WOOD ONE CO ,LTD.

Business Details

In addition to manufacturing and selling comprehensive wood-based building materials such as flooring and interior fittings, along with housing equipment such as kitchen appliances, the segment also conducts forest management including afforestation. It is characterized by an integrated production system including overseas subsidiaries in New Zealand and Indonesia. While the domestic new detached housing market remains the mainstay, the segment is pursuing diversification into renovation, non-residential, and overseas markets. The Indonesian subsidiary has performed well in exports to the U.S./Europe and domestic markets, while the New Zealand subsidiary is undergoing business restructuring due to declining profitability.

Recent Overview

Sales edged up slightly, but operating profit fell 18.2% as a ¥2,956 million restructuring loss at the New Zealand subsidiary weighed on results

In FY2026 (ending March 2026), the Housing Materials & Equipment Business recorded sales of ¥64,992 million (up 1.3% year on year) and operating profit of ¥1,024 million (down 18.2% year on year). While the Indonesian subsidiary maintained strong performance in exports to the U.S./European and domestic markets, the segment continued to face a significant decline in the number of domestic owner-occupied and condominium-style detached housing starts, along with continued cost increases due to yen depreciation and inflation. At the New Zealand subsidiary, in light of declining profitability, the company recorded ¥2,956 million as a business restructuring loss (an extraordinary loss outside the segment), including impairment of property, plant and equipment. The company has begun restructuring the subsidiary's Northland and Tribord plants, and is proceeding with a fundamental review including possible business transfer and suspension of operations.

Key Products

Growth Drivers

• Continued expansion of the Indonesian subsidiary's sales channels into the U.S./Europe, Australia, and the domestic Indonesian market (both sales and profit performing well)
• Expanded sales of high-value-added interior fitting products such as storage products and labor-saving construction products ("Laundry-no," "Shiagete-ru Tanaita," etc.)
• Continued profit improvement effects from price revisions for flooring materials, interior fittings, and other products
• New market development in the renovation and non-residential sectors (exhibitions at "Reform Industry Fair 2025" and "HCJ 2026," proposals for LVL materials and the JWOOD construction method for four-story wooden accommodation facilities)
• Improved profit structure resulting from the New Zealand subsidiary's business restructuring (reorganization of the Northland and Tribord plants)
• Medium- to long-term expansion of energy-saving-related and renovation demand, such as insulation retrofitting, driven by mandatory energy efficiency standards
• Promotion of increased use of wood in the non-residential sector (a policy tailwind toward achieving a decarbonized society)

Risks

• Long-term declining trend in the number of domestic owner-occupied and condominium-style detached housing starts (continued weak consumer sentiment due to soaring housing prices, even after the initial adjustment to the revised Building Standards Act that took effect in April 2025)
• Persistently high material procurement costs due to yen depreciation and ongoing inflation
• Business restructuring risk at the New Zealand subsidiary (a fundamental review including possible business transfer and suspension of operations is underway, with the possibility of additional losses)
• Risk of impact on exports to the U.S./Europe (via the Indonesian subsidiary) from U.S. trade policy (tariff measures)
• Changes in business structure and the competitive environment in the housing equipment field following the liquidation of the Chinese subsidiary
• Risk of further suppression of housing starts due to persistently high material and labor costs and interest rate trends