Takamiya Co., Ltd. · TSE:2445
Takamiya — FY2020 Earnings Presentation
44 slides from Takamiya's earnings presentation, Jun 5, 2020
Slide 1: Results Briefing Materials for the Fiscal Year Ended March 31, 2020
Results Briefing Materials for the Fiscal Year Ended March 31, 2020 Takamiya Co., Ltd. Notice: This document is an excerpt translation of the original Japanese Grand Front Osaka Tower-B Bldg. 27F, document and is only for reference purposes. 3-1, Ofuka-cho, Kita-ku, Osaka 530-0011, Japan In the even
Slide 2: Agenda
Agenda Topics Description of consolidated performance of the fiscal year ended March 31, 2020 Progress of "2018 Medium-term Management Plan Consolidated performance forecasts for the year ending March 31, 2021 / Prospects and strategies for the future 2020/06/05 Page 2
Slide 3: Company Overview of Takamiya Co., Ltd.
Company Overview of Takamiya Co., Ltd. Trade name Takamiya Co., Ltd. Incorporation June 21, 1969 Representative Representative director, Kazumasa Takamiya Capital 1,050,114,385 yen Number of employees Consolidated : 1,489; Non-consolidated : 776 (As of end-March, 2020) Registered head office Grand F
Slide 4: Topics
TOPICS Mar. 6, 2020 Notice of Changes in Directors and Enterprise Report by Analyst Officers Enterprise Report by Analyst Apr. 22, 2020 Notice of Changes in Directors and Officers 2020/06/05 Page 4
Slide 5: Summary of consolidated performance: Business overview
1. Summary of consolidated performance 1.1 Business overview During the first half, in addition to good sales results thanks to full-swing popularization of the Iq System, steady growth of shipment of equipment for construction work of Hokuriku Shinkansen (bullet train) having continued since the
Slide 6: Revised performance forecasts announced Oct. 28
1. Summary of consolidated performance 1.2 Oct. 28: Revised performance forecasts were announced Previous Change (y/y) the fiscal year Forecast Revised Forecast ended March 31, （Unit：million yen） Change Amount Sales ratio 2019 Results Net sales 44,700 45,590 3,407 +8.1% 42,182 Operating income 3,200
Slide 7: Full-year consolidated results
1. Summary of consolidated performance 1.3 Full-year consolidated results Every step income increased by double-digit and exceeded the previous highest level (FY Ended March 31, 2015) Consolidated Results （Unit：million yen） FY03/2020 Forecast FY03/2020 Results FY03/2019 Results % change (Revised) Sa
Slide 8: Factors of increase/decrease in net sales and operating income
1. Summary of consolidated performance 1.4 Factors of increase/decrease in net sales and operating income Net sales Increased by 3,883 million yen (+9.2% YoY): Both Rental business and Sales business contributed, whereas overseas large-scale projects passed a peak. Operating income Increased by
Slide 9: EBITDA (operating income + depreciation)
1. Summary of consolidated performance 1.5 EBITDA (operating income + depreciation) Main cause of increase by 1,016 million yen YoY is increase in operating income. Depreciation remained mostly level because investment in assets for rent passed its peak (as planned). +13.6% (y/y) (Unit : million
Slide 10: Performance by segment
1. Summary of consolidated performance 1.6 Performance by segment Rental/Sales segments both Segment profit achieved good performance as Net sales (sales ratio) double-digit increase in revenues, and Overseas segment maintained Unit : % change % change FY03/2019 FY03/2020 FY03/2019 FY03/2020 stead
Slide 11: Sales business: Factors of increase/decrease YoY
2. Sales business 2.1 Factors of increase/decrease YoY Net sales: +1,787 million yen (increased) The Iq System and its peripheral components (stainless-steel footplate) achieved good performance, greatly contributing to increase in revenues. Operating income: +264 million yen (increased) Effects
Slide 12: Sales business: Net sales by product field
2. Sales business 2.2 Net sales by product field Figures of the previous year were exceeded in every field. As for temporary equipment, components related to the Iq System exerted a pull leading to double-digit increase. 10,158 2,957 3,141 Mounting devices of solar panel, 8,626 Iq System, G-Walk, et
Slide 13: Prevalence of the Iq System
2. Sales business 2.3 Prevalence of the Iq System Sales of the Iq System increased by 31.3% (1,024 million yen) YoY, greatly contributing to increase in revenues. (Unit : million yen) Sales performance of Iq System Iq System : 6,480,000m2 4,294 [assets for rent] 2,250,000m2 Rapidly increase [cumulat
Slide 14: Prevalence of the Iq System vs next-generation scaffolding
2. Sales business 2.4 Prevalence of the Iq System Competitors also have shifted to the next-generation scaffolding, and its popularization Iq System became faster in the industry. 8,480,000m2 Ours：6,480,000m2 Others : 2,000,000m2 Prevalence of the Iq System [Assets of rent] + [Sales] Prevalence of N
Slide 15: Rental business: Factors of increase/decrease YoY
