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Presentation Material:

Announcement of FY 2015 Interim Results
２０１２年１１月２０日
November11, 2015

0Ⅰ. Interim Results Outline

11. Outline of Consolidated Results for Interim Period Ended September 2015
(Units: millions of yen)

2015/92014/9Net Sales

56,39360,377△6.6％

58,000△2.8％

Operating
Income398

2,517△84.2％

890△55.3％

Ordinary
Income276

2,316△88.1％

710△61.1％

Profitattributable toowners of parent

83

725

△88.5％

370△77.6％

2.01yen

16.78yen△88.0％

8.90△77.4％

Change From
2015/9 ToCompared
Revised Plan
(Actual Results) (Actual Results) Prev. Period (Previous Forecast)Interim
Net Income
Per Share＊Previous Forecast: Announced May 11, 20152

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

60.37

56.39

Net Sales△3.98 billion yen【Main Increase/Decrease Factors】● System Kitchens● System Bathrooms● Washstands/Vanities△3,660 million yen△ 230 million yen△ 250 million yen●Decrease Due to Decreased Net Sales

39.64

37.98

（65.7）（67.4）

Cost of Sales△ 2,620 million yen●Increase Due to Increased Cost of Sales Ratio＋ 960 million yen△1.66 billion yen●Increase in S.S., CLEANLADY Cost Ratio

Cost of Sales Ratio

＋1.7％
20.74

18.41

（34.3）（32.6）

Gross Profit△2.32 billion yen

0

2014/9＋ 0.1 point●Increase in RAKUERA Cost of Sales Ratio＋ 0.3 point●Decrease in System Bathrooms Cost of Sales Ratio△ 0.0 point●Supply segment＋ 0.4 point●Increase in Price of Raw Materials＋ 0.3 point＋ 0.6 point●Cost Decrease●Decrease Due to Decreased in Net Sales●Decrease in Gross Profit Ratio△ 1,360 million yen△ 960 million yen

2015/93

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

【Increased/Decreased Values (Rates)】

20.74
18.41

Gross Profit△2.32 billion yen
SGA Expenses

18.22

18.01

（30.2）（31.9）△0.21billion yen

SGA Ratio

＋1.7％

2.52

0.40

（4.2）

（0.7）

2014/92015/9-500

Operating Income【 Main Increase/Decrease Factors 】●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses＋ 180 million yen△ 350 million yen△ 210 million yen＋ 170 million yen●Sales Expenses●Distribution Expenses●Personnel Expenses●Administrative Expenses＋ 0.6 points△ 0.2 points＋ 0.6 points＋ 0.9 points●Decrease in Gross profit●Change in SGA Expenses△ 2,320 million yen＋ 210 million yen△2.12 billion yen
43. Sales Composition ① By Segment (Consolidated)

Kitchen Equipment

Bathtubs & Washstands

Other(Units: millions of yen)Other

140,000

114,000

116,239
120,000

6,091 5.2％

6,135 5.4％

18,95318,925 16.6％
16.3％

100,000

80,00060,377
2,998
10,22860,000

2,971
9,745

78.5％
91,19588,940Bathtubs &17.3％
Washstands

77.5％

Kitchen Equipment【2014/9】
78.0％

Other

5.0％

Bathtubs & 16.9％
Washstands

43,67720,0000

5.2％

56,39340,00047,151【2015/9】

78.1％

Kitchen Equipment
2014/92015/9(Current Interim Period)

2015/3

2016/3（Term-End Forecast）

5

3. Sales Composition ② By Sales Route (Non-Consolidated)【Full-Term Base】
Direct-S ales (Con domin iu m own ers)
Hou sin g Con stru ctors

3.8％

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

15.6％

4.8%

5.3%

16.1％

16.0%

【First-Half Base】
2.5％
15.9％

81.6％

2.6％
15.7％

5.1％
15.7％

81.7％

79.2％

80.6％

79.1%

78.7%

0

0

2013/92014/92014/3

2015/3

2016/3（Term-End Forecast）

2015/9(Current Interim Period)

