KOIZUMI GROUP C O M PA N Y P R O F I L E For the People, Community and the Future Message from the President For more than half a century, The Koizumi Group focused on distribution to the retail and wholesale home improvement market. Now we have more than one hundred sales offices in Japan and promote “community based” deployment of stores and “proposal based” communication in order to provide the most prompt, thorough and courteous service to our customers. In order to satisfy the needs in today’s modern world, our goal is to give priority to the following: the energy conservation and energy creation business, the “prostock” business which attracts attention as a home improvement convenient store, and our global business in Asia. We, Koizumi, as leaders in the housing industry of Japan, shall continue to change with the times and adapt to our customer’s needs, and develop steadily and flexibly based on those values which is to bring the most cutting edge and socially responsible products available to our society. President Koji Nagasaka Business Policy 01 Group Power Our group is formed by 9 subsidiaries, over 100 sales offices, and associated companies which have specialized functions. We will satisfy customers’ various needs through the high expertise of each company and the total power of our group. Service Network In Japan, our wide service network spans from the Tohoku area to the Tokai area. Each business is community oriented. Serving customers locally enables us to provide scrupulous service and support through speedy delivery and timely exchange of information for our customers. Partnership As we highly value communication with our customers, we organized “Izumi Kai”. This is a place where we hold seminars, where our customers can gather to exchange information and learn about new products. Another event to promote our partnership between Koizumi Group and our customers is our annual “Summer Sale” which is performed on a grand scale. Frontier Spirit Due to the rapid acceleration of energy problems and our high technology world, we at Koizumi are developing a flexible business which keeps up with the demands of our changing world. Service Network We have regional subsidiary companies that cover Tohoku, Kanto, and Tokai. Our subsidiary companies provide prompt and detailed systems for sales and customer service. We aim to be a best partner rooted in the local community by communicating with our customers. KOIZUMI GROUP CSR committee Construction Business Division Sales Division Business Management Division Engineering Dept. Koizumi Tohoku Administration Dept. Housing Facility Dept. Koizumi Chuo Account Dept. Izumi Technos Koizumi Tama Operation Guidance Dept. Reform Plaza Koizumi Koizumi Higashi-kanto System Dept. Cleantech Koizumi Koizumi Kita-kanto Management Planning Dept. Koizumi Chubu Environment Dept. Koizumi Kanagawa Koizumi Shoji Koizumi Sagami Hanah Mountain Resort Koizumi Tokai Auditing Dept. Japan Ecology Business Promotion Dept. Sougou Denzai Electrical materials Promotion Office Prostock Dept. Purchasing Dept. First Purchasing Center Second Purchasing Center Global Business Dept. Steel Sheet Dept. Product Development Dept. Koizumi Korea Koizumi Machinery Nantong Wang On Metal Manufacturing Koizumi (Shanghai) Special Sales Dept. Miyagi Tohoku area Fukushima Tochigi Gunma Ibaraki Nagano a-kanto area a-ka a Kita-kanto Saitama Chubu area Ch ea Tokyo Tama are area yamanashi Kanagawa Higashi-kanto area He ad office Head Chuo C huo area Chiba Kan Ka nag Kanagawa area ami area am are Sagami Shizuoka Tokai area Toka ea 02 Business Outline As a wholesaler, Koizumi’s role is to link our customers who are engaged in the housing industries such as plumbers, electricians and construction companies to various manufacturers. We have an abundant product line of both domestic and imported items. They are classified into four groups: Piping materials; Housing and facility equipment; Architectural materials and Electrical materials. We, as a general trading company promptly deliver products ordered by customer through daily sales. Our highly trained staffs continually strive to keep our customers informed with the latest product developments in anticipation of their needs. As a result we are confident that our role has led to the creation of comfortable homes