Last Updated: May 9, 2023
Presentation of Financial Results for FY2022 and the FY2023 Management Plan
About the non-compliance of apartment buildings and detached houses with Japan’s Building Standards Act
(Kamiyoshi) Investigations into the cause are currently underway. We are looking closely at a number of factors, including instructions at the time of construction, the status of construction management, contractor training records, and inspection methods.
(Kamiyoshi) Although conducted by manufacturing subsidiaries on an annual basis, inspections to date have not included checks on the dimensions of actual assembly screws. The issue at hand was uncovered following a voluntary quality inspection by a manufacturing subsidiary.
(Kamiyoshi) In addition to inspections, we are undertaking all necessary corrective work. Drawing from this incident, we will work diligently to prevent a recurrence by designing parts and establishing an effective inspection system.
About the HPP Company
(Shimizu) Automotive-related products are forecast to contribute ¥4 billion and aircraft-related products ¥2 billion. In each case, we are looking at improvements in selling prices at the time of long-term contract renewal. The effects of these improvements will emerge throughout FY2023.
- *HPP Company：High Performance Plastics Company
(Shimizu) The Company re-sells the acetic acid produced as a by-product during its PVA manufacturing process. We are anticipating an imbalance between the supply and demand of acetic acid in FY2023, which is expected to lower selling prices.
About the Housing Company
(Kamiyoshi) Housing prices have been progressively revised owing to the surge in component costs. The effects began to significantly emerge from the 2H of FY2022 and are expected to continue throughout FY2023. We anticipate seeing incremental growth in apartment buildings and smart facilities as well as the effects of factory integration continue to emerge in FY2023.
(Kamiyoshi) Construction sentiment fell substantially owing to the higher-than-expected increase in consumer prices amid the prolonged impact of COVID-19. This had a negative impact on first-time buyers, who had previously served as a driving force, and especially on orders for subdivision houses, which in turn led to a decline in the number of houses sold in the 2H.
About the UIEP Company
(Hirai) Revisions to the prices of piping materials saw considerable progress in FY2022. We have also taken steps to revise the prices of fire-resistant, FFU, and other products from the 2H. We anticipate the effects of these endeavors will emerge from FY2023.
- *UIEP Company : Urban Infrastructure & Environmental Products Company
(Kato) On top of the annual increase in wages, human capital investments include additional salary increases as well as outlays to upgrade and expand reskilling endeavors, including educational programs. Looking at DX initiatives, as one example, and the introduction of new accounting systems, fixed costs are projected to increase owing to various reskilling and other human capital investments aimed at developing the necessary human resources to address these initiatives.