6

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

【Increased/Decreased Values】【Assets】

100

87.10

86.06

86.37

Total Assets＋0.31 billion yen
75

Current Assets

47.95
47.39
49.95

Cash and Deposits
Notes and Accounts
Electronically Recorded
Monetary Claims【 Main Increase/Decrease Factors 】●Current Assets●Fixed Assets△ 130 million yen＋ 440 million yen●Cash and Deposits＋ 790 million yen●Notes and Accounts Receivable ＋ 130 million yen●Electronically Recorded Monetary Claims△ 360 million yen＋0.56 billion yen

50

Inventory
3.24
5.28

3.78

3.82

4.80

4.05

●Increase in Direct-Sales Inventory (Overseas)＋0.04 billion yen
Other Current Assets●Decrease in Securities△ 700 million yen●Tangible Fixed Assets●Intangible Fixed Assets●Securities Investments＋ 500 million yen＋ 180 million yen△ 230 million yen

25△0.74 billion yen
28.63

30.09

30.54

Fixed Assets＋0.44 billion yen
0

2014/9 2015/3 2015/9
7

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

87.10

24.64

6.44

56.02

86.06

23.08

6.46

56.50

86.37

●Short-term Borrowing＋1,170 million yen

Current Liabilities●Accounts Payable-Trade△ 150 million yen＋1.33 billion yen●Accounts Payable-Other＋610 million yen

Long-Term Liabilities● Long-term Borrowing△ 500 million yen

24.42

5.90

56.05

△0.57 billion yen

Total Net Assets△0.45 billion yen●Interim Net Income＋ 80 million yen△
420 million yen●Dividends●Decrease in Valuation difference on
available-for-sale securities△ 100 million yen

0. 00

2014/9 2015/3 2014/9
8

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

Interim (Year-End) Cash & Cash Equivalents Balance

30. 0024.68 23.58

25. 00

24.37

＋7.9

（2015/3）

Compared to Year-End Balance
20. 00

15. 00

10. 00

＋8.9

5. 00

1.64

0.75

0.20

0. 00

＋9.6

△ 2.02△ 5. 00△ 1.06＋55.5△ 5.35△ 10. 00

2014/92015/99

6. Capital Investments (Consolidated)

R&D Costs(Units: billions of yen)

Capital Investment

Deprecation Costs【FY2015 Major Capital Investment Details】
8.0

First-Half Results① Production Equipment 1,040 million yen
860 million yen② Showroom Renovation

5.80

6.0

③ Information Investment

530 million yen④Others

130 million yen

4.48

4.0

3.55
3.01
2.56

2.0

1.78

1.65

1.42

1.18

0.0

0.59

0.56

2014/92015/92015/3(Current Interim Period)

Second-Half Plans① Production-Related

1,550 million yen② Operations-Related

790 million yen③ Information-Related

820 million yen④ Others

80 million yen

1.00

2016/3（Term-End Forecast）

10

7. Outline of Non-Consolidated Results for Interim Period Ended September 2015

(Units: millions of yen)

2015/92014/9(Actual Results)(Actual Results)

Change From
Prev. Period

Net Sales

53,47657,435△6.9％

Operating
Income282

2,416△88.3％

Ordinary
Income403

2,519△84.0％

Interim
Net Income

212

1,151

△81.6％

5.11yen26.61yen△80.8％

Interim Net Income
Per Share118. Non-Consolidated Sales Composition By Segment
Kitchen Equipment
Washstands

