Kyokuto Kaihatsu Kogyo Co., Ltd. · TSE:7226
Kyokuto Kaihatsu Kogyo — FY2024 2Q Earnings Presentation
44 slides from Kyokuto Kaihatsu Kogyo's earnings presentation, November 2024
Slide 1: Operating Results for FY2024 2Q
Operating Results for FY2024 2Q Kyokuto Kaihatsu Kogyo Co., Ltd. TSE Prime: 7226
Slide 2: Table of Contents
Table of Contents 1. Results of FY2024 2Q P2 - 4 2. Results by Segment P5 - 13 3. Full-Year Forecast for FY2024 P14 - 25 4. Initiatives for Enhancement of Corporate Value P26 - 31 1
Slide 3: 1. Results of FY2024 2Q
MI KYoKuTo 1. Results of FY2024 2Q
Slide 4: Summary of Consolidated Financial Results for FY2024 2Q
Summary of Consolidated Financial Results for FY2024 1Q Fiscal year FY2023 FY2024 Change Percentage Millions of yen 2Q 2Q Net sales 59,570 64,007 + 4,437 +7.4% Operating profit 1,311 2,740 + 1,429 +109.0% Ordinary profit 1,858 2,672 + 814 +43.8% Profit attributable to owners of 1,063 3,068 + 2,005 +
Slide 5: Quarterly Trends in Consolidated Financial Results
Quarterly Trends in Consolidated Financial Results （Accumulation period） Fi s c a l FY2 0 2 3 FY2 0 2 4 Ch an ge (Y e a r - o n - y e a r ) Mi l l i ons year of yen 1Q 2Q 3Q 4Q 1Q 2Q Amo u n t Percent a g e Net sales 26,091 59,570 90,311 128,026 28,626 64,007 + 4,437 +7.4% Special Purpose Vehicles 2
Slide 6: 2. Results by Segment
MI KYoKuTo 2. Results by Segment
Slide 7: Special Purpose Vehicles Business
Special Purpose Vehicles Business Net sales Share of While production volume decreased from the previous period, the share of net sales net sales increased due to price revisions for finished goods 85.6% Operating profit (turned profitable) Profitability improved through price revisions for finished
Slide 8: Factors Causing Increase / Decrease in Consolidated Operating Profit (Special Purpose Vehicles)
Factors Causing Increase / Decrease in Consolidated Operating Profit (Special Purpose Vehicles Business) (Millions of yen) Overseas sales increase /decrease Cost reduction 310 –103 Fixed cost increase / decrease –1,135 Domestic sales Material cost increase / increase / decrease decrease and product
Slide 9: Special Purpose Vehicles Business: Orders Received and Backlog
Special Purpose Vehicles Business: Orders Received and Backlog (Millions of yen) 極東 受注残高 KYOKUTO Order backlog ﾄﾚｸｽOrder TREX 受注残高backlog 受注高 Total 合計 of orders received Orders received FY2024 2Q results 120,000 110,613 49,515 million yen Results of FY2023 2Q 43,041 million yen 97,779 99,336 100,000
Slide 10: Special Purpose Vehicles Business: Sales Composition
Special Purpose Vehicles Business: Sales Composition (Millions of yen) Related to the environment / welfare 3,236 Related to logistics Related to Overseas FY2023 2Q Trailer Wing / van Other and labor-saving construction /export Total 51,153 12,359 8,646 6,496 7,449 7,009 5,959 Related to logistics R
Slide 11: Environmental Equipment and Systems Business
Environmental Equipment and Systems Business Net sales Plant construction: Continuation of construction of projects from backlog Share of net sales Focus on stock-type business of winning contracts for maintenance and operation 8.2% Operating profit Stayed on a level similar as FY2023 2Q As of FY202
Slide 12: Environmental Equipment and Systems Business: Trend of Results
Environmental Equipment and Systems Business: Trend of Results (Acquired contract for operation/case) (Plants/unit) 210 40 プラント納入実績（累計） Plant delivery record (cumulative) Number of received contract for operation 運転受託数（稼働中） (in operation currently) 205 30 200 20 195 10 190 0 2025/3期 FY2024 2017/3期 F
Slide 13: Car Parking Systems Business
Car Parking Systems Business Net sales In multi-story parking systems, both new orders and maintenance contracts increased significantly Share of Net sales of pay-and-display parking lots increased slightly as the operational rate net sales 6.2% continued recovering from the previous year Operating
Slide 14: Car Parking Systems Business: Trend in Results
Car Parking Systems Business: Trend in Results (Unit) Number of pallets for multi-level parking (Unit) Number of lots for cars in pay-and-display parking 立体駐車装置パレット数（累計） コインパーキング車室数（稼働中） (in operation currently) equipment (cumulative) 14,000 95,000 12,000 90,000 10,000 85,000 8,000 6,000 80,000 4,00
Slide 15: 3. Full-Year Forecast for FY2024
3. Full-Year Forecast for FY2024 14
Slide 16: FY2024: Consolidated Results Forecast
FY2024: Consolidated Results Forecast Fisc al year FY2023 FY2024 Change P e r c e n t age Millions of yen (Results) （Forecast） Net sales 128,026 134,000 + 5,974 +4.7% Operating profit 4,825 6,300 + 1,475 +30.6% Ordinary profit 5,617 6,500 + 883 +15.7% Profit attributable to 3,501 5,700 + 2,199 +62.8
Slide 17: Trend in Consolidated Operating Profit (by Segment)
Trend in Consolidated Operating Profit (by Segment) (Millions of yen) 8,000 特装車 環境 パーキング Special Purpose Environment Car Parking Vehicles 7,000 6,880 6,000 5,000 4,481 4,400 4,000 3,000 2,644 2,451 2,350 1,994 2,098 2,000 1,768 1,140 1,143 1,000 656 780 600 0 -1,000 △- 555 555 FY2020 2021/3期 FY2021
Slide 18: Special Purpose Vehicles Business: Full-year Results Forecast
