●Sales Expenses●Distribution Expenses●Salaries, Bonuses●Depreciation Expenses＋150 million yen△660 million yen＋190 million yen＋230 million yen●Sales Expenses●Personnel Expenses●Repair Expenses●Depreciation Expenses＋0.4 points＋1.2 points＋0.1 points＋0.4 points●Change in Gross Profit △5,580 million yen●Change in SGA Expenses ＋140 million yen

4I. Results Outline

3. Sales Composition ① By Segment (Consolidated)【2008/3】

Other
Bathrooms & Washstands
Kitchen Equipment(Units: millions of yen)Other

140,000

122,000

122,781
4,394

120,000

20,288112,811

4.0％
4,905

4,704
23,015

18.9％

4.2％

Bathtubs &17.9％
Washstands
Kitchen Equipment

77.9％

20,244

100,000

80,00060,00098,09887,86394,08077.1％

Bathtubs &16.5％
Washstands

40,00020,0000【2007/3】
Other 3.6％

Kitchen Equipment

2007/3

2008/379.9％

2009/3(Forecast)5

I. Results Outline

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

9.5％
15.0％

9.0％

10.2％

8.8％
10.9％

16.2％

16.9％

17.3％
17.1％

Direct-Sales(Condominium owners)
Housing Constructors
75.5％

74.8％

72.9％

72.0％

73.9％

General Routes(Construction Contractors - Home
Renovation)0

2005/3

2006/3

2007/3

2008/3 2009/3(Forecast)6

I. Results Outline

4. Consolidated Balance Sheet Summary – 1/2(Units: billions of yen)

【Increased/Decreased Values】【Assets】
86.95
79.89

Total Assets【Primary Reasons for Increase/Decrease】●Current Assets●Fixed Assets△5,440 million yen△1,610 million yen△7.05 billion yen
Current Assets

46.36
39.73

Cash and Deposits Notes
and Accounts Receivable●Cash and Deposits △2,030 million yen●Notes and Accounts Receivable△4,600 million yen△6.63 billion yen

Inventory
3.30
5.31

3.04
6.77

●Decrease in End-of-Period Backorders△0.26 billion yen●Increase in Negotiable Securities +1,690 million yen
Other Current Assets(Increase in CP)＋1.45 billion yen
31.96

30.35

●Decrease Due to Depreciation and Depletion

Fixed Assets△1.61 billion yen

0. 0

2007/3

2008/3

Buildings and Structures △400 million yen
Land△110 million yen
Software△310 million yen●Securities Investments△650 million yen

7I. Results Outline

4. Consolidated Balance Sheet Summary – 2/2【Primary Reasons for Increase/Decrease】(Units: billions of yen)
【Liabilities･Minority Interests・
Assets】【 Increased/Decreased Values 】

86.95
79.89

Current Liabilities△4.27 billion yen

22.13●Accounts Payable△360 million yen●Short-Term Debt
△1,500 million yen●Other Accounts Payable △910 million yen●Income Taxes Payable△660 million yen●Sales Taxes Payable△440 million yen

17.86

Long-Term Liabilities

4.21
6.13

＋1.92 billion yen

60.59

55.89

Total Assets△4.70 billion yen●Long-Term Debt
＋2,080 million yen●Long-Term Unpaid Obligations△400 million yen●Retained Earnings△4,050 million yen●Unrealized Gain on Securities△640 million yen

0. 0

2007/3

2008/38

I. Results Outline

5. Consolidated Cash Flow Statement Summary
Cash Flow from Operating Activities
営業活動ＣＦ
投資活動ＣＦ
Cash Flow from Financing Activities

Cash Flow from Investing Activities
財務活動ＣＦ
現金及び現金同等物の期末残高
Term-End Cash & Cash Equivalents Balance

200(Units: billions of yen)

16.63

△3.3

16.30

150

100

5.82

△18.8

50

3.94

0

△ 0.87＋24.0△ 2.08△ 3.27-50

2007/3△13.2△ 3.402008/39

I. Results Outline

6．Capital Investments (Consolidated)
R&D Costs
Capital Investment
Deprecation Costs(Billions of yen)
60.0