and rich lives for the people and communities. Products We have various kinds of high quality products. Our motto is “You can get anything you are looking for, at anytime, and anywhere”. Our experienced employees select products that will completely satisfy our customer’s needs. Piping materials Couplings Pipes Measuring instruments 03 Pumps Faucet metal fittings Valves Housing and facility equipment Toilets Lighting Bathroom vanities Modular baths Air-conditioning equipment Architectural materials Floor materials Wooden fittings Built-in kitchens Wall materials Electrical materials Apparatus for wiring Electrical wires Others Solar photovoltaic systems Tools for electrical construction Main suppliers Energy-saving equipment TOTO LTD. LIXIL Corporation SEKISUI CHEMICAL CO., LTD. Noritz Corporation TAKARA STANDARD CO., LTD. Cleanup Corporation Panasonic Corporation Maezawa Kyuso Industries Co., Ltd. EBARA CORPORATION JFE SHOJI KOHKANKANZAI INC. Corona Corporation Toshiba Carrier Corporation Daikin Industries, Ltd. DAIKEN CORPORATION KITZ CORPORATION Koudensha Co., Ltd. 04 Group Businesses Sales support system Prostock Engineering Department Prostock sells products and tools to the professional builder who installs water systems, electrical systems, heating and air-conditioning systems, gas pipes and related equipment by cash or credit card. They are open all year round, and provide customer satisfaction through long business hours and a large inventory. As a primary subcontractor for a construction firm, the Engineering Department is engaged in indoor finishing work around water use spaces such as modular baths, built-in kitchens, and vanities in apartments, or hotels. They provide consistent service from design to construction and to maintenance. Special Sales Department Housing Facility Department Special sales department, who is in charge of the wide area business in the Koizumi Group identifies and generates sales leads of new large market in support of the housing equipment sales offices. In spite of the relatively weak industry for the existing Koizumi’s sales offices, the special sales department finds new business by integrating sales promotions with the customer’s headquarters. After starting the new business, they continue to support the operating activities of each sales office. Housing Facility Department is engaged in the design, construction and management of plumbing and gas fitting works in the construction of new homes, land development, and home remodeling. They work with major home builders and give preference to the plumber who has a relationship with Koizumi. Japan Ecology Japan Ecology sells solar power generation systems for residences and industrial businesses. Their goal is to support customers in selling solar power generation systems and widely market the benefits of them. In addition, Japan Ecology participates in promotional events and also conducts field survey, cost analysis, and the support of how to apply for subsidized funding. Sougou Denzai Sougou Denzai, Koizumi’s own electrical division, sells electrical materials to electrical contractors and subcontractors and is engaged in electrical works by themselves. As the fourth pillar of Koizumi Group marketing strategy, Sougou Denzai also supports Koizumi’s electrical sales in each office. 05 Construction/Facility Business Izumi Technos Izumi Technos is engaged in the remodeling of water supply and drainage pipes in apartments or buildings. This includes the design, construction and installation of air-conditioning and exterior work, for the purpose to increase the value of the building. The “mobile ribbon method” and the “mobile hybrid method” are Izumi Technos’s own original technology which extends the longevity of service and drainage pipes. Reform Plaza Koizumi Reform Plaza Koizumi is engaged in the construction of new construction, remodeling, interior and exterior for the single family home, condominium in the metropolitan area. Their specialized staffs who are highly knowledgeable and experienced are trained to deal with consultation, planning, design, construction and maintenance. Cleantech Koizumi Steel Sheet Department Cleantech Koizumi is engaged in the development and sale of various cleaning systems including carpet cleaning machines. They satisfy the customers’ needs by developing original apparatus such as high temperature high pressure suction cleaning systems and the suction system for decontamination, etc. Steel Sheet Department mainly deals in steel products such as hot rolled steel sheets, stainless steel sheets, and steel plates. They not only have imported steel products from Korea and China but they also export Japanese made products to Korea. Their business will not be limited to just steel products as they are expanding new products to this region. Koizumi Korea Global Business Product Development Department Product Development Department is currently importing and distributing cast iron and aluminum from China. They are also developing products for home use, from electronics to house hold goods, to be manufactured in China, for sale to the rapidly growing Chinese market. KOIZUMI (Shanghai) Koizumi (Shanghai) is the main office of Koizumi’s Chinese business enterprises and provides important business information to our clients. They sell products in China as well as providing valuable information and support to Japanese corporations and other foreign corporations that do business in China. KOIZUMI MACHINERY Koizumi Machinery manufactures various parts, such as cast iron and aluminum casting parts for major domestic and foreign manufacturers. These include the manufacturing of precision large scale parts for wind power generation systems. This is a strategic production base of the Koizumi Group in China. Koizumi Korea, a base of the Koizumi Group in South Korea, deals in steel materials and building materials for South Korean home sales, and also for the export and import among Japan and China. Hanah Mountain Resort Hanah Mountain Resort includes managing a golf course and resort hotel in the Catskill Mountain area which is located in upstate New York. Blessed with a beautiful natural environment, Hanah was chosen as one of the best 17 out of 700 northwestern United States public golf courses by Golf Digest Magazine. Environmental Business Environment Department Environment Department is engaged in comprehensive eco-business consulting, such as decontamination, soil remediation, water quality, soil analysis. It also assists in popularizing energysaving items through the energy-saving diagnosis for individuals and corporations, subsidy application support, as well. 06 Financial Data Koizumi Group sales and profits have reached the highest level ever for the fiscal year ending March 2014 due to the economic recovery in Japan and the high demand before sales tax increase. Trends in results in the past three years (consolidated) (unit : million yen) 2012 Sales 2013 2014 127,729 130,416 142,231 20,519 20,656 22,724 Operating profit 4,467 3,778 5,113 Pretax profit 4,527 4,928 7,089 Gross profit Trends in ratio of main profits to sales in the past three years (consolidated) 5.5% 5.0% 5.0% 4.5% 4.0% 3.5% 3.5% 3.8% operating profit 3.6% pretax profit 3.0% 2.9% 2.5% 2.0% 2012 2013 2014 Segmental Sales Breakdown in the past three years (unit : million yen) 2012 2013 Koizumi(non-consolidated) 109,320 112,062 123,005 9 subsidiaries 111,329 113,246 122,561 5,672 6,532 7,483 ▲98,594 ▲101,425 ▲110,819 127,729 130,416 142,231 6 associated companies Intra-group transaction Total Sales composition of 9 subsidiaries by item (as of 2014) electrical material 1% others 13% architectural material 6% piping material 19% housing and facility equipment 27% sanitary fitting, metal fitting 15% air conditioner 10% 07 2014 pump, tank 4% water heater 7% Compliance The booklet “The compliance of Koizumi Group” was developed and distributed to the employees in order to fulfill social responsibility by observing laws and regulations. And periodic compliance study meetings are held in all offices. In addition, we have formed a reporting contact office for compliance. By raising all the employees’ consciousness to compliance, we aim at building customers reliance and an attractive workplace. The compliance of Koizumi Group 1 Building Customers Reliance 2 3 Fair and Healthy Action 4 Contribution to society and Action to environmental problems So that we can gain the customer’s reliance, we provide goods and a distribution service which is helpful to society, with a high-safety consideration, protection of personal information and customer data. We