Amita Holdings Co., Ltd. · TSE:2195
Amita — FY2022 Earnings Presentation
58 slides from Amita's earnings presentation, Feb 24, 2023
Slide 1: Earnings Briefing for FY 2022
Earnings Briefing for the Fiscal Year Ended December 31, 2022 (FY 2022) February 24, 2023 AMITA HOLDINGS CO., LTD. (Stock code: 2195 on the Growth Market of the Tokyo Stock Exchange) © © 2023 2023 AMITA AMITA HOLDINGS HOLDINGS CO., CO., LTD. LTD. All All Rights Rights Reserved. Reserved. © 2023 AMIT
Slide 2: Agenda and presenters
AMITA Group’s Business Overview and Its Initiative and Commitment to Creating an Ecosystem Society by 2030 01 (AMITA Vision 2030) KUMANO Eisuke Chairman and CEO AMITA HOLDINGS CO., LTD. 02 Consolidated Financial Results for FY 2022 KARAKAMA Shinichi Director AMITA HOLDINGS CO., LTD. Business Achieve
Slide 3: AMITA Group's Business Overview and AMITA Vision 2030
AMITA Group’s Business Overview and Its Initiative and Commitment to 01 Creating an Ecosystem Society by 2030 (AMITA Vision 2030) KUMANO Eisuke Chairman and CEO AMITA HOLDINGS CO., LTD. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. 3
Slide 4: AMITA's Mission
AMITA’s Mission AMITA is committed to achieving a sustainable society in which natural and relational capital will be enhanced in a virtuous circle AMITA brings as economy and society grow. a misguided modern society back on track. In a modern society, while people may have achieved greater material
Slide 5: About the AMITA Group
About the AMITA Group (As of January 31, 2023) Stock code: 2195 on TSE Growth Market AMITA HOLDINGS CO., LTD. Head office: Nakagyo-ku, Kyoto, Japan Established: April 1, 1977 Headed by KUMANO Eisuke, Chairman and CEO Capital: 483,560,300 JPY SATO Hiroyuki, President and COO Number of employees: 233
Slide 6: AMITA Group's Business Lines at a Glance
AMITA Group’s Business Lines at a Glance Developing and designing a token Assisting businesses in defining and economy to help create an refining their low-carbon transition ecosystem society strategy An independent consultancy specializing in Assist local communities and operators of assisting busi
Slide 7: AMITA Group by Numbers
AMITA Group by Numbers Number of employees Number of Established (consolidated) Net sales 4.8 billion yen offices and facilities Offices Resource-recycling plants and BIO Partners’ recycling plants Operating profit Japan 1977 margin 12.6 % 10 4 4 46 Equity capital ratio 41.4 % years old 233 ROE 30.8
Slide 8: Traditional industrial model has lost its relevance
The global supply chain that sustained the Japanese economy The traditional industrial model has lost its relevance relies on the global procurement of finite natural resources. 2008 global financial crisis, 2011 Great East Japan Earthquake, has sustained the Japanese economy for decades. COVID-19 p
Slide 9: Switching to creating domestic demand with a circular economy
Switching to creating domestic demand with a circular economy Potential domestic demand fulfilled by materials procured at home 77 trillion yen Pioneering method 01 Establish a circular platform that enables sustainable resource procurement at home Total added value of domestic consumption Having a
Slide 10: Sustainability Markets AMITA Pursues
Sustainability Markets AMITA Pursues The Japanese Market size of National budget for Estimated market size of Market size of circular government aspires global warming caring for people feeling SDGs-related business economy business to boost the nation’s circular economy by mitigation business isola
Slide 11: AMITA's Two Key Competitive Advantages
AMITA’s Two Key Competitive Advantages Hard to Emulate Proprietary technology to convert waste of unpredictable Advantage An organization in which ordinary people can do Advantage quantity, quality, and availability into usable resources and something extraordinary supply them consistently 01 Profes
Slide 12: AMITA's Business Models
AMITA’s Business Models Uniqueness Uniqueness Emulating a natural ecosystem in business and Making advance investments in providing community management 01 the right commercial solutions to unmet social needs 02 Provide solutions for ecosystem-driven management of businesses and communities It is a
Slide 13: AMITA's History of Providing Commercial Solutions
AMITA’s History of Providing Uniqueness of AMITA’s business models 01 Commercial Solutions to Unmet Social Needs Increasing public demand for anti-pollution measures; 1980 Social soaring procurement costs of materials in a financial slump AMITA’s Turning a volatile supply of waste into a stable supp
Slide 14: Uncovering and networking implicit value
Uniqueness of AMITA’s business models 02 Uncovering and networking implicit value is key to achieving ecosystem-driven business management Background Impact of climate change becoming increasingly serious; financial market becoming responsive to environmental risks Emerging need to uncover and netwo
Slide 15: MEGURU PLATFORM brings us closer to an ecosystem society