【Major Capital Investment Details】

FY 2008 Results①Dies and Equipment for New Products

5.20

1,290 million yen

4.67
4.35

4.25

②Showroom Renovation
2,270 million yen

40.0

3.59

④Information Investment

3.35

680 million yen

FY 2009 Plan
①Production-Related
20.0

1.38

1.42

1,780 million yen

1.40②Operations-Related
1,940 million yen③Information-Related
0.0

2007/3

2008/3

2009/3

1,200 million yen④Others

280 million yen(Forecast)10

I. Results Outline

7. Outline of Non-Consolidated Results For Period Ended March 2008
(Units: millions of yen)

2008/3(Actual Results)

2007/3

Change From
(Actual Results) Prev. Period

2008/3

2008/3(Initial Plan)(Revised Plan)

Compared
To Plan

110,000△0.6％

Net Sales

109,358

119,582△8.5％

123,000

Operating
Income△1,831

3,211

－ ％

2,700

△1,600 △14.4％

Ordinary
Income△1,484

3,255

－ ％

2,850

△1,300 △14.2％

Net Income△3,042

1,438

－ ％

1,300

△3,000△1.4％

Net Income
Per Share△62.25 yen

29.43 yen－ ％26.60 yen △61.38 yen△1.4％＊Initial Plan: Announced May 8, 2007
＊Revised Plan: Announced Jan. 30, 200811

I. Results Outline

8. Non-Consolidated Sales Composition By Segment
Kitchen Equipment
Washstands
Other(millions of yen)
120,000

15,197【2008/3】
Industrial Kitchen
Equipment

118,500

119,582
9,292
1,834
5,093

100,000

Bathrooms
Industrial Kitchen Equipment

109,358
9,259
1,898
4,956

9,455
1,940
5,390

17,625

8.0％
1.6％
4.5％
14.9％

Washstands

Other

1.7％

8.5％

4. 5％
KitchenEquipment

14.0％
Bathrooms

71.3％

15,28880,000【2007/3】

60,00088,167
77,95740,00084,09071.0％

Industrial Kitchen
Equipment
Washstands

1.5％

Bathrooms

2007/3

2008/3

7.8％

4.3％

12.7％

20,0000

Other

KitchenEquipment

73.7％

2009/3(Forecast)

12

I. Results Outline

9. Sales Results For Major Products and Cleanup Market Share - 1/4
Complete System Kitchen Sales Results(Billions of yen)

Monetary Value
Volume100(Thousands of Sets)

300

83.4 82.7 82.1
80

74.2

211.5

67.6
206
60

78.3
72.5

250

Demand Volume
Cleanup Share(Thousands of Sets)

1,400

1,200

1,131

1,186 1,181

（％）

30.0

1,247 1,228
25.0

1,049

205

186.5

207

Demand Trends and Market Share

1,000
200

184

20.0
800

165

150

15.7

16.3

17.4

17.5

17.0
15.2

600

40
100

15.0

10.0
400

20

50

0

0

03/3

04/3

05/3

06/3

07/3

08/3

09/3

5.0

200

0

0.0

03/3

04/3

05/3

06/3

07/3

08/3

(Planned)13

I. Results Outline

9. Sales Results For Major Products and Cleanup Market Share - 2/4
Sectional System Kitchen Sales Results
Monetary Value
Volume(Billions of yen)
10

8(Thousands of Sets)

150

7.7

800

6.2

6.1

6

5.5
81
74

73

589
547

559

546

515

90

20.0

438
15.0

400

75

4

5.8

（％）

30.0

25.0
600

6.5

Demand Volume
Cleanup Share(Thousands of Sets)

120

7.2

85

Demand Trends and Market Share

68

65

14.4

60

14.8
13.3

13.4

14.5

14.7
10.0

200
2

30
5.0

0

0

03/3

04/3

05/3

06/3

07/3

08/3

09/3

0

0.0

03/3

04/3

05/3

06/3

07/3

08/3

(Planned)14

I. Results Outline

9. Sales Results For Major Products and Cleanup Market Share - 3/4
Modular System Bathroom Sales Results(Billions of yen)

