Value creation and Management strategies

YKK AP's Value Creation

The Value Creation Process

6 types of Management capital as a Base for Value Creation

YKK AP takes as its Purpose "We Build a Better Society Through Architectural Products."

These six types of capital are the source of this cycle of providing value to customers, society, and employees through corporate activities that create high quality products and services.

We aim to achieve sustainable growth by strategically investing capital while assessing business opportunities and risks.

  • Results as of March 31, 2023 or FY2022 unless otherwise noted, scope of coverage is YKK AP Group (Japan+overseas)

Financial Capital

Financial Capital

Equity ratio 57.9 %
Net assets: 266.0 billion yen / Total assets: 455.8 billion yen

"Financial foundations supporting our business"

Despite the overall increase in operating income in FY2022, we will endeavor to improve profitability through continued price revisions and manufacturing cost reductions to address surging material prices and related issues. To realize our "Evolution 2030" vision, which aims to achieve net sales on the order of one trillion yen, we plan to allocate business resources first to information and other management infrastructure that forms the foundation of our corporate activities, and then to facilities and human resources. While keeping in mind business indicators and the growth rates of individual businesses, we will also continue to pursue capital efficiency.

Human Capital

Human Capital

Employees in Japan: 12,802
Employees overseas: 4,341

"Forest Organization with a shared corporate philosophy"

Based on the idea of "autonomy and coexistence," we work to create systems and environments in which each and every employee can demonstrate their full potential. The goal is to create a "Forest Organization," a company in which every employee has a consciousness of being a manager, and grows strongly together as a group, like a forest that is made up of individual trees. To improve employee engagement, which is the source of value creation, we will pursue the design of systems and the development of a fulfilling and pleasant working environment that enable a diverse range of personnel to play an active role.

Manufacturing Capital

Manufacturing Capital

Manufacturing sites — Japan: 24 Overseas: 12
Manufacturing capital investment: 13.8 billion yen

"Technology capabilities to support an integrated production system from raw material production to shipping and delivery"

YKK AP manufactures products using integrated production at domestic and overseas sites, and has established a manufacturing and supply system rooted in various countries and regions under the basic principle of manufacturing close to where demand is found. In addition, we are working to enhance our technological competitiveness through machinery engineering technology used to develop and manufacture production equipment for our products. We are also stepping up our efforts in DX promotion as well as research and development into AI, robotics and other technologies for realizing smart factories.

Social and Relational Capital

Social and Relational Capital

Japan business sites: 195
Overseas business sites: 11 countries/regions
Affiliated companies — Japan: 6 Overseas: 20 (as of February 1, 2024)​

"Co-creation relationships based on trust and reliance with stakeholders"

We work with all stakeholders, including employees, customers, business partners, and local communities, to continue being a company that is trusted by the community and loved by society. We provide opportunities for various forms of dialogue and co-creation to improve our workplaces and operations, as well as the quality of our products. In addition, we are engaged in industry-government-academia-private sector partnership to develop recycling technologies and mechanisms for vinyl and aluminum materials.

Natural Capital

Natural Capital

Energy consumption: 161,000 kl (crude oil equivalent)
Water use: 8.9 million m³
Raw materials — aluminum: 125 kt, vinyl: 22 kt

"Creating environmental value at all stages of the lifecycle"

Aiming to leave a better society / environment for the next generation, we are taking on the challenge of creating new value and achieving zero environmental burden, through technical innovation. Along with the conservation and effective use of natural capital, we are working to create environmental value and solve environmental issues at all stages of the product lifecycle, from research and development to manufacturing, logistics, installation, use, and disposal. Under the "Evolution 2030" vision, YKK AP aims to reduce its own CO2 emissions by 80% by FY2030 and by 100% by FY2040 (both relative to FY2013), and we will strengthen our efforts to achieve these goals.

Intellectual Capital

Intellectual Capital

Global R&D organization: 3 sites
Research and development expenses: 9.3 billion yen
Patents held: 1,418

"Creating technology through the challenge of solving social issues
Kurobe, YKK AP's technology headquarters"

Home to three technical facilities of the YKK AP R&D Center, the Value Verification Center, and the Partners Support Studio, Kurobe City in Toyama Prefecture is positioned as YKK AP's technology headquarters. R&D centers are also located in Germany and Indonesia to conduct research, development, and verification on a global basis. Furthermore, we are putting our efforts into strategic management and application of intellectual assets as well as training and development of employees, with the aim of improving our competitiveness and brand value through patent applications and ownership of patent rights.

Products and services to address social issues

As YKK AP pursues sustainability management, it is identifying issues and developing technologies while staying attuned to the needs of its various customers in Japan and overseas. The 6th Mid-term Business Policy calls for "Providing Social Value through Products and Realizing Manufacturing Reform," and we have set the "rate of sustainable product sales" as a key indicator. The social value that YKK AP provides can be categorized into "energy conservation," "easy installation," "disaster prevention / mitigation," "safety / security," and "health / hygiene," and we are engaged in business activities that contribute to a sustainable society by developing a wide range of sustainable products that enhance these types of value.

●Energy conservation

We are developing products that can contribute to improving the energy-saving performance of buildings. We are developing products with thermal insulation performance that meets the energy-saving standards set by various regions in Japan and overseas

APW vinyl windows series APW vinyl windows series A window series using vinyl with high thermal insulation performance for the frame.
LD series (China) LD series (China) A series of aluminum profile thermal insulation windows with high thermal insulation performance that can be used in a wide range of areas, from eastern to northern and western China.

●Easy installation

We are developing products that shorten installation time, do not involve specific skills or hazards, and are safe to install.

No-weld installation No-weld installation A new flame-free sash installation method that replaces the conventional welding method by filling with mortar.
Kantan Door Remo series Kantan Door Remo series A door series that allows new products to be installed over the existing frame without breaking the wall.

●Disaster prevention / mitigation

We have a lineup of products that reduce damage to buildings, indoor environments, and surrounding environments caused by wind, rain (water), snow, lightning, and other natural phenomena.

GPort Pro Series GPort Pro Series Carport series with industry-leading snow and wind resistance to prepare for increasingly severe natural disasters.
YRB-A (Taiwan) YRB-A (Taiwan) High water-tightness sashes developed as a core product for Taiwan, where typhoon damage is common.
ProTek® (U.S.A.) ProTek® (U.S.A.) Hurricane and explosion-proof products targeted mainly at commercial facilities in the U.S.A.

●Safety / Security

We are committed to developing products with higher safety performance by employing functions and technologies that work effectively against dislocation, falls, pinching, collisions, abrasions, catching, locking-in, catching fire, criminal activity and more.

Lucias balconies Lucias balconies Balconies with handrails to prevent children from falling

●Health / Hygiene

We develop products that contribute to improving the quality of the indoor environment and creating a hygienic lifestyle.

Natural ventilation windows (Balance Way) Natural ventilation windows (Balance Way) The grid itself is balanced to provide efficient ventilation.

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