MEGURU PLATFORM brings us closer to an ecosystem society MEGURU PLATFORM Changes in people’s Changes in attitudes and Home business behaviors Businesses practices living Changes in value Changes in business practices Circular Circular purchasing Circular products and services Circular business procu
Slide 16: MEGURU PLATFORM transforms industry and everyday lives
Circular Business MEGURU PLATFORM transforms lifestyle operators industry and people’s everyday lives Product information about ingredients, manufacturing processes, supply-chain CO2 Information about residents’ resource usage and emissions, method of collecting packages and behaviors enables busine
Slide 17: Road Map from 2021 through 2030
Road Map from 2021 through 2030 Diffusion of Innovation Theory 16% Rule: When the adoption rate of a new product or service Coast-to-coast reaches 16% among innovators and early adopters, the product or service starts enjoying a broader acceptance among coverage consumers. Number of users Innovators
Slide 18: AMITA's Corporate Strategy: Deepen Engagement with Stakeholders
AMITA’s Corporate Strategy: Deepen Engagement with Stakeholders Pikaia Anomalocaris In the aftermath of the Cambrian Corporate organization Corporate organization Explosion, life forms with an endoskeletal Life forms with an exoskeletal structure structure, from which human ancestors with an exoskel
Slide 19: How deeper engagement increases operating capital
How deeper engagement with our stakeholders increases our operating capital Natural and relational capital Create even more is continuously enhanced in robust operating a virtuous spiral. ＝ Deeper engagement capital with our stakeholders Share even greater When your corporate vision value with custo
Slide 20: Organizational Realignment and Change in Leadership Team
Organizational Realignment and Change in Leadership Team Split an existing operating Established a new leadership team at January 2023 subsidiary into two entities Effective March 2023 AMITA HOLDINGS Purpose To achieve greater operational agility and excellence Purpose To make the Company’s operatin
Slide 21: Commitment to stakeholder-centric business management
In March 2022, the AMITA Group announced its commitment to pursuing stakeholder-centric business management. It is a commitment to pursuing the best interests of society in our business. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. 21
Slide 22: Consolidated Financial Results for FY 2022
Consolidated Financial Results 02 for FY 2022 KARAKAMA Shinichi Director AMITA HOLDINGS CO., LTD. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. 22
Slide 23: Financial Highlights
While the Group missed its initial guidance for FY 2022 as corporate clients rescheduled the implementation of their ESG initiatives due to fast-changing Financial Highlights business environments, we achieved a year-on-year increase in net sales, operating profit, and ordinary profit. (In millions
Slide 24: Abbreviated Consolidated Balance Sheet
Abbreviated Consolidated Balance Sheet (In millions of yen; amounts rounded down to the nearest million yen) As of As of YoY change December 31, 2021 December 31, 2022 Current assets 2,346 2,769 +423 Assets Non-current assets 2,080 2,054 -26 Total assets 4,427 4,824 +396 Current liabilities 1,312 1,
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (In millions of yen; amounts rounded down to the nearest million yen) FY 2021 FY 2022 YoY change Net cash provided by operating activities 873 585 -288 Net cash provided by (used in) investing (73) (69) +4 activities Net cash provided by (used in) financing (649)
Slide 26: Key Financial Metrics
Key Financial Metrics Note: Effective at the beginning of FY 2022, the Company adopted the Operating profit Accounting Standard for Revenue Recognition. Equity capital ratio (%) margin (%) Operating profit margin for FY 2022 would have been 11.4%, based on the 41.4 previous standard. 10.9 12.6 32.9
Slide 27: Year-End Dividend Policy
Year-End Dividend Policy Over the next several years, we will invest aggressively in developing and providing integrated new services to meet the growing needs of businesses and municipalities to achieve greater sustainability. During this period, we will return up to 10% of annual profit to shareho
Slide 28: Financial and Business Achievements in FY 2022
AMITA Group’s Financial and Business Achievements Nov. 10 in FY 2022 Mar. 17 Resolved to change the trade name of a consolidated subsidiary and establish a new subsidiary through a company split. Announced a commitment to pursuing stakeholder-centric business management. Nov. 24 Announced AMITA Visi
Slide 29: Enacted a stock split twice during the year
FY 2022 Financial Enacted a stock split twice during the year Topic 01 to attract more shareholders who support our corporate mission. We have been attracting more and more shareholders who support our corporate To make it easier to invest in AMITA mission. Number of Shareholders 11.6x Increase the
Slide 30: Issued share acquisition rights: use of funds