Monetary Value
Volume20

Demand Trends and Market Share

50

1,000

Demand Volume
Cleanup Share

40

800

770

(Thousands of Sets)(Thousands of Sets)

（％）

10.0

8.0

17.4
15.2

16.3 15.9

15

35
32

15.1 14.8 14.9
32

33

35
608

30.5

32

30

645

767
718

667

600

10

6.0

5.2

5.4
4.9

20

400

10

200

2.0

0

0

0.0

4.2

4.2

4.2

4.0

5

0

03/3

04/3

05/3

06/3

07/3

08/3

09/3
(Planned)

03/3

04/3

05/3

06/3

07/3

08/3

Note) Total number of companies increased from 11 to 15 from FY2005

15

I. Results Outline

9. Sales Results For Major Products and Cleanup Market Share - 4/4
Washstands/Vanities
Monetary Value
Volume(Billions of yen)
7

Demand Trends and Market Share(Thousands of Sets)

150

6

5.1

5.3

5.3

5.2

5.1

5.4

120

Demand Volume
Cleanup Share(Thousands of Sets)

2,400

2,000

1,730

5.0

（％）

10.0

1,813 1,786 1,844 1,834

1,750

8.0

5

103
4

92

99

100

1,600

96

98
91

90

6.0
1,200

3

5.3

5.7

5.5

5.4

5.3

5.2

60

4.0
800

2
30
1

0

0

03/3

04/3

05/3

06/3

07/3

08/3

09/3

2.0

400

0

0.0

03/3

04/3

05/3

06/3

07/3

08/3

(Planned)16

I. Results Outline

10. Showrooms And Visitor Numbers
Number of Showrooms
Number of Visitors(Locations)

240

480

200

(Thousands of groups)

600

495
460

450

456

503 500

380

160

400

314
120

255
85

87

95

101

104

107

109

109

109

300

80

200

40

100

0

0

01/3

02/3

03/3

04/3

05/3

06/3

07/3

08/3

09/3
(Planned)17

I. Results Outline

11. Forecasted Consolidated Results For The Period Ending March 2009
(Units: millions of yen)

2008/3

2009/3(Actual Results)(Plan)

Change From
Prev. Period

Net Sales

112,811122,000＋8.1％

Operating Income△1,3011,700－ ％Operating Income
Margin

△1.2％

1.4％

-

Ordinary Income△1,382

1,600－ ％Ordinary Income
Margin

△1.2％

1.3％

-

Net Income△3,078800－ ％Net Income Margin

△2.7％

0.7％

18

I. Results Outline

12. Forecasted Non-Consolidated Results For The Period Ending March 2009
(Units: millions of yen)

2008/3

2009/3(Actual Results)(Plan)

Change From
Prev. Period

Net Sales

109,358

118,500＋8.4％

Operating Income△1,831

1,250－ ％Operating Income
Margin

△1.7％

1.1％

-

Ordinary Income△1,4841,300－ ％Ordinary Income
Margin

△1.4％

1.1％

-

Net Income△3,042700－ ％Net Income Margin

△2.8％

0.6％

19

Ⅱ．Medium-Term Strategy Progress

20

Ⅱ． Medium-Term Strategy Progress

1. Business Environment

Increased Feelings of Uncertainty in the Future●Sense of recession in international and domestic economies (effects of US subprime loan problems,rising cost of oil, etc.)●Concern over “government-induced recession” (effects of pension problems, health insurance
problems, etc.)

Widespread tendency among consumers to delay purchases
Worsening Housing Market

Stagnating Renovation Demand【System Kitchens】●Ongoing stagnation in luxury products●Prevalence of high-value-added products in purchasing/consumers
shifting to mid-class products
21

Ⅱ． Medium-Term Strategy Progress

2. Overall Future Strategy

1 Focus on Base Building (Establish Foothold)● “The Kitchen Company”～Creating a product lineup and system, in our role as the leading company in kitchenrelated goods, suited to the needs of a new age and the business environment.

