Strategy

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During the fiscal year under review (January 1, 2018 to December 31, 2018), the gradual trend of economic growth has continued in Japan while uncertainty over the entire global economy and fluctuations in financial and capital markets demanded attention.
Under these circumstances, the Group worked on “operation model reform” to realize customer-oriented value creation and “development of the ability to sustain profitability” to enable mid- to long-term sustainable growth in the final year of the “Self-reform focused on value creation - Value Transformation 2018” mid-term management plan.
Net sales decreased to ¥315.1 billion (down 0.1% year on year) following a decline caused by the transfer (*) of the store business that handled manufacturing and sales, etc. of store fixtures and a decline in stationeryrelated business despite strong sales of office furniture. Gross profit increased to ¥112.6 billion (up 2.3% year on year) following continuous promotion of measures focused on bolstering the gross profit rate, such as cost cutting. The gross profit margin rose to 35.7%, an increase of 0.8 points. On the other hand, selling, general,
and administrative expenses were ¥ 94.3 billion (up 1.9% year on year), and the ratio of selling, general and administrative expenses to net sales was 29.9%. As a result, operating income increased to ¥18.2 billion (up 4.0% year on year). Ordinary income increased to ¥19.1 billion (up 0.3% year on year). Profit attributable to owners of parent for the fiscal year under review declined to ¥14.2 billion (down 5.1% year on year) following a rebound from a decline in corporate taxes, etc. which fell due to the re-evaluation of the possibility of recovering deferred tax assets in the previous fiscal year.
* We spun off our store business on January 1, 2018, that includes manufacturing and selling fixtures, from our Furniture Segment and had it succeeded by Sankyo Tateyama, Inc.


Hidekuni Kuroda Representative Director of the Board, President and CEO
Hidekuni Kuroda
Representative Director of the Board,
President and CEO

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