Special Purpose Vehicles Business: Full-year Results Forecast Special Purpose Vehicles Business ➢ Both orders and backlogs remained at high levels (Backlogs: KYOKUTO: approx. 41,300 million yen and TREX: approx. 41,400 million yen. Total: approx. 82,700 million yen) *As of September 30 ➢ Improved su
Slide 19: Truck Market and Net Sales Trend of Special Purpose Vehicles Business
Truck Market and Net Sales trend of Special Purpose Vehicles Business While the truck market has remained stagnant temporarily due in large part to the pandemic, semiconductor shortages, and chassis manufacturers’ misconduct related to vehicle certification, we have managed to secure sales through r
Slide 20: Circumstances Surrounding the Special Purpose Vehicles Business and Response
Circumstances Surrounding the Special Purpose Vehicles Business and Response Status of price revisions ✓ Base orders up approx. 14–15%, Base sales up approx. 10% *Compared with the period before the price increases (FY2021) ✓ Will continue to revise prices in accordance with circumstances Status of
Slide 21: Make STG a Group Company
Make STG a Group Company We acquire shares of STG Global Holdings Pty Ltd (STG), an Australian Special Purpose Vehicles manufacturer.and make STG a Group Company. Reason for acquiring shares [Outline of STG] ✓ Cross selling, centered on Japan and Australia markets, by leveraging Name STG Global Hold
Slide 22: Make STG a Group Company
Make STG a Group Company MI KYoKuTo Suction Excavation Vehicles (Vacuum trucks) No.2 share in Australia®? ‘(Se Suction-cut excavator Non-destructive drilling, Use Electrical, gas, and communication piping construction Perf ° Loading capacity 3,000 to ie 16,000L ce 3% Share is based on STG research.
Slide 23: STG - Major Locations
STG -Major Locations Mi kyoxuto Overseas Mounting units Production plant Transporting the units produced in China and the Philippines to the areas where they are needed Queensland Domestic Western Australia Assembly and SV plants New South Wales (6 locations in 4 states) Vi ictoria 22 Dandenong Main
Slide 24: STG - Financial Results
STG -Financial Results (In millions of Australian dollars) 76.9 (125.5) 17.5% 54.0 (88.4) 16.4% 39.3 (62.7) 14.6% 12.6 6.9 7.9 2022年6月期 2023年6月期 2024年6月期 売上高 営業利益 営業利益率 ⋆The figure in parentheses for sales is sales including chassis. ✓ Rapid growth in both sales and operating income at an average an
Slide 25: Environmental Equipment and Systems Business: Full-year Results Forecast
Environmental Equipment and Systems Business: Full-year Results Forecast Environmental Equipment and Systems Business ➢ Stock-type business of winning contracts for operation, maintenance remains firm. ➢ Increase in plant construction due to increases in orders received (sales on a percentage basis)
Slide 26: Car Parking Systems Business: Full-Year Results Forecast
Car Parking Systems Business: Full-Year Results Forecast Car Parking Systems Business ➢ Multi-story parking systems : Strengthen stock-type business such as renovation and maintenance. ➢ Pay-and-display parking lots : Secure earnings by increasing the number of business sites and parking lots, and r
Slide 27: 4. Initiatives for Enhancement of Corporate Value
4. Initiatives for Enhancement of Corporate Value 26
Slide 28: Recognition of Current Status of Corporate Value Enhancement
Recognition of Current Status of Corporate Value Enhancement As a result of continuing to engage in sustainable enhancement of corporate value, PBR improved to 0.87× (as of the end of September 2024). Continuing the effort toward achieving PBR 1× at an early stage remains an important management iss
Slide 29: Medium-term Management Plan (Cash Allocation)
Medium-term Management Plan (Cash Allocation) Being conscious of our assessment by a wide range of stakeholders and the need to enhance corporate value, we are pushing forward with appropriate cash allocation State of progress Medium-term Management Plan 2022–24 — Creating The Future As One 30 billi
Slide 30: Progress in Medium-Term Management Plan
Progress in Medium-Term Management Plan Net sales, operating profit margin, and ROE targets * Although there is the gap between the consolidated earnings (%) (Millions of yen) forecast for the FY2024 and the target numbers for the final fiscal Target numbers for the final year of the medium-term man
Slide 31: Calculation of Cost of Capital, etc. and Improvement of Balance Sheet
Calculation of Cost of Capital, etc. and Improvement of Balance Sheet Our recognition is: Cost of capital at approx. 7% and WACC at approx. 6%. We will take measures, such as utilizing interest-bearing liabilities, to improve capital efficiency, and in this way we will further lower the cost of capi
Slide 32: Stepping up Shareholder Returns
Stepping up Shareholder Returns Shareholder return policy: Minimum annual dividend of 54 yen per share + Flexible purchase of treasury shares. Total return ratio of 100% throughout the period of the current Medium-term Management Plan: (Yen) (%) 160 150 yen for FY2024, an increase of 63 yen 120 100.