Bathrooms
Industrial Kitchen Equipment【2015/9】(Units: millions of yen)
120,000

110,377
5,079
905
4,757

100,000

4.6％
0.8％
4.3％

14,19512.9％

108,000
5,103
631
4,710

4.7％
0.6％
4.4％

14,195

13.1％

Industrial Kitchen
Equipment
Washstands

0.5％

Other

5.0％

4.3％
KitchenEquipment

14.0％
Bathrooms

76.2％

80,00057,4352,086
2,526

60,00053,476
142

7,701

2,704
2,277

296

7,468

【2014/9】

77.4％
85,441

83,361

77.2％

40,00044,980Industrial Kitchen
Equipment
Washstands

13.4％
Bathrooms

2014/92015/9(Current Interim Period)

2015/3

3.6％

4.4％

40,731

20,000

0

0.3％

Other

KitchenEquipment

78.3％

2016/3（Term-End Forecast）

12

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

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

100

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

400

Volume1,400

89.2
82.5 80.4

77.3

80

64.4 66.2

244
244

228
800

217
166

181

1,019

1091

1,121

25.0

1,000

60

40

1,227 1,200

1,200

300

69.7

（％）

30.0

195

17.8

17.9

19.4

19.9

20.3

20.0

19.3

200

39.3

600

15.0

10.0

11.2
◆

584

100

400

20

5.0

200
Current Interim Period0010/3 11/3

12/3

13/3 14/3

15/3 16/3（Forecast）

0

0.0

11/3

12/3

13/3

14/3

15/3

15/9

(Current Interim Period)

13

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

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

20

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

50

1,000

17.7
15.8
14.1

15

12.7 12.9

40

34

30
10

800

14.0 14.0

35

10.0

839

43

38

（％）

33

688
30

731

8.0

739

600

6.0

27
7.3

745

4.8

5.1

5.1
4.6

4.8
375

20

400

10

200

2.0

0

0.0

4.3

4.0

◆

18
5

Current Interim Period

0

0

10/3

11/3

12/3

13/3

14/3

15/3

16/3
（Forecast）

11/3

12/3

13/3

14/3

15/3

15/9

(Current Interim Period)

14

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

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

6

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

150

Volume

2,000

1,828

5.4
5.1
5

4.5

4.7

4.8

4.7
109

4

98

4.7

120

1,600

1,521

90

1,200

6.4

1,609

（％）

10.0

1,768

1,655
8.0

109

99

93

91

92

6.2

6.6

6.0

5.1

6.0

3

5.3
2.3

2

863

60

800

4.0

30

400

2.0

0

0.0

◆

50

1

Current Interim Period

0

0

10/3

11/3

12/3

13/3

14/3

15/3

16/3

（Forecast）

11/3

12/3

13/3

14/3

15/3

15/9

(Current Interim Period)

1510. Forecasted Consolidated Results For The Period Ending March 2016
(Units: millions of yen)

2015/3

2016/3(Actual Results)(Forecast)

Change From
Prev. Period

Net Sales

116,239

114,000△1.9％

Operating
Income

3,028

1,500

△50.5％

Operating Margin

2.6％

1.3％

-

Ordinary
Income

2,703

1,260

△53.4％

Ordinary Income
Margin

2.3％

1.1％

-

883

600

△32.1％

0.8％

0.5％

-

Profit attributableto owners of parent
Net Income
Margin16

Ⅱ. Future Strategy

17

1. Management Environment(Units)（％）

Increase of consumption
tax rate（5％→8％）

Negative growth for 12 consecutive months

2013

2014

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

2015
18

2. Summary of New “Medium-Term Management Plan 15” (1)The new medium-term management started from this fiscal term, with the outcome of the previous
medium-term management plan and changes to the business environment taken into accountPrevious medium-term management plan
“Medium-term Management Plan 12”(For FY2012 to FY2014)

New Medium-Term Management Plan

Create a foundation for a dedicatedkitchen manufacturer

Expedite fundamental reforms for further
growthEstablish“The Kitchen Company"

Master the art of“The Kitchen Company”"Medium-term Management Plan 15”(For FY2015 to FY2017)19