● Reconstruction of the business process～Undertaking a complete review of the business process with a focus on keywords such as“efficiency”, “speed” and “uniformity”.

2 Continue Working from a Medium-Term Viewpoint●Constant strengthening of food/housing communication～Increasing the Cleanup brand value and building medium-term kitchen demand by proposing
a new kitchen culture.
22

Ⅱ． Medium-Term Strategy Progress

3. “The Kitchen Company” ① Product Lineup
Product Lineup

Establishing Cleanup’s position as “The Kitchen Company” by making high-quality
proposals - in life, function and materials - to a broad spectrum of society through ourcreation process.
Our standard brand as “TheHigh-Value-Added Products

A model allowing consumers toexperience the beauty ofstainless at a reasonable price.

“S.S. Light Package”

Luxury System Kitchen“S.S.”
Full MC Sept 2007

On sale May 2008

Mid/High-Quality System Kitchen“CLEANLADY”
Full MC Sept 2007

Company System Kitchen“COLTY”

Products aimed at customers who wantboth financial savings and added value.

New colors added June 2007
Popular System Kitchen“RAKUERA”
On Sale March 2008

High Price

Low Price

Highly functional, stylish, productdesigned for urban life with limited
space.

Kitchen Company”

A branded productallowing consumers toexperience Cleanup’s
high-quality.

Widespread Products
23

Ⅱ． Medium-Term Strategy Progress【New Product Introductions】 1) “S.S. Servo”“S.S. Servo”, Japan’s first motor-assisted kitchen drawers,
open with a single touch. (On sale February 1)
Even if your hands are full, wetor dirty, drawers will easily openwith just a slight touch fromyour knees or hip.

24

Ⅱ． Medium-Term Strategy Progress【New Product Introductions】 2) “S.S. Light Package”

A new product line infused with a condensed S.S. essence
Stainless, the best material for
kitchens●18-8 Stainless (SUS304)

S.S. Servo●Drawers open/close with apush/pull

Worktop Width Only
●Ｉ-Model Ｗ：2700, 2550

A simple realization of theessence of the kitchen25

Ⅱ． Medium-Term Strategy Progress【New Product Introductions】 3) “RAKUERA”“RAKUERA”, a new brand of the widespread system kitchen.
(On sale from March 31)【Design】
Sleek design【Function】
Standard equipment includes
lockable knife storage to protect
children and storage for dishtowels, etc.
【Diversity】
Based upon the grand concept of“happiness bringing forth‘delicious’ time”, many layoutplans are available to match abroad variety of customer
lifestyles.

26

Ⅱ． Medium-Term Strategy Progress

3. “ The Kitchen Company” ② Systems
Sales System●Strengthen development of the“Water Section Workshop”
Using currently-existing channels and promoting
new business models●Strengthen “showroom” functions

Creating Cleanup fans via showrooms and sparking real demandService System● “ Smile 20”, a 20-year support program
Fulfilling our social responsibilities
as a leading company● “ Cleanup Smile Members”

Improving customer satisfaction and cultivating“Cleanup” brand loyalty
27

Ⅱ． Medium-Term Strategy Progress【Water Section Workshop】■Trends in the No. of Registered Companies(Companies)

The number of registered“Water Section Workshop Member Stores”
total approximately 1,100(as of April 2008)

No. of stores holding
renovation seminars

995 stores

No. of renovation
fairs held

1,044 fairs

Customer attendance

22,000groupsRegistrations Began
Nov. 2006

2006

2007

2008

(The year from April 2007 to March 2008)28

Ⅱ． Medium-Term Strategy Progress【Cleanup Smile Membership】“Cleanup Smile Member”
program kicked off in Sept. 2007
Applicable
Products

S.S., CLEANLADY, Aqulia Bath products
delivered after Sept. 2007

【No. of Member Contracts】
Approx. 2,000 members(As of April 2008)●Public relations using the “Pika Pika Primer”(published Nov. 2007), a guide to product care.
●Strengthening productannouncements in the future
through various media
development, such as・Showrooms
・Home pages, etc.
29