FY 2022 Financial Issued share acquisition rights Topic 02-1 to fund AMITA’s Initiative and Commitment to Creating an Ecosystem Society by 2030. Intended use of raised funds To develop and provide the MEGURU PLATFORM to nurture two new key growth drivers— a circular supply chain and a locally networ
Slide 31: Issued share acquisition rights: terms
FY 2022 Financial Issued share acquisition rights Topic 02-2 to fund AMITA’s Initiative and Commitment to Creating an Ecosystem Society by 2030. The first issuance of share acquisition rights with the clauses allowing the Company to revise exercise prices and to set a non-exercisable period Overview
Slide 32: Market Capitalization of AMITA HOLDINGS
Market Capitalization of AMITA HOLDINGS (In billions of yen; amounts rounded down to the nearest billion yen) Up 106 107 Up % 億円増 YoY Up 20.5 Up 186% 億円増 YoY 9.9 6x 3.6 3.5 3.4 2018 2019 2020 2021 2022 Note: Based on the closing quote of the Company’s stock as of the last trading day of December eac
Slide 33: Raising funds to strengthen financial foundation
We intend to raise funds to make the Group’s financial foundation more solid and increase the Group’s enterprise value. This is part of laying the groundwork for the Business Expansion Phase, scheduled to start in FY 2024. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. © 2023 AMITA HOLDINGS CO
Slide 34: Business Achievements in FY 2022 and Medium-Term Management Plan
Business Achievements in FY 2022 and Medium-Term Management Plan 03 for FY 2023-2025 SATO Hiroyuki President and COO AMITA HOLDINGS CO., LTD. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. © 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved. 34
Slide 35: FY 2022 The Second Year of Phase 1: Business Development
FY 2022 2030 The Second Year of Phase 1: Business Development AMITA Group to establish the Social Systems Design Business 2027 Key strategic initiatives for FY 2022-2024 (announced February 2022) AMITA Group to celebrate its 2030 1. Establish business to assist businesses in developing and 50 th ann
Slide 36: Social Systems Design Business
Business Achievements Developed and provided a broader range of service products and in FY 2022 solutions and aggressively pursued strategic partnerships Redesigning industry: Assisting businesses in achieving greater corporate sustainability Social Systems Design Business Consulting on corporate su
Slide 37: Consulting: revenue up on corporate sustainability needs
Redesigning Industry Revenue was up from assisting clients in fulfilling their Consulting growing need to achieve greater corporate sustainability (1) Background There has been a growing need among businesses to switch to circular business models in an underlying trend toward a circular economy and
Slide 38: Four key drivers of Cyano Project
Redesigning Growing corporate needs for end-to-end assistance—ranging from Industry strategy and framework development through to implementation Consulting and operation—continue to drive our consulting business (2) Four Driver Driver key drivers for 01 Driver a new wave of businesses Driver 04 Circ
Slide 39: Proprietary blending technology
Redesigning Industry AMITA’s proprietary blending technology turns the unpredictable Closed-loop into the predictable by recompiling information to add new value resource- recycling in Japan (1) AMITA accepts Corporate user more than 1,700 Corporate user types of Corporate user waste a year. … Corpo
Slide 40: Closed-loop resource recycling in Japan: profit margin up
Redesigning Industry Streamlined business processes drove the profit Closed-loop margin up, even from a slightly reduced volume resource- recycling in Japan (2) Japanese manufacturers cut back their production volume amid the destabilized Background international situation and surging materials cost
Slide 41: Evolution into the circular materials business
Redesigning An organizational realignment and corporate partnerships drive Industry the evolution of the resource-recycling business into the circular Closed-loop materials business resource- recycling in Japan (3) January 2023 Overview AMITA CIRCULAR CORPORATION was spun off from AMITA CORPORATION
Slide 42: Silicon recycling: revenue up on semiconductor demand
Redesigning Industry Higher revenue driven by industry’s surging demand for semiconductors Silicon recycling Note: 1 USD = 131 JPY Global Market for Silicon Wafers 1,510 Projected to (in billions of yen) nearly double Global semiconductor giants have 800 Background been ramping up their chip product
Slide 43: Resource recycling business growing in Malaysia
Redesigning Industry Our resource-recycling business Growing in Malaysia Closed-loop with profit bolstered by increased shipment volume AMITA BERJAYA SDN. BHD. resource- Joint venture established by AMITA’s subsidiary in recycling outside Malaysia and the Malaysia-based BERJAYA Group Data AMITA BERJ
Slide 44: Environmental assessment and certification
Redesigning Industry Due to growing corporate sustainability needs, we assessed more Environmental businesses for FSC® CoC certification in FY 2022 than in FY 2021 assessment and certification AMITA’s share of Number of Businesses Number of businesses AMITA assessed FY 2021 FY 2022 the Japanese AMIT