Slide 33: For Reference: Supplementary Data
For Reference: Supplementary Data 32
Slide 34: Company Profile
Company Profile Company Name ： KYOKUTO KAIHATSU KOGYO CO.,LTD. L o c a t i o n o f headquarters ： Chuo-ku, Osaka, Japan Founding date ： June 1, 1955 C a p i t a l ： 11,899,867,400 yen T i t l e n a m e a n d o f ： Representative Director, President, CEO Representative Tatsuya Nunohara Number of empl
Slide 35: Business Line
Business Line Special Purpose Vehicles Business Manufacture, mounting, sale, and repair of special purpose vehicles and other transportation equipment, and manufacture and sale of parts thereof. Manufacture and sale of trailers, truck bodies, etc. Environmental Equipment and Systems Business Manufac
Slide 36: Overview of Special Purpose Vehicles Business
Overview of Special Purpose Vehicles Business *In case of mounting on trucks Truck manufacturer/Dealer Trading company /User (1) (2) Chassis (4) Delivery (1) (4) Delivery Ordering delivery Ordering [Sales made] [Sales made] (Consigned to) Completion (3) Mounting Truck undercarriage (chassis) Body 35
Slide 37: Long-term Management Vision - Kyokuto Kaihatsu 2030
Long-term Management Vision Final target value Long-term Management Vision 3rd STEP Sustainability Vision *1 ● Achievement of both - Kyokuto Kaihatsu 2030 - “outstanding technology” and • CO2 emissions reduction: Minus38% *2 “solid quality” Step-up strategy following three steps • Recycling rate: Ma
Slide 38: Major Capital Investments and M&A
Major Capital Investments and M&A Business Investment item Investment details Implementation period Strengthen the R&D System FY2026 Construction of a technical center The speed in developing new products will be Planned to be completed roughly doubled. SATRAC ENGINEERING PRIVATE LIMITED, Boost prod
Slide 39: Major Capital Investments
Major Capital Investments No rth Construction of a technical center (to be completed in FY2026) W Ea es st t Retention pond So (which runoff ut h water is directed to) Securit y office Entranc e/Exit ◆The speed in developing new products will be roughly doubled. Retention pond 1Parking lot Yaman oka
Slide 40: Major Capital Investments
Major Capital Investments SATRAC, India: Construction of a plant in Chennai (to be completed in FY2025) SATRAC, a group company that posted record-high sales in the FY2023 due to high demand for specialty tracks in India, is constructing a new plant near the city of Chennai, in the state of Tamil Na
Slide 41: Progress of Mid-term Management Plan (Sustainability)
Progress of Mid-term Management Plan (Sustainability) T a r g e t v a l u e s a n d p r o g r e s s ◆ CO2 emission reduction rate Long-term Management Vision Target: Cut 38% or more (FY2030) *CO2 emission factor compared with FY2013 Reservoir Solar at Miki Plant Progress: Cut 22.3% (FY2023) Medium-t
Slide 42: TOPICS (1) Amagasaki City: Order Received for Development and Operation
TOPICS (1) Amagasaki City: Order Received for Development and Operation of the Former No. 1 Plant Site Joining a corporate group represented by TAKUMA Co., Ltd., we received an order from Amagasaki City on June 28, 2024 for a project to develop and operate the site of the former No. 1 Plant (*Genera
Slide 43: TOPICS (2) Wajima City/Anamizu Town: Order Received for Recycling Facility
TOPICS (2) Wajima City/Anamizu Town: Order Received for Construction of Regional Material Recycling Promotion Facility On July 9, 2024, we received an order from the Wajima City-Anamizu Town Environmental Sanitation Facility Cooperative, which consists of Wajima City and Anamizu Town in Ishikawa Pre
Slide 44: without the Company’s permission is prohibited.
The forecasts in this document are based on information available as of the date of its publication. Actual results may differ from projected numbers due to various factors that could occur in the future. The copyright to this material belongs to Kyokuto Kaihatsu Kogyo Co., Ltd. Reproduction or dist
Kyokuto Kaihatsu Kogyo — FY2024 2Q Earnings Presentation on 6ix