3. Rental business 3.1 Factors of increase/decrease YoY Net sales : +2,599 million yen (increased) Construction work to extend Hokuriku Shinkansen (bullet train) contributed to increased revenues from rental fees of the Company alone. Besides, construction-related sales, transport cost, etc. incre
Slide 16: Trend of average equipment utilization rates
3. Rental business 3.2 Trend of average equipment utilization rates * Trend of utilization rates looks like a mountain with its peak at the 3Q each year * Utilization rate = rented amount / overall holdings As per the trend typically seen every year, even though there has been some decline around ea
Slide 17: Rental business: Ratio of sales by area
3. Rental business 3.3 Ratio of Sales by Area Kanto block showed smooth progress; Sales relating to civil-engineering contributed in Chubu block; Tohoku block showed good performance; and other blocks maintained steady growth as well. FY03/2018 FY03/2019 FY03/2020 3.6% 4.0% 3.9% 12.5% 13.0% 13.5% To
Slide 18: Overseas business: Factors of increase/decrease YoY
4. Overseas business 4.1 Factors of increase/decrease YoY Net sales: △228 million Although large-scale photovoltaic station projects in Korea passed a peak and resulted in lower sales than the previous year, business in the Philippines and Vietnam maintained steady growth, which helped overall per
Slide 19: Sales ratio by segment
4. Overseas business 4.2 Sales Ratio by Segment Sales ratio of Overseas segment appeared to recover since the 3Q, but eventually failed to exceed the previous year's figure. Overseas Overseas Overseas business business business Sales Sales Sales 14.7% 16.9% 15.0% business business business 31.4% 30.
Slide 20: Change in Consolidated Balance Sheet
5. Change in Consolidated Balance Sheet Fund-raising carried out in the 2Q and increase in retained earnings have contributed to increase in shareholders' equity by 4,021 million yen and equity ratio of 30.5% (it was 26.0% at the end of the previous term). Investments and other assets Intangible ass
Slide 21: Cash flow statement
6. Cash flow statement Fund-raising carried out in the 2Q and increase in retained earnings have contributed to increase in shareholders' equity by 4,021 million yen and equity ratio of 30.5% (it was 26.0% at the end of the previous term). (Unit : million yen) FY03/2019 FY03/2020 [Cash flows from op
Slide 22: Status of shareholder return
7. Status of shareholder return Forecasted divided for the second half is revised from "7 yen" to "8 yen", so it is forecasted as "14 yen" for the full term, namely increase by 3 yen YoY (commemorative dividend of 2 yen + 1 yen that takes achievements into account). FY03/2017 FY03/2018 FY03/2019 FY0
Slide 23: 2018 Progress of Medium-term Management Plan
2018 Progress of Medium-term Management Plan ＜Medium-Term Management Plan Vision＞ “Create new value through transformation and aim to become a corporate group that drive qualitative development of the industry” 2020/06/05 Page 23
Slide 24: Progress of Medium-term Management Plan: Performance transition
8. Progress of Medium-term Management Plan 8.1 Performance transition Vision ( Unit : millon yen ) “Create new value through Net sales Operation income Operation income margin transformation and aim to become a 9.0% 8.7% 8.0% 8.0% corporate group that drive qualitative 6.6% 6.4% development of the i
Slide 25: Progress of priority measures
8. Progress of Medium-term Management Plan 8.2 Progress of priority measures Utilization rate of assets for rent significantly improved. Overseas investment in assets for rent was partly reconsidered. Other measures have made progress largely as planned. “2018 Mid-Term Management Plan” policy FY03/2
Slide 26: Investment policy: capital investment and depreciation
8. Progress of Medium-term Management Plan 8.3 Investment policy: Transition of capital investment and depreciation Initial plan）Investment Initial plan ）Depreciation FY03/2021 : 1.2 billion yen FY03/2021 : 4.7 billion yen 3 years' cumulative investment: 14.8 billion yen (Unit : million yen) (Unit :
Slide 27: Financial Policy
8. Progress of Medium-term Management Plan 8.4 Financial Policy [Target] 2018 Midium-term Management Plan Capital adequacy ratio : More than 30% ROE : More than 10% FY03/2018 FY03/2019 FY03/2020 ROA* :More than 5% Capital adequacy ratio 25.0% 26.0% 30.5% [Result] Target was exceeded in every
Slide 28: Forecast of consolidated financial results for FY03/2021
Forecast of consolidated financial results for FY03/2021 Prospects and strategies for the future 2020/06/05 Page 28
Slide 29: About disclosing forecast of financial results
9. Forecast of consolidated financial results for FY03/2021 9.1 About disclosing forecast of financial results Forecast of consolidated financial results for FY03/2021 will be disclosed promptly when it becomes possible to figure out. Forecast of consolidated financial results for the year ending Ma
Slide 30: Forecast: Shareholder return