Slide 45: Group-wide business process transformation with DX
Redesigning Industry Applied DX solutions to streamlining and transforming Group-wide business processes throughout the organization business process transformation Overview We carried out the Amitech project to streamline and transform business processes across the Group. E-billing system for 1,454
Slide 46: MEGURU STATION: resource-collection site
Redesigning Resource-collection site that promotes mutually supportive engagement Communities among community residents MEGURU MEGURU STATION® STATION® (1) 01 Promote a mutually supportive community 02 Promote resource circulation Reduce costs of social security Reduce environmental and welfare prog
Slide 47: MEGURU STATION operated in five locations
Redesigning Communities MEGURU STATION® operated in five locations MEGURU in three municipalities in 2022 STATION® Case (2) Kobe, Two locations in Two Case Hyogo Prefecture town Tachiarai, locations in November 2021 Fukuoka Prefecture town MEGURU STATION® became operational in Nagata-ku. January 202
Slide 48: Accelerate expanding the stations' geographical coverage
Redesigning Communities Accelerate expanding the stations’ geographical coverage MEGURU STATION® Key (3) Key initiatives initiatives for for Develop, implement, and validate a geographical expansion model and FY 2023 FY 2023 an associated business model Expand MEGURU STATION® into 50 locations in 5
Slide 49: Cross-industry Alliance Drives a Circular Economy (J-CEP)
Partnerships Platform for resource Cross-industry Alliance Drives a Circular Economy circulation and relationship-building J-CEP (1) Member companies bring information, resources, and value to establish Photo taken at the first J-CEP anniversary gathering Jumped an optimum scheme for resource circul
Slide 50: J-CEP's Joint PoC Projects
Partnerships J-CEP’s Joint PoC Projects Built around Platform for resource circulation and relationship building MEGURU STATION® J-CEP (2) Carried out joint PoC projects to design a resource circulation scheme and Overview create a community engagement space Project Collect sorted household plastic
Slide 51: Expanded strategic corporate partnerships
Partnerships Expanded the scope and scale of strategic corporate partnerships Cross-industry as part of joint efforts to create an ecosystem society by 2030 collaborations Started accelerating the pace of strategic partnerships in 2022. Communications Financial Leasing Emergency-readiness and inform
Slide 52: Codo Advisory joint venture
Integration of environmental and financial solutions Partnerships AMITA and MCP Japan jointly established Codo Advisory to assist Highly specialized corporate clients in achieving low-carbon business management joint venture Overview March 2022 Codo Advisory, Inc. established to assist businesses in
Slide 53: AMIDAO established to leverage Web3 technology
AMIDAO, a wholly owned subsidiary of AMITA HOLDINGS, Partnerships established to leverage block chain technology and other Web3 Highly specialized solutions subsidiary January 2023 Overview AMIDAO CORPORATION established to design and develop token economy models using Web3 solutions. Uncover implic
Slide 54: Complete business development phase in FY 2023
Medium-Term Management Plan Complete the business development phase in FY 2023 and enter the business expansion phase in FY 2024 Key initiatives for FY 2023-2025 From FY 2023 through FY 2025 2030 The third year of Phase 1 and the first and 2022 second years of Phase 2 2027 AMITA Group to 2021 Announ
Slide 55: Financial targets for FY 2023-2025
Medium-Term Management Plan Meet aggressive but attainable targets to live up to the expectations of society, as well as those of the business and financial Financial targets communities for FY 2023-2025 MTMP updated for FY 2023-2025 (In millions of yen; amounts rounded down to the nearest million y
Slide 56: 32-hour workweek and across-the-board pay raise
Corporate initiative To foster a corporate culture that places a higher priority on employees’ relationship-building efforts, We offer employees a shorter 32-hour workweek Drive value- and an across-the-board pay raise creation efforts Shorter and more Across- productive the-board Launched company-w
Slide 57: First step toward ecosystem-driven business management
In FY 2022, the AMITA Group took a bold first step toward implementing ecosystem-driven business management practices. As a next step, we intend to have deeper engagement with an even wider range of stakeholders in FY 2023 as part of our efforts to achieve AMITA Vision 2030. © 2023 AMITA HOLDINGS CO
Slide 58: Join us in creating an ecosystem society
Join us in this challenging but exciting endeavor to create an ecosystem society. For inquiries, send emails to the Investor Relations Section of AMITA HOLDINGS CO., LTD. at ir@amita-net.co.jp Disclaimer: This document is for informational purposes only and is not intended to solicit investment in t