Ⅱ． Medium-Term Strategy Progress

4. Business Process Reconstruction –1/2

① A revolution in the CAD design environment throughinformation/IT system investments●Establish a system capable of outsourcing to work-at-home contractors●Effective use of talented staff, beginning with Cleanup’s senior members

Simultaneously increasing business speed and reducing costs② “Kitchen Division” Reorganization【Previously】 Composed of separate organizations divided by function,such as development, production, etc.
【Currently】 Promoting unified operations within the “Kitchen Division” from development toproduction.

Clarifying responsibilities, clarifying “operating revenues”
30

Ⅱ． Medium-Term Strategy Progress

4. Business Process Reconstruction –2/2
③ Near completion of the Cleanup Group’s logistics reorganization●Cleanup Logistics Co. merged with Cleanup Transportation Co. on April 1, 2008.
【History of the Reorganization of Distribution Subsidiaries】
Aug 1969

Cleanup Transportation Co. establishedOct 2002

Cleanup Logistics Co. established as a non-asset(business model without Cleanup assets such as distribution centers, vehicles, etc.)

Nov 2002

Cleanup Transportation Co. merged with Tokyo Transportation and Storage Service Ltd.

Jan 2006

Cleanup Transportation Co. merged with Cleanup Okayama Transportation Co.

Apr 2008

Cleanup Logistics Co. merged with Cleanup Transportation Co.

A more efficient distribution business for the Cleanup Group31

Ⅱ． Medium-Term Strategy Progress

5. Constant Strengthening of Food/Housing Communication

Aiming, as “The Kitchen Company”, to redefine the kitchen as animportant place for the family over the medium term by evoking the“dietary education” of Japan, and to create future demand andincrease Cleanup brand value【Keyword】
Satisfying Lifestyle Proposals

Pursuing..
Product creation forsatisfying lifestyles
Information delivery
for satisfying lifestyles

32

Ⅱ． Medium-Term Strategy Progress

6. Other Efforts 1) Expansion of the Sanitary Business

System Bathroom “Aqulia Bath”●Positively rated on safety, technology andenvironmental issues, in addition to design, andreceived a Good Design Award●Added motor module compatible models (Feb. 1,
2008 ～)

Washstand “S”●The only stainless steel washstand in the world●Added new functions/new models (Feb. 1, 2008～)

Increasing market
share through theordinary route, andexpanding sales ofbathrooms,
washstands, andstorage to housemanufacturers andthe end user division33

Ⅱ． Medium-Term Strategy Progress

6. Other Efforts 2) CSR-Related“Cleanup Heartful Co. Ltd.”
February 8, 2008
Established as part of Cleanup’s CSR mission and for the purpose ofcreating employment opportunities for the disabled.
March 14, 2008
Received approval from the Minister of Health, Labour and Welfare asa preferential subsidiary based on the Law Concerning the Promotionof Employment of Disabled Persons. A notice of approval as apreferential subsidiary was received from the Chief of the Adachi
Public Employment Security Office.
34

Ⅱ． Medium-Term Strategy Progress

7. Creation of Home Living Space Services
Issues Promoted Thus Far
Establishment of business structure focusing on “Customer Relations” and developing internal
systems.
● Developing production, distribution, construction & service bases● Reforming internal systems/creating a showroom system

Distribution【Cleanup】
DesignCreating Attractive
Products

Sales

customer
support centers.

Product
Development

Technical
Development

Showrooms are

Production

Sales
ProposalsHome
Renovation【Customer Homes】

RelationshipStrengthening

Providing Safe,
Reliable Services

Construction

Maintenance35

For any questions concerning investor relations,please contact:

Cleanup Corporation
Public Relations Section
Tel 03-3810-8241
Fax 03-3893-9577
URL http://www.cleanup.jp/english/index.html

36Disclaimer
This material is intended to provide information regarding FY2007
financial results (April 2007 - March 2008) 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 14, 2008. 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.

37