provide a fair transparent business based on a free enterprise. Respecting Employees We provide a comfortable and great work environment for our employees. We also try to give them purpose so that they can fully exercise their full potential. We strive to contribute to society as good corporate citizens and tackle environmental issues with vigor and determination. CSR We also tackle with CSR activity positively. We began to introduce the hybrid car and the electric car. In addition, we cooperate on various eco activities, such as recycling women’s uniforms, participation in the national movement called the “challenge 25 campaign,” aiming at the reduction of greenhouse gases. We are also involved in the “blue and green project” at popularizing energy-saving efficient gas water heaters for planting trees. Furthermore, we also contribute to sport, culture and art promotion activities, such as advertising in the Tokyo Dome, cooperating with the Japan Guide Dog Association, and participating in the film production committee of “HakujinohitoTAKUMI, the man beyond borders” which aims at promoting a friendly relationship between South Korea and Japan. 08 Corporate Profile Company Name Major Business President Address TEL FAX Website Foundation Establishment Capital(consolidated) Annual Sales(consolidated) Number of Employees(consolidated) Number of Group Companies KOIZUMI Co., Ltd. Housing and facility equipment trading and related business Koji Nagasaka 32-5 Ogikubo 4Chome, Suginami-ku, Tokyo 167-8555 JAPAN +81-(0)3-3393-2511 +81-(0)3-3393-1240 http://www.koizumig.co.jp August, 1910 April 18, 1947 2,931 million yen 142,231 million yen(as of 2014) 2,019 15 Executives President Koji Nagasaka Executive Vice President Go Nagasaka Managing Director, General Manager of Business Management Division Takehiro Goto Managing Director, General Manager of Sales Division Miyoshi Ishii Managing Director, President of Koizumi Kita-kanto Hiroshi Kotaku Director, Supervisor of Special Sales Department Suetaka Shimanoe Director, Supervisor of Prostock Department, President of Japan Ecology Kazuaki Gomi Director, Manager of Purchasing Department Tokufusa Ida Director, President of Koizumi Chuo Tadashi Suzuki Director, President of Koizumi Tama Eiji Suzuki Director, President of Koizumi Higashi-kanto Mitsuhiro Iino Director, President of Reform Plaza Koizumi Osamu Oshiba Auditor Hideaki Takayanagi Part-time Auditor Goro Aoki Adviser Hidemasa Yamagata Our Banks Mizuho Bank, Ltd. Ogikubo Branch The Bank of Tokyo-Mitsubishi UFJ, Ltd. Corporate Banking Division No.10 Shinsei Bank, Ltd. Corporate Banking Business Division II The Yamanashi Chuo Bank, Ltd. Ogikubo Branch The Tokyo Tomin Bank, Ltd. Asagaya Branch 09 History 1947 1967 1969 1970 1971 1973 1974 1980 1986 1987 1989 1993 1994 2000 2003 2006 2008 2010 2012 Established as Koizumi store Co., Ltd. Established Saitama Koizumi (Koizumi Kita-kanto now) Co., Ltd. Changed name to Koizumi Co., Ltd. Established Kanagawa Koizumi (Koizumi Kanagawa now) Co., Ltd. Established Ibaraki Koizumi (Koizumi Higashi-kanto now) Co., Ltd. Established Sagami Koizumi (Koizumi Sagami now) Co., Ltd. Established Yamanashi Koizumi (Koizumi Chubu now) Co., Ltd. Established Izumi lining (Izumi-technos now) Co., Ltd. Established Kitchen Plaza Koizumi (Reform Plaza Koizumi now) Co., Ltd. Established Shizuoka Koizumi (Koizumi Tokai now) Co., Ltd. Opened the Hanah Mountain Resort Established Koizumi Chuo and Koizumi Tama Co., Ltd. Established Cleantech Koizumi Co., Ltd. Established Koizumi Tohoku Co., Ltd. Established Koizumi (Shanghai) Co., Ltd. Celebrated the 60th anniversary of foundation Established Koizumi Machinery Co., Ltd. Japan Ecology Co., Ltd. joined the Koizumi Group Sougou Denzai Inc. joined the Koizumi Group Management Philosophy 1 2 3 4 The Koizumi Group offers a distribution service that provides home improvement products to promote value in daily life and the welfare of society. Our employees strive to contribute to society with consciousness and pride. We strive to respect the humanity and build an attractive workplace. Our business activities are based on ethics, observing law and regulations and an awareness of our social responsibilities. 10 32-5 Ogikubo 4Chome, Suginami-ku, Tokyo 167-8555 JAPAN TEL +81-(0)3-3393-2511 WEB http://www.koizumig.co.jp