YKK AP

President's Message

Becoming a company that builds a better society through sustainability management

Business Performance in FY 2020

Changing needs due to the COVID-19 pandemic will take us forward

The spread of the COVID-19 disease (COVID-19) threatened the health and day-to-day lives of people around the world and dramatically impacted the global economy. Our company, too, saw falling revenue and profits in FY 2020 as market volumes collapsed. However, the desire to improve residential environments among consumers who were subject to stay-at-home orders and travel restrictions led to increasing interest in windows, which presented us with opportunities for the future.
Especially in the Tokyo metropolitan area, demand for vinyl windows has grown greatly compared to the previous year. Disaster prevention products such as shutters are also performing well, and we anticipate further growth in exterior business. The commercial products business was severely impacted by the COVID-19 pandemic, but if the market recovers we may see growth in the three pillars of residential buildings, exteriors, and commercial buildings.

Taking on new work styles in the post-corona world

In our online sales activities, new contact points in the B2C sector have led to major successes. Our online exhibitions drew around 270,000 visitors, nearly six times our target. We are working to bolster systems to grow this sector further.
On the other hand, employee work styles have been significantly transformed by the COVID-19, and we are grappling with new issues arising from this, including measures to deal with stress amongst teleworkers, health and welfare for factory employees who cannot telework, and improvements to workplace environments.

Overseas operating company reorganizations completed; expectations for sales growth

In China, our target super high class estate market remained sluggish and sales were down. In America, the environment was tough for our core commercial architectural products, but we enjoyed our best sales year ever for residential architectural products.
As this was unfolding, in September 2020 we finished reorganizing YKK Group's 16 overseas AP business companies into our company. By integrating capital and business management, we aim to create a speedier management system that can increase overseas sales and expand our overseas business.

Sustainability initiatives

"Contributing to society" wins endorsement of employees

Our work on sustainability management and the endorsement we have managed to gain from employees for this policy direction is a major success. Our greatest strength is our employees' strength, and having their support is extremely important.
We believe that contributing to society leads employees to become more attached to the company, and leads society to recognize our meaning and importance. We will strive to develop products that meet such societal demands as health, disaster prevention/mitigation, and energy conservation. As well, we are aiming to become a carbon-neutral company by 2050, and to this end we are making investments and developing new technologies in a two-pronged approach aimed at reducing our own carbon emissions and raising the carbon-reduction contributions of our products.

Management themes from the mid- to long-term perspective

Sixth Mid-Term Management Plan Business Policy

The business policy of our new Mid-term Management Plan for FY 2021 through 2024 is "Providing Social Value through Products and Realizing Manufacturing Reform." We aim, more than ever, to be a company that society needs, with strengthened technology and products that meet societal demands. In this context, we are building new factories to bolster commercial products business and further increasing sales in the Residential Business. Furthermore, our newly established Machinery and Engineering has the facilities development and machine manufacturing engineering capabilities that will enable us to take on new technology development challenges, such as faster product development and smarter factories. We aim to leverage the effects of the overseas business reorganization to explore new markets and new businesses, seek out opportunities for alliances with other companies, and expand our business.

Products and businesses that build a better society

As the foundation of these businesses, we have formulated "Purpose" to highlight YKK AP's meaning and importance in society. "We Build a Better Society Through Architectural Products" expresses our commitment to contribute to society and solve social issues through our business. This idea will be shared with every YKK AP Group employee around the world, so we can produce products and businesses that "build a better society."

Hidemitsu Hori
President Representative Director