2. Summary of New “Medium-Term Management Plan 15” (2)○ Fundamental concept and Key policies“Second Chapter” of Second Business Inauguration“Accelerate fundamental reforms for further growth”
Fundamental reforms

Growth strategies① Profit structure improvements● Timely supply of products that conform to market needs.
● Execution of strategies for acquiring competitive advantage
in renovation market.
● Realization of profit cost structures② Evolution of management base
● Realization of high productivity through improved efficiency
of operational duties and structures.
● Creation of people and brands that only dedicated kitchen
manufacturer can achieve.
● Promotion of business activities with social missions.
● Enhancement of governance framework and stabilization of
returns to shareholders.

● Expansion of overseas
business operations● Expansion of existing
business domains● Challenging activities forestablishment of new
business operations20

3. Strategy Implementation Status: “Product Related Issues” (1)Craftsmanship Leveraging the Strengths of a Specialist Manufacturer【Renewal Schedule】● 「CLEANLADY」

High-Value-Added Products（May 2015 -）＊ 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● Bathroom vanity “Tiaris” and “BTG”“S.S.”“S.S. Light Package”“CLEANLADY”
Popular System Kitchen

The first stainless steelcabinet in the mid-level class.

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

High Price

Low Price

Mid/High-Quality System Kitchen

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

Widespread Products
21

3. Strategy Implementation Status: “Product Related Issues” (2)“NEW CLEANLADY”

Implement a full model change for Cleanlady products and launch the new line in May.

The "mother of Ultraman" was hired for television commercials,
based on the concept "women who perform activities in thelimited time available are the heroes of our families".
Develop a new function in pursuit of cleanliness by focusing on
the "litter and contamination", which remains in the "sink" thatis used to wash vegetables and dishes, based on surveys
conducted with housewife monitors.

[Terrestrial television broadcasts]
Spot commercials (15 seconds)
September 5 (Saturday) onwards[Satellite television broadcasts]
Spot commercials (5 minutes)
September 13 (Sunday) onwards

22

3. Strategy Implementation Status: “Sales Related Issues” (1)“Cleanup Kitchen Town Tokyo”

Launched October 3

The flagship showroom of the Tokyo metropolitan area has been extended and completely renovated.
Main Concept
Wonderful living starts in the kitchen!
Compathic showroom is used to provide the experiencelavish lifestyles
Lifestyle walk
Each booth inside ashowroom is connected
to another via a "loop"(elliptical).

2

5 Kitchen studio

Renovation corner3

4 Kitchen simulator

The latest case examples in
the Tokyo metropolitan area
are introduced with images

Flagship showroom
for eastern Japan

From July 2012

From October 2015

Kitchen Town
Osaka

Kitchen Town
Tokyo

1

Welcome Kitchen& Living Room

A corner where visitors canexperience their desired
kitchen in an actual full-scale
model

Flagship showroom
for western Japan

Kitchen studios, which can beused to provide cooking
demonstrations, haveincreased in number from one
unit to three units

Simulations are provided in
actual full-scale sizes with thelatest projection mapping, using
the "Kitchen Vision Sheet" (newimplementation)23

3. Strategy Implementation Status: “Sales Related Issues” (2)Enhanced appeal is promoted through the continuation of the proactive refurbishmentof showrooms across the nation● Linchpin for point of contact with customer
Positioning of roles
played by showrooms ● Most essential site for incorporating demand for renovations(site utilized for the implementation of renovation fairs in collaboration withthe "Water Section Workshops" members)● Essential sites for brand strategies are embedded in local communities(site utilized as a place for food education activities)

Transition in the number of refurbished showrooms(Number of sites)

55
Toyohashi Showroom48

Okazaki Showroom

39

Ishinomaki Showroom

Fukuchiyama Showroom

Sustained
implementation
for refurbishingall 101 sites

18
4

Sendai Showroom

Fukuyama Showroom

24

3. Strategy Implementation Status: “Sales Related Issues” (3)The strategy implementation is enhanced with a thoroughmechanism to draw in demand for renovations
Transition in the number of full members registeredwith "Water Section Workshops“(organize building contractors and renovators in the respective regions)(Number of companies)
4,500