9. Forecast of consolidated financial results for FY03/2021 9.2 Shareholder return Dividend would be the same FY03/2021 FY03/2018 FY03/2019 FY03/2020 (Forecast) level as the previous term. Dividend 11.0 yen 11.0 yen 14.0 yen 14.0 yen Concepts of shareholder return 1Q － － － － To improve corporate
Slide 31: Impacts of the new coronavirus
10. Prospects and strategies for the future 10.1 Impacts of the new coronavirus Prospects at the time of announcing the financial results Current situation and response Next generation scaffolding is going to prevail in full swing, and would achieve good Situation calmed down once after rush dem
Slide 32: Projects relating to our industry
10. Prospects and strategies for the future 10.2 Projects relating to our industry Rush demands Olympic/Paralympic Hokuriku- Integrated Expo in Linear Chuo Linear Chuo Shinkansen in before rise in Games in Tokyo Shinkansen (bullet Resort in Osaka Osaka/Kansai Shinkansen in operation between Nagoya a
Slide 33: Theme of the year ending March 31, 2021: Promotion of Maximum Optimization
10. Prospects and strategies for the future 10.3 Theme of the year ending March 31, 2021: Promotion of Maximum Optimization 2018 Mid-term Management Plan STEP.1: Investments Human resource STEP.1: Investments • Recruitment and investment in HR development • Replacement to equipment having broader ST
Slide 34: Sales business: measures and challenges
10. Prospects and strategies for the future 10.4 Sales business Measures/Challenges Service development with "something Strength Weakness extra" for differentiation and customers' • Having led the next-generation scaffolding market, • Room for improving productivity merit more customers than any o
Slide 35: Prevalence of the Iq System
10. Prospects and strategies for the future 10.5 Prevalence of the Iq System Prevalence of the Iq System (m2) has shown double-digit increase every year. Prevalence of the next-generation scaffolding substantially increased in one year recently. Prevalence of the Iq System Prevalence of the Nextgene
Slide 36: Agri-business
10. Prospects and strategies for the future 10.6 Agri-business JA Zennoh's "Yume-Farm SAGA" project (Saga city, Saga pref.): Construction work of a cultivation facility with environmental control was ordered and completed. Entire process from supplying house Areas where our houses are constructed
Slide 37: Rental business: measures and challenges
10. Prospects and strategies for the future 10.7 Rental business Measures/Challenges Construction plus provision of high-quality Strength Weakness services using highly safe and easy to set up • Iq System • Share in Kanto area, the largest market Customers' needs are promptly connected • Scaffol
Slide 38: Response to aged infrastructure
10. Prospects and strategies for the future 10.8 Response to aged infrastructure Panel-type hanging shelf scaffolding "Spider Panel"(see photo below) /System-type hanging shelf scaffolding "V-MAX" * Left and right figures are adapted and shown graphically based on materials published by MLIT. Other
Slide 39: Overseas business: measures and challenges
10. Prospects and strategies for the future 10.9 Overseas business Measures/Challenges Philippines: Proactive sales deployment Strength Weakness targeting at project concentrated areas • Adoption/deployment of domestic know- • Business management scheme how and business models • Different governan
Slide 40: ESG information: IR
11. ESG information 11.1 IR • Video streaming of Financial Results Briefing (4 ~ 7 days after the Briefing) • Disclosure of English versions of Summary of Financial Results, Results Briefing Materials, and Timely Disclosure Release (partly) (7 ~ 10 days after disclosing Japanese version/TDnet) • Iss
Slide 41: ESG information: Human resource development
11. ESG information 11.2 Human resource development Such information is publicized Promoting "Human centered capitalism" style management and measures to visitors on a large signage centered on human resources • Promoting in-house projects centered on mid-level/young employees • Incentive reward acc
Slide 42: Stock Price of TAKAMIYA (2445:Tokyo)
100,000 200,000 300,000 400,000 600,000 0 500,000 Jan.2009 May.2009 Sep.2009 Jan.2010 Average daily trading volume May.2010 Sep.2010 Jan.2011 May.2011 Sep.2011 Jan.2012 May.2012 Sep.2012 Jan.2013 May.2013 Sep.2013 Stock Price of TAKAMIYA (2445:Tokyo) Jan.2014 May.2014 Sep.2014 Jan.2015 May.2015 Sep.
Slide 43: Changes in number of shareholders and shareholder composition
Changes in number of shareholders and shareholder composition FY03/2017 FY03/2018 FY03/2019 FY03/2020 Shareholders at the end of the period 3,395名 3,058 名 2,923 名 4,092 名 Shareholder composition Government and local public entities 0.00 % 0.00 % 0.00 % 0.00 % Financial institutions 15.32 % 19.02 % 1
Slide 44: IR contact
IR contact HP Company name ： Takamiya Co., Ltd. Grand Front Osaka, Tower B, 27F, Address ： 3-1 Oofuka-cho, Kita-ku, Osaka, 530-0011, Japan For Investor HP ： https://www.takamiya.co/ For Investor ： https://www.takamiya.co/ir/ Japan Phone ： +81-(0)6-6375-3918 FAX ： +81-(0)6-6375-8827 CONTACT ： Takashi