OKAMURA CORPORATION
7994・Prime Market・Other Products
Office Environment Business
Okamura's core segment, with both net sales and operating profit reaching record highs
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥191,852 million | ¥167,397 million | ↑ |
| Segment profit | ¥22,630 million | ¥17,367 million | ↑ |
| Operating margin | 11.8% | 10.4% | ↑ |
| Depreciation and amortization | ¥4,978 million | ¥4,404 million | ↑ |
| Increase in property, plant and equipment and intangible assets (capital expenditures) | ¥10,326 million | ¥5,101 million | ↑ |
Business Details
This segment manufactures and sells Office Furniture, Furniture for Public Facilities, Security Products, Healthcare-related Products, and other items. Manufacturing is handled by the Company, NS Okamura Corporation, Sanyo Okamura Corporation, Fuji Seiko Head Office Co., Ltd., Boss Design Limited, and others, while sales, logistics, construction, and services are handled by the Company, Okamura Support and Service Co., Ltd., Okamura (China) Co., Ltd., Siam Okamura International Co., Ltd., DB&B Holdings Pte. Ltd., Boss Design Limited, and others. The segment is capturing demand for open office layouts following the COVID-19 pandemic and demand for office relocation/renovation aimed at securing talent, driving overall group earnings.
Recent Overview
Both net sales and operating profit reached record highs. Overseas expansion strengthened through full consolidation of Boss Design
In the fiscal year under review (FY2026, ending March 2026), net sales in the Office Environment Business were ¥191,852 million (up 14.6% year on year) and segment profit was ¥22,630 million (up 30.3% year on year), both reaching record highs. This was mainly attributable to expanding demand for open office layouts and robust demand for office relocation/renovation aimed at securing talent. In addition, effective April 1, 2025, the Company made Boss Design Limited of the UK a wholly owned subsidiary, strengthening its business foundation in overseas office markets. Note that the segment name is scheduled to change to "Work & Life Creation Business" effective July 1, 2026 (no change to the segmentation method). Impairment losses of ¥480 million were recognized in the fiscal year under review, and the unamortized balance of goodwill was ¥9,020 million (amortization of ¥1,181 million for the fiscal year).
Key Products
Growth Drivers
- Expanding demand for open office layouts driven by an emphasis on communication following the COVID-19 pandemic
- Nationwide rise in demand for office relocation/renovation as measures for securing and retaining talent
- Strong proposal capabilities and product development capabilities based on research into future ways of working and abundant delivery track record
- Strengthened business foundation in overseas office markets through the full consolidation of Boss Design Limited
- Expanding business opportunities from renovation and new construction projects for aging facilities in the public market
- Expansion into the domestic BtoC market centered on task seating
Risks
- Increase in cost of sales and SG&A expenses due to rising procurement prices and soaring logistics costs
- Increase in fixed costs due to wage increases (5.48% implemented in the fiscal year under review)
- Uncertainty over the outlook due to geopolitical risks (situations in Ukraine and the Middle East) and the slowdown of the Chinese economy
- Risk of declining profitability of held assets, having recognized impairment losses of ¥480 million in the fiscal year under review
- Future impairment risk related to the unamortized goodwill balance of ¥9,020 million (from the acquisition of Boss Design, etc.)
Last updated: June 22, 2026