3,950

4,000

3,390

3,500
3,000
2,500

4,259

2,507

2,854

2,068

2,000
1,500
1,000
500
0
2011/3

2012/3

2013/3

2014/3

2015/3

2015/9Implementation ofrenovation fairs● Implement renovation seminars for sub-customers
in cooperation with strong local firms● Implement renovation fairs with strong firms/
sub-customers as sponsors

Renovation seminar(in collaboration with distributors)
25

3. Strategy Implementation Status: “Brand Related Issues” (1)“Food Education Activities” provided by CleanupAwarded the “Food Safety and Consumer Affairs Bureau Director’s Award” at the “Third Superior
Shokuiku Activities Awards for Food and Agricultural, Forestry and Fisheries Industries”.

Reason for receiving award

Positive evaluation for “undertaking multilayered activities to promote
the Japanese food lifestyle through activities led by headquarters, aswell as through community based activities implemented through theutilization of 101 showrooms across the nation”.

Following are some of the activities that led up to receiving
the award (principal activities thus far):● Activities based on the foundation of the brand statement,“Smiles Are Made in the Kitchen”.
● Activities of the “Oishii Kurashi Kenkyusho”(“Tasty Life Research Institute”, established in 2009).
● Periodical implementation of “Smiles Are Made in the Kitchen
Academy” (seminars given jointly in collaboration with
universities).
● Participation in the “Bento Day Support Project”.
● Implementation of community based cooking classes atshowrooms across the nation.

26

3. Strategy Implementation Status: “Brand Related Issues” (2)“Food Education Activities” of Cleanup: Principal activities
in the first half of the current fiscal term
Wakuwaku Kitchen! (Exciting Kitchen)
Food Transformation Class

Obento Contest
Iwaki City, Fukushima Prefecture (Sep. 27)

Minamiaoyama Kitchen Studio (Aug. 22)

The Shokuiku activity was launched to provide
an opportunity for consumers to becomeaware of the pleasure of eating by learning tocook for themselves.

● Implemented targeting elementary school students
in the city
● The Shokuiku activity was inspired by our desire to
support the healthy growth of children and therestoration of the "food culture", following thedisaster.
● Implemented jointly in collaboration with a local
supermarket chain, Maruto Co., Ltd.
27

3. Strategy Implementation Status: “Overseas Business Capabilities”●China

The market is entered jointly with a house manufacturer. The supply ofKitchen products were supplied to four districts, Shenyang, Suzhou, Wuxi
and Taicang.

Shenyang
Beijing

Iwaki●Taiwan and Vietnam

Primarily medium to high class products (S.S. CLEANLADY) were
exported and sold to local distributors.
The sales activities extended to corporate customers and consumers
were generally carried out through the showrooms of distributors.
The local representative office continues to provide support to the
distributors and efforts are focused into increasing sales.

●Other Asia

Tokyo
ShanghaiTaipeiHanoi

Primarily medium to high class products (S.S. CLEANLADY) were
exported and sold to local distributors.

OkayamaHong Kong

Ho Chi Minh City

Condominium in Suzhou, China

Condominium in Taipei, Taiwan

Condominium in Hanoi, Vietnam28

4. 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

The aim is to become a businessenterprise engaged in business
operations, not solely for the purposeof pursuing economic gain, but also
for making proactive social andcultural contributions, while
appreciating the concern of individual
persons, families and society.

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.

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

29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/30

Disclaimer
This material is intended to provide information regarding FY2015
Interim Results (April 2015～September 2015) and does not constitutea solicitation to invest in Cleanup Corporation-issued securities.
Furthermore, this material was created based upon data current as ofNovember 11, 2015. 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 tochange